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  Albania calmer, but grave social and economic problems remain

Tirana/Brussels, 11 March 2003: In its annual 'state of the nation' report on Albania, the International Crisis Group warns that grave social and economic problems could become tomorrow's political problems if they are left unaddressed. While the political climate is calmer, there is little sign of progress on institutional reform which continues to be hampered by endemic corruption and an inefficient public sector.

Albania: State of the Nation 2003 says the government was virtually paralysed by political rows in the first half of 2002, resolved only when the European Parliament brokered an agreement between the main political parties and a consensus candidate was chosen for president. After a long period of confrontation, the ruling Socialist Party (SP) and the opposition Democratic Party (DP) have agreed to cooperate. However the consensus is already unravelling and political tensions are expected to rise as local elections approach in October. The government has also adopted a much more confrontational stance with the media, with the result that most media outlets now take a pro-government line.

ICG's Senior Albania analyst, Miranda Vickers, said: "The political temperature was lowered by the agreement between the country's two best-known political leaders: Socialist Fatos Nano and Sali Berisha of the Democratic Party. But despite the outward appearance of calm, tensions still simmer below the surface and politics will probably return to its normal fractiousness".

Albania began negotiations with the EU on a Stabilisation and Association Agreement in 2002, and its key foreign policy goal remains membership of the European Union and NATO. The overall performance of the economy remains satisfactory, and Albania has been credited as a key factor in regional stability as it strengthens political and commercial links with all its neighbours. It is encouraging that a registration of minorities is taking place for the first time.

However there has also been an increase in organised crime, the judiciary is weak, unemployment is high, productivity low, and there are severe environmental problems and an ongoing energy crisis. Extreme poverty and lack of infrastructure, especially in the North, is producing constant migration and fuelling the trade in human trafficking.


MEDIA CONTACTS
Katy Cronin (London) +44-(0)20 7981 0330
email: [email protected]

Francesca Lawe-Davies (Brussels) +32-(0)2-536 00 65
Jennifer Leonard (Washington) +1-202-785 1601
Read the full ICG report on our website: www.crisisweb.org


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