THE GEOGRAPHY (Foreign Office UK)
Area: 27,748 sq km (10,822 sq mi)
Population: (est) 3.5m
Capital city: Tirana (pop: 400,000)
People: Albanian 95%, Greeks 3% and
others 2% (Vlachs, Roma, Egyptians,
Montenegrins, Macedonians and
Bulgarians (1989 est). Estimates of the
minority populations vary widely
between different interlocutors and
there is a general absence of reliable
statistics.
Languages: Albanian (Tosk is the
official dialect) Greek, others.
Religion: Sunni Muslim (70%), Albanian
Orthodox (20%), Roman Catholic (10%)
(est)
Currency: Lek
Major political parties: Socialist Party,
Democratic Party, New Democrat
Party, Social Democratic Party,
Republican Party
Government: Parliamentary Democracy
Head of State: President Alfred Moisiu
Prime Minister: Fatos Nano
Foreign Minister: Ilir Meta resigned in
July 2003. Replacement to be appointed
in autumn 2003.
Membership of international
organisations: South East Europe
Cooperation Process, Organisation for
Co-operation and Security in Europe
(OSCE), Council of Europe (COE),
World Trade Organisation (WTO)
GEOGRAPHY
Albania lies on the eastern Adriatic
coastline, bordered by Montenegro to
the north, Serbia/ Kosovo to the north
east, Macedonia to the east, and
Greece to the south and south-east.
THE HISTORY (Foreign Office UK)
Recent History
Albania was the last of the Eastern
European states to overthrow its
communist regime, having been almost
hermetically sealed from outside
influences for over forty years from
the 1940s until the death of Enver
Hoxha in 1985. Impetus for change
came from internal unrest and student
demonstrations over the pace of
reform. In 1990 the ban on religion was
lifted and opposition parties were
legalised.
In April 1991 the Communists won the
first multi-party elections but,
following a general strike by the newly
independent trade unions, resigned in
June 1991. The Communists were
replaced by a coalition Government of
National Stability, which in December
1991 collapsed when opposition
ministers withdrew support. It was
briefly replaced by an interim
technocratic government.
POLITICS
Recent Political Developments
In March 1992 the Democratic Party
(DP) led by Sali Berisha won the
parliamentary elections. Berisha
became President and was re-elected
in May 1996. The 1996 elections were
criticised by international observers
for violations of the electoral law and
for Government-instigated intimidation.
In January 1997, anti-government
demonstrations erupted in the south of
Albania following the collapse of a
number of pyramid financial schemes.
Riots spread across the country and
insurgents gained control of many
towns in the Southwest. Protesters
called for the resignation of President
Berisha and for the return of their
money. Over 13,000 refugees fled to
Italy during the crisis. The state
armouries were attacked and an
estimated 550,000 small arms looted:
some were smuggled out of the
country, but 120,000 had been collected
and destroyed by 2001.
The Parliamentary general election that
took place on 24 June 2001 was
followed by a further 3 rounds in July.
Though long and drawn out, these
elections were peaceful and produced
a decisive victory for the ruling
Socialist Party. On 21 August Ilir Meta
was nominated for another term as
Prime Minister. A report on the
elections by the Office of Democratic
Institutions and Human Rights (ODIHR)
of the Organisation for Security and
Cooperation in Europe (OSCE),
published in October, drew attention to
a number of flaws and instances of
manipulation in the elections, but
concluded that such shortcomings
were not sufficient to have affected
the overall result. Berisha has
continued to dispute the result, and a
further Democratic Party boycott of
Parliament lasted until 29 January.
On 24 July 2002 President Alfred
Moisiu, a consensus candidate, elected
by parliament, was sworn in. On 25
July Pandeli Majko resigned as Prime
Minister. A Presidential decree named
Fatos Nano as his successor.
Ilir Meta resigned as Deputy Prime
Minister and Foreign Minister on 18
July 2003. A replacement Foreign
Minister will be appointed after the
summer break.
THE ECONOMY (Foreign Office UK)
Basic Economic Facts
GDP: US$4.1bn (2001) (2000)
GDP per head: US$ 1170 (2001)
Annual growth: 4.5% (2002)
Inflation: 4.0% (2002)
Major industries: Cement, Oil,
Chromium, nickel, copper,
hydroelectric power
Major trading partners: Italy, Greece,
Germany, Bulgaria, Turkey, Macedonia
Exchange rate: 134.25 Lk/US$
(February 2003)
Further information about Albania’s
economy can be found at Trade
Partners UK Country Profile: Albania
Albania is one the poorest countries in
Europe, with GDP per head of only a
little over $1000. Since 1990, the
economy has struggled to recover
from the distortions of the communist
regime, the impact of the move to a
market economy and the 1997 crisis.
Energy is an increasing problem, with
chronic low water levels in the
reservoirs on which hydro-electric
production depends. The maintenance
of law and order remains a major
problem in Albania. There are high
levels of organised crime and
corruption.
After the financial crisis, a legal
framework for dealing with the
pyramid schemes was put in place and
the World Bank are helping to close the
remaining pyramid schemes.
Privatisation has been steady, with 55%
of the economy now in private hands.
Growth is driven by the agricultural
sector, which now accounts for 40% of
output. Export capacity is limited with
80% of agricultural production destined
for domestic use. Albania has a large
trade deficit and is heavily dependant
on foreign capital. It has limited foreign
currency reserves, most of which are
remittances from expatriate Albanians
working abroad.
Albania is rich in mineral resources,
with chrome, ferrochrome, iron, nickel
and copper present in considerable
quantities. There are also oil and gas
reserves. Mineral extraction offers
good prospects but requires sizeable
foreign investment.
INTERNATIONAL RELATIONS
Albania’s Relations with Neighbours
Albania now has good relations with all
her neighbours, having restored in
October 2001 relations with Belgrade
broken off during the Kosovo crisis.
The Albanian government took a
decisive stance in the crisis in
Macedonia by strongly condemning the
actions of ethnic Albanian rebels, whilst
emphasising the need for all
communities in Macedonia to enjoy
equal rights.
Relations with the International
Community
In March 1997, following the civil
unrest caused by the collapse of the
pyramid schemes, the international
community reacted to support efforts
to restore order and stability. The UN
authorised a deployment of an
Italian-led Multinational Protection
Force (6,000 strong) to help create a
secure environment for the provision
of international aid. The Organisation
for Security and Co-operation in
Europe (OSCE) set up a “presence”
in Tirana to co-ordinate the
international effort in Albania. The
European Community Monitor Mission,
now European Union Monitor Mission.
(EUMM), also set up a number of
monitoring teams. The Western
European Union (WEU) established a
Multinational Advisory Police Element
(MAPE) to help restore a viable police
force. MAPE was replaced by the
European Commission Police Assistance
Project in Albania (ECPAPA) which was
in turn replaced by the Police
Assistance Mission of the EC to Albania
(PAMECA) in January 2003. The UK
seconded a number of officers to
MAPE and ECPAPA and also provides a
bilateral programme of ‘scene of
crime' assistance.
Albania has actively pursued closer
relations with the EU. Albania has a
Trade and Cooperation Agreement
(TCA) with the EU. At the November
2000 Zagreb summit, participants
agreed that a high level steering group
should report on Albania’s candidate
status for a Stabilisation and
Association Agreement (SAA), the first
step towards EU membership. The
steering group recommended in June
2001, despite continuing concerns over
the judiciary, corruption and organised
crime, that a negotiating mandate
should be prepared for an SAA. The
mandate was completed and
negotiations were formally opened in
January 2003.
Albania is a member of NATO’s
Partnership for Peace and has formally
applied to join NATO. In June 1998, a
NATO cell was set up in Tirana to
co-ordinate Partnership for Peace
assistance. The UK also participates in
a NATO programme to assist the
reconstruction of the Albanian armed
forces. Albania has contributed to
international military operations in
Bosnia and Herzegovina and
Afghanistan.
Some 480,000 Kosovar refugees
entered Albania during the Kosovo
crisis in March/April 1999. Albania was
a staunch supporter of NATO military
action and some 9,000 troops were
deployed in Albania before crossing into
Kosovo. A residual NATO force, around
1,000 strong, has remained in Albania.
Although some elements in Albania
support the concept of a ‘Greater
Albania’, the present government
plays down such aspirations.
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