The greatest objective for the coming year should be mass privatization
Press conference of the President of the Republic, Mr. Sali Berisha
Yesterday morning, the President of the Republic of Albania, Mr. Sali Berisha, held a press conference for journalists. At the outset, the President said that he was open to answering any questions from journalists.
Antoneta Malja (Radio Tirana): Mr. President, how would you assess the balance sheet for 1994 compared with 1993, and what are some of the objectives for 1995?
1994 was another year for Albania in democracy, a year undoubtedly marked by difficulties, but a year of serious achievements. I can say that 1994 marks a consistent growth and consolidation of Albania’s role, the consolidation of democracy in Albania, and of the market economy. During this year, politically, the activities of the Albanian government and of Albania as a whole have been more intensive than at any other time in its history. If we refer here only to Albania’s cooperation with Europe’s great powers—with Germany, Italy, Great Britain, France and the USA—in 1994 this cooperation reached a level it had never reached before. A series of agreements were signed, and a series of visits were exchanged with these countries. The treaty of friendship with France was signed, an event of great importance in the history of Albania’s relations with this country, which is one of the principal pillars of the European Union and democracy. Relations with Great Britain have reached an entirely different level. Relations with Germany have had and continue to have their own priority, within the framework of European cooperation and cooperation with many other friendly countries on other continents.
1994 was undoubtedly a year of consolidating democracy and the market economy. Albania is, and for many years will remain, Europe’s poorest country. Accepting this, one also understands the other side: we have faced and will continue to face serious difficulties on the road to building democracy and, in a serious way, a market economy. Let us consider just one major economic aspect: the economic situation in Albania and its economic development, and the lack of infrastructure. Albania is the only country in Europe without adequate infrastructure. Renewing this infrastructure means, among other things, a 70–80% increase in savings in 1994 compared with 1993. Foreign investment in Albania this year has increased threefold or more compared with 1993. I think we would truly serve democracy if, alongside the criticism of democracy that we encounter—the legitimate and necessary criticism of those in power, of governance and of the government (and this will remain a constant function of the free and independent press)—you also reported these things, because macroeconomic concepts are not very clear to the general public. Take inflation. We come from a history in which we had no inflation for 50 years. But if there is any factor that kills hope and the prospects for free initiative, whether that of businesspeople or employees, then, for the coming year, I would say it should be mass privatization. During 1994, around 2,500 medium-sized and small enterprises were privatized, with a value many times greater than that of the facilities and enterprises privatized in 1993. But let us be realistic: the pace could and should have been faster. Therefore, the distribution of vouchers and the commitment to mass privatization should, in my view, be among the most important objectives for the coming year. Another very important objective should be, in foreign policy, Albania’s integration into Europe, into international structures and institutions, and regional cooperation. In the field of legislation, I have always been in favor of it, and implementing the Constitution and the laws should be another major objective.
The continued expansion of the scope for free initiative: the state must use every mechanism to facilitate, encourage and expand the space available to individuals and free initiative. I think that, in this regard, in addition to privatization, some other changes in agriculture would also help. This is not only about subsidies; I believe the time has come for Parliament to pass a law granting farmers title to the land they have been given on farms. There is no reason for the state to remain the owner of hundreds of thousands of hectares of land. This would have a positive effect on these farmers. It would also link their interests more closely to the land. I therefore hope that Parliament will consider this very important measure next year.
A.M.: Throughout this entire macroeconomic period, the values of democracy in Albania and the institutions of the Albanian state have also been significantly consolidated. Reform in the legislative field has been extraordinarily important and remains one of the priority areas. Through intensive work, Parliament has managed to replace dozens of old laws with new ones, fill the major legislative gap we inherited, and approve the Civil Code and the Criminal Code, after these days, in the coming month. Thus, there have also been very important achievements in the legislative field. We may ask: are there shortcomings here? Yes, there are certainly shortcomings. The legal possibilities are as they are. Although many laws have been adopted, it cannot be said that the same results have been achieved in implementing them. Therefore, in the field of privatization too, for the coming year I would say the objective be another major objective.
Xh.Sh.: I want to return to the issue of the Constitution. Nearly two months have passed since the referendum, but no step forward has been taken so far. Some opposition parties have taken the initiative to present a draft without the PD, which has little chance, at least since the PD has a majority in Parliament. Can the President of the Republic bring about a new situation on this issue?
Regarding the Constitution, I do not think that nothing has been done. There are no concrete results yet, but there have been many discussions. They agreed to establish a parliamentary commission; the PD accepted the answers presented at this meeting and accepted the way the parliamentary commission would proceed. Here in front of you, I … and the PD …
Regarding whether the democratic government is capable of governing the country, I think the PD is fully capable of governing the country until the elections. Naturally, what you have said does not at all exclude, nor will it exclude, the PD’s right to seek alliances and to re-establish the alliances this party has identified. I think the PD remains open at all times. The alliance between the PD and the parties with which it has been allied has not been broken. There is a tendency toward a coalition in government, but only at the central level, not at every level. In fact, cooperation also exists with the other parties, and this cooperation can be expanded. I am, and have always been, in favor of broadening the base, especially given that the PD has the parliamentary power necessary to govern the country. in front of you, I … and the PD … country. laws should be another major objective. in front of you, I … and the PD … in front of you, I … and the PD … country. in front of you, I … and the PD … country.
Ultimately, with the Constitution, let us leave it with constitutional provisions. I see no principled obstacle as long as a very broad compromise is offered. And, on the other hand, if we interpret the results of the referendum, I think their most important message is compromise. The referendum showed that a compromise must be reached on the Constitution. The people asked for a different draft from the one that had been put forward. The alliance has not been broken; there is a compromise. Neither side should exclude the other; in particular, the main political forces cannot exclude one another on the issue of the Constitution. They have made a proposal for the Constitution to be approved by 50% in Parliament. The Constitution cannot be approved by 50% of Parliament, because nowhere is a 50% approval threshold used for constitutions. A compromise can be reached on all the points beforehand, it can go to a referendum by mutual consensus, and then be ratified in Parliament; that is normal. In any case, I think a compromise will be reached.
Briseida Mema (AFP): Mr. President, you have spoken several times about the fight against corruption, whereas from the … below it seems that this fight remains only an object of partisan attacks. Meanwhile, corruption and illegal trafficking continue to claim people’s lives. The political parties continue to quarrel. The role of the state is still not being felt strongly. Do you think this is in the people’s interest?
Corruption is one of the bitterest legacies that it inherited…
… immigration with France, relations with this country, which is one of the main pillars of the European Union and democracy. Relations have reached an entirely different level with Great Britain. own priority; in this context I emphasize the exchanged visits and the great assistance Germany has given Albania. Relations with Italy also have their own priority. Relations with the USA have seen very important concrete developments; cooperation with the USA in the fields of defense and security has been especially fruitful, as have our joint participation in maneuvers and concrete actions. Thus, in this respect, Albania’s political activity has been more intensive than ever before.
1994 undoubtedly marks an unprecedented success and achievement for Albania in its regional policy as well. During this year, visits and meetings at the highest level took place with Turkey, Bulgaria, Romania, Croatia and Macedonia. Thus, overall, the Balkan countries signed treaties and agreements which from time to time provide a new basis for our cooperation with these countries. Albania has not confined its activity to the major countries or to the countries of the region. Albania has conducted political activity and close political cooperation with many other countries in Europe and the world, including China, Japan, Malaysia, Switzerland, Denmark, the Netherlands, Sweden, Austria, Pakistan, Slovenia, Austria, and others. These are a series of countries with which cooperation has reached a new level, and all of this has served and continues to serve the opening and integration of our country, as well as security and stability in the region. Albania’s cooperation with international organizations and other important international institutions has also reached a new level. An important achievement was made, just as significant steps were taken in cooperation with the Council of Europe, the European Union, NATO and a range of European bodies, and in Albanian political and diplomatic efforts for cooperation processes and efforts concerning Kosovo. Also, at the end of the year, a final amnesty was granted by the United Nations presidency. This is an important event for the region as a whole and for the country’s development. A review of 1994 has highlighted activities…
… For Albania to have a different road network, a different telephone network, a different water-supply network, a different communications network and a different electricity-supply network would require the reinvestment of dollars. Replacing these systems is becoming increasingly imperative. In fact, five years ago our roads were sufficient for the 10,000 or 15,000 vehicles circulating throughout Albania. Today, a single road in a particular area carries as much traffic as all of Albania did. Our telephone calls, to the extent that calls to the outside world were permitted, were also adequately served; likewise, the electricity network was sufficient for lighting—thus, with that network, Albania could be illuminated—but absolutely not for cooking or heating, as is well known. The development of the market economy is therefore bringing to light, month after month, how far our infrastructure falls below standards. The lack of infrastructure is not the only thing confronting Albania with difficulties; there is also the technology inherited. It was not merely 10–15 years obsolete; in practice it has been putting things out of operation and has created unemployment. This is a serious problem. Nevertheless, we must describe reality as it is. Alongside these difficulties, Albania continues to have the most dynamic macroeconomic indicators compared with Eastern Europe and other Eastern European countries, and I consider this an important contemporary achievement. Macroeconomic stability and macroeconomic policy for consolidation constitute, in my opinion, one of the most important achievements in our history of development. We are the poorest country, a country with many difficulties, but at the same time this year we are achieving GDP growth of 8%, and inflation is lower than we forecast at the beginning of January. I think these figures indicate macroeconomic stabilization. Exports have increased by 30%, although, when we take them as a whole, they remain almost at their previous levels, with an entirely inadequate increase. Customs revenues, on the other hand, have increased by 50%, and this is connected with the positive use…
The question for anyone is inflation. For Albania to bring inflation under control—from 400% two years ago to 18 or 16 percent this year—I think is an extraordinarily important achievement. The truth is that positive trends in the economy and control of inflation are guaranteed to continue into next year. We say GDP has grown by 8%, but in reality the growth is greater. Why? Growth is greater because we only calculate what is reported by those who pay insurance; approximately 40 or 50% of construction in Albania takes place in the countryside, for which no statistics exist, in addition to other activities not reflected in statistics. Thus, this year’s economic growth has created all the conditions for continued economic growth. I think that, thanks to the macroeconomic stability achieved and consolidated, and still being consolidated, if we manage to establish an export-oriented regime and accelerate privatization, Albania will ultimately be placed on a rapid development path, which will be extraordinarily important for the country. The government has a duty to create these conditions, because Albanians engaged in free enterprise are extraordinarily strong individuals: they have endurance, imagination, inventiveness, strength and integrity—they have everything. In practice, if we look at its scope, it is a space that keeps growing. So we can ask: could more have been done? Yes. Definitely yes. In particular, I would emphasize the zeal and determination that should have been shown in making investments for the development and improvement of infrastructure and sectors in general, and in using monetary resources. I have great respect for all the activities of our financial institutions, but the state of the banking system is unacceptable. Today there are very large cash deposits in Albania which, due to the lack of a developed and efficient banking system, cannot be invested or circulated.
Alongside the consolidation of economic stability, there must be an undisputed, obligatory political rule linking it to economic development. And the greatest objective…
… which I would say should be one of the major priorities for the coming year is the enforcement of the laws. There can be no democracy without the enforcement of laws, and no rule of law without laws being enforced. This is a period, a continuing …; it is a period, and the laws? … that Albanians and the Albanian people address this issue with the same commitment as they addressed the development of democracy and the referendums, whether they lost or won.
The referendums, whether they lost or won. And I say this is one of the important issues at the heart of democracy and of democracy in a country. After the referendum there were also some misunderstandings. Some took the referendum as a pretext to create this Albanian government … in making investments for the development and use of and effective linking it to economic development. And the greatest objective…
Regarding the status of RTV. I think the time has come for its status to change in two ways. First, I want to express my appreciation for all the work done by the journalists … privatization … the distribution of vouchers and the most important objectives … integration into Europe, into international institutions, and regional cooperation. In the field of legislation, the serious commitment of the political forces to giving the country a Constitution and implementing the laws should be other major objectives. state should use all the mechanisms and free initiative. I think that, in this direction, the initial efforts would also be served by some other interventions in agriculture. has come for Parliament to grant by law the land it has given to farmers on farms. privatization … the distribution of vouchers and the most important objectives … laws should be other major objectives. state should use all the mechanisms in agriculture. it has given to farmers on farms.
Television should have public status. This should be the first step, and I also think there should be private media. Personally, I am convinced that private initiative should extend into every field without exception. I see no reason why Albanian RTV should remain attached to any institution, not even Parliament. Why should it remain attached to Parliament? The government does not have a newspaper; Parliament does not have a newspaper. Albania has hundreds of newspapers, which provide information very well. I do not understand why television should be dependent on Parliament.
It seems the time has come to study the public-service option, that is, the transition to public mass media. A seminar on this issue was held a few months ago, organized by several foundations. We can also draw on the experience of other countries that have public media, and then enact their law and statute. I say this would be useful. At the same time, it is true that we can and should move forward with private media, because this is a practice that has been proven successful.
Xhevdet Shehu (Voice of America): Mr. President, after the November 6 referendum, the PD remained alone in the governing coalition. Do you think the PD is capable of governing the country until the next elections, or does it need new alliances and coalitions?
I do not know how legitimate the effort to establish a constitutional commission is, because an article in the constitutional provisions dating from 1991 (not 1992) says that these provisions remain in force until the new Constitution of the Republic of Albania is approved, and that it is drafted by a commission appointed by the Albanian Parliament. Thus, the authority to draft the Constitution belongs today, and until it is drafted, only to a commission to be chosen by the Albanian Parliament. Trying to draft a constitution through parliamentary commissions outside Parliament, through commissions that do not have parliamentary legitimacy, seems to me to be a not very serious attempt, an attempt aimed at blocking the Constitution issue … What other initiative has been taken? I will continue to encourage the political forces; I will definitely not give up encouraging them to reach a compromise, because compromise and all the political forces … so that Albania may have a Constitution. Albania does not have (I said a long time ago, does it have two parties, not three?) … This may be difficult to understand. Under this law, it does not appear that Parliament has all the financial resources; indeed, these financial resources will be declared not only by politicians but also by citizens, so that the money can be identified as clean. This law will also be approved soon. As for illegal trafficking, this too is a serious problem. The forces of the Ministry of the Interior may arrange cooperation with the naval fleet and other forces…
… Parliament… (the upper text of the column is cut off at the edge of the image)
Corruption is one of the bitterest tragedies that developed at a galloping pace in the final years of the dictatorship and that, unfortunately, was also carried over into the post-dictatorship period. If we go back 4–5 years, I can say that no Albanian could get a refrigerator or a television without paying a second bill to obtain the authorization, let alone secure a job or something else. Unfortunately, this mentality was carried over—it made the transition into the post-dictatorship period and continues today. Corruption is a serious problem in all democratic societies. It is one of the most troubling problems and must be fought more actively. An effective fight against corruption is achieved by consolidating institutions. I do not conceive of the fight against corruption as an act by one individual or another. The fight against corruption is a struggle carried out through the consolidation of the law and the institutions that deal with combating it. Has Albania fought corruption, and is it fighting it? I think it has, to no small extent. If we refer to the data from the prosecution—which, unfortunately, does not communicate with you as much as it should, and should do so, keeping you regularly informed—I say that the government has made serious efforts to fight corruption, and there are facts and arguments to prove this. Quite a number of people have been punished in all fields; people have been imprisoned and dismissed over this issue. A stricter legal framework is particularly necessary for this purpose. The law on the declaration of politicians’ assets is before Parliament; that, too, is an important part of the picture. Under this law, politicians must declare all their sources of income; indeed, these sources of income will have to so that money can be identified as clean money. This law will also be passed establish cooperation with the naval fleet and other forces as well…
privatization… the distribution of the securities and involvement in mass privatization should, in my opinion, be among the most important objectives… Another very important objective should be, in the area of foreign policy, Albania’s the field of legislation, the political forces’ serious commitment to giving the country a Constitution and enforcing the laws should be other major objectives. The ever-greater expansion of the space for free enterprise: for this, the state should use all the mechanisms at its disposal to promote, support, and expand the scope for individuals and free enterprise. I think that, in this direction, initial efforts would also be served by some further interventions in agriculture. This is not only about subsidies; I am of the opinion that the time that it has given to farmers on the farms.