The Economy of Albania

1047 Words3 Pages

An analysis of the Albanian economy in the past, current, and future demonstrates how an economic structure fluctuates with the type of government present at the time. Albania, a newly found member of the European Union, is a midst its battle to stabilize its vigorous economy that has had trouble since before the 1940’s. An explanation of this instability can be found looking through Albania’s history, government structure, currency and exchange rates, imports and exports including natural wealth, national education, unemployment rates, and the country’s overall integration on a global scale. The fall of communism in Albania began in 1985 when Dictator Enver Hoxha died. Before his death, he ruled Albania with communist and socialistic policies which led to a steadily decreasing economy. After Hoxha’s death, Ramiz Alia succeeded the dictatorship and continued with the same policies, but began to lighten the stronghold with allowances on the economy to let it begin to self-sustain (Eastern Europe 15). With the communist government letting go of some of its grip, the society of Albania began to rebel against the government, demanding more democratic policies and less communism. In 1991, communist rule fell and new policies began to be created focusing more on democratic ideals with a socialistic influence. Alia became the president during this time but was voted out of office in 1992 (Fund 1). Since then, Albania’s economy has varied extremely but is slowly improving. To comprehend the variations in the more recent economy fluctuation, reviewing currency alterations and balancing of foreign and domestic currencies can provide understanding. Since the establishment of the democratic government, the country began borrowing from other countries to allow for reform. Albania’s currency, the Lek, was in discussion of being formally changed to the euro. Much of Albania’s

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