THE INFORMALITY IN AGRICULTURE ALBANIA’S AND THE WAYS FOR ITS REDUCTION

Agriculture is an important part of the Albanian economy, due to the fact that it provides approximately 50% of GDP and nearly half of the country’s population lives the rural areas. The rural population develops its activity in about 368.997 agricultural economic units (farms), whose surface varies between 0,52 up to 1,13 hectares, where in most part due to their development level are survival economies. These types of economic activities were categorized by Schneider and Enste (2000) under the first level of informal businesses. After the change of the political system in Albania, farms have not been taxed neither for their economic activities nor the land owned by them. Though informality in this sector has a relative representation, given the fact the government itself has allowed bypassing of obligations, in order for inhabitants to fulfill their survival needs. The determination of the informality level represents a theoretic and practical importance for the country. Actually, about 320 farmers have paid their obligations and taxed amount.