Abstract
The purpose of this research is to outline the vital role remittances have played in the economic development of Albania following the fall of Communism in 1990, and to emphasize the potential they hold for future economic growth and development for the country. The precipitous decline in remittances following the 2007-2008 Global Financial Crisis caused much concern about Albania’s dependency on this critical resource. In the years following the crisis, Albania’s government began to shift its focus on remittances towards the cultivation of other resources, such as oil and gas, minerals, agriculture, tourism, and Foreign Direct Investment. This paper argues that, while the exploration of other resource options is important, these new interests should not overshadow the pivotal role remittances play in the sustenance of everyday life for Albanians. Through a wide array of academic literature and World Bank data on the topic of remittances, I argue that this source of income has not only minimized poverty at the individual level, but it has played a vital role in sustaining Albania’s welfare system, providing investment funds for small business, and promoting Albania’s culture and traditions. Remittances, as a source of international capital flows, continue to hold great, untapped potential for the future of the country. By failing to recognize remittances as a resource to be fostered and cultivated, the Albanian government is missing an opportunity to maintain strong ties with its significant diasporic population that has contributed significantly to the economic growth and livelihood of the nation. It is a loss Albania cannot afford. This project seeks to rekindle interest in Albanian remittances by bringing to light the benefits it has provided to Albania in the past, and if nurtured properly, the great potential it holds for Albania’s future.