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Archive for December, 2008

Posted by franksupa on December 28, 2008

I came across a great post from at .dailycamera.com about albania and it really amazed me how other people describe albania.

Below is the blog article:

” After some time wandering around in Skopje, Macedonia, a gritty, communist-block like city that seems to be trying valiantly to redefine itself, I found myself stepping onto yet another bus into the night towards Albania. This was another country I was a bit nervous about, mostly because every single person I had spoken to told me not to go. To be fair, none of them had been there which is how I rationalized going despite the warnings.
Albania has long been a traveler’s blacklisted country and it is only recently that it has opened up its borders. Like for Kosovo, I wanted to be one of the first let into a country with such a torrid reputation. I was a little apprehensive on the bus because it was just two men (the drivers) and me. But it turned out to be great. I was able to spread out and sleep in the isle, and the men were really nice and despite not speaking any English, their hospitality was impeccable. They tried to buy me coffee or food at every stop and just seemed to look out for me.
I got off the bus dazed at 5 a.m. in Tirana, the capital. I had no idea where I was. Like Macedonia, Albania is trying to give itself a face lift by painting every single building a different color. We are talking Easter egg colors here by the way. It was the full giant Crayola pack, not the small one. Knowing very little English would be spoken, I had armed myself with as many Albanian phrases as I could manage. I certainly attracted stares walking down the street with my backpack, but I felt very welcome.
Transportation in Albania is absurd. There are no bus stops, just plots of dirt throughout the city where buses sometimes stop. They leave haphazardly and just to make it a little more fun, they like to mix it up by constantly switching the plot from which certain destinations will depart from. I asked a girl in Albanian where the bus to Saranda would be. She laughed at my awful Albanian then dropped everything, got out of line for the bus she was waiting to board, took my hand, and led me along the street. She spoke maybe 10 words of English, to my 10 of Albanian but we babbled at each other. It should have been awkward but wasn’t at all because of her warmth. Apparently the Saranda bus plot had changed recently. We got to where she thought it was and had to ask someone else. He promptly dropped everything to walk us to the new plot. Soon we had a whole crew of Albanians joining out team and detouring from their day on a mission to help me find the right bus. When we finally did they all shook my hand or hugged me goodbye. The bus driver took out his wallet to show me how much money I was to pay and he didn’t even try to cheat me. I went across the street to get some coffee while we were waiting for the bus to fill. The waitress patiently held up each kind of coffee and milk for me to make sure I got just what I wanted with unending precision. On the bus the only other English speaker, a 10 year-old girl with great English sat next to me. We chatted about things you could talk about with a 10 year-old, sweet Albanian girl. Each time the bus stopped people would try to buy me food. I decided I never wanted to leave Albania.
There might not be much English spoken but that was the adventure of it. I got by through hand gestures and writing down numbers or showing money or just blindly guessing, it was all tremendous fun. I thought it would be frustrating but it never was. People could see I was a foreigner and wherever I was, they would buy me coffee and try to communicate in any way that we could, or just stop to say hello and shake my hand.
Sadly, for all the kindness of Albanians, the majority of the countryside I was was not nice. All the old cars that didn’t make it to Kosovo wound up in Albania. The communist urban sprawl is appalling and even the rivers had the glazed sheen of oil coating them.
Also disturbing are the 700,000 concrete bunkers that are scattered everywhere. They are in front yards, fields, mountain sides, everywhere.
Later, an Albanian that had lived in Canada so he spoke English told me that the government had convinced them that the entire world was against them so they built all the bunkers. He said that the cost of building one bunker is equivalent to the cost of building a one-bedroom apartment. That’s a lot for a poor country.
The whole time I was in Albania, the hospitality was unending. Anyone who spoke any English at all wanted to come talk to me and seemed genuinely happy to share their country with me. Despite the challenge, or maybe because of it, Albania was one of the most rewarding places I have ever been. “

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former Serbian province of Kosovo

Posted by franksupa on December 28, 2008

Two events got 2008 off to a running start in the Balkans.

The first was the narrow victory of Serbia’s pro-democratic president, Boris Tadic, in early elections against an ultranationalist rival, Tomislav Nikolic.

The second was an independence declaration by the former Serbian province of Kosovo, where 1.8 million ethnic Albanians celebrated the end of their long wait for statehood.

Together, those February events appeared to mark a turning point for the former Yugoslavia — a break from the ethnically driven politics of the past, and a step toward greater integration with the West.

There were other signs of a growing political maturity, as well.

Slovenia, the EU’s only Balkan member, assumed the rotating EU presidency at the start of the year pledging a smooth transition for Kosovo and improved ties between Brussels and Belgrade.

In April, Croatia and Albania received invitations to join the NATO military alliance. (A third country, Macedonia, had its invitation blocked by Greece amid a lingering dispute over its name.)

And Radovan Karadzic — the former Bosnian Serb leader seen as an architect of the Srebrenica massacre and the siege of Sarajevo during the 1992-95 Bosnian war — was arrested in Serbia in July, after 13 years in hiding.

The so-called “Butcher of Bosnia” will now be tried at the UN war crimes tribunal in The Hague on charges of genocide and crimes against humanity. It’s a move some hope may bring a sense of closure to one of the grimmest chapters in the Balkan wars of the 1990s.

“His arrest is very important for the victims of the war and genocide in Bosnia,” says Senad Pecanin, the editor in chief of “Dani,” an independent Sarajevo weekly. “It obviously brings a kind of relief for them and their expectations of justice. It was late — his arrest was expected much earlier. But it was still a very important moment in the current history of Bosnia.”

Kosovo Fallout

As 2008 comes to a close, however, any steps toward reconciliation and stability seen in those early months have given way to a more muddled and volatile picture.

The focus of Kosovo’s debut as an independent state quickly shifted from the fireworks and jubilation in Pristina to mounting anger in Serbia, where officials refused to acknowledge the loss of a territory they consider the cradle of Serbian civilization.

Just days after the Kosovo declaration, Serb protesters angered by Western support for Pristina’s independence mobbed the streets of Belgrade, setting fire to the U.S. Embassy and attacking other diplomatic buildings.

Boris Tadic

The violence soon dissipated, only to be replaced by a bureaucratic affront, with Serbia blocking for nearly six months the transfer of administrative powers in Kosovo from the existing mission of the United Nations to EULEX, the new team run by the European Union.

Tiny Kosovo ends 2008 with dangerous divisions remaining between the Albanian majority and its Belgrade-backed Serb minority. A defiant cluster of EU states — Spain, Greece, Cyprus, Slovakia, and Romania — have yet to recognize the Pristina declaration, complicating efforts by Brussels to address the Kosovo issue with one voice.

Still, Peter Palmer, the Balkans project director for the International Crisis Group, says from Pristina that the transition is going “more smoothly than anyone would have dared to hope.”

“This is irreversible. There are those, of course, in Belgrade but also nonrecognizing states — Russia and five EU members — who have not accepted it. But no one else has put forward a viable alternative to Kosovo independence,” says Palmer. “It’s certainly true that things have not gone exactly as the recognizing states and Kosovo itself would have hoped. It’s not an ideal situation. But nevertheless, Kosovo independence is a reality.”

The Kosovo declaration had far-ranging ramifications, most notably in Georgia, where separatists in the breakaway regions of South Ossetia and Abkhazia cited Pristina’s example in making their own independence bids with full recognition from Moscow.

Within the Balkans, Kosovo’s independence was seen as reigniting old tensions. A number of ex-Yugoslav states stepped forward to recognize Pristina’s independence, to Serbia’s mounting displeasure. When Macedonia and Montenegro became the 50th and 51st states to recognize Kosovo, Belgrade denounced the move as a betrayal and expelled both countries’ ambassadors.

In Bosnia, Simmering Unrest

Bosnia-Herzegovina was the one state besides Serbia not to recognize Kosovo. That, however, did not prevent Milorad Dodik, the voluble prime minister of Bosnia’s Serb entity of Republika Srpska, from using Kosovo as a precedent he said could clear the way for a theoretical secession from Sarajevo.

That threat is part of a running nationalist feud between Dodik and his Bosniak rival, Haris Silajdzic, the Muslim member of the country’s tripartite presidency, who himself has called for the abolition of Republika Srpska.

The fragility of Bosnia’s power-sharing agreement, brokered by the international community in the Dayton peace accords in 1995, is serving as a reminder in Kosovo that Western-imposed solutions are not necessarily a fail-safe guarantee against ethnic discord — particularly in instances where Belgrade is intent on protecting the interests of the region’s Serbs.

The rising tensions have also sparked fears of a new regional war in multiethnic Bosnia — fears that James Lyon, a Balkans expert with the Democratization Policy Council, says the West should move quickly to counteract.

“If we see violations of Dayton, we may be seeing first and foremost violations of what is primarily a cease-fire, with the implications for that,” Lyon says. “Both sides are now accusing the other of re-arming. And if the Serbs are accusing the Bosniaks and the Bosniaks are accusing the Serbs of re-arming, then there’s probably a good reason to believe that there’s a grain of truth to the complaints of both sides.”

Lyon says part of the problem lies in the fact that the international community — and the EU in particular — has allowed Serbia to pursue with impunity its policy interests in neighboring states, often at the expense of regional stability.

Brussels is eager to bring Serbia — the biggest and most obstinate of the former Yugoslav states — into the EU fold. The result, says Lyon, is a kind of “Serbian exceptionalism” in the EU’s Balkans policy, whereby Belgrade is offered sweeter incentives and milder penalties than other countries making steadier progress toward EU membership.

Managing Belgrade

Brussels this year offered Serbia a Stabilization and Association Agreement, or SAA — a deal seen as a key step toward EU membership. Although Belgrade was not seen as falling short on some reforms required for an SAA, the offer was seen as placating Serbia for the EU’s nearly unanimous backing of Kosovo’s independence declaration.

Radovan Karadzic faces the UN court in The Hague on August 29.

Belgrade, in turn, handed over Karadzic, in a move that earned it near-instant praise from Hague and EU officials. But a handful of EU countries, particularly the Netherlands, say no more concessions will be forthcoming until Serbia arrests Ratko Mladic, Karadzic’s army commander during the Bosnian war and the top remaining Hague suspect still at large.

Serbia is not considered likely to produce such an arrest, however. Mladic enjoys the continued loyalty and protection of the Serbian Army. His testimony, moreover, could potentially reveal lines of command in operations like the Srebrenica massacre — something that could ultimately prove deeply damaging to the political and military elite in Belgrade.

There are high-profile issues, like Mladic, that demonstrate Serbia’s limitations as a viable EU partner. There are also more mundane ones, like Belgrade’s continued failure to bring its laws in line with Schengen visa standards that are highly desired by the Balkan public.

Then there is Tadic, whose Western backers watched with disappointment as his Democratic Party struck a coalition deal with the Socialists, the former party of deceased Serbian strongman Slobodan Milosevic, after parliamentary elections in the spring.

“Tadic’s choice of coalition partner indicates very clearly that European integration is not necessarily as strong as he would like the West to believe it is in terms of his government’s priorities,” says Lyon. “He chose a very, very right-of-center party that is the party of Slobodan Milosevic. It’s a party that no one in their wildest dreams here in Serbia today would associate with being pro-European.”

Europe, of course, is not the only player in the Balkans. Many in the region hope the United States, preoccupied under the Bush administration by wars in Iraq and Afghanistan, may redirect some of its attention to the former Yugoslavia when Barack Obama enters office in January, bringing with him a vice president and cabinet members who are well-versed on Balkan issues.

Challenges Ahead

And then there is Moscow, which in 2008 continued to wield considerable influence over the Balkans, serving as a kind of counterbalance to the West. Russia acted as Serbia’s booster in UN Security Council debates on Kosovo and continued a regional energy-driven spending spree.

But while Russia’s patronage has been largely welcome, some of the deals have sparked controversy in the Serbian government. Moscow’s plan to purchase NIS, Serbia’s state energy company, has divided lawmakers because the deal fails to guarantee an initial promise by Russia that its strategic South Stream pipeline would run through Serbia. Refusal to proceed, however, would almost certainly mean an abrupt end to Moscow’s support on Kosovo and other issues.

The question, however, may become moot if the global financial crisis ultimately sets back the Kremlin’s energy-expansion plans.

If 2008 was the year of Kosovo and Karadzic, 2009 may easily prove the year of economic meltdown in a region that still has some of the highest unemployment and poverty figures in Europe.

Adding financial instability to a region already riven by rising ethnic tensions may see the Balkans putting aside a vision of the future and returning to the problems of the past.

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Russia and Albania in the early 1990s

Posted by franksupa on December 28, 2008

Dec. 26 (Bloomberg) — Post-Communist capitalism was a rough business in places like Russia and Albania in the early 1990s, a Wild East where fraudsters and scam artists danced circles around the poor and the naive — the rest of the population.

Millions of people, many of them little old ladies, or “babushki’ in Russian, were bilked of their privatization vouchers, savings accounts and whatever cash they had stashed in pillows as a hedge against annual inflation rates of 1,000 percent or more.

Now, in the post-Bernard Madoff era, it is clear that financially uneducated Russians and Albanians have a lot in common with millionaires like filmmaker Steven Spielberg, whose Wunderkinder Foundation lost money in the New York financier’s alleged pyramid scheme.

As it turns out, poverty, ignorance and isolation aren’t prerequisites for falling victim to a pyramid, or Ponzi, scheme. All you need is to believe someone when they tell you they can double your money.

Who would know better than Sergei Mavrodi, the man behind MMM, Russia’s biggest investment pyramid scheme which collapsed in 1994, costing some 2 million Russians an estimated $1.5 billion?

Interviewed on Russia Today, a TV news channel, on July 11, 2007, after his release from four years in prison, Mavrodi scoffed at the idea that his scheme never would have worked in western Europe.

“Of course, it would work not only in Russia, but in any country,” he said. “If you give money away, who is not going to take it?”

Easier Pickings

The interviewer pressed on, noting that in France, or Belgium, systems are in place to stop such things. “Let me assure you, in Belgium, it would be even easier than here,” said Mavrodi. “Here in Russia, people are illiterate; it is difficult to explain things to them. People there understand things. I managed to do it, but I don’t know why nobody there does it.”

Well, it turns out they did do it in the West, right on Park Avenue. And as Mavrodi said, it worked even better with the financially savvy than it did with people struggling to stay afloat in a transition economy. Madoff has confessed that his “giant Ponzi scheme” may have cost clients as much as $50 billion, according to a Federal Bureau of Investigations complaint.

No-Frills Pyramid

The MMM scheme in Russia was more modest, although at its peak in 1994, it was considered the most brazen of its time. It ran an aggressive advertising campaign on television, featuring a character named Lyonya Golubkov, a bulldozer operator, who pitched the deal with a simple phrase, “Eto Prosto Yo-Moyo,” roughly translated as “It’s simply frigging awesome.”

This was a no-frills pyramid: those buying in were paying off those who were getting out, a loop that works as long as more gullible people join up.

There were dozens of such schemes, as Russians tried to figure out what to do with their privatization vouchers — a piece of paper representing their share of the national wealth, issued in October 1991 to 150 million people at a face value of 10,000 rubles, or about $25. A voucher’s worth plummeted almost immediately, as inflation took off, eating away at the value of the ruble and at people’s trust in the new capitalist era.

So it’s no wonder people went running after MMM, and other flim-flam investment schemes with names such as Revenge, or NeftAlmazInvest, literally translated as OilDiamondInvest, which as it turned out, had no investments in either.

Sude the Gypsy

In Albania, the pyramids appeared later, with even more devastating consequences for the national economy. By 1997, the amount taken from Albanians by at least 10 separate schemes had reached almost $1 billion, roughly two-thirds of the gross domestic product.

The meltdown began in November 1997 when a fund run by a 30 year-old former worker at a shoe factory, known only as Sude the Gypsy, stopped making payments. Other funds collapsed in rapid succession, rioting broke out, and the government collapsed.

Writing in 2000, Christopher Jarvis, then a senior economist with the International Monetary Fund, attributed the appeal of Albania’s schemes to “unfamiliarity with financial markets, the deficiencies of the country’s formal financial system.”

That’s not something Madoff’s investors can claim as an excuse. “In the end the best protection is just good judgment,” says Jarvis, now an adviser at the IMF. “If someone makes an offer that sounds too good to be true, it probably is.”

The solution? Jarvis says the Madoff case, like the one in Albania, proves the need for constant vigilance and aggressive regulatory supervision.

So maybe the U.S. should check out how Albania got out of its mess.

This article was from : http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_bohlen&sid=awhS9sW3.FtA

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