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Nathan Gurney
SIE 526, Cadastral and Land Information Systems
Spatial Information Science and Engineering Dept.
University of Maine, Orono
Spring 1997
1 Abstract
This paper is an investigation of the land tenure and cadastral issues of Albania. This country is a Baltic country, that is just developing a democratic government and free market trading after 40 years of socialist rule and a command driven market. In the last decade, there have been times of social upheaval, and times of social progress. Other than the impact of non-survey related issues, Albania would have few problems implementing their new cadastral land tenure system.
2 General Information
Albania is the poorest country in Europe, with an estimated 1992 per capita GDP of under $400. Amid political and economic turmoil, the centrally planned economy collapsed in 1992, giving way to a democratically elected government. Revolution and reform have resulted in an abrupt transition to a market economy, which has had a dramatic impact on Albania's rural population. (World Bank, Sept, 1996)
The dismantling of agricultural cooperatives and rapid privatization of land has transformed state farm workers into private land owners whose average holding is a meager 1.4 hectares (about 3.5 acres) per family. People were expected to create farms out of their new plots to provide food for their families but have been unable to do so because of a lack of start-up capital to purchase inputs and supplies. Without the necessary tools, inputs, and opportunities, people were surviving on little more than food aid. To make matters worse, rural infrastructure was destroyed during the revolution, along with rural organizations in charge of its development and maintenance. (World Bank, Sept, 1996)
3 Culture
Two aspects of Albanian culture that make transition difficult are their "oral" records and their "biographical" judgments. Albania has a largely "oral" culture. They would much rather tell you about something than write it down. They don't understand the need (perhaps a western fixation?) to prepare writen agendas or reports, or keeping written records. This would fit well with an informal land tenure system but, all land has been owned by the state since the late 1940s. Instituting a written registration system presents a challenge. (World Bank, Sept, 1996)
Albanian's also judge other people based on their "biography". (Your family's political history over the last two generations.) So whether one's uncle was a good communist or one has any relatives in prison is given more importance than professional background or economic well being. (World Bank, Sept, 1996)
Albania also contains examples of racism and ethnic bias which does impact human rights and may impact property rights as well. Albania is 95% Albanian, 3% Greek, and 2% other (Vlachs, Gypsies, Serbs, and Bulgarians) (1989 est.) The Greeks are the largest ethnic minority, and fall broadly into two categories - the urban, and mainly secular, minority in Tirana, who migrated to Albania this century, and the centuries-old community in southern Albania, which is noted for its political conservatism and religious orthodoxy and was involved in communal violence in 1993. Their total numbers are variously estimated at between 40,000 and over 250,000. There are also constant conflicts in most of the countries in this area over the human rights infringements on ethnic groups not native to a the country they are in. (Video_On_Line, 1995) Settlements at the end of the Balkan Wars, in 1913, left half of the Albanian population resident in Kosovo, southern Serbia, western Macedonia and Montenegro. Albania's relations with her neighbors in the former Yugoslavia are therefore dominated by their treatment of 3 million or so ethnic Albanians, many of whom are denied full human rights. Relations with Greece are concerned both with the Greek minority in southern Albania and with Albanians in Greece. The Albanian Government wishes to help the Albanian diaspora to obtain full rights while respecting the sovereignty of neighboring States. (tlingit.elmail.co.uk, 1995)
4 Economic Overview
In Albania, agriculture accounts for 55% of GDP. Land fit for cultivation per capita is among the lowest in Europe. 80% of crop land is now in private ownership. One half of the work force is engaged in farming. The unemployment rate is 18% (1993 est.) and inflation is 31% (1993 est.).
An extremely poor country by European standards, Albania is making the difficult transition to a more open-market economy. The economy rebounded in 1993 after a severe depression accompanying the collapse of the previous centrally planned system in 1990 and 1991. Stabilization policies, including public sector layoffs and reduced social services, have improved the government's fiscal situation and reduced inflation. Foreign assistance and humanitarian aid also supported the recovery. Most agricultural land was privatized in 1992, substantially improving peasant incomes. Albania's limited industrial sector, now less than one-sixth of GDP, continued to decline in 1993. A sharp fall in chromium prices reduced hard currency receipts from the mining sector. Large segments of the population, especially those living in urban areas, continue to depend on humanitarian aid to meet basic food requirements. Unemployment remains a severe problem accounting for approximately one-fifth of the work force. Growth is expected to continue, but could falter if Albania becomes involved in the conflict in the former Yugoslavia, workers' remittances from Greece are reduced, or foreign assistance declines. (Video_On_Line, 1995)
5 Past Political Events
In the early 1900's, Albania was governed by a monarchy. Albania's King Zogu left Albania in 1939 when fascist Italy occupied the country. The institution of monarchy was abolished by the communists after World War II. (Macedonian Press Agency, 1997) The Albanian Communist Party was founded in 1941. Albania won its freedom from the Germans in 1945. They then led a socialist revolution that abolished capitalism and established a workers state within two years. (The Militant, 1997)
In April 1992, Dr Sali Berisha, a joint leader of the Democratic Party (DP), became President of a country that had been left by his Communist predecessors in a state of economic, social and political chaos. Food riots and looting had claimed many lives and caused great damage between December 1991 and February 1992; inflation stood at over 100 per cent and unemployment at 50 per cent; agricultural and industrial production had reached only half of their 1989 levels; public services - such as electricity, water, refuse removal and transport - had broken down, and people depended on foreign food aid for their survival. In February 1992, the fourth government in less than 10 months collapsed. (tlingit.elmail.co.uk, 1995)
Against this background, parliamentary elections, held on 22 March 1992, gave a decisive mandate to the Democratic Party to form Albania's first non-Communist government in more than 40 years. The priorities of this administration, headed by Prime Minister Aleksander Meksi, have been to re-establish law and order and to transform the economy under the guidance of the International Monetary Fund (IMF). (tlingit.elmail.co.uk, 1995)
Although I have not found information on the land tenure systems of each of these periods, I am certain that each of them (monarchy, communism, and democracy) made major changes in the way property was dealt with.
6 Current Governmental System
The political environment is a newly formed democracy with three division: Executive, Legislative, and Judicial. The chief of state in the executive branch is the President of the Republic, Sali Berisha (since 9 April 1992). The Prime Minister of the Council of Ministers is Aleksander Gabriel Meksi (since 10 April 1992). The Council of Ministers is appointed by the president. (Video_On_Line, 1995)
The legislative branch only has one chamber and is called the People's Assembly (Kuvendi Popullor). Elections were last held 22 March 1992; results - DP 62.29%, ASP 25.57%, SDP 4.33%, RP 3.15%, UHP 2.92%, other 1.74%; seats - (140 total) DP 92, ASP 38, SDP 7, RP 1, UHP 2. There are at least 18 political parties in Albania.
7 The judicial branch is the Supreme Court.
The current constitution is an interim basic law that was approved by the People's Assembly on 29 April 1991; a new constitution was to be drafted for adoption in 1992, but is still in process. Albania has had problems creating a new constitution to replace the interim one created in 1991. The Albanian government got help from the Council of Europe (CoE) to prepare a new Constitution and civil and penal codes. The new Constitution was submitted to a referendum November 1994. The new constitution provided parliamentary democracy, with separation of judicial and executive powers, and an advanced human rights charter. Despite the benefits of this draft, the Albanian electorate decisively rejected it at the referendum. (tlingit.elmail.co.uk, 1995)
8 Legislative/Legal System
The transformation from a command economy requires suitable legislation. Since April 1992, Albania's tax and customs laws have been entirely reformulated and parliament has approved new laws on retail firms, the Albanian Bank, bankruptcy, accountancy, labor regulation, and tourism. Foreign firms are showing increasing interest in Albania and find it easier to register and to refer disputes to international legal arbitration. (tlingit.elmail.co.uk, 1995) Despite the 1992 adoption of a Bankruptcy Law, no bankruptcies have taken place. An agency was established in 1993 to restructure or terminate the operations of 31 large companies. (US Dept Of Commerce, 1997)
The Law on Main Constitutional Provisions and the Law on Land (1991) prohibited the sale and purchase of land. Foreign individuals or companies could not own land, but were permitted to enter a lease contract for up to 99 years. According to two laws passed in 1993, former owners and their heirs can claim compensation or restitution of non-agricultural land. In the case of property that has already been privatized, the law prescribes co-ownership between the new and former owners. (US Dept Of Commerce, 1997) The People's Assembly adopted a new civil code in 1994. The code contains chapters on ownership and on inheritance which define the fundamental principles and rules governing a market economy. The Albanian Parliament in July 1995 passed two laws that have led, for the first time, to the possibilities for foreign nationals to purchase land in Albania. The first law discusses the buying and selling of agricultural lands, meadows and pastures and the second law discusses the buying and selling of building sites. (Albanian OnLine, 1995)
During the last five years, new laws and regulations have been created rapidly with the assistance of various international donors. The new set of laws and regulations that has been passed in the commercial arena includes an entirely new banking law, civil code, foreign investment law, labor code, competition law, bankruptcy law, industrial property law, companies law, as well as various laws dealing with land (including registration) and collateral. Unfortunately, the rapid growth in legislation has not been coupled with adequate enforcement of the new body of legislation. While the Albanian legal community has made progress, there are a number of factors which hamper the full and timely application of the new legislation. Some major factors include lack of training in the new laws and inadequate infrastructure to properly maintain a sophisticated commercial legal structure. Despite these concerns, the Albanian economy continues to grow relatively rapidly. However, with adequate enforcement of the existing basic commercial framework, private sector development, in particular that deriving from foreign investment, could be stimulated significantly. The donors continue to offer assistance in the legal arena, including training of judges at a new training center being established. In particular, the EU PHARE project is reviewing Albanian legislation for compatibility with EU standards, suggesting amendments where appropriate. A study (funded out of a PHRD Grant) has been launched by IDA to prepare an action plan for the strengthening of the enforcement capacity of the commercial court system under a separate future project focusing on the judicial sector, for possible IDA financing. (Herat, 1995)
Even though much of the legislative reform is progressing rapidly, other areas still need to be focused on. One of these areas is copyright. Albanian TV is in the developmental stages as far as private stations are concerned. Most programming there is simply pirated from international satellite feeds. There is unfortunately also evidence that the State TV (headquarters in Tiran) is involved in the same kind of disregard for intellectual property rights as their free market competitors. (1 TV per 10 persons) (New_Life_Network, 1997)
9 Banking and Lending
Since 1993, a number of small private banks have emerged in the form of joint-ventures with foreign partners, including the Italian Albanian Bank (IAB), the Arab Albanian Islamic Bank (AAIB) and the Dardania Bank (DB). These banks are focusing on mobilizing short term deposits and lending to selected customers mostly for trade financing. They do not have long term funds, lack experience in term lending, and have been wary of the weak legal environment for pursuing debt collection. Because of these factors, the private banks have been reluctant to provide investment financing. However, they now perceive positive developments in the legal arena resulting from the enactment of important legislation, and see potential opportunity in term lending if they get long term funds and training. (Herat, 1995)
The Bank of Albania (BOA) administers interest rates on Lek deposits varying between 10 and 14 percent. However, interest rates on foreign currency deposits and lending business by the banking sector (both in Lek or foreign currency loans) are market determined. The lending institutions are free to set rates and they have begun to differentiate between the type and quality of borrowers. The interest rates in informal market are still high varying between 5 to 8 percent per month. The rates charged by organized sector vary between 16 to 24 percent per annum for Lek loans which are mostly short term loans. The interest rates on foreign currency loans vary between 11 and 16 percent for long term loans being made to very few clients; rates for short term loans are somewhat higher. Given high administrative costs and substantial credit risk involved in term lending, the financial institutions expect to have margins in the range of 6 to 8 percent. (Herat, 1995)
10 Land Markets
Buying, selling, and mortgaging farmland are still rare in Eastern and Central Europe, including Albania. Given the level of risk in many of these countries, short-term transactions, especially leasing, are more common. These short-term transactions do almost as well as land sales in allocating resources. Making them more secure by improving simple registration and enforcement systems and increasing public access to information on what's for rent and at what price would do much to help revive the farm sector.(Razzaz, 1995)
A World Bank sponsored survey also shows that land is rarely used as collateral. When private farmers in Albania, Bulgaria, Hungary, Poland, and Romania were asked whether they would be willing to use their land as collateral, most said no (table 1 below). Moreover, banks are reluctant to accept farmland as collateral though some will accept centrally located urban land. The survey indicates that the more market-oriented the banks, the more reluctant they are to enter into the high risks currently associated with farming. When banks do lend to farmers, they tend to make only short-term loans (not for land) and they prefer movable property such as crops, animals, and personal assets as collateral. Only in Poland were banks willing to lend to farmers to buy land, probably as a result of the greater experience with private land ownership in that country. (Razzaz, 1995)
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Many countries, especially those of the former Soviet Union, even have yet to make a clear and credible policy commitment to private property rights to land (including the right to transfer). While other countries, such as Estonia, have recognized and protected such rights, they are still wrestling with conflicting land claims between original owners and current users. And although some countries, such as Albania, Armenia, and Romania, have moved quickly to distribute public land to individual owners, they have yet to develop the substantive and procedural legal mechanisms to facilitate buying and selling. (Razzaz, 1995)
In the current economic environment few farmers or investors want to buy farmland. They are uncertain about the viability of agriculture. They lack access to long-term finance. Owners are reluctant to sell because high unemployment, the collapse of social programs, and the lack of savings mechanisms mean that private owners want to hold land as a fallback, subsistence option.(Razzaz, 1995)
On both equity and efficiency grounds, short-term leases are frequently perceived as "second-best" tenure options compared with owner-operated arrangements. Yet, although long-term leases and ownership are crucial for creating the right incentives for long-term investment, short-term leases seem to be preferred during periods of economic instability. Recent theoretical and empirical work has shown that these leasing arrangements may be more efficient under conditions of high risk aversion, imperfect information, high enforcement costs, lumpy inputs, imperfect credit markets, or missing insurance markets conditions that are common in transition economies. Leases work well in these circumstances because agreements frequently take place between neighbors and within communities, substantially lowering the cost of information and of formal contract enforcement. The leases make it easier to adjust the size of farming units in a way that reflects changes in the relative cost of land, labor, and finance. Short-term leases are also likely to ease common anxieties about corruption, speculation, and mass dispossession of farmland by absentee landlords. And finally, because leasing allows short-term and repeated transactions, uncertainty about the market value of future production is less of a problem.(Razzaz, 1995)
Leasing arrangements are important not only as mechanisms for farm restructuring, but also as catalysts in developing mature land markets. Price signals obtained through short-term contracts provide the information on land value and risk assessment that potential buyers and banks need, and thus help to strengthen land markets.(Razzaz, 1995)
11 Foreign Investment In Humanitarian Aid
Stabilization policies, including public sector layoffs and reduced social services, have improved the government's fiscal situation and reduced inflation. Foreign assistance and humanitarian aid have supported the recovery. Large segments of the population, especially those living in urban areas, continue to depend on humanitarian aid to meet basic food requirements. Unemployment remains a severe problem.(US Dept Of Commerce, 1997)
Italy has distributed humanitarian assistance to Albania. Italian servicemen issued 664,000 tones of food and clothing - some of it on behalf of the EC - and carried out 205,369 medical examinations and operations between autumn 1991 and December 1993. But, like other countries, Italy does not welcome illegal migrants from Albania. (tlingit.elmail.co.uk, 1995)
In addition to the 3 million Albanians living in parts of the former Yugoslavia, there are many Albanian migrants and refugees, both legal and illegal, in Italy, Greece and the United States. According to Dr Berisha, the 300,000 Albanian refugees abroad send home some $500 million a year to their families. The country depends partly on these remittances to support its balance of payments. (tlingit.elmail.co.uk, 1995)
12 Foreign Investment In Infrastructure
The country's transition to a market economy has accelerated population growth in Albania's major cities, in particular in Tirana. An acute housing shortage and rapid expansion of informal settlements have been the result of an annual addition of about 35,000 people during the past 5 years. An already fragile urban infrastructure system is no longer able to cope and over 40 percent of Tirana's population are estimated to have no or highly unsatisfactory access to basic urban services: water, drainage and sewage, roads, electricity. The environmental costs of the this pattern of urban growth are mounting and the Government of Albania as well as the City of Tirana and the District of Tirana are determined to alleviate these pressures. A two fold approach is being pursued by the Government: (i) to improve the supply of trunk infrastructure through rehabilitation and expansion of the primary networks (water, sewage, roads, electricity) and (ii) to increase the supply of secondary and tertiary infrastructure in areas where there is effective demand for such services. Preliminary estimates indicate total project costs of about US$22 million of which US$20 million would finance infrastructure investments and US$2 million the strengthening of urban planning and management capacities. An IDA credit of about US$10 million is under consideration. The beneficiaries would finance an estimated US$3.5 million for the provision of tertiary infrastructure. The Government may want to ask interested donors to support the Project in the order of about US$2 million in grants for technical assistance. The remaining US$6.5 million would be contributed by the Government or possibly, in part, through donor funds.(Thalwitz, 1997)
In 1995, the World Bank approved an IDA Credit equivalent to $6 million to help the Government of Albania finance a rural development project. This Rural Development Project expanded upon a 1993 IDA-financed ($2.4 million) Rural Poverty Alleviation Project. The two main components--improving rural infrastructure and small-scale lending--of both projects have had a very participatory approach. Under the combined projects, about 350 small infrastructure rehabilitation subprojects have been financed in 28 districts of Albania. These subprojects, selected by the villages and communes, include rehabilitating dirt roads, village water supplies, small irrigation schemes, footbridges, schools, and health centers.(World Bank, Nov., 1996)
IDA in late August (1995) approved a $4 million credit to help Albania develop a five-year program to boost jobs and small-scale private businesses in urban areas. About half the money will go to give technical assistance to alleviate the 30 percent urban jobless rate through restoring markets, schools, waterways, hospitals, roads and other infrastructure, while most of the rest will be disbursed as loans to some 2,000 prospective small enterprises. (World Bank, Oct, 1995)
Many of the 400,000 newly created family farms lack basic tools, capital or credit. A $6 million IDA credit, approved in 1995, aims to help Albania develop its changing rural economy. The project focuses on improving vital rural infrastructure-including roads, markets, water and irrigation systems-and providing small-scale credit to more than 9,000 farmers. (World Bank, Feb., 1995)
The most recent IDA credit for Albania was approved on June 20, 1996, for a US$25 million National Roads Project that is designed to improve the country's road network, support replacement of maintenance and road safety equipment, promote the development of local contracting and consulting industries, and train local staff.(World Bank, June, 1996)
In Albania a US$25 million International Development Association (IDA) credit was approved in June 1996 to help improve the country's national road network. The projects main objectives are to accommodate the growth in traffic expected with economic expansion, improve road maintenance and safety, promote the development of local contracting and consulting industries, and train local staff. The project is expected to play an important role in facilitating Albania's economic development, and will bring benefits in vehicle operation and road maintenance cost savings, as well as expected reductions in road accidents, promotion of domestic contracting and consulting, and institutional and environmental improvements. (World Bank, Feb., 1997)
Support from IDA includes: a US$8 million credit for a Forestry Project in April 1996; a US$29.5 million credit for a Power Transmission and Distribution Project in March 1996; a US$6 million credit for an Agro-Processing Development Project in December 1995; and a US$4 million credit for an Urban Works and Microenterprise Pilot Project in August 1995.(World Bank, June, 1996)
To date (1996), Albania has received 22 IDA credits totaling US$273 million. (World Bank, June, 1996)
13 Foreign Investment For Business
Albania's Rural Poverty Alleviation Project, developed by the World Bank's microenterprise credit program has had outstanding success. The small-scale credit component has created about 150 village credit funds. Over 6,000 small loans averaging $400 each have been disbursed. Loan decisions are made by a three member "village credit committee" selected by the villagers, and loan repayment is currently 100 percent as a result of social pressure.(World Bank, Nov., 1996)
In the Albanian project, Bank and government representatives met repeatedly with villagers who were the intended borrowers to determine the most efficient and effective method of providing credit; from these meetings emerged the unique and highly successful Village Credit Committee design. By March 31, 1994, forty village credit funds had been established in five districts, and 1,300 subloans had been disbursed. Loan repayment began in November 1993, and the loan recovery rate has been 100 percent.(Webster, 1994)
Albania's Rural Poverty Alleviation Project has spread development in other areas. For example, one VCC went beyond basic credit and started experiments to mobilize savings by soliciting contributions from its members. This project, particularly the provision of credit to small farmers, progressively creates new needs and, therefore, is growing and expanding at a rapid pace. Enabling farmers to purchase livestock has led to the creation of local "animal health associations," financed jointly by the RDF and farmer contributions. These indigenously derived associations, which ensure the vaccination of all livestock, are the first signs of a growing trend to diversify activities and a growing demand for technical assistance and larger amounts of capital lending. (World Bank, Sept, 1996)
Another example of progress, through discussions with the villagers and project members, it was learned that farmers wanted the loan ceiling raised. In the first phase of the project, most farmers had used their loans to purchase livestock. Now they wanted to invest in larger, more capital-intensive items, such as small tractors, mills, and transport. As a direct response to this feedback, the project was modified and loan ceilings were doubled from $500 to $1,000.(World Bank, Sept, 1996)
The progress of bringing in outside industry has not been so good. On a plane from Europe, a Canadian businessman coming from meetings, "discussing joint ventures in Poland and Hungary was asked whether he had considered starting something in Albania. 'From what I have read about all the starving kids there,' he said, 'I didn't want to get involved in a basket case'." (Berg, 1991)
14 Educational System
In Europe, Albania has the worse statistical record regarding the relative number of university students. (Markus, 1994)
Albania is fortunate to have a relatively high number (est. at around 300) of well educated surveyors who have graduated from the 5-year surveying program at the Polytechnic University of Tirana. The curriculum includes a strong mathematical and measurement science foundation in the first three years. The latter two years are more general than most surveying programs and deal with such diverse topics as Ecology, Urban Planning, Mining Technology, and Hydrotechnic Construction. The surveying program graduates approximately 20 students per year and has apparently maintained this level for the past 20 years. A large majority of these graduates are currently unemployed or are involved in some other line of work. (Barnes, 1995)
There are also a number of survey technicians who have specialized in surveying at the Middle School level (equivalent to high school in the US). The number of people with these qualifications is estimated at 500. The pool of expertise in the area of surveying and mapping appears to be adequate to support the development of a Cadastral Land Registration System. However, given the dramatic changes in land law and the introduction of a legal cadastre, additional training and education will be required to update the skills and expertise of both the university and middle school trained surveyors. (Barnes, 1995)
15 Other Social Issues
Dramatic improvements in Albania's economic performance have not yet eradicated under-development and unsanitary conditions, such as open sewers and food stalls near uncovered rubbish. In September 1994, there were 223 suspected cases of cholera. With 37 babies in 1,000 failing to survive their first month of life, Albania has the highest infant mortality rate in Europe. As part of the international community's effort to tackle these problems, Britain has made health care management a priority in Albania under her (Know How Fund) KHF. A British haemotologist has been working at the Blood Transfusion Center in Tirana since October 1993, training doctors in new techniques. He is also involved in the reorganization of the blood transfusion service and conversion to a voluntary, rather than a paid, system of blood donation.(tlingit.elmail.co.uk, 1995)
The privatization of farmland proceeded rapidly in Albania: by 1993 most of it was titled to households or individuals. One of the first signs that private ownership was paying off was a rapid increase in the livestock population, with increased pressure on grazing land. In Kyrgyzstan, early reform efforts stalled; in 1992 and 1993 there was chaos and uncertainty in agriculture. One result was a rapid decline in livestock from the unsustainably high numbers of the late Soviet period. This, in combination with lesser availability of state-provided transport, led to improvements in the condition of remote summer pastures. But pressure remained intense on pastures adjoining the farms, aggravated by a drop in feed grain imports after Independence. It is likely that, herds will grow as a consequence of privatization, and the summer pastures will again be threatened with overgrazing. Field research in both Albania and Kyrgyzstan shows that farmers are aware that access to both grazing land and farmland is essential for a successful transition towards sustainable, market-oriented agriculture, and that lack of progress on the former threatens their livelihood. Serious efforts are required to develop pasture administration regimes that respond to both to local socioeconomic conditions and national environmental priorities. (Bloch, 1996)
16 Other Problems and Situations
The other areas of interest defined in class were the condition of the land, the possible wealth disparity between classes, and human and technical resources issues. In these areas I have not found any information.
17 Current Reforms and Modernization
The formalization of property rights within land administration projects and programs typically involves the spatial definition and description (survey and mapping) of individual parcel boundaries. In many cases informal property rights have arisen because of overly expensive, slow and complex surveying methods. As Albania moves towards a private property system, boundary definition of millions of parcels is required. In countries like Belize, surveying has fallen behind the demand for registering freehold rights and state land leases, with the result that the formal record lacks an adequate spatial definition of parcels. In Albania, there is a crucial need for a surveying methodology that is quick, inexpensive and within the reach of the existing surveying professionals. (Barnes, 1996)
Over the course of the last several years, economic reforms in Albania have been oriented towards a free market and have demonstrated the need for property registration framework. The establishment of the Immovable Property Registration System (IPRS) has begun the creation of a property registration framework. The new registration system unifies land information including forest, pasture and urban cadastres as well as urban deeds registration. This one comprehensive system is based on land parcels instead of the former system which was based on land ownership. (Lamani, 1995)
The two main objectives of Albania's Immovable Property Registration System Project are to set up a comprehensive registration system and to develop options to consolidate land markets and encourage sustainable land use. (Jazoj, 1995)
According to the Constitution of 1976 (prior to 1991), land was owned completely by the state. Initial privatization began in 1991. According to the 1991 law, the buying and selling of land was still prohibited, but the buying and selling of buildings for citizens was permitted. In Albania the land was not given back to the ex-owners (those who owned land before the Totalitarian system), it was distributed to the families which lived in the villages. This was done because the ratio of agricultural land per person is very low, the majority of the population lived in the agricultural villages and the old boundaries and documentation for its recognition were practically non-existent. (Jazoj, 1995)
Before the IPRS, an urban cadastre has not existed, and the property registration offices (a deed system) did not function at all during the 15 years of the Totalitarian System. A number of commissions and agencies have worked for the privatization of property, and their documents for the recognition of the property go to the newly reestablished deeds registries only when the new owners decide to record them. The old Agricultural Cadastre Offices have received only the copies of the titles for the agricultural land, and are not organized to record transactions. (Jazoj, 1995)
In light of these problems, Albania set up the Immovable Property Registration System in 1993. The objective of this system was to set up a unique, comprehensive, and cost-effective system in order to register, present, update, and legally protect the public and private rights over the immovable property.
Over the past ten years GPS has emerged as a major tool for undertaking precise surveys. More recently, it has made inroads in those applications requiring lower precision surveys and is fast becoming a primary technology for acquiring data for input into geographical and land information systems (GIS/LIS). So-called "sub-meter" GPS receivers can provide coordinates which are sufficiently accurate for cadastral purposes in rural areas. More importantly, these receivers offer an opportunity to significantly lower the cost and time typically required for cadastral surveys. (Barnes, 1996)
Sub-meter GPS is Albania's sulution to quick and cost-effective parcel determination for registration. The GPS methodology tested and implemented in Albania utilizes differential pseudo-range positioning to do surveying and mapping of individual parcels. The minute size of land parcels (average of about 0.3 hectare), as well as the fragmented nature of land holdings, make time and cost very important issues. One benefit to Albania is that it already has a dense network of geodetic control points, approximately 4 Km in density. In their field tests, using a Pathfinder Pro XL, Albania was able to measure 29 parcels totaling 16 hectares, in just over 5 hours (not including adjudicating parcel boundaries). In Albania's case, it should be emphasized that speed and not accuracy is the critical criterion for surveying and mapping. (Barnes, 1995)
18 Recent Happenings
The most recent news from or about Albania in the last couple of months has reported a worsening progression of political turmoil. If Albania falls to civil chaos and revolutional war, all of the progress made in its economy, land registration, and social reform will be lost. The outlook for Albania doesn't look good. Here are some recent news articles to help visualize the countries growing problems.
"U.N. chief's call on Albania cheers Italy's..."
"Levan, Albania, 7-APR-97: An Albanian girl lies on a coffin in Levan April 7, during a burial ceremony for two of the refugees who drowned in a shipwreck off the coast in Italy two week ago. Up to 80 Albanians were reportedly killed after their Russian-built vessel sank because of a collision with an Italian Naval ship." (Reuters, Apr. 07, 1997)
"Albania on the Brink"
"United Nations, 9-APR-1997: The U.N. Security Council has given its blessings to an Italian initiative for a multi-ethnic "European force" to restore order in Albania. With due respect to Italy's historical paternalism toward Tirana, it is unlikely that the newest civil strife in the Balkans can be contained without first addressing its core causes." (Stavrou, 1997)
"The turmoil in Europe's poorest corner is not the result of pyramid schemes. It is about the promise of democracy repeatedly denied by President Sali Berisha and a network of corrupt officials. Though the Albanian people dumped Marxism in 1991, they have been thwarted repeatedly in their attempts to secure a modicum of freedom as we know it. Early in the game, Berisha packaged himself as the West's "indispensable" man in Tirana and a "factor" of stability. He is neither democratic nor stable. On the contrary, his insistence on staying in power ensures the spreading of conflict beyond Albania's borders." (Stavrou, 1997)
"Two Italian Warships Arrived In Albania This Morning" (April 11, 1997)
"Two Italian Navy ships and a transport plane carrying soldiers arrived this morning in Albania with a mission to start preparations for the deployment of the multi-national force in the country. Meanwhile, the group of specialists from 6 countries that visited Albania has completed the preparations for the arrival of the international force. According to information, a US satellite is watching the movement of the armed groups in the country and offers valuable information to the Italian government. Next Wednesday, are expected to arrive in Tirana and Vlora the first units of the Greek military force. In Italy, a discussion is underway in Parliament on Prime Minister Romano Prodi's policy in view of tomorrow's vote of confidence tabled by the Prime Minister himself after the decision of the Communist Refoundation Party to withdraw its support from the government and vote against the deployment of the multi- national force." (Macedonian Press, 1997)
"Albanians Will Decide On The Country's System Of Government In The Next Elections" (April 11, 1997)
"The Albanians will be called to decide on the system of government they prefer for their country in the next parliamentary elections. The decision was made in the meeting the representatives from the 10 major political parties in Albania had with President Sali Berisha during which they discussed the Albanian President's proposal for the drafting of a new Constitution before the elections. The proposal was rejected in spite of Berisha's arguments and persistence, as only two of the 10 political parties participating in the meeting namely, the Democratic Party and the Social-Democratic Union, backed his proposal. Nevertheless, the participants accepted the pro-monarchy party proposal for a referendum on the form of government in the country. According to the decision reached, the referendum will be held simultaneously with the upcoming parliamentary elections."(Macedonian Press, 1997)
"Italian-Led Force Lands in Albania"
"Durres, Albania, 15-APR-97: A French military vehicle drives off an amphibious boat from the French transport vessel Orage as it approaches the port of Durres to secure the area on April 15. The main seaborne landing force of the multinational security mission in Albania began arriving in this western port town to protect humanitarian aid convoys in violence-racked Albania." (Reuters, Apr. 15, 1997)
"Humanitarian Aid Arrives in Albania"
"Tirana, Albania, 16-APR-97: Greek soldiers secure the airport as a Greek C-130 Hercules plane lands at Tirana International Airport April 16. The first 120 Greek soldiers of a total of some 600 arrived to participate in an Italian-led U.N. approved force of up to 6,000 soldiers." (Reuters, Apr. 16, 1997)
19 Conclusion
With respect to Albania's cadastral land registration system, the major problems are the political system and their social unrest. There positive points are their eagerness to change the laws (not stuck in the past), and their educational system. Their past problems have been their lack of property rights and property laws, and lack of law enforcement. Their lack of enforcing legislation on collateral and debt collection has all but eliminated the use of land for credit.
Albania's registration system sounds solid and well thought out. My fear is that the political situation in Albania will change before the IPRS becomes entrenched enough not to be affected.
20 Appendix 1, Albanian Demographics
(From Video_On_Line, 1995)
21 Appendix 2, Two Current Laws of Interest
(From Albanian OnLine, 1995)
22 Appendix 3, Time Line
1939, Albania's King Zogu left Albania, when fascist Italy occupied the country
1941, The Albanian Communist Party was founded
1945, World War II ended for Albania
1947, Completion of the socialist revolution
1976, Stalinist constitution was adopted
1990, The Democratic Party (DP) was founded
1991, March, Stalinist constitution was replaced with am interim constitution
1991, December to 1992 Febuary, food riots, looting, many dead,
inflation = 100+ percent,
unemployment = 50%,
agricultural and industrial production had reached only half of their 1989 levels;
public services - such as electricity, water, refuse removal and transport - had broken down, and people depended on foreign food aid for their survival.1992, Febuary, the 4th government in less than 10 months collapsed
1992, March, Democratic Party (DP) was elected to power
(first non-communist government in more than 40 years)1992, April, Dr Sali Berisha became President of Albania,
new tax and customs laws
new laws on retail firms
inflation = 226%
Most agricultural land was privatized
Economy declined more than 7 percent1993, Economic growth reached almost 10 percent and has been growing steadily
1994, November, new civil codes, to help create market economy
(new laws on ownership and inheritance)1994, December, new constitution was rejected by vote
1995, July, possibilities for foreign nationals to purchase land in ALBANIA for the first time because of more new laws
1995, GDP attaining 77% of 1989 levels
inflation = 7.9 %1997, Riots, armed rebel uprisings, and civil unrest. possibility of civil war
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