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Albania



Introduction

Albania gained independence in 1912 after over 300 years, from the former Ottoman Empire (centred in what is now Turkey). In 1944 it became a very strong Communist state, becoming virtually isolated from the rest of the world due to its stringent, hard-line policies. It turned to China, as it's main trading partner when it cut its diplomatic ties with the USSR regarding it as 'less than pure' in its Communism. However in the 1970s, it's relations with China became strained due to China's strong ties with the US. It then sought economic links with Europe, but remained isolated in its political and social ties until the early 1990s.

In 1990 Albania ended Communism by letting political parties be formed and reformed the judicial system. Citizens were allowed foreign travel. Many of the people opted to flee the country, most sailing illegally to Italy. Political unrest with many elections and strikes occurred. Its citizens accused successive governments of fraud and embezzlement. The government lost control of the state and southern Albania was controlled by local militias and armed citizens. International observers accepted the outcome of elections in 2001, but identified serious deficiencies that needed to be addressed through reforms in the Albanian electoral code.

The Balkan war, especially in Kosovo and Macedonia, created more problems as the influx of ethnic Albanian refugees flooded the country, putting a huge burden in an already weak economy.



Geographical Location

Albania is a mountainous country situated in southeastern Europe bordering Federal Republic of Yugoslavia, (with its republics of Montenegro and Serbia), the Former Yugoslav Republic of Macedonia, and Greece. The Adriatic Sea shores its western coast, (see map). Its land area is 28,748 sq.kms. (Compared to Ireland's 84,405 sq.kms.)

Climate

The climate is mild temperate: cool, cloudy, wet winters, with hot, clear and dry summers. The interior of the country is cool and damp.

Population

Estimated in July 2002, it has a population of 3,544,841 with a positive growth rate of 1.06% and a negative migration rate of -1.46/1000 population.

Economy

Long regarded as Europe's poorest country (with 30% of the population below the poverty line) Albania ended 44 years of Communist rule in 1990. The transition to an open-market economy was a difficult one. Poverty, high unemployment, corruption, gangsterism and poor infrastructure were the main problems. Its main trade is with Italy and Greece. In the mid-1990s there was an improvement with a decrease in inflation and an increase in growth rate.

Agriculture

Albania is very mountainous and agriculture is mainly restricted to the coastline. Traditionally, under Communism, it was the main employer in collective farming where prices were government controlled. With the transition, agriculture was severely damaged through neglect, lack of investment of equipment and drought. However, with the help of foreign aid, reforms are beginning to pay off with production on farms growing in the mid 1990s. The main crops are wheat, corn, vegetables, fruit, potatoes, sugar beet and tobacco.

Industry

Foreign investment in manufacturing was not attractive because of severe energy shortages.(On our visit this year electricty was on only 4-5 hours a day.) With the end of the communist era, manufacturing was poor and almost non-existent. Recently, with foreign aid and investment, trade has increased slowly. The main exports are textiles, footwear, asphalt, crude oil, metals and metallic ores mainly to Italy (2001 estimated valued at $306 million). It imports machinery and equipment, foodstuffs, textiles, and chemicals ($1.1 billion value, 2001 estimation). Albania is not yet attractive to tourists, but it has huge potential with its beautiful mountain ranges and unspoiled coastline.

Currency

Albania's monetary unit is the Lek, with $1 = 140.16 leke. [ €1 = 136.915 leke ]

Summary

Foreign investment in Albania is lacking and non-attractive, because of its poor infrastructure and need for investment in the energy supply. The communication system needs upgrading to international standards to attract investment form foreign companies and to trade with other countries. Land area for farming is small, and investment in updating agricultural practices and machinery are vital. This must be addressed to assist Albania in improving the present situation. Tourism has huge potential as it's coast and mountains are unspoiled.

Violence is a major problem and there is an increase in the trafficking of illicit drugs from southwest Asia to the western European market.

The war in the Balkans did not assist with the situation in Albania because the ethnic Albanian people fled back into the mother country. The structures to support or cope with the influx of refugees were non-existent and put further reliance on the already over-stretched economy.

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