Part 7

Independence: 28 November 1912 (from Ottoman Empire)

National holiday: Independence Day, 28 November (1912)

Constitution: an interim basic law was approved by the People's Assembly on 29 April 1991; a draft constitution was rejected by popular referendum in the fall of 1994 and a new draft is pending

Legal system: has not accepted compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal and compulsory

Executive branch: chief of state: President of the Republic Sali BERISHA (since 9 April 1992) was elected for a five-year term by the People's Assembly head of government: Prime Minister of the Council of Ministers Aleksander Gabriel MEKSI (since 10 April 1992) was appointed by the president cabinet: Council of Ministers was appointed by the president

Legislative branch: unicameral People's Assembly (Kuvendi Popullor): elections last held 22 March 1992; results - DP 62.29%, ASP 25.57%, SDP 4.33%, RP 3.15%, UHP 2.92%, other 1.74%; seats - (140 total) DP 92, ASP 38, SDP 7, RP 1, UHP 2 note: six members of the Democratic Party defected, making the present seating in the Assembly DP 86, ASP 38, SDP 7, DAP 6, RP 1, UHP 2

Judicial branch: Supreme Court, chairman of the Supreme Court is elected by the People's Assembly

Political parties and leaders: there are at least 28 political parties; most prominent are the Albanian Socialist Party (ASP; formerly the Albania Workers Party), Fatos NANO, first secretary; Democratic Party (DP); Albanian Republican Party (RP), Sabri GODO; Omonia (Greek minority party), Sotir QIRJAZATI, first secretary; Social Democratic Party (SDP), Skender GJINUSHI; Democratic Alliance Party (DAP), Neritan CEKA, chairman; Unity for Human Rights Party (UHP), Vasil MELO, chairman; Ecology Party (EP), Namik HOTI, chairman

International organization participation: BSEC, CCC, CE, EBRD, ECE, EU (applicant), FAO, IAEA, IBRD, ICAO, ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Intelsat (nonsignatory user), Interpol, IOC, IOM, ISO, ITU, NACC, OIC, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UNOMIG, UPU, WFTU, WHO, WIPO, WMO, WToO, WTrO (applicant)

Diplomatic representation in US: chief of mission: Ambassador Lublin DILJA chancery: Suite 1000, 1511 K Street NW, Washington, DC 20005 telephone: (202) 223-4942, 8187 FAX: (202) 628-7342

US diplomatic representation: chief of mission: Ambassador Joseph E. LAKE embassy: Rruga E. Labinoti 103, Tirane mailing address: PSC 59, Box 100 (A), APO AE 09624 telephone: (42) 328-75, 335-20 FAX: (42) 322-22

Flag: red with a black two-headed eagle in the center

Economy -------

Economic overview: An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. The economy rebounded in 1993-95 after a severe depression accompanying the collapse of the previous centrally planned system in 1990 and 1991. Stabilization policies - including a strict monetary policy, public sector layoffs, and reduced social services - have improved the government's fiscal situation and reduced inflation. The recovery has been spurred by the remittances of some 20% of the labor force which works abroad, mostly in Greece and Italy. These remittances supplement GDP and help offset the large foreign trade deficit. Foreign assistance and humanitarian aid also supported the recovery. Most agricultural land was privatized in 1992, substantially improving peasant incomes. Albania's industrial sector ended its five-year, 78% decline in 1995, recording roughly 6% growth. A sharp fall in chromium prices has reduced hard currency receipts from the mining sector. Large segments of the population, especially those living in urban areas, continue to depend on humanitarian aid to meet basic food requirements. Unemployment remains a severe problem accounting for approximately one-fifth of the work force. Now that sanctions on Serbia have been suspended, the falloff in hard currency earnings from smuggling will aggravate unemployment problems. Growth is expected to continue in 1996, but could falter if workers' remittances from Greece are reduced or foreign assistance declines.

GDP: purchasing power parity - $4.1 billion (1995 est.)

GDP real growth rate: 6% (1995 est.)

GDP per capita: $1,210 (1995 est.)

GDP composition by sector: agriculture: 55% industry: NA% services: NA% (1995 est.)

Inflation rate (consumer prices): 16% (1994 est.)

Labor force: 1.692 million (1994 est.) (including 352,000 emigrant workers and 261,000 domestically unemployed) by occupation (of those domestically employed): agriculture (nearly all private) 49.5%, private sector 22.2%, state (nonfarm) sector 28.3% (including state-owned industry 7.8%)

Unemployment rate: 19% (1994 est.)

Budget: revenues: $486.3 million expenditures: $550.4 million, including capital expenditures of $124 million (1994)

Industries: food processing, textiles and clothing; lumber, oil, cement, chemicals, mining, basic metals, hydropower

Industrial production growth rate: 6% (1995 est.)

Electricity: capacity: 1,662,000 kW production: 3.9 billion kWh consumption per capita: 1,219 kWh (1994 est.)

Agriculture: wide range of temperate-zone crops and livestock

Illicit drugs: transshipment point for Southwest Asian heroin transiting the Balkan route and cocaine from South America destined for Western Europe; limited opium production