Lottery riot

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Ammunition depots were looted all over Albania during the uprising.

In March 1997 Albania was hit by a deep economic, political and social crisis. The popular anger that erupted in the so-called lottery uprising was aroused by frauds in which many Albanians lost all their fortunes.

initial situation

Money changers on a street in Vlorë, symbolizing the informal economy of Albania

After the fall of communism , the young private sector, together with the remittances of the more than 400,000 Albanians working abroad, mostly in Greece and Italy , generated increasing domestic savings. In 1995 private wealth already amounted to 15% of the gross domestic product (approx. 350 million US dollars ). These added up to more than 600 million US dollars in 1995 and over 700 million US dollars in 1996, together with remittances from abroad. Because of the poorly trained banking system , only a small proportion of the assets were placed in savings accounts .

Pyramid schemes

The new class of inexperienced "money-holders" became easy prey for swindlers who promised huge interest rates to all those who got into their Ponzi scheme . In the beginning, they kept their promises and met their payment obligations with the money from the next wave of investors. Some of the people sold their (real) property in order to be able to “invest” additional money.

The total value of the deposits of all 16 pyramid companies before the outbreak of the crisis in the spring of 1997 - excluding the interest accrued up to then - added up to 1.2 billion US dollars, i.e. more than 50% of the then gross national product of the country. In appearance, the pyramid companies made smaller investments in production facilities and in the tourism sector. However, a lot of money also went into the pockets of the company owners. The links between organized crime , politics and the pyramid companies have not yet been clarified.

The collapse

In the last quarter of 1996, the interest rates paid by the pyramid schemes rose rapidly to 30%, then 40% and finally even 50% per month. The annual inflation rate was well below 20% and it was clear that the collapse was imminent. Ultimately, all but four pyramid schemes filed for bankruptcy in late 1996 and early 1997 , while others reduced their promised interest rates. The people, who wanted their money back, blamed the government: They failed to fulfill their supervisory duties and profited from the machinations.

The first mass protests took place in the southern Albanian city of Vlora , which quickly turned violent and spread to the south of the country and then to the rest of Albania. The final collapse of the pyramid systems escalated in February and March 1997 in an uprising against the government and in widespread opposition to state power. Public order completely collapsed in southern Albania as the insurgents looted military camps and armed themselves with firearms . The military and police were mostly on the side of the people and therefore did not act against the protesters or only acted half-heartedly. People's anger and disappointment were directed not only against the government, but also against businesses and government institutions such as archives, schools and hotels. The lack of state power was quickly exploited by many criminal gangs who plundered or appointed themselves local rulers. Interpol estimates that 100,000 blank passports have been stolen.

Transitional government and new elections

US Marines evacuate citizens from Albania on March 15, 1997 near the US Embassy in Tirana

Despite the nationwide protests, the parliament re-elected the then incumbent President Sali Berisha . Using a state of emergency , tanks and censorship, he tried to get the situation under control. On March 9, 1997, the country's parties were able to agree on a broad-based transitional government. Bashkim Fino ( PS ) was appointed Prime Minister. Berisha was allowed to remain president until the new elections, which were to be held within two months. By mid-March, the state had lost control across the country. Looted and destroyed everywhere.

With US , Italian and German helicopters (see Bundeswehr operation dragonfly ) foreigners were on aircraft carriers in the Adriatic and after Montenegro evacuated. Albanians also fled to the west.

In view of the hopeless situation, the transitional government asked foreign countries for military intervention. On April 16, 1997, 6,000 men from Italy, France , Spain , Turkey , Romania , Greece , Austria and Denmark landed in Albania. The so-called " Operation Alba " was under Italian leadership. The foreigners had the mandate of the UN to facilitate humanitarian aid and the orderly holding of new elections.

In the parliamentary elections on June 29, 1997, the opposition won; there was also a referendum on the restoration of the monarchy on the same day . The foreign troops stayed in the country for months. Little by little, order was restored. In some remote parts of the country, however, it took years before state power was restored.

literature

Web links

Commons : Lottery Riot  - collection of pictures, videos and audio files