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USAID: Albania Country Profile
>> Europe and Eurasia >> Albania >> USAID: Albania Country Profile Geography/Population/Economy
- Area: 11,098 sq. miles (28,750 sq. km) -- about the size of Maryland
- Language: Albanian
- Currency: Lek
- Population: 3.2 million (2001)
- Population Growth Rate: 8.8% (2001)
- Life Expectancy: males - 69.01 years, females - 74.87 years
- Infant Mortality: 39.99 deaths per 1,000 live births
- Gross Domestic Product (GDP) Per Capita: $1,080 (2001, nominal USD)
- GDP: $3.8 billion (1999, nominal USD)
- Real Annual GDP Growth: 7.3% (1999)
- Annual Inflation: -3.1% (2001)
- Private Sector Share of GDP: 75% (1998)
- Foreign Direct Investment Per Capita: $12 (1999, nominal USD)
Government
- Capital: Tirana
- President: Rexhep Mejdani
- Prime Minister: Ilir Meta
- Ambassador to the U.S.: Petrit Bushati
Support for East European Democracy (SEED) Assistance to Albania
Albania began the transition from communism to democracy and a free-market economy in 1990, achieving significant progress from 1992-96. The country suffered serious setbacks. In 1997 the pyramid scheme collapses triggered nation-wide chaos. In 1998, a political assassination led to another government crisis accompanied by some public disorder. In early1999, nearly half a million Kosovar refugees entered the country and severely strained the country's resources for six months.
The U.S. has provided over $265 million in Support for East European Democracy (SEED) and Economic Support Funds (ESF) assistance to Albania since 1991. This figure includes more than $30 million targeted at the Kosovo refugee emergency: $18.3 million in supplemental SEED funds to rehabilitate communities affected by the crisis, and $12 million in ESF to relieve fiscal pressures on the Government of Albania (GOA). SEED funding for FY 2002 is $35 million and due to the 20% overall cut in the SEED budget funding will be $28 million in 2003.
USAID assistance to Albania involves democratic and economic transition programs typical of our work in Central and Eastern European countries, together with support for improved health care. Programs focus on key institutional constraints similar to USAID assistance in other parts of the world. This basic developmental approach is required to compensate for Albania's poor institutional development during the long period of communist rule. There is general distrust of government and institutions at all levels, as well as widespread lawlessness, corruption, and organized crime. In addition, the country's decaying physical infrastructure will need rehabilitation if it is to support sustainable economic growth. In addition, investments in basic education and health care are required. USAID's program is invested in improving the rule of law and strengthening civil society.
The GOA has reversed the negative economic trends triggered by the crises of 1997-98. Real GDP growth for 1999 was 7.3%, with 2000 and 2001 being 7.8% and 7.3% respectively. Adherence to IMF structural adjustment program has shown positive results. For example, the fiscal deficit for 1998 was 10.4% of GDP, compared to 12.4% in 1997. For 2000, it is projected at 9.4%. Inflation, which declined dramatically from 20.9% in 1998, to -1.06% for 1999 was 3.1% in 2001.
More than 50% of Albania's economy is agriculturally based. USAID has made reform in this sector a focal point of its Albania strategy. SEED funds have helped build a nationwide network of private distributors to deliver key agricultural inputs, such as fertilizer and seed, increasing crop yields and establishing links with the other sectors of the economy. SEED assistance also targeted small enterprises, agro-business associations, and dairy and agro-processing sectors. It has also supported the decentralization of forest management and provided vocational and entrepreneurial training to more than 26,000 people. With USAID assistance, Albania has created a national real property registration system that will improve the market for land and encourage more productive agriculture. Improved regulatory mechanisms, better urban and rural infrastructure, and a more vigorous financial sector will be vital to developing a private agribusiness sector that supports production agriculture.
While Albania has taken steps toward a democratic, pluralistic system, there remains work to be done. Voting irregularities in the 1996 parliamentary elections and executive interference in the judiciary demonstrated the frailty of democratic processes and institutions. Although new parliamentary elections in 1997 began a process of political reconciliation, those elections were judged only "adequate and acceptable under the circumstances" by international observers. Albania took a major step toward deepening and strengthening its democracy in November 1998, when its new constitution was overwhelmingly approved in a national referendum. In November 1999, a peaceful transition occurred after the existing Prime Minister lost his party leadership and was replaced through a peaceful political process. According to the OSCE, the local elections of October 1, 2000, were marked by significant progress toward meeting the standards for democratic elections formulated in the 1990 OSCE Copenhagen Document.
Albania is an exemplary partner in regional initiatives, including the Stability Pact, created in 1999 after the Kosovo crisis to achieve peace and prosperity and reinforce democracy and human rights in Southeast Europe. USAID will continue its work to strengthen Albania's institutions, civil society, rule of law, and to assist Albania to make appropriate investments in infrastructure and human capital.
USAID Albania will concentrate its efforts on primary health care (PHC), the focus of the Ministry of Health's strategy. Over the next three years, the Mission will pursue a measured approach that focuses on selected PHC services, especially reproductive health. It will target selected implementation sites to demonstrate impact and concentrate on capacity building so that the MOH is positioned to expand services beyond 2004.
USAID/Albania Mission Director:
Harry Birnholz,
tel: (355) 42-47285 ext. 1153; fax: (355) 42-27904
USAID/Washington Albania Desk Officer:
Francesca Nelson,
tel: (202) 712-0262, fax: (202) 216-3181
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Last Updated on: June 25, 2009 |
