This text draws attention to the features of Albania's "transition" such as: very low income base; agricultural work force; rapid restoration of macroeconomic stability; large proportion of working-age population emigrated; and high economic growth in the last four years to December 1997.

This work draws attention to the distinctive features of Albania's "transition" as well as those it shares with other Central and East European economies. The distinctive features include: very low income base; large proportion of the work force in agriculture; rapid restoration of macroeconomic stability (stable exchange rate and low inflation); large proportion of working-age population emigrated; and quite exceptionally high economic growth in the last four years to December 1997. It examines the inter-relationships of these features, including an account and tentative analysis of the events of 1997, with an attempt to explain why the failed financial institutions (again without parallels elsewhere in the ex-Communist state) existed and behaved as they did.

Introduction: puzzle and paradox
Albania's distinctiveness
land, regions and people
politics, 1990-96
liberalization
privatization
stabilization
safety-nets and social security
institutional development
changes in production and trade patterns
public finance
labour and employment
financial institutions
foreign resources
events of 1997
prospects and priorities.