The country's foreign economic relations have been conditioned by its
leadership's economic goals and political persuasion. As a poor,
undeveloped country intent on modernizing and expanding its economy at a
rapid pace, Albania has had to rely heavily on foreign economic and
technical assistance during the post-World War II period. The
leadership's extreme Marxist orientation and hostility toward the
Western nations have precluded a recourse to non-Communist sources of
aid and have made the country entirely dependent upon contributions by
other Communist states. But even within the Communist sphere political
disagreements have had a disruptive effect on aid arrangements (see ch.
6, Government Structure and Political System).
From 1945 to 1948 economic and technical assistance was received from
Yugoslavia. After the political break between that country and Albania,
the Soviet Union assumed the role of major aid donor, and smaller
contributions were made by some of the East European Communist states.
Since 1961, when the substantial support of the Soviet Union was lost in
the wake of the political schism within the Communist world engendered
by the Sino-Soviet dispute, Albania has been able to obtain assistance
only from the People's Republic of China (Communist China). The
readjustment necessitated by the abrupt withdrawal of all Soviet aid and
technical advisers was said by Albanian leaders to have retarded
economic development by three years.
The extent of aid received in the form of long-term loans, some of which
became grants through debt cancellations, is only partially known. The
amount of total loan commitments by the Soviet Union in United States
dollar equivalents for the period of 1945 through 1961 was estimated by
one Western source at US$246 million. Another Western source reported
the amount of loans promised by the Soviet Union and the East European
Communist states for the 1961-65 period to have been in excess of
US$132.5 million. These loans were cancelled in their entirety in the
spring of 1961. A partial list of Soviet loan commitments, compiled by a
Western student from Soviet economic literature, totaled US$172 million
for 1957-61. The actual amount disbursed, however, was much smaller.
Aid deliveries, as reflected in official Soviet statistics, totaled only
US$39.4 million for the years 1955-61. Similar information on aid
deliveries from 1949 to 1954 was not readily available. Western
observers believe that the economic crisis created by the Soviet
withdrawal of aid forced Albania to default on the outstanding loans.
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