Rethinking Poverty in Middle-Income Contexts: A Territorial Perspective
from Albania
Abstract
This article examines the persistence
and transformation of poverty in contexts classified as “middle-income,” using
Albania as an illustrative case. Drawing on longitudinal field observations
(since 2003), analytical reflections, and recent European policy frameworks, it
argues that poverty is often mischaracterised as an income-based issue, while
in practice it reflects deeper territorial and institutional inequalities. The
paper contributes to development policy debates by proposing a shift toward
community-led, place-based approaches that strengthen local capacity and
address multidimensional exclusion. These findings are relevant for
policymakers seeking more effective and territorially grounded strategies to
reduce poverty and inequality.
Keywords: Multidimensional poverty, Territorial inequality, Social
exclusion, Community-led development, Middle-income countries lbania,,Local
development
1. Introduction
Despite sustained economic growth in
many transition and developing economies, poverty remains a persistent
structural condition. Conventional development frameworks often rely on
aggregate macroeconomic indicators—such as GDP per capita or World Bank income
classification—which tend to obscure deep spatial and social inequalities.
Albania, officially classified as an
upper-middle-income country, provides a paradigmatic case in which
macroeconomic progress coexists with visible rural decline, territorial
fragmentation, and persistent social vulnerability.
This article is grounded in a
longitudinal observation process beginning in 2003 in the Berat region, where
field-level engagement revealed a substantial discrepancy between official
poverty statistics and lived territorial realities. These empirical
observations were later developed into analytical reflections in 2012,
questioning the paradox of deprivation within contexts of apparent economic
progress.
While grounded in the Albanian case,
the argument developed in this paper speaks more broadly to middle-income and
transition contexts where economic growth has not translated into territorially
balanced and socially inclusive development outcomes.
2. Conceptual Framework and Literature
Context
Poverty scholarship has progressively
shifted from unidimensional income-based definitions toward multidimensional
approaches. The Alkire-Foster methodology and the Multidimensional Poverty
Index (MPI) represent key advances in capturing overlapping deprivations in
health, education, and living standards.
Within the European context, the AROPE
indicator developed by Eurostat integrates income poverty, material
deprivation, and labour market exclusion into a composite measure of social
vulnerability.
However, despite methodological
advances, much of the literature continues to conceptualise poverty primarily
at the individual or household level. This paper argues that such approaches
insufficiently capture the territorial and systemic nature of exclusion,
particularly in contexts marked by uneven spatial development.
Recent European urban policy debates,
including those advanced by Eurocities, increasingly emphasise the role of
cities as both engines of growth and loci of concentrated deprivation.
3. Methodology
The study adopts a qualitative
longitudinal interpretative methodology combining:
- Field-based
observations (Berat region, Albania, 2003)
- Policy-oriented
analytical writing (2012)
- Secondary
statistical analysis (Eurostat, World Bank, FAO)
- Comparative
policy review (EU urban and social policy frameworks, 2020–2024)
This triangulated approach allows for
an integrated reading of poverty as both a lived territorial condition and a
policy-defined category.
This approach is particularly suitable
for capturing complex, context-dependent social phenomena that are not fully
observable through quantitative indicators alone.
4. Empirical Evidence: Albania
(2003–2012)
Field observations in the Berat region
in 2003 indicated significant discrepancies between official poverty estimates
and actual living conditions. Rural households exhibited higher levels of
deprivation than national statistics suggested, particularly in terms of income
stability, access to services, and livelihood resilience.
By 2012, these empirical insights had
evolved into a broader analytical critique of development narratives, emphasising
that poverty is not primarily a production constraint, but a distributional
and governance failure.
The key empirical findings include:
- structural
rural vulnerability and depopulation trends
- weak
alignment between statistical systems and territorial realities
- fragmented
and reactive social policy interventions
- limited
institutional capacity at local governance level
5. European Comparative Context (2024)
Recent Eurostat data indicate that approximately 21%
of the EU population is at risk of poverty or social exclusion (AROPE, 2024),
confirming that poverty remains structurally embedded even within highly
developed economies.
Contemporary European policy discourse
increasingly recognises:
- the
spatial concentration of poverty
- the
rise of urban-based deprivation (housing, energy, cost of living)
- the
multidimensional nature of social exclusion
These developments reinforce the
argument that poverty is not confined to income scarcity but is deeply embedded
in territorial and institutional structures.
6. Analytical Shift: From Income
Poverty to Territorial Exclusion
This analytical transition reflects not
only a conceptual evolution but also a shift in how policy frameworks interpret
and respond to poverty.
The comparative evidence suggests a
clear conceptual evolution:
· From income-based
deprivation
· Toward
multidimensional social exclusion
· And ultimately
toward territorially embedded structural inequality
This shift is summarised in Table 1
(Comparative Empirical Framework, 2003–2012–2024), which illustrates the
transformation of poverty across time and policy regimes.
Table 1. Evolution of Poverty Conceptualisation (2003–2012–2024)
|
Period
|
|
Key
Characteristics
|
Policy
Implications
|
|
|
Income-based
poverty
|
Focus
on income thresholds; underestimation of rural deprivation
|
Targeted
social assistance
|
|
2012
|
Multidimensional
poverty
|
Recognition
of overlapping deprivations (health, education, living conditions)
|
Integrated
social policies
|
|
2024
|
Territorial
exclusion
|
Spatial
inequality, institutional fragmentation, community marginalisation
|
Place-based,
community-led development
|
Poverty is thus increasingly understood
as a systemic outcome of uneven territorial development rather than an isolated
economic condition.
7. Policy Implications: Community-Led
Territorial Development
The findings support a shift
toward community-led territorial development (CLTD) as an
alternative policy framework.
This model is based on four
interrelated principles:
1.
Territorial embeddedness – recognising
spatial inequality as a core development dimension
2.
Community agency – repositioning local populations
as active development actors
3.
Integrated policy design – linking
social, economic, and environmental interventions
4.
Multi-level governance – strengthening
coordination between EU, national, and local levels
Such an approach aligns with emerging
European policy orientations toward place-based development and social
innovation.
8. Conclusion
This article demonstrates that poverty
in middle-income contexts cannot be adequately explained through income-based
frameworks alone. The Albanian case illustrates how macroeconomic progress may
coexist with persistent territorial and institutional exclusion.
The persistence and transformation of
poverty over time suggest the need for a paradigmatic shift in development
thinking—from redistribution-centred policies toward territorially grounded and
community-driven development systems.
Future policy frameworks must
prioritise spatial justice, institutional capacity, and local empowerment as
central pillars of sustainable development.
For policymakers, this implies the need
to move beyond narrowly targeted social assistance schemes and toward
integrated, place-based strategies that empower local communities as active
agents of development. Such approaches require not only financial resources but
also institutional innovation, multi-level governance coordination, and
sustained investment in local capacities.
References (APA Style)
Alkire, S., & Foster, J. (2011).
Counting and multidimensional poverty measurement. Journal of Public
Economics, 95(7–8), 476–487.
Eurostat. (2024). People at
risk of poverty or social exclusion (AROPE) statistics. European
Commission.
FAO. (2012). The State of Food
Insecurity in the World 2012. Food and Agriculture Organization of the
United Nations.
World Bank. (2024). World Development Indicators.
Hoxhaj, L. (2012). A mund të
bashkëjetojnë uria me bollëkun? Tirana Observer, 20 December 2012.
Hoxhaj, L. (2012). A mundemi ne
ta mposhtim urinë? Blog publication.
Eurocities. (2024). Urban
poverty and social inclusion in European cities. European Cities Network.
Author:
Luiza Hoxhaj
Center for European Policy Studies on
Regional and Local Development (Tirana, Albania)
