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(Drejtoria Konsullore, Zyra e Legalizimeve, Ministria e Puneve te Jashtme)
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PROFILE
OFFICIAL NAME:
Republic of Albania

Geography
Area: 28,748 sq. km. (slightly larger than Maryland).
Major cities: Capital--Tirana (600,000, 2005 est.). Others--Durres (200,000, 2005 est.), Shkoder (81,000, 2005 est.), Vlore (72,000, 2005 est.).
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 (2007 est.): 3,600,523.
Growth rate (2007 est.): 0.529%.
Ethnic groups (2004 est., Government of Albania): Albanian 98.6%,
Greeks 1.17%, others 0.23% (Vlachs, Roma, Serbs, Montenegrins,
Macedonians, Balkan Egyptians, and Bulgarians).
Religions: Muslim (Sunni and Bektashi) 70%, Albanian Orthodox 20%, and Roman Catholic 10%.
Official language: Albanian.
Health (2007 est.): Life expectancy--males 74.95 years; females 80.53 years. Infant mortality rate--20.02 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, High Court, multiple district and appeals courts.
Suffrage: Universal at age 18.
Main political parties: Democratic Party of Albania (PD); Albanian
Socialist Party (PS); Socialist Movement for Integration (LSI);
Albanian Republican Party (PR); Demo-Christian Party (PDK); Union for
Human Rights Party (PBDNJ); New Democracy Party (PDR); Social
Democratic Party (PSD); Social Democracy Party (PDS).
Economy
Real GDP growth (2007): 6% (forecast)
Inflation rate (2007): 3% (average year-on-year annual)
Unemployment rate (Q2 2007): 13.5%.
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, Serbia (including Kosovo) to the northeast, and Montenegro
to the northwest. Western 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. 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 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 Skenderbeu, the Ottomans eventually
reasserted their dominance.
The League of Prizren (1878) promoted the idea of an Albanian
nation-state and established the modern Albanian alphabet, updating a
language that survived the hundreds of years of Ottoman rule despite
being outlawed. By the early 20th century, the weakened Ottoman Empire
was no longer able to suppress Albanian nationalism. Following the
conclusion of the First Balkan War, Albanians issued the Vlore
Proclamation of November 28, 1912, declaring independence and the Great
Powers established Albania's borders 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.
A UN Multinational Protection Force restored order, 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, 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 to fray in summer 2003 and
progress on economic and political reforms suffered noticeably due to
political infighting. The municipal elections of 2003 and national
elections of 2005 were an improvement over past years, adding to the
consolidation of democracy despite the continued presence of
administrative errors and inaccuracies in voter lists.
In 2005, the Democratic Party and its allies returned to power,
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.
Since the election, Prime Minister Berisha's government has made the
fight against corruption and organized crime its first priority and has
begun administrative and legal reforms toward that end. This brought
repeated clashes with the opposition, which condemned the government's
approach as unconstitutional and an attempt to undermine independent
institutions. Both sides remain combative over a range of political and
substantive issues.
Another politically contentious process was the pre-electoral period
prior to the 2007 local elections. Although the February 18, 2007 local
elections were generally peaceful and democratic, over-politicized
debate during the preceding months resulted in procedural and
administrative problems during the conduct of the elections. A major
positive step forward was the performance of the police force.
The fragility of the Albanian electoral system was tested again
during the parliamentary by-election in zone 26 (Shijak) on March 11,
2007. The left-wing opposition parties withdrew their commissioners
from the polling stations and the counting center, in spite of prior
concessions from the Central Elections Commission (CEC) to the
opposition's demands. Opposition commissioners left and took with them
one of the seals that mark the ballots. By midday, the opposition
candidate also announced his withdrawal from the parliamentary race.
However, the right of citizens to vote prevailed and the process
continued thanks to the technical arrangements of the CEC. The only
visible sign of violence was the wounding of a Democratic Party
commissioner, who was fired upon by a militant.
Both elections were an indication of lack of political will to
cooperate and of the imminent need for a comprehensive electoral reform
of the present Albanian electoral system.
On July 20, 2007 President Bamir Topi was elected within Parliament
after six members of the opposition coalition broke ranks to vote for
his candidacy. Out of 90 deputies present at the session, 85 voted for
Topi, while Neritan Ceka, head of the opposition Democratic Alliance
party, won five votes. Topi, 50, a former agriculture minister, now
succeeds President Alfred Moisiu for a five-year mandate.
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 (Jozefina
Topalli) has two deputies, who along with eight permanent parliamentary
commissions assist in the process of legislating 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 the right to one re-election. Although the position is
largely ceremonial, the Constitution gives the President authority to
appoint and dismiss some high-ranking civil servants in the executive
and judicial branches, and this authority can have political
implications. The President is also commander in chief of the armed
forces, and chairs the National Security Commission. The current
President's term expires on July 23, 2012.
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, decreed by the President, and approved by a
parliamentary vote.
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 Council 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--Bamir Topi
Prime Minister--Sali Berisha
Deputy Prime Minister--Gazmend Oketa
Minister of Foreign Affairs--Lulzim Basha
ECONOMY
Albania remains one of the poorest countries in Europe.
According to the Bank of Albania, per capita income was U.S. $3,150 in
2007. The official unemployment rate is 13.5%, and 18.5% of the
population lives below the poverty line according to the World Bank's
2005 Poverty Assessment. Almost 60% 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 throughout the Balkans. The GDP is
comprised of agriculture (approximately 24%), industry (approximately
13%), service sector (approximately 39%), transport and communication
(12%), construction (11%), and remittances from Albanian workers
abroad--mostly in Greece and Italy (approximately 12.8%).
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 been almost 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.
In recent years the Albanian economy has improved, although
infrastructure development and major reforms in areas such as tax
collection, property laws, and for improving the business climate in
general are proceeding slowly. Between 2003-2007, Albania experienced
an average 5.5% annual growth in GDP. Fiscal and monetary discipline
has kept inflation relatively low, averaging roughly 2.5% per year
between 2004-2006. In 2007, inflation increased to 3%, still within the
target range set by the Bank of Albania. Albania's public debt reached
54.1% of GDP in 2007, and the growing trade deficit was estimated at
22% of GDP in 2007. Economic reform has also been hampered by Albania's
very large informal economy, which the International Monetary Fund
(IMF) estimates equals 50% of GDP.
Albania's trade imbalance is severe. In 2007, Albanian trade had
U.S. $4.15 billion in imports, and U.S. $1 billion in exports. Albania
has concluded Free Trade Agreements (FTAs) with Macedonia, Croatia,
UNMIK (Kosovo), Bulgaria, Romania, Bosnia, and Moldova. In April 2006,
these bilateral agreements were replaced by a multiregional agreement
that entered into force in May 2007 and that is based on the Central
European Free Trade Agreement (CEFTA) model. However, combined trade
with all these countries constitutes a small percentage of Albania's
trade, while trade with EU member states (mainly Greece and Italy)
accounts for nearly 68%. U.S. two-way trade with Albania is very low.
In 2006, U.S. exports to Albania totaled $46.6 million. U.S. imports,
during the same time period, totaled $3.44 million, making the U.S. the
17th overall trade partner of Albania. However, there are some
discrepancies between U.S. and Albanian trade figures. Major U.S.
investment to date has been limited to large-scale infrastructure
contracts with the government; Lockheed Martin and Bechtel are
principal U.S. participants. The Albanian Government signed a FTA with
the EU as part of its Stabilization and Association Agreement
negotiations. The interim agreement entered into force in December
2006, and it foresees a duty-free regime for almost 90% of agricultural
and industrial products. On the fiscal side it will also significantly
reduce revenue collection.
Albania is trying to attract foreign investment and promote domestic
investment, but significant impediments exist. The Albanian Government
faces the daunting task of rationalizing and uniformly applying
business laws, improving transparency in business procedures,
restructuring the tax systems (including tax collection), reducing
corruption in the bureaucracy, and resolving property ownership
disputes.
Business growth is further hampered by Albania's inadequate energy
and transportation infrastructure. The capital, Tirana, and the main
port of Durres, generally receive 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
just one international airport. Because of the mountainous terrain and
poor road condition, overland goods transport is arduous and costly.
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 was 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 NATO Membership Action Plan. NATO members continue to
encourage Albania to address military reforms that will bring it closer
to membership. Since 1999, Albania has spent approximately $108 million
annually on military expenditures, roughly 1.35% of its GDP. According
to Government of Albania projections, military expenditure will reach
2% of GDP in 2008. With bilateral and multilateral 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 Albanian Government and the
international community are working together on a project that will
make Albania a mine-free country by 2010. Most high- and
medium-priority mine clearance has been completed in the mined areas of
northeast Albania, a legacy of the 1999 Kosovo crisis.
Albania and the U.S. enjoy a military partnership and are
signatories to treaties including the 2003 Prevention of Proliferation
of Weapons of Mass Destruction and the Promotion of Defense and
Military Relations and the 2004 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. 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. In spite of
strong EU objections, Albania also signed in May 2003 a bilateral
agreement with the United States on non-surrender of persons, based on
Article 98 of the statute of International Criminal Court.
In 2004 President Bush authorized the use of the Nunn-Lugar
Cooperative Threat Reduction program funds for projects in Albania,
marking the first time such funds are used outside the former Soviet
Union. With this funding the United States is assisting the Government
of Albania with the destruction of a stockpile of chemical agents left
over from the communist regime. Under this program, Albania became the
first nation in the world to complete destruction of declared chemical
weapons holdings under the Chemical Weapons Convention in July 2007.
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, as well as multiple regional organizations and
initiatives, including the Organization for Security and Cooperation in
Europe (OSCE), the UN, the Stability Pact, the Adriatic Charter, and
the World Trade Organization (WTO). In June 2006, Albania and the EU
signed a Stabilization and Association Agreement, the first step to EU
membership, which will focus on implementing essential rule of law
reforms and curbing corruption and organized crime.
Albania maintains generally good relations with its neighbors. It
re-established diplomatic relations with the Federal Republic of
Yugoslavia following the ousting of Slobodan Milosevic in 2000, and
maintains excellent relations with the Republic of Montenegro, which
gained its independence after the dissolution of the Serbia and
Montenegro union in 2006. 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
maintains the public image of being a strong proponent of Albania's
eventual integration into the EU and NATO.
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, and
they greatly appreciate the U.S. Government's commitment to resolving
the status of Kosovo.
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 Albania with more than $616
million in assistance, not counting U.S. Department of Agriculture
(USDA) food aid. The aid has served to facilitate Albania's 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 2007, the U.S. gave over $21.1 million to
Albania under the Support for East European Democracy (SEED) Act
program. Albania was among the first countries selected to participate
in the Threshold Program under the Millennium Challenge Account,
winning a grant of $13.8 million. In September 2006, Albania began
implementation of the program, which targets two critical stumbling
blocks to development--corruption and rule of law.
Despite daunting problems at home, Albania has wholeheartedly
supported the U.S. in the global war on terrorism by freezing terrorist
assets, shutting down non-governmental organizations (NGOs) with
possible links to terrorist financing, expelling extremists, and
providing military and diplomatic support for the U.S.-led actions in
Afghanistan and Iraq. Albania has played a moderating role in the
region and has fully supported UN mediation efforts in Kosovo.
Principal U.S. Embassy Officials
Ambassador--John L. Withers II
Deputy Chief of Mission--Stephen A. Cristina
Political/Economic Section Chief--Paula Thiede
Political Officers--Dena Brownlow, Victor Myev, Chris Olson
Economic/Commercial Officer--Robert Newsome
Consular Officer--Abigail Aronson
USAID Director--Edward Landau
Public Affairs Officer--Leigh Rieder, Acting
Defense Attaché--Cmdr. Brian Moore
Regional Security Officer--Patrick Leonard
Management Officer--C. Wakefield Martin
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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