Background: In 1990 Albania ended 44 years of xenophobic communist rule and established a multiparty democracy. The transition has proven difficult as corrupt governments have tried to deal with severe unemployment the collapse of a fraudulent nationwide investment scheme widespread gangsterism and massive refugee influxes from neighboring Kosovo.
Legislative branch: unicameral People's Assembly or Kuvendi Popullor (155 seats; most members are elected by direct popular vote and some by proportional vote for four-year terms)
Judicial branch: Supreme Court chairman of the Supreme Court is elected by the People's Assembly for a four-year term
Political parties and leaders: Albanian Republican Party or PR [Fatmir MEHDIU]; Albanian Socialist Party or PS (formerly the Albania Workers Party) [Fatos NANO chairman]; Albanian United Right or DBSH (includes PBK Albanian Republican Party or PRS AND PDD) [Abaz ERMENJI]; Christian Democratic Party or PDK [Zef BUSHATI]; Democratic Alliance or PAD [Neritan CEKA]; Democratic Party or PD [Sali BERISHA]; Democratic Party of the Right or PDD [Petrit KALAKULA]; Liberal Union Party [Teodor LACO]; Movement of Legality Party or PLL [Ekrem SPAHIA]; National Front (Balli Kombetar) or PBK [Abaz ERMENJI]; Party of National Unity or PUK [Idajet BEQIRI]; Right National Front [Hysni SELFO]; Social Democratic Party or PSD [Skender GJINUSHI]; Unity for Human Rights Party or PBDNJ [Vasil MELO chairman]; note - Teodar LACO of the Liberal Union Party was leader of the Social Democratic Union of Albania or PBSD
International organization participation: BSEC CCC CE CEI EAPC EBRD ECE FAO IAEA IBRD ICAO ICRM IDA IDB IFAD IFC IFRCS ILO IMF IMO Intelsat (nonsignatory user) Interpol IOC IOM ISO ITU OIC OPCW OSCE PFP UN UNCTAD UNESCO UNIDO UNOMIG UPU WFTU WHO WIPO WMO WToO WTrO (applicant)
Economy overview: An extremely poor country by European standards Albania is making the difficult transition to a more open-market economy. The economy rebounded in 1993-95 after a severe depression accompanying the collapse of the previous centrally planned system in 1990 and 1991. However a weakening of government resolve to maintain stabilization policies in the election year of 1996 contributed to renewal of inflationary pressures spurred by the budget deficit which exceeded 12%. The collapse of financial pyramid schemes in early 1997 - which had attracted deposits from a substantial portion of Albania's population - triggered severe social unrest which led to more than 1500 deaths widespread destruction of property and an 8% drop in GDP. The new government installed in July 1997 has taken strong measures to restore public order and to revive economic activity and trade. The economy continues to be bolstered by remittances of some 20% of the labor force that works abroad mostly in Greece and Italy. These remittances supplement GDP and help offset the large foreign trade deficit. Most agricultural land was privatized in 1992 substantially improving peasant incomes. In 1998 Albania recovered the 8% drop in GDP of 1997 and pushed ahead by 7% in 1999. International aid has helped defray the high costs of receiving and returning refugees from the Kosovo conflict.
Disputes international: the Albanian Government supports protection of the rights of ethnic Albanians outside of its borders but has downplayed them to further its primary foreign policy goal of regional cooperation; Albanian majority in Kosovo seeks independence from Serbian Republic; Albanians in The Former Yugoslav Republic of Macedonia claim discrimination in education access to public-sector jobs and representation in government
Illicit drugs: increasingly active transshipment point for Southwest Asian opiates hashish and cannabis transiting the Balkan route and - to a far lesser extent - cocaine from South America destined for Western Europe; limited opium and cannabis production; ethnic Albanian narcotrafficking organizations active and rapidly expanding in Europe