Welcome to Albanian Web Site CE-04

Economy

Economy, general view

The agrarian reform in the agricultural economy in 1945expropriated the rich owners, nationalised the forests, waterresources, pastures and the big herds of livestock.Some 70211 families benefited from the expropriated land,while an area of 17 000 hectares was used to create the firststate agricultural enterprises of the socialist type. A totalnumber of 19,355 owners were expropriated. Prior to 1990,industry occupied 58 per cent of the social product, whileagriculture 25 per cent, with the livestock production givingless than 1/3 of the total agricultural production. Over 80s-90s, the growth of the general industrial production was 1.8 per centper year, while the growth of the population was 1.9 per cent ayear. Nationalization, centralization of everything in the handsof the state, the application of the principle of self-reliance,denial of any kind of ownership to the peasant brought aboutgradually the decline of the possible sources of the economicdevelopment. The market was so much disposed of items so that atthe beginning of 80s the ratio system was practiced on foodarticles. The industry and other branches of the economy wentinto a general crisis.