ALBANIA: AN OVERVIEW

• Document Type: FOIA
• Keywords: EASTERN EUROPE
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0005657440
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: June 24, 2015
• Document Release Date: July 14, 2011
• Case Number: F-2011-01070
• Publication Date: July 7, 1994

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Albania is facing a difficult vansition to democracy and a mazket economy after nearly
five decades of rigid Stalinist rule following World War II.
-- Former President Alia, the hand-picked successor of former dictator Enver
Hoxha, grudgingly introduced limited political and economic reforms in
1990.
The Democratic Patty--under its charismatic leader, Sali Berisha--won
control of parliament in elections in March 1992 and subsequently elected
Prime Minister Meksi's cabinet is dominated by Democrats. Most members are relatively
young. Many have little practical experience in politics but were chosen because the have no
ties to the old Communist regime. After two year
The government is concentrating on economic reforms and privatization of businesses. It
is also focusing on depoliticizing the inefficient judicial system.
-- It has completed some 90 percent of the privatization of agricultural land and
has made significant progress in privatizing housing and small businesses.
Parliament passed legislation last fall that eases resvictions on foreign
investments and allows repatriation of profits.
-- The government's anti-corruption campaign has resulted in the arrests of
several ex-Communist leaders, former bank officials, and enterprise
managers on charges of embezzlement. Ex-Communist Premier and Socialist
Party Chairman Faros Nano was convicted of corruption in March, and
former Communist dictator Alia was convicted of misuse of power in June.
-- Efforts by the Democrats to purge corruption from their own ranks--as well
as personality conflicts--last fall led the Finance Minister to resign after being
 Economy Still Fragile
The government's reform program is beginning [o pay off. GDP increased more than 10
percent during 1993 after falling 35 percent over the previous two years, and inflation declined
sharply from 230 percent in 1992 to 31 percent last year.
-- Remittances from Albanians working abroad--as much as IS percent of the
labor force--are providing a safety net during the transition.
-- Last year the Democrats slashed social assistance payments and cut back the
state sector work force to ward off hyperinflation.
-- Local officials sold or leased most state stores and services to former
employe rce of agricultural land was turned over to private
owners.
The econom}~, nevertheless, remains highly vulnerable to outside forces.
The situation for most Albanians remains dismal, and living standards are
unlikely to approach West European levels for decades.
Albania is dependent on foreign aid and investment, as well as remittances
from abroad, due to inadequate domestic supplies and the virtual collapse of
domestic indu~ strv. vrhich has led to an estimated.20-percent unemployment
Foreign Policy
Most Albanians want integration into Europe after decades of isolation, and Tirana has
concentrated on joining European organizations such as the European Council and the NACC. At
the same time, anxieties over the country's economic situation and the potential for spillover from
the Yugoslav conflict have caused Tirana also to look to Turkey and other Islamic countries for
Tirana is concerned that ethnic tensions in Serbia's Kosovo province will result in
widespread Serbian violence against the 90-percent ethnic Albanian population. Albania has tried
to focus international attention on Kosovo's plight and has so far followed a careful and moderate
polic} on Kosovo. Tirana appears to be losing hope for a peaceful settlement, however, and
increasingl}? favors Albania's active involvement if hostilities break out in Kosovo.
-- Although there currently is little enthusiasm in Albania for unification with
Kosovo, mos[ Albanians probably would support military interven[ion to help
Albanian Kosovars against a violent Serb crackdown.
-- If Kosovo blows up, Albania is likely to allow Kosovar guerillas to use
Albanian territo asry a sanctuary and as a conduit for weapons provided by a
third country. ~~
Tirana is also concerned that violence in Kosovo would spill over into Macedonia. In the
event of major violence in Kosovo, 150,000 or more ethnic-Albanian refugees would be likely to
flee into Macedonia. Such an influx would raise ethnic tensions, strain Macedonia's stru lin
economy, and possibly spark an anti-Albanian reaction from Macedonian nationalists.
 Despite its desire to advance ethnic rights for Albattians in Macedonia, Tirana has tried to
maintain good relations with Skopje. Berisha has counseled ethnic Albanian leaders there to work
within the Macedonian government, which relies on the cooperation of the main ethnic Albanian
political party to sustain its coalition. Albanian leaders fear that instability in Macedonia would
feed ethnic tension in the region and threaten Tirana's own stability by drawing Albania into a
conflic[.
-- Fallout f*om an ethnic-Albanian paramilitary scandal in Macedot?a and a
split in the main ethnic Albanian political party there, however, strained
Albania's relations with Macedonia this winter. Skopje accused Tirana of
supplying arms to the paramilitary organization and accused Tirana of
fomenting the split in the ethnic-Albanian parry by supporting an activist
faction that favors a more confrontational a roach to force government
concessions on ethnic issues.
Albania's relations with Greece have deteriorated since a border incident on 10 April in
which two Albanian officers were killed. Greek allegations that Albania is mistreating its ethnic
Greek minority have increased since Tirana arrested six ethnic Greeks in connection with the
attack and charged them with Irredentist activities and ties to the Greek intelligence service.
Althoueh Tirana is now calling for a renewed dialogue with Athens, tensions over the treatment
of Albania's Greek minority are likely to persist.
-- Tirana has little capability to stem the flow of illegal refugees to Greece, and
its repeated denials of human rights abuses against its Greek minority suggest
it will make only minor adjustments--such as allowin increased Greek
language education--[o appease Athens' concerns.