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What factors account for the transformation-democracy nexus and the failure of democratization in Albania? Current literature assumes that while neoliberal policy frameworks promoted by transnational actors have inextricably a democratizing effect, the failure of democratization results from internal features that are thought to be peculiar to Albania. This article challenges this assumption. Building on Antonio Gramsci’s concept of passive revolution, we show that, while the demise of ‘real socialism’ unlocked the potential towards a freer society, it was the neoliberal restructuring that placed limits on the process of democratization. The failure of Albanian democratization is associated, therefore, not with cultural peculiarities, but with neoliberal passive revolution, that led to the thwarting of democratic gains and establishment of a new class domination in line with a neoliberal accumulation strategy.

The Political Economy of Passive Revolution in Albania: The Neoliberal Paradox and Transformation-Democratization Nexus