BASIC INFORMATION

Full Country Name:The Republic of Albania


Country Profile:

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, Socialist Movement for Integration.
Government: Parliamentary Democracy
Head of State: President Alfred Moisiu
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)

GEOGRAPHY

lies on the eastern Adriatic coastline, bordered by to the north, / Kosovo to the north-east, to the east and 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.

HISTORY

Historical Background

came under Ottoman rule in the 15th century. This ended in 1912 during the first Balkan War when the greater part of was overrun by the Serbian and Greek armies during their successful campaign against the Turks. Later that year declared independence. Independence was recognised by the Great Powers including a year later. 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 , took control of the country. Despite his early alliance with , King Zog increasingly relied on for economic support, in return for which provided with industrial and agricultural raw materials.

In 1939, as war was brewing in Europe, Zog's relationship with soured and Mussolini ordered an invasion. was annexed, and spent the majority of the war under Italian and German control. However, as their grip on 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 allied itself closely with Tito's . When 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 . 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 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 , securing continued economic support for 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 , keeping international commitments to a minimum, and stressing the need for self-reliance and self-sufficiency.

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, 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 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 1500 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 , later returning to to resign.

Recent Progress

The new, young SP Prime Minister, Pandeli Majko, brought some political and economic stability to . 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 Sali Berisha following the 2005 parliamentary elections. During this time 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, strengthen the rule of law, and implement the key reforms set out in 's European Partnership. A major milestone was reached in June 2006 when signed a Stabilisation and Association Agreement with the European Union, bringing it one step closer to membership. is currently working to implement the agreement, which will come into force once ratified by all EU Member States.

POLITICS

Constitution

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 five-year term by a three-fifths majority of Members of Parliament. No president may serve more than two terms in office. The current incumbent is President Moisiu who has been in office since July 2002. 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).

Political Parties

Listed below are the main political parties in 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)

Since its inception in 1990, Sali Berisha's Democratic Party has been fiercely anti-communist. It won an overwhelming victory in the 1992 elections and remained in power until 1997, initiating democratic and economic reforms. Before the July 2005 elections, the DP did not enter into any formal coalition, but it signed pre-election agreements with parties such as the RP and the NDP in order to maximise the right-wing vote. The party won the election, gaining 56 seats. It formed a government coalition, which includes the RP, the NDP, the DCP, the LDUP and, surprisingly, former SP allies, the EAP and the HRUP. The coalition has 81 seats.

The DP is a party of the right. At the last elections, it campaigned on organised crime and corruption issues and its slogan was 'hope is rising'. Its policies, amongst others, include poverty reduction through job creation, increases in pensions and EU and NATO integration.

Opposition

�� Socialist Party (SP)

�� Social Movement for Integration (SMI)

�� Social Democratic Party (SDP)

�� Democratic Alliance Party (DAP)

�� Social Democracy Party (SDY)

The Socialist Party emerged in 1991 as the successor party to the communist Albanian Workers Party, initially sharing power with the DP but went into opposition between 1991 and 1997. Following the 1997 parliamentary elections, the SP returned to power and governed until 2005. The party has been divided between the old-guard factions of the former communists and the reformist social-democratic members who have little connection with the party's communist heritage. Some of this latter group split from the SP in 2004 and formed the Social Movement for Integration (SMI) under former Prime Minister Ilir Meta.

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

In October 1999 a power struggle in the Socialist Party led to Majko’s resignation as Prime Minister. Ilir Meta took over from Majko and went on to lead the party to victory in the 2001 parliamentary elections. Although the elections were peaceful, international observers noted a number of shortcomings. Opposition leader Berisha disputed the result and a Democratic Party boycott of Parliament lasted until 29 January 2002. On 24 July 2002 Alfred Moisiu became the new President, having been chosen as a consensus candidate and elected by Parliament. Shortly afterwards, Fatos Nano regained leadership of the SP and became Prime Minister once again.

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, promising to address 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.

ECONOMY

Basic Economic Facts

GDP: US$ 9.1bn (2006 est.)
GDP per head: US$ 2935 (2006 est.)
Annual growth: 5.0% (2006 est.)
Inflation: 2.4% (2006 est.)
Major industries: Cement, Oil, Chromium, nickel, copper, hydroelectric power
Major trading partners: , , , , ,
Exchange rate: 95.02 Lk/US$ (March 2007)

is one 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 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 major problem in . 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 '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.

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

's Relations with Neighbours

now has good relations with all her neighbours, having restored in October 2001 relations with Belgrade broken off during the Kosovo crisis.

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 by strongly condemning the actions of ethnic Albanian rebels, whilst emphasising the need for all communities in to enjoy equal rights.

In March/April 1999, around 480,000 Kosovar refugees entered during the Kosovo crisis. was a staunch supporter of NATO military action and around 9,000 troops were deployed in before crossing into Kosovo. supports the international community's policy towards Kosovo.

Relations with the International Community

has actively pursued closer relations with the EU. NATO and EU membership are the key elements of '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 and is now pending ratification by all EU Member States.

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. continues to contribute to international military operations and, in recent times, has contributed troops to operations in , and .

On 10 June 2007, 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).

We look forward to ’s future membership of the EU and NATO, once the required standards have been met.