- Privatization is decisive for the success of the reform. Agricultural production is increasing, while the decline in industry has stopped. Housing will be privatized within the year. - In events such as the one involving the Police, transparency is important. - The government aims to make all Albanians property owners. - This winter will not be easy, but with the measures taken, it will certainly not be as difficult as last winter. - The members of the British regatta that will visit Albania will encounter no more mines, but rather Albanian hospitality. - Albania is interested in strengthening the embargo.

R. D. 22.11.1992 [?] The regime organized the Shkodër massacre, in which, on 2 April, four leaders and founding members of the DP were killed and more than 80 innocent citizens were wounded. One thing was clear: certain forces of the communist regime had chosen the bloody path to preserve their hold on power, whereas the democratic forces were determined to pursue only peaceful paths and means to remove them. The general government of Albania’s rulers imposed the government’s resignation in May 1991. The political situation became extremely tense, people’s patience was running out, and the rulers’ anger over their heavy losses was growing. Under these circumstances, we decided to respond positively to the independent trade unions’ request to form a coalition government, which was called the Government of Stability. Its formation in June 1991 had two effects pointing in opposite directions. By taking part in the government, we managed to avert a possible conflict; on the other hand, the opposition became a political majority for those holding power, and democratic processes slowed down. The foundations of a neo-communist regime were crystallizing in Albania. In these circumstances the opposition would demand early general elections, which were held. Therefore, it left the Government of Stability at the beginning of December and, on 22 March 1992, took part in the general elections without sharing power with those in office. This distinguishes it from all the other Eastern European oppositions. Ladies and Gentlemen, Albanian communism left the historical stage through destruction. During the last two years, through chaos, we experienced organized destruction: hundreds of schools were deliberately destroyed or burned, entire forests were cut down, telephone lines were destroyed, mass exoduses were organized, warehouses were broken into and humanitarian aid was attacked; thousands of Albanians were burned or robbed in towns together with the exoduses. All of this was intended to create scorched earth for the democratic government coming to power and to distort democracy as much as possible, before people who had experienced only dictatorship. The transition from dictatorship to democracy, from the kingdom to a free society, was also accompanied by a profound change in the profile of the social landscape. Dictatorships are based on deception and discrimination against post-dictators, and in dictatorial and post-dictatorial societies, I said, the demon of the regime often lingers in the information space. But in dictatorial societies, fear is undoubtedly the fundamental mechanism for transforming and destroying human character. It turns into terror, anxiety, rage, euphoria. It is contempt, a drive to duplicate, self-censorship, intolerance. These are other syndromes that dominate the psychology of an unfree person. In post-dictatorial societies, they turn into what might be called the pathology of adaptation, dominated by profound disappointment, psychosis or despair. Perhaps because of the exhaustion caused by the long, bloody political violence under dictatorship, the courageous belief that freedom and prosperity would come immediately afterward, under a regime leading to a new and even unknown society, together with disorganization, chaos and the destruction of the old state, and harsh political conflict among people who were now free, are among the factors that deeply shake the spirit and psychology of people in post-dictatorial society and create a true psychosis of despair. But despite the great upheavals that communism caused in Albania’s social, political, economic and cultural life, despite the terror, chaos, fear, disappointment, despair and clashes it created, I must say that among Albanians the syndrome of disappointment was less severe, the psychosis of despair was generally temporary, while faith in the path of democracy was greater than among other peoples. This is why, on 22 March, over 72 percent of them voted for the democratic opposition as a whole and 65 percent specifically for the DP; and, under the majority system, it won 90 seats in parliament and secured 92 of the 140 seats. This is why serious studies show that, despite the great economic difficulties the country is experiencing, Albanians’ confidence in the country’s direction and in economic reform is among the highest in the region. This shows that a people who have suffered for more than 20 years are more resilient to profound upheavals, but also value their newly won freedoms more. Albania’s political stability, which is undoubtedly the greatest in the region, and support for reforms in this country are still connected to the fact that the best part of the democratic forces in Albania came to power as a recognized opposition, and not as a coalition of the masses. Ladies and Gentlemen, The opposition forces that came to power in the 22 March elections inherited a heavy burden and

Munich, 15–17 November ’92 I would like to begin my address at this symposium by expressing my deep respect, and that of the Albanian people, for Franz Jozef Shtraus, that great German statesman who, nine years ago, set out from the capital of Bavaria to meet, in the far corner of the Balkans, a very old and resolute people who at that time lived in the darkness of their history. His arrival in Albania may have seemed a paradoxical journey to many of his contemporaries, but to us Albanians, who were experiencing the deepest isolation, he came like a ray of light, a ray of hope, on a great mission, for the message he brought was even greater. I would sum it up in two words: Europe has not forgotten you. Nine years later, the Albanians won their freedom and, on 23 March of this year, their free representatives cried out: “Free, in gratitude, Europe, we have not forgotten you.” Their distinguished friend from Bavaria was no longer with them. Their victory, which was also his, would have delighted him greatly. But Albanians love their friends dearly, and so they will always honor Shtraus. Ladies and Gentlemen, Ancient peoples in general have a long history filled with profound upheavals and terrible dramas, testifying to the degree of their resilience. This is true of the Albanians too, who have undoubtedly had one of the most difficult histories. But we are not history, and we do not intend to stop here, because I want to emphasize that, among the many invasions and hardships we endured, the communist occupation was extremely brutal for us, the most brutal in Europe. Let me remind you that nowhere else in Europe did free speech and free thought exact a higher price; prisons and concentration camps for hundreds of thousands of Albanians; profound isolation, total collectivization, and the disinformation of Albanians at the head of the Albanian communist dictatorship. Hundreds and thousands of bunkers filled Albania’s villages, hills and mountains, clearly demonstrating that the Albanian communist night was the dark night of a man. Yet even Albania, the “bunker of socialism,” could not resist the penetration of the principles of Helsinki, which, with the spirit of democracy, were to undermine the power of dictators and dictatorships in Europe from one day to the next. These principles, Gorbachev’s rise to power and the changes in the countries of the East, but especially the fall of the Berlin Wall and the Iron Curtain, spurred many Albanian intellectuals to demand freedom of speech and, in 1990, openly to demand the individual’s fundamental freedoms. Meanwhile, workers in Kavaja, Shkodër and Fier took to the streets in anti-communist demonstrations, during which there were killings and the national flag was raised at the forefront; perhaps they continued to support isolation. Under these circumstances, on 1 September 1990, students of the University of Tirana, together with a decision by the President of the 12th Congress of the PPSH not to allow pluralism, took to the streets in a powerful demonstration and, supported by intellectuals and workers, founded the Democratic Party, the first opposition party in Albania, which eventually became a mass party, breaking through the PPSH’s destruction, explosions and terror. The DP was founded as a party for the fundamental rights and freedoms of the individual. It put in its program the basic principles of the “rule of law,” fundamental human freedoms and political pluralism. Its program was widely endorsed, but the great popular support it enjoyed and the breadth and generality of the community that signed up to it made the systematic, anti-democratic methods used by the PPSH against it fall upon us like a shower of arrests and imprisonment. To curb its growth in the country and society, the PPSH used brutal violence, sought to kill, and mobilized all the hostility of the passive countries to ensure the party’s victory on 31 March.

old. In the legislative sphere the gap was very great, and therefore the Albanian parliament actively undertook to approve legislation based entirely on the principles of the Helsinki Final Act and the UN Charter. The major objectives of the new state are the establishment of democratic institutions, the construction of a market economy, the rule of law, and full respect for the rights and freedoms of the individual. I. Freedom of thought and expression. Today in Albania no one is persecuted for their ideas; there is an independent press and a free press, dozens of private newspapers. The truth is that the press is inaccurate in thousands of cases, and there are even slanders, insults and unfounded accusations. This discord and this phenomenon harm the press itself, because studies show that many people no longer trust it. There is no press law; some are calling for a different framework. But I believe this situation is temporary. It seems to me like a catharsis, during which people’s psychology, phraseology, terminology, thought and, why not, concepts are being cleansed of the old and replaced with new ones, and this has begun to happen. II. Freedom of religion. In Albania, as in no other country in the world, three main religions and many religious sects coexist in complete harmony. This is an old Albanian tradition that continues to develop. It expresses the great tolerance of Albanian society and is a great cultural asset. I believe that through this we offer Europe and all humanity a precious spiritual message. III. Freedom of assembly and association. A large number of parties and organizations have been created and continue to be created, and they constitute a broad spectrum of Albanian pluralism. Everyone is free to create a party, join a party, change parties or remain outside them. IV. Freedom of private property. The privatization of the centralized and collectivist economy is the main pillar of our economic reform. In the political sphere, instead of forming a one-party government, which the election results would have fully allowed, we preferred a coalition government, in which 35 percent of its members belong to the PSD, PR and free and independent intellectuals. The choice of the basis of power for the government in question reflected respect for pluralism and made it possible to involve capable and qualified intellectuals of different political affiliations in the new state administration, which underwent profound reform. Also, to establish democratic local government throughout the country, we decided to hold local elections, which coincided with the start of economic reform. The elections could have been postponed, but a pyramid of power with central authorities chosen by free vote and local authorities appointed would have resembled a body that was crippled and always bent over, dividing society. Starting the reform would deepen agricultural differentiation and the roots of the Albanian economy’s crisis. Under these circumstances we decided to begin the reform and hold the elections as well. We accepted losing a percentage of votes as a consequence of the unpopular effects of the reform, but democracy won again this time, because both central and local government had now been elected by free vote. On 26 July, the heads of communes and municipalities were elected. In fact, the models of communes and municipalities in Albania are new, but they are democratic institutions. In the economic sphere we are carrying out deep and radical economic reform as the necessary path to replacing the centralized economy with a market economy. The Albanian government, in cooperation with the IMF, drew up a program that provides for economic measures affecting almost every structure of its life. In this sphere, [text unclear] and other countries in the world. The Albanian government is also supported in its reform by the European Bank for Reconstruction and Development and the World Bank. These institutions are committed to helping Albania and supporting reform policies. Although in these areas we will soon develop the appropriate experience. As regards the situation and action, aware that deep and radical economic reform is the necessary path to replacing the centralized economy with a market economy, the Albanian government, in cooperation with the IMF, drew up a program providing for economic measures that affect nearly every structure of its life. We endeavored to raise the standard of living through price liberalization, tax measures, etc. But we began the reform under conditions in which the country had [text unclear]. Although it was known that the Albanian economy, because of old technology, a lack of raw materials and underuse of production lines, was operating at 80 percent [text unclear], inflation rose by 15 percent a month, and private property [text unclear] within a month. Two to four hours of work by a worker in Western countries [text unclear]. But the government’s economic program has been highly valued and has received the attention of the IMF, EC, G-24, the United States and democratic countries and institutions in Europe. It is rigorous and unpopular; it lowers the standard of living and increases unemployment, but we are determined to implement it in full. Therefore, I signed the Stand-by Agreement with the IMF, and we will implement it rigorously, despite the sacrifices it entails. I want to emphasize that its success depends, of course, first on the work of Albanians, but it cannot be achieved without assistance from the IMF, the World Bank, the EC, the G-24 and friends everywhere in the world. I hope and believe that Germany as a whole and Bavaria in particular will help us more in the future. The main pillars of our economic reform are: a - controlling inflation, which was rising by 15 percent a month. To this end, we moved from a fixed exchange rate to a floating one and liberalized interest rates. These and several other measures caused the monthly inflation rate to fall over three months to ... percent. b - To restore incentives for production, we liberalized the vast majority of prices for agricultural and industrial products. Price liberalization and the control of inflation that we are carrying out have produced the first positive signs: production increased in the overwhelming majority of enterprises, its decline was halted, and a slight increase has begun. c - Privatization, the main pillar of our economic reform. This process is decisive for the success of the reform, the dismantling of the old state’s economic structure and old forms of centralized management, the creation of new owners, the privatization of small enterprises, the liberation of individuals and businesses from the collectivist, anti-capitalist mentality, and the rapid acceptance of investors. To this end, the government has undertaken a large-scale privatization program. So far, about 85 percent of Albania’s land has been privatized; in the coming days parliament will promote the law for the full privatization of housing. This process will soon also be applied to transport, trade, industry and production. I can tell you that the private sector in Albania is not developing slowly: it is now responsible for around 45 percent of Albanian imports and exports, and I believe it will grow directly as well. But a major difficulty for us is the lack of financial resources to carry it out quickly. d - Foreign investment. Being located in a high-risk area, the deep scars of isolation, and the lack of developed experience in this field are factors that discourage it. Nevertheless, we believe Albania offers great opportunities for foreign investment: social peace, hardworking and strong people who are hospitable and respectful, and a satisfactory level of education and skills. The country itself also has abundant natural resources, and the new investment legislation is quite liberal. I assure you that no one will lose money invested in Albania. d - Culture. Post-communist society must develop and learn democracy, and in this process the development of culture as a whole, and democratic culture in particular, is of great importance. Although it was the first to resist dictatorships, culture suffered profound upheavals in post-communist society, but its liberation and development are fundamental to the development of democracy in a country. Post-dictatorial society is full of [text unclear], psychology, practices and [text unclear], whose antidote lies in the normative values of the human spirit, which, like DNA, can and must be preserved, along with its strands: the positive values created over millennia. In conclusion, in its seven months, the democratic government in Albania has ensured a secure beginning and some positive first steps: democratic institutions are being established, public order and peace have been stabilized, economic reform has begun, cultural life has started to revive, and, most importantly, it seems that what is passing through the minds of Albanians—the core of confidence in reform—is growing. All that I have said confirms that we are at the beginning and that these few achievements, modest perhaps, are encouraging for the path of democracy, which is truly difficult, but once you travel it [text unclear]. Ladies and Gentlemen, The difficulties we are experiencing in Albania on our road toward Europe are truly great. But an even greater danger threatens the new Albanian democracy: [text unclear] Albania and the Albanian people as a whole. This is the danger of entanglement with Europe’s last dictatorship, the Milosheviç dictatorship, which, as it seems, is determined to pursue a Balkan war, just as in the past, in order to realize Greater Serbia. The entire conflict in Yugoslavia has had and still has as its principal cause the policy adopted by Milosheviç for resolving the national question through the ethnic cleansing of that people. In these circumstances, the denial of human rights and the dispossession of two million Albanians living in their ancient lands are to be expected. The dramatic developments in Bosnia are extremely tragic. (Continued on page 4) 1

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