Local government faces three main challenges significant to public administration reform in modern countries. The first involves improving the quality and operational efficiency of local government and administration at the lowest cost while exercising democratic control. This implies raising local administration productivity, reducing public costs (state, municipal and other), rendering transparency in local government activities, actively involving the community and citizens in local government and developing effective control and redress mechanisms.
Special attention is given to the creation of necessary legal frameworks for the decentralization of authority and particularly for the decentralization of public services. A significant goal in this sphere is fighting corruption.
The second trend concentrates on restructuring the relationship between local governments and citizens and acknowledgement of the fact that citizens are the customers of the local administ-ration. The shift of focus on citizens as clients in the public sector depends upon two principal considerations. First, citizens are users of public services provided by local authorities for which they pay either directly or indirectly through the collection of fees and taxes. Second, any particular public service has a value, price and quality that has to correspond to the needs and requirements of citizens in their capacity as taxpayers and users of these services. Since citizens are clients in the public sector, they have to be protected against possible discrepancies in the “price-quality”
correlation. Linked to this are efforts to optimize public services delivery and to develop appropriate mechanisms of redress.
The third trend is adjustment of local governments and local administration to the requirements and conditions of economic development of both the locality and the country. Thus, it also includes the search for a reasonable balance between the public and private sectors on the local level and the use of private sector methods and approaches in local public management. Public procurement and other forms of contracting are tools of modern local government.
Whether viewed as an imperative process or as an outcome, the countries analyzed in this volume are in the midst of redefining their cultural frames of reference; their political, economic and administrative institutions; and the political-territorial organizations of government. Owing to the complicated challenge of (1) seeking autonomy within the national system, (2) hard financial conditions of transition and (3) the consequences of European integration, the adaptability and flexibility of local government systems will be put to a critical test in the coming years. The local level will play an increasingly important part in national policymaking and problem solving.
The size and multiplicity of tasks that are being undertaken at the local level and the complexity of the problems that arise indicate that purely local or purely national methods of resolving these issues are insufficient. For this reason, a high degree of cooperation, partnership and understanding among all levels of government is indispensable.
Looking at the recent situation and the possible future development of the countries under comparison, one can ascertain what is most urgently needed for local government in this region at the moment. Following are some of the necessary steps to be taken.
1. Clear legislative distinction between the responsibilities of central and local governments.
2. Clear legislative definition of the powers of self-government authorities: What are the indepen-dent and undivided powers of municipalities? How does law guarantee these powers?
3. Establishing the conditions for real decentralization—political, administrative and financial;
enlarging the scope of powers of local self-government.
4. Strengthening self-government capacities through:
• direct assistance and support from the state—legislative, financial, et cetera;
• development of self-generated sources of income and actively searching for new forms of financing;
• training of local officials and administrators;
• creation of larger and more decentralized local government units;
• active use of local government associations.
5. Enhancing the role of local governments within the limits of their powers and resources in the economic development of local territories by establishing partnership relations with the private sector.
6. Enhancing the role and significance of nonprofit organizations in performing local govern-ment activities, such as delegating functions to public nonprofit organizations and establish-ing partnerships with them.
7. More active participation of citizens in public affairs, such as:
• bringing citizens closer to the centers of decision making;
• making greater use of controlling and redressing mechanisms.
8. Providing local government administrative systems with greater efficiency through:
• establishment and implementation of regional plans;
• coordination of municipal tasks;
• improvement of local public services delivery;
• introduction of functional integration.
It is clear that central and local governments are natural partners in governing. Redefining roles and responsibilities is an ongoing process, one that has been continuous, because the functions of government are changing in response to new conditions. Developing modern local government should be an agenda for change in the present systems of the Balkan countries.
Notes
1 Local Governments in the CEE and CIS, 1994: An Anthology of Descriptive Papers (Budapest:
Institute for Local Government and Public Service, 1994).
Local Government in Albania
by Artan Hoxha
C h a p t e r 2
Local Government in Albania
Contents
1. Legal and Constitutional Basis ... 45 1.1 Brief History of Local Self-government ... 45 1.2 Territorial Structure ... 48 1.3 Status of Cities and the Capital ... 49 1.4 Relationship between State Administration
and Local Government ... 49 1.5 The Introduction of Regions ... 50 2. Local Politics, Decision Making ... 51 2.1 System of Local Elections ... 51 2.2 Forms of Direct Democracy ... 52 2.3 Distribution of Power among Different Levels of Government ... 53 2.4 Internal Structure of Local Government Decision Making ... 53 2.5 Public Participation in Decision Making ... 54 2.6 Ethnic Issues, Multicultural Government ... 55 2.7 Local Government Associations and International Contacts ... 56 3. Local Administration, Service Provision ... 56 3.1 Structure and Operation of Local Administration ... 56 3.2 Control, Audit and Supervision of Local Governments ... 58 3.3 Local Service Delivery ... 59 3.3.1 Local Jurisdiction in Service Delivery ... 59 3.3.2 Distribution of Functions among
Different Levels of Authority ... 62 3.3.3 Forms of Service Delivery ... 63 4. Local Finance ... 64 4.1 Budgeting Process ... 65 4.2 Revenues ... 66 4.2.1 State Grants ... 66 4.2.2 National Shared Revenues ... 67 4.2.3 Independent Revenues ... 67 4.2.4 Loans ... 70 4.3 Expenditures ... 71
5. Next Steps in the Transition Process ... 73 Recent Publications on Local Government in Albania ... 76 Contacts for Further Information on Local Government in Albania ... 77 Annex 2.1: Major General Indicators ... 79 Annex 2.2: Population, Settlements and Administrative Units ... 81 Annex 2.3: Major Laws on Public Administration and Local Government ... 85 Annex 2.4: Responsibilities of Administrative Tiers ... 86