Albanian Economic Model Facing the Global Recession

Abstract

The Albanian economy after the 90’S entered in the tracks of the market economy. Entering into a new phase or a new economic system did not come as a result of an evolution or evolutionary process moving from feudalism to capitalism and from capitalism in its highest stage in imperialism but as a result of a revolutionary process1 which was followed by the overthrow of the socialist system. So Albanian economy moved from a fully centralized to a decentralized system based on private property and free initiative. This passage was made through a most constrained and not gradual passing. In this shift there are many positive but also negative issues. These advantages and disadvantages were also reflected in the attitudes of this economy facing the world global recession. In this section we will analyze the Albanian economic model facing global recession in 2008 and in the following years. We will perceive the economic model through the degree of privatization of economic factors, and not by the rate of application of political instruments to achieve macroeconomic indicators. We will treat the mentioned ones in light of Classical and Keynesian theory.

DOI: 10.5901/ajis.2013.v2n3p27