Albania in Crisis: The Predictable Fall of the Shining Star

Product Description At the beginning of the 1990's the first encouraging results on GDP growth combined with the fulfillment of international requirements led many to believe that Albania was a 'shining star' in Central and Eastern Europe. But in 1997 this progress was reversed by unprecedented institutional, political and social turmoil leading to a spiral of violence and chaos. This book presents, for the first time, a comprehensive analysis of the different factors behind the 1997 political, economic and social upheaval in Albania. It shows that the crisis was both predictable and complex, and not simply a matter of a disgruntled population attempting to regain their money. Using extensive and detailed evidence, Daniel Vaughan-Whitehead identifies the major reasons for the growing discontent and final explosion: the increase in unemployment, collapse of industrial production, inefficiency of the banking system, limitations and drawbacks of foreign investment, failure of mass privatization, falling living standards, and rising poverty. He examines the consequences of the crisis at the enterprise level, by region, sector, industry and property form using a unique survey of over 1,000 enterprises. In conclusion he offers a series of policy recommendations with a view to regenerating production while avoiding a new social explosion in a destroyed economy, weakened by political instability and the conflict in Kosovo. This unique book will be essential reading for all academics working in the area of transition as well as policy makers from international organizations involved in transition economies. Review '...this is far and away the finest book on the Albanian economy in the 1990s to have appeared thus far.' -- - Adi Schnytzer, Slavic Review, Vol. 59, No. 2, Summer 2000'Albania in Crisis will be of great interest not only to those international organizations and experts working on the reconstruction of Albania, but also to other policymakers in the region, and to anybody with a professional, academic or general interest in the "transition".' -- Elizabeth Goodson, International Labour Review'One of the most comprehensive economic analyses on Albania. Based on personal experience, Daniel Vaughan-Whitehead's book is an excellent alternative approach to the Albanian 1997 crisis explanation. It represents a deep insight into the social problems of a poor but still promising country. Surveys and the enormous work with data are a great help in designing sustainable policies for recovery and growth . . . it will be an excellent addition to the scarce literature on Albania.' -- Marta Muo, Head of Governor's Office, Bank of Albania, Albania...a comprehensive and timely overview of one of the least known and least understood of the transition economies, Albania. -- - Peter Sanfey, Journal of Comparative Economics About the Author Senior Advisor, Central and Eastern European Team, International Labour Office, Budapest, Hungary