Privatization in Albania in numbers

AuthorEndri Papajorgji Greta Alikaj
PositionVice Rector and Dean of the Faculty of Law of TBU (Tirana Business University) - Albanian Ministry of Economic Development, Tourism, Trade and Entrepreneurship
IIPCCL Publishing, Tirana-Albania
Academic Journal of Business, Administration, Law and Social Sciences Vol. 1 No. 3
November 2015
ISSN 2410-3918
Acces online at
Privatization in Albania in numbers
Prof. assoc. Dr. PhD (Uni Graz) Endri Papajorgji
Vice Rector and Dean of the Faculty of Law of TBU (Tirana Business University)
MSc. Greta Alikaj
Albanian Ministry of Economic Development, Tourism, Trade and Entrepreneurship
The privatization process after the 90’s has laid the foundation stone for Albania’s EU
integration, not only in the economic, but also in its legal field. In the late 80’s an ideological,
political, economic system disintegrated and in Albania as in all countries of Eastern Europe,
democracy, free market economy and the rule of law, based on private property and free market
economy were the foundation of the transformation. But the way this transformation had to
be mastered was not clearly defined. For more than 40 years, Albanian citizens were faced
with the communist ideology as the basis of state government regulation. This ideology stated
that, all citizens had contributed the same way and in the same extent during socialism for the
construction of state and social property. In Albania, as in all other countries of Eastern Europe,
the so-called “Rent seekers” were transformed into Oligarchs and Owners of the privatized
state-property for little money. In this context, this process was accompanied by the deficiency
of accurate economic statistics, privatization strategies, foreign investors, a bad policy
implementation as well as delays in the framework of immediately needed reforms (Åslund
2013). Main objective of this article is the Analysis of the privatization process in Albania
through statistics.
Keywords: Privatization, Economy, law, Albania, EU.
Albania was mainly an agrarian state before communists came into power in 1944.
Agriculture constituted more than 90 % of domestic production; meanwhile the
industry consisted in less than 4%. Construction and services sector constituted
approximately 3 % of general production costs. Table 1 indicates the structure of net
production from 1938-1989. It is apparent, that during the communist regime, the
percentage of industry gradually increased until it reached 45%, meanwhile agriculture
fell by 33%. In accordance with the communist ideology, heavy industry was a priority.
Heavy industry as part of the whole industry grew from 48, 9% in 1960, to 63,9% in
1988, meanwhile the percentage of small enterprises declined from 51,1% to 36,1 %
during the same period (Pashko, 1991). The number of employers in the industry
sector increased continuously during 1938-1989. In 1990, the percentage of employers
in the industrial sector constituted 27, 5% of all employers, meanwhile 60% were
employed in the agricultural sector (EIU, 1994).

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