Pyramid schemes in Albania
The 1997 rebellion in Albania was in large part triggered by the failure of multiple pyramid schemes. These schemes, which grew to an unprecedented scale relative to the country's economy, led to many Albanians losing their money and property, culminating in widespread protests across Albania that eventually escalated into a nation-wide rebellion.[ 1] [ 2] At their peak, it was estimated that one in six Albanians had invested in such schemes. [ 3]
The unrest in 1997 arose from the bankruptcy of around 25 firms. The face value of the schemes' liabilities totaled $1.2 billion, nearly half of Albania's GDP at the time.[ 4] The schemes drew in almost two thirds of the country's population with the promise of sure financial returns, revealing the profound financial illiteracy and the lax regulatory environment in post-communist Albania.[ 5]
One such scheme, Sudja, was set up by a Romany woman named Maksude Kademi. The firm collapsed on 15 January 1997, leading around 3,000 people to protest outside Kademi's apartment building. Kademi told the protesters that "the scheme has failed" and that "my company is bankrupt and you shouldn't ask the government for the money." Kademi was arrested later that day.[ 3] [ 6]
