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Growth without Development

Reasons for Failures in the Albanian Economy

Growth without Development: Reasons for Failures in the Albanian Economy

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At its core, the history of economics is nothing but an attempt to explain the diversity of growth, stagnation, and decline patterns in society over time, as well as to explore how the collisions resulting from human interaction produce vastly divergent outcomes. (North, 19901) In pursuit of such an explanation, at a conference on the causes of underdevelopment in Southeastern Europe, held in 1983 at Lake Como (Italy), Eric Hobson2 posed precisely such a question: "Why is Albania not as wealthy as Switzerland? Both are sparsely populated, mountainous countries with few resources, weak but independent states, suppliers of mercenaries and soldiers, and have largely lived in peace throughout their history." An intriguing question for any researcher, but one that requires a detailed investigation into the history, economy, politics, culture, and social aspects of the country, from its own history to the present day.

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