Gazeteer of Albania

Background
Between 1990 and 1992 Albania ended 46 years of xenophobic Communist rule and established a multiparty democracy. The transition has proven difficult as successive governments have tried to deal with high unemployment, widespread corruption, a dilapidated infrastructure, powerful organized crime networks with links to high government officials, and disruptive political opponents. International observers judged parliamentary elections in 2001 to be acceptable and a step toward democratic development, but identified serious deficiencies. Some of these were addressed through reforms in the Albanian electoral code prior to the nationwide municipal elections in 2003. more

Economy
Poor and backward by European standards, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime and to spur economic activity and trade. The economy is bolstered by remittances from abroad of $400-$600 million annually, mostly from Greece and Italy; this helps offset the sizable trade deficit. Agriculture, which accounts for one-half of GDP, is held back because of frequent drought and the need to modernize equipment and consolidate small plots of land. Severe energy shortages and antiquated and inadequate infrastructure make it difficult to attract and sustain foreign investment. The government plans to boost energy imports to relieve the shortages and is moving slowly to improve the poor national road and rail network, a long-standing barrier to sustained economic growth.