Albanian Rebellion of 1997

In March 1997, Albania was hit by a deep economic, political and social crisis. The people's anger, which erupted in the so-called lottery uprising, was excited by scams, in which many Albanians lost their entire fortune.

Initial situation

After the fall of communism, the young private sector generated along with remittances from more than 400,000 abroad, mostly in Greece and Italy, working Albanians rising domestic savings. 1995 amounted to private wealth already 15% of gross domestic product ( about 350 million U.S. dollars). This added up with remittances from abroad to more than 600 million U.S. dollars in 1995 and to more than 700 million U.S. dollars in 1996. Due to the ill-trained banking only small parts of the assets were invested in savings accounts.

Pyramid Schemes

The new class of inexperienced "money holder" has been easy prey for swindlers who promised all those huge interest rates that went into their pyramid schemes. At first they kept their promise and came with their payment obligations with the money the next wave of investors after. People sold partially their (basic) property to "invest" extra money can.

The total value of deposits of all 16 pyramids companies totaled before the outbreak of the crisis in the spring of 1997 - without the previously accrued interest - to 1.2 billion U.S. dollars, more than 50 % of the former gross national product of the country. To note the pyramids companies actuated smaller investments in production and in the tourism sector. A lot of money but also wandered into the pockets of the company owners. The links between organized crime, politics and the pyramid companies are not understood.

The collapse

In the last quarter of the year 1996, the interest rates paid by the pyramid schemes increased rapidly to 30%, then 40 % and finally even to 50 % per month. The annual inflation rate was well below 20 %, and so it was clear that collapse was imminent. Finally, all reported up to four pyramid schemes late 1996 and early 1997 on insolvency, others reduced the interest rate promise. The people who wanted to return his money the government gave to blame: you have not exercised its oversight responsibilities and benefits from the machinations.

In the southern Albanian town of Vlora saw the first mass protests that were quickly violent and stretched to the south of the country and then to the rest of Albania. The final collapse of the pyramid schemes escalated in February and March of 1997 in an uprising against the government and in widespread resistance to state violence. In southern Albania public order completely broke down, as the rebels looted military camp and fitting out with firearms. Military and police were usually on the side of the people and therefore not or only half-heartedly went before against the protesters. The anger and disappointment of the people was directed not only against the government but also to businesses and government institutions such as archives, schools and hotels. The absence of state power was quickly exploited by many criminal gangs that looted or appointed to local lords. Interpol estimates that 100,000 blank passports were stolen.

Transitional government and new elections

Despite the nationwide protests Parliament the then incumbent President Sali Berisha reelected to office. Using state of emergency, tanks and censorship, he tried to master the situation. On March 9, 1997, the parties of the country were able to agree on a broad-based transitional government. Bashkim Fino (PS ) was appointed Prime Minister. Berisha was allowed to remain until new elections, which should be carried out within two months, President. By mid-March, the state had in the whole country lost control. Everywhere was looted and destroyed.

With U.S., Italian and German helicopters (see Bundeswehr operation level) were evacuated foreigners on aircraft carrier in the Adriatic and to Montenegro. Even Albanians fled to the West.

The transitional government asked given the desperate situation abroad to military intervention. On 16 April 1997 landed 6,000 men from Italy, France, Spain, Turkey, Romania, Greece, Austria and Denmark in Albania. The so-called "Operation Alba " was under Italian leadership. The foreigners had of the UN mandated to provide humanitarian assistance and the orderly conduct of elections.

In the parliamentary elections on June 29, 1997 won the opposition. The foreign troops still remained for months in the country. Gradually, the order could be restored. In some remote parts of the country but it took years for the state power was restored.