Albania's independence was recognized by the Conference of London on 29 July 1913, but the drawing of the borders of Albania ignored the demographic realities of the time. The short-lived monarchy (1914–1925) was succeeded by an even shorter-lived first Albanian Republic (1925–1928), to be replaced by another monarchy (1928–1939), which was annexed by Fascist Italy and then by Nazi Germany during World War II. After the liberation of Albania from Nazi occupation, the country became a socialist republic, the People's Republic of Albania, which was led by Enver Hoxha and the Party of Labour of Albania.
The People's Republic was dissolved in 1990, and the Republic of Albania was founded in 1991. The Communists retained a stronghold in parliament after popular support in the elections of 1991. However, in March 1992, amid liberalisation policies resulting in economic collapse and social unrest, a new front led by the new Democratic Party took power. The economic crisis spread in late 1996 following the failure of some Ponzi schemes operating in the country, peaking in 1997 in an armed rebellion that led to another mass emigration of Albanians, mostly to Italy, Greece, Switzerland, Germany and North America.In 1999, the country was affected by the Kosovo War, when a great number of Albanians from Kosovo found refuge in Albania.