Anthony Clunies-Ross - Albanias Economy in Transition and Turmoil 1990-97

ANTHONY CLUNIES-ROSS

PETAR SUDAR

First published 1998 by Ashgate Publishing

Reissued 2018 by Routledge
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Copyright Anthony Clunies-Ross and Petar Sudar 1998

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The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original copies may be apparent.

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A Library of Congress record exists under LC control number: 98073406

This research was undertaken with support from the European Commisions Phare ACE Programme 1994.

The book contains selected passages from studies submitted for a project entitled Economies in Transition - A Case Study of Albania which was carried out in the context of the European Commissions Phare ACE Programme 1994. Their content does not, however, express the Commissions official views. Responsibility for the information and views set out in the papers lies entirely with the editors and authors.
Original papers: European Communities, 1996.

ISBN 13: 978-1-138-60977-8 (hbk)
ISBN 13: 978-0-429-45945-0 (ebk)

John Bachtler, Co-director, European Policies Research Centre, University of Strathclyde.

Spiro Bnimbuili, General Administrator, National Commercial Bank of Albania; formerly Faculty of Economics, University of Tirana.

Anthony Clunies-Ross, Department of Economics, University of Strathclyde.

J.R. Davies, Department of Accounting and Finance, University of Strathclyde.

Rajmonda Duka, Department of Economics, Faculty of Economics, University of Tirana.

Stewart Dunlop, Fraser of Allander Institute for Research in the Scottish Economy, University of Strathclyde.

Roy Grieve, Department of Economics, University of Strathclyde.

Servete Gruda, Department of Economics, Faculty of Economics, University of Tirana.

Sulo Haderi, Department of Economics, Faculty of Economics, University of Tirana.

C. Paul Hailwood, University of Connecticut.

Pavlos Karadeloglou, European Central Bank; formerly Bank of Greece and University of Athens.

Neil Kay, Department of Economics, University of Strathclyde.

Ilia Kristo, Department of Marketing, Faculty of Economics, University of Tirana.

Dhori Kule, Dean, Faculty of Economics, University of Tirana.

Niall Levine, Department of Human Resource Management, University of Strathclyde.

Shyqyri Llaci, Head, Department of Management, Faculty of Economics, University of Tirana.

James Love, Head, Department of Economics, University of Strathclyde.

Ronald MacDonald, Department of Economics, University of Strathclyde.

Ahmet Manellan, Department of Economics, Faculty of Economics, University of Tirana.

Luljeta Minxhozi, Head, Department of Economics, Faculty of Economics, University of Tirana.

Hasan Mytkolli, Department of Mathematics, Statistics and Computer Science, Faculty of Economics, University of Tirana.

Douglas Pitt, Dean, Strathclyde Business School, University of Strathclyde.

Stefan Qirici, Ministry of Foreign Affairs, Albania.

Mary-Louise Rooney, European Policies Research Centre, University of Strathclyde.

Gene Ruli, Professor, University of Tirana; President, Albanian Institute of Contemporary Studies.

Neritan Sejamini, Founder, Albanian Institute of Contemporary Studies.

W. J. Stewart, Department of Economics, University of Strathclyde.

Chrisostomos Stoforos, Department of Economics, University of Athens.

Omer Stringa, Department of Mathematics, Statistics and Computer Science, Faculty of Economics, University of Tirana.

Petar Sudar, Department of Finance and Accounting, Faculty of Economics, University of Tirana; currently Research Scholar, Department of Accounting and Finance, University of Strathclyde.

Halit Xhafa, Department of Finance and Accounting, Faculty of Economics, University of Tirana.

Yaping Yin, Fraser of Allander Institute for Research in the Scottish Economy, University of Strathclyde.

This book is one outcome of a project devised in 199394 by Gramoz Pashko and the late Jim McGilvrayafter several years of cooperation between the Faculty of Economics of the University of Tirana and various departments of the Business School of the University of Strathclyde in Glasgow. Gramoz Pashko was at the time a Member of the Albanian National Assembly and was on the staff of the Tirana Economics Faculty, and he had been Deputy Prime Minister in the first post-Communist Government of Albania in 1991. Jim McGilvray was Chair of the Economics Department at Strathclyde; was a former Director of the Fraser of Allander Institute for Research on the Scottish Economy; and had been extensively involved in academic cooperation with countries in Eastern Europe.

The project was to devise a series of studies on various aspects of the Albanian economy during its transition to the market. On each study one or more Albanian scholars would work in cooperation with one or more foreigners. The aim would be multiple: to assemble a body of information for outsiders interested in Albania; to provide locally-based teaching material for use with Albanian students of economics; and to clarify policy issues. Alexandros Panethimitakis and Pavlos Karadeloglou, economists at the University of Athens, joined with Pashko and McGilvray in backing the project, which was adopted for financing by the European Commisssion under its Phare programme in 1994. Contact was made between a number of Albanian academics and workers of corresponding interests in Greece and Scotland. But the completion of the project, already somewhat behind schedule, was thrown into jeopardy by the sudden death of Jim McGilvray in November 1995 and the difficulties faced by Gramoz Pashko as a prominent oppositionistdifficulties that led him to leave Albania for a considerable period until after the election of 1997. It was suggested in the latter half of 1996 that Anthony Clunies- Ross should step into Jim McGilvrays role as Coordinator in order to bring the project to completion by the last day allowed under the contract with the European Commission. At Gramoz Pashkos request, Gene Ruli, another distinguished former-Ministerhe had held office as Minister of Finance in both the first coalition government and the first Democratic- Party-led governmentagreed to be the Tirana Partner; and Pavlos Karadeloglou was prepared to continue as the Athens Partner. The imminence of the final date meant that the great bulk of the writing had to be completed during the extremely disturbed first half of 1997. Nevertheless eleven studies were completed, and parts put into Albanian.