1997 Albanian civil unrest

In 1997, Albania experienced widespread civil unrest due to economic problems caused by the collapse of pyramid schemes. The large sums of money siphoned from the government to fund these schemes led to the collapse of the Democratic Party's government in January 1997. The conflict, which lasted until August 1997, resulted in the deaths of more than 2,000 people. The establishment of a new government occurred as revolutionaries surrounded Tirana. Various sources also describe the ensuing violence as a rebellion or even a civil war.

1997 Albanian civil unrest
Evacuation of the United States citizens during Operation Silver Wake
Date 16 January – 11 August 1997 (6 months, 3 weeks and 5 days) Location Albania Result New parliamentary elections
Belligerents
Rebels Armed civilians who lost their properties Armed Gangs Albanian Army defectors Salvation Committees Monarchists	Government Democratic Party SHIK Part of the Albanian Police Republican Guard UNSC missions Austria France Germany Greece Italy Romania Spain Turkey United States
Commanders and leaders
	Sali Berisha (President) Bashkim Gazidede Safet Zhulali Gazmend Braka Thomas Klestil Jacques Chirac Helmut Kohl Costas Simitis Oscar Luigi Scalfaro Emil Constantinescu José María Aznar Süleyman Demirel Bill Clinton
Strength
Unknown	30,000 soldiers 7,000+ peacekeepers
Casualties and losses
2,000 civilians and members of army, police, and secret police.

During the riots in the city of Vlorë, men broke rocks to hurl at police.

By January 1997, Albanian citizens, who had lost a total of $1.2 billion, took their protest to the streets. Beginning in February, thousands of people launched daily protests demanding reimbursement from the government, which they believed had profited from the schemes. On 1 March, Prime Minister Aleksandër Meksi resigned, and on 2 March, President Sali Berisha declared a state of emergency.

On 11 March, the Socialist Party of Albania achieved a major victory when its leader, Bashkim Fino, was appointed prime minister. However, the transfer of power did not halt the unrest, and protests spread to northern Albania. Although the government quelled revolts in the north, its ability to maintain order began to collapse, especially in the southern half of the country, which fell under the control of rebels and criminal gangs.

By 13 March, all major population centers were engulfed in demonstrations, and foreign countries began evacuating their citizens. These evacuations included Operation Libelle, Operation Silver Wake, and Operation Cosmas, conducted by the German, American, and Greek military forces, respectively. The United Nations Security Council authorized a force of 7,000 troops under Resolution 1101 to direct relief efforts and restore order in Albania. The UN feared that the unrest could spread beyond Albania's borders and send refugees throughout Europe. Consequently, the US and NATO provided assistance by managing refugee camps, airlifting displaced populations across Europe, and securing the borders. On 15 April, a multinational peacekeeping force launched Operation Alba, which helped restore the rule of law in the country by late July.

After the rebellion ended, some of the weapons looted from Albanian army barracks and stockpiles were acquired by the Kosovo Liberation Army, with many making their way into the ensuing Kosovo War (1998–1999).

Terminology

The period has been described as a civil war, on the brink of civil war, or near civil war, and as anarchy, while others argue that it was not.

Causes

In 1992, the Democratic Party of Albania won the nation's first free elections, and Sali Berisha became president. In the mid-1990s, Albania was transitioning to a market economy after decades of a planned economy under the People's Socialist Republic of Albania. The rudimentary financial system soon became dominated by Ponzi schemes, and even government officials endorsed a series of pyramid investment funds.

By January 1997, the schemes, many of which were fronts for money laundering and arms trafficking, could no longer make payments, leading to their collapse. By then, the number of investors lured by the promise of getting rich quickly had grown to include two-thirds of Albania's 3 million population. It is estimated that close to $1.5 billion was invested in companies offering monthly interest rates ranging from 10% to 25%, while the average monthly income in the country was around $80. A significant number of Albanians had sold their homes to invest, and emigrants working in Greece and Italy transferred additional resources to the schemes.

1996 elections

Main article: 1996 Albanian parliamentary election

On 26 May 1996, general elections were held, and the conservative Democratic Party won by a large margin, securing 122 out of 140 seats in Parliament. The voter turnout was 89.1%. However, the opposition Socialists (PS) accused the government of election fraud and rejected the results. They proceeded to leave the ballot-counting process and boycott the parliament. Five months later, local elections were held on 20 October. The Democratic Party won again, but the Socialists rejected this result as well.

Pyramid schemes

Main article: Pyramid schemes in Albania

The pyramid schemes began operations in 1991. Their activity was based on making payments to old investors using money contributed by new investors. The first scheme was that of Hajdin Sejdisë, who later fled to Switzerland with several million dollars. It was followed by "Sudja," run by shoe factory worker Maksude Kadëna in 1993, and then by the "Populli" foundations, run by an opposition politician, and "Xhaferri." By the end of 1996, the schemes had peaked, with very tempting interest rates; for example, Sudja offered 100% interest.

The schemes were not criticized immediately due to a banking law adopted in 1994, which, based on advice from the International Monetary Fund (IMF), did not include a provision for the National Bank of Albania to supervise commercial banks. The IMF revised its advice two years later, after the consequences of the schemes had become apparent. Despite the IMF's recommendation to shut down these schemes, the government continued to allow them, often participating in them.

Between 8 and 16 January 1997, the schemes finally collapsed. On 22 January, the government froze the assets of the Xhaferri and Populli firms. "Gjallica," another firm, was on the verge of bankruptcy, while "Vefa," which had invested in Albanian hotels, the fuel industry, and factories, continued operating as usual.

The first public protests occurred on 16 January in the south of the country. On 19 January, demonstrators protested in the capital, Tirana, over the Sudja scheme. On 24 January, open rebellion effectively began. Thousands of people in the western town of Lushnjë marched on city hall in protest against the government's support of the schemes, and the protest quickly descended into violence. Police forces were subsequently routed, and both the city hall and the adjoining cinema were burned down.

One day later, on 25 January, Tritan Shehu, the leader of the Democratic Party, was sent to Lushnjë to resolve the situation. Upon arrival, he was captured by protesters and held hostage for several hours at the City Stadium, where he was also assaulted. Albanian Special Forces intervened to extract Shehu. By the morning of 26 January, every government institution in the city had been looted and destroyed, except for the Interior Ministry building, which was protected by the Director of Communications, seven of his engineers, and a guard who refused to abandon his post.

On 26–27 January, violence erupted in other southern towns, including the major port city of Vlorë. On 30 January, the Forum for Democracy was formed by opposition parties to try to lead the protests. Anger was also directed at President Sali Berisha and the government for allowing the schemes to continue despite IMF advice. As allegations grew that Berisha and others in the government had personally profited from the schemes, many became convinced that the Democratic Party had to be removed by force, particularly in Vlorë.

On 4 February, the government began distributing reimbursements for some of the lost money at subsidiaries of the state-owned National Commercial Bank. Instead of quelling the protests, this move backfired and increased public suspicion. A check for $550,000 paid by the "Gjallica" firm on 7 January to the Socialist Party accelerated the firm's collapse. On 5 February, Gjallica declared bankruptcy, and on 6 February, violent protests resumed in Vlorë. On 9 February, state police were attacked in Vlorë, and a day later, in the south, a group of 50 Special Forces troops attacked and brutally dispersed protesters.

Hunger strike at the University of Vlorë

On 20 February 1997, roughly 50 students at the University of Vlorë began a hunger strike on campus, demanding the government's resignation and the full return of invested money. On 22 February, the opposition Forum for Democracy declared its support for the strike. Students from Gjirokastër and Elbasan also came to show their support. They were then brought by FRESSH (the Youth Wing of the Socialist Party) activists from Vlorë to the capital, Tirana. In contrast, the students of the University of Luigj Gurakuqi in Shkodër did not participate in the protest. The Students' Union there declared that while "the students share the pain of the citizens of Vlorë in losing money in pyramid schemes, they believe that freedom and democracy, homeland, and nation have a higher price."

On 26 February, thousands of people surrounded the university building in Vlorë to defend it from a rumored attack by SHIK (Shërbimi Informativ Kombëtar), the national intelligence service. On the same day, a group of strikers requested additional medical assistance, raising doubts about the doctors available to them. On 27 February in Shkodër, Mayor Bahri Borici of the United Right declared his support for the hunger strike.

The next day was a decisive moment in Albanian history. After strengthening their perimeter around the university building, the rebel forces, without warning, attacked the SHIK building. In the ensuing fighting between the rebels and government forces, nine people—six officers and three civilians—were killed. This incident marked the beginning of a year of violence in southern Albania.

Angry protesters throwing stones at government forces

Looting and opening of weapon depots

The so-called "opening of the depots" (Albanian: Hapja e depove) refers to the opening of the army's weapons depots in the northern areas of the country on the orders of President Berisha. He justified this decision by citing the need to protect the population from the violence spreading from the south.

When southern Albanian bases were looted, it was estimated that, on average, every male aged ten and older had at least one firearm and ample ammunition. During the rebellion, 656,000 weapons of various types, 1.5 billion rounds of ammunition, 3.5 million hand grenades, and one million land mines were looted from army depots, according to the UNDP.

At the village of Selitë, near Burrel, a town 90 km north of the capital Tirana, an explosion occurred at an arms depot on 29 April after a group of villagers broke into the facility. The blast resulted in the deaths of 22 of the 200 village residents, most of whom were from the same family.

Treasury robberies

The Krrabë Event (Albanian: Ngjarja e Krrabës) refers to the theft of gold from the Albanian state treasury on 24 April 1997. The treasury, hidden in tunnels near Krrabë outside Tirana, contained 340 kg of gold ingots, banknotes, and other items. The perpetrators, who were later tried and received prison sentences, were: Arian Bishqemi (7 years), Blerim Haka (3 years), Pellumb Dalti (6 years), Enver Hyka (8 years), and Ahmet Hyka (4 years).

The Robbery of the Northern State Treasury (Albanian: Grabitja e Thesarit të Veriut) was the theft of approximately $6 million from the Albanian state treasury in Shkodër in March 1997. A group of six people attacked the fortified building with an antitank weapon. Although the building contained a total of $8 million, the robbers managed to escape with $6 million. The few police still in the city soon arrived at the scene and took control of the remaining assets.

Later, the thieves were seen by several witnesses meeting on the outskirts of Shkodër, where they divided the money among themselves. After the robbery, police and investigators began their inquiries in Shkodër. In the spring of 1998, more than a year later, the investigators closed the file, and it was handed over to the police for further investigation. The perpetrators of this crime remain unknown to this day.

International intervention

On 28 March, the United Nations adopted Resolution 1101 to provide humanitarian aid to Albania. On 15 April, Operation Alba began to arrive and withdrew on 12 August. Approximately 7,000 soldiers from the multinational, Italian-led UN mission were deployed to Albania to restore order and the rule of law. The first forces were stationed in Durrës, and normality began to return to Tirana. An element of the Operation Alba forces remained in place to retrain the military to modern standards. From mid-May, this unit was joined by members of the WEU's Multinational Albanian Police element, which worked to restructure the police and the legislative base that had contributed to the crisis.

Involved were:

• Italian Armed Forces (Operation Alba), with Italy as the lead nation for Operation Alba
• Greek Armed Forces (Operation Alba, Operation Cosmas) led by Lt Col Dimitrios Tzimanis
• Romanian Armed Forces (Operation Alba)
• Turkish Armed Forces (Operation Alba)
• Austrian Armed Forces (Operation Alba)
• French Armed Forces (Operation Alba)
• German Armed Forces (Operation Libelle) led by Col Henning Glawatz
• United States Armed Forces (Operation Silver Wake) led by Col Emerson Gardner

UN resolutions

Main articles: United Nations Security Council Resolution 1101 and United Nations Security Council Resolution 1114

These UNSC resolutions provide the basis for the establishment and execution of the mission (Resolution 1101) and its limited extension (Resolution 1114).

Evacuation operations

Main articles: Operation Libelle, Operation Silver Wake, and Operation Cosmas

In March 1997, several nations launched evacuation missions to remove their nationals, embassy personnel, and numerous other civilians by air and sea. Italy conducted a series of rescue flights and evacuations by sea without assigning an overarching operation name to these actions.

Peacekeeping

Main article: Operation Alba

As part of a peacekeeping mission based on UN Security Council Resolution 1101, a multinational protection force of more than 7,000 troops was sent to Albania in mid-April. By mid-August 1997, it had largely restored public order and secured new elections under OSCE supervision.

Snap elections

Main articles: 1997 Albanian monarchy referendum and 1997 Albanian parliamentary election

On 29 June 1997, Albania held a referendum on restoring the monarchy alongside early parliamentary elections. The referendum was rejected by 66.7% of the voters, while former Crown Prince Leka claimed that 65.7% had voted in favor. Meanwhile, the parliamentary elections resulted in an overwhelming victory for the opposition Socialist Party of Albania, which won 100 of the 151 seats, with a voter turnout of 72.6%.

Armed groups

Gangs

Taking advantage of the chaotic situation, criminal groups armed themselves and took control of entire cities. Most leaders had been imprisoned in Greece but suddenly escaped and returned to Albania. The most notable case is that of Zani Caushi, who escaped from the high-security prison in Larissa in February 1997 and, with a group of associates, established the gang of Çole in Vlorë.

In Vlorë, five gangs emerged, but two dominated the city: the gang of Zani and the gang of Gaxhai. The city's activity began at 10:00 a.m., when people gathered in Flag's Square to listen to the Committee of Rescue, and ended at 1:00 p.m. After that hour, the streets were deserted, with only gang members remaining active. The gangs announced through speakers and flyers that others should stay indoors due to impending fighting.

Each night brought attacks involving explosives and gunfire, leaving dozens dead. In Berat, Altin Dardha's rule was particularly harsh. In Lushnjë, Aldo Bare's gang held control, with one of their worst crimes being the beheading of an opponent. The cities ruled by gangs included Vlorë, Berat, Tepelenë, Memaliaj, Ballsh, Sarandë, Gjirokastër, Lushnjë, Pogradec, Çërrik, and Tropojë.

• Gang of Çole (Albanian: Banda e Çoles), based in Vlorë, was led by Myrteza Çaushi, known as "Partizan" and "Zani". Named after the Çole neighborhood in the eastern part of the city, which it controlled, the gang supported the Socialist Party.
• The Kakami gang, based in Vlorë and led by Fredi Nehbiu, controlled the western district of Babicë.
• Gang of Gaxhai (Albanian: Banda e Gaxhait), based in Vlorë and led by Gazmend "Gaxhai" Braka, was named after its leader. The gang consisted of members from Cerkovinë, Vlorë, and other southern cities. It was formed in March 1997 in Vlorë and was a primary rival of the Çole gang. The Gang of Gaxhai supported the Democratic Party (DP).
• Gang of Muko, based in Vlorë.
• Gang of Altin Dardha, based in Berat, was led by Altin Dardha.
• Gang of Aldo Bare, based in Lushnje, was led by Aldo Bare.

Salvation Committees

Salvation Committees (also known as People's Committees or the Committee of Public Salvation [Albanian: Komiteti i Shpëtimit Publik]) were organizations formed during the unrest in Albania. Established in many regions across the country, these committees sought to usurp the functions of the Albanian state. They were particularly influential in the south, where, early in the crisis, local Salvation Committees merged to form the National Salvation Committee, which demanded the removal of President Sali Berisha.

Many of these committees were rooted in local organizations affiliated with the Socialist Party of Albania and saw themselves as protectors of democracy against authoritarian, one-man rule. The Albanian government, however, perceived them as reminiscent of Communist-era local party organizations and, therefore, as a potential threat of a return to Communist rule.

Timeline

January

Money lenders in Vlora

• 8–16 January: Multiple pyramid schemes collapse, including "Kamberi," "Cenaj," "Silva," "Malvasia," "Kambo," "Grunjasi," "Dypero," "Bashkimi," "Beno," "Pogoni," "B&G," "Kobuzi," "Arkond," "Adelin," "A. Delon," "Agi," "M. Leka Company," "Global Limited Co.," "Çashku," and "Sudja." The city of Vlora, a major hub for these schemes, was severely impacted. The government froze the assets of "Vefa Holding" and "Gjallica."
• 15 January: Hundreds gathered at the residence of Maksude Kadëna, the owner of "Sudja." Among the crowd were opposition leaders. They confronted the police.
• 16 January: Maksude Kadëna, owner of "Sudja," was arrested. The Socialist newspaper "Voice of the People" wrote, "From Tirana to Vlora, the country is in revolt," referring to the protests by about 6,000 people in Vlora's Flag Square.
• 18 January: An emergency meeting of the Democratic National Council resulted in the creation of a parliamentary committee to investigate the situation.
• 19 January: A protest against "Sudes" was held in the square. Opposition leaders attempted to direct the protest against the government.
• 20 January: 1,500 people gathered at the bankrupt "People-Xhaferri Democracy" scheme to reclaim their money.
• 22 January: The trial began against the so-called "charitable donations" (which were actually pyramid schemes) "People's Democracy-Xhaferri" and "People," both run by individuals with close ties to the Communist State Security (Rrapush Xhaferri and Bashkim Driza). Kërxhaliu, the administrator of "Gjallica," was arrested.
• 23 January: Police arrested 50 employees of "People" and "Xhaferri." The newspaper Albania wrote, "Surely, this is the work of Hajdin Sejdia. He left with several million dollars in 1991 but returned unexpectedly in 1996 and began distributing money to creditors. The truth is that he received $3 million from 'Xhaferri' and 'People,' which led to increased confidence among citizens in these schemes. As a result of Sejdia's arrival, there was an increase of tens of millions of dollars in deposits to these schemes within 2–3 months. This prevented the premature failure of these schemes."
• 24 January: Demonstrators in Lushnja, angry about the arrest of Xhaferri, burned the City Hall and a cinema.
• 25 January: Demonstrators from surrounding villages attacked and destroyed state institutions in Lushnja. Tritan Shehu was held hostage for several hours at the City Stadium. The city of Lushnja was set on fire by the crowd, led by local Socialist Party leaders. Additional clashes occurred in Elbasan, Memaliaj, Laç, and Kuçovë.
• 26 January: A demonstration by the Socialist Party in downtown Tirana escalated into a violent clash between police and opposition supporters. Some Socialist leaders were injured by the police. The opposition destroyed the National History Museum, the Palace of Culture, the Et'hem Bey Mosque, and the Municipality of South Tiranë. An angry mob also burned the city hall. In Patos, terrorist groups set fire to Albpetrol.
• 27 January: An angry crowd burned the hall of Peshkopi and the police station. Four policemen were seriously injured.
• 29 January: Police arrested 140 people in Berat and 20 in Poliçan for involvement in violent demonstrations and illegal activities.
• 30 January: The Forum for Democracy was formed by opposition parties, led by Daut Gumeni, Fatos Lubonja from the Albanian Helsinki Committee (known for anti-Berisha positions), and Kurt Kola, president of the Association of the Politically Persecuted (also associated with "the people"). The Forum soon began organizing anti-government protests.
• 31 January: The newspaper Koha Jonë urged the creditors of "Gjallica" to visit the firm on 6 February to retrieve their money. The goal was to incite violent demonstrations at "Gjallica."

February

• 4 February: Partial returns of deposits began as per a government decision. The opposition criticized the Democrats for delaying the start of the process. The "Forum for Democracy" proposed the creation of a technical government to resolve the crisis.
• 5 February: The bankrupt firm "Gjallica" was taken over by the former State Security. The cities most affected by the firm's bankruptcy were Vlora ($145 million USD) and Kukës ($16 million USD). Protests began in Vlora.
• 6 February: Thousands joined violent protests in Vlora. Kukës formed a "Committee" with the firm's creditors, seeking a legal solution to the issue and aiming to become shareholders of the firm. Similar committees were established in Gjirokastër and Berat.
• 7 February: Protesters block the road in Memaliaj.
• 8 February: Anti-government protests continue in Vlora.
• 9 February: An armed crowd attacks the police station in Vlora, resulting in one death and one injury. The "Forum for Democracy" declares that the only solution to the crisis is continued protests against the government.
• 10 February: Violence continued in the south. Armed groups burned the Democratic Party of Albania (DPA) headquarters, and both the President and government resigned. A group of about 50 Special Forces troops was viciously attacked by a mob of thousands. EuroNews broadcast footage of the police siege. The rebellion spread throughout southern Albania, and a state of emergency was proposed for the region.
• 11 February: Artur Rustemi, the first victim of the rebellion, was buried in Vlora. His funeral turned into an anti-government demonstration that resulted in the burning of the ADP headquarters in Vlora. Alarm spread over the lack of bread in the city. The "Forum for Democracy" called for dialogue with President Berisha.
• 12–15 February: Multiple kidnappings occurred. Schools were closed, and shops were allowed to sell goods only until 9 o'clock.
• 13 February: Kurt Kola was accused of being a traitor and collaborator with communist executioners.
• 14 February: Anti-government protests developed in Fier.
• 17 February: The Legality Movement condemned the violence and refused dialogue with the "Forum for Democracy." Ministers met in Tirana.
• 18 February: President Berisha met with citizens of Lushnja, promising to do everything to resolve the crisis. The National Front demanded the resignation of the government.
• 20 February: A hunger strike began at the University Ismail Kamal in Vlora, with approximately 50 students demanding the resignation of the government. The Forum for Democracy organized a violent demonstration in Tirana, resulting in five policemen being seriously injured. A group of students met with President Berisha in Vlora and agreed to resolve the crisis peacefully.
• 22 February: The trial of the leaders of Gjallicës began. The Forum for Democracy supported the student hunger strike in Vlora.
• 24 February: Angry crowds attacked state institutions in the south.
• 26 February: As part of a presidential tour of areas affected by the crisis, Berisha met with citizens in Gjirokastër and promised to make all efforts to resolve the situation. Thousands surrounded the University Ismail Kamal to protect against a rumored "attack" by state forces.
• 28 February: Forty-six students at the University of Gjirokastër joined a hunger strike, with demands similar to those of students in Vlora. Armed crowds attacked and burned a SHIK branch, resulting in the deaths of three agents who were burned alive and three others who were attacked and killed by the crowd. Additionally, three members of the crowd were killed.

March

• 1 March: The city of Vlora had no functioning government and was controlled by gangs and traffickers. A mass exodus began. In Lushnje, police were brutally beaten. News of the massacre of SHIK officers shocked the government. Rebels took control of the Albanian Navy's Pasha Liman Base, a significant symbol of resistance. In response, the government declared a state of emergency and sent more troops to the areas around Vlora and Tepelena. Rebels set up cannons at the entrance of the city, pointing them towards Tirana. A massive explosion destroyed an arms storage facility. Himarë was on fire, including police buildings in Gjirokastër.
• 2 March: Alexander Meksi's government resigned after failing to resolve the crisis. The event was celebrated in Vlora and the south, with thousands firing AK-47s into the air as a sign of victory. Parliament appointed the chief of the Gazideden Union to restore order. Gazidede immediately ordered the indefinite closure of schools throughout the country and imposed restrictions on the press and consumer goods. In Kavaja, a bastion of the PD, over 5,000 people voluntarily armed themselves to defend the city from a potential attack by armed gangs. Italian news agency ANSA commented: "The whole scenario is emerging as a politico-military strategy rather than a manifestation of spontaneous popular action. Special machines have been used for days to gather people in Flag Square."
• 3 March: President Berisha was re-elected with votes from DP members of parliament alone, which led to massive riots in southern and central Albania. Warehouses exploded, and remaining military bands formed committees. The city of Saranda was captured by rebels, with fighters from Vlora arriving by boat and burning every government building in the city, including the library. In Vlora, a local detention facility was broken into, and more than 400 guns were seized. Gunmen also burned down the Vocational Training Centre in Vlora. Meanwhile, SHIK attempted to contain the rebellion to Vlora, Saranda, and Delvina to prevent it from spreading further. Destruction and killings continued throughout southern Albania. The seven million dollar Vocational Training Centre in Vlora was destroyed, costing the Albanian government heavily. A group of approximately 100 "Adipetrol" members was held responsible, and their compound in Gjirokastra was raided. Masked raiders captured a warship, and rebels attacked Saranda, burning police and government buildings. Criminals engineered a prison break, releasing hundreds of prisoners, seizing 400 weapons, and setting fire to the town library. In Kuçovë, a bread shortage was announced. The army regained control of Fier and began disarming the population.
• 4 March: The Committee of Public Salvation was formed in Vlora, headed by Albert Shyti. This committee began to act as a parallel government. Snipers occupied every building in Vlora, and barricades were erected on every street to prevent attacks by SHIK. The Mifoli Bridge over the River Vjosë was blocked and mined, becoming a symbol of the rebellion as it separated the two parts of Albania. As students ended their hunger strike, gunmen in Saranda used navy craft to plunder weapons caches. Gangs patrolled the sea using Albanian Navy ships. Outside Saranda, one SHIK member was burned alive, another was taken hostage, and two others escaped. Fifty soldiers joined the rebels, and two Albanian Air Force pilots defected, flying their planes to Italy, and claiming they were ordered to attack civilians. Gazidede's plan to isolate the insurgency in Vlora failed as it spread across the south. After fierce fighting in Delvina, the rebels forced the army to pull back. In Saranda, rebels set up roadblocks. More depots exploded in the south. Rebels placed snipers in mansions, locked the Mifoli Bridge, and raised barricades to prevent military and SHIK entry. In Shkodra, the army capitulated, and the hunger strike ended. In Saranda, organized gangs raided an Albanian Navy base, capturing thousands of weapons. The Committee of Public Salvation in Vlore, led by Albert Shyti, began to act as a parallel government, conducting a "de facto" coup. Shyti's main collaborator was Myrteza Çaushi, known as Zani, "the strongman of Vlora." Following the example set in Vlora, Shyti established "Salvation Committees" throughout Albania. Demonstrators succeeded in overpowering the Vlora police largely due to the support and organization of local crime crime bosses and former members of the Communist-era secret police (Sigurimi), who saw this as an opportunity to undermine the new political system. Albert Shyti, returning from Greece with a private arsenal, set himself up as the head of the Vlora "Salvation Committees," a pattern that was replicated in other southern towns and cities.
• 5 March: Warehouses in Memaliaj and other locations were blown up. Rebels burned police buildings in these cities. Greek TV channel "Mega" reported, "Today, armed groups in southern Albania raised the banner of Northern Epirus for the first time. They demand the separation of the southern part from the rest of the country, ranging from Tepelena, thus proclaiming the autonomy of southern Albania. Albania's longstanding issue has been North-South autonomy, which is divided along the Shkumbin River."
• 6 March: President Berisha held a meeting with representatives of political parties to sign a statement condemning the massive plunder and destruction of military warehouses and calling for the surrender of weapons. Six hours later, the leaders of the Socialist Party (SP) and the Democratic Alliance Party (DAP) denied any responsibility or obligation toward the statement they had previously described as a "political success." Greek TV channel "Sky" News reported, "A few minutes after the meeting, the leaders of armed groups in Saranda emerged, announcing their decision to attack Gjirokastër that night. They will not leave and are anxiously awaiting the popular trial of three prisoners captured in Saranda's main square, who allegedly attacked SHIK employees and northern ethnic groups, increasing the victim count in Vlora."
• 7 March: Rebels from Saranda, in collaboration with local army forces, entered Gjirokastër and took some Albanian Special Forces troops hostage. The leaders of the revolt in Gjirokastër were members of the PAD, including Arben Imami (later appointed Defense Minister in 2009) and Ridvan Pëshkëpia. With the fall of Gjirokastër, the entire south of the country was out of government control. Weapons continued to spread across the country. Tirana's Rinas International Airport was attacked by villagers from the surrounding area, and the Agricultural University of Tirana was looted. Albanian Army soldiers defected to the rebels in Gjirokastër.
• 8 March: President Berisha organized a meeting with all parties concerned about the creation of the new government. The leaders of the Gjirokastër division had surrendered and taken control of the rebellion in that city. Gangs kidnapped several auxiliary military forces from Tirana and blocked several tanks and a helicopter. At midnight, they attacked and sabotaged a milk processing factory in Libohovë.
• 9 March: A Government of National Reconciliation was established in Tirana, headed by Gjirokastër mayor Bashkim Fino. The new government called on former army members to help restore peace and order. President Berisha appeared on VAT in a statement to the nation, urging "reconciliation, faith, unity, and calm."
• 10 March: In Gramsh, rebels attacked the police building and took control of the streets in Fier. Berat fell into the hands of gangs and became a major center of rebellion, alongside Vlora. Poliçan, Këlcyra, and Skrapar were also seized. In Kuçovë, rebels took control of 19 MiG aircraft. The "Vlora Rescue Committee" welcomed the agreement reached on 9 March. The American Foundation for Eastern Europe sent a letter to the Albanian Embassy in the U.S., stating, "It is great naivety to not understand that the Committee of Vlora and its leaders are inspired by a communist mafia-type organization like the KGB." The letter concluded: "Mr. Berisha must decide, by any means necessary, to restore the rule of law, including the use of military force if needed." On the evening of 10 March, the U.S. Embassy also welcomed the agreement. Unopposed on the battlefield, the rebels in the south continued their wave of destruction. They attacked a local police station in Gramsh, took control of the streets in Fier, and seized Berat. Poliçan and Këlcyra were taken over by criminal gangs, and in Kuçovë, the rebels commandeered 19 Soviet-made MiG combat aircraft. The rebellion began to spread to the north.
• 11 March: The "Committee of the South" was established, rejecting Berisha and calling for the return of lost funds. The Committee proposed forming a new state separate from Tirana. Army depots in Kukës were looted, and armed looters damaged state institutions. The citizens of Kukës temporarily abandoned the town following an announcement that the Serbian army had crossed the border. The revolt spread northward; the army capitulated in many areas, and a large weapons depot was captured in Shkodra. Prominent organized-crime figures escaped from prison, formed gangs, and effectively took control of numerous regions. Gangs looted banks, took hostages, and robbed businesses. The chaos resulted in the complete paralysis of the country, except for the capital, Tirana.
• 12 March: President Berisha decreed the formation of a Government of National Reconciliation. Meanwhile, the revolt intensified in the South.
• 13 March: President Berisha and Prime Minister Fino requested international military assistance as Tirana faced imminent invasion by the rebels. A curfew was declared, and several hundred volunteers, mainly from the North, protected the capital. Berisha described it as the most dangerous night of his life. Fatos Nano and Ramiz Alia were among the last to emerge from prison. Revolts continued in the South, with rebels burning a police building in Lezha. Ismail Kadare addressed Albanians via Voice of America, stating, "The clock has turned back to Albania's civil war between nationalists and communists in the years 1943–44." He criticized foreign media and the political elite while calling for calm to overcome the crisis. The French news agency Air France Press reported, "The riots in Albania were a military coup." The United States began Operation Silver Wake to evacuate civilians and embassy personnel from Tirana.
• 14 March: Franz Vranitski was appointed to address the Albanian crisis. The U.S. Ambassador appeared on VAT, stating that the diplomatic mission would not leave and that the American people supported the Albanian people. In Tirana, the population began to disarm. A tobacco plantation and a Coca-Cola factory were attacked. The chief of SHIK resigned. Rebels occupied the port of Durrës. The German evacuation mission, Operation Libelle, was carried out for civilians and embassy staff in Tirana. The Greek government conducted Operation Cosmas to evacuate civilians and embassy staff from the port of Durrës, despite the presence of thousands of gunmen in the area.
• 15 March: Rinas Airport was recovered by the government. Parliament approved the "Government of National Reconciliation." A "Committee for the Protection of Durrës" was formed.
• 16 March: A massive rally in Tirana called for peace and cooperation. A day of national mourning was declared in honor of the victims of the rebellion. In Fier, radioactive material was looted. President Berisha decreed an amnesty for 51 prisoners.
• 17 March: A presidential decree released Fatos Nano, the opposition leader who had been jailed since 1993 on corruption charges. The President left the country in a U.S. military helicopter. Fatos Nano held a press conference, expressing his support for the new government.
• 18 March: A Committee for the Rescue of North and Middle Albania threatened the new government if it recognized the committees of the South. As a result, the government did not recognize any committees.
• 20 March: The Assembly of Public Salvation Committee demanded the removal of Berisha and proposed the creation of a Federation of the South. Rinas Airport reopened.
• 21 March: Greece sought to enter Albanian territory under the pretext of protecting minorities. Berisha requested Turkish military aid. The Turkish government stated that if Greek troops entered Albania, Turkey would immediately invade Greece and capture Athens. Turkey demanded that the mistakes made in Bosnia not be repeated in Albania. At a hearing in the Albanian Parliament, the head of Gazidede Union accused anti-Albanian Greek circles, Albanian Socialists, the military, and criminals. He stated, "The integrity of Albania no longer exists" and "the rebellion was directed towards the destruction of any historic and cultural facility, with the long-term goal of eradicating any historical evidence of Albanian autochthony."
• 22 March: Armed gangs ruled Saranda and Gjirokastra under a regime of violence and terror, resulting in dozens of deaths.
• 23 March: Control of the Port of Durrës was reestablished. Berat was under gang rule, with numerous attacks attempted using explosives.
• 25 March: Three policemen were killed in Vlora.
• 26 March: The American evacuation of civilians, Operation Silver Wake, ended, and most U.S. Marines returned to their ships offshore.
• 27 March: The Democratic Party claimed that relations between the Greek and Albanian peoples had always been excellent, and that Greek extremist groups did not represent all Greek people.

The Otranto tragedy

• 28 March: The Otranto tragedy occurred when an Albanian ship operated by a Vlora gang was mistakenly rammed and sunk by an Italian naval vessel in the Otranto Channel. Eighty-two refugees died. A "National Assembly of Committees of the South" was held, with opposition political figures participating. They demanded the President's resignation and rejected the "Government of National Reconciliation." The leaders of these committees were former exponents of the Enver Hoxha regime. In the village of Levan, the largest massacre of the conflict occurred, with 24 people killed in clashes between Roma and a gang, bringing the total death toll to over 110. The United Nations adopted Resolution No. 1101 for humanitarian aid.
• 29 March: Five people were killed in the South and in Berat.
• 30 March: President Berisha and Prime Minister Fino sent condolences to the families of the Otranto victims. Albania requested an international investigation into the incident.
• 31 March: National mourning was declared in honor of the Otranto victims. Ismail Kadare stated in the Italian media that he was "shocked by this tragedy" and that the authority of the government and the President needed to be restored.

April

• 1 April: Leaders of the Democratic Party debated the resignation of Berisha and Shehu. Fino urged the Socialist Party to withdraw from the 28 March agreement with the Committee of the South.
• 3 April: Police made gains in restoring order in Tirana. Special Forces take control of Berat.
• 4 April: The U.S. Embassy stated that it would not meet with any Salvation Committee and that the only legitimate institutions are the government and president.
• 5 April: Armed gangs ruled Pogradec.
• 7 April: Dozens of people in Fier were wounded and 5 killed, including two children. The Haklaj family led the riots. 3 were killed in Durrës.
• 8 April: In Gramsh, clashes broke out between local gangs and another from Laçi. The city had become a center of arms sales.
• 12 April: Leka Zog arrived in Tirana, along with the royal court. Dozens of mentally ill escape from Elbasan.
• 13 April: Italian Prime Minister Romano Prodi visited Vlore with Albanian Zani Çaushi as his bodyguard.
• 15 April: Operation Alba, an international army of 7000 troops under the direction of Italy, began to arrive in Albania. The first forces deployed in Durrës. Normality returned to Tirana. Held a successful operation to apprehend criminals Gramsh and collecting looted weapons.
• 17 April: Political parties agreed to hold elections on 29 June.
• 18 April: A bomb exploded in the courtyard of the University of Elbasan.
• 19 April: A repository rocket explodes in Gjirokastra. Fino met with Leka Zog.
• 21 April: Multinational forces deployed in Vlora. Criminal gangs attacked and spoiled the city of Gramsh and terrorized citizens in Çorovodë.
• 22 April: A bomb exploded near ex local "Flora" in Tirana.
• 23 April: International forces choose not to work with any "committee of the South."
• 24 April: Police Station Attacked in Elbasan. Leka Zog visited Vlore.
• 26 April: Council of Europe demanded the disarmament of "illegal" Salvation Committees. 4 children injured by a bomb in Gjirokastra. In Shpërthehen 35 meters of train tracks were demolished.
• 28 April: In Lushnje, a crowd of roughly 4,000 gathered to protest. The protest was initiated by the Committee of Public Salvation. Demands included Berisha's resignation, reform of the electoral process, emergency parliamentary elections then scheduled for 2001, and reimbursement of 100% of all financial losses. Leaders of the Committee joined the rally.
• 29 April: Schools reopened in the North. Vlora continued under the power of the gangs.
• 30 April: 27 people left dead by the explosion of a weapons depot in Burrel. Three warehouses exploded in Berat.

May

• 4 May: Dozens were killed in Shkodra, Berat, Tirana and Durrës.
• 10 May: Special Forces struggled with armed gangs in Gramsh. Gramsh Rescue Committee prevented distribution of newspapers in the city.
• 14 May: Kakavisë attacked the border. Remains blocked the Berat-Lushnje road. A military post was attacked in Berat.
• 15 May: A warehouse in Gjirokastra exploded, injuring 14 people and killing 4 others. An entire family was killed in Pogradec.
• 19 May: Violence continued in the south. Killings continued in Vlora. In Memaliaj police and Rescue Committee joined forces against one of the gangs.
• 21 May: Continued attacks against bridges in Gjirokastra. Violence continued in Saranda, Vlora, Shkodra and Durrës.
• 23 May: In Cërrik city gangs attacked a Special Forces armored vehicle. 6 Special Forces of the Republican Guard were killed by grenade attacks. 3 others were captured and taken hostage.

June

• 17 June: Massacre of Ura Vajgurore.
• ? June: The Democrat leadership was unable to operate a normal campaign in southern Albania. Their campaign was accompanied by riots in those cities, leaving behind more than 60 people killed.
• 29 June: Parliamentary elections were held. Socialist Party allies won while the Democrats suffered the biggest loss in their history. Many of the members of the "Salvation Committees" came out for leftist candidates though they promised they would not get a government position without resolving the crisis. On election day a referendum was held over the form of governance. The Republic prevailed over monarchy with 65% of the votes.

July

• 3 July: Pretender to the throne of the abolished monarchy King Leka I organised a demonstration accusing the electoral commission of rigging the results of the referendum in which two thirds of voters rejected the proposed restoration of monarchy. Five people were killed in a clash between demonstrators and police.
• July: Gangs continued to rule cities with fear and terror. Murders, robberies and trafficking of weapons, people and drugs increased.
• 24 July: Berisha resigned. He had promised that if the Socialists won he would leave because they could not endure "institutional cohabitation" with them. The national assembly elected Rexhep Meidani as the new president. Massive gunfire in Tirana celebrated Berisha's resignation. Major fighting ended.

August

• 11 August: Operation Alba's military forces left the country.

Casualties

According to Christopher Jarvis, there were 2,000 killed. According to Fred C. Abrahams, between March and May 1997 some 1,600 people were killed, most in shootouts between rival gangs. An UNIDIR document claimed more than 2,000 killed in March alone.

Aftermath

Damage from the rebellion was estimated at US$200 million and some 3,700 to 5,000 wounded. Lawsuits were filed against the bosses of the rogue firms. Various members of the government, including Safet Zhulali and Agim Shehu, were sentenced in absentia.

In elections in June and July 1997, Berisha and his party were voted out of power, and the leftist coalition headed by the Socialist Party won. The Socialist party elected Rexhep Meidani as President of the Albanian Republic. All UN forces left Albania by 11 August.

See also

• List of massacres in Albania
• Kosovo War

Sources

pop

• Tripodi, Paolo (2016). "The Collapse of Albania". In Rich, Paul B. (ed.). Warlords in International Relations. Springer. ISBN 978-1-349-27688-2.
• Abrahams, Fred C. (2016). Modern Albania: From Dictatorship to Democracy in Europe. NYU Press. ISBN 978-1-4798-3809-7.
• Arsovska, Jana (2015). Decoding Albanian Organized Crime: Culture, Politics, and Globalization. University of California Press. ISBN 9780520282803.
• Mugumya, Geofrey (2005). From Exchanging Weapons for Development to Security Sector Reform in Albania: Gaps and Grey Areas in Weapon Collection Programmes Assessed by Local People. United Nations Publications UNIDIR. ISBN 978-92-9045-173-0.
• Daniel Vaughan-Whitehead (1999). Albania in Crisis: The Predictable Fall of the Shining Star. Edward Elgar. ISBN 978-1-84064-070-0.
• Transition. Vol. 4. Open Media Research Institute. 1997.
• “Rënia e Demokracisë”, Afrim Krasniqi, 1998, Eurorilindja
• “Unë e pashë kush e dogji Vlorën”, Gëzim Zilja, 2000, Pelioni
• Fondi Monetar Ndërkombëtar, Ngritja dhe rënia e piramidave shqiptare
• Impakti i piramidave në Shqipëri
• Piramidat shqiptare
• Banka Botërore, Shqipëria nën hijen e skemave piramidale

Further reading

• Jusufi, I. (2017). "Albania's Transformation since 1997: Successes and Failures". HRCAK. {{cite journal}}: Cite journal requires |journal= (help)
• Andrea De Guttry; Fabrizio Pagani (1999). La Crisi albanese del 1997: l'azione dell'Italia e delle organizzazioni internazionali : verso un nuovo modello di gestione delle crisi?. F. Angeli. ISBN 978-88-464-1454-0.
• Perlmutter, T., 1998. The politics of proximity: The Italian response to the Albanian crisis. International Migration Review, pp. 203–222.
• Schmidt, F., 1998. Upheaval in Albania. Current History, 97, p. 127.
• Kalra, M.S., 1998. Inflation and money demand in Albania (No. 98-101). International Monetary Fund.
• Miall, H., 1997. The OSCE role in Albania: A Success for Conflict Prevention. Helsinki Monitor, 8, p. 74.
• Nicholson, B., 1999. The beginning of the end of a rebellion: southern Albania, May–June 1997. East European Politics and Societies, 13(3), pp. 543–565.
• Kritsiotis, D., 1999. Security Council Resolution 1101 (1997) and the Multinational Protection Force of Operation Alba in Albania. Leiden Journal of International Law, 12(3), pp. 511–547.
• Jarvis, 1999, "The Rise and Fall of the Pyramid Schemes in Albania," IMF Working Paper 99/98 (International Monetary Fund: Washington)
  • Jarvis, C., March 2000. The rise and fall of the pyramid schemes in Albania. Finance & Development, 37(1).
• Foster, E., 1998. Ad Hoc in Albania: Did Europe Fail? A Rejoinder. Security Dialogue, 29(2), pp. 213–217.
• Anarchy in Albania: Collapse of European Collective Security?
• "Modern Albania: From Dictatorship to Democracy", Fred C. Abrahams, 2015, NYU Press
• "False Apocalypse: From Stalinism to Capitalism", Fatos Lubonja, 2014, Istros Books
• "Rënia e Demokracisë", Afrim Krasniqi, 1998, Eurorilindja (in Albanian)
• "Shqipëria jashtë Veriut and Jugut", Ibrahim Kelmendi, 1997, Zëri i Kosovës (in Albanian)
• "Unë e pashë kush e dogji Vlorën", Gëzim Zilja, 2000, Pelioni (in Albanian)
• "Skaner 1997", Gëzim Zilja (in Albanian)
• "Kryengritje e tradhtuar", Panajot Barka (in Albanian)
• "Lufta jo civile", Preç Zogaj (in Albanian)
• "Humnerë ‘97", Bashkim Fino (in Albanian)
• "Viti ‘97, Prapaskenat e krizës që rrënuan shtetin", Mero Baze, 2010, Toena (in Albanian)

External links

• Albanian Civil War (1997) - GlobalSecurity.org
• AP Video Archive on 1997 in Albania
• Documentary of Cerrik Massacre with footage of hostage officers
• Met Bozi in court
• The Pyramid Scheme that Collapsed a Nation