Albania was the last Eastern European country to abandon a centrally
planned system for one more reliant on markets.' As part of the transition, the
Albanian Ministry of Construction (MOC) is restructuring in order to facilitate
rather than dictate housing provision. This process will involve resolving many
long-standing distortions and misallocations in the economy. Like other former
Eastern European communist countries, Albania is facing many problems: falling
aggregate demand; a weak financial sector; extreme inflation; and economic
dislocation. In this context, the housing sector is not only essential for meeting
the demand for better shelter, but also plays an important role in the economy as
a whole.