By the mid-1980s, Alia recognized that in order to ameliorate Albania's serious economic problems, trade with the West had to be significantly expanded. The Federal Republic of Germany (West Germany) was on the top of the list of potential economic partners. In 1987 Albania established diplomatic relations with West Germany, after first dropping claims for war reparations. Albania hoped to obtain advanced technology from West Germany, along with assistance in improving its agricultural sector and modernizing its transportation system. In November 1987, Albania signed an agreement with West Germany, which enabled it to purchase West German goods at below market prices; and in March 1989, West Germany granted Albania 20 million deutsche marks in nonrepayable funds for development projects.

Albania initiated discussions with many private Western firms concerning the acquisition of advanced technology and purchase of modern industrial plants. It also asked for technical assistance in locating and exploiting oil deposits off its coast. But the problems for Albania in pursuing these economic aims were considerable. The main problem was Albania's critical shortage of foreign currency, a factor that caused Albania to resort to barter to pay for imported goods. Tied to this problem was the economy's centralized planning mechanism, which inhibited the production of export commodities because enterprises had no incentive to increase the country's foreign-exchange earnings. An even greater problem until the 1990s was the provision in the 1976 Albanian constitution prohibiting the government from accepting foreign aid.

In addition to paying more attention to Albania's close neighbors and Western Europe, Alia advocated a reassessment of relations with other East European countries. A more flexible attitude was adopted, and relations with the German Democratic Republic (East Germany), Czechoslovakia and Bulgaria significantly improved in the late 1980s. In June 1989, the East German foreign minister Oskar Fischer visited Albania; he was the first senior official from the Soviet bloc to visit the country since the early 1960s. Alia personally received Fischer, and a number of key agreements were signed that led to expanded cooperation in industry and the training of specialists. By 1990 long-term trade agreements had been signed with most East European states. The Comecon countries were willing to accept Albania's shoddy manufactured goods and its low-quality produce for political reasons. After 1990, however, when these countries were converting to market economies, they no longer had the same willingness, which made it considerably more difficult for Albania to obtain much-needed foreign currency. The Albanian media, nonetheless, greeted the revolutions in Eastern Europe with favor, covering events with an unusual amount of objectivity. The government in Tiranė was among the first to attack Romanian dictator Nicolae Ceausescu and to recognize the new government in Romania. As far as the Soviet Union was concerned, however, Albania continued to be highly critical of its former ally and denounced Gorbachev's policy of perestroika. Apparently Albania was also concerned about what it saw as Soviet support for Yugoslavia's handling of the Kosovo issue. Nevertheless, the Soviet Union continued to call for improved relations with Albania.

Albania's attitude toward the United States traditionally had been very hostile. Relations with Washington were broken in 1946, when Albania's communist regime refused to adhere to prewar treaties and obligations. Alia showed a different inclination, however, after a visit to Tiranė in 1989 by some prominent Albanian Americans, who impressed him with their desire to promote the Albanian cause. In mid-February 1990, the Albanian government reversed its long-standing policy of having no relations with the superpowers. A leading Albanian government official announced: "We will have relations with any state that responds to our friendship with friendship." No formal contacts between the United States and Albania existed until 1990, when diplomats began a series of meetings that led to a resumption of relations. On March 15, 1991, a memorandum of understanding was signed in Washington reestablishing diplomatic relations between the two countries. United States secretary of state James Baker visited Albania in June 1991, following the CSCE meeting in Berlin at which Albania was granted CSCE membership. During his visit, Baker informed the Albanian government that the United States was prepared to provide Albania with approximately US$6 million worth of assistance. He announced that the United States welcomed the democratic changes that were taking place in Albania and promised that if Albania took concrete steps toward political and free-market reforms, the United States would be prepared to offer further assistance.

Alia's pragmatism was also reflected in Albania's policy toward China and the Soviet Union. The Albanian Deputy Minister of Foreign Affairs made an official visit to China in March 1989, and the visit was reciprocated in August 1990. On July 30, 1990, Albania and the Soviet Union signed a protocol normalizing relations, which had been suspended for the previous twenty-nine years. The Soviet-Albanian Friendship Society was reactivated, and Alia met with the Soviet foreign minister, Eduard Shevardnadze, when they were both in New York to visit the United Nations in September 1990. No longer were the United States and the Soviet Union considered to be Albania's most dangerous enemies.

Alia's trip to the United Nations was the first time that an Albanian head of state had attended an official meeting in the West. The purpose of the trip was to demonstrate to the world that Albania had a pragmatic and new foreign policy. While at the United Nations, Alia delivered a major foreign policy address to the General Assembly in which he described the changes that had taken place in Albania's foreign policy and emphasized that his country wanted to play a more active role in world events. In his address, Alia discussed the ongoing efforts of the Albanian leadership to adjust the external and internal politics of Albania to the realities of the postcommunist world.

The internal politics of Albania, driven by a collapsed economy, social instability, and democratic ferment, portend continued changes in the institutions of government in the early to mid-1990s and in the relationship between the country's leaders and its citizens.

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Materials on Albania are not as readily available as those on other countries in Eastern Europe. Nonetheless, a few useful monographs on Albanian politics and government have appeared. The Albanians: Europe's Forgotten Survivors, by Anton Logoreci, and Socialist Albania since 1944, by Peter R. Prifti, both of which were published during the 1970s provide useful accounts of political developments in Albania since World War II. Albania: A Socialist Maverick, by Elez Biberaj, offers a more up-to-date picture of the political scene in Albania, pointing out the positive and negative aspects of the changes taking place there. Among the more useful articles on Albanian politics is Biberaj's "Albania at the Crossroads," which analyzes political events in 1991 and offers a perspective on what might be expected for Albania's future. Also of value are the regular articles on Albanian politics by Louis Zanga, appearing in the Munich weekly Report on Eastern Europe, published by Radio Free Europe/Radio Liberty.

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Source: U.S. Library of Congress