Albania’s rich natural resource base provides the opportunity
Albania lies in the Alpine Orogenic belt. Its geological setting provides a
wealth of minerals, notably chromite, nickel, copper, zinc and iron. Under
its long communist regime, Albania was the principal European chromite
producer ranking second in the world by exports. However, that regime largely
ignored the potential for other base and precious metals normally associated
with copper deposits.
Years of underinvestment requires new external private capital
Although mineral exports were the main source of foreign currency for the
communist regime it did little to maintain or develop its asset. Economic
turmoil in the mid-90s compounded the problem and by 2000 chromite
production had fallen to one-tenth of its peak level – achieved during the
communist era.
Economic reform programme underway
The IMF, World Bank and other international agencies have active investment
programmes aimed at facilitating the transition from the decades of communist
rule. Economic reforms are underway and the legal system is being overhauled,
notably in the area of property law. The Mining Law was rewritten in 1994
under the guidance of the World Bank.
Still a long way to travel
Beyond the capital of Tirana lies still an agrarian economy in the grips of high
unemployment. Per capita income of US$6,300 ranks Albania 125th globally,
just below Algeria. Human trafficking is a problem that places the country on
the US State Department’s Tier2 Watch List and land mines, a legacy from the
war in Kosovo, afflict some 120km of the border.
Invitation to join NATO a sign of coming in from the cold
Sufficient progress has been made in most areas for NATO, earlier this year,
formally to invite Albania to begin accession talks. Albania is also an EUaspirant
country with expectations of membership in the 20-teens. Moody’s
granted its first ratings to Albanian sovereign debt in 2007. The Ba1 puts its
foreign-currency denominated bonds in the same company as Bahrain and the
Philippines – a clear sign of Albania coming in from the cold.
