THIS WEEK IN ALBANIA, APRIL 19-25, 2008

UNCLAS SECTION 01 OF 02 TIRANA 000338

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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.

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POLITICAL DEVELOPMENTS
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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.

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ECONOMIC DEVELOPMENTS
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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

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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.

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THIS WEEK IN ARTS AND CULTURE
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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.)

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QUOTE OF THE WEEK
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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