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A Journal of Foreign Policy Issues



Albanian Crisis

By Nikos Ziogas,
International Relations Analyst


Albania has entered a very difficult period which first found expression in the people's explosive reaction, forcing the Democratic Party's government into a deadlock, and subsequent resignation. The agreement on the formation of a new government, in which most of the major political forces of the country are participating, is partially responsible for abating the escalation of the crisis. The origins of the crisis, without underestimating the responsibilities of the political forces of the country, can to a great extent be located in the era of the Hoxha regime. Regarding future prospects of the country, the international community, which has already backed up Albania in her effort to avoid a civil war, appears prepared to continue its support. However, the real responsibility for an improvement of the economy and the polity is with the people and the political forces of the country. The latter must overcome "political differences", foster "collaboration" in all aspects, and therefore offer the Albanian people the promise of a better future.

The Development of the Crisis

The collapse of the "Pyramides" caused the Albanians to take to the streets in an effort to salvage whatever they could from their invested money and property. Accustomed to relying heavily upon incurred interest from the so-called "investment companies", they were suddenly thrown into a new situation, i.e. the loss, not only of incurred interest but also of their invested capital. Their deprivation is evident when consideration is given to the significant gap between the salaries earned by those individuals who do not comprise the "unemployment army" and the continuously increasing cost of living in the country.

When the Albanians realized that satisfactory compensations could not be expected their, reaction unsurprisingly escalated, into an open "revolt", with economic as well as political demands. Yesterday's ordinary citizens have initiated attacks on the state and have destroyed its property. As a consequence the central state authorities have lost control over a significant part, mainly in the southern areas, of the country. The looting of police stations, and later of army barracks resulted in the acquisition of arms by the insurgents.(1) While the threat of civil war was imminent, the political forces of the country, with the aid of the international community, reached an agreement for the formation of a new government in which most of the major parties participated. Furthemore, it was agreed that Parliamentary Elections will take place in June. These developments contributed to the abatement of the crisis, and though life in Albania has a long way to go before it is normalized, it seems that civil war has probably been avoided.

The Causes of the Crisis

The deep roots of the crisis Albania is now facing can be located in the past, with reference to political, economic, as well as social factors. The prolonged Hoxha dictatorship resulted, in Albania's exclusion from the political, social as well as economic developments which took place during the same period in other parts of Europe.

Subsequently, Albanian society was completely inexperienced with respect to the new economic system and the open market economy. In light of the serious structural problems which the Albanian economy was facing, the economic transformation was an ambitious target to satisfy. Moreover, the Albanian people were also inexperienced with respect to a multiparty political system and democratic institutions. This would to a great extent explain the loose party alignment and the extended realignment which in all likelihood will carry on as a visible part of the political life of the country. To this rule only very few exceptions have been noticed among certain political forces, owing to their strong affiliation with certain sections of the population to historical factors.

The above mentioned could also partially explain the stalemate of the political life of the country since the May 1996, Parliamentary Elections. The latter became a threshold in the political development of Albania.(2) Most of the opposition forces did not recognize that the election process, which marked an overwhelming victory for the Democratic Party, was conducted in a democratic manner(3), and most of them were subsequently devoted to an effort to establish the truth of their allegations regarding the lawlessness which characterized the Parliamentary Elections. However, their tactic, which included first the mobilization of their supporters in the organisation of protest rallies(4), second, their refusal to recognise the results of the elections, and third, their abstention from parliamentary activities, while high ranking opposition party officials were visiting foreign capitals in order to advance their views, was marked with limited success. The DPÕs government refused to confer with the opposition forces toward the resolution of the political impasse, and moved towards the scheduling of the Local Elections on October 20(5). The opposition parties faced a significant dilemma regarding their participation in the election process; their participation could be misinterpreted as their recognition of the May process, yet, their abstention could be ill-received and could thereby invite accusations placing the threat of political stalemate on their shoulders. Though they finally participated, the political stalemate remained unresolved. (6) It could, therefore, be argued that the dramatic developments that have been taking place in Albania since the beginning of 1997 reached the peak of a crisis which, in fact, began many months earlier.

The dramatic collapse of the "Pyramides", a development that did not erupt suddenly, had been anticipated by some international organizations. The International Monetary Fund, had officially made the then Albanian government aware of the facts, which indeed lead to the crisis, since the Fall of 1996. However, for political reasons, the government of the Democratic Party and its allies, evaded informing the Albanian people about the possible consequences of its "investment" activities on the one hand, and on the other, permitted the "companies" to carry on operating. Regarding the rest of the political forces of the country, they too share part of the responsibility because they were unable to make the ordinary citizen aware of the risks involved with respect to the "Pyramides".

Future Perspectives

The "Transition Period" has thus far proved to be a protracted proccess for Albania, the poorest country of Europe. That which must be swiftly settled is on the one hand the method by which Albanians can overcome the crisis and establish the foundation for a better future, and on the other, the contribution to be offered by the international community for the realization of these set objectives.

The Albanian citizens should not be permitted to loose confidence in the political parties and institutions, for this holds a certain danger for the future of their country. It is up to the political forces of Albania to prove that they can be trusted to deliver its people out of the crisis and the first challenge would be the organization of the coming Parliamentary Elections in a democratic manner.

However, the elections process could be jeopardised given the fact that most of the armed dissidents do not appear to have been thus far persuaded to abandon their arms. Give that a large number of people are in possession of arms, the majority of the population in certain areas, particularly in the Southern and some Central parts of the country, it is clear that the task of disarmament constitutes a formidable undertaking. Consequently, the foremost political responsibility is to convince the armed citizens that the difficulties of their country can only be successfully solved in a peaceful and cooperative way. To this end, the conduct of democratic and free elections will be a crucial factor in the country's political development given that they would provide the political forces of the country with a new impetus. The international community is ready and willing to help (OSCE), but the burden lies with the Albanian political forces.

Furthermore, regarding the economic development of the country, the structural problems of the Albanian economy(7) will in all likelihood continue to jeopardize many of the efforts undertaken by the Albanians. One should not, therefore, await the advent of any miracles, which is precisely what the Albanian people must realize. It is the government and generally the political forces of the country which are being called to carry the burden of persuading the Albanians that this is a reality which they can not escape.

The International Community's Role

The international community, in its effort to avoid the escalation of the crisis, which could lead to a civil war, and could also jeopardize the stability in the broader area, appears ready to contribute to the efforts being initiated by Albania for a better future. Humanitarian aid is already arriving in Albania and a multinational force, requested by its government following a consensus on behalf of all the political forces, will secure its distribution. The international community is also ready to contribute to the reconstruction of the Albanian economy via specific and immediate, as well as mid and long term financial aid.

To this end the contribution of neighboring countries, such as Greece, should be deemed vital. Given that Albania and Greece have aptly developed good neighborly relations(8) (Greece is especially devoted to this effort also given the existence of a sizable indigenous Greek minority in Albania(9)), the latter's role could be of increased significance. Regarding the recent crisis confronting Albania, Greece along with the rest of its partners in the European Union, has been actively providing assistance with respect to the political crisis and its containment, and latterly to the elaboration of short as well as mid and long term plans. In this sense concrete and expeditious steps, such as humanitarian aid and the treatment of the many wounded in hospitals, as well as aid for the reorganization of the Albanian army and police, were taken. Furthermore, Greece has urged its counterparts in the European Union for the need of an emergency economic aid plan, while on a bilateral base it has already offered a loan of approximately 80 million US $ to Albania.

Concluding Remarks

Fortunately, the likelihood of a civil war in Albania has been minimized. The Parliamentary elections, scheduled to take place in June will hopefully provide the political forces of the country with a new impetus which will in all likelihood contribute to the normalization of Albania's political life. Furtermore, the Democratization process should be expeditiously reinforced while the function of Democratic Institutions should become the core of future political developments. To this end the role of the international community should be significantly contributive.

The international community and especially the neighboring countries have a vested interest in helping Albania to respond to the repercussions of the political and socioeconomic crisis, otherwise the country in question could enter a long period of instability which in turn could have a negative effect on the broader Balkan peninsula. Consequently, the EU should actively assist Albania (as well as some of the other countries of the area) in its efforts towards political and economic stability and development.

1. According to the Albanian authorities the stolen arms amount to more than three hundred thousand.

2. Die Albanischen Parlamentswahlen vom 26. Mai 1996: Gebursstunde eines autoritaren Systems?, Michael Schmidt-neke, Sudost Europa, Heft 8, 1996, p. 567-588.

3. The election monitoring teams of the Organization for Security and Cooperation in Europe made references in their reports to many miscarriages and malfactions during the election campaign as well as the election process itself, which were retained in the organizationÕs final report. OSCE Report, Observation of parliamentary Elections Held in the Republic of Albania, May 26 and June 2, 1996, Organization for Security and Cooperation in Europe, OSCE June 12, 1996.
For the Parliamentary Elections of May, 1996, see also Resolution Regarding the Elections in Albania, European Parliament, June 20, 1996 and Statement of Concern: Violations in the Albanian Elections, Human Rights Watch/Helsinki, May 30, 1996.

4. During a protest rally organized in Tirana, on May 28th, the police had brutally beaten a number of protesters, amongst whom there were leaders of the opposition. See Election Fraud Sparks Protests, Fabian Schmidt, Transition, June 28, 1996, p. 38-39, 63.

5. For the climate prior to the Local Elections, see Party Politics Rule the Albanian Press, Fabian Schmidt, Transition, October 18, 1996, p. 35-37.

6. Three days before the conduct of the Local Elections, the ODHIR withdrew due to disagreements with the Albanian authorities regarding issues, such as, the number of the monitoring teams, etc.. See Press Release, Office for Democratic Institutions, OSCE, Warsaw, October 15, 1996.

7. Albania 1996, An Investment Guide, National Bank of Greece, Athens, 1997, (in Greek).

8. Albania and Greek-Albanian Relations, Ilias A. Antonopoulos, Okeanida, Athens, 1996 (in Greek); Greek-Albanian Relations, Special edition, Economic Courier, Athens, February 13, 1997, (in Greek).

9. For the Greek minority in Albania, see The Greeks in Albania, Th. Veremis, Th. Couloumbis, and I. Nikolakopoulos (eds.), Sideris and ELIAMEP, Athens, 1995, (in Greek) and The Greek Minority in Albania, A Documentary Record, (1921-93), Institute for Balkan Studies, Thessaloniki, 1994.