Albania
GANG INFORMATION
PROFILE
OFFICIAL NAME:
Republic of Albania
Geography
Area: 28,748 sq. km. (slightly larger than Maryland).
Major cities: Capital--Tirana (700,000). Others--Durres (400,000),
Shkoder (81,000), Vlore (72,000).
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
Population (June 2002 Institute of Statistics est.): 3,129,000.
Growth rate (2001 est.): -0.88%.
Ethnic groups (2004 Foreign Ministry and Institute of Statistics
est.): Albanian 98.6%, Greeks 1.17% (Note: The 1989 census,
the last official census to record ethnic data, listed the
ethnic Greek population at 2%; estimates by the Greek community
itself place the number as high as 10%.), others 0.23% (Vlachs,
Roma, Serbs, Montenegrins, Macedonians, Egyptians, and Bulgarians).
Religions: Muslim (Sunni and Bektashi) 70%, Albanian Orthodox
20%, and Roman Catholic 10%. (Greek Orthodox percentages would
conform to the percentage of the ethnic Greek population.)
Official language: Albanian.
Health (2001 est.): Life expectancy--males 69.01 years; females
74.87 years. Infant mortality rate--39.99 deaths per 1,000
live births.
Government
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, Court
of Cassation, multiple district and appeals courts.
Suffrage: Universal at age 18.
Main political parties; Albanian Republican Party (PR); Albanian
Socialist Party (PS); Democratic Party of Albania (PD); New
Democrat Party (New DP); Socialist Movement for Integration
(LSI); Liberal Democratic Union Party (PBL); Movement of Legality
Party (PLL); Social Democratic Party (PSD); Unity for Human
Rights Party (PBDNJ).
Economy
Real GDP growth (2003): 7%.
Inflation rate (2003): 2.4%.
Unemployment rate (2003 est.): 15.8%.
Natural resources: Oil, gas, coal, iron, copper and chrome
ores.
GEOGRAPHY
Albania shares a border with Greece to the south/southeast,
Macedonia to the east, and Serbia and Montenegro (including
Kosovo) to the north and northeast. Eastern 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
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. Modern Albanians
still distinguish between Ghegs (northern tribes) and Tosks
(southern tribes). 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 its 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 Skenderbeg, the Ottomans eventually reasserted
their dominance.
In the early 20th century, the weakened Ottoman
Empire was no longer able to suppress Albanian nationalism.
The League of Prizren (1878) promoted the idea of an Albanian
nation-state and established the modern Albanian alphabet.
Following the conclusion of the First Balkan War, Albanians
issued the Vlore Proclamation of November 28, 1912, declaring
independence. Albania's borders were established by the Great
Powers 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.
Order was restored by a UN Multinational Protection
Force, 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, nominally
associated with the Democratic Party, 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 fraying in summer 2003. Progress on economic and political
reforms suffered noticeably since the latter half of 2003
because of political infighting. Nationwide municipal elections
were held in October 2003. Although a significant improvement
over past years, there were still widespread administrative
errors, including inaccuracies in the voter lists.
The July 3, 2005 general elections were considered
a step in the right direction in terms of Albania's consolidation
of democracy. The Democratic Party and its allies returned
to power in a decisive victory, 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.
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 (currently Jozefina Topalli) has two deputies,
along with 13 parliamentary commissions, to legislate 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 right to one re-election.
Although the position is largely ceremonial, the Constitution
does give the President authority to appoint and dismiss some
civil servants in the executive and judicial branches. 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 and
approved by the President.
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.
Principal Government Officials
President--Alfred Moisiu
Prime Minister--Sali Berisha
Deputy Prime Minister--Ilir Rusmajli
Minister of Foreign Affairs--Besnik Mustafaj
ECONOMY
Albania is one of the poorest countries in Europe. According
to the World Bank’s November 2003 Poverty Assessment,
average per capita income was U.S.$1,230 in 2002. The official
unemployment rate is 16%, and 30% of the population lives
below the poverty line. Two-thirds 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 other
parts of the Balkans. The GDP is comprised of agriculture
(approx. 34%), industry (approx. 13%), service sector (approx.
32%), and remittances from Albanian workers abroad--mostly
in Greece and Italy (approx. 21%).
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 almost been 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.
Within recent years, the Albanian economy has
improved, although infrastructure development and major reforms
in areas such as tax collection, property laws, and banking
are proceeding slowly. Between 1998-2002, Albania experienced
an average 6.2% annual growth in GNP. Fiscal and monetary
discipline have kept inflation relatively low, averaging roughly
4.2% per year between 2001-2003. Albania’s public debt
reached 67% of GDP in 2002, and the growing trade deficit
was estimated at 22% of GDP in 2002. Economic reform has also
been hampered by Albania’s very large informal economy,
which the IMF estimates equals 50% of GDP.
Albania's trade imbalance is severe. In 2002,
Albanian trade was U.S. $1.8 billion in imports, and U.S.
$350 million in exports. Albania has concluded Free Trade
Agreements (FTAs) with Macedonia, Croatia, UNMIK (Kosovo),
and Bulgaria. FTAs with Romania, Bosnia, and Moldova are at
various stages of approval. However, combined trade with all
these countries constitutes a small percentage of Albania's
trade, while trade with EU member states (notably Greece,
Italy, and Turkey) accounts for nearly 75%.) U.S. two-way
trade with Albania is very low. In 2003, U.S. exports to Albania
totaled $9.7 million making it the 183rd overall destination
for U.S. exports. U.S. imports, during the same time period,
totaled $4.3 million, making Albania the 177th overall source
of U.S. imports. Major U.S. investment to date has been limited
to large-scale infrastructure contracts with the government.
The Albanian Government is currently negotiating a FTA with
the EU, as part of its Stabilization and Association Agreement
negotiations, which, when it comes into force, could significantly
reduce revenue collected.
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 banking and tax systems (including tax collection),
reducing corruption in the bureaucracy, and resolving property
ownership disputes.
Business growth is further retarded 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 few domestic airports. 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
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 Membership Action Plan. At the
June 2004 Istanbul Summit, NATO encouraged Albania to continue
making progress towards membership. Since 1999, Albania has
spent approximately $108 million annually on military expenditures,
roughly 1.35% of its GDP. With bilateral and multi-lateral
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 government continues efforts to collect from civilians
the weapons that were seized during the chaos of 1997. The
Albanian government and the international community are also
working towards making Albania a mine-safe country by 2006.
The heavily mined areas of northeast Albania are a legacy
of the 1999 Kosovo crisis.
In May 2003, Albania and the U.S. signed a treaty
on the Prevention of Proliferation of Weapons of Mass Destruction
and the Promotion of Defense and Military Relations. 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. Also in March 2004, Albania and the U.S. signed
a 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.
FOREIGN RELATIONS
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, including the Organization
for Security and Cooperation in Europe (OSCE), the UN, the
Stability Pact, the Adriatic Charter, and the WTO. In February
2003, the EU opened negotiations with Albania on a Stabilization
and Association Agreement, with an initial focus on implementing
essential rule of law reforms and curbing corruption and organized
crime.
Albania maintains generally good relations with
its neighbors, and has or is seeking FTAs with all the Balkan
countries. It re-established diplomatic relations with the
Former Republic of Yugoslavia following the ousting of Slobodan
Milosevic in 2000. 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
is a strong proponent of Albania's eventual integration into
the EU and NATO. Albania recently upgraded the railway between
the Montenegrin capital, Podgorica, and Albania's northernmost
major city, Shkoder, to improve trade. Italy, Greece, and
Turkey are Albania's largest trade partners.
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.
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 more than $531 million in assistance--not
counting U.S. Department of Agriculture (USDA) food aid--to
Albania to facilitate its 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 2004, the U.S. gave over $28 million to Albania under the
Support for East European Democracy (SEED) Act program. On
September 30, 2004, Albania was selected to participate in
the FY 2004 Threshold Program under the Millennium Challenge
Account, which may help Albania implement programs targeted
toward two critical stumbling blocks to development--corruption
and rule of law.
Despite its daunting problems at home, Albania
has wholeheartedly supported the U.S. in the global war on
terrorism, by freezing terrorist assets, shutting down suspect
Islamic NGOs, expelling Islamic extremists, and providing
military and diplomatic support for the U.S.-led actions in
Afghanistan and Iraq. On October 20, 2004 President Bush authorized
for the first time the use of the Nunn-Lugar Cooperative Threat
Reduction program funds outside the former Soviet Union. Under
Nunn-Lugar the United States plans to assist the Government
of Albania with the destruction of a stockpile of chemical
agents left over from the communist regime.
Principal U.S. Embassy Officials
Ambassador--Marcie B. Ries
Deputy Chief of Mission--Steven E. Zate
Political/Economic Section Chief--Todd D. Robinson
Political Officers--Rima Koyler, Nigchuan Zhu, Bernadette
Roberts
Economic/Commercial Officer--David Schroeder
Consular Officer--Alma Gurski
USAID Director--Harry Birnholtz
Public Affairs Officer--Roxanne Cabral
Defense Attaché--Cmdr. Shaun Hollenbaugh
Regional Security Officer--S. Wade DeWitt
Management Officer--Richard Morgan
The U.S. Embassy is located at 103 Tirana Rruga
Elbasanit, Tirana; telephone: [355] (4) 247-285; facsimile:
[355] (4) 232-222.
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