THE BALKANS HAVE been home to many a lost cause and the recent decision by Albchrome, Albania's state-owned chrome producer, to reject ajoint-venture proposal from the Macalloy US/UK consortium (Hotline May 18) should provide an object lesson for companies seeking partners in one of Europe' s remoter regions. In Albchrome's case, the joint-venture scenario has became all too predictable: a foreign company makes an investment proposal; Albchrome hesitates, then rejects it; the foreigners go home grumbling and Albchrome's disgruntled workforce usually declares a strike. This farce has run and re-run, involving companies ranging from South Africa's Samancor to a consortium led by Germany's Mannesmann and Metallgesellschaft. Most recently a 42m dollars deal with US producer Macalloy has foundered, and few observers can be entirely surprised. Those seeking a reason could start by considering the immense cultural gulf between modern corporate notions of investment and Albania's legacy of centuries-old isolation. Negotiators on both sides often find they speak widely differing languages - and not only in the purely linguistic sense. A veritable army of well-meaning - and well paid - foreign consultants has often merely served to confuse the issues and encourage Albchrome's unrealistic over-valuation of its own assets. None of this makes it easy to strike a deal, especially when the exploitation of one the country's principal resources is in question.
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