Illegal and dangerous: Albania's risky new real estate

"Those people are not producing anything, but they are trying to keep the area under their control," says Durres Mayor Miri Hoti, who says the squatters are hampering efforts to privatize the factory for use as a petroleum storage site. "We lack the funds to fence the area and prevent new construction" by squatters there.

But Romeo Eftimi, a Tirana hydrologist who has studied the site, says the government could do more. "Even fencing the area with a simple fence just to show it's dangerous – this could be done without waiting for big money or [internationally funded] projects," he says. "This is an urgent situation."

But elsewhere in Albania, there are more hopeful signs, as inventive leaders have begun restoring public faith in government, despite very limited resources.

In Tirana, Mr. Rama is giving the capital a low-budget facelift. Gone are the hundreds of illegal kiosks that had taken over the city's public spaces. New trash bins are popping up around a city where many people previously dumped household trash out their windows. Treacherous sidewalks have been repaired, while drab concrete apartment buildings are being repainted in bright colors.

"Edi Rama is one of a new breed of politicians who are emerging throughout southeastern Europe who understand that effective reform isn't just a question of following through on ruthless austerity programs," says Balkan expert Misha Glenny. "Edi is trying to give something back to people so they feel they have a stake in the political process and the future."

Rama, a onetime Albanian basketball star, says it is essential to restore hope to ordinary people. "Albania is like a station where everybody is waiting for a train or a boat ... or a beautiful man or lady to take them away because they've lost confidence in the government and any possibility of a better life," he says. "We don't have the resources to solve all our problems, but at least we can change the colors of the buildings, to show them that something is happening," he says.

Rama uses unorthodox strategies to improve tax collection and reduce corruption. Instead of hiring more police and tax collectors, he simply made procedural changes that reduced civil servants' access to situations involving cash payments. "When you have people being paid such low salaries and facing such indecent quality of life, you can't ask them to all be honest guys," he says. "It's better to keep them far from cash."

Population: 3.5 million

Religion: 70 percent Muslim 20 percent Orthodox Christian 10 percent Roman Catholic

Gross national income per capita: $1,230

Economy: Agriculture, 50 percent; industry, 30 percent; services, 20 percent

Politics/history: Monarchy established 1928. Invaded by Italy, 1939. Communist state established 1944-91. The reformist People's Democratic Party of Albania held power until a financial 'pyramid' scandal in 1997 sparked a national crisis. The ex-Communist People's Socialist Party of Albania is now in power.

Sources: World Almanac; Encyclopaedia Britannica; World Almanac; World Bank; Political Handbook of the World.

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