FISCAL DECENTRALIZATION AND LOCAL GOVERNANCE IN ALBANIA: Case study of three rural communes

Abstract

Albania is in the process of democratization since the fall of communism in the early 90s. Since then it managed to move forward through the implementation of necessary legal and institutional frameworks on the path towards decentralization. Fiscal decentralization is among the crucial requirements for a smooth transition of powers from the central to local government. Fiscal decentralization is generally believed to bring future benefits for local government efficiency and effectiveness. Local government capacities in three case study communes in Albania were analyzed in order to assess the impact of fiscal decentralization on stakeholder participation and communes’ efficiency.