Shocking announcement from Vefa, but its president reassures: “There is no cause for panic; everyone will get their money” Vlora students meet Berisha today: “We will decide about the strike” Yesterday, Alimuçaj’s company made the announcement: “Those with less than USD 5,000 should withdraw it; the large sums later” Italian financing sought by Alimuçaj: “By June we will see whether Vefa still exists” On page 3 Meetings lasting until midnight between Vlora students and politicians: “After meeting with Berisha, we will talk with our fellow students” On page 4

Andrea Stefani Is the economy once again caught up in scandals of political devastation? With roots in the deepest financial scandal in the history of a people, politics, having set the country’s disorder in motion, has begun making a mockery of Europe’s poorest country, eclipsing the very thing that gave rise to it: the crisis of the pyramid schemes. Economists, financiers, and even those at the very epicenter of the “usury” scandal—the finance minister and the governor of the Bank of Albania—are silent. Politics has the floor and, with extreme cynicism, repeats its familiar attempt to profit at the expense of a people whose eyes have been clouded by the tragedy into which the politicians they built up and voted for so overwhelmingly have led them. The collapse of the pyramid schemes and the all-encompassing crisis of values that is following it are yet another Albanian testament to the sacrifice of the economy for the sake of politics, a sign that politics risks remaining “in the foreground” and that the economic roots ... —despite the good intentions—were not based on sound economic calculations. But this people is far too exhausted by the endless decades of transition to accept yet another adventure, far too exhausted to accept another “sorry” from its politicians and rulers. Yet while Albania is living through its deepest crisis since the overthrow of communism, with the streets and politics ablaze, the country’s scientific, economic, and financial institutions remain silent. Hence a fog of doubt hangs over today’s political promises to resolve the crisis, because no one knows what economic thinking the proposed formulas are based on. More than that, will they help us, or push us into a new catastrophe? This may be the most unique case of “pathology” in global finance: a people has become financially bankrupt and must be treated. The scale of this common financial grave is still not ... roi and invested so much in it. of politics, a testament that politics continues to remain “in the foreground” and that its economic levers are still rudimentary. But perhaps precisely this financial catastrophe, caused by thinking without economics, will make politicians—government and opposition alike—turn their attention to the economy too, granting it the independence it deserves and freeing it from the shackles of political diktat. The first step, and at the same time an indicator of the financial maturity of Albanian political circles—above all those in government—would be to lift the veil of mystery that continues to cover the “pyramid scheme” tragedy. For although many pyramids have collapsed and others are shaking, the public has still not been addressed in figures. It is still unknown how much money Albanians lost in the pyramids that were built up so triumphantly, seemingly reaching to the horizon. But it is also unknown how much money Albanians made from this business, which even led some Europeans to believe in the miracle of the Albanian country. Without such a balance sheet, without accounting for the pyramid-scheme tragedy in figures, it cannot be properly understood and therefore cannot be properly remedied. The mass protests in several cities, almost parallel to the banks’ distribution of the money seized from “Populli” and “Xhaferri,” show that the latter is only a temporary solution. The scale of the tragedy is much greater. There are also tens of thousands connected to “Gjallica,” “Suda” or “Grunja,” etc. And there is no guarantee that others will not join their ranks, waiting for hope, for salvation. Who will provide it? Punishment today would wipe out politics itself, but there is still enough time for reality, in the best case, to promise politicians another respite. And this either means they stay out of the political and monetary game, or else—because subsequent forecasts are costly—whether it will punish them or push us into a new catastrophe. For this may be the most unique case in the “pathology” of world finance: a people has gone shared financial grave is still unknown. But partial data make one believe that the Albanian economy would have to work for a full year—which is impossible—just to compensate the victims. The pyramids have created an enormous debt to their clients, one that cannot be repaid in the short term. Perhaps dealing with the consequences of this crisis would also require the establishment of a special body—with local and foreign specialists—to handle the “management” of these debts. It is economic logic itself that seems to demand the extensive use of various techniques, from direct repayment of money to tax relief, privatization, or perhaps even the state taking on part of this debt through the issuance of long-term bonds. But the exact shape of the rescue formula can be determined only after full consideration of the firms’ financial data, the consequences of the catastrophe, and the response of the macroeconomic environment to them. A lack of transparency and the concealment of data because of political rivalries would have serious consequences. Whatever political solutions may emerge from the “pyramid scheme” crisis cannot change the technical nature of a remedy. But the latter can be devised only by economists, not politicians. Political tables may be set or overturned, but the tables of economic specialists, whether private or not, whose only clients are the public, must not wait for a “license” from politics. For it is not a given that salvation—whose political success in Albania is built weakly upon deepening economic damage—will come. And perhaps by bringing the truth into the open, economic thinking will help Albanian politics steer away from the disproportionate depths toward which it is dangerously rushing.

People queued in front of the entrance to a building.

FROM THE WORLD Deng Xiaoping Deng Xiaoping died yesterday at the age of 93: He was China’s reformer BEIJING - On Thursday, local time, Beijing announced the death of Deng Xiaoping, also described as the “great survivor.” There was a complication ... the 93-year-old’s eyes. The news of Deng’s death was made official in a letter from the Communist Party. “The Party and the government announce with sorrow the passing of ...

BEIJING - On Thursday, local time, Beijing announced the death of Deng Xiaoping, also described as the “great survivor.” BEIJING - Xiaoping, also described as the “great survivor.” It was a complication of Parkinson’s disease, which the leader had suffered from for a long time, that brought the 93-year-old’s life to an end. announce with sorrow the passing of Deng Xiaopin,” were the opening lines of the letter. On page 11

“We will commemorate the overthrow of the dictator” On page 2

Gjonecaj alone in the hall PS leaves Shehu’s table empty Berisha in Elbasan: “The blame for the pyramid schemes is shared. We will publish the names of government officials who deposited money in the schemes” On page 2

On pages 5–8

TODAY: SIXTH ANNIVERSARY Pyramid schemes overshadow the anniversary The overthrow of Hoxha is commemorated TIRANA — Cheers, a heavy, very heavy bronze statue collapsing as if it were a cardboard figure, followed by waves of cheering and police crowds standing in solidarity together. This was the atmosphere of February 20 six years ago. Enver Hoxha had finally been toppled and was then dragged over to the students barricaded in the government building. All the television stations in the world, including the Albanian one, broadcast images of the statue slowly falling over the square filled with a crowd of jubilant protesters. Today, Albania, six years later, understands the Albania of the fire that night. A lot has happened since then; many of those who took part that night are no longer in Albania, while others, though younger, are now at the front of the struggle, alongside other people. It seems they have forgotten that the common goal of most of the country was democracy, a word used so often (here) that the slogan “Move—Democracy” was shouted from the hearts of hundreds of thousands of people, young and old. No one—at least no clear-headed person—believed then that the road to a democratic Albania would be easy. But no one foresaw this scale of hatred, lack of dialogue, destructive spirit, demagoguery and deception. Surely today—if it were not for the two announced rallies—very few people would remember that historic day, when the overwhelming majority of Albanians stood together, cheering for a better Albania. Today, the memory of the bronze statue of the overthrown dictator will surely be just one among hundreds of thousands of Albanians overwhelmed by the tragedy of the pyramid schemes. If this were another time, things would be different. ta.bax.

People in front of VEFA’s counters

Forum for Democracy On page 2