The Austro-Hungarian and Italian Rivalry for Economic Supremacy in Albania, 1890-1918

Abstract

This paper seeks to examine the economic interests of the Austro-Hungarian Empire and the Kingdom of Italy in Albania, with particular emphasis on the dynamics of their rivalry regarding the economic influence over the Albanian territories initially under the Ottoman sovereignty and subsequently as part of the newly independent Albanian state.
The study focuses on the period beginning in the late nineteenth century, a time marked by a strong competition between the two powers regarding the strategic and economic dominance in Southeastern Europe, with Albania emerging as a focal point of their ambitions. Austria-Hungary, having already made substantial investments across the Balkan Peninsula, concentrated its efforts on acquiring concessions for the exploitation of natural resources – particularly forestry – and on expanding the regional railway infrastructure to integrate the Albanian territories into its broader economic and logistical network in the Balkans.
Conversely, Italy demonstrated a marked interest in southern Albania, where it pursued a strategy of economic engagement through substantial investments and the development of strong commercial ties with the local population. Its presence was particularly influential in the trade sector, where it aimed to gain a lasting economic foothold and expand its sphere of influence.
In a moment in which both states aspired to assert their economic dominance over Albania, their mutual rivalry became increasingly pronounced. However, in an effort to prevent the escalation of bilateral tensions, Rome and Vienna concluded a series of agreements addressing not only the most urgent economic interests but also broader issues pertaining to the political and economic trajectory of Albania.