1997 rebellion in Albania

1997 rebellion in Albania

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1997 rebellion in Albania

The 1997 unrest in Albania, also known as the Lottery Uprising, was an uprising sparked by Ponzi scheme failures.

Causes
Overview
Aftermath
References
External links

Causes

In the mid-1990s, Albania was becoming a liberalized economy after years under a controlled economy; the rudimentary financial system became dominated by Ponzi schemes, and government officials endorsed a series of pyramid investment funds. Many Albanians, approximately two-thirds of the population, invested in them. By 1997 the inevitable end came, and the people of Albania, who had lost $1.2 billion (out of a small population of 3 million), took their protest to the streets where uncontained rioting, fueled by their discontent at the state's failure to protect them from the fraud, led to the toppling of the government and the country descended into anarchy in which some 2,000 people were killed.^[1]

Albania disintegrated into chaos and armed revolt soon after pyramid investment schemes failed in January 1997. The schemes (actually fronts for laundering money and dealing in weapons) could no longer make payments once the number of investors grew to include the vast majority of Albanians, who had been lured by get-rich-quick promises.

Overview

Beginning in February thousands of citizens gathered daily, demanding reimbursement by the government, which they suspected of profiting from the schemes. By March 1997, the protests had turned violent in the south, especially around the port city of Vlora, where numerous residents armed themselves with weapons looted from army barracks. On March 2 president Sali Berisha declared a state of emergency, but rioting and destruction spread throughout the country, gripping the capital, Tirana, for two weeks. Although the government quelled revolts in the north, the government and military establishments began to scatter and anarchy swept across the country, the southern half of Albania falling under the control of rebels and criminal gangs.^[2]

On March 11, the members of the Socialist Party won a major victory when their leader Bashkim Fino was appointed prime minister. However, the transfer of power did not stop the unrest, as protests spread to northern Albania. By March 13, all major population centers were engulfed in demonstrations, and foreign countries began to evacuate their citizens from Albania.^[2] (see Operation Libelle, Operation Silver Wake)

Fearing the spread of unrest outside Albania's borders -- and alarmed at the third wave of refugees from the country in a decade -- the United Nations authorized a force of 7,000 on March 28 to direct relief efforts and to restore order. On April 15, the 7,000 troops participated in "Operation Sunrise," an Italian-led mission which helped restore rule of law to the country.^[2]

After the unrest, over 300,000 guns were transported to Serbia's southern province of Kosovo and the guerrilla forces of Kosovo Liberation Army had received considerable armament for its fights.^[3]

Aftermath

In elections in June and July 1997, Berisha and his party were voted out of power, and all UN forces left Albania by August 11. The Socialists elected Rexhep Meidani as President of the Republic.