Abstract:
At different fields of decentralization, many developing countries are trying to extend the functions of sub-national governments in providing public goods and services for their citizens. The incentives for decentralization play an important role in local government activity, as part of the government which impacts directly on people’s lives. Using as a case study Albania, this research aims to offer a better understanding of decentralization process and local government development towards sustainability. A review on decentralization experience indicates that Albanian decentralization has been grown in a fragile environment that has progressed slowly in its formation, as a result of various challenges and conditions. The data gathering method consists in qualitative and quantitative sources which are used to gain insights in the analysis of the thesis. The results of the study point out that the Albanian Government priority related to local government issues, is the execution of Administrative-Territorial Reform as an effective driver for local government sustainable development. Through it the national policy aims to increase capacity, further democratization, guarantee high efficiency of public services, creates premises for an integrated development and administrative consolidation.