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Country Profiles
Albania Albania Flag

Brief History    Geography & Demographics    Water & Sanitation    Economy
Trade & Industry    Business    Holidays    Travel    Links
________________________________________________________________________

Albania Map

Official Name: Republic of Albania
Capital: Tirana
Population: 3.5 million
Major language: Albanian
Major religion: Islam
Monetary unit: 1 lek = 100 qindars
International dialing code: +355
Main exports: Chromium and chrome products, processed foodstuffs

Brief History:

The name Albania is derived from an ancient Illyrian tribe, the Albanoi, forbears of the modern Albanians. The Albanian name for their country is Shqiperia.

Prior to the 20th century, Albania was subject to foreign domination except for a brief period (1443-78) of revolt from Ottoman rule. Albania declared its independence during the first Balkan War in 1912 and remained independent after the World War I largely through the intercession of U.S. President Woodrow Wilson at the Paris Peace Conference.

After World War II, Albania became a Stalinist state under Enver Hoxha, and remained staunchly isolationist until its transition to democracy after 1990.

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 high unemployment, a dilapidated infrastructure, widespread gangsterism, and disruptive political opponents. International observers judged local elections in 2000 to be acceptable and a step toward democratic development, but serious deficiencies remain to be corrected before the 2001 parliamentary elections.

Socialist Party chairman Nano replaced Pandeli Majko in July 2002 to become Albania's third prime minister in less than a year.

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Geography:

Location: Southeastern Europe, bordering the Adriatic Sea and Ionian Sea, between Greece and the Federal Republic of Yugoslavia
Area: Total: 28,748 sq km   Land: 27,398 sq km   Water: 1,350 sq km
Land Boundaries: Total: 720 km
Border countries: Greece 282 km, The Former Yugoslav Republic of Macedonia 151 km, Yugoslavia 287 km
Natural Resources: petroleum, natural gas, coal, chromium, copper, timber, nickel, hydropower
Environmental Issues: deforestation; soil erosion; water pollution from industrial and domestic effluents

Demographics:

Population   3,510,484 (July 2001 est.)
Age Structure   0-14 years: 29.53%
   15-64 years: 63.48%
   65 years and over: 6.99%
Population Growth Rate   0.88% (2001 est.)
Birth Rate   19.01 births/1,000 population (2001    est.)
Death Rate   6.5 deaths/1,000 population (2001 est.)
Net Migration Rate    -3.69 migrant(s)/1,000 population    (2001 est.)
Sex Ratio   at birth: 1.08 male(s)/female
   under 15 years: 1.07 male(s)/female    15-64 years: 0.93 male(s)/female
   65 years and over: 0.78 male(s)/female
   total population: 0.96 male(s)/female    (2001 est.)
Infant Mortality Rate   39.99 deaths/1,000 live births (2001    est.)
Life Expectancy at Birth   total population: 71.83 years
   male: 69.01 years    female: 74.87 years    (2001 est.)
Total Fertility Rate   2.32 children born/woman (2001 est.)
Literacy   definition: age 9 and over can read and    write
   total population: 93% (1997 est.)
   male: NA%   female: NA%

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Water and Sanitation:

% of population with access to
safe water
% of population with access to
adequate sanitation
Water - Total97Sanitation - Total91
Water - Urban99Sanitation - Urban99
Water - Rural95Sanitation - Rural85

Economy:

Albania is Europe's poorest country and continues to face severe difficulties adjusting to the new Europe after decades of Stalinist isolation. More recently, conditions have been worsened by regional political instability and the collapse of 'pyramid' investment schemes. Albania is blessed with appreciable natural resources: it is one of the world's largest producers of chromium, and boasts reserves of copper, nickel, pyrites and coal. There are also oil deposits, both on and offshore. The agricultural sector, which accounts for 40% of GDP and underwent some upheaval following de-collectivization, has now settled down with all but a few farming enterprises in the private sector. New components of the economy, such as tourism, which were mostly set up with foreign investment have suffered badly in the wake of the 1997 upheaval. A great deal of Albania's hard-won economic progress was destroyed during that period. Since then, the already substantial black economy, based on large-scale smuggling, has become an even greater influence over the national economy. Meanwhile, the legitimate economy is slowly being put back together. In July 2000, Albania was admitted to the World Trade Organization - as much a valuable symbol of international recognition as a potential boost to the economy.

GDP   purchasing power parity -    $10.5 billion (2000 est.)
GDP - Real Growth Rate   7.5% (2000 est.)
GDP - Per Capita   purchasing power parity -    $3,000 (2000 est.)
GDP - Composition by Sector   agriculture: 55%
   industry: 24%
   services: 21% (2000)
Inflation Rate (consumer prices)   1% (2000 est.)
Labor force   1.692 million (including    352,000 emigrant workers    and 261,000 domestically    unemployed) (1994 est.)
Labor force - by occupation   agriculture 50%, industry and    services 50%
Budget   revenues: $393 million
   expenditures: $676 million,    including capital expenditures    of $NA (1997 est.)
Industries   food processing, textiles and    clothing; lumber, oil, cement,    chemicals, mining, basic    metals, hydropower
Exports   $310 million (f.o.b., 2000 est.)
Exports commodities   textiles and footwear;    asphalt, metals and metallic    ores, crude oil;vegetables,    fruits, tobacco
Exports partners   Italy 67%, Greece 15%,    Germany 5%, Austria 2%, The    Former Yugoslav Republic of    Macedonia 2% (2000)
Imports   $1 billion (f.o.b., 2000 est.)
Imports commodities   machinery and equipment,    foodstuffs, textiles, chemicals
Imports partners   Italy 37%, Greece 28%,    Turkey 6%, Germany 6%,    Bulgaria 3% (2000)
Currency   lek (ALL)
Exchange Rates   leke per US dollar - 146.08    (December 2000), 143.71    (2000), 137.69 (1999), 150.63    (1998), 148.93 (1997), 104.50    (1996);
   note - leke is the plural of lek

Albania is completing the process of transition from a centralized planned economy to a free-market. The state's role in the economy is shrinking as this process continues. In 2000, the GOA sold the state-owned mobile phone company, AMC, to a Norwegian-Greek consortium for USD 86 million. In 2001, the GOA privatized its four remaining small and medium-sized enterprises, a brewery, distillery, dairy, and pharmaceutical company and sold a second GSM license for USD 38 million. The GOA plans to sell the Savings Bank of Albania and INSIG, the state-owned insurance company, in 2001-2002. Nearly all land in Albania is privately owned.

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Trade and Industry:

In 2000, Albania's imports exceeded USD one billion and the country ran a trade deficit of USD 814 million. Exports fell by seven percent. The IMF attributes the fall in exports to a decline in industrial production. The increase in imports was due to increased domestic demand for imported goods as well as large increases in electricity imports. Albania has a trade deficit with its three major trading partners: Italy, Greece and Germany. One of the largest positive contributors to its balance of payments is remittances from abroad which are estimated to have reached USD 517 million in 1998.

Albania's robust current growth is fueled primarily by the transportation, service and construction sectors. Albania's housing stock is old and in poor condition and the country has a sizeable housing deficit. A residential building boom is transforming the face of Tirana, Durres, Vlora and other large cities and offers opportunities for construction and related companies. The tourism sector also appears on the verge of significant growth with Albanians returning to seaside resorts in large numbers in summer 2000 for the first time since civil insurrection of 1997 - 1998. The agricultural sector is also expanding with increased fruit, vegetable and grain production.

In the late 1980s, Albania's construction enterprises, which concentrated mostly on adding to the country's housing stock and industrial capacity, built about 14,000 dwellings annually. Uncertainties about landownership and problems with supplies of building materials, financing, and wages halted the construction industry in the early 1990s. The government legalized private construction firms, and private companies and individuals began applying to the Ministry of Construction for building permits soon after questions concerning property ownership were resolved. Reports in the national press included complaints that many people were constructing homes and buildings on property they did not own or on land better suited to mechanized agriculture. The government proposed a draft law to govern zoning and construction standards.

Cement factories were located in Elbasan and Vlorë, and there was a production facility for prefabricated concrete structures in Tiranë. Brick kilns were located in Tiranë, Elbasan, Korçë, Lushnjë, Dibrë, and Fier.

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Current Business Situation:

Although the Albanian economy shows many signs of strength, several other issues remain to be addressed before Albania can fully realize macroeconomic stabilization. Albania will need to take greater advantage of its natural resources and its close proximity to west European markets in order to counter a growing trade deficit. Due to a decline in industrial production and a surge in electrical imports, Albania had a $814 million trade deficit in 2000.

Furthermore, Albania must become a more efficient energy producer and build an adequate energy infrastructure in order to both keep pace with demand and encourage business growth. Constant electrical shortages and outages plagued the 2000-01 winter in Albania, forcing many to rely on only 5 to 6 hours of electricity per day. Electrical shortages reappeared during the 2001-02 winter, producing similar hardships.

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Working times:

Office hours for state administration are usually from Monday to Friday, 8.00 a.m. to 3.00 p.m; Saturday, 8:00 to 1:00 p.m. and Sunday is holiday. Stores have more flexible hours and most are open on Saturdays and Sundays

National Holidays:

New Year's Day, January 1
2nd January, January 2
Republic Day, January 11
Eid-ul-Adha, February 23*
El am Hejir New Year, March 15*
May Day, May 1
Anniversaire du Prophète - Eid-Milad Nnabi, May 24*
Independence Day, November 28
Liberation Day, November 29
End of Ramadan, December 6

(* May be changed to the nearest day)
Where a holiday falls on Sunday, the following Monday is normally declared a public holiday.

Travel:

No serious consideration was given to developing a tourism industry until several years after Enver Hoxha's death. After 1989 the government viewed tourism as offering one of the country's best chances to earn hard currency relatively quickly. In 1989 and 1990, record numbers of tourists visited Albania, although the totals themselves were unimpressive. About 14,400 foreigners were permitted to enter the country in 1989 and about 30,000 in 1990. Most of these tourists, however, were single-day visitors on excursions from the Greek island of Corfu. Albanian officials expected the country's seacoast and mountains to draw significantly greater numbers of visitors. But potential tourist areas, with the possible exception of Tiranë, lacked even the most basic amenities. Tiranë itself lacked hotel capacity, and there were few foreign investors willing to risk funds on an Albanian venture. Furthermore, the country's seacoast and mountains were not sufficiently pristine to support predictions of a coming boom in tourism.

Communications:

Telephones - main lines in use   87,000 (1997)
Telephones - mobile cellular   3,100 (1999)
Televisions   405,000 (1997)
Internet country code   .al
Internet Service Providers (ISPs)   7 (2000)
Internet users   2,500 (2000)

Transportation:

Railways   total: 447 km
   standard gauge: 447 km 1.435-m    gauge (2001)
Highways   total: 18,000 km
   paved: 5,400 km
   unpaved: 12,600 km (1998 est.)
Waterways   43 km
   note: includes Albanian sections    of Lake Scutari, Lake Ohrid, and    Lake Prespa (1990)
Pipelines   crude oil 145 km;
   petroleum products 55 km;    natural gas 64 km (1991)

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Airline Services:

Albanian Airlines: www.flyalbanian.com

Swiss International Airlines: www.swiss.com

ADA Air: www.adaair.com

Alitalia: www.alitalia.it/eng/index.html

Austrian Airlines: www.aua.com

Malev: www.malev.hu

Olympic-Airways: www.olympic-airways.gr

Turkish Airlines: www.turkishairlines.com

The national carrier is Albanian Airlines (LV). Established in cooperation with Tyrolean Airways, the airline operates services to major European cities. Other airlines offering services to Tirana include Alitalia, Austrian Airlines, Lufthansa, Malev Hungarian Airlines, Olympic Airways, Swissair and Turkish Airlines.

Approximate flight time: From Tirana to London is 4 to 5 hours (including stopover times, the shortest being via Zurich, 45 minutes, and via Rome, 1 hour 30 minutes). Other connections are slow. Passengers may travel via a number of European cities including Zurich, Athens, Rome, Vienna, Istanbul, Sofia, Paris and Budapest.

International Airport: Tirana Rinas (TIA) is 29km (18 miles) from the capital. An Albanian Airlines shuttle runs to the city centre where its offices are based (travel time - 30 minutes). Taxis are also available to and from the airport. There is a small duty-free shop.

Dress Code:

Men wear trousers, wristwatches and close-fitting caps; women wear skirts, aprons, headscarves, and in some more traditional households, veils.

Trivia: Albania's Sworn Virgins

Urban businessmen wear suits and ties for business occasions. Urban women wear dresses and skirts with colorful blouses. As a foreign businesswoman, you should dress conservatively since Albania is largely Muslim and eastern Orthodox.

Useful Links:

Albania: A Country Study

Lonely Planet - Albania: Offers facts for the traveler, country culture, history and attractive places to be visited.

Alb-Info: Search engine for Albania businesses, travel, medical pages, science, and more.

Albanian: Land of the Eagles: Includes information on Albanian history, culture, and government.

Albania Today: Daily news and information resource from Albania for professionals, students, and teachers.

Albanian Ministry of Information: Provides information and news about the Government.

Atlapedia Online - Albania: Provides brief profiles of geography, economy, government, and society as well as a sketch of modern history.

CIA World Fact book: Albania: Covering geography, population, government, economy, and more.

Ministry of Foreign Affairs: Offers news from the international activities of the government and information about the ministry.

REENIC: Albania: From the Russian and East European Network Information Center.

U.S. Library of Congress Country Study: Albania: Includes facts-at-a-glance and sections on history, society, and government.

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