The role of fiscal decentralization on economic development. Case of Municipality of Shkodra

Abstract

Local government is an important topic for all citiziens of our country, and this because we are affected by it 
directly or indirectly, not only from local tax, but also through services that we as consumers take from it. It would 
be difficult to find a developed or developing country that is not realizing any kind of reform in public 
administration, focusing on a better management for people, increasing efficiency, effectiveness and quality of 
public services.  
The process of decentralisation in Albania has started in 2000. The process has been accompanied by a growth 
of interest in local government reforms, concentrated in restructuring and  reorganization. The territorial reform is 
seen as a very important element of this process. Decentralization reform in Albania has increased the 
responsibilities of local government and local autonomy for the allocation of expenditures, but with a less rapid 
development of local autonomy of earnings. 
The prospecive European Integration  is dictating essential structural changes and socio-economic for Albania. 
Objectives of reform all over  the world are similar, they differ mainly due to different stages of development of 
societies and due to different local values. Their implementation is a real challenge for central government and 
local government. 
The purpose of this paper is to provide an overview of actual situation of local government management and the 
problems which it faces. The way that process of fiscal decentralization  is implemented in Municipality of 
Shkodra will be the main point in our paper.