1 / 24

Albania’s Troubled Economy

Albania’s Troubled Economy Justin Wise wisejj@uwec.edu Geography 308 (Russia and Eastern Europe) Professor Zoltan Grossman University of Wisconsin-Eau Claire Spring 2005 Where in the World is Albania? http://www.worldatlas.com/webimage/countrys/europe/al.htm

Mia_John
Télécharger la présentation

Albania’s Troubled Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Albania’s Troubled Economy Justin Wise wisejj@uwec.edu Geography 308 (Russia and Eastern Europe) Professor Zoltan Grossman University of Wisconsin-Eau Claire Spring 2005

  2. Where in the World is Albania? http://www.worldatlas.com/webimage/countrys/europe/al.htm

  3. Influences on Albania’s Economy • Geography • Coastal boundary • Mountainous region • History • War • Transition from Communist government • Foreign assistance • Pyramid Schemes http://www.factmonster.com/ipka/A0107268.html

  4. Geography of Albania • Similar in size to the state of Maryland • Coast is along the Adriatic Sea • Two major regions: • Mountainous • Coastal lowlands

  5. http://www.grida.no/db/maps/prod/level3/id_1259.htm

  6. Mountainous Region • 70% of the landmass is mountainous highlands • Highlands located in the North, East, and South http://www.geocities.com/Paris/Louvre/6820/PEISAZH2.JPG

  7. Mountainous Land Use & Industry • Land Use • Mining • Timber • Livestock • Industry • Machining • Cement production • Textile • Metal goods http://www.lib.utexas.edu/maps/atlas_east_europe/albania-economy.jpg

  8. Coastal Region • Densely populated • Contains a majority of the country’s agricultural lands http://www.geocities.com/Paris/Louvre/6820/vlora8.jpg

  9. Coastal Land Use & Industry • Land Use • Agriculture • Wheat, Grapes, Dairy, etc. • Pasture land • Industry • Petroleum refineries • Chemicals • Textiles • Food Processing http://www.lib.utexas.edu/maps/atlas_east_europe/albania-landuse.jpg

  10. History of Albania • Long history of involvement in war • Isolation from rest of world in Enver Hoxha (communist) dictatorship • Dramatic shifts in government systems • Large amounts of foreign aid in recent years • Corrupted Pyramid business practices

  11. Long history of involvement in war • Occupied during both World Wars • WWI • Italy, Serbia, Greece, & France • WWII • Germany & later Soviet Union • Pro-Nazi “Greater Albania” included Kosovo and western Macedonia • Kosovo Conflict • Large numbers of Kosovar-Albanian refugees www.msnbc.com/news/546910.asp&h=249&w=330&sz=19&tbnid=8ThwmEGLh68J:&tbnh=86&tbnw=114&start=17&prev=/images%3Fq%3Dalbanian%2Bwar%26hl%3Den%26lr%3D%26sa%3DG

  12. Isolation from the rest of the world • Enver Hoxha • Albania’s 1st communist chief of state • Ruled for 40 years • Albania became the most tightly controlled country in Europe • Restricted trade • Limited communication with the rest of Europe http://ciml.250x.com/gallery/enver.jpg

  13. Shifts in governmental systems • Early 1900s-1948 – Socialist • 1948-1991 – Communist • Soviet Communism • Enver Hoxha dictatorship • Chinese Communism • 1991-1992 – Reformed Socialist • 1992-Present – Emerging Democracy

  14. Large amounts of Foreign Aid • Italy, under Mussolini, provides aid when he gained Albania (1935-1939) • Communist partisan leader Enver Hoxha takes over • Albania joins Soviet-allied Council for Mutual Economic Assistance “Comecon” (1949) • Hoxha signed agreement between Soviet Union and Albania for economic assistance (1951)

  15. Foreign Aid Continued… • Large amounts of economic aid from Soviet Union, Eastern European countries, and China begin pouring into Albania (1959) • Albania sides with China, Soviet economic support to Albania stops, and Chinese aid is increased (1960) • China terminates all economic aid to Albania (1978), and it becomes the poorest country in Europe

  16. The Pyramids of Albania! • Albanians personal savings soared • Equaling ~15% of the nation’s GDP (1995) • Investors saw opportunity • Introduction of the pyramid scheme…

  17. How the Pyramid System Works • High interest rates • Promise of 30%-50% return • Earliest depositors gain most return • Everyone investing benefits • Or do they…

  18. Pyramids Gone Awry • All but few operated honestly • Systems corrupted by swindlers and pseudo-businesses • Many Albanians fooled

  19. Effects of the Pyramid Schemes • 50% of Albania’s GDP lost to the schemes • $1.2 billion • ½ of nation’s money gone (only eight years ago!) • Albanian government blamed by the people • Trust in the government broken • Judiciary and bureaucracy remain weak

  20. Effects continued… • Massive rioting broke out • Foreign minister Tritan Shehu attacked and injured after trying to calm the rioters • Police stations, town halls, court houses set on fire • US forces currently in Albania helped to control crowds

  21. Current Economic Status • Poorest country in Europe • Lowest European standard of living • Relatively high unemployment rate • 15.8% (closer estimates near 30%) • Organized crime flourishes in chaotic circumstances • Remains a developing country, even though it’s in Europe • EU Membership? Not a chance! http://www1.tip.nl/~t100878/ALPIX/jube.jpg

  22. Currency & Exchange Rate • Leke or Lek • Current Exchange Rate • 97.42 per US Dollar http://www1.tip.nl/~t100878/ALPIX/abb5lv.jpg http://www1.tip.nl/~t100878/ALPIX/abc1laa.gif

  23. Future Albanian Economy • Striving for a more open-market economy • New chief of state Alfred Moisiu (elected July 2002) • Restored public order • Increased economic activity and trade • Remittances of workers abroad help to supplement the GDP http://cp.settlement.org/english/albania/images/alb17.jpg

  24. References • http://lcweb2.loc.gov/frd/cs/altoc.html • http://www.loc.gov/rr/international/european/albania/al.html • http://www.abacci.com/atlas/economy3.asp?countryID=121 • http://www.factmonster.com/ce6/world/A0856539.html • http://www.factmonster.com/ipka/A0107268.html • http://www.state.gov/p/eur/ci/al/c4069.htm • http://www.worldbank.org/html/prddr/trans/so97/albania2.htm • http://www.b-info.com/places/Bulgaria/news/97-01/jan28a.omri

More Related