Introduction Today, Albania is a real mess. What is currently occurring in the region complicates the situation even further. I'm not sure what Albania should do for the next ten days, let alone ten years. But, I will try to discuss economics and resources. Second, past and current military and diplomatic policy. Finally, I want to tie all of this to the idea of adopting the policies and philosophies of the Western democracies. Only through the aid, encouragement and protection of the West, can Albania hope to make progress for itself and it's citizens. Economics Albania is the poorest country in Europe. Years of dependence on the Soviet Union and China, followed by virtually complete isolation led to economic collapse in 1991 (Colliers Encyclopedia CD-Rom, 1998). Government control of all areas of the economy resulted in manufacturing plants that lacked the freedom to adapt to changes. The lack of competition also created a lack of innovation. Collective agriculture produced less and less from harvests (European Forum, June 1997). In 1992, the Albanian government realized drastic change was necessary; Albania made very rapid progress in stabilizing the economy following the substantial political and social changes that accompanied the demise of Communism and the shift to a market economy in the period between 1990 and 1992. During that period, overall GDP fell by 41%, industrial pro- duction fell by 74%, and inflation rose to 237% in 1992. By 1993, output had started to rise, inflation reduced to 31%, and the currency had been stabilized, as a result of tight fiscal policies (Poole p.2). In the early 1990's Albania's government abandoned most of its communist policies relating to the economy. In essence, leadership decided it could no longer deal with the problems, so why not lets its people try. A new privatization plan was enacted. "Within several months about 30,000 people found themselves employed by the non-agricultural private sector.
