Albania Country Profile

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Albania Country Profile
by The Bureau of European and Eurasian Affairs

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); 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.



name="history">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 President of the
Republic. Between 1997 and 2002, a series of short-lived governments succeeded one
another. Fatos Nano, Chairman of the Socialist Party, has been Prime Minister since July
2002.



During the transitional period of 1997-2002, 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.



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 Meidani to 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.



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 “truce”
between party leaders began fraying in summer 2003. Progress on economic and political
reforms suffered noticeably during the latter half of 2003 because of political
infighting. However, in December 2003, Prime Minister Nano reasserted his leadership of
the ruling Socialist Party and appointed a new Cabinet.



name="political">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 Servet Pellumbi) 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--Fatos Nano

Deputy Prime Minister—Namik Dokle

Minister of Foreign Affairs--Kastriot Islami



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. Between 1991 and
2003, the U.S. has provided $358.62 million through the Support for East European
Democracy (SEED) Act for Albania's humanitarian needs and economic and political
transformation. In 2004, the U.S. will give over $28 million to Albania under the SEED
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--vacant

Charge d’Affaires--Steven E. Zate

Political/Economic Section Chief--Todd D. Robinson

Political Officers--Lindsay Henderson, Rima Koyler, Nigchuan Zhu

Economic/Commercial Officer--David Schroeder

Consular Officer--Jennifer Noronha

USAID Director--Harry Birnholtz

Public Affairs Officer--Gregory Kay

Defense Attaché--Cmdr. Gregory Crabtree

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.





TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Consular Information
Sheets, Travel Warnings, and Public Announcements. Consular Information Sheets
exist for all countries and include information on entry requirements, currency
regulations, health conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country. Travel Warnings
are issued when the State Department recommends that Americans avoid travel to a certain
country. Public Announcements are issued as a means to disseminate information
quickly about terrorist threats and other relatively short-term conditions overseas that
pose significant risks to the security of American travelers. Free copies of this
information are available by calling the Bureau of Consular Affairs at 202-647-5225 or
via the fax-on-demand system: 202-647-3000. Consular Information Sheets and Travel
Warnings also are available on the Consular Affairs Internet home page: href="http://travel.state.gov/">http://travel.state.gov. Consular Affairs Tips for
Travelers publication series, which contain information on obtaining passports and
planning a safe trip abroad, are on the Internet and hard copies can be purchased from
the Superintendent of Documents, U.S. Government Printing Office, telephone:
202-512-1800; fax 202-512-2250.



Emergency information concerning Americans traveling
abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225.
For after-hours emergencies, Sundays and holidays, call 202-647-4000.



The National Passport Information Center (NPIC) is the
U.S. Department of State's single, centralized public contact center for U.S. passport
information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives
and operators for TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern
Time, excluding federal holidays.



Travelers can check the latest health information with the
U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at
877-FYI-TRIP (877-394-8747) and a web site at href="http://www.cdc.gov/travel/index.htm">http://www.cdc.gov/travel/index.htm give
the most recent health advisories, immunization recommendations or requirements, and
advice on food and drinking water safety for regions and countries. A booklet entitled
Health Information for International Travel (HHS publication number CDC-95-8280) is
available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202)
512-1800.



Information on travel conditions, visa requirements,
currency and customs regulations, legal holidays, and other items of interest to
travelers also may be obtained before your departure from a country's embassy and/or
consulates in the U.S. (for this country, see "Principal Government Officials" listing in
this publication).



U.S. citizens who are long-term visitors or traveling in
dangerous areas are encouraged to href="http://travel.state.gov/travel/tips/registration/registration_1186.html">register
their travel via the State Department’s travel registration web site at href="https://travelregistration.state.gov">https://travelregistration.state.gov or
at the Consular section of the U.S. embassy upon arrival in a country by filling out a
short form and sending in a copy of their passports. This may help family members contact
you in case of an emergency.






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