THIS WEEK IN ALBANIA, APRIL 19-25, 2008

UNCLAS SECTION 01 OF 02 TIRANA 000338 SIPDIS SIPDIS DEPT FOR EUR/SCE DEPT OF JUSTICE FOR OPDAT, ICITAP E.O. 12958: N/A TAGS: PGOV PREL ECON AL SUBJECT: THIS WEEK IN ALBANIA, APRIL 19-25, 2008 ¶1. (U) The following is a weekly report prepared by Embassy Tirana's local staff to provide political and economic context and insight into developments in Albania. -------------- POLITICAL DEVELOPMENTS -------------- ¶2. (U) A GRAND CELEBRATION OF THE PROPHET'S BIRTHDAY: More than two thousand followers of Islam filled Tirana's biggest convention center this last weekend to mark the birthday of the Prophet Mohammed. The festive event opened with the local madrassa's excellent and adorable young girl's and boy's choir and continued with recitations of the virtues of the Prophet from well known Albanian actors. Several popular singers then took the stage in what became more a concert than a traditional service. The audience broke into enthusiastic applause when one singer began a modern remake of a traditional song, keeping the audience on its feet for several minutes with clapping and singing, swaying to the beat. Noting this enthusiasm, Prime Minister Berisha praised the crowd, saying these believers embody Albania's long tradition of tolerance: "In meetings with heads of state and dignitaries, I have nothing more precious to share with them than our great religious tolerance, than our love and respect for each other's faiths." ¶3. (U) This was the third annual celebration under the patronage of the Albanian Muslim Community and sponsorship of Turkish religious foundations. The event highlighted the liberal characteristics of Albanian Islam, where its traditional and folk-like practices would be anathema to many Muslims living elsewhere. There was a conspicuous absence of the traditional beards and ankle-long pants for men, or headscarves and chadors for women, which are worn by a tiny but noteworthy number of mostly young Albanians. In a growing division, those educated abroad in the more conservative parts of the Arab world follow a less liberal branch of Sunni Islam. The few conservative Muslims in Albania reject gatherings such as this week's. The more liberal, nationalist wing of the Albanian Muslim Community has so far been able to minimize the influence of these conservatives, helped along by a growing presence and increased funding from Turkish rather than Arab sources. In spite of these differences, the annual festival confirmed again that the large number of Albanian Muslim believers are very much in tune with a unique Islamic-Albanian tradition. ¶4. (U) JOINT BORDER CROSSING POINT OPENS: A joint border crossing point between Albania and Montenegro was inaugurated at Muriqan-Sukobin this week, the first in the Western Balkans. The 1.1 million Euro project was financed by the European Commission as part of a broader 5.4 million Euro financial assistance package to build 11 border crossing points across Albania. The joint border crossing point at Murriqan-Sukobin houses one two-story building with separate offices for each nation, providing customs, police, veterinary and phyto-sanitation services. Among the dignitaries participating in the opening ceremony were Albania's Prime Minister Sali Berisha, Montenegro's Prime Minister Milo Djukanovic, Head of the European Commission Delegation to Albania Helmut Lohan, and Head of the EC Delegation to Montenegro Leopold Maurer. ¶5. (U) PARENTS FIGHT TO KEEP KIDS SAFE: A formerly defunct oil well located just outside the walls of a kindergarten was recently put back into use near the town of Fier. Parents of the approximately seventy children who use the playground were alarmed to have a working, and somewhat dangerously decrepit, oil well about four meters from their playground. Although they have filed a complaint with local authorities, parents remain concerned as long as the issue remains unsolved. -------------- ECONOMIC DEVELOPMENTS -------------- ¶6. (U) CREDIT WANTED: The considerable rise in world food prices is hitting Albanian consumers too. The consumer index for March reached 4.6 percent, past the ceiling of 3 percent established by the Bank of Albania, and future trends don't look promising. The Governor of the Bank suggested last week that the government should take immediate measures to support the agriculture sector as the only way to minimize the negative effects of the global crisis. ¶7. (U) Although agriculture provides about 23 percent of the GDP, and more than half the population lives in rural areas, Albanian agriculture suffers many constraints. Most of those living in the rural areas are subsistence farmers, with only a small portion producing anything for market. The import-export ratio, although improving, is still 7 to 1, an indication of the poor competitiveness of Albanian agricultural production. ¶8. (U) An important constraint to agricultural development is the TIRANA 00000338 002 OF 002 lack of credit availability for farmers. Although available credit is increasing, up 27 percent in 2007, commercial banks have allocated less than five percent of credit to agriculture, according to World Bank data. Some micro-finance and banking institutions target this sector, but credit remains considerably low. The GOA provided subsidies of about US $10 million aimed at increasing production, especially on high value crops like olive and fruit trees. ¶9. (U) Finding better ways to increase the flow of credit to the rural area and agriculture was the focus of a USAID workshop last week, where representatives of the public sector, farmers and agribusiness organizations, the financial sector, and international donors discussed the current situation and ways to improve it. Expansion of credit guarantee schemes, use of warehouse receipts, and agricultural leasing were suggested as new ways to increase the flow of credit to a sector that is vital for the whole Albanian economy. -------------- THIS WEEK IN ARTS AND CULTURE -------------- ¶10. (U) BALKAN FILM DAYS: Albania will send two movies to the first Western Balkan Film Days, organized by the European Commission (EC), which kicked off Monday in Brussels. Eight films were selected for the three-day event. Balkan Film Days is not only a highlight of the best recent films the Balkans have to offer, but also a showcase of the region's rich cinematic tradition. These films allow viewers to see Balkan countries in a different light and to rethink some of the long held and well entrenched misperceptions. The movies are screened in their original language with English subtitles. ¶11. (U) ALWAYS A REASON TO CELEBRATE: Albanians always find a reason to celebrate and be festive. This week the occassion was the opening of a new mall in one of the most popular neighborhoods, Komuna e Parisit. The opening ceremony was held on Thursday afternoon with fireworks, decorations, and several hundred people in attendance. The mall has a new Conad (a popular Italian chain grocery) in addition to a dozen clothing and home appliances stores. This is the third mall to open in Tirana in the last few years and is expected to be as popular and lucrative as its predecessors due to Albanian desire for western goods delivered in a western style. It can also point to the desire for more public space for cultural and entertainment activities for every segment of the population. (Tirana still has limited recreational opportunities and attractive public spaces.) -------------- QUOTE OF THE WEEK -------------- ¶12. (U) "We are celebrating the Prophet's birthday in the same year that Kosovar Albanians gained their independence after a century of wars and struggles. We are celebrating this year after a great historic event for Albania and all Albanians, that is, Albania's invitation into NATO." From remarks by Haxhi Selim Muca, head of the Albanian Muslim Community, at this week's celebration of the birth of Prophet Mohammed. WITHERS