Presentation for the Advisory Committee

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Program for the transition to the rule of law
and an inclusive market economy in
Albania Program Description for the Advisory
Committee January 2007
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Program Objectives

• Transition to the rule of law and an inclusive
  market economy
• Through the diagnosis, develop a picture of the
  hidden reality of the extralegal sector
• Improve the knowledge and information base for
  the stage of institutional reform
• Strengthen local capacities within Government,
  local experts and civil society organizations

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Program Scope

• Fields of research
• Legal (laws, juridical systems, legal practices)
• Extralegal (mechanisms used about property rights
  and business operation)
• Economic (quantification of dead capital, study
  of institutional bottlenecks and estimation of
  the effects of the reform)

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Real Estate Team Research topics
Regulation and economic use of both urban and
rural real estate
Conflict resolution framework
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Regulation and economic use of both urban and
rural real estate
Acquisition of property rights Adjudication,
inheritance, adverse possession
Formalization of property rights
Regulations on real estate property Zoning,
usage, sub-division
Compensation and restitution framework
Economic use of property rights Sales contract,
renting, mortgages
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Conflict resolution framework
Judicial procedures related conflicts over real
estate Adverse Possession, eviction, claims to
ownership rights by third parties
Judicial procedures related to business
conflicts Contract and debt enforcement,
mortgages foreclosure
Alternative Dispute Resolution mechanisms Arbitra
tion, conciliation
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Business Team Research topics
IDENTIFICATION, CIVIL STATUS AND LEGAL CAPACITY
BUSINESS ORGANIZATIONAL FORMS
LEGAL MEANS FOR ENTERPRISES TO OPERATE
IN EXPANDED MARKETS
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BUSINESS ORGANIZATIONAL FORMS
Legal forms of business organizations
Starting a business
Registration of businesses
Administrative legal obligations
Tax legal obligations
Labor and social security legal obligations
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LEGAL MEANS FOR ENTERPRISES TO OPERATE
IN EXPANDED MARKETS
Access to credit
Collateral over moveable property
Remittances popular savings and credits
Information Systems
Closing a business
Contracts with private parties and the state
Imports / Exports
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EXTRALEGAL TEAM Topics to be covered

• Extralegal property main practices for the
  definition, proof, protection, publication and
  transfer of property rights.
• Extralegal business main practices for doing
  business
• Inputs for economic team gather information
  about extralegal practices associated to asset
  valuation, income, expenses.

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EXTRALEGAL TEAM Research areas
Document mechanisms used by the citizens and
their organizations to grant property rights in
urban and rural areas.
Identify and document extralegal proofs of
property and their effectiveness level to obtain
ownership recognition.
Fungible property rights
Identify how extralegal rights are granted and
protected, their level of social validity, and
whether they are accepted within the legal system.
Document mechanisms used by the citizens and
their organizations to solve conflicts regarding
property rights in urban and rural areas.
Identify and document extralegal practices for
the economic use of property in urban and rural
areas.
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EXTRALEGAL TEAM Research areas
Document business partnership mechanisms used to
develop economic activities extralegally.
Identify practices to replace legal requisites
for the start up of business activities.
Business Organizational forms for an effective
division of labor
Identify practices to distinguish among
individual and business assets, as well as to
protect personal assets from business risks.
Identify practices to organize production and
divide labor, establish accounting systems, and
represent the company before third parties.
Identify extralegal practices to renew
authorizations and licenses granted by
administrative entities.
Identify extralegal practices to fulfill or evade
tax and labor obligations, as well as to deal
with discretionary nature and avoid inspections
and sanctions.
Identify mechanisms to cease business activities
and its relationship with creditors and the
public administration.
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EXTRALEGAL TEAM Research areas
Identify standards to contract with suppliers and
customers.
Identify extralegal practices used by extralegal
businesses to enforce their agreements and solve
controversies that rise from their commercial
relations.
Mechanisms to operate in expanded markets
Identify main sources of credit used by
extralegal entrepreneurs, as well as the
mandatory requisites and mechanisms used to
ensure fulfillment of credits granted.
Identify mechanisms used by extralegal firms to
submit financial and commercial information, as
well as the types of registration methods used.
Identify extralegal practices and agreements to
modify the business structure, integrate third
parties, and increase production within the
business.
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ECONOMIC TEAM - Research Overview
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Geographic Scope

• Initial field research
• Tirana Metropolitan Region
• Full-scale field research and generalized results
  on a national level. Preliminary segmentation
  includes the following areas
• Shkoder Lezhe
• Sarande Gjirokaster
• Korce Pogradec

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General Project Structure
P R I M E M I N I S T E R
Political Liason
Steering Committee (Gov. ILD) Advisory
Committee (Donors, locals, etc)
Executive Director
Reform Team near Prime-minister (6-10)
Part-time local expertise - NGOs, private
consultancies, university, NOSA (20-30 experts)
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Project Organization - Operational
Project Director M. Mayorga
Project Manager V. Endo
Project Coordinator N. Shani
Extralegal M. Zuñiga
Economic L. Triveño
Legal R.E. M. Reggiardo
Legal B. C. Fosca
Ani Plaku
Zamira Xhaferri
Odeta Hyseni
Rovena Cadri
Erjon Muharremaj
Indrit Faja
Klodiana Shahaj
Eco 3
Ervin Mete
LB 3
XL 2
XL 3
XL 4
Elona Xhaferri
Permanent Personnel to be contracted
Albanian Core Team
ILD Team