Countries

ALBANIA

A Brief History:

Noted for noted for an “ability to adopt, adapt, and even capitalize upon the requirements of conquering imperial powers, even when proclaiming fierce self-determination,” Albania and its people have the distinct ability to cope with sudden political and social change (1). Established by the Illyrian tribes, settled by the Greeks, occupied by the Roman Empire, and then conquered by the Ottoman Turks, Albania underwent numerous shifts in rule before falling to Enver Hoxha’s unique form of communism in 1945. Hoxha, born in Albania and educated in France, took power at the end of World War II and imposed an upcompromising Stalinist rule. Albania veered toward isolationism following brief alliances first with the Soviet Union, and then China (2). For over forty years, Albanian society was closed to the world and its presence on the European continent all but forgotten.

In 1991, two years after communism came crashing down throughout Eastern Europe, the isolationist regime in Albania was slowly dismantled under the watchful eyes of the international community. An interim government was established which gave way to the first democratically-elected Albanian government in 1992. Transition processes were set in motion and Albania quickly established itself as the “Balkan Tiger” through its quick, effective reformation (3). However, during this time, several large pyramid schemes posing as legitimate enterprises operated by the “first Albanian capitalists” collapsed, ending the nation’s early successes (4). Anywhere from US$1.5 to US$2 billion in citizens’ private investments evaporated over a four-month period, plunging the nation into violence and reversing the positive democratic trends that had been set in motion (5).

Today, Albania has regained stability and is at the door of the European Union, having submitted an application for candidacy in April 2009. The country still faces numerous obstacles to its development. Corruption is systemic and entrenched in the political sphere and despite anti-corruption efforts on the part of the government, little improvement has been realized (6). Many aspects of the transition process have stalled out, providing opportunities for political and social problems to occur. However, Albania maintains strong economic growth and stability, and has a citizenry very supportive of its continued progress toward a functioning democracy and the EU.
 

What is transition?

Transition refers to the processes of governmental decentralization and market liberalization that occur following the end of an autocratic, usually communist, regime. Central to the process is the creation of a free-market economy, usually achieved by liberalizing economic activity, creating macroeconomic stability, privatizing formerly state-owned enterprises, and creating a legal environment that protects private property and secures rule of law (7).
Privatization is the single most important aspect of transition as it unifies the concepts of enterprise ownership and control (8). Under communism, the government owned all enterprises, but expected private citizens to run them in an efficient manner. If one does not own the enterprise he must run and therefore share in the profits, there is no incentive to operate efficiently. Therefore, centrally-planned economies are highly inefficient, resulting in massive shortages of food, basic goods, and extreme poverty.
Privatization requires a legal framework and strong institutions that can protect private property. Many transition nations succeed in creating a free-market economy but fail to establish the supporting laws and institutions, which continue to stifle their development. As many as 45% of transition nations experience what is know as “backsliding,” or a political shift back towards autocracy because they are unable to fully complete privatization processes (9).
 

Why Albania?

Task Aid has chosen Albania as its first country in which to begin operations. Though stability has been regained since the 1997 crisis, Albania still suffers from underdevelopment, poor education and healthcare systems, and is nowhere near reclaiming its successes of the early transition period.
Complicating Albania’s development picture is de facto one-party rule and a level of corruption perceived to be the highest in Europe (10). Despite these facts, the Albanian people have displayed a tremendous resilience over the last decade in engaging with the transition process and there is a strong desire to improve the country. Educational funding, at 2.9% of gross domestic product (GDP), is very low (11), as are healthcare expenditures (2.5% of government spending) (12). Poverty remains high and economic opportunities are noticeably absent.
Task Aid is able to help where the Albanian government has thus far been unable to. By becoming directly involved in local schools, clinics, and social programs, Task Aid intends to ensure that Albania continues progressing toward being able to provide for its citizens and assume a leading role in Southeast Europe. 
 
-Ashley Boyle