ontributing cause of poor
agricultural performance. There has been no consistency in the pattern
of industrial and agricultural investment. The respective shares of
these two sectors in total investment fluctuated widely from year to
year in the 1960-67 period. An adequate explanation of the reasons for
this fluctuation has not been found.

Investment in housing and for social and cultural purposes has been
minimal--8.1 and 3.7 percent, respectively, in the 1961-65 period and
6.1 and 8.1 percent, respectively, under the plan for 1966-70. As in the
case of agriculture, actual investment in 1966-67 was substantially
below the planned levels and amounted to less than 5 percent for housing
and 2 percent for social and cultural needs. This capital starvation has
been largely responsible for the dismal housing situation and for the
inadequacy of other essential amenities.

Money and Banking

The lek, divided into 100 quintars, is a nonconvertible paper currency
with multiple official exchange rates. The basic official rate since
August 10, 1965, has been 5 leks for 1 United States dollar, a rate that
has no applicability in practice. Up to 1965 the exchange value had been
50 leks per US$1. The change in par value had no economic significance
because prices, wages, and all other monetary values were reduced by the
same ratio.

There are two types of so-called tourist or support leks. A rate of
12.50 leks per US$1 applies to the official exchange of Western
currencies by nonresidents and to support payments received by residents
from Western sources. A rate of 7.55 leks per US$1 applies to the
exchange by Communist country residents of their national currencies and
to support and other noncommercial payments transferred by them from
Albania to Communist states. A third variety of official exchange rates
consists of the rates used to balance clearing accounts under special
trade and payments agreements with Communist countries. An illegal black
market rate of about 60 leks per US$1 from early 1968 through early 1969
was reported by reliable sources.

All currency matters are administered by the National Bank jointly with
the ministries of finance and trade. Albania is not a member of the
International Bank for Reconstruction and Development or of the
International Monetary Fund.

Adequate information is not available on the nature of the relationship
between the State Bank and the Ministry of Finance or on the bank's
f