Albania is a parliamentary republic in transition from a centrally planned to a free market economy. It is an active democracy. The unicameral Parliament has 155 members elected for 4-year terms, and it in turn elects the Prime Minister and President. The Prime Minister heads the coalition government, while the President is largely ceremonial. Elections in 2003 were reported as an improvement over earlier elections, with fewer irregularities.

The judiciary is independent in law, but corruption and political pressure are said to limit its independence and efficiency. Police are accused of beating and torturing detainees to coerce confessions and of acting with impunity. Juvenile detainees are housed with adult prisoners, resulting in reports of sexual abuse.

Though the economy is now growing by 6% and inflation at 3.2%, some 25% of the population live below the poverty level and unemployment is high, estimated at 22% to 40%. Low salaries and corruption among police forces are reported, along with widespread social corruption.

Freedom of speech and of the press are guaranteed, but the media are used for political purposes. Physical violence against journalists has lessened, but harassment continues, leading to self-censorship. Internet access is not restricted but is limited outside the capital.

The country is a source and a transit route for women and children trafficked for the purposes of sexual exploitation and forced labour. Clan vigilante action related to traditional blood feuds based on the medieval Code of Lek Dukagjini (the kanun) is practised in the northern part of the country, largely for conflicts over property and human trafficking.

Police target the country's homosexual community. The General Secretary of Gay Albania reports that police arbitrarily arrest homosexuals and physically and verbally abuse them in detention.

9 years of tuition-free, compulsory education is provided for children aged 6 to 13. Many children, especially in rural areas, leave school before the end of compulsory education to work with their families. Parents are required to pay for supplies, books and even heaters for some classrooms, a burden that makes school prohibitively expensive for many families. Despite the absence of tuition fees, the inability of families to pay these associated costs is the main cause of dropouts and the decrease in enrolment, according to UNICEF.

Schools are reported to be in poor condition, and even the government concedes that only 65% are in an acceptable state of repair. Statistics for 2005 show 160 children endangered by family blood feuds and unable to attend school in fear of revenge, down from 1,370 such children in 2003. High civil registration fees prevent many citizens from registering their places of residence with authorities, and children of unregistered parents lack the documentation necessary to attend school.

Private schools are now permitted, and some 2,600 students attend 14 religious schools. Religion is not taught in public schools, and no legal restriction exists on showing religious affiliation, though some students report they have been forbidden to show such affiliation. A growing population of vulnerable, unregistered children is at risk for trafficking or exploitation. The majority are Roma children, who are the largest group to be out of school and the majority of street children.

ECE begins at age 3 and continues for 3 years. The Net Enrolment Ratio (NER) is 49% (46% of boys, 50% of girls). 6% of ECE is now provided privately. All 3,857 ECE educators are women. The pupil/teacher ratio (PTR) is 21 : 1.

The NER is 96% (96% of boys, 98% of girls). There has been a 3% drop in enrolment between 1999 and 2004. 3% of boys and 2% of girls repeat grades. Of children who enrol in Grade 1, 90% (88% of boys, 91% of girls) complete the primary programme, and 99% of graduates (98% of boys, 100% of girls) enrol in secondary school. There are 11,762 primary teachers (76% female).

8 years of secondary education begin at age 10, and compulsory education continues to age 13. Almost 400,000 students are registered in general secondary programmes. 48% of secondary students are girls. 15% of upper secondary students study in technical vocational education. 4% of secondary students repeat a grade level. There are 22,424 (56% female) secondary teachers. The PTR is 16 : 1 in lower secondary and 21 : 1 in upper secondary school.

43,600 students (62% female) are enrolled in tertiary education. 11,368 Albanian students study abroad, about 8,500 in Italy and the balance in the USA, Greece, Germany and Turkey. Women have equal access to higher education, but they are not accorded equal opportunity in their careers.

Discrimination against persons with disabilities exists in education and employment as well as in access to health care. Widespread poverty poses significant problems for many persons with disabilities. None of the following services are provided to facilitate information and communication between persons with disabilities and others: literature in Braille/tape, news magazines on tape/Braille, sign language interpretation and easy readers for persons with mental disabilities. Persons with disabilities are often involved with NGOs but rarely participate in government, legislatures, judicial authorities or political parties.

All minors in the pre-trial detention system are denied education. UNICEF is working to develop a juvenile justice system.

Minorities are constitutionally protected against discrimination, but social discrimination continues, particularly against members of Roma and Egyptian (Evgjit) communities, who are the most neglected politically, economically and socially. The Egyptian community has settled in urban areas and is more integrated into the economy than the Roma. These groups also suffer from high illiteracy among children and a lack of educational opportunity. Vlachs (or Aromanians) like the Egyptians (Evgjit) do not enjoy national or ethnic minority status and adjusted education programmes, so they are taught in the Albanian language.

The government recognises the Roma as an ethno-linguistic rather than a national minority, and it has not implemented its announced National Strategy for the Improvement of Life Conditions of the Roma Minority. The ethnic Greek minority have Greek-language public elementary schools in much of the southern part of the country. Villages have primary and lower secondary (9-year) schools in the Greek language regardless of the number of students. Two Greek language high schools exist. Ethnic Greeks insist they need more classes within and outside minority zones. The Minority Affairs Office stresses that the government does not close a minority school or class even when the number of students drops.

Academic freedom is restricted. The head of the University of Tirana's Geography Department, having developed an atlas that broadened geographical minority zones, was dismissed for having "an anti-nationalistic approach in his work, and publication of the atlas was banned. Internet access is not restricted but remains limited outside the capital.

In 2005 a new Law on Gender Equality that guarantees equal rights was promulgated. The Labour Code mandates equal pay for work of equal value, but this provision is not implemented. Though women are gaining more economic power, well-educated women are often underemployed or work outside their field of training and are poorly represented at high levels in their fields.

Legislation does not deal specifically with domestic violence. The concept of sexual harassment is not understood and accepted and is not considered a problem by authorities or by the public. Under the traditional unwritten code the kanun women are considered to be chattel.

No state authority is responsible for children's issues, and no legislation or policy regulates child labour. Approximately 50,000 children work part time or full time. Homeless street children are common, many of them Roma. Roma children live in extreme poverty by begging or doing menial work. NGOs working on trafficking of children have created early childhood development programmes and after-school programmes to protect young children.

There are reports of an increase in the trafficking of children to Kosovo for exploitation as beggars and for sexual purposes. Child abuse, including sexual abuse, is rarely reported despite its prevalence.

Workers have the right to form and join trade unions. Workers have the right to bargain collectively, and unions representing public sector employees negotiate directly with the government. Effective collective bargaining remains difficult, and agreements are difficult to enforce. Civil servants, uniformed military, police and some court officials do not have the right to strike.

Forced or compulsory labour is prohibited, but such practices occur. The minimum wage for workers over age 16 is approximately $110 (10,800 lek) a month. This is not sufficient to provide a decent standard of living for a worker and family. 2 major federations are umbrella organisations for the country's unions, and unions can join international organisations. Unlike in the past, unions do not have political affiliations, and they receive no financial support from government.