ALBANIA: STATE OF THE NATION 2003 11 March 2003 Balkans Report N°140 Tirana/Brussels TABLE OF CONTENTS EXECUTIVE SUMMARY AND RECOMMENDATIONS................................................. i I. INTRODUCTION .......................................................................................................... 2 II. POLITICAL DEVELOPMENTS ................................................................................. 2 A. MEDIA ................................................................................................................................3 B. THE KLOSI AFFAIR ...............................................................................................................4 C. THE RETURN OF LEKA ZOG...................................................................................................4 III. THE ECONOMY............................................................................................................ 5 IV. SOCIAL ISSUES ............................................................................................................ 7 A. CRIME AND CORRUPTION......................................................................................................7 B. DECENTRALISATION .............................................................................................................7 C. THE MUSLIM COMMUNITY....................................................................................................8 D. ENVIRONMENTAL PROBLEMS................................................................................................8 E. POVERTY ..............................................................................................................................9 F. WEAPONS COLLECTION ......................................................................................................10 G. MINORITIES ........................................................................................................................11 V. INTERNATIONAL RELATIONS.............................................................................. 12 A. SERBIA................................................................................................................................12 B. MONTENEGRO.....................................................................................................................12 C. MACEDONIA .......................................................................................................................12 D. KOSOVO..............................................................................................................................13 E. ITALY..................................................................................................................................14 F. GREECE ..............................................................................................................................14 VI. CONCLUSION ............................................................................................................. 15 APPENDICES A. MAP OF ALBANIA...............................................................................................................16 B. ABOUT THE INTERNATIONAL CRISIS GROUP.......................................................................17 C. ICG REPORTS AND BRIEFING PAPERS.................................................................................18 D. ICG BOARD MEMBERS .......................................................................................................23 ICG Balkans Report N°140 11 March 2003 ALBANIA: STATE OF THE NATION 2003 EXECUTIVE SUMMARY AND RECOMMENDATIONS Political feuding virtually paralysed the Albanian greatly hindered by endemic corruption and an government in the first half of 2002, until the inefficient public administration. Other negative European Parliament brokered an agreement between factors include an increase in organised crime, a the main political parties which led to the election of weak judiciary, high unemployment, low production, retired army general Alfred Moisiu as the consensus severe environmental problems, and an ongoing choice for president. Although the 73-year-old energy crisis. The government shows no signs of Moisiu leans to the right, he has pledged to represent seriously tackling corruption or backing down in its all Albanians equally. After a long period of confrontational stance with the media. confrontation, the country entered a phase of political dialogue. The opposition Democratic Party (DP) While a degree of political, economic and social ended its boycott of local government institutions progress is clearly evident in Tirana and the major and began to work with the ruling Socialist Party central and southern towns, the North remains (SP). In August 2002 parliament voted in a new largely unaffected. There the lack of infrastructure Socialist-led government with the SP chairman, and investment, combined with extreme poverty, is Fatos Nano, as Prime Minister for a third time. By producing a constant migration, which in turn fuels early 2003, however, this unusual consensus the trade in human trafficking and contributes to appeared to have unravelled, returning politics to the lagging social and economic development. its more normal fractiousness. Political tensions are expected to rise as October local elections approach. RECOMMENDATIONS Albania’s key foreign policy goal remains membership in the European Union and NATO. To the Albanian government: Preliminary negotiations with the EU on a Stabilisation and Association Agreement began in 1. Fulfill the undertakings on electoral reform February 2003. Albania is trying to play as neutral given to the opposition and the international a role as possible in the ethnic problems in Kosovo, community in 2002. Southern Serbia and Macedonia, and is seeking to 2. Prioritise development of the deprived rural establish normal relations with its Slav neighbours. areas, especially in the North, by: In June 2002 the pretender to the royal throne, Leka (a) creating a specific agency for economic Zog returned to Albania after 63 years in exile. With development in the North, based in no political role, Leka is keeping a low profile. Shkoder, to assist rural mountain Albanians appear largely indifferent to his presence communities advance from basic and his desire for a referendum on restoration of the subsistence to commercially oriented monarchy. enterprises; (b) directing more international funding to the Although the political climate is calmer, and stability Mountain Areas Development Agency has been restored to most of the country, grave social (MADA), to enable it to continue its work and economic problems could become tomorrow’s in remote rural areas beyond 2007, when political problems if left un-addressed. Albania’s its six-year mandate is due to expire; institutions are weakened and the reform process Albania: State of the Nation 2003 ICG Balkans Report N°140, 11 March 2003 Page ii (c) creating financial incentives to stem the (c) making serious efforts to control border migration of educated people from rural crossings. areas and to encourage professional people, 5. Encourage local officials to cooperate with such as teachers, to work in rural districts; those assigned to collect and dispose of and weapons. (d) including minor rural roads that connect 6. Cease harassment of independent media, and remote villages with main regional centres ensure that Albania meets it international in infrastructure planning. obligations on freedom of speech. 3. Strengthen environmental monitoring and public awareness of local environmental issues. To the European Union and the wider international community: 4. Take firmer action against corruption and organised crime by: 7. Continue to condition aid and the conclusion of (a) strengthening the institutional structures an EU Stabilisation and Association Agreement necessary for implementing the Law on on the Albanian government following policies Money Laundering; of institutional reform and responsible regional politics. (b) establishing a fully financed and well- publicised witness protection system; and Tirana/Brussels, 11 March 2003 ICG Balkans Report N°140 11 March 2003 ALBANIA: STATE OF THE NATION 2003 I. INTRODUCTION In October 2002 EU foreign ministers agreed to open talks on a Stabilisation and Association Agreement, as a first step toward EU membership. Negotiations Political stagnation characterised the first half of began on 31 January 2003. The conditions set by 2002, following the resignation in February of Prime Brussels before Albania can hope to achieve full Minister Pandeli Majko, after the ruling Socialist membership include completion of institutional Party (SP) combined the posts of party chief and reforms, progress in combating organised crime and prime minister. SP Chairman Fatos Nano succeeded corruption, and the strengthening of government at Majko, who himself had come to power in 1998 as local as well as central levels. Prime Minister Nano the result of an internal power struggle between Nano has assured the EU of his government’s commitment and the previous Prime Minister, Ilir Meta.1 This lack to tackle these issues but there remain concerns that of continuity in the government severely hampered the political class may not have the will, or strength development of the country’s weak institutions. For of purpose, to more than cosmetic changes. the present, however, Nano appears to be maintaining control of both his own party and the ruling