In 1990 Albania ended 44 years of xenophobic communist rule and established a multiparty democracy. The transition has proven difficult as corrupt governments have tried to deal with high unemployment, a dilapidated infrastructure, widespread gangsterism, and disruptive political opponents. International observers judged local elections in 2001 to be acceptable and a step toward democratic development, but identified serious deficiencies which should be addressed through reforms in the Albanian electoral code.

GEOGRAPHY
Albania shares a border with Greece to the south/southeast, Macedonia to the east and Yugoslavia and Kosovo to the north. Eastern Albania lies along the Adriatic and Ionian Sea coastlines. Albania's primary seaport is Durres, which handles 90% of Albania's maritime cargo.

HISTORY
Many scholars believe the Albanian people are the direct descendants of a group of tribes known as the Illyrians, who arrived in the Balkans around 2000 BC. After falling to Roman authority in 165 BC, modern-day Albania remained under the control of various foreign powers until the dawning of the 20th century.

Although Albania has made strides toward democratic reform and maintaining the rule of law, serious deficiencies in the electoral code remain to be addressed, as demonstrated in the June 2001 parliamentary elections. International observers judged the 2001 elections to be acceptable, but the Union for Victory Coalition, the second-largest vote recipient, disputed the results and boycotted parliament until January 31, 2002. The Socialists re-elected Ilir Meta as Prime Minister in August 2001, a post which he held till February 2002, when he resigned due to party infighting. Pandeli Majko was re-elected Prime Minister in February 2002.

ECONOMY
Albania's transformation from a centrally planned economy to a market orientated system began in earnest in early 1992 after real GDP fell over 50% from its peak in 1989. The democratically elected government that assumed office in April 1992 launched an ambitious economic reform program meant to halt economic deterioration and put the country on the path toward a market economy. Key elements included price and exchange system liberalization, fiscal consolidation, monetary restraint, and a firm income policy. These were complemented by a comprehensive package of structural reforms including privatization, enterprise and financial sector reform, and creation of the legal framework for a market economy and private sector activity.

U.S.-ALBANIAN RELATIONS
The U.S. closed its mission to Albania in 1946 after relations began to sour under the Hoxha regime but reopened the embassy in 1990. Since re-establishing ties, the U.S. has committed more than $300 million to Albania's humanitarian needs and economic and political transformation. In 1999, the U.S. provided $30 million through the Support for East European Democracy (SEED) Act. In the proceeding 2 years, the U.S. gave approximately $66 million to Albania under the SEED program. The $30-million Albanian-American Enterprise Fund (AAEF), launched in 1994, is actively making debt and equity investments in local businesses. Also, a bilateral investment treaty between the U.S. and Albania was signed in 1995 and entered into force January 3, 1998.

Full country name: Republic of Albania
Area: 27,748 sq km (10,822 sq mi)
Population: 3.5 million
Capital city: Tirana (pop: 400,000)
People: Albanians, with Greek, Vlach, Macedonian and Gypsy minorities
Religion: Sunni Muslim (70%), Albanian Orthodox (20%), Roman Catholic (10%)
Government: Republic
Head of State: President Alfred Moisiu, Prime Minister Fatos Nano
GDP: US$2.9 billion
GDP per head: US$863
Inflation: 40%
Major industries: Cement, chemicals, food processing, hydropower, mining, oil, textiles and clothing, timber
Major trading partners: Italy, Greece, Germany, Belgium, USA., Bulgaria, Turkey, The Former Yugoslav Republic of Macedonia
Member of EU: no