Albanian Rebellion of 1997

Albanian Rebellion of 1997

Evacuation of U.S. citizens during Operation Silver Wake
Date 16 January - 11 August 1997
(6 months, 3 weeks and 5 days)
Location Albania
Causes Pyramid schemes failure, economic crisis
Result New Parliamentary Elections[1]
Parties to the civil conflict

Albania Rebels

Albania Government of Sali Berisha


ItalyItalian Armed Forces (Operation Alba)
GermanyGerman Armed Forces (Operation Libelle)
United States United States Armed Forces (Operation Silver Wake)
Greece Greek Armed Forces (Operation Alba, Operation Kosmas [2] and humanitarian aid)[3]

 NATO
Units involved
AlbaniaUnknown

Albania 30,000 soldiers


Italy 7,000 soldiers
Greece 803 soldiers[4][5]

Germany > 100 soldiers
Casualties
3,800, civilians and members of army, police and secret police
During the riots in the city of Vlorë, men broke rocks to hurl them at police.

The Albanian Rebellion of 1997, also known as the Albanian Unrest of 1997 (Albanian: Rebelimi i vitit 1997), or the Pyramid Crisis or (improperly) the Albanian Anarchy of 1997,[6] was an uprising sparked by Ponzi scheme failures. Albania descended into civil disorder and violence in which the government was toppled and 2,000 people were killed.[7][8]

By January 1997 the people of Albania, who had lost $1.2 billion (out of a small population of three million), took their protest to the streets. Beginning in February, thousands of citizens launched daily protests demanding reimbursement by the government, which they believed was profiting from the schemes. On 1 March, Prime Minister Aleksandër Meksi resigned and on 2 March, President Sali Berisha declared a state of emergency. On 11 March, the Socialist Party of Albania won a major victory when their leader Bashkim Fino was appointed prime minister. However, the transfer of power did not halt the unrest, and protests spread to northern Albania. Although the government quelled revolts in the north, the ability of the government and military to maintain order began to collapse, especially in the southern half of Albania, which fell under the control of rebels and Socialist forces.[9]

All major population centers were engulfed in demonstrations by 13 March and foreign countries began to evacuate their citizens. These evacuations included Operation Libelle, Operation Silver Wake and Operation Kosmas.[2] The United Nations Security Council, in Resolution 1101, authorized a force of 7,000 on 28 March to direct relief efforts and to restore order to Albania. The UN feared the unrest would spread beyond Albania's borders and send refugees throughout Europe. On 15 April, the 7,000 troops launched Operation Sunrise, an Italian-led mission that helped restore rule of law.[9] After the unrest, over 25 000 guns were transported to Kosovo and the guerrilla forces of the ethnic Albanian, Kosovo Liberation Army received considerable armaments.[10]

Causes

In 1992, the Democratic Party of Albania won the nation's first free elections and Sali Berisha became president. In the mid-1990s, Albania was becoming a liberalized economy, after years under Communism. The rudimentary financial system became dominated by Ponzi schemes and government officials endorsed a series of pyramid investment funds. By January 1997, the schemes (actually fronts for laundering money and arms trafficking) could no longer make payments. The number of investors who had been lured by the promise of getting rich quick grew to include two-thirds of Albanians.[7][11] It is estimated that close to $1.5 billion was invested in companies offering monthly interest rates ranging from 10 to 25 percent, while the average monthly income was around $80. People sold their homes to invest. Immigrants working in Greece and Italy transferred additional resources to the schemes.[12]

Political situation

On 26 May 1996, general elections were held and the Democratic Party won by a large margin. The Socialists (PS) accused the government of fraud and rejected the results. PS left the counting process and boycotted the parliament. On October 20, 1996, local elections were held. The Democratic Party won again, but the Socialists also rejected this result.

Pyramid schemes

The pyramid schemes started operations in 1991. Their activity was based on making payments to old investors using money contributed by new investors. The first scheme was that of Hajdin Sejdisë, who later fled to Switzerland with several million dollars. It was followed by "Sudja" of Maksude Kadëna in 1993, who had previously worked as a worker in a shoe factory. Then came "Populli" foundations run by an opposition politician and "Xhaferri". By the end of 1996, the schemes peaked. The interest rates that they offered were very tempting; Sudja offered 100% interest. The schemes were not criticized immediately because of a banking law adopted in 1994, which – on International Monetary Fund (IMF) advice – contained no provision that the National Bank of Albania act as a supervisor of commercial banks. The IMF changed two years later, after the consequences had become visible. Despite IMF advice to close these schemes, the government continued to allow their activities, often participating in them. Between 8 and 16 January 1997, the schemes collapsed. On 22 January, the government froze the Xhaferri and Populli firms. Gjallica, another firm, was nearly bankrupt, while Vefa, which had invested in Albanian hotels, fuel and factories, continued normal activity. The economic crisis was the worst in Albanian history.

The first protest was on 16 January in the South. On 19 January, in Tirana demonstrators protested the Sudja creditors. On 24 January, the de facto rebellion began.

Thousands of people in Lushnja, marched on city hall in protest against the government's support of the schemes. The protest quickly descended into violence. Police forces were routed and the city hall and adjoining cinema were burnt. One day later, on 25 January, Democratic Party Tritan Shehu chair was sent to Lushnje to resolve the situation. On his arrival, Shehu was held hostage for several hours at City Stadium and assaulted by the protesters. State Special Forces intervened in the city to extract Shehu. In the morning, every government institution in the city was looted and destroyed.

On 26 and 27 January, violence erupted in other southern towns, such as Vlora. On 30 January, the Forum for Democracy was formed by opposition parties to lead the protests. Anger was also directed against Berisha and the government for allowing the schemes to continue despite IMF advice. As allegations grew that Berisha and others in government had personally profited from the schemes, many became convinced that the Democratic Party had to be removed by force. This was especially true in Vlora. On 4 February, distribution of a portion of lost money began at the counters of the National Commercial Bank, owned by the state. Rather than subduing the protests, this action increased people's suspicion. A check of $550,000 paid by "Gjallica " firm on 7 January to the Socialist Party accelerated the firm's collapse. On 5 February, Gjallica declared bankruptcy and on 6 February violent protests resumed in Vlora. On 9 February, State Police were attacked in Vlora, and a day later, also in the South, fifty Special Force soldiers attacked and brutally dispersed protesters.

Hunger strike at the University of Vlora

Students of the University of Vlora began a hunger strike on campus on 20 February 1997 including about 50 students. They demanded the government's resignation and the full return of invested money. On 22 February, the Forum for Democracy declared its support of the strike. Students from Gjirokastër and Elbasan came to give their support. They were then driven by the FRESSH (Youth Wing of Socialist Party) activists of Vlorë to Tirana.

In contrast the students of University "Luigj Gurakuqi" in Shkodra, whose Students Union declared: "The students share the pain of the citizens of Vlora in losing money in pyramid schemes, but on the other hand, think that freedom and democracy, homeland and nation have a higher price".

On 26 February, thousands of people surrounded the building of the University to defend from feared attack by The National Intelligence Service SHIK (Shërbimi Informativ Kombëtar). The same day, a group of strikers requested more medical help, raising doubts about the doctors near them. On 27 February in Vlora Shkodra, mayor Bahri Borici of the United Right declared his support for the hunger strike. On 28 February 1997 was a decisive moment in Albanian history. After strengthening their perimeter around the building of the university, the rebel forces, without warning, attacked the SHIK building. In fighting between the rebels and government forces, nine people were left dead – six officers and three civilians. The killings of 28 February marked the start of a ten day civil war and a year of violence in southern Albania.

Ten-day civil war

Angry protesters throwing stones at law enforcers

Demonstrators would never have succeeded in overpowering the Vlora police if they had not been armed and organized by local mafia bosses and former members of the Communist-era secret police (Sigurimi), who saw this as their chance to damage the new political system. Typical of the latter was Albert Shyti, who returned from Greece with a private arsenal and set himself up as the head of the Vlora "Committee of Public Salvation" – a pattern replicated in other towns and cities in southern Albania.

Opening of the depots

Weapon depots looting in 1997

The Opening of the depots (Albanian: Hapja e depove) was the opening of weapon depots in the north, for protection against the violence of the south. The decision was taken by President Berisha. When in southern Albanian bases were looted, it was estimated that, on average, every male from the age of ten upwards possessed at least one firearm and ample ammunition.[13] In order to protect the civilians in north and central Albania, the government allowed civilians to arm themselves from government arms depots. During the rebellion 656,000 weapons of various types, along with 1.5 billion rounds of ammunition, 3.5 million hand grenades, and 1 million land mines were looted from army depots.[14]

International intervention

On 28 March the United Nations adopted Resolution 1101 for humanitarian aid to Albania and on 15 April Operation Alba forces began to arrive, finally withdrawing on 12 August. About 7,000 soldiers in the multinational Italian-led UN mission came to Albania to restore order and rule of law. The first forces were deployed in Durrës. Normality first returned to Tirana. An element of the Operation Alba forces continued in place, retraining the military to modern standards, which was joined from mid-May by members of WEU's Multinational Albanian Police element, doing the same with the Police after restructuring the legislative base which caused the problem.

Snap elections

In the run-up to the 29 June snap election for Parliament, more than 60 people were killed. Socialist Party allies won the election, including in Tirana. Many members of the "Rescue Committee" stood for office, despite earlier promises to remain out of politics. The same election included a referendum on the form of governance. Republican government outpolled the monarchy by 65-35.

North-South conflict

One of the main themes of Western media and analysts during the March riots was the North-South division. Various newspapers and TV stations claimed that the rebellion was not just a showdown between the two main political forces, but was also a clash between the northern (Ghegs) that supported Berisha and southern (Tosk) who supported the Socialist Party.

Gangs

Taking advantage of difficult situations, criminal groups armed themselves and took control of entire cities. Most had been imprisoned in Greece, but suddenly escaped and returned to Albania. The most famous case is that of Zani Caushi, who escaped from a high security prison of Larissa in February 1997 and, with a group of friends, established the gang of Coles in Vlora.

In Vlora, five gangs were created, but two ruled the city: the gang of Zani and the gang of Gaxhai. Movement in the city started at 10:00, when people gathered in Flag's Square to hear the Committee of Rescue, and ended at 13:00. After that hour the streets were deserted and the only people who moved were gang members. Gangs announced through speakers and flyers that other people were not to go out as there would be fighting. Each night brought attempted attacks with explosives and shooting, along with dozens of dead. In Berat, Altin Dardha's rule was even more severe. In Lushnje, Aldo Bare's gang had control. The worst crime that this gang committed was to behead an opponent. Cities ruled by gangs were Vlora, Berat, Tepelena, Memaliaj, Ballshi, Saranda, Gjirokastra, Lushnja, Pogradec, Cerrik and Tropoja.

Salvation Committees (Albanian: Komiteti i Shpëtimit Publik) were alleged criminal organizations set up during the rebellion in many regions, particularly the south. The committees periodically de facto usurped the functions of the Albanian state.[15]

Chronology of events

January

February

March

April

May

Socialist victory and Berisha's fall

Massive gunfire in Tirana celebrated Berisha's resignation. The insurgency ended.

Aftermath

Damage from the rebellion was estimated at 200 million dollars and some 3700 to 5000 wounded. Lawsuits were filed against the bosses of the rogue firms. Various members of the government, including Safet Zhulali and Agim Shehu, were sentenced in absentia.

In elections in June and July 1997, Berisha and his party were voted out of power, and the left coalition headed by the Socialist Party won. The Socialist party elected Rexhep Meidani as President of the Albanian Republic. All UN forces left Albania by 11 August.

See also

References

  1. Albanian Parliamentary Elections in 1997
  2. 2.0 2.1 Greek Army. "EVACUATION OF 240 FOREIGN DIGNITARIES FROM ALBANIA OPERATION "KOSMAS"".
  3. Tayfur, M. Fatih (2003). Semiperipheral development and foreign policy : the cases of Greece and Spain. Aldershot: Ashgate. p. 138. ISBN 978-0-7546-1964-2.
  4. Merriman, John (2010). A history of modern Europe : from the Renaissance to the present (3rd ed. ed.). New York: W.W. Norton. p. 1206. ISBN 978-0-393-93433-5.
  5. "Επιχειρήσεις στα Πλαίσια του NATO & της Ε.Ε. » Αλβανία". Hellenic Army General Staf. Retrieved 6 July 2011.
  6. Anarchy in Albania: Collapse of European Collective Security?
  7. 7.0 7.1 Christopher Jarvis, The Rise and Fall of Albania's Pyramid Schemes, Finance & Development: A Quarterly Magazine of the IMF, March 2000.
  8. Crisis in Albania. Public Broadcasting Service
  9. 9.0 9.1 John Pike. "Albanian Civil War (1997)". Globalsecurity.org. Retrieved 14 June 2010.
  10. "Kosovo: Background to crisis (March 1999)". Archived from the original on 15 May 2008. Retrieved 17 June 2010.
  11. "On War article". On War article. 27 November 2003. Retrieved 14 June 2010.
  12. Profile of Albania
  13. UNDP, Albanian Human Development Report 1998. Tirana: United Nations Development Program, 1999.
  14. "Albania 1997-1998 — Defence Academy of the United Kingdom". Da.mod.uk. Retrieved 2014-07-30.
  15. , 15 Janar, 16 Janar
  16. Agjencia Telegrafike Shqiptare :15 Janar
  17. Agjencia Telegrafike Shqiptare :16 Janar
    • Agjencia Telegrafike Shqiptare :18 Janar
  18. Agjencia Telegrafike Shqiptare :19 Janar
  19. Agjencia Telegrafike Shqiptare :20 Janar
  20. Agjencia Telegrafike Shqiptare :22 Janar
  21. Agjencia Telegrafike Shqiptare :23 Janar
  22. Agjencia Telegrafike Shqiptare :25 Janar
  23. Agjencia Telegrafike Shqiptare :26 Janar
  24. Agjencia Telegrafike Shqiptare :27 Janar
  25. Agjencia Telegrafike Shqiptare :29 Janar
  26. Agjencia Telegrafike Shqiptare :30 Janar
  27. Agjencia Telegrafike Shqiptare :31 Janar
  28. Agjencia Telegrafike Shqiptare :4 February
  29. Agjencia Telegrafike Shqiptare :6 February
  30. Agjencia Telegrafike Shqiptare :7 February
  31. Agjencia Telegrafike Shqiptare :8 February
  32. Agjencia Telegrafike Shqiptare :9 February
  33. Agjencia Telegrafike Shqiptare :10 February
  34. Agjencia Telegrafike Shqiptare :11 February
  35. Agjencia Telegrafike Shqiptare :12 February, 13 February
  36. Agjencia Telegrafike Shqiptare :13 February
  37. Agjencia Telegrafike Shqiptare :14 February
  38. Agjencia Telegrafike Shqiptare :17 February
  39. Agjencia Telegrafike Shqiptare :18 February
  40. Agjencia Telegrafike Shqiptare :20 February
  41. Agjencia Telegrafike Shqiptare :24 February
  42. Agjencia Telegrafike Shqiptare :26 February
  43. Agjencia Telegrafike Shqiptare :28 February

Further reading

Wikimedia Commons has media related to 1997 rebellion in Albania.
  • False Apocalypse: From Stalinism to Capitalism”, Fatos Lubonja, 2014, Istros Books
  • Rënia e Demokracisë”, Afrim Krasniqi, 1998, Eurorilindja (Albanian)
  • Shqipëria jashtë Veriut and Jugut”, Ibrahim Kelmendi, 1997, Zëri i Kosovës (Albanian)
  • Unë e pashë kush e dogji Vlorën”, Gëzim Zilja, 2000, Pelioni (Albanian)
  • Skaner 1997”, Gëzim Zilja (Albanian)
  • Kryengritje e tradhtuar”, Panajot Barka (Albanian)
  • Lufta jo civile”, Preç Zogaj (Albanian)
  • Humnerë ‘97”, Bashkim Fino (Albanian)
  • Viti ‘97, Prapaskenat e krizës që rrënuan shtetin”, Mero Baze, 2010, Toena (Albanian)