Barriers to Entry and their Impact on Firms’ Performance in Albania

  • Lindita Xhillari
  • Shqiponja Telhaj


Nearly 50 years after World War II, Albania was the most isolated country in Central and Eastern Europe. It had an extremely centralised economy and a poorly performing state —which was the only owner of the property created by the contribution of generations of Albanian people (Clunies-Ross and Sudar 1998(). Political changes started in 1990, when the first opposition party, the Democratic Party, was created. In 1991, following serious riots in main cities, a coalition government was created. Its economic programme contained measures of macroeconomic stabilisation, liberalisation of prices and foreign trade, privatisation and the development of convertible currency. However, the coalition government could not embrace reforms and the disagreements over these policies led to the withdrawal of the Democratic Party from the coalition government in December 1991, and a halt in the implementation of the 1991 programme. Only in 1992, after new elections, when the Democratic Party gained a majority, did the government start to implement the programme of transition in Albania which, by then, was the last country in Central and Eastern Europe to embark on economic transformation.


Banking System Employment Growth Bank Loan United Nations Development Programme Early Transition 
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Copyright information

© Springer Science+Business Media New York 2003

Authors and Affiliations

  • Lindita Xhillari
    • 1
  • Shqiponja Telhaj
    • 2
  1. 1.Human Development Promotion CentreTiranaAlbania
  2. 2.Stoke on TrentStaffordshire UniversityUK

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