10 The effects of property laws on the process of restitution and compensation in post-communist Albania, under the framework of transitional justice. the legal framework in most of it did not leave enough time to evaluate the positive or negative effects of the implementation of this legal framework.15 Most of the problems which Albania currently faces in the field of property rights have their origin in the first laws adopted in the early 90’s of the previous century16. Both the economy and institutions were “fragile” and it was easy to develop them on the shoulders of such problem as the issue of property restitution. As Aleks Luarasi wrote in “Legal and Institutional Reform in Albania after the Democratic Revolution” like other Eastern European countries, even Albania, with the launch of a democratic system, aimed at establishing a rule of law and respect for human rights. One of the main points of rebuilding a democratic state is the creation of new institutions. All the structures of the totalitarian state were demolished and new institutional structures took their place.17 However, the new institutions also had problems in their functioning, not having a positive impact on the development of a democratic Albania. According to Transitional Justice measures, institutional reform remains one of the key points in achieving its goals and the effectiveness of the measures taken. The establishment of steady and efficient institutions remains a sine-qua-non for the functioning of the legal state and pluralistic democracy in Albania.18 The major disadvantage of the legal reform has been the non-consistent application of law and democratic principles. There are many components that have contributed such as lack of democratic tradition, grave economic shortages, the old mentality of the customary law that do not coincide with the modern principles of right, etc. The major factor has been the weakness of the legal institutions and their ineffectiveness to apply this new system of law.19 Many laws emerged from 1991 onwards that were alleged to correct what had happened. This reform began with the Law 7491, dated 29.04.1991 “On the main constitutional provisions”20, as amended, which brought about changes in the framework of the democratic organization of the state and played the role of a constitution (until the adoption of our Constitution of the Republic of Albania on 21 October 1998). Later, Law 7501 “On Land” was approved on July 19, 1991. It later proved to be one of the major obstacles to property restitution and compensation21 legislation. This law is today considered as the law that brought about all the legal, social, and inevitably political consequences and problems. It gave the lands of the former owners to the peasants who had worked them and who were not the real owners. In addition, not all these farmers were former owners, so they received someone else’s land. This led to the creation of major conflicts in Albanian society, because the land was not divided as it had been before it was nationalized. Such conflicts were the first signs of injustices done to former owners. Furthermore, the conflicting claims, court procedures and inherent uncertainty impede the progress of the reform. Initially, the Albanian state distributed real estate property to its citizens regardless of the fact that the property might have been unjustly confiscated by the former regime. According to Swinnen, when talking about equality of pre-collectivization asset ownership, he explains that this determines the potential conflict between the objectives of “equity” and “historical justice”. Empirical observations suggest that when social equity conflicted with historical justice, equity prevailed in the government’s choice. He continues by explaining that more than half of the Albanian population active in agriculture and a highly unequal pre-reform land distribution, land restitution would have transferred most of the fertile land into the hands of a small group of families, leaving the bulk of rural households without land. Instead, the government decided to distribute the land to rural households because the prime importance of the land issue for 15. Arjan Qafa, The issue of ownership during transition period in the former communist countries of Eastern Europe, as Poland, Hungary, Czech Republic and Albania.Academic Journal of Interdisciplinary Studies. (MCSER Publishing, Rome, Italy.Vol. 4. No 2. July 2015). 181 16. European Commission.Report on the protection of property in Albania. .(July 2017).1 17. Aleks Luarasi, Legal and institutional reform in Albania after the democratic revolution.(1991 - 1997). 33. 18. Aleks Luarasi, Legal and Institutional Reform in Albania after the Democratic Revolution.( 1991 – 1997). 33 19. Aleks Luarasi, Legal and institutional reform in Albania after the democratic revolution.(1991 - 1997). 49. 20. Law nr.7491 dt.29.04.1991 “On the main constitutional provisions”, as amended by Law No.7561 dated .29.04.1992 “For some changes and additions to the Law No.7491 dated .29.04.1991 “On the main constitutional provisions”. 21. Interviews with lawyers. April-May.2019