Environmental Policies and Sustainable Development in Transition Countries: Case Study of Albania

The transition period has undoubtedly deserved, and it still does, in-depth analysis of the overall economy. Different studies in transition countries have served for the recognition of realities, taking action and policy development needed for economic development. Almost all transition countries are still undergoing a deep economic crisis. The nature of this crisis comes from a restructuring of the infrastructures created for a centralized economy. Many countries have been concerned with the problems that the development has caused in the environmental aspect. Transition countries are faced even with greater environmental problems because of their need to be developed rapidly. At low levels of development, both the quantity and the intensity of environmental degradation are limited to the impacts of subsistence economic activity on the resource base and to limited quantities of biodegradable wastes. As agriculture and resource extraction intensify and industrialization takes off, both resource depletion and waste generation accelerate. From an environmental perspective a decline in GDP is positive if hazardous materials pollution reduced. However, if one wants to analyze the dynamics of release per unit of production these relations will grow along with GDP in almost all transition economies. Economic situation in Albania, was very difficult due to the political instability of the country, which impede the development and implementation of a sustainable strategy and long-term economic reforms. Secondary data about economic growth and environmental indicators such as air pollution, water pollution and land pollution are analyzed for Albania as a country in transition. The figures follow the model of relationship between variables, relevant also to the choice of environmental policy instruments. The cost-effective policy becomes important in the case of Albania. Policies should also involve the population and make the necessary improvements.