Recently, Albania has had major transition from a state-controlled to a market economy. The economic reformation has led to widespread liberalization of prices, external trade, and domestic marketing. These changes have been positive for some segments of the economy, but to date the forestry sector has been negatively affected by the transition. The decline of forest resources accelerated and continues. Inefficiencies, price distortions, government fiscal austerity, rapid expansion of livestock, and illegal harvesting point to further deforestation. This study identifies the social and political factors leading to the decline of Albania's forest resource through an examination of relevant information. Then, using the process approach of policy analysis, it assesses the barriers and incentives that impede or distort the intended effect of the current policy implementation. Third, it suggests new policies and/or changes with the aim to manage the forests sustainability and to attract investments in Albanian forestry. Policy issues for areas and sectors important or related to forestry, including agriculture, livestock industry, tourism, and rural development are discussed. Successful implementation of forest policies will be achieved by encompassing all issues pertinent to rural development. The focus is on formulation of forest policy, the evaluation of the current forest law, the role of the statute in the policy process, and guidelines in the preparation of the laws. However, the enactment of laws alone cannot ensure the success of a policy. Special consideration is given to the implementation part of the process, especially interpretation, organization, application; tools (regulations, incentives, taxation), opportunities/constraints, priorities and suggestions for successful implementation. Finally, the topic of evaluation is addressed: its intention, possible analytical techniques and standards of performance, role and expectations of participants and analysts, and major obstacles to an effective evaluation. Recommendations include changes in existing policies to allow the transfer of some state land to private and communal ownership, the expansion of the national parks to include more old-growth forests, and the adoption of concessionaires for the management of the state forests. Other policy proposals, such as a massive reforestation effort, promotion of community-oriented forest management, and forest certification, follow. / Ph. D.

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