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Shkodra free zone

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With a cheap and large labour force and high marginal<br />

productivity of product (low capital to labour - K/L - ratio), these<br />

economies exported their labour intensive products to Western<br />

mature economies making, in this way, huge profits due to the large<br />

disparities<br />

between unit costs and foreign prices of the products.<br />

These economies managed to improve their products quality<br />

standards by adopting<br />

and imitating rather than inventing new<br />

technological<br />

advances. More exports meant more profits, therefore,<br />

more income,<br />

which in turn led to higher savings and investments.<br />

Exporting into mature economies of the West provided the much<br />

needed hard currency for investing in capital accumulation,<br />

education, training, R&D.<br />

The knowledge I gained during my diplomatic mission in this<br />

region made me conclude<br />

that the port-city of <strong>Shkodra</strong> should aim at<br />

its fast economic development nearly detached from the general<br />

development plan of Albania (from which <strong>Shkodra</strong> benefits very<br />

little). Declaring my city a `commercial and industrial <strong>free</strong> <strong>zone</strong>' will<br />

create all the possibilities to attract investments, that employ the<br />

richness of the resources of <strong>Shkodra</strong> region, if we follow accurately<br />

the economic strategy that allowed the Southeast Asia region to<br />

experience such a high growth record and leave the rest of Asia far<br />

behind.<br />

84

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