History of Albania 7 (Post-Communist Albania)

After protests beginning in 1989 and reforms made by the communist government in 1990, the People's Republic was dissolved in 1991–92 and the Republic of Albania was founded. The communists retained a stronghold in parliament after popular support in the elections of 1991. However, in March 1992, amid liberalization policies resulting in economic collapse and social unrest, a new front led by the new Democratic Party took power.


Albanian T-59 tanks near Kosovo border, May 1999 during the Kosovo war
In the following years, much of the accumulated wealth of the country was invested in Ponzi pyramid banking schemes, which were widely supported by government officials. The schemes swept up somewhere between one-sixth to one-third of the country's population. Despite IMF warnings in late 1996, then president Sali Berisha defended the schemes as large investment firms, leading more people to redirect their remittances and sell their homes and cattle for cash to deposit in the schemes. The schemes began to collapse in late 1996, leading many of the investors into initially peaceful protests against the government, requesting their money back. The protests turned violent in February as government forces responded with fire. In March the police and Republican Guard deserted, leaving their armories open. They were promptly emptied by militias and criminal gangs. The resulting crisis caused a wave of evacuations of foreign nationals and of refugees.

The crisis led Prime Minister Aleksandër Meksi to resign on 11 March 1997, followed by President Sali Berisha in July in the wake of the June General Election. In April 1997, Operation Alba, a UN peacekeeping force led by Italy, entered the country with two goals: assistance in evacuation of expatriates and to secure the ground for international organizations. This was primarily WEU MAPE, who worked with the government in restructuring the judicial system and police. The Socialist Party won the elections in 1997, and a degree of political stabilization followed.

In 1999, the country was affected by the Kosovo War, when a great number of Albanians from Kosovo found refuge in Albania.

Albania became a full member of NATO in 2009, and has applied to join the European Union. In 2013, the Socialist Party won the national elections. In June 2014, the Republic of Albania became an official candidate for accession to the European Union.