Albania became a parliamentary republic in the early 1990s and thus ended more than 40 years of communism. The Parliament is unicameral. The Head of State is the President of the Republic and the Government is led by the Chairman of the Council of Ministers.

The Republic of Albania (Republika e Shqiperise) comprises three levels of governance: central, regional (county or qark) and local (municipalities and communes). The decentralisation process started in 2000 with the adoption of the ‘Decentralisation Strategy’. The latter established a new territorial structure based on Regions, Municipalities and Communes, thus abolishing the Districts. The decentralisation process was further developed between 2000 and 2007, the most recent step being the adoption of the ‘Regional Development Cross-Cutting Strategy’, approved in 2007. Nevertheless, it still needs to be fully implemented[1].

In 2014, the Government proposed a new administrative scheme that was implemented in June 2015 with local elections following public consultation. The reforms saw to the abolishment of communes and reduction in municipalities from 375 municipalities and communes to 61 municipalities. The legislative basis for this is found in Law No. 115, 2014, revising the Law No. 8653, 2000. A full table of the revised municipalities and their constituent communities is available here. 

The previous territorial organisation, which was inherited from the former communist system, was embedded in the following legislation:

• the 2000 Decentralisation Strategy;
• the 2000 Law on organisation and functioning of local government[2];
• the 2000 Law on territorial administrative division of local government units in Albania[3];
• the 2001 Legal Package on Public Property and the Transfer to Local Government;
• four Decisions of the Council of Ministers (2003/2004) on decentralisation; and
• the 2007 Regional Development Cross-Cutting Strategy.

The territorial organisation here was symmetrical and made no distinction between the size or capabilities to carry out the delegated functions. This led to inequalities in revenues across local government units and an inconsistent delivery of services. While competencies at the local level are not dissimilar from prior to the reforms, municipalities’ capabilities have been significantly increased. 

Although there extensive administrative reforms at the local level, at the regional level there are still 12 counties and no change has been implemented. Municipalities are grouped under the 12 existing counties.

The principles of decentralisation and local autonomy have not changed and are embedded in the Constitution (art. 13). Central authorities are vested with the residual competence (Art. 13). LRAs are attributed ‘exclusive functions’, ‘shared functions’ and ‘delegated functions’ which they exercise in accordance with the subsidiarity principle[4]. They do not hold legislative powers and exercise their functions by means of decrees, ordinances and orders. 

Local government units are granted the right to fiscal autonomy (Constitution, Article 157). Local revenues are derived from own sources (locally derived taxes and fees), shared national taxation and governmental grants. Moreover, the central Government must provide local self-government units with sufficient funds in case of delegated and shared functions. Local government units have the right to fiscal autonomy provided they disclose their financial accounts publicly.[5]
 
Central level

State responsibilities

• Any State function not attributed to another authority;
• Guidelines of the general State policy;
• Security and defence;
• Implementation of legislation and policies;
• Citizenship;
• State of emergency;
• Civil service, and
• Territorial division.

Regional level

Responsibilities of the counties or qarks

• Development and implementation of regional policies;
• Harmonisation of regional policies with the national level;
• Any delegated function by the central Government.
  

Local level

Local exclusive competences

• Water supply;
• Sewage and drainage systems;
• Local roads, pavements and squares;
• Public lighting;
• Public transport;
• Cemetery management and funeral service;
• Decoration service;
• Management of parks, gardens and public green spaces;
• Waste management;
• Land and urban development;
• Social services;
• Culture;
• Local economic development;
• Small business development;
• Preservation and development of local cultural and historical values;
• Organisation of sport and leisure activities;
• Administration of kindergartens, care homes for the elderly , orphanages, etc.;
• Veterinary services.
• Road transport infrastructure

Competences shared with the central Government

• Pre-school and pre-university education;
• Primary healthcare and public health;
• Social assistance and poverty mitigation;
• Protection of the environment;
• Public order and civil security. 

Any delegated function by the central Government.



[1] CeSPI, 2nd research report on ‘Decentralisation and local development in Western Balkans: convergences and divergences among different contexts’, drafter by Raffaella Coletti with the collaboration of Andrea Stocchiero, June 2011, Rome.

[2] Law No. 8652/2000 on organisation and functioning of local government of 31.07.2000.

[3] Law No. 8653/200 on administrative – territorial division of LGUs of 31.07.2000.

[4] Law No. 8652/2000 on organisation and functioning of local government of 31.07.2000, Article 9.

[5] Law No. 8652 on organisation and functioning of local government, of 31.07.2000, Chapter V. ​