Albania became dependent on Soviet aid and know-how after the break with Yugoslavia in 1948. In February 1949, Albania gained membership in the communist bloc's organization for coordinating economic planning, the Council for Mutual Economic Assistance (Comecon). Tiranë soon entered into trade agreements with Poland, Czechoslovakia, Hungary, Romania, and the Soviet Union. Soviet and East European technical advisers took up residence in Albania, and the Soviet Union also sent Albania military advisers and built a submarine installation on Sazan Island. After the Soviet-Yugoslav split, Albania and Bulgaria were the only countries the Soviet Union could use to funnel war matériel to the communists fighting in Greece. What little strategic value Albania offered the Soviet Union, however, gradually shrank as nuclear arms technology developed.

Anxious to pay homage to Stalin, Albania's rulers implemented new elements of the Stalinist economic system. In 1949 Albania adopted the basic elements of the Soviet fiscal system, under which state enterprises paid direct contributions to the treasury from their profits and kept only a share authorized for self-financed investments and other purposes. In 1951 the Albanian government launched its first five-year plan, which emphasized exploiting the country's oil, chromite, copper, nickel, asphalt, and coal resources expanding electricity production and the power grid increasing agricultural output and improving transportation. The government began a program of rapid industrialization after the APL's Second Party Congress and a campaign of forced collectivization of farmland in 1955. At the time, private farms still produced about 87 percent of Albania's agricultural output, but by 1960 the same percentage came from collective or state farms.

Soviet-Albanian relations remained warm during the last years of Stalin's life despite the fact that Albania was an economic liability for the Soviet Union. Albania conducted all its foreign trade with Soviet European countries in 1949, 1950, and 1951 and over half its trade with the Soviet Union itself. Together with its satellites, the Soviet Union underwrote shortfalls in Albania's balance of payments with long-term grants (see Dependence on the Soviet Union, 1948-60, ch.3).

Although far behind Western practice, health care and education improved dramatically for Albania's 1.2 million people in the early 1950s. The number of Albanian doctors increased by a third to about 150 early in the decade (although the doctorpatient ratio remained unacceptable by most standards), and the state opened new medical training facilities. The number of hospital beds rose from 1,765 in 1945 to about 5,500 in 1953. Better health care and living conditions produced an improvement in Albania's dismal infant mortality rate, lowering it from 112.2 deaths per 1,000 live births in 1945 to 99.5 deaths per 1,000 births in 1953 (see Medical Care and Nutrition, ch. 2). The education sys 13a5 stem, considered a tool for propagating communism and creating the academic and technical cadres necessary for construction of a socialist state and society, also improved dramatically. The number of schools, teachers, and students doubled between 1945 and 1950. Illiteracy declined from perhaps 85 percent in 1946 to 31 percent in 1950. The Soviet Union provided scholarships for Albanian students and supplied specialists and study materials to improve instruction in Albania. The Enver Hoxha University at Tiranë was founded in 1957 and the Albanian Academy of Sciences opened fifteen years later. Despite these advances, however, education in Albania suffered as a result of restrictions on freedom of thought. For example, education institutions had scant influence on their own curricula, methods of teaching, or administration (see Education Under Communist Rule, ch. 2).

Stalin died in March 1953, and apparently fearing that the Soviet ruler's demise might encourage rivals within the Albanian party's ranks, neither Hoxha nor Shehu risked traveling to Moscow to attend his funeral. The Soviet Union's subsequent movement toward rapprochement with the hated Yugoslavs rankled the two Albanian leaders. Tiranë soon came under pressure from Moscow to copy, at least formally, the new Soviet model for a collective leadership. In July 1953, Hoxha handed over the foreign affairs and defense portfolios to loyal followers, but he kept both the top party post and the premiership until 1954, when Shehu became Albania's prime minister. The Soviet Union, responding with an effort to raise the Albanian leaders' morale, elevated diplomatic relations between the two countries to the ambassadorial level.

Despite some initial expressions of enthusiasm, Hoxha and Shehu mistrusted Nikita Khrushchev's programs of "peaceful coexistence" and "different roads to socialism" because they appeared to pose the threat that Yugoslavia might again try to take control of Albania. Hoxha and Shehu were also alarmed at the prospect that Moscow might prefer less dogmatic rulers in Albania. Tiranë and Belgrade renewed diplomatic relations in December 1953, but Hoxha refused Khrushchev's repeated appeals to rehabilitate posthumously the pro-Yugoslav Xoxe as a gesture to Tito. The Albanian duo instead tightened their grip on their country's domestic life and let the propaganda war with the Yugoslavs grind on. In 1955 Albania became a founding member of the Warsaw Treaty Organization (see Glossary), better known as the Warsaw Pact, the only military alliance the nation ever joined. Although the pact represented the first promise Albania had obtained from any of the communist countries to defend its borders, the treaty did nothing to assuage the Albanian leaders' deep mistrust of Yugoslavia.

Hoxha and Shehu tapped the Albanians' deep-seated fear of Yugoslav domination to remain in power during the thaw following the Twentieth Party Congress of the Communist party of the Soviet Union's in 1956, when Khrushchev denounced Stalin's crimes in his "secret speech." Hoxha defended Stalin and blamed the Titoist heresy for the troubles vexing world communism, including the disturbances in Poland and the rebellion in Hungary in 1956. Hoxha mercilessly purged party moderates with pro-Soviet and pro-Yugoslav leanings, but he toned down his anti-Yugoslav rhetoric after an April 1957 trip to Moscow, where he won cancellation of about US$105 million in outstanding loans and about US$7.8 million in additional food assistance. By 1958, however, Hoxha was again complaining about Tito's "fascism" and "genocide" against Albanians in Kosovo. He also grumbled about a Comecon plan for integrating the East European economies, which called for Albania to produce agricultural goods and minerals instead of emphasizing development of heavy industry. On a twelve-day visit to Albania in 1959, Khrushchev reportedly tried to convince Hoxha and Shehu that their country should aspire to become socialism's "orchard."

Data as of April 1992