THIS WEEK IN ALBANIA, MAY 10-16, 2008

UNCLAS TIRANA 000386 SIPDIS DEPT FOR EUR/SCE DEPT OF JUSTICE FOR OPDAT, ICITAP E.O. 12958: N/A TAGS: PGOV PREL AL SUBJECT: THIS WEEK IN ALBANIA, MAY 10-16, 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. -------------- ECONOMIC DEVELOPMENTS -------------- ¶2. (U) WHERE REAL ESTATE IS STILL BOOMING: This week, the First International Conference on Real Estate Development took place in Albania's capital city. The conference brought together local and foreign experts of the sector, including real estate consultants, financial institutions, state officials, and local developers, for a series of presentations, panels and workshops. The conference's main goal was to provide an incentive for the development and improvement of the real estate markets in Albania and to create a place for networking and information exchanges for key players in the Albanian and European real estate markets. The most interesting presentations were related to the significant potential for development in tourism, retail space and industrial parks. ¶3. (U) The conference was the first large-scale attempt to advertise Albania's real estate potential to the international community. Once-isolated Albania badly needs further development in key real estate sectors to demonstrate its readiness for EU integration. Real estate development is also one of the key factors to attract foreign investors and enhance economic growth. Until now, Albania has experienced a real estate boom primarily due to the huge domestic demand for housing which fueled the construction sector as a strong engine for economic growth enjoyed by the country in recent years. ¶4. (U) There are a few foreign investors in place, including developers from Israel and Kuwait, but Albania needs to begin to attract investors from Eastern and Western Europe as well. Albania needs to follow in the footsteps of those countries most recently integrated into the EU, which experienced a real estate boom that seized a slice of European investment as they drew closer to EU membership. It is time for Albania to more actively promote its spectacular coastline and its desirable geographical location at the crossroads between east and west. The recent NATO invitation can be a boost to these endeavors, projecting an image of increased market stability and economic and political progress. -------------- POLITICAL DEVELOPMENTS -------------- ¶5. (U) PRESIDENT TOPI HIGHLIGHTS ALBANIAN COMPASSION: President Topi was in Israel this week to mark 60 years of Israeli independence and to highlight Albania's role in harboring Jews during World War II. Speaking at a panel in Jerusalem entitled "Facing Tomorrow," he was joined by past and present world leaders including his local counterpart Shimon Peres and former U.K. Prime Minister Tony Blair. Topi stressed that Albania not only protected its small Jewish population from deportation but sheltered hundreds of others on the run from the Nazi regime. -------------- THIS WEEK IN POP CULTURE -------------- ¶6. (U) BIG BROTHER IS WATCHING! Begun in the United States and having made its way through Europe, the popular reality TV show has now captivated Albanian audiences. Albania's version of "Big Brother" has even replaced various soap operas in order to be shown several times a day. While Orwell's initial idea that "big brother is watching" was a description of the suffocating feeling of being constantly watched, it has become these days in post-communist Albania the way to guarantee your 15 minutes of fame. Several auditions for the show have been mobbed by hopefuls. The show is like a popular drug for many teenagers and youth to escape from the daily realities of high unemployment and sub-standard education. -------------- QUOTE OF THE WEEK -------------- ¶7. (U) "At the end of World War II, Albania was the only country in Europe that could count a larger Jewish population than it had before the War began." President Bamir Topi, speaking in Jerusalem May 14. WITHERS