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This is an archived USAID document retained on this web site as a matter of public record.

COUNTRY SPOTLIGHT: ALBANIA

In this section:
Albania Works to Join World Economy
Child Trafficking Victims Aided in Albania
Loans Help Small Businesses Increase Products and Workers
Public Officials in Albania Face Fines, Dismissal
Technology Boosts Healthcare in Albania as Doctors Focus on Prevention


Albania Works to Join World Economy

Capital: Tirana: Population: 3.6 million: Size: Slightly smaller than Maryland: Population below poverty line: 25% (2004 est.): GDP per capita: $4,900 (2004 est.): GDP real growth rate: 5.6% (2004 est.):  Ethinic groups: Albanian 95%, Greek 3%, other 2% (Vlach, Roma, Serb, Macedonian, and Bulgarian):  Religions: Muslim 70%, Albanian Orthodox 20%, Roman Catholic 10%: Source  CIA World Factbook

TIRANA, Albania—In the wake of Albania’s July 3 parliamentary election and pending official election results, tackling corruption and developing the national economy will remain top priorities.

“Albania is addressing corruption, but it is a hard and difficult process because it is deeply embedded as a way of life and doing business here,” said USAID Mission Director Harry Birnholz. “It’s a challenge to make [corruption] no longer acceptable behavior. And we hope that we are creating enough successful entrepreneurs to create their own momentum for real economic and social changes.”

Albania—a southeastern European nation of 3.6 million people wedged between Greece, Macedonia, Serbia and Montenegro, and the Adriatic Sea—was under xenophobic communist rule for 46 years until 1991.

Since then, Albanian governments have faced high unemployment, widespread corruption, and dilapidated infrastructure.

But parliamentary elections in 2001 and local elections in 2003 were hailed by international observers as a step toward democratic development.

And the nation’s average income has increased, marking a step towards economic development and integration into the Euro-Atlantic community.

“Albania has some key advantages for the region—its proximity to key European Union markets and several ports,” Birnholz said. “It has a relatively low-cost and skilled labor force. But it has a terrible infrastructure, and lacks the judicial safeguards that encourage people to invest here.”

With a staff of 32, USAID/Albania this year is carrying out programs in democracy, economic growth, rule of law, anticorruption, health, combating human trafficking, and promoting religious harmony.

FrontLines Acting Deputy Managing Editor Kristina Stefanova visited Albania recently and wrote this series of articles.


Child Trafficking Victims Aided in Albania

Photo of Nebi Mastafai.

Nebi Mustafai, 52, worries about his grandson Arben (not his real name), 9, who was trafficked to Greece. The boy’s father is a drug dealer and his mother is in jail. Mustafai says he lives in fear that one day his son will come and take Arben back to Greece and force the little boy again into living and begging in the streets.


Stephanie A. Pepi, USAID/Albania

ELBASAN, Albania—Dritan has begged, stolen, washed car windows, and sold everything from flowers to cigarette lighters on the streets of Greek cities. And on days when he did not earn 50 or 60 Euros, he was left hungry, made to sleep on the street, and beaten.

Dritan (not his real name) is one of hundreds of Albanian children who have been trafficked abroad—mostly to Greece and Italy—where they are forced to beg or work. Older girls are often forced into prostitution, while boys may get involved in organized crime, selling drugs or running rings of younger victims of trafficking.

“These children are typically Roma, or Gypsy, from poor families,” said Edlira Bashmili of the NGO Terre des hommes (Tdh), which implements an antitrafficking project funded by USAID and other donors. “These families are approached by a neighbor or friend of the family…. They say, ‘I’ll take the child, and you’ll get $100 per month. The child will have a good life, and it will solve your economic problems.’”

In reality, children are mistreated and made to live on the streets, while parents rarely get any money, said Bashmili.

The program, Transnational Action against Child Trafficking (TACT), teaches thousands of elementary school children about the dangers of trafficking. TACT workers visit elementary schools in Elbasan once a month to show testimonial videos of trafficked children. They distribute pamphlets with stories of boys made to beg on the street and talk to students about their feelings on the subject.

TACT operates in half Albania’s districts, and has reached some 25,000 children with its antitrafficking message.

In Elbasan, the third largest city in Albania, most of the poor are from gypsy communities on the outskirts of town, Bashmili said. Here, hundreds of families live in cramped quarters with no running water or power. Tdh field staff regularly visit these quarters looking for children at risk or living in the streets to help them reintegrate into school.

Tdh is currently monitoring Arben (not his real name), 9, who was trafficked to Greece. The boy’s father was a drug dealer and user, and his mother is in jail. Arben lives in a two-room home—which lacks a toilet or shower—with his grandparents, aunt, and 11 other children. About half his cousins are not registered with the city, so they cannot attend school, get healthcare, or receive social services.

The family receives flour, oil, rice, school clothes, and books from Tdh staffers, who monitor Arben’s whereabouts and encourage his school attendance.

Through a different NGO, Tjeter Vizion, USAID helps trafficked children return to a normal life. Some are reunited with their families. Those who have suffered severe trauma are placed under the NGO’s legal custody.

Tjeter Vizion, which is funded through the Coordinated Action against Human Trafficking Project, runs a residential center, community daycare, and secure apartments for minors in difficulty, including trafficking victims. It helps younger children with school work, while older children are trained in vocations like plumbing or hairdressing.

Photo of boy reading antitrafficking brochure.

During a monthly visit of workers from the Transnational Action against Child Trafficking program, a boy in an Elbasan elementary school reads through a brochure educating children about the dangers of trafficking. The brochure tells the story of a boy who is taken abroad, made to beg and steal, and is mistreated. As his misery unfolds, the boy begins to resemble a robot rather than a little boy, as do other trafficked children portrayed in the brochure.


Kristina Stefanova, USAID

The NGO collaborates with local police, hospitals, and social services to look for alarm signs—such as poverty, unemployment, fractured families, abuse, alcoholism, or drug addiction—to identify minors who need assistance.

Tdh referred Dritan, now 14, to Tjeter Vizion, who placed him in a secure apartment. Dritan has been living there for the past year and a half and is training to be a car mechanic.

He was 6 the first time he was trafficked to Greece. He fell into the hands of traffickers while visiting his grandmother in the port city Durres. He and several other children endured a grueling eight-day hike across the mountains into Greece.

Dritan spent two months working the streets of Volos in northern Greece. A tutor, as the trafficked children’s keepers are known, kept telling Dritan, “You must earn money every day. Don’t come back otherwise.” He also recalls being told, “You must work because we send your mother money.”

When a child returned with less than 50 or 60 Euros, he or she was beaten or burnt with cigarettes. Often the kids went hungry.

Because some kids were too young to care for themselves, the tutor’s wife washed their hair, Dritan said.
“One day it was raining,” he recalled, “and I really wanted to go back to Albania and my mother. So I told one boy ‘Give me some money, please, I want to go back.’”

Dritan made it home, but it wasn’t long before he took to the streets. His parents were divorced, and his mother “brought clients” to the house, which made all three of his siblings avoid home.

When he was 7, Dritan was once again picked up by traffickers, who this time smuggled a group of children into Greece with fake visas. Dritan worked the streets of Athens for two and a half years. He was beaten and scarred with a hot iron. He was arrested a couple of times, but always let go. Eventually, he took a bus back to Albania. Identified by Tdh staff, he was soon referred to Tjeter Vizion.

Trafficking of persons is an international human rights violation and illegal under Albanian and international law. In Albania, convicted traffickers can be sentenced to up to 15 years of prison. But conviction rates remain low.


Loans Help Small Businesses Increase Products and Workers

Photo of Albanian towel factory.

A worker at Florjan-V sh.p.k. tends a massive loom that produces towels. As the threads stream from the top of the machine, they are woven into giant textiles, which will eventually be cut into individual towels.


Kristina Stefanova, USAID

SHKODER, Albania—Viktor Marku’s towels are used throughout Albania, Kosovo, and Montenegro. As the only Albanian towel producer, Marku accounts for a quarter of the domestic market and has a slowly growing presence abroad. In eight years, his business, Florjan-V sh.p.k., has doubled in size and now employs 12 workers.

“This is a business that has a market because the consumption is good,“ said Marku, while surveying his factory’s humming looms and workers who are cutting and packaging towels of all sizes and colors. “You eat at least three times a day, so you’ll use a towel at least six times a day.”

USAID’s Small Business Credit and Assistance project (SBCA) backs the sentiment, and is helping Marku expand his sales though loans and technical assistance.

Three years ago, Marku borrowed $30,000 to repair some equipment that helped him double towel production. He paid off the loan last spring, and borrowed another $60,000 to buy a generator and a minivan to deliver towels to his retailers and wholesalers.

“Marku is the perfect example of the businessman that we are trying to and can help,“ said Jeff Houghton, chief of party of SBCA.

The project has provided credit and technical assistance to more than 4,000 businesses in 33 of Albania’s 36 districts since March 2002. Loans, which are repaid within two years, have gone to businesses for help in creating new products, adding employees, or purchasing and repairing equipment.

SBCA has also offered technical assistance to entrepreneurs like Hilmi Brace, the owner of Albania’s only recycled paper processor, Hermes sh.p.k. His company, based outside the city of Fier, produces toilet paper and cellophane tape out of the recycled paper, and is about to branch out into paper napkins and towels.

Brace needed to borrow more than the maximum $50,000 SBCA loan. He went to other local banks, but they were not convinced that this was a bankable project. So he used SBCA’s help to draft a business plan that he could present to banks and convince them of his plans to purchase new equipment.

“Up to yesterday, not a single bank would lend me money,” he said. With the new business plan in hand “banks are fighting each other to give me a loan.“ Brace recently received a $250,000 loan from Procredit Bank.

SBCA works with small and medium enterprises focused on manufacturing and agrobusiness. In its early years, its main goal was to offer credit and general business development support. Now the project is more focused on providing a small number of businesses more specific aid, such as help in developing new products and learning how to better market their products.

Marku, for instance, is being advised to invest in a computerized accounting and production control system that will enhance the quality of his product and, hopefully, make it appealing to consumers abroad.

Following advice from SBCA, he has also added Florjan-V labels to his towels and is now using some new patterns and designs.

“This project is all about getting Albanian products into Albanian stores,“ said Houghton. “And consumers are demanding these days, so we have to make products as attractive as possible.”


Public Officials in Albania Face Fines, Dismissal

Photo of anticorruption poster.

A popular poster around Tirana, which urges Albanians not to trade their rights for money. Its 24-hour hotline can be used to report instances of corruption.


Citizens Advocacy Office

TIRANA, Albania—Last year, Albania sacked a high-level official from the Transportation Department after an audit of his assets revealed he owned the country’s largest asphalt company. And in the months leading up to the July 3 parliamentary elections, journalists discussed the assets of public officials on the ballot.

“There are some blatant conflicts of interest here…This was a very closed society, so the concepts of transparency and accountability are just not accepted or understood,” said Andrew Pentland, senior anticorruption specialist advising Albania’s newly formed High Inspectorate on the Declaration and Audit of Assets (HIDAA).

HIDAA, which was created on legislation recommended by a USAID-backed NGO coalition, is the first of its kind. It audits all public officials at two-year intervals. Its mandate was recently enlarged to include the implementation of a new conflict-of-interest law, also drafted with U.S. assistance.

USAID has provided computers, scanners, and other equipment. It has helped design declaration forms, and put in place a state-of-the-art information management system that includes an official website. The Agency is also training inspectors and providing on-site technical assistance to HIDAA through experts like Pentland, who works out of an office in the High Inspectorate’s sleek new headquarters.

Fatmira Laskaj, a former judge who now heads HIDAA, has handed over cases of conflict of interest or suspicious assets to the Prosecutor General’s Office. As a result, some officials have been dismissed and others prosecuted.

In May, two months after the official deadline for asset declaration submissions, Laskaj issued fines to 84 public officials who were late with their submissions.

“It is difficult to change the attitude of officials to declare their assets,” Laskaj said in an interview with FrontLines.

But attitudes are changing, said Pentland. “You often feel like you’re getting nowhere, but then someone comes a month later and says ‘That was a great idea,’ and does what we suggested,” he said.

Another sign of change is that journalists have been asking for the records of public officials leading up to parliamentary elections, Pentland said.

Albania loses about $1.2 billion per year because of graft and unpaid taxes, according to a recent World Bank study.

Obtaining a business license or other documentation can be a lengthy and costly process. The regulatory system is not transparent, and often businesses have difficulty obtaining copies of laws and regulations. Rules are also often inconsistent, leading to unreliable interpretations.

USAID provides training, technical assistance, and small grants to anticorruption NGOs such as the Albanian Coalition Against Corruption and the Citizens Advocacy Office. The Agency also supports judges and chancellors’ associations with binding codes of ethics and tries to strengthen the enforcement of judicial judgments.


Technology Boosts Healthcare in Albania as Doctors Focus on Prevention

LAPARDHA, Albania—Dr. Ajet Veleshnja is high-tech for a general practitioner (GP) in rural Albania. He uses a laptop to keep track of his patients’ records, and he recently invested in ultrasound equipment that allows him to diagnose all sorts of ailments.

“We should not just focus on the curative,” said Dr. Veleshnja, echoing the sentiment behind a USAID project that strengthens primary healthcare through Albania. The effort aims to empower GPs and refocus their work from curative to preventative care.

In the years since communism collapsed in Albania, healthcare centers have suffered. Doctors fell behind on medical techniques, equipment became obsolete, and recordkeeping was poor. At the same time, more specialists started practices, attracting patients who believe that specialists provide better care. Patients also try to save money by only going to a doctor once, when they are sickest. This has skewed the healthcare system and largely demoralized GPs.

Since 2001, USAID has been trying to improve the system.

Now GPs like Dr. Veleshnja have been trained in recordkeeping, case management, and budgeting. In a health center in downtown Berat, a city about an hour’s drive from Lapardha, a simple switch from a walk-in system to one of appointments has made a big difference in the doctors’ efficiency, said Dr. Donika Papa.

The center also has new practice guidelines, recordkeeping forms designed to make disease prevention easier, and a new health information system, Dr. Papa said.

All visits to the clinic are recorded and stored in a software program developed by USAID. Based on monthly reports generated from these data, GPs can track the types of illnesses diagnosed, treated, and referred to hospitals. Reports are prominently displayed in every clinic, and doctors and nurses from the region meet monthly to evaluate their performance statistics.

In Berat, these reports helped doctors identify an alarming incidence of hypertension, which is linked to smoking and, possibly, a genetic predisposition.

With the data, local health officials designed an awareness campaign highlighting the dangers of smoking and justified a request to the Ministry of Health for more antibiotics to treat inflammations.

In March, the Ministry of Health took the health information system nationwide. It had previously been active in only four regions as a USAID pilot project.

“We have changed many things in the way we are working, which has a big impact on how we manage patients,” Dr. Papa said.

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