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Geography of Albania
Area: 28,748 sq. km. (slightly larger than Maryland).
Major cities: Capital--Tirana (600,000, 2005 est.). Others--Durres
(200,000, 2005 est.), Shkoder (81,000, 2005 est.), Vlore (72,000, 2005 est.).
Terrain: Situated in the southwestern region of the Balkan Peninsula, Albania is
predominantly mountainous but flat along its coastline with the Adriatic Sea.
Climate: Mild, temperate; cool, wet winters; dry, hot summers.
People of Albania
Population (2007 est.): 3,600,523.
Growth rate (2007 est.): 0.529%.
Ethnic groups (2004 est., Government of Albania): Albanian 98.6%, Greeks 1.17%,
others 0.23% (Vlachs, Roma, Serbs, Montenegrins, Macedonians, Egyptians, and
Bulgarians).
Religions: Muslim (Sunni and Bektashi) 70%, Albanian Orthodox 20%, and Roman
Catholic 10%.
Official language: Albanian.
Health (2007 est.): Life expectancy--males 74.95 years; females 80.53
years. Infant mortality rate--20.02 deaths per 1,000 live births.
Government of Albania
Type: Parliamentary democracy.
Constitution: Adopted by popular referendum November 28, 1998.
Independence: November 28, 1912 (from the Ottoman Empire).
Branches: Executive--President (chief of state), Prime Minister (head
of government), Council of Ministers (cabinet). Legislative--Unicameral
People's Assembly or Kuvendi Popullor--140 seats (100 members elected by direct
popular vote; 40 by proportional vote; all serve 4-year terms). Judicial--Constitutional
Court, High Court, multiple district and appeals courts.
Suffrage: Universal at age 18.
Main political parties: Democratic Party of Albania (PD); Albanian Socialist
Party (PS); Socialist Movement for Integration (LSI); Albanian Republican Party
(PR); Demo-Christian Party (PDK); Union for Human Rights Party (PBDNJ); New
Democracy Party (PDR); Social Democratic Party (PSD); Social Democracy Party (PDS).
Economy of Albania
Real GDP growth (2006): 5%.
Inflation rate (2005): 2.4%.
Unemployment rate (2006): 13.8%.
Natural resources: Oil, gas, coal, iron, copper and chrome ores.
GEOGRAPHY of Albania
Albania shares a border with Greece to the south/southeast, Macedonia to the
east, Serbia (including Kosovo) to the northeast, and Montenegro to the
northwest. Western Albania lies along the Adriatic and Ionian Sea coastlines.
Albania's primary seaport is Durres, which handles 90% of its maritime cargo.
PEOPLE AND HISTORY of Albania
Over 90% of Albania's people are ethnic Albanian, and Albanian is the
official language. Religions include Muslim (Sunni and Bektashi), Albanian
Orthodox, and Roman Catholic.
Scholars believe the Albanian people are descended from a non-Slavic, non-Turkic group of tribes known as Illyrians, who arrived in the Balkans around 2000 BC. After falling under Roman authority in 165 BC, Albania was controlled nearly continuously by a succession of foreign powers until the mid-20th century, with only brief periods of self-rule.
Following the split of the Roman Empire in 395, the Byzantine Empire
established control over present-day Albania. In the 11th century, Byzantine
Emperor Alexius I Comnenus made the first recorded reference to a distinct area
of land known as Albania and to its people.
The Ottoman Empire ruled Albania from 1385-1912. During this time, much of
the population converted to the Islamic faith, and Albanians also emigrated to
Italy, Greece, Egypt and Turkey. Although its control was briefly disrupted
during the 1443-78 revolt, led by Albania's national hero, Gjergj Kastrioti
Skenderbeu, the Ottomans eventually reasserted their dominance.
The League of Prizren (1878) promoted the idea of an Albanian nation-state
and established the modern Albanian alphabet, updating a language that survived
the hundreds of years of Ottoman rule despite being outlawed. By the early 20th
century, the weakened Ottoman Empire was no longer able to suppress Albanian
nationalism. Following the conclusion of the First Balkan War, Albanians issued
the Vlore Proclamation of November 28, 1912, declaring independence and the
Great Powers established Albania’s borders in 1913. Albania's territorial
integrity was confirmed at the Paris Peace Conference in 1919, after U.S.
President Woodrow Wilson dismissed a plan by the European powers to divide
Albania among its neighbors.
During the Second World War, Albania was occupied first by Italy (1939-43)
and then by Germany (1943-44). After the war, Communist Party leader Enver Hoxha,
through a combination of ruthlessness and strategic alliances, managed to
preserve Albania's territorial integrity during the next 40 years, but exacted a
terrible price from the population, which was subjected to purges, shortages,
repression of civil and political rights, a total ban on religious observance,
and increased isolation. Albania adhered to a strict Stalinist philosophy,
eventually withdrawing from the Warsaw Pact in 1968 and alienating its final
remaining ally, China, in 1978.
Following Hoxha's death in 1985 and the subsequent fall of Communism in 1991,
Albanian society struggled to overcome its historical isolation and
underdevelopment. During the initial transition period, the Albanian Government
sought closer ties with the West in order to improve economic conditions and
introduced basic democratic reforms, including a multi-party system.
In 1992, after the sweeping electoral victory of the Democratic Party, Sali
Berisha became the first democratically elected President of Albania. Berisha
began a more deliberate program of economic and democratic reform but progress
on these issues stalled in the mid-1990s, due to political gridlock. At the same
time, unscrupulous investment companies defrauded investors all over Albania
using pyramid schemes. In early 1997, several of these pyramid schemes
collapsed, leaving thousands of people bankrupt, disillusioned, and angry. Armed
revolts broke out across the country, leading to the near-total collapse of
government authority. During this time, Albania's already inadequate and
antiquated infrastructure suffered tremendous damage, as people looted public
works for building materials. Weapons depots all over the country were raided.
The anarchy of early 1997 alarmed the world and prompted intensive international
mediation.
A UN Multinational Protection Force restored order, and an interim national
reconciliation government oversaw the general elections of June 1997, which
returned the Socialists and their allies to power at the national level.
President Berisha resigned, and the Socialists elected Rexhep Meidani as
President of the Republic.
During the transitional period of 1997-2002, a series of short-lived
Socialist-led governments succeeded one another as Albania's fragile democratic
structures were strengthened. Additional political parties formed, media outlets
expanded, non-governmental organizations and business associations developed. In
1998, Albanians ratified a new constitution via popular referendum, guaranteeing
the rule of law and the protection of fundamental human rights and religious
freedom. Fatos Nano, Chairman of the Socialist Party, emerged as Prime Minister
in July 2002.
On July 24, 2002, Alfred Moisiu was sworn in as President of the Republic. A
nonpartisan figure, he was elected as a consensus candidate of the ruling and
opposition parties. The peaceful transfer of power from President Meidani to
President Moisiu was the result of an agreement between the parties to engage
each other within established parliamentary structures. This "truce" ushered in
a new period of political stability in Albania, making possible significant
progress in democratic and economic reforms, rule of law initiatives, and the
development of Albania's relations with its neighbors and the U.S.
The "truce" between party leaders began to fray in summer 2003 and progress
on economic and political reforms suffered noticeably due to political
infighting. The municipal elections of 2003 and national elections of 2005 were
an improvement over past years, adding to the consolidation of democracy despite
the continued presence of administrative errors and inaccuracies in voter lists.
In 2005, the Democratic Party and its allies returned to power, pledging to fight crime and corruption, decrease the size and scope of government, and promote economic growth. Their leader, Sali Berisha, was sworn in as Prime Minister on September 11, 2005.
Since the election, Prime Minister Berisha’s government has made the fight against corruption and organized crime its first priority and has begun administrative and legal reforms toward that end. This brought repeated clashes with the opposition, which condemned the government’s approach as unconstitutional and an attempt to undermine independent institutions. Both sides remain combative over a range of political and substantive issues.
Another politically contentious process was the pre-electoral period prior to
the 2007 local elections. Although the February 18, 2007 local elections were
generally peaceful and democratic, over-politicized debate during the preceding
months resulted in procedural and administrative problems during the conduct of
the elections. A major positive step forward was the performance of the police
force.
The fragility of the Albanian electoral system was tested again during the
parliamentary by-election in zone 26 (Shijak) on March 11, 2007. The left-wing
opposition parties withdrew their commissioners from the polling stations and
the counting center, in spite of prior concessions from the Central Elections
Commission (CEC) to the opposition’s demands. Opposition commissioners left and
took with them one of the seals that mark the ballots. By midday, the opposition
candidate also announced his withdrawal from the parliamentary race. However,
the right of citizens to vote prevailed and the process continued thanks to the
technical arrangements of the CEC. The only visible sign of violence was the
wounding of a Democratic Party commissioner, who was fired upon by a militant.
Both elections were an indication of lack of political will to cooperate and of the imminent need for a comprehensive electoral reform of the present Albanian electoral system.
ALBANIA'S GOVERNMENT AND POLITICAL CONDITIONS
The unicameral People's Assembly (Kuvendi Popullor) consists of 140 seats,
100 of which are determined by direct popular vote. The remaining seats are
distributed by proportional representation. All members serve 4-year terms. The
Speaker of Parliament (Jozefina Topalli) has two deputies, who along with eight
permanent parliamentary commissions assist in the process of legislating
Albanian affairs.
The President is the head of state and elected by a three-fifths majority
vote of all Assembly members. The President serves a term of 5 years with the
right to one re-election. Although the position is largely ceremonial, the
Constitution gives the President authority to appoint and dismiss some
high-ranking civil servants in the executive and judicial branches, and this
authority can have political implications. The President is also commander in
chief of the armed forces, and chairs the National Security Commission. The
current President's term expires on July 23, 2007.
The Prime Minister is appointed by the President and approved by a simple
majority of all members of the Assembly. The Prime Minister serves as the
Chairman of the Council of Ministers (cabinet), which consists of the Prime
Minister, Deputy Prime Minister, and other ministers. Members of the Council of
Ministers are nominated by the Prime Minister, decreed by the President, and
approved by a parliamentary vote.
Albania's civil law system is similar to that of other European countries. The court structure consists of a Constitutional Court, a Supreme Court, and multiple appeal and district courts. The Constitutional Court is comprised of nine members appointed by the Assembly for one 9-year term. The Constitutional Court interprets the Constitution, determines the constitutionality of laws, and resolves disagreements between local and federal authorities. The Supreme Court is the highest court of appeal and consists of 11 members appointed by the President with the consent of the Assembly for 9-year terms. The President chairs the High Council of Justice, which is responsible for appointing and dismissing other judges. The High Court of Justice is comprised of 15 members--the President of the Republic, the Chairman of the High Court, the Minister of Justice, three members elected by the Assembly, and nine judges of all levels elected by the National Judicial Conference.
The remaining courts are divided into three jurisdictions: criminal, civil, and military. There are no jury trials under the Albanian system of justice. A college of three judges, who are sometimes referred to as a "jury" by the Albanian press, render court verdicts.
ALBANIA'S Principal Government Officials
President--Alfred Moisiu
Prime Minister--Sali Berisha
Deputy Prime Minister--Gazmend Oketa
Minister of Foreign Affairs--Lulzim Basha
ECONOMY of Albania
Albania remains one of the poorest countries in Europe. According to the
Bank of Albania, per capita income was U.S. $2,883 in 2006. The official
unemployment rate is 13.8%, and 18.5% of the population lives below the poverty
line according to the World Bank’s 2005 Poverty Assessment. Almost 60% of all
workers are employed in the agricultural sector, although the construction and
service industries have been expanding recently, the latter boosted
significantly by ethnic Albanian tourists from throughout the Balkans. The GDP
is comprised of agriculture (approximately 24%), industry (approximately 13%),
service sector (approximately 39%), transport and communication (12%),
construction (11%), and remittances from Albanian workers abroad--mostly in
Greece and Italy (approximately 12.8%).
Albania was the last of the central and eastern European countries to embark
upon democratic and free market reforms. Further, Albania started from a
comparatively disadvantaged position, due to Hoxha's catastrophic economic
policies. Transition from a centrally planned economy to a market-orientated
system has been almost as difficult for Albania as the country's communist
period.
The democratically elected government that assumed office in April 1992
launched an ambitious economic reform program meant to halt economic
deterioration and put the country on the path toward a market economy. Key
elements included price and exchange system liberalization, fiscal
consolidation, monetary restraint, and a firm income policy. These were
complemented by a comprehensive package of structural reforms, including
privatization, enterprise and financial sector reform, and creation of the legal
framework for a market economy and private sector activity.
Results of Albania's efforts were initially encouraging. Led by the
agricultural sector, real GDP grew, and Albania's currency, the lek, stabilized.
The speed and vigor of private entrepreneurial response to Albania's opening and
liberalizing was better than expected. Beginning in 1995, however, progress
stalled. The collapse of the infamous pyramid schemes of the 1990s and the
instability that followed were a tremendous setback, from which Albania's
economy continues to recover.
In recent years the Albanian economy has improved, although infrastructure development and major reforms in areas such as tax collection, property laws, and for improving business climate in general are proceeding slowly. Between 2003-2006, Albania experienced an average 5.5% annual growth in GDP. Fiscal and monetary discipline has kept inflation relatively low, averaging roughly 2.5% per year between 2004-2006. Albania’s public debt reached 57.5% of GDP in 2006, and the growing trade deficit was estimated at 25% of GDP in 2006. Economic reform has also been hampered by Albania’s very large informal economy, which the International Monetary Fund (IMF) estimates equals 50% of GDP.
Albania's trade imbalance is severe. In 2006, Albanian trade was U.S. $3.1 billion in imports, and U.S. $790 million in exports. Albania has concluded Free Trade Agreements (FTAs) with Macedonia, Croatia, UNMIK (Kosovo), Bulgaria, Romania, Bosnia, and Moldova. In April 2006, these bilateral agreements were replaced by a multiregional agreement that is expected to enter into force in May 2007 and that is based on the Central European Free Trade Agreement (CEFTA) model. However, combined trade with all these countries constitutes a small percentage of Albania's trade, while trade with EU member states (mainly Greece and Italy) accounts for nearly 68%. U.S. two-way trade with Albania is very low. In 2006, U.S. exports to Albania totaled $46.6 million. U.S. imports, during the same time period, totaled $3.44 million, making the U.S. the 17th overall trade partner of Albania. However, there are some discrepancies between U.S. and Albanian figures regarding trade figures. U.S. Customs reports imports from Albania amounting to $24 million. Major U.S. investment to date has been limited to large-scale infrastructure contracts with the government; Lockheed Martin and Bechtel are the main ones. There is increasing interest on the part of U.S. companies for further investment opportunities. The Albanian Government signed a FTA with the EU as part of its Stabilization and Association Agreement negotiations. The interim agreement entered into force in December 2006, and it foresees a duty-free regime for almost 90% of agricultural and industrial products. On the fiscal side it will also significantly reduce revenue collection.
Albania is assiduously trying to attract foreign investment and promote domestic investment, but significant impediments exist. The Albanian Government faces the daunting but essential task of rationalizing and uniformly applying business laws, improving transparency in business procedures, restructuring the tax systems (including tax collection), reducing corruption in the bureaucracy, and resolving property ownership disputes.
Business growth is further hampered by Albania's inadequate energy and transportation infrastructure. The capital, Tirana, generally receives electricity most of the day, but constant power outages plague every other major city, small town, and rural village. Although recent steps have been taken to improve the transportation infrastructure, Albania has a limited railway system and just one domestic international airport, which has achieved very high standards after receiving substantial international investment. Because of the mountainous terrain, goods traveling overland must spend hours traversing the relatively sparse network of switchback roads, many of them of poor quality, to reach destinations that are relatively close.
MILITARY AFFAIRS of Albania
Since the fall of communism in Albania in 1991, the country has played a
constructive role in resolving several of the inter-ethnic conflicts in south
central Europe, promoting peaceful dispute resolution and discouraging ethnic
Albanian extremists. Albania sheltered many thousands of Kosovar refugees during
the 1999 conflict, and now provides logistical assistance for Kosovo Force (KFOR)
troops. Albania is part of the international Stabilization Force (SFOR) serving
in Bosnia, and Albanian peacekeepers are part of the International Security
Assistance Force in Afghanistan and the international stabilization force in
Iraq. Albania has been a steadfast supporter of U.S. policy in Iraq, and one of
only four nations to contribute troops to the combat phase of Operation Enduring
Freedom.
Albania continues to work with the international community to restructure its
armed forces and strengthen democratic structures pursuant to its NATO
Membership Action Plan. NATO members continue to encourage Albania to address
military reforms that will bring it closer to membership. Since 1999, Albania
has spent approximately $108 million annually on military expenditures, roughly
1.35% of its GDP. According to Government of Albania projections, military
expenditure will reach 1.85% of GDP in 2007. With bilateral and multilateral
assistance, the Ministry of Defense is transitioning to a smaller, voluntary,
professional military, and reducing the vast amounts of excess weaponry and
ammunition that litter the country and pose a significant public hazard and
proliferation risk. The Albanian Government and the international community are
working together on a project that will make Albania a mine-safe country by
2007. Most high- and medium-priority mine clearance has been completed in the
mined areas of northeast Albania, a legacy of the 1999 Kosovo crisis.
Albania and the U.S. enjoy a military partnership and are signatories to
treaties including the 2003 Prevention of Proliferation of Weapons of Mass
Destruction and the Promotion of Defense and Military Relations and the 2004
Supplementary Agreement to the Partnership for Peace Status of Forces Agreement,
which defines the status of American military troops in Albania and further
enables military cooperation. In May 2003, Albania, Croatia, Macedonia, and the
U.S. created the Adriatic
Charter, modeled on the Baltic Charter, as a mechanism for promoting
regional cooperation to advance each country's NATO candidacy. In spite of
strong EU objections, Albania also signed in May 2003 a bilateral agreement with
the United States on non-surrender of persons, based on Article 98 of the
statute of International Criminal Court.
In 2004 President Bush authorized the use of the Nunn-Lugar Cooperative Threat Reduction program funds for projects in Albania, marking the first time such funds are used outside the former Soviet Union. With this funding the United States is assisting the Government of Albania with the destruction of a stockpile of chemical agents left over from the communist regime. The project is scheduled for completion in spring 2007.
FOREIGN RELATIONS of Albania
Albania is currently pursuing a path of greater Euro-Atlantic integration.
Its primary long-term goals are to gain NATO and EU membership and to promote
closer bilateral ties with its neighbors and with the U.S. Albania is a member
of a number of international organizations, as well as multiple regional
organizations and initiatives, including the Organization for Security and
Cooperation in Europe (OSCE), the UN, the Stability Pact, the Adriatic Charter,
and the World Trade Organization (WTO). In June 2006, Albania and the EU signed
a Stabilization and Association Agreement, the first step to EU membership,
which will focus on implementing essential rule of law reforms and curbing
corruption and organized crime.
Albania maintains generally good relations with its neighbors. It re-established diplomatic relations with the Federal Republic of Yugoslavia following the ousting of Slobodan Milosevic in 2000, and maintains excellent relations with the Republic of Montenegro, which gained its independence after the dissolution of the Serbia and Montenegro union in 2006. Although the final status of Kosovo remains a key issue in Albanian-Serbian relations, both nations are committed to achieving a peaceful resolution. Albanian, Macedonian, and Italian law enforcement agencies are cooperating with increasing efficiency to crack down on the trafficking of arms, drugs, contraband, and human beings across their borders. Albania has also arrested and prosecuted several ethnic-Albanian extremists on charges of inciting interethnic hatred in Macedonia and Kosovo. Tensions occasionally arise with Greece over the treatment of the Greek minority in Albania or the Albanian community in Greece, but overall relations are good, and Greece maintains the public image of being a strong proponent of Albania's eventual integration into the EU and NATO.
U.S.-ALBANIAN RELATIONS
Albania enjoys friendly and cooperative bilateral relations with the U.S.
Pro-U.S. sentiment is widespread among the population. Even while the U.S.,
which had closed its mission to Albania in 1946, was being vilified by communist
propaganda during the Hoxha regime, ordinary Albanians remembered that Woodrow
Wilson had protected Albanian independence in 1919. Albanians credit the NATO
bombing of Serbia in 1999 with saving thousands of Kosovar-Albanian lives, and
they greatly appreciate the U.S. Government's commitment to resolving the status
of Kosovo.
In 2003, Albania and the U.S. signed and ratified a number of agreements,
including a treaty on the Prevention of Proliferation of Weapons of Mass
Destruction and the Promotion of Defense and Military Relations; the Adriatic
Charter; and an Agreement regarding the non-surrender of persons to the
International Criminal Court. The U.S. strongly supports Albania's EU and NATO
membership goals. Working towards NATO membership, the U.S. and Albania signed a
Supplementary Agreement to the Partnership for Peace Status of Forces Agreement,
an important step in strengthening bilateral cooperation and enhancing security,
peace, and stability in the region.
Since FY 1991, the U.S. has provided Albania with more than $550 million in assistance, not counting U.S. Department of Agriculture (USDA) food aid. The aid has served to facilitate Albania’s transition from the most isolated and repressive communist state in Europe to a modern democracy with a market-oriented economy, and to support long-term development. In 2006, the U.S. gave over $24 million to Albania under the Support for East European Democracy (SEED) Act program. Albania was among the first countries selected to participate in the Threshold Program under the Millennium Challenge Account, winning a grant of $13.8 million. In September 2006, Albania began implementation of the program, which targets two critical stumbling blocks to development--corruption and rule of law.
Despite daunting problems at home, Albania has wholeheartedly supported the
U.S. in the global war on terrorism by freezing terrorist assets, shutting down
non-governmental organizations (NGOs) with possible links to terrorist
financing, expelling extremists, and providing military and diplomatic support
for the U.S.-led actions in Afghanistan and Iraq. Albania has played a
moderating role in the region and has fully supported UN mediation efforts in
Kosovo.
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