By Ben Andoni
In these days of endless promises before the ’25 elections, of insults and fabrications, where veteran politicians have sophisticated their language of communication — along with Berisha’s slips and gaffes and Rama’s exhausting exploitation of every asset, not to mention the nonsense of many candidates — a simple, fundamental question lingers in the mind of every Albanian who dares to think about the future: Why does Albania, rich from Enver Hoxha’s “Castle,” from the European passport of the ’30s envisioned by Rama, and from Berisha’s promised “Magnificent” tomorrow, still remain one of the poorest countries in the Balkans?
The question is more rhetorical because the answer is well known — or better said, easy to guess. It’s a phenomenon known as the “resource curse” or the “paradox of plenty.” It is indeed true: countries with abundant natural resources, like ours — rich in oil (we have one of the largest oil fields in Europe), gas, and various minerals — often experience slow economic growth, face massive corruption and poverty, and, above all, suffer from poor governance. This last issue has plagued us for decades — or more precisely, throughout the nearly 125 years of the Albanian state’s existence. This phenomenon has become almost canonical today, and good leaders worldwide have used it as a model — not to strip their countries of resources, but to create development modules.
Margaret Thatcher openly addressed this concern at an international forum toward the end of her leadership. “Countries are not rich in relation to their natural resources. If they were, Russia would be the richest country in the world. Angola would be very wealthy. And there are many other countries with vast natural resources, but they have not developed an entrepreneurial economy to harness those resources.
Russia has everything: oil, gas, diamonds, platinum, gold, silver, timber, wonderful farmland — yet it has been poor. It also has a very bad environment.
It’s countries with the wrong systems that have failed to create wealth and care for their people.
Look at the other side: Japan — no natural resources. Switzerland — no natural resources. Taiwan — no natural resources. Hong Kong — no natural resources.”
The list continues in both directions.
And yet, why doesn’t this well-known phenomenon mobilize Albanian officials differently? The problem isn’t so much the lack of resources for economic development, but the absence of a clear economic model — the real essence of our development failure. Our model has often been created and tailored to benefit only a few.
Data from the Deposit Insurance Agency shows that more than half — nearly 739 billion lek — is held by only 5% of Albanian citizens. Economic experts cite several reasons: development asymmetry and overreliance on a single industry; volatile commodity prices, which also fluctuate due to today’s global uncertainties; corruption and poor management — a distinctly Albanian phenomenon; and the so-called Dutch Disease — an economic concept where rapid development of one sector (especially natural resources) precipitates a decline in others. This phenomenon also results in a significant overvaluation of the national currency (which Albania is currently experiencing with the unnatural strengthening of the lek). Add to this the lack of economic diversification, making countries extremely vulnerable to global commodity market fluctuations.
Albania experiences significant volatility across various elements of its economy. Privatizations over the past 35 years are particularly concerning, having mostly left ordinary Albanians empty-handed while the benefits of their national wealth are enjoyed mainly by those with strong ties to government, who suddenly wake up as “strategic investors.” Even today, from politicians on both sides, it’s hard to hear any clear articulation about the country’s nouveau riche — those who became wealthy overnight.
In 2023, Albania saw a slight improvement, gaining one point over the previous year in the Corruption Perceptions Index, scoring 37 points and ranking 98th out of 180 countries, according to Transparency International — a modest 4-point improvement since 2012. However, it still ranks below Kosovo, North Macedonia, and Montenegro, although slightly ahead of Serbia (by one point) and Bosnia (by two points).
Compared to an average European Union worker, an Albanian worker’s productivity is only 26%. To grasp the gap, consider that the most productive workers on the continent — such as those in Luxembourg — achieve 170% of the European average, and Norway 146%.
Concerns over a sustainable economic model have not been properly addressed even in this election campaign, although Albania’s progress demands a major political consensus — to agree on a fiscal system that should remain stable for at least one or two decades. Unfortunately, even in this campaign, people are voting for party leaders, not for reason — and certainly not for Albania, if we are ever to lift the so-called “beautiful curse.”
This curse lingers in every discussion whenever we aspire for a different Albania — yet, all too often, we block each other.
There’s no need to recount the fate of countries that have surrendered to the resource curse, like Nigeria, Venezuela, and Angola. It’s more useful to recall the smart resource management of Norway and Canada — and the high standards they enjoy today.
Their recipe is simple yet challenging, found both theoretically and practically in every development manual:
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Diversify the economy;
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Implement effective governance and transparency;
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Invest in human capital and infrastructure;
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Promote sustainable development.
These are almost canonical challenges — where resource-rich countries can turn their wealth not only into sustainable economic growth but also into genuine love for their homeland.
The dream of making Albania “like all of Europe” is in every Albanian’s DNA — but the way to achieve it reveals just how impossible we find it.
And this election campaign once again exposes our frightening state-building complex, where the complex of Rozafa Castle coexists with the modern Kanun…
Or where the “beautiful curse” remains law even in the third millennium. (Homo Albanicus)
