Abstract
The purpose of the study is to analyze in a substantive manner the circumstances in which Albanian-Italian and Albanian-Yugoslav relations have developed and in particular to reflect the causes and consequences of the Italian-Yugoslav rivalry for economic and political dominance in Albania. Although the objective and clear reflection of the Italo-Yugoslav rivalry affects the exact recognition of the specifics and challenges that these countries faced in extending their influence over Albania through the economy during the above-mentioned period. As a result of the essence of these challenges, we are able to create a clearer perspective in the development of more intensive economic and political relations between Albania and the former Kingdom of Yugoslavia, on the one hand, and Italy and the countries of the former Yugoslavia on the other. Though today Italy does not focus on the Albanian area due to the common European market, the countries of the former Kingdom of Yugoslavia continue to have tendencies for dominance in the economy of the Albanian state. The real reflection of the specifics and challenges in the period 1929-1934 and the analogy with the specifics of today, are another essential goal.
 Scientific novelty: it was concluded that the characteristic of the Italian-Yugoslav rivalry in the period 1929-1934 is the dominance of the Kingdom of Yugoslavia in the political and to some extent also the economic life of Albania, in particular in the years 1933-1934, although Italy was much more powerful and more present in political and economic life. But the reason for this favorable position of the Kingdom of Yugoslavia only in this period of time was the crisis in Albanian-Italian relations, as a consequence of the refusal of the Albanian side to renew the Pact of Friendship in 1931 and Italy’s request for customs union with Albania in 1932. The rivalry between these two countries was exacerbated by the geographical proximity of the two countries to Albania, and the small cost of benefits, so their interest was extremely high.
 Conclusions. In 1929-1934, the Kingdom of Yugoslavia and Italy had fierce competition for political and economic dominance in Albania. However, despite the temporary advantage of the first one and its constant efforts, Italy managed to be dominant and challenge its main competitor in Albania: the Kingdom of Yugoslavia. It even managed to remove Albania from Yugoslav influence, turning it in its entirety on its side. In addition to the Kingdom of Yugoslavia’s economic and military powerlessness in comparison to Italy, the Italians throughout the 1920s had invested a great deal of time and resources in establishing the state of Albania, which sought support from some power of the time, such as Italy, in its efforts to attain overall development. The political and economic life of Albania was also dominated by Italy due to its proximity to Albania and the fact that neither Greece nor the Kingdom of Yugoslavia had territorial claims towards Albania, at least not until the mid-1930s.
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