Topic > The Economy of Albania - 1047

An analysis of the Albanian economy in the past, present and future demonstrates how an economic structure fluctuates with the type of government present at the time. Albania, a new member of the European Union, is in the midst of its battle to stabilize its vigorous economy that has had problems since before the 1940s. An explanation for this instability can be found by examining Albania's history, government structure, currency and exchange rates, imports and exports, including natural riches, national education, unemployment rates and overall integration of the country on a global scale. The fall of communism in Albania began in 1985 with the death of dictator Enver Hoxha. Before his death, he ruled Albania with communist and socialist policies that led to a steadily declining economy. After Hoxha's death, Ramiz Alia succeeded to the dictatorship and continued with the same policies, but began to lighten the stronghold with economic relief to allow it to begin to self-sustain (Eastern Europe 15). With the communist government loosening some of its grip, Albanian society began to rebel against the government, demanding more democratic policies and less communism. In 1991, the communist regime fell and new policies focused more on democratic ideals with a socialist influence began to be created. Alia became president during this period but was ousted in 1992 (Background 1). Since then, Albania's economy has undergone considerable changes, but is slowly improving. To understand changes in the most recent economic fluctuation, reviewing currency alterations and the balance of foreign and domestic currencies can provide insight. Since the establishment of democratic government, the country has begun to borrow from other countries to enable reforms. The Albanian currency, the Lek, was under discussion to be formally changed to the euro. Most of Albania