Albania

IN THE 1990s, the Republic of Albania became a multiparty democracy after almost half a century under communism. The transition process ushered in a period of high unemployment, widespread corruption, inefficient infrastructure, energy shortages, and increased criminal activity.

Over half of Albania's population is involved in agriculture; however, frequent droughts and obsolete technology inhibit agricultural success. Poor transportation and highway systems present further obstacles to a healthy economy. An important source of revenue for Albania is regular remittances by Albanians who work abroad, chiefly in Greece and Italy. Government officials are in the process of dealing with economic problems by promoting economic growth and trade while derailing violent crime. Further growth may come from exploitation of Albania's natural resources, which include petroleum, natural gas, coal, bauxite, copper, and hydropower.

As a communist country, Albania did not recognize the concept of poverty. Since the transition, the Albanian economy is one of the poorest in Europe. Albanians live on an average annual income of $1,450, and estimates for 2005 suggest that at least one-fourth of the population lives in poverty. While the official unemployment rate is 14.8 percent, unofficial estimates place it as high as 30 percent. Unemployed workers do not qualify for social assistance.

Government data on poverty indicate that in the late 1990s, Albania had begun reducing the number of people receiving social assistance when disaster struck as hundreds of thousands of Albanians lost investments in collapsed pyramid schemes and more than 150,000 refugees poured into the country from Kosovo. Albanian poverty is particularly persistent in rural areas, and many children walk to nearby cities to sell cigarettes or shine shoes to help their families survive. Even though pensions are higher than social assistance payments, the elderly often lack basic necessities. The poorest 20 percent of the population share 9.1 percent of resources, while the richest 20 percent claim 37.4 percent of capital. Albania is ranked 38.2 on the Gini Index of Human Inequality. The United Nations Development Program Human Development Reports rank Albania 65 of 177 on general quality-of-life issues.

The social unrest of 1997 resulted in decreased access to and quality of basic healthcare in Albania. The population of 3,563,112 experiences a life expectancy of 77.24 years, and it has been steadily increasing since [Page 29]1980. The median age is 28.52 years in Albania. Nearly 27 percent of the population are under the age of 14, and 8.6 percent have seen a 65th birthday. Nine percent of Albanians do not have access to safe drinking water, and three percent lack access to proper sanitation. There are 136 physicians per 100,000 residents, and 50 to 79 percent of the people have access to affordable essential drugs.

When compared to Europe as a whole, Albania's infant mortality is high, but mortality rates have declined. Between 1970 and 2002, infant mortality fell from 68 deaths per 1,000 live births to 26 deaths per 1,000. Among all children under the age of 5, the mortality rate decreased from 82 deaths per 1,000 to 30 per 1,000 during that same period. Fourteen percent of all children under 5 are malnourished. Eleven percent of under-5s are moderately to severely wasted, and 32 percent are moderately to severely stunted.

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