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AREA HANDBOOK
for
ALBANIA
_Co-Authors_
Eugene K. Keefe
Sarah Jane Elpern
William Giloane
James M. Moore, Jr.
Stephen Peters
Eston T. White
Research and writing were completed on
July 17, 1970
Published
January 1971
DA PAM 550-98
=Library of Congress Catalog Card Number: 73-609651=
For sale by the Superintendent of Documents, U.S. Government Printing
Office, Washington, D.C. 20402--Price $2.50
FOREWORD
This volume is one of a series of handbooks prepared by Foreign Area
Studies (FAS) of The American University, designed to be useful to
military and other personnel who need a convenient compilation of basic
facts about the social, economic, political, and military institutions
and practices of various countries. The emphasis is on objective
description of the nation's present society and the kinds of possible or
probable changes that might be expected in the future. The handbook
seeks to present as full and as balanced an integrated exposition as
limitations on space and research time permit. It was compiled from
information available in openly published material. An extensive
bibliography is provided to permit recourse to other published sources
for more detailed information. There has been no attempt to express any
specific point of view or to make policy recommendations. The contents
of the handbook represent the work of the authors and FAS and do not
represent the official view of the United States government.
An effort has been made to make the handbook as comprehensive as
possible. It can be expected, however, that the material,
interpretations, and conclusions are subject to modification in the
light of new information and developments. Such corrections, additions,
and suggestions for factual, interpretive, or other change as readers
may have will be welcomed for use in future revisions. Comments may be
addressed to:
The Director
Foreign Area Studies
The American University
5010 Wisconsin Avenue, N.W.
Washington, D.C. 20016
PREFACE
Albania, or, as it proclaimed itself in 1946, the People's Republic of
Albania, emerged from World War II under the control of the local
Communist movement, which later adopted the name Albanian Workers'
Party. The most remarkable feature of Albanian life during the 1960s was
the rigid alignment with Communist China in that country's ideological
struggle with the Soviet Union. In mid-1970 the country continued to be
Communist China's only European ally and its mouthpiece in the United
Nations. Propaganda broadcasts in several languages, extensive for such
a small, undeveloped country, continued to emanate from the capital city
of Tirana, constantly reiterating the Chinese Communist line and making
Radio Tirana sound like an extension of Radio Peking.
Albania's most notable tradition from ancient times has been one of
foreign domination. Brief periods of independence have been overshadowed
by long centuries of subjection to alien rule. Foreign rulers never
seemed able or willing to subject the Albanian peasants to the complete
authority of a central government. Throughout their history Albanians,
protected by the remoteness of their mountain villages, often enjoyed a
measure of autonomy even though they lacked national independence. The
foreign domination plus the limited autonomy developed in the people a
spirit of fierce independence and a suspicion of neighboring states that
might have designs on their territorial integrity.
Militarily undeveloped but unwilling to submit to partition by its
neighbors, Albania has held on precariously to autonomy since World War
II by becoming a client state--first to Yugoslavia, then to the Soviet
Union, and then to Communist China. In all three relationships Albania
has maintained its independence but it has not been able to establish
itself as a viable economic entity.
The _Area Handbook for Albania_ seeks to present an overview of the
various social, political, and economic aspects of the country as they
appeared in 1970. The leaders of the Communist Party have gone to
extremes to maintain an aura of secrecy about their nation and their
efforts to govern it. Material on Albania is scanty and some that is
available is not reliable but, using their own judgments on sources, the
authors have striven for objectivity in this effort to depict Albanian
society in 1970.
The spelling of place names conforms to the rulings of the United States
Board on Geographic Names, with the exception that no diacritical marks
have been used in this volume. The metric system has been used only for
tonnages.
COUNTRY SUMMARY
1. COUNTRY: People's Republic of Albania (Albania). Called Shqiperia by
Albanians. A national state since 1912. Under Communist control after
1944.
2. GOVERNMENT: Functions much like Party-state model of Soviet Union.
Constitution designates People's Assembly as highest state organ; its
Presidium conducts state affairs between Assembly sessions. People's
Council highest organ at district and lower echelons. Communist Party
(officially, the Albanian Workers' Party) organizations parallel
government organizations and control them from national to local levels.
Party members hold all key positions in government.
3. SIZE AND LOCATION: Area, 11,100 square miles; smallest of the
European Communist states. Extends 210 miles from southern to northern
extremities; 90 miles on longest east-west axis. Bordered on north and
east by Yugoslavia; on southeast and south by Greece; and on west by
Adriatic and Ionian seas.
4. TOPOGRAPHY: A narrow strip of lowland borders Adriatic Sea; remainder
of country is mountainous and hilly, intersected by streams that flow in
westerly or northwesterly direction. Terrain is generally rugged.
5. CLIMATE: Unusually varied. Coastal lowlands have Mediterranean-type
climate. Inland fluctuations common, but continental influences
predominate. Annual precipitation is 40 to 100 inches according to area;
highly seasonal; summer droughts common. Temperatures vary widely
because of differences in elevation and the changes in prevailing
Mediterranean and continental air currents.
6. ADMINISTRATIVE DIVISIONS: Twenty-six districts. Economic and social
factors played important role in shaping delineations. Control and
direction is from Tirana.
7. POPULATION: Estimated 2.1 million in January 1970. Growth unusually
rapid; at 1970 rate, would double in twenty-six years. Two-thirds live
in rural areas. Inhabitants are 97-percent ethnic Albanian. About 106
males per 100 females.
8. LABOR: In 1967 the working-age population numbered about 932,000, of
which approximately 745,000 were employed. About 66.7 percent were in
agriculture; 14.1 percent in industry; 5.4 percent in construction; and
13.8 percent in trade, education, health, and others.
9. LANGUAGE: Albanian spoken by everyone. Some of the 3-percent minority
use tongue of country of family origin as a second language.
10. EDUCATION: Nearly all persons under age forty are literate,
according to Albanian statistics. Communist ideas and principles
emphasized with strict controls by centralized authority. Production of
capabilities and skills required for modernization and industrialization
considered to be a major goal.
11. RELIGION: Organized religion destroyed by government action in 1967.
Party-directed antireligious campaign aims to eliminate religious
thought and belief. Pre-World War II data indicated population to be
70-percent Muslim, 20-percent Eastern Orthodox, and 10-percent Roman
Catholic.
12. HEALTH: Many diseases, but reportedly greatly reduced or eliminated.
Health improved substantially after 1950, as reflected in Albanian
reports. Malnutrition, poor sanitary-hygienic conditions, and lack of
trained personnel are continuing problems.
13. JUSTICE: System of people's courts from national to village level;
purportedly independent of administrative system but guided by Party
policy. Supreme Court elected by the People's Assembly. District judges
popularly elected from among Party-approved candidates. Jury system not
used. Persons are subject to military law and tried in military courts.
14. ECONOMY: Government controlled. Follows planning model of Soviet
Union. Per capita gross national product lowest in Europe. Lack of
accessible resources, arable land, and trained work force make for slow
growth.
15. INDUSTRY: Poorly developed despite heavy emphasis since 1950s, with
priority to means of production. Extractive industries most productive.
Growth rates high in 1950s, slowed in 1960s.
16. AGRICULTURE: Production low because of lack of arable land and
inefficient methods. Cereal crops for domestic use and exportable items,
such as tobacco, fruits, and vegetables, most important.
17. IMPORTS: Largely items for industrial development and unfinished
materials for processing. Some food, but quantity decreasing.
18. EXPORTS: Mostly at the expense of domestic needs, except for some
metals and minerals. Low in proportion to imports, but increasing.
19. FINANCE: Currency: The lek is standard unit; lacks solid backing.
Banks are state owned and operated. National income consistently less
than expenditures, requiring supplement from foreign sources.
20. COMMUNICATIONS: Government owned and controlled. Press and radio as
instruments to indoctrinate effectively reach the masses. Other media
poorly developed.
21. RAILROADS: Approximately 135 miles standard-gauge. None cross
international borders.
22. ROADS: Approximately 3,000 miles have improved surface. Rugged
terrain makes travel difficult on others. None part of important
international routes.
23. PORTS: Durres, largest and most important, alone links with
hinterland. Vlore only other major port.
24. AIR TRANSPORTATION: Extremely limited within country and with
foreign cities. Long-distance international flights require connections
through intermediate points. Facilities for all but small aircraft
limited to Tirana area.
25. INTERNATIONAL AGREEMENTS AND TREATIES: Member, United Nations after
1955. Member, Council for Mutual Economic Assistance (COMECON) and
Warsaw Treaty Organization, 1955-68; participation all but ceased after
1961 split with Soviet Union.
26. AID PROGRAMS: United Nations Relief and Rehabilitation Agency
(UNRRA) 1945-46; Yugoslavia 1947-48, as an integrated economy; Soviet
Union 1948-61; and Communist China after 1961.
27. SECURITY: Party-controlled agencies closely watch people's
activities and secure borders. Security forces total approximately
12,500.
28. ARMED FORCES: The People's Army, approximately 40,000, includes
army, navy, and air elements. Most conscripts serve two years. Cost,
about 10 percent of total budget.
PEOPLE'S REPUBLIC OF ALBANIA
TABLE OF CONTENTS
Page
FOREWORD iii
PREFACE v
COUNTRY SUMMARY vii
Chapter 1. General Character of the Society 1
2. Historical Setting 9
Antiquity and the Middle Ages--Ottoman Turk Rule--National
Awakening and Independence--Creation of Modern
Albania--Communist Seizure and Consolidation of
Power--The Communist Period
3. Physical Environment 25
Natural Regions--National Boundaries--Local Administrative
Areas--Climate--Drainage--Natural Resources--Transportation
4. The People 49
Population--Ethnic Groups--Languages--Settlement Patterns--Living
Conditions
5. Social System 67
Traditional Social Patterns and Values--Social Stratifications
under Communist Rule--Education--Religion
6. Government Structure and Political System 103
Formal Structure of Government--Court System--Political
Dynamics--Foreign Relations
7. Communications and Cultural Development 125
Nature and Functions of the Information Media--The
Press--Radio and Television--Book Publishing and Libraries--Cultural
Development
8. Economic System 145
Labor--Agriculture--Industry--Finance--Foreign Economic
Relations
9. Internal and External Security 175
Historical Background--The Military Establishment--The
Military Establishment and the National Economy,
Foreign Military Relations--Security Forces
BIBLIOGRAPHY 197
GLOSSARY 209
INDEX 213
LIST OF ILLUSTRATIONS
Figure Page
1 Transportation Systems in Albania xiv
2 Landform Regions in Albania 28
3 Administrative Districts in Albania 34
4 Rivers and Lakes in Albania 38
5 Educational System in Albania, 1969 89
LIST OF TABLES
Table Page
1 Temperature and Precipitation Averages for Selected
Locations in Albania 36
2 Drainage Basins in Albania 40
3 Albanian Vital Statistics for Selected Years, 1950-68 52
4 Social Composition of the Population of Albania 76
5 Summary of Educational Institutions, Pupils, and Teachers
in Albania, for Selected Years 92
6 Students Attending Higher Institutes in Albania 93
7 Selected Albanian Newspapers, 1967 130
8 Selected Albanian Periodicals, 1967 131
9 Albanian Radio Stations, 1969 133
10 Production of Field Crops and Fruits in Albania, 1960
and 1965-70 156
11 Livestock in Albania, 1960, 1964-66, and 1970 Plan 156
12 Industrial Production in Albania, 1960 and 1964-69 163
[Illustration: _Figure 1. Transportation Systems in Albania_]
CHAPTER 1
GENERAL CHARACTER OF THE SOCIETY
The People's Republic of Albania was, in 1970, the smallest and
economically most backward of the European Communist nations, with an
area of 11,100 square miles located between Yugoslavia and Greece along
the central west coast of the Balkan Peninsula. Its population of
approximately 2.1 million was considered to be 97-percent ethnic
Albanian, with a smattering of Greeks, Vlachs, Bulgars, Serbs, and
Gypsies. Practically the entire population used Albanian as the
principal language.
The country officially became a Communist "people's republic" in 1946
after one-party elections were held. Actually, the Communist-dominated
National Liberation Front had been the leading political power since
1944, after successfully conducting civil war operations against
non-Communist forces while concurrently fighting against Italian and
German armies of occupation. The Communist regime operated first under
the mask of the Democratic Front from 1944 to 1948 and, subsequently,
through the Albanian Workers' Party; it asserted that it was a
dictatorship of the proletariat--the workers and the peasants--and that
it ruled according to the Leninist principle of democratic centralism.
In practice, a small, carefully selected Party group, which in 1970 was
still under the control of Enver Hoxha and Mehmet Shehu, the partisan
leaders of the World War II period, made all important policy and
operational decisions (see ch. 6, Government Structure and Political
System).
In order to gain broad support for its programs the Party utilized mass
social organizations. These included the Democratic Front, the successor
in 1945 to the National Liberation Front; the Union of Albanian Working
Youth; the United Trade Unions; and others. Direct election of
governmental bodies, from the people's councils in villages to the
People's Assembly at the national level, gave the appearance of
representative institutions. While seemingly democratic, these
assemblies met infrequently and for short periods and had no real power.
The average citizen has never had any influence in national politics.
During the 1920-39 period vested interests, mostly landowners and clan
chiefs, were the predominant influence. A middle class was lacking, and
the great bulk of the population, the rural peasantry, was held in a
state of subservience by local leaders. Under Communist rule political
power has been concentrated completely in the Party leadership (see ch.
2, Historical Setting; ch. 6, Government Structure and Political
System).
The system of controls circumscribed individual freedoms and reached
nearly every facet of day-to-day life. The Communist regime, by its
totalitarian rule, extended and increased obedience to, and fear of,
centralized authority. A new ruling elite, that of the Party, was
substituted for the _beys_ (see Glossary) and _pashas_ (see Glossary) of
pre-Communist times (see ch. 6, Government Structure and Political
System).
The goals of the Communist regime as revealed during the 1944-70 period
were to strengthen and perpetuate the Party's hold on the reins of
government, to maintain Albanian independence, and to modernize society
according to the Leninist-Stalinist model. By capitalizing on the
divisions among the Communist nations and by eliminating or rendering
harmless internal opposition, the Party had a firm grip on the
instruments of control, and by 1961 independence was reasonably well
secured. Only modest progress had been made by 1970 toward
modernization. The lack of extensive natural resources and continued
reliance on foreign aid caused much strain and required sacrifices by
the ordinary citizen (see ch. 2, Historical Setting; ch. 9, Internal and
External Security).
Albania tended to be highly aggressive and partisan in the ideological
struggles between the Communist and Western democratic states and those
between the Communist nations. The successive close relationships with
Yugoslavia (1944-48), the Soviet Union (1949-60), and China after 1961
reflected the inherent insecurity of a weak state. Although these
coalitions frequently seemed to place Albania in a subservient role, the
ultimate goals of the Hoxha-Shehu regime were to develop political
autonomy and economic self-sufficiency, thus reducing dependence on
foreign aid to a point where Albania could be truly independent (see ch.
6, Government Structure and Political System).
In many respects Albania was a closed society. Government controls over
all internal communications media ensured that only Party-approved
information was disseminated; however, foreign transmissions were not
jammed, probably because funds were not available. The individual's
activities were closely watched by security police or other Party
watchdogs. Travel into and out of the country was restricted and closely
controlled (see ch. 7, Communications and Cultural Development; ch. 9,
Internal and External Security).
Pre-Communist Albania gained independence in 1912 after 4-1/2 centuries
of rule by the Ottoman Turks. The movement toward nationhood during the
latter part of the nineteenth century and the early twentieth took
advantage of the disintegration of Turkish power and the rivalry between
European nations vying for control over the Balkans. The opportunity for
independence came when a group of Balkan nations attacked Turkey and
proclaimed their intention of seizing the European part of the Ottoman
Empire. A group of Albanian patriots, under the leadership of Ismail
Qemal bey Vlora, thwarted the desires of Albania's neighbors to
partition the country by declaring independence on November 28, 1912.
The new nation sought and received backing from the great powers of
Europe, thus forcing the weaker Balkan nations to give up their plans
for the annexation of Albanian territory.
Under the cruel, corrupt, and inefficient Ottoman rule, institutions and
capabilities for self-government were not allowed to develop, and the
country was ill prepared for statehood when it arrived. Development had
hardly begun when World War I brought chaos to the country as the
opposing powers used it as a battleground. After the war, as Albania
struggled to assert itself as a national entity, the lack of natural
resources and a poorly developed economy created a heavy requirement for
foreign aid. Excessive reliance on Fascist Italy during the 1920s and
1930s eventually led to annexation by that expansionist power.
After regaining its independence during World War II, Albania again
compromised its sovereignty by excessive reliance on outside powers:
first on Yugoslavia, which was heavily involved in the establishment of
the Communist Party in Albania, and then on the Soviet Union.
Catastrophe was averted in each instance by a split between Communist
nations. When Joseph Stalin expelled Yugoslavia from the Communist bloc
of nations in 1948, Enver Hoxha switched his allegiance to the Soviet
Union and ended his country's economic reliance on Yugoslavia, which had
all but incorporated Albania into its federation. For the next several
years Albania was a Soviet satellite but, as the rift between the Soviet
Union and Communist China widened, Hoxha continually sided with the
Chinese and, when the break came in 1961, Albania severed its Soviet
ties and became an ally of Communist China.
The lack of resources and an undeveloped economy, the same economic
problems that had plagued newly independent Albania in the 1920s,
continued to be problems in 1970, and foreign aid was still a
necessity. Communist China provided an undetermined amount of assistance
during the 1960s and into 1970 but, from the Albanian point of view, the
danger of loss of sovereignty to distant China was much less than it had
been during the periods when the country was a client state of nearby
Italy, Yugoslavia, and the Soviet Union.
The lack of easily defended national boundaries was an additional
concern in the maintenance of territorial integrity. Although the
boundaries originally established in 1913 remained relatively unchanged
and were not officially disputed in 1970, they were not considered
satisfactory in some sectors. About 1 million Albanians lived in
adjacent areas of Yugoslavia, mostly in the Kosovo region, and Albania
revealed her dissatisfaction that they were not included within its
territory. Neither Albania nor Greece was content with the demarcation
along the two most southerly districts of Albania. The lack of sharply
defined terrain features in most places along the northern and eastern
borders with Yugoslavia and the southeastern and southern delineation
between Albania and Greece increased the potential for dispute (see ch.
2, Historical Setting; ch. 3, Physical Environment).
The topography of the land is generally rugged, and access to inland
areas is difficult. Except for the narrow strip of lowlands along the
Adriatic coast, the country is made up of mountains and hills,
intermittently intersected by streams that flow in a generally westerly
or northwesterly direction. Valleys in the hinterland are narrow, and
slopes of mountains and hills tend to be steep (see ch. 3, Physical
Environment).
Considering Albania's small area, climatic conditions are quite varied.
Along the coastal lowlands Mediterranean-type weather prevails. In the
interior there are rapid fluctuations in many areas, but continental
influences predominate. Despite annual precipitation ranging from 40 to
100 inches, droughts are common because rainfall is unevenly distributed
(see ch. 3, Physical Environment).
Few places offer good conditions for large-scale settlement. Localities
with good soil and a dependable water supply are small and scattered.
The coastal lowlands, inundated or desert-like according to the season,
are lightly populated. The region generally bounded by Durres, Tirana,
Elbasan, and Fier grew most rapidly and had the highest population
density in the late 1960s. Inland, the mountain and upland basins offer
the best conditions for settlement (see ch. 3, Physical Environment; ch.
4, The People).
The extensive networks of rivers are of little value for transportation
because waterflow fluctuates, currents tend to be violent, and
estuaries are heavily sedimented. Road and railroad construction is
difficult because of the uneven character of the terrain. Improved land
transportation routes are exceedingly limited. Mountain homesteads and
villages frequently have only a footpath to connect them with the
outside world. The lack of communications routes results in isolation
for many areas and helps to place Albania on a byway of international
travel (see ch. 3, Physical Environment; ch. 4, The People).
Remote and isolated areas had a significant influence in shaping
Albanian society. During the long period of Turkish rule they provided
sanctuaries for the preservation of ethnic identity. After 1912 the
people in these areas were the primary residuary for antiquated customs
and attitudes. Communist leaders made a major effort in the 1960s to
eliminate old customs and other vestiges of the past that detracted from
the collectivization and modernization of society. Comments of high
officials in early 1970 indicated that their efforts still had not been
entirely successful (see ch. 2, Historical Setting; ch. 4, The People).
The Albanians are descendants of the Illyrians, an Indo-European people
who lived in the Balkans in antiquity. Their history before the eleventh
century is linked with, and not easily separated from, that of the other
Illyrian tribes. The written language did not develop until the
fifteenth century, and then for more than four centuries under Turkish
rule it was forbidden. Although Albanians distinguished themselves as
soldiers under Turkish suzerainty and some held high office in the
Ottoman ruling hierarchy, they were little known as a people before the
nineteenth century. As members of clans or feudal estates they lived an
outmoded life style and were relatively untouched by the forces of
industrialization and democratization that changed much of western and
southern Europe in the nineteenth and early twentieth centuries (see ch.
2, Historical Setting).
For centuries after the death in 1468 of Skanderbeg, the Albanian
national hero and symbol of resistance to Turkish rule, many Albanian
mountain communities lived unto themselves. Local control rested with
_pashas_ and _beys_, and some became virtually independent of Turkish
rule. About two-thirds of the people accepted, or were forcibly
converted to, the Muslim faith under the Turks. Since eligibility to
participate in political life rested on religious affiliation, some
Albanians thus became a part of the ruling hierarchy of the Ottoman
Empire, but the masses were indifferent politically. Activities or
attitudes that would tend to strengthen nationalism were suppressed.
When considered in its entirety the heritage from Ottoman rule
contributed almost nothing toward the development of capabilities
required for a viable government and a modernized society (see ch. 2,
Historical Setting).
Kinship, customs, and attitudes related to family life, and strong
attachments to community and language were strong influences in the
preservation of ethnic identity through the many centuries of foreign
domination. The Albanians are divided into two major subgroups--the
Gegs, who occupy the area north of the Shkumbin River, and the Tosks,
who inhabit the territory to the south. Differences in physical
appearance persist, but the breakup of clans and moves toward
collectivization of society after World War II diminished the most
distinguishing feature, their social system. Antiquated customs and
blood feuds that were frequently initiated by offenses against women
were more prevalent among the Gegs than the Tosks before the Communist
takeover (see ch. 4, The People).
The family continued to be a strong social force in 1970. It was the
primary residuary of customs, practices, and attitudes that detracted
from Communist programs to create a monolithic and modernized society.
Older persons, particularly males, who traditionally held positions of
authority in the family, were considered to be the strongest force
against change. In their efforts to eliminate outmoded customs, Party
and government leaders placed special emphasis on youth and women, the
latter having suffered much discrimination under the clan system. Large
extended families, which sometimes numbered sixty or more persons and
included several generations, were in most cases broken up under
Communist rule as a means to decrease family influence (see ch. 5,
Social System).
Party leaders, realizing the importance of education in developing
attitudes and loyalties favorable to communism and in training the work
force required for a modern industrial economy, placed heavy emphasis on
school programs. By 1970 the level of schooling completed by the people
had been significantly increased over the 1946 level, but the pool of
scientific and skilled personnel fell far short of requirements (see ch.
5, Social System).
The most noteworthy improvement in the people's welfare, as reflected by
Albanian data, was in the area of health. The incidence of disease was
greatly reduced; the death rate decreased; and life expectancy increased
by approximately 12.5 years between 1950 and 1966 (see ch. 4, The
People).
Albanian art, literature, and music have gained little recognition among
world cultures. After 1944 the Communist regime instituted mass
participation in education and social and cultural activities to instill
ideals of socialism and Communist morality and gain the capabilities
required for modernization of the economy. Illiteracy, once prevalent
among all age groups, was reportedly eliminated among persons under the
age of forty and some, but not nearly all, of the skilled work force
required has been produced. Despite these efforts Albania's cultural
heritage was still meager in the late 1960s (see ch. 5, Social System;
ch. 7, Communications and Cultural Development).
Albanians as individuals tended to take religion lightly, and the
Muslim, Eastern Orthodox, and Roman Catholic religions that had been
brought by conquerors did not play major roles in shaping national
traditions or in strengthening national unity. In 1967, after the
government's withdrawal of approval for religious bodies to function, an
accelerated campaign was undertaken to eradicate religious thoughts and
beliefs. The fact that the campaign was continuing in early 1970
indicated that it had not entirely succeeded (see ch. 5, Social System).
The major economic objective is to develop a modern economy with a
strong industrial base. Before World War II there was practically no
industry, and the system of agriculture was primitive and inefficient.
Substantial aid from the Soviet Union during the 1950s resulted in
modest growth of the economy, with rapid rates of industrial growth and
improvements in education and health. Chinese aid on a lesser scale and
heavy sacrifices by the masses sustained the growth trend in industry
during the 1960s but at a slower pace.
The major source of national income changed from agriculture to industry
during the early 1960s, but the country was still by all appearances
predominantly rural and agricultural. Two-thirds of the people lived in
rural areas, and more than half were engaged in agriculture.
Socialization of the economy, which began in 1944, was completed in the
late 1960s. The model of planning borrowed from the Soviet Union that
was adopted in the late 1940s continued in use with only slight
modifications. The trend was toward greater centralization and
governmental control (see ch. 8, Economic System).
The provision of adequate and proper food, clothing, and housing was a
constant major problem. Little improvement was made in the standard of
living between 1950 and 1970, largely because of sustained rapid
population growth and priority to the means of production sector of
industry in the allocation of resources (see ch. 4, The People; ch. 8,
Economic System).