Enver Hoxha, having emerged as a key political figure during the anti-fascist resistance against Nazi occupation, announced the establishment of the People's Republic of Albania in Tirana. Following the conclusion of World War II, Albania found itself amidst a wave of communist revolutions across Eastern Europe. This unique moment allowed Hoxha, who had previously held positions within the government set up after the war, to assume full control and legitimize his leadership. His declaration not only marked a significant shift in Albania’s political landscape but also aligned the country closely with the Soviet Union.

The proclamation was a response to both internal dynamics and external pressures, as the new government sought to consolidate power and establish a socialist state. Hoxha's government initiated major social and economic reforms aimed at transforming Albania into a Marxist-Leninist state. This included nationalization of industries, land reform, and the establishment of a one-party system that would dominate Albanian life for over four decades. The ramifications of this declaration rippled through not only Albanian society but also the broader context of Cold War politics in Eastern Europe, where communist ideology was spreading quickly.

Hoxha's ruling style would become marked by increasingly autocratic measures, with systematic repression of opposition and dissent as he sought to maintain control over the narrative of Albanian socialism. His government's alignment with Stalinist principles would also lead to Albania's isolation from the West and shape its foreign policy for years to come. The People's Republic of Albania under Hoxha became a case study of how small nations navigated the complexities of post-war politics influenced by global ideologies, shaping its national identity and international relations significantly.