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Europe
Albania |
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Last reviewed: 16 March 2009 |
Country information
Population: 3.619.778 million (2008 est)
Capital city: Tirana (pop: 400,000)
People: Albanian 95%, Greeks 3% and others 2% (Vlachs, Roma (Gypsy), Serb, Macedonians, Bulgarian Balkans Egyptians, (1989 est). note: in 1989, other estimates of the Greek population ranged from 1% (official Albanian statistics) to 12% (from a Greek organization)
Languages: Albanian, Greek, Vlach, Romani, Slavic dialects.
Religion: Sunni Muslim (70%), Albanian Orthodox (20%), Roman Catholic (10%)
Currency: Lek
Major political parties: Socialist Party, Democratic Party, Social Democratic Party, Republican Party, Socialist Movement for Integration, Demo-Christian Party.
Government: Parliamentary Democracy
Head of State: Bamir Topi
Prime Minister: Dr Sali Berisha (Democratic Party)
Foreign Minister: Lulzim Basha
Membership of international organisations: United Nations, South East Europe Cooperation Process, Organisation for Co-operation and Security in Europe (OSCE), Council of Europe (COE), World Trade Organisation (WTO)
Economy
Basic economic facts
GDP: US$20.87 bn (2007 est)GDP per head: US$ 2935 (2006 est.)
Annual growth: 6.0% (2007 est.)
Inflation: 2.9% (2007 est.)
Major industries: Cement, Oil, Chromium, nickel, copper, hydroelectric power
Major trading partners: Italy, Greece, Germany, Bulgaria, Turkey, Macedonia
Exchange rate: 92.63 Lek ALL per US dollar (xe.com Jan 2009 est)
Albania is one of the poorest countries in Europe. 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 Pyramid Crisis. Growth is strong albeit from a very low base. Energy provision remains a serious problem as a result of under investment and low water levels in the reservoirs on which hydroelectric production depends. The maintenance of law and order remains a problem in Albania. There are high levels of organised crime and corruption.
Privatisation is ongoing, but has been completed in small and medium sized enterprises. Service, 58% (2006 est.), and agricultural sectors, 23%, drive growth. Only around 10% of Albania's GDP is generated by exports. Of those exports, around 85% go to the EU. Overseas remittances play an important role, contributing about US$800 million in revenue to the Albanian economy.
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.
History
Historical background
Albania came under Ottoman rule in the 15th century. This ended in 1912 during the first Balkan War, when the greater part of Albania was overrun by the Serbian and Greek armies during their successful campaign against the Turks. Later that year Albania declared independence. Independence was recognised by the Great Powers, including Great Britain, a year later. Albania retained its independence at the end of World War I and became a member of the League of Nations.In the mid-1920s Ahmed Zog, a chieftain from the Gheg people of northern Albania, took control of the country. Despite his early alliance with Yugoslavia, King Zog increasingly relied on Italy for economic support, in return for which Albania provided Italy with industrial and agricultural raw materials.
In 1939, as war was brewing in Europe, Zog's relationship with Italy soured and Mussolini ordered an invasion. Albania was annexed, and spent the majority of the war under Italian and German control. However, as their grip on Albania loosened towards the end of the war, increasing swathes of the country fell to Albanian partisans. With support from Tito's Yugoslav Communist Party, Enver Hoxha and his communist supporters entered the liberation struggle, defeated their rivals and gained effective control of the country.
Immediately after World War II Albania allied itself closely with Tito's Yugoslavia. When Yugoslavia fell out of favour with the Soviet Union in 1948, Hoxha turned to the Soviets for protection and help in purging pro-Yugoslav rivals, consolidating his grip on power and breaking ties with Yugoslavia. There followed a period of economic development and industrial production, made possible by considerable support from the Soviets. This era came to an end in 1961 as relations between Albania and the Soviet Union became strained following improved relations between the Khruschev regime and the Yugoslavs. Hoxha taking advantage of worsening Sino-Soviet relations succeeded in building an alliance with China, securing continued economic support for Albania which lasted until 1978 when Mao's death prompted a change in Chinese policies. From this point until his death in 1985, Hoxha pursued an isolationist policy for Albania, keeping international commitments to a minimum, and stressing the need for self-reliance and self-sufficiency.
Albania after Hoxha
After Hoxha's death his chosen successor, Ramiz Alia, gradually opened up the country both diplomatically and economically. Against the backdrop of the events in Eastern Europe in the late 1980s he was forced to increase the rate of reform and in 1990, following student demonstrations, the formation of alternative political parties was allowed for the first time. The Democratic Party (DP) was the first to emerge and was quickly followed by several other parties. Significant progress towards democratisation was made, leading to multi-party elections in March 1991. The Communists managed to hold on to power but a third of the parliamentary seats went to the DP. Demonstrations continued, and in June the Communists were forced to include the DP in a coalition government. The following March, new elections were held in which the DP, led by Dr Sali Berisha, won an overwhelming victory, signalling the final collapse of communism.In the years that followed, Albania enjoyed a period of economic growth in which democratic changes were introduced, civic institutions were created and laws on human and minority rights were passed. However, by the mid-90s the DP led by Sali Berisha started to adopt increasingly non-democratic and even authoritarian policies. In the 1996 parliamentary elections the DP won two thirds of the seats but, according to international observers, there were serious irregularities in the vote. The opposition boycotted parliament and took to the streets to demonstrate. These demonstrations were brutally broken up.
Pyramid schemes crisis
In January 1997, anti-government demonstrations and anarchy erupted in the south of Albania following the collapse of a number of pyramid financial schemes. By February, the government had lost control over large parts of the country: arms depots were looted, prisons were opened and over 1,500 people lost their lives. A government of national reconciliation was formed in March, led by Bashkim Fino, and an Italian-led UN peacekeeping force was deployed to restore order and to oversee security during the June 1997 parliamentary elections. These resulted in a resounding victory for the Socialist Party (SP) led by Fatos Nano, who became Prime Minister. There was still widespread social tension and the government found it extremely difficult to regain control of the country. Berisha organised continual street protests and his party boycotted parliament. The arrest of six DP members and the assassination of the legendary DP leader Azem Hajdari raised the stakes, the events culminating in violence in Tirana and an alleged attempt to overthrow the government by force. Nano fled to Macedonia, later returning to Albania to resign.
International relations
Albania relations with UK
The British Embassy in Tirana works with international and local partners to implement projects that facilitate Foreign and Commonwealth Office (FCO) objectives and strategic priorities. The following funds are available:
The Strategic Programme Fund (SPF) - previously known as Global Opportunities Fund (GOF) is the FCO's most important Programme Budget, and is divided into strands which reflect the UK's Department Strategic Objectives (DSOs). The purpose of SPF is to promote action on global issues in areas of strategic importance to the UK.
SPF "Reuniting Europe" – to extend the success of enlargement by supporting countries through the EU integration process, particularly in the fields of improved governance and economic growth. This is one of the SPF strands under which Albania qualifies for funding as a priority country.
SPF Drugs and Crime Programme – efforts to tackle drugs and organised crime are supported, where appropriate, by funds for bilateral and multilateral project work from the FCO’s SPF.
UK assistance in Albania
Funds for financial year 2008-09| DSO | Strategic Programme Fund (SPF) | Objective |
Value
|
| 1 | SPF Drugs and Crime Programme (DCP) SPF DCP for 2008 to 09 fund not yet available. |
Assist and support the Albanian authorities in tackling organised crime, particularly drugs and human trafficking. | £842,924 – for 2007 to 08 |
| 8 | SPF Re-uniting Europe (RE) Programme Four different projects |
Increase political transparency and good governance in Albania. Build capacity in Albanian public | £212,050 |
| 1, 3-6, 8 |
Bilateral Programme Budget (BPB) – devolved allocation |
Support the delivery of all Post Objectives. |
£65,000 |
| 1, 3-6, 8 |
Chevening Programme (Scholarships) Five Scholars in Academic year 2008-09 |
Promote the UK’s longer-term political, economic and commercial interests and support diplomacy and goodwill through offering study in the UK to potential leaders, decision makers etc. |
£75,000 plus £31,372 carried over from FY 07-08 |
| 1, 3-6, 8 |
Chevening Programme (Fellowships) Number not yet known |
Promote the UK’s longer-term political, economic and commercial interests and support diplomacy and goodwill .through offering study in the UK to potential leaders, decision makers etc |
NYK |
Relations with Neighbours
Albania has good relations with all her neighbours.In March/April 1999, around 480,000 Kosovar refugees entered Albania during the Kosovo crisis. Albania was a staunch supporter of NATO military action and around 9,000 troops were deployed in Albania before crossing into Kosovo. Albania supports the international community's policy towards Kosovo.
Albania has consistently supported the international community's position on the Balkans, including in Kosovo. The Albanian government took a decisive stance in the 2001 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 EU
Albania has actively pursued closer relations with the EU. NATO and EU membership are the key elements of Albania's foreign policy. 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 that, despite continuing concerns over the judiciary, corruption and organised crime, a negotiating mandate should be prepared for an SAA. The mandate was completed and negotiations were formally opened in January 2003. The SAA was signed on 12 June 2006.EU Assistance
PAMECA III - Police Assistance Mission of the European Community to Albania
PAMECA III will run from 2008-2011 and will build upon the work of previous EU funded policing projects, in order to meet the assessed needs of the Albanian State Police as the key beneficiary and will also generate improvements for secondary beneficiaries (Ministry of the Interior, Ministry of Justice, General Prosecutors Office etc).
Instrument for Pre-Accession Assistance (IPA)
The Instrument for Pre-Accession Assistance (IPA) is the Community's financial instrument for the pre-accession process for the period 2007-2013. Assistance is provided on the basis of the European Partnerships.
Its main aim is to support institution-building and the rule of law, human rights, including the fundamental freedoms, minority rights, gender equality and non-discrimination, both administrative and economic reforms, economic and social development, reconciliation and reconstruction, and regional and cross-border cooperation.
NATO
Albania is a member of NATO's Partnership for Peace and formally applied to join NATO in early 1992. In June 1998, a NATO cell was set up in Tirana to co-ordinate Partnership for Peace assistance. Albania continues to contribute to international military operations and, in recent times, has contributed troops to operations in Bosnia and Herzegovina, Afghanistan and Iraq.
On 10 June 2007, Albania welcomed George W Bush for a brief visit, the first ever by a serving US President. He met senior parliamentarians, President Moisiu and the Prime Minister, Sali Berisha. At a press conference afterwards, President Bush thanked Berisha for Albanian troops in Iraq and Afghanistan, said he looked forward to welcoming Albania into NATO some day, and urged government and opposition politicians to work together to meet the standards required for NATO membership. During his visit, President Bush was warmly received by public and politicians alike, receiving the "Order of the Nation's Flag" (the country's highest honour). In April 2008, Albania was invited to join NATO at the alliances summit in Bucharest, Foreign Minister, Lulzim Basha stated that "the invitation is a milestone for Albania and its relationship with NATO, and it is one of the most important events in our history."
Visits
Inward
- Ilir Meta, Leader of the Socialist Movement for Integration (SMI), met Caroline Flint, Minister for Europe on 12 of March 2009.
- Edi Rama, Leader of the Opposition party met Caroline Flint, Minister for Europe on 3 of November 2008.
- Prosecutor General, Ina Rama met the Head of Drugs and International Crime and other officials in the FCO on 22 October 2008.
- Albanian Foreign Minister Lulzim Basha met the Foreign Secretary on 12 February 2008.
- Dr Sali Berisha, Prime Minister of Albania visited the UK from 15-17 October 2007. He spoke at the Oxford Union and called on the Foreign Secretary, as well as the Secretary of State for Defence and the Speaker of the House of Commons.
- Albanian Foreign Minister Lulzim Basha met the Foreign Secretary on 12 February 2008.
- Foreign Minister Besnik Mustafaj visited the UK on 8 March 2006 and met with the Minister for Europe, Douglas Alexander; the Home Secretary and senior officials at the MOD, DfID and No 10.
- President Alfred Moisiu visited London and Oxford on 9-10 November 2005. He spoke at the Oxford Union on the subject of 'religious tolerance' and met with Foreign Office Minister Lord Triesman
- Vernon Coaker, Minister of Sate visited Tirana on 16-18 February 2009. He had meetings with top officials, including the President Bamir Topi to discuss UK’s support for Albania in its fight against organised crime.
- Sylvia Heal, Deputy Speaker of the House of Commons met members of the Parliament in September 2008.
- Sir Ken McDonald QC, Head of the CPS and Director of Public Prosecution (DPP) visits Albania and met Ina Rama, Prosecutor General and Prime Minister, Sali Bersiha in May 2008.
- British Group Inter-Parliamentary Union consisting of Madeline Moon, David Chaytor, John Grogan and Mark Pritchard, visited Albania in November 2007 and various MPs.
- FCO Minister of State Dr Kim Howells visited Tirana on 11 May 2006. He held meetings with the Prime Minister, the Interior Minister, the Justice Minister and Foreign Minister.
- The Home Secretary visited Tirana on 4 April 2006 and had meetings with the Prime Minister, the Interior Minister, the Justice Minister and the Foreign Minister.
- The Under-Secretary of State for Defence, Ivor Caplin visited Albania between 15 to16 March 2005. He visited the British War Memorial in Tirana National Park and had meetings with the Minister for Defence, the Chief of the General Staff and the Deputy Minister of Foreign Affairs.
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. Two thirds of the interior is mountainous, while the main population centres lie on the coastal plain stretching from Shkodra in the north to Vlora in the south. The plains enjoy a Mediterranean climate in contrast to continental climate of the Balkan interior.
Trade and investment
UK development assistance
Since 1991, the EU has provided the bulk of foreign aid to Albania. The UK contributed around £2.3 million in bilateral aid in 2006, mainly in technical assistance aimed at building government capacity for policy formulation and for the development of effective services. In addition, in 2006, the UK contributed around £6million through the EU's CARDS programme to Albania.
Details of the Department for International Development's (DfID) programme in Albania can be viewed on the DFID website.
Trade and investment with the UK
UK import and export figures for Albania (mainly specialised industrial machinery, medicinal and pharmaceutical products, power generating machinery and equipment) totalled £10.36m in 2006 (Jan-June). Business opportunities for foreign companies arise from the large untied inflow of funding from the International Financial Institutions such as the World Bank, IBRD, the UN Agencies and EBRD.
Politics
The new, SP Prime Minister, Pandeli Majko, brought some political and economic stability to Albania. Reforms continued throughout 1998: a constitutional referendum was held and a new constitution adopted; there was increasing respect for human rights; a law was passed on freedom of the press and there were moves towards de-centralisation. During the 1999 Kosovo crisis, Albania remained stable and played a positive role opening up its borders to take in half a million refugees. It was praised by the international community for its constructive role and its generosity during the conflict.Since 1999, there have been a number of changes of Prime Minister (see below), including the return to power of Dr Sali Berisha following the 2005 parliamentary elections. During this time Albania has pursued closer relations with the European Union. The overwhelming majority of the population wants EU membership and increased prosperity. The current government shares these goals and is trying to stimulate inward investment and economic development, strengthening the rule of law and implementing the key reforms set out in Albania's European Partnership. A major milestone was reached in June 2006 when Albania signed a Stabilisation and Association Agreement with the European Union, bringing it one step closer to membership. Albania is currently working to implement the agreement, which will come into force once ratified by all EU Member States.
Constitution
Albania is a parliamentary democracy. The Albanian Constitution was adopted by referendum on 22 November 1998 and came into effect shortly afterwards. The Constitution sets out the basis for an executive consisting of the President and Council of Ministers, a parliamentary assembly, and a judiciary including the Constitutional Court and High Court.
The President is elected for a 5-year term by a three-fifths majority of Members of Parliament. No president may serve more than 2 terms in office. The current incumbent is President Bamir Topi who took over from President Alfred Moisiu in July 2007. The President is the constitutional Head of State but, in practice, has limited powers.
The Council of Ministers performs the main executive functions of government and includes the Prime Minister, the Deputy Prime Minister and line ministers. The Prime Minister is appointed by the President but must be approved by Parliament, and is usually the leader of the largest party in the governing coalition. The current Prime Minister is Dr Sali Berisha, who came to power following the 2005 parliamentary elections.
The Parliamentary Assembly consists of 140 Members of Parliament, or 'deputies'. The Assembly is elected for a four-year term, by a mixture of first-past-the-post and party-list proportional representation. The current governing coalition is led by the Democratic Party (DP), and the Opposition is led by the Socialist Party (SP).
Albania passed constitutional changes in April 2008 to create a new electoral system. The previous arrangement elected 100 constituency based MPs on a simple majority system and 40 MPs nationally on a proportional open list system. Now, replicating the Spanish system, there will be a closed list proportional representation on a regional basis. This system has been agreed by the two main parties, Democratic Party and Socialist Party and will be used for the general elections in the summer of 2009.
Political parties
Listed below are the main political parties in Albania grouped by the coalition to which they currently belong - Government or Opposition.Government
- Democratic Party (DP) - ruling party
- Republican party (RP)
- New Democratic Party (NDP)
- Environmentalist Agrarian Party (EAP)
- Human Rights Union Party (HRUP)
- Christian Democratic Party (DCP)
- Liberal Democratic Union Party (LDUP).
Opposition:
- Socialist Party (SP)
- Social Movement for Integration (SMI)
- Social Democratic Party (SDP)
- Democratic Alliance Party (DAP)
- Social Democracy Party (SDY).
The splitting of the left-wing vote and allegations of corruption were some of the reasons that led to the SP losing power in the July 2005 elections. It won only 42 seats and is now in opposition.
The SP defines itself as a social democratic party. As in 2003, the SP fought the election on what it regarded as its successes in government. It is pro-EU and NATO and seeks to 'bring Albanians closer to Europe'. Its election campaign focused on five areas: education, health, the economy, social services and infrastructure.
Recent political developments
The most recent parliamentary elections were held on 3 July 2005. Despite failing to fully meet international standards, the elections were judged to represent an improvement over previous ones, and resulted in a victory for a coalition led by the Democratic Party. DP leader Sali Berisha became Prime Minister once again with a mandate to tackle the problems of corruption and organised crime.
The tone of political debate gradually deteriorated during 2006, with disagreement focussed on the preparations for the local government elections due in early 2007. There were boycotts of parliament and the opposition (led by the SP) threatened to boycott the elections. An eleventh-hour agreement was finally reached on 12 January 2007, but for several months attention was distracted from the business of reform, and events reflected badly on both the government and the opposition. Election Day itself passed relatively peacefully although some disputes and disturbances were reported during the counting process, delaying the finalisation of results. Across the country the governing coalition achieved a significant share of the vote, while the opposition coalition enjoyed strong results in most of the major towns. Socialist Party leader Edi Rama beat his DP challenger, Sokol Olldashi, to retain his seat as Mayor of Tirana.
On 20 July 2007, the Albanian Parliament elected Bamir Topi to be the fifth President of the Republic. Topi was the official candidate of the Democratic Party (DP) and a senior Member of Parliament. Following a tense process, which at times did not look certain to produce a result, Topi eventually secured 85 votes – just one more than the minimum needed for the three-fifths majority required. Having resigned from Parliament and the DP, as required by the Albanian Constitution, Topi was sworn in as President on 24 July taking over from the previous incumbent, President Alfred Moisiu.
Ammunition explosion at Gerdec
An explosion at a munitions storage facility occurred on Saturday 15 March 2008 in Gerdec, 18 km outside of Tirana. The explosion killed 26 people, some children and caused widespread damage to surrounding homes.
The President of Albania, Bamir Topi, called for a thorough investigation to be carried out as reports surfaced after the event that children were being employed to work at the facility and that old ammunition from the 1960’s was being cleaned, repackaged and sold on. Allegations surfaced that the Defence Minister at the time, Fatmir Mediu, was aware of the work that was being carried out there. The investigation is still ongoing, but Mediu resigned shortly after the explosion on 17 March 2008 as a result of the allegations against him. Gazmend Oketa, former Deputy Prime Minister, officially replaced Mediu, on 28 March 2008. The incident has caused immense press interest in the Albanian and American press.
