Albania
Executive Summary
Political stagnation characterised the first half of 2002, following the resignation in February 2002 of Prime Minister Pandeli Majko, who was succeeded by Fatos Nano. The country entered a phase of political dialogue, following an EU-brokered agreement in June 2002 that was intended to prevent the long-standing feud between Nano and the Democratic Party (DP) leader, Sali Berisha, from continuing to hinder the reform process and the election of Alfred Moisiu president as consensus figure. By early 2003, however, this unusual consensus appeared to have unravelled, returning politics to its more normal fractiousness. The power struggle within the SP however suppressed after August 2002, never ceased to exit. Gradually, two rival fractions were formed, led by Fatos Nano and Ilir Meta. The October 2003 local elections will most probably lead to reorganisation of the political scene.
The fundamental goal of the foreign policy of Albania is integration of the country in the Euro- Atlantic institutions through membership in the EU and NATO. Despite the development in the EU integration process, the foreign policy of Albania remained openly pro- American. A major success in the EU integration process was the opening of Stabilisation and Association Agreement in January 2003 that marked the achievements of the country in the Stabilisation and Association Process. The country hopes to join NATO in 2006, together with Croatia and Macedonia. Albania tried to be as neutral as possible in the ethnic conflicts in Kosovo, Southern Serbia and Macedonia and seeks normal relations with the neighbouring Slavic states.
The Albanian economy grew strongly during 2000- 2002, although there has been a downward trend towards the end of this period. Albanian economic growth of 4,7 percent for 2002, attributed to the expansion of private sector, was mainly supported by transport, services and construction sector activity, while the public sector is constantly shrinking. However, economic growth of 2002 is the lowest as compared to the period of 1998-2002, with a deviation of 1.3 percentage points from the announced target of the beginning of the year (6 percent). Nearly all economy sectors, especially industry and agriculture, have indicated lower growth rates than the projections.
The structure of the Albanian economy is changing. Agriculture and live animal sector, which traditionally have sustained economic development, have a reducing weight, while trade and services indicate an increasing contribution. These structural changes are in accordance with the ought-to-be-taken development of a country targeting integration in EU.
In 2002, Albania's armed forces have launched a 10-year reform program sponsored and supervised by the U.S. Defence Department in order to trim down and thoroughly modernise its current standing force of more than 30,000 troops.
Sources used for the profile: CSEES, National Bank of Albania, International Crisis Group, CIA World Factbook