This is how the Albanian economy can be reborn
Analysis by Wel Ding, representative in Tirana of the Monetary Fund
CARLO BOLLINO
TIRANA — They call it “the doctor of the economy,” because its role is to heal the country’s ailing finances and foster development. Like any doctor, it has been cursed—for the harsh remedies it prescribes and the sacrifices that must be made—but at the same time it is loved, because people want a better future. The International Monetary Fund, the great doctor standing beside the Albanian economy, has prescribed treatment for the country for another three years. A new agreement with the government in Tirana was signed a few days ago, and future measures have been planned, backed by new financing of 25 million dollars. “Yes, the population will still have to face many sacrifices,” says Wel Ding, the Monetary Fund’s representative in Albania, “but if our projections for the reform program are respected, as they have been so far, the crisis will pass.”
Let us take an objective look at Albania’s economic situation. Let us begin with the new sacrifices. “There are two main problems in Albania: imports exceed exports, and there is the fiscal deficit. This country spends more than it produces. The fiscal deficit is the greatest evil and must be overcome: the first attempt is made through external borrowing (which sooner or later must be repaid), then by issuing new currency (but this causes inflation), and finally through new taxes, that is, increasing revenues flowing into the state coffers. We believe the third option is the best.”
Does that mean taxes will rise again?
“The figures we have sent to the Government imply that. Look, to be fair and truthful, it is just like running a household: to pay debts you need income, and if it is not enough, you have to make an effort to increase it and cut back on spending. And we do not believe that raising taxes is the only way to try to fill the state deficit. Taxes will be increased in sectors where there is room to do so: for example, sales taxes, taxes on donations, and income taxes. We realize that paying taxes is no pleasure, but people must understand that the alternative would be inflation. Inflation means the lek loses its value, and people have less money in real terms, because their money is effectively being devalued. This phenomenon hits the poorest social groups hardest.”
Is it true that the Monetary Fund has asked Italy and the European Community to plan a reduction in the amount of food aid supplied next year?
“We are waiting to measure the quantity of wheat that will be harvested this year, and we will decide on the basis of the figures whether to continue. According to our calculations, there will be a new round of food aid. Certainly there will be aid, because domestic agricultural production has increased. Italy and the European Community should provide assistance to other sectors, such as infrastructure, industry, tourism and services.”
How do you assess the current economic situation?
“Compared with the other countries of the East, Albania ranks first—along with Poland—in the speed of development. Its population has shown that it is more courageous in facing the difficulties of reform, and the results are visible. The situation is improving in many respects: there has been no inflation in recent months, the credit sector is beginning to grow, and unemployment has fallen from 40 to 18 percent. Of course, the situation is not yet stable, which shows that we must be very responsible as we continue along the path of reform.”
Does imposing so many expenses on people mean making them endure many sacrifices?
“Growth always requires sacrifices, but it is very important that Parliament has passed laws such as the social protection law: only the poorest sections of the population should be allowed [to receive support].”
In your opinion, has the most difficult period passed?
“That is difficult to answer. I say that the emergency phase has passed and that we are now striving to enter a phase of stability. After that comes a new phase of genuine development. Privatization and the industrial sector represent the most difficult problems. But facing them will still require sacrifices and a great deal of money.”
Tirana market
Islamic association outlawed
TIRANA — (ed. la.) — The Islamic association “Youth and Religious Culture” has been outlawed. This is the third decision of its kind taken by the Ministry of Culture, Youth and Sports in recent days. “The reason is that they translated religious literature promoting understanding among the different religions in Albania,” says Bardhyl Fico, Secretary of State for Religious Affairs. “Anyone who seeks to create divisions will be treated in this way.” Among the publications of the association “Youth and Religious Culture” is the book “30,000 Errors in the Bible.”
Pictured is one of the many magazines published in Albania for the Islamic community.
Robbing Kosovars, he is stopped by police
Serious incidents are being reported
TIRANA — (Ed.La.) Citizen Riza Lami, 25, from the village of Domje near Tirana, has been arrested. The Investigative Police of Tirana’s Region 4 suspect that Lami was responsible for the robbery—committed two months ago—of two Albanian citizens from Kosovo, from whom he took 1,000 Swiss francs along with their foreign passports.
After the victims reported the incident to the Police, it was possible to identify the perpetrator, who managed for days to evade the investigative police in various villages around Tirana. Only yesterday, following a carefully planned operation, Riza Lami was caught by the Region 4 security forces. After being stopped near Kamza, Lami was placed under arrest. The robbery of the Albanian citizens from Kosovo is the only case of its kind, and the Police are continuing their investigation to identify people suspected of similar crimes. Recently, at the house where Riza Lami lived with the arrested man, a gang of masked robbers, without any [?], carried out a robbery, taking a quantity of money, a tape recorder and two different items of clothing. Robbers most often prefer foreign passports, which they see as an opportunity to leave the country.
Serreqi: “We do not accept conditions from Greece”
TIRANA — Albania has issued an emphatic No to all the conditions set by Prime Minister Kostas Papandreu concerning the signing of Albanian-Greek relations.
“The Greek side still has to reconsider the position it has taken,” was the official response of Alfred Serreqi, Albania’s Foreign Minister. Among the Greek conditions, Minister Serreqi believes that “the influence of the Church over the Greek state is very great. On this basis, it is difficult to reach an understanding.”
Serreqi said that Albania is open to dialogue, but not to conditions.
After killing a woman, he flees to Italy
VLORE / The young man is arrested in Puglia
VLORE — (p.r.e.) He had killed a woman, then fled to Italy.
The police identified him, and the Prosecutor’s Office in Vlora asked the Italian court to arrest him. And so Pandel Dine Skënderi, 25, from Vlora, was detained in the town of Pusano, in the province of Taranto, where he had arrived a few days earlier as an undocumented migrant. Prosecutor Ciro Saltamacchia ordered his provisional arrest for 10 days, pending completion of the procedure for his return to his homeland. In practice—through complex bureaucratic mechanisms—the Albanian investigators must take custody of Pandel Dine Skënderi from the Italian authorities. This must be arranged by the President of the Court of Appeal, based in Bari. “If the procedure has not been completed within ten days,” Dr. Saltamacchia told the Gazette, “I will repatriate the Albanians who fled, setting them free.” But, given that he is an illegal immigrant, the Italian police will take steps to return him to his homeland, and upon his arrival in Vlora he may be arrested again. For now, Pandel Dine Skënderi is in Taranto prison. The killing in Vlora appears to have been committed for ordinary motives. The perpetrator? They have not made the name of the murdered woman known.
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Adoptions: Prosecutor Plaku in prison
The real reasons for the arrest
TIRANA — Vasil Plaku, former Deputy Prosecutor of the Republic, who was dismissed by Parliament last Monday, has been arrested. The decision by the Tirana Prosecutor’s Office is based on the lengthy investigations into Plaku, among others, conducted by the Tirana District Investigation Department into the adoption scandal.
The arrest does not seem very surprising, since after his immunity was removed in January, his dismissal from office was all that was needed for normal proceedings to begin. Because Plaku—while in office—even if he had gone to trial, could have immediately dismissed the case as the highest-ranking prosecutor. But it is possible that the former Deputy Prosecutor of the Republic is now also being investigated over the release of Skënder Haxhiu and Gjolek Zeneli, a decision that was revoked only after a laugh from the Prosecutor of the Republic, Alush Dragoti. Thus Albanian justice had already suffered a blow, and the person responsible is still being sought by the Police.
The adoption scandal, in which Plaku is also suspected of being involved, has been under investigation for some time. While he held the post of Deputy Chairman of the Tirana Court, he also presided over 97 adoption cases. Some of them have already been sent back by the Court of Cassation because of irregularities, and all the case files are still in the hands of the investigators. The same is true of the files of former Chairman Lambe Kulaj, who left Albania before being arrested.
Plaku is also accused of document forgery in connection with the adoptions. Registered as a prisoner at 2 p.m. on Friday at Tirana Prison, Vasil Plaku spent his first night in isolation without naming the lawyer he would entrust with his defense.
WEEKLY HOROSCOPE
— by Stella Wilder
Aries 20/III–20/IV: Try to enter into discussions today instead of starting arguments. Be clear, honest and fair.
Taurus 21/IV–20/V: Today devote all your energy and inspiration to your family. Spend as much time with them as possible; you will benefit.
Gemini 21/V–20/VI: Try to find the right balance between desires and needs. The two must be in perfect harmony if you are to get through this day.
Cancer 21/VI–22/VII: This is a good day to forgive those who have unintentionally offended you. The reward will come back to you soon.
Leo 23/VII–22/VIII: Before embarking on a new adventure today, consider all the negative aspects. Do not let euphoria take hold of you and let boredom be the one advising you.
Virgo 23/VIII–22/IX: It is up to you today to solve a problem created by your indecision; all you need is a little sound judgment.
Libra 23/IX–22/X: Today you will act within your close circle, but you must not forget one or two basic safety rules.
Scorpio 2/X–21/XI: Your financial situation today calls for greater foresight and care with your usual spending.
Sagittarius 22/XI–21/XII: Leave nothing to chance. Try to find an advantageous position in relation to your opponents.
Capricorn 22/XII–19/I: Do not overlook any detail. Success will depend entirely on your ability to concentrate and pay attention.
Aquarius 20/I–19/II: Lately you have had the impression that you have made great efforts. Today you must focus on an unforeseen obstacle.
Pisces 20/II–20/III: Patience is your best friend today. If you get nervous, even for a moment, it will cost you dearly.