This paper studies the distribution of well being and, specifically, the degree of poverty and deprivation experienced in Albania, making use of the 2002 and 2005 Living Standard Measurement Surveys (LSMS). The distributional analysis is performed by using both one-dimensional and multidimensional methodologies. In addition the paper analyzes the interplay between economic growth, inequality and poverty in Albania, in particular seeking to highlight the role of redistributive policies.