(10 questions and answers instead of an analysis) 1. What is the market like after two years? To paint a true portrait of the market in Albania, today more than anything else, the simple words of the people who have experienced it firsthand are valuable. How many years have passed, and this reality is characterized as follows: “They started it and finished it with ration cards and coupons.” In contrast to this saying, the speaker holds out his palm: today’s market in Albania, where even “liquid milk” is not lacking, and where, little by little, especially in some shops and markets, it really feels like Europe. In contrast to yesterday’s harsh reality—queues, pleas to the trade unions for authorization, for a refrigerator, a washing machine, a television; fearful efforts to get a “can” for RAI DUE; efforts to keep a run-down shop on its feet, kept standing even as it was falling apart within, its unstable dimensions spreading out—the market today has very familiar names: “Ariston”, “Elco”, “Candy”, “Seleco”, and even cat food “Waskis”. Not only that, but the queues of the past have turned into a very large number of shops, stores, sales outlets and noisy markets. And, to end this “tale” with a bit of humor, I want to remind everyone of a joke told many years ago by People’s Artist Skender Sallaku to one of the former Communist Bloc members. The latter asked him in confidence: “Would you say something funny, Comrade Skender?” “Well, yes,” the artist replied. “Before, the shop sign said ‘BUTCHER’—I went inside and found meat; today it says ‘MEAT’—I go inside and find a butcher.” NO COMMENT! 2. Who created this market? By placing the human being on a pedestal, this first product of democracy, and also of new Western technology, comes “with a 6-month guarantee.” 4. What is national wealth and how does it appear in Albania? National wealth includes all the active resources of a country that sustain the life of its people and their prospects. In this regard, many assets are being acquired in ever greater quantities, especially in areas where private farmers have increased the number of livestock and poultry. The process of regenerating fruit trees and vineyards has begun, as has the beautiful tradition of planting trees along the boundaries of fields and homes. Meanwhile, private real estate assets are growing in the cities, existing properties are being repaired, as are other commercial premises, etc. Most important in the process of growing and increasing national wealth is the tendency to increase it within the country’s borders. 5. How are investments in Albania shaping up? Investments in Albania, both foreign and domestic, have got off to a good start when viewed in relation to the transition period. One characteristic is that while foreign investments in oil are visible and substantial—which is justified by the very nature of the investment and the investor—domestic investments are small compared with foreign ones and often invisible. In this relationship between foreign and domestic investment, what is worth noting is that, regardless of their scale, investments are trending upwards, which is also explained by the nature of Albanian commercial capital and its investment links. While never forgetting that wealth increases day by day, the necessary investments must be made in the most important fields. Clarifying the ambiguities will show that the lack of a legal framework is not a serious obstacle for foreign investors. More than anything else, foreign investment in Albania is hindered by unfamiliarity with Albanian legislation, one-sided propaganda by information agencies in Western European countries, manipulation of information about the tense situation in the Balkans, etc., etc. It is no longer unusual for many foreigners to admit, with surprise, that they have no clear idea about Albania, let alone its legislation. The unknown is frightening, and it justifies every kind of claim, including claims that the necessary legal framework does not exist. 8. What role does the state bureaucracy play today? Today, the state bureaucracy plays a negative role in public opinion regarding the understanding and implementation of the law, but this role is increasingly being curtailed as a result of the transformation of property ownership. Privatization, as a highly important process within the framework of economic reform, creates new conditions not only for limiting the bureaucracy’s sphere of action, but also for institutional reform, bringing ever greater clarity to the concept of the state and the law. Privatization in general and private property in particular are Archimedes’ levers for limiting the negative effects of the state bureaucracy in the economy. 9. What is the political-economic situation today? The economic reform and the market economy it seeks to establish have, of course, made “Skender?” “Yes, here I am,” the artist had replied “Before, the shop sign read: ‘BUTCHER’—you go in and find meat, whereas today it reads: ‘MEAT’—you go in market? Putting human freedom on a pedestal—as the first product, even of a fragile democracy such as Albania’s—this market was created by free people. The men deserve much gratitude; refugees with their packages should be mentioned in particular, as well as the “hooligans” who crossed the Greek border with their heads in their bags, and the pioneers of the “Malev” route who brought various goods in sacks from the “Polish Market” in Butapest. They eventually established broad trade relations, first with Greece, Macedonia, Bulgaria, Turkey and Romania, and finally with the countries of Western Europe, such as Italy, France, Germany and beyond, creating an “open Albania” and the first Albanian commercial capital. Gradually, it combined with foreign capital, creating the groundwork for the construction market, home repairs and construction, restaurants, hotels, and finally discos and entertainment halls. At the end of this activity, a powerful money-changing business also emerged and developed, competing with state banks even now, apparently demonstrating the expertise that the freedom of a free person brings under the conditions of a free-market economy. Without exaggerating at all, we can say that in building the economy too, Albanians once again distinguished themselves through mass heroism throughout history. 3. Who contributed most to the situation we have today? Without denying the aid of the European Community and other assistance that saved the Albanian people during 1991–1993, the initiative and active contribution of Albanians themselves played, play and will continue to play the leading role, naturally providing many reasons to justify that contribution. Albanian commercial capital could not and cannot be dormant commercial capital. And if we refer to the great English economist Adam Smith on the effects of wealth, then we will understand that freedom and wealth recognize no paternalism. In economics, respect for the one who helped you is expressed by showing how much you benefited from the assistance and how you will repay it. To understand this point properly, let us offer another piece of evidence concerning the financial conclusion reached. In this case, we are speaking of foreign capital: those who invested in Albania and those who had and still have trade relations with Albania. There is no question that, in relation to its contribution, foreign capital benefited more than Albanian capital. To understand this statement more clearly, let us refer to the words of a beer merchant, “Kruna”: “Only from the revenues we earn from everything in Albania, the ‘Kruna’ brewery has bought ... foreign investors and ... the aid of foreign investment and domestic investment, what is worth noting is the relationship between foreign investment and domestic investment, and between the relationship between the relationship between the relationship between foreign investment and domestic investment. [Part of the text between columns is illegible.] ... investing. Without forgetting for a moment that wealth grows every day, it must be said that Albania, with its resources, is a field of promising opportunities for foreign and domestic investors, especially in tourism, where each family has about 70 m² of coastline. Investments to date are more or less the result of all economic and geographical factors, and somewhat less of political ones. 6. What has been the role of the banks, and what should their role be from now on? Although equipped with the necessary legal framework, the banking system is unfortunately still lagging behind the market economy. Apart from the factors that are known to affect this situation in the banking system, the lack of competition in banking has a noticeable impact—in other words, the absence of private banks, which would create a new situation for investment in general and foreign investment in particular. Private banks in Albania will be the “overture” to foreign capital and investment. Also, within the banking system, private banks would be an indicator of the deepening of economic reform. Economic reform in the banking system has addressed only the formal side of banks’ work and role, not their substance. The role of banks, taking into account also the possibility of private banks, will be decisive in the progress of reform and in building a market economy. Starting in 1994, the role of banks will no longer be that of giant cashboxes, but that of powerful driving forces in the field of investment. Banks are now expected to move to the forefront of economic reform. To understand the modern role of banks in Albania, let us briefly recall bank lending and its sophisticated problems. 7. Are claims that Albania lacks the necessary legal framework justified? To give an accurate answer about whether the necessary legal framework exists in Albania, it is not enough to mention that we have a law promoting foreign investment, attractive tax legislation for foreign investment, underground and surface resources, etc., all of which are truly significant and convincing to everyone. The issue here is that some changes are needed to what has been envisaged so far. First, the existing order in Albania must not be forgotten, the fruit of the work of Albanians and foreign investors. ... 9. What is the political-economic relationship today? The economic reform and the market economy it aims for have, naturally, also brought about major upheavals in the political-economic relationship. But, without forgetting the 50 years when politics ruled over the economy, it is clear that the political-economic relationship has still not been overturned as it should be. The bitter fact of those 50 years, when, for the interests of one party, national interests were sacrificed, also clearly shows today the reasons that led some people to oppose reform. The attitude toward economic reform is the fundamental feature of the political-economic relationship. Spain’s experience, recommended today by the most distinguished international specialists to countries in transition to a market economy, shows how political parties reached a consensus and agreed to place national interests above party interests—that is, to prioritize economic reform—which brought Spain into the fold of a united Europe. 10. Why does Albania have better indicators than other Eastern European countries in the progress of economic reform? Nowhere else, as in Albania, was human freedom and initiative restricted. And if the concept of human freedom is very broad in its scope and in the academic disciplines that deal with it, we must not forget that private initiative is also part of this freedom. And why would it take a great deal of commentary to show what a farmer who owns his land can do today, when years ago he was not even allowed to keep a chicken, when the grain shop seemed like a luxury, and when a merchant was a kind of spiritually tormented person, allowed to keep a sheep; or a goat or a lamb, a pig or a sow? Albanians, whose private initiative had been restricted and stifled, had one more reason than others to exercise their freedom in every sphere, especially against a background of painful poverty. There is no doubt that private initiative, one of the most powerful tools of human freedom—its very engine—will advance reform, the market and human freedom itself. That is why private initiative needs room to operate freely in every area of the economy. Even those who denied private initiative yesterday enjoy it today. And that is no small thing. It is the result of economic reform, which is giving life to human freedom. KASEM SERENI Economist

TIRANA—The powerful German company “SIEMENS”, which is in a joint venture with another Austrian company, will carry out the reconstruction of Rinas Airport. It was announced some time ago as the winner of the tender organized by the Ministry of Transport, in which around 15 foreign companies took part. The Director of Civil Aviation at the Ministry of Transport, Perparim Zuna, told ATSH that the contract with the German company will be finalized by 15 January and work may begin in March. Implementation of the project, which will be divided into two phases, will take 21 months and will include reconstruction of Rinas’s navigation systems. The first phase is an emergency phase, to meet the airport’s technical safety standards, while the second will further expand it in order to achieve international standards. The airport’s current condition leaves much to be desired from a technical point of view. At present, aircraft weighing over 150 tons cannot land on Rinas’s runways. Successful implementation of the project will allow all types of aircraft to land at Rinas Airport without any restrictions.

Ninety-seven percent of homes throughout the country have been privatized. Specialists from the Ministry of Construction told ATSH that the privatization of housing had been the Ministry’s main activity following the approval of the relevant law at the end of 1992. Revenue from this sector has increased, but in this sector through the National Housing Agency, which was established in January 1993 by a decision of the Council of Ministers to direct housing policy in our country. Loans obtained from our banks financed 4,000 apartments, while financing from the World Bank amounting to 15 million dollars was secured for around 4,500 other apartments in progress. The other shortfall for housing under construction was financed with the revenues collected from privatization, and construction of new homes began at the same time. The housing privatization law, together with the other acts accompanying it, made it possible to create a housing market within this year, as well as the opportunity for private investors, domestic and foreign, to build homes—something that, according to specialists from this Ministry, has helped improve the population’s housing situation.

—Besides firewood, 4,500 tons of coal contracted from Follorina will also be distributed— KORÇE—Two cubic meters of firewood have already been distributed to each Korçë family, and this month another cubic meter will be added to that amount. To better meet the population’s demand for fuel, the district council and the city municipality took measures in good time, concluding a contract for 4,500 tons of coal with the “Bilonjit” mine in Follorina (Greece). The import of the first shipment of 1,500 tons of coal began several days ago. The municipal section of the district council has organized the work so that this quantity will be distributed immediately to consumers.

—Is AD a party or not? The “elite of politicians” has made nothing but political blunders I would not want this article to take the form of a reply to A. Imam[in], but, having read his statement in “KJ”, I cannot help writing a few words to him (which I could also have said to him in a conversation over a table). “AD will come to power in the next elections,” Imami declares. I am sorry, but I must tell A. Imami that this is merely an unrealistic statement. One of PAD’s misfortunes is that almost all its leaders suffer from megalomania and mythomania; indeed, I think AD is the result of these obsessions. In a democracy, the formation of new parties is normal, as is the emergence of differences between groups with different ideas within a party on one issue or another—differences that can even lead to a split if they deepen. In this respect, AD too could be viewed as something normal. But, in my opinion, the truth about AD is quite different. I would like to ask A. Imami a question as a friend. Would you have left PD if you had been elected speaker of parliament? We fear not, and I am convinced that the reason those who formed AD left PD was precisely that they were not given the posts. I also want to remind A. Imami of something. Without wishing to present myself as a prophet, I will remind him that one day, in one of PD’s offices, I warned them not to leave PD because they would be utterly lost. If PD had mistakes and problems, as they claimed, these could have been resolved internally; by splitting away, the only ones who stood to gain were PD’s opponents. And what about AD? When they split from PD, megalomania led AD’s founders to speak of an “intellectual elite”, a “high-quality party” that would challenge PD, and so on. From Imami’s statement, or that of some other AD leader who says they will win 70 percent in the next elections, it seems that megalomania and mythomania have reached their peak in their minds. Anyone with their feet on the ground would ask a different question: Is AD a political party or not? I do not know how many members AD has, but, judging by their statements, there must be about 5,000. What I do know is that many of those who signed the first 300 signatures for AD have grown tired of it, and some of them have even returned to PD. AD’s leadership never manages to ... [part of the column partly illegible]. As for the “elite of politicians”, one or two figures in AD can be said to be quite well known in Albanian politics, but the real fact is that the two main political moves AD has made have been two political blunders. The first was voting against the law on Fundamental Human Rights, something even the socialists did not do; the second was going to Belgrade. AD’s leaders may ... They may try to justify the latter, but facts are facts. AD’s megalomaniacs considered the reaction to this visit a lack of political vision, conservatism, but this time too the AD leaders’ lack of foresight stood out. Our propaganda made it clear that Miloshevici would exploit AD’s delegation visit to Belgrade to show that Serbia was engaged in peace talks, that it was seeking a solution, even though it is known—and has been proven—that Serbian chauvinists know only the path of violence. AD’s leaders rejected the above, but the facts once again proved that PD was right. Miloshevici’s PS representative declared that they were for peace, but “Rugova does not engage in dialogue with us...” and political parties from Albania are coming. It could not be clearer whom the Belgrade visit serves. I do not know how AD will come to power, but I do know that it is more plausible that, two years from now, another party will have emerged from AD, leaving AD with 10 percent in the next elections. Perhaps AD’s leaders have envisaged an alliance with PS, but even in that case, power would remain far away. If AD’s leaders truly dream of power, they would do well to be more realistic and understand that no one can come to power by opposing democracy. EDI PALOKA Caricature at the top of the article; the signs read “THE FUTURE ...”, “PS”, “PD”, “Nationalism”.

The number of people employed in the private sector is increasing Shkoder—The number of people employed in the private sector in the Shkoder district rose considerably during the year that has just ended. According to data from the statistics office, this number reached 6,000 employees in 2,800 private firms. However, the number is thought to be even higher, around 10,000 people employed in this sector, including those engaged in daily itinerant trading in the city and the countryside, as well as people employed by private firms who are not registered with the tax office and tax authorities. The most notable growth among branches of the private sector during ’93 was seen especially in trade, construction and services.

NATIONAL LIBRARY TIRANA