The effects of property laws on the process of restitution and compensation
in post-communist Albania, under the framework of transitional justice.
the uncoordinated work of the institutions, often ineffective and sometimes overlapping with
the work of institutions, a malfunctioning land registration system, and widespread corruption.68
This report goes on to express concern that Albanian courts are overwhelmed with property
disputes that often permeate all instances of judgment, sometimes several times. Coordination
of institutions has been a problem frequently dealt with in European Commission reports. For
this very purpose, the State Cadaster Agency (2018) has been created, which aims to eliminate
problems such as coordination of institutions, by merging the Real Estate Registration Office
and the Agency of Legalization, Urbanization, and Integration of Informal Areas/Buildings. This
law is expected to bring about the positive effects and the purpose for which it was created.
3.4 The economy. According to Tom Allen69 the biggest fear when talking about restitution in
Central and Eastern European countries was exactly the fact that it would have a huge impact
on the economy, of the countries where the measures would be taken. The drafting of new
laws and institutional reforms has gradually brought many effects, both positive and negative,
in many areas of life. Unresolved chronic disputes and legal uncertainty over property titles,
hampered economic and land market development, curbed investment, and especially foreign
ones, jeopardized citizens’ confidence in democracy, overwhelmed the courts and above all
did not repair the violated rights. The European Commission reports and the ECHR in the
pilot judgment “Manushaqe Puto vs. Albania” emphasize how effective and how many legal
and financial consequences the frequent changes to laws bring; therefore such thing should
be avoided. One of the consequences of uncertainty over ownership of real estate property,
delays in litigation and law enforcement weaknesses are detrimental to the business climate.70
According to the 2018 report by Freedom House numerous property-restitution cases related
to confiscations during the communist era remain unresolved. Illegal construction is a major
problem, as is bribery linked to government approval of development projects.71Albania needs
to consolidate public finances and reduce the relatively high level of public debt, because the
financial bill poses a heavy burden on the Albanian state. Despite the fact that formal foreign
investment laws exist, insecure land ownership discourages investment in Albania. In general,
unsustainable land management and poor enforcement of property rights represent major
obstacles for companies, farms and households to enter the labor market. This has direct
consequences not only on land ownership but also on income generation and the frequency
of poverty.72 The dynamics of the current development of the Albanian economy and society
necessitate the completion of this process and the consolidation of property rights and other
rights deriving from it.73 The economy is considered the most closely related area of property
rights. According to David Leblang in “Property Rights, Democracy and Economic Growth”, the
direct link between the economy and property is seen at the right of owners to enjoy the item, use
it and make it part of the public/civil circulation. So the right to own, rent, sell, etc., has a direct
effect on the economy. If we draw a parallel between the right to property in a communist system
and the economy in a democratic system, we can freely realize that the existence of a private
property can bring a wider development to economy and its prosperity, and its non-existence
can bring the contrary because economic development it is deeply concentrated in one hand,
the state’s hand. According to this author, growth rates differ according to the regime type and
nations that protect property rights grow faster than nations that do not protect them.
https://2009-2017.state.gov/j/drl/rls/hrrpt/humanrightsreport//index.htm#wrapper
https://al.usembassy.gov/wp-content/uploads/sites/140/2019-English-HRR.pdf
Human Rights Report Albania 2018
68. The coordination of institutions today was thought to be systematized through Law 111/2018, “On Cadaster”. This law regulates
the public immovable property registration service, the organization of the institution responsible for this service and the manner of
administering the cadaster, as a public register of immovable property.
69.
70.
71.
72.
pdf
73.
Tom Allen, “Restitution and Transitional Justice in the European Court of Human Rights”.2006.
European Commission Progress Report on Albania. 2013. 16
https://freedomhouse.org/report/freedom-world/2018/albania 2018 Report for Albania
http://documents.worldbank.org/curated/en/845701468189564365/pdf/98254-ALBANIAN-CAS-P147570-PUBLIC-box393168B.
https://rm.coe.int/commentary-on-law-on-treatment-of-property-alb-/168094784a
19
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