The function and content of the enterprise during communism in Albania

• Author: Endri Papajorgji - Greta Alikaj
• Position: Vice Rector and Dean of the Faculty of Law of Tirana Business University - Ministry of Economic Development, Tourism, Trade and Entrepreneurship
• Pages: 55-59

ISSN 2410-3918

Acces online at www.iipccl.org

55

IIPCCL Publishing, Tirana-Albania

Academic Journal of Business, Administration, Law and Social Sciences Vol. 2 No. 1

March 2016

The function and content of the enterprise during communism in Albania

Prof. assoc. Dr. PhD (Uni Graz) Mag. Iur (Uni Graz) Endri Papajorgji

Vice Rector and Dean of the Faculty of Law of Tirana Business University

MSc Greta Alikaj

Ministry of Economic Development, Tourism, Trade and Entrepreneurship

Abstract

Marks, Engels and Lenin’s ideologies were the foundation of the theory of law, in the Albanian

legal system. They were not contra positioned to the private law system, but were in

contradiction with the bourgeois society and its private ownership (Reich, 1972, 27). Socialist

law literature was based on the principle that state-owned enterprises had great advantages

not only compared to enterprises but also compared to large capitalist corporates; not only

because of their socialist nature which led to the disappearance of the exploitation of the

masses, but also because of their economic nature, as part of a large and mechanized economy

in which the successes of modern science and technology could be maximally implemented

(Marjani, Malindi, Shtepani, 1982, 16).

Either Article 8 of the Constitution of 1946, nor legal changes to 1950, or Article 26 of the

Constitution of 1976 did contain a definition of the enterprise. The Constitution regulated

only the basic principles of the planning economy, which was based on the planning economy

and state-owned enterprises, cooperatives and other workers associations. Article 26 and 27

of the Constitution of 1976 define the following:

“For the administration of the means, which are in ownership of the people, the state creates

companies, which operate in the interest of the society, defined in the state plan”.

“The prices of selling products of the companies and purchase prices of fruit products and

animals are determined by the state”.

These constitutional norms forced state-owned enterprises and agricultural cooperatives, to

use the means of production in a centralized form, to meet the obligations of the plan and to

ensure the interests of society (Çela, Çami, Hysi, Omari, 1978, 125).

In this context, main aim of this article is the function and content of the enterprise during

communism in Albania.

Keywords: state-owned enterprise, Albania, communism.

Introduction

In Albania, the laws of 1947 and 1966 about the enterprise contained rules, which

defined the enterprise as an entity, which exercised its activity in the sector of

production, distribution, services and construction in accordance with the data of the

economic plan and pursue the goal of increasing economic efficiency and increasing

the standard of the people.

According to Article 35 of the Albanian Civil Code of 1981, state-owned enterprises,

agricultural cooperatives and state economic organizations,1 were legal entities with

1 According to the doctrin of socialist law, state economic organizations were supervised from major economic

units. They asissted the economic organization on the realization of the state plan. The General Directory of Gas

worked as a single state economic organization, which had under its supervision a considerable number of gas

enterprises, which also function as legal persons; (Biçoku, Hicka, Çela, Sheshi, Ndrenika, 1984, 75).