Municipalities of Albania

The municipalities of Albania, known as bashki in Albanian, constitute the principal tier of local self-government, comprising 61 units that administer the country's territory following the 2015 territorial and administrative reform.^[1][2] This reform, enacted through Law No. 115/2015, consolidated 373 pre-existing local authorities—primarily smaller municipalities and communes—into these larger entities to foster administrative efficiency, economies of scale, and improved delivery of public services such as infrastructure maintenance, education, and healthcare. Each municipality is led by an elected mayor and governed by a municipal council, with responsibilities extending over both urban centers and surrounding rural areas, further subdivided into 374 administrative units for granular management.^[3][1] Operating beneath 12 regions (counties), these municipalities handle a significant portion of decentralized functions, though fiscal constraints and capacity variations have posed ongoing challenges to their effectiveness.^[4]

Historical Development

Pre-Independence and Early Reforms

During the Ottoman Empire's rule over Albanian territories, which lasted from the late 14th to early 20th centuries, local administration was integrated into the empire's hierarchical system of eyalets (provinces), subdivided into sanjaks (districts), kazas (subdistricts at the town level), and nahiyes (smaller rural units encompassing villages).^[5] This structure emphasized central imperial oversight, with local officials such as kadis (judges) and subaşı (village headmen) handling taxation, justice, and basic order under directives from Istanbul, limiting autonomous decision-making to enforcement of imperial decrees rather than self-governance.^[6] Albanian regions, spanning vilayets like Janina and Scutari, featured approximately 20-30 kazas and numerous nahiyes by the 19th century, reflecting population densities and geographic features but without elected local bodies, as authority derived from appointed Ottoman administrators.^[7] Albania's declaration of independence on November 28, 1912, prompted initial adaptations of this legacy amid territorial instability and international recognition in 1913 via the London Conference. Early post-independence governance, outlined in provisional statutes like the 1914 Organic Statute, retained Ottoman-inspired divisions by organizing the state into seven sanjaks (prefectures), further split into kazas and nahiyes, to facilitate transitional control during conflicts with neighboring powers and internal tribal fragmentation.^[8] These units served as precursors to modern communes, with local assemblies emerging in urban centers for rudimentary services like road maintenance, though central government in Vlorë and later Tirana dominated appointments and policy, reflecting the nascent state's prioritization of national unification over decentralization.^[9] The establishment of the Albanian Republic in January 1925 under President Ahmet Zogu marked a shift toward formalized local self-governance, reorganizing the country into 10 prefectures to consolidate authority amid republican instability and economic pressures.^[10] The era's Law on Communes, enacted to define basic administrative bodies, introduced elected councils in rural nahiye-like communes for handling local taxes and infrastructure, responding to population growth from approximately 800,000 in 1923 to over 1 million by the 1930s, which necessitated finer-grained units for effective resource allocation and territorial stabilization under the emerging monarchy.^{[10] [11]} By the late 1930s, this proliferation had evolved districts into smaller communes—numbering in the dozens—driven by demographic expansion at rates of about 0.75% annually and efforts to integrate remote highland areas, though reforms remained ad hoc, constrained by fiscal limitations and external influences like Italian economic penetration.^[11]

Communist-Era Organization

Following the liberation from Axis occupation in November 1944, the communist government led by Enver Hoxha rapidly centralized administrative authority, dissolving pre-existing independent communes and traditional local governance structures as part of broader nationalization efforts.^[12] By 1946, the People's Republic of Albania was formally established, reorganizing the territory into 26 districts (rrethe), each overseen by elected People's Councils that served primarily as mechanisms for implementing directives from the central Party of Labour of Albania (PLA).^[13] These councils, numbering in the thousands at village, neighborhood, and district levels—corresponding to over 2,800 villages and urban units—lacked substantive autonomy, functioning instead as extensions of the unitary state apparatus under strict ideological oversight. Local decisions on resource allocation, production, and infrastructure were subordinated to national five-year plans, with PLA cadres ensuring conformity to Marxist-Leninist principles and Hoxha's cult of personality. From the 1950s through the 1980s, this vertical integration intensified amid Albania's self-imposed isolation from both Soviet and Chinese influences after ideological splits in 1961 and 1978, respectively.^[14] Municipal-level entities, restructured as administrative subunits within districts, prioritized collective farming cooperatives and state industrial quotas over local needs, suppressing individual or communal initiative to prevent deviations from central planning.^[15] Empirical indicators of inefficiency included persistent shortfalls in agricultural output—such as grain production stagnating below self-sufficiency thresholds despite forced collectivization—and infrastructural decay, attributable to rigid quotas that discouraged adaptive local management.^[16] Economic analyses from the era highlight how this top-down model, enforced through purges and surveillance, contributed to overall GDP per capita remaining among Europe's lowest by the 1980s, with minimal technological or productivity gains due to the absence of decentralized incentives.^[17] As the Hoxha regime weakened following his death in 1985, Ramiz Alia introduced limited reforms, but district-level structures persisted until the regime's collapse in 1990-1991, when mounting protests and economic crisis exposed the system's rigidity, paving the way for post-communist fragmentation without immediate replacement by autonomous municipalities.^[18]

Post-Communist Decentralization Attempts

Following the collapse of the communist regime in 1991, Albania consolidated its administrative structure into 12 prefectures, 36 districts, and 357 communes and municipalities, primarily to enable initial deconcentration in response to democratization demands after decades of rigid centralization.^[10] This reconfiguration aimed to distribute basic administrative tasks locally while preserving central oversight, as local entities lacked substantive fiscal or decision-making autonomy, reflecting the transitional government's priority on stabilizing national control amid economic chaos and political upheaval. Persistent central tendencies stemmed from the legacy of one-party rule, where local bodies had functioned as extensions of central directives rather than independent actors. The 1998 Constitution formalized basic local self-government principles, designating communes, municipalities, and regions as units of local power within Albania's unitary state framework, with self-governance exercised via elected councils and referenda whose rights were judicially protected.^[19] It abolished pre-existing regional layers inherited from earlier divisions, establishing 65 urban municipalities alongside rural communes, yet emphasized national unity over devolved authority, limiting local competencies to non-strategic areas like basic infrastructure and services. This constitutional setup responded to post-communist pressures for pluralistic governance but maintained central appointment of prefects and veto powers, constraining genuine decentralization. Incremental reforms, including the 2000 Law on the Organization and Functioning of Local Government (No. 8652), introduced modest taxing rights—such as property and small business levies—and assigned functions like waste management and local roads to municipalities and communes, influenced by early European integration aspirations under frameworks like the Stabilization and Association Process.^{[20] [21]} However, implementation faced criticism for insufficient fiscal transfers and oversight mechanisms, exacerbated by corruption scandals that eroded trust in local capacities, as central government retained dominance over budgeting and personnel. By 2014, fragmentation had expanded to 373 units (65 municipalities and 308 communes), fostering administrative overload, with local own-source revenues averaging only 31% of budgets and reliance on central allocations hindering efficient service delivery, such as in education and health where coverage gaps persisted due to capacity deficits.^{[22] [23] [24]} These outcomes underscored causal tensions between reform rhetoric and entrenched centralism, where EU-aligned incentives clashed with domestic political incentives favoring control to mitigate risks from weak institutions.

2015 Territorial and Administrative Reform

The 2015 territorial and administrative reform in Albania was enacted via Law No. 115/2015 "On the Territorial and Administrative Division of Local Government Units," which consolidated 373 communes into the existing 65 municipalities, resulting in 61 larger municipalities effective 31 July 2015.^[25][26] This restructuring reduced the total number of local government units from 438 to 61, aiming to enhance administrative efficiency through economies of scale in a context of limited resources and fragmented governance.^[27] The reform was primarily driven by the fiscal unsustainability of small administrative units, which typically operated with minimal budgets heavily reliant on central government transfers and lacked capacity for effective service delivery or infrastructure investment.^[28] Initiated under Prime Minister Edi Rama's administration, it aligned with broader decentralization efforts and EU accession requirements emphasizing viable local governance structures capable of managing public services.^[29][30] The process began with incentives for voluntary mergers in late 2014, transitioning to mandatory consolidations by mid-2015 to achieve nationwide uniformity.^[31] Post-reform, the average municipality population reached approximately 46,500 residents, enabling better resource pooling for local functions.^[32] The UNDP's STAR project supported implementation through capacity-building, facilitating initial rationalization of staff and infrastructure with reported efficiency gains, though regional variations in execution persisted.^[4][33]

Legal and Constitutional Framework

Constitutional Foundations

The Constitution of the Republic of Albania, promulgated on November 28, 1998, following its approval by referendum on November 22, establishes local government as a component of the country's unitary and indivisible state structure, explicitly rejecting federalism to safeguard national cohesion amid historical vulnerabilities to fragmentation.^[34] Article 2 affirms Albania's unitary character, vesting sovereignty in the people exercised through central institutions, while local entities derive authority subordinately from the Constitution and statutes.^[34] This framework prioritizes centralized oversight to mitigate risks of ethnic or regional separatism, a concern rooted in Albania's post-Ottoman and post-communist transitions. Article 13 mandates that local government operates on principles of decentralization of power and local autonomy, enabling municipalities—defined under Article 108 as primary units alongside regions—to manage affairs within their competence without encroaching on national sovereignty.^[34] Articles 109 through 114 delineate these units as second-level divisions, granting self-governing rights through elected organs such as assemblies and mayors, yet explicitly subordinating them to central authority; for instance, Article 114 empowers the Council of Ministers to dissolve municipal councils for grave violations, ensuring alignment with state law.^[34] Decentralization thus serves as a controlled devolution, not an independent sphere, reflecting pragmatic state-building to foster stability over expansive local sovereignty.^[35] Constitutional provisions impose verifiable constraints on municipal independence, including central override mechanisms during emergencies or fiscal distress to preserve unity. Article 100 authorizes the Assembly to declare states of emergency or natural disaster, temporarily centralizing powers and suspending local autonomies as needed for crisis response, as evidenced in applications during events like the 2019 earthquake where national coordination superseded local initiatives.^[34] Prefects, appointed by the central government under Article 115, monitor legality and can suspend unlawful municipal acts, reinforcing subordination without federal-style equality.^[34] Post-2008 amendments, including the 2007 change aligning local government terms to four years (effective from 2008 elections), clarified electoral synchronization with national cycles but preserved prefectural oversight and central veto powers, underscoring the Constitution's enduring emphasis on balanced decentralization within a unitary republic.^[36] These modifications addressed administrative efficiency without diluting core limits on local autonomy.^[37]

Primary Legislation Governing Municipalities

The primary legislation governing Albanian municipalities stems from the 2014-2015 territorial and administrative reform, which consolidated smaller communes and municipalities into 61 larger units to enhance efficiency and service delivery, though critics argue it maintained central oversight by prescribing boundaries and mergers without broad local input.^[4][38] Law No. 115/2014 "On the Administrative-Territorial Division of Local Government Units in the Republic of Albania," enacted on July 3, 2014, and effective from 2015, defined this structure by dividing the country into 12 regions and 61 municipalities, abolishing 373 pre-reform communes and integrating their territories, with provisions for future boundary adjustments requiring central government approval to prevent fragmentation.^[39] Complementing this, Law No. 139/2015 "On Local Self-Government," adopted on December 17, 2015, operationalizes municipal operations by delineating competencies transferred from central to local levels, such as waste management, local spatial planning, and pre-primary education, while establishing administrative units—known as njësitë administrative or nenat (totaling 373 nationwide)—as non-autonomous subunits within municipalities responsible for micro-local tasks like civil registration and basic infrastructure maintenance, without independent fiscal or decision-making powers.^[40][22] These subunits reflect a hybrid model where municipalities hold primary authority, but central laws limit their discretion, arguably centralizing control under the guise of decentralization by tying funding and oversight to national standards. Subsequent fiscal legislation has refined municipal revenue mechanisms without altering core structures; for instance, amendments in 2024-2025 to tax categorization for public space occupation—shifting formulas to prioritize urban density and commercial use—aim to boost local revenues by an estimated 10-15% in high-traffic areas, yet retain central regulatory caps to ensure uniformity and prevent fiscal disparities that could undermine national cohesion.^[41][42] This evolution underscores a pattern where legislative expansions of municipal roles are balanced by delimitations, such as mandatory reporting to the Ministry of Interior and veto powers over local decisions deemed contrary to national policy, prioritizing systemic stability over unfettered local autonomy.^[43]

Administrative Structure

Hierarchy Within Albania's Divisions

Albania's administrative structure operates as a unitary system with a tiered hierarchy designed for centralized coordination. At the intermediate level, 12 counties (qarqe) function as deconcentrated organs of the central government, responsible for supervising municipalities, implementing regional policies in alignment with national objectives, and ensuring harmonization of development strategies across territories.^[32][2] These counties lack elected legislative bodies; instead, prefects are appointed by the central executive to represent state interests and oversee compliance without devolved self-governing powers.^[32] The 61 municipalities constitute the primary units of local self-government, subdivided among the counties and serving as the operational base for decentralized functions such as service delivery and local planning.^[32][44] Each municipality encompasses multiple administrative units (njësi administrative), totaling 373 nationwide, which aggregate former rural communes and villages to maintain localized administrative efficiency while subordinating them to municipal authority.^[2][32] These subunits, numbering up to several dozen per municipality, facilitate granular tasks like basic infrastructure maintenance but hold no independent fiscal or electoral autonomy; their administrators are appointed by municipal mayors.^[44] This post-2015 configuration, unchanged as of 2023, embeds municipalities between national oversight via counties and sub-municipal execution layers, promoting operational scale and uniformity over fragmented autonomy.^[45][44] By vesting coordination in unelected county structures, the system prioritizes cohesive policy enforcement and resource allocation from the center, reducing incentives for territorial balkanization inherent in more devolved models.^[32]

Formation and Boundaries of Municipalities

The formation of Albania's current 61 municipalities resulted from the 2015 territorial and administrative reform enacted via Law No. 115/2014 "On the Administrative-Territorial Division of Local Government Units in the Republic of Albania," which merged 373 pre-existing communes and municipalities into larger entities to promote administrative efficiency, service provision, and fiscal sustainability.^[46] This consolidation prioritized territorial contiguity to ensure cohesive geographic units, alongside assessments of demographic density and economic viability, often yielding hybrid structures integrating urban cores with adjacent rural territories rather than strictly segregating them.^[47] While no rigid minimum population threshold was legislated, reform guidelines referenced viability benchmarks around 20,000 inhabitants to support self-governance capabilities, though actual mergers varied based on local contexts and central directives.^[46] Boundary delineations post-reform have remained largely static, with alterations requiring central oversight and parliamentary approval under the same legal framework, reflecting a policy emphasis on stability over frequent reconfiguration.^[2] A central mechanism, akin to territorial adjustment bodies established during the reform process, handles exceptional corrections for issues like urban sprawl or infrastructural needs; for instance, Tirana Municipality underwent targeted expansions incorporating peripheral areas to align with metropolitan growth patterns observed between 2015 and 2020.^[48] These changes are infrequent, as the reform's design sought to minimize political fragmentation by embedding boundaries in statute, thereby grounding them in empirical geographic and demographic data rather than partisan reallocations.^[49] The 61 municipalities collectively span Albania's total land area of 28,728 square kilometers, with average populations approximating 46,500 residents as of 2020 estimates, though sizes range widely from under 10,000 in remote units to over 500,000 in major cities like Tirana.^{[2] [32]} Official boundary mappings, maintained by the Institute of Statistics (INSTAT), provide precise delineations derived from cadastral surveys and census data, ensuring alignment with administrative realities for planning and statistical purposes.^[50]

Governance Mechanisms

Municipal Council and Decision-Making

The municipal council serves as the legislative body in each of Albania's 61 municipalities, comprising between 15 and 51 members depending on the unit's population size, with a national total of 1,613 councilors as of 2024.^[42] Members are elected every four years through proportional representation using closed party lists, as stipulated in the Electoral Code and Law No. 139/2015 on Local Self-Government, ensuring seats reflect voter support for participating political parties within the municipality.^[51] Council powers include approving annual budgets, adopting local bylaws and regulations, endorsing strategic development plans, and overseeing municipal property management, all within the framework of local competencies defined by Law No. 139/2015.^[22] However, these decisions are constrained by mayoral prerogatives, including the executive's ability to return proposed acts for reconsideration—functioning as a veto that the council can override only by a two-thirds majority—and by mandatory audits from central government bodies such as the Ministry of Finance.^[25] Decision-making occurs in public sessions, promoting transparency, but proceedings are frequently dominated by national party affiliations, leading to partisan gridlock on non-routine matters. Empirical evidence from local governance assessments indicates that alignment with national leadership often stalls local initiatives, as councilors prioritize party directives over independent deliberation. Voter turnout in local elections underscores limited civic engagement; the 2019 elections, marred by opposition boycott, recorded approximately 24% participation, reflecting broader disillusionment with polarized local politics rather than robust representation.^[52][53]

Role and Election of the Mayor

The mayor of an Albanian municipality serves as the head of the executive branch and is elected directly by universal suffrage through a first-past-the-post system, with elections held every four years coinciding with nationwide local polls.^[1][32] This winner-take-all format ensures a single candidate secures the position based on the plurality of votes in their municipality, promoting decisive local leadership aligned with national political currents, as seen in the Socialist Party's control of 54 out of 61 municipalities following the 2023 elections.^[54] The process is overseen by the Central Election Commission, with no term limits imposed on mayors, allowing incumbents to seek re-election indefinitely, though this has prompted debates on introducing restrictions to enhance turnover.^[55][56] In executing their mandate, mayors hold primary responsibility for implementing decisions of the municipal council, overseeing day-to-day administration, and representing the municipality in external relations with central government entities, other local authorities, and international partners.^[20] They exercise both political and administrative functions, including budget execution within council-approved frameworks and coordination of municipal services, which centralizes executive authority at the local level while subordinating operational control to elected oversight.^[22] Accountability mechanisms beyond periodic elections are limited, with recall petitions available under electoral law but invoked infrequently due to high thresholds and procedural hurdles, resulting in reliance on electoral competition for mandate revocation.^[57] The structure fosters strong mayoral influence, evidenced by the Socialist Party's sustained dominance post-2015 territorial reform, where aligned incumbents have leveraged administrative resources to maintain advantages in subsequent contests.^[58]

Powers, Functions, and Responsibilities

Exclusive Municipal Competencies

Under Law No. 139/2015 "On Local Self-Government," Albanian municipalities exercise exclusive competencies in areas of direct local interest not reserved to central authorities, encompassing primary responsibility for implementation, decision-making, and resource allocation within their boundaries, though often constrained by regulatory standards and funding transfers from the national level.^[59][60] These devolved powers, transferred via the 2015 territorial reform, aim to enhance proximity-based governance but reveal partial decentralization, as municipalities lack full fiscal autonomy and face uncompensated costs estimated at 8 billion Albanian lek (approximately €75 million) due to policy shifts without corresponding budget adjustments.^[60] Municipalities hold primary authority over local infrastructure, including the construction, rehabilitation, and maintenance of roads, streets, sidewalks, and public spaces, as well as public lighting systems.^[59][60] They also manage drinking water production, treatment, transmission, supply, and wastewater collection and disposal, alongside irrigation and drainage infrastructure administration.^[60] These functions align with subsidiarity principles by addressing immediate community needs, yet service delivery varies markedly; for instance, rural areas often lag in water infrastructure maintenance due to insufficient local revenues and reliance on central transfers equivalent to at least 1% of GDP under Law No. 68/2017.^[60] In urban planning, municipalities exclusively draft, administer, develop, and control territorial plans, including strategic economic development programs tailored to local conditions.^[59][60] This encompasses zoning, land use regulation, and oversight of building permits within municipal limits, excluding national strategic sites. Primary education oversight falls under exclusive purview through construction and maintenance of pre-university facilities (barring vocational schools), regulation of kindergartens, and promotion of libraries, though administrative inconsistencies—such as teacher appointments and staff transfers—persist across units due to absent national standards.^[60] Waste management constitutes a core exclusive domain, with municipalities responsible for household and municipal solid waste collection, removal, disposal, and treatment.^[59][60] Coverage remains uneven, reaching only about 60% of generated waste in 2019, predominantly in urban zones while rural areas suffer from inadequate systems and enforcement gaps.^[61] Local cultural heritage preservation, limited to sites of municipal significance, involves development, protection, and promotion activities, distinct from nationally designated monuments under central oversight.^[59] Overall, these competencies foster localized responsiveness but are undermined by funding dependencies and legal ambiguities, limiting autonomous execution.^[60]

Shared and Delegated Authorities

In Albania's unitary state framework, shared authorities between municipalities and central government primarily encompass collaborative execution of national-level policies in domains such as social services and environmental protection, where local units implement strategies under central oversight. Under Law No. 139/2015 on Local Self-Government, municipalities participate in joint planning for social care services, including beneficiary identification for housing programs in coordination with the Ministry of Health and Social Protection, while retaining operational responsibility for service delivery.^[59] Similarly, environmental protection involves shared formulation of air, soil, and water quality strategies with the Ministry of Tourism and Environment, alongside local measures like waste management, though divisions of responsibility often require inter-institutional coordination to avoid overlaps.^{[59] [25]} Delegated authorities, distinct from shared ones, transfer specific revocable powers from the central government to municipalities, financed primarily through state budget allocations and subject to central revocation for non-compliance. These include mandatory functions like administering economic assistance and disability payments in social services, as well as fire protection and rescue operations in emergency response, where municipalities must meet national standards for equipment and readiness.^{[59] [25]} In emergency coordination, for instance, municipalities organize local plans and firefighting stations but defer to central directives during regional crises, such as obtaining transport permissions from the Ministry of Infrastructure.^[59] Law No. 139/2015 expanded these delegations post-2015 territorial reform, emphasizing municipal frontline roles in civil protection under Law No. 152/2015, yet retaining central authority to reclaim functions if performance falters.^[59] Tensions in implementation have surfaced in practice, particularly during crises like the COVID-19 pandemic, where local social protection responses—such as municipal-level assistance distribution—encountered disconnects with central guidelines, leading to uneven accessibility and coordination challenges between Tirana and regional units.^{[62] [63]} For delegated emergency functions, municipalities' preparation gaps, including inadequate shelters and evacuation planning as of 2021 assessments, underscored revocability risks, with central interventions overriding local efforts in major events.^[64] Funding for both shared and delegated authorities ties delegated functions to conditional intergovernmental transfers based on historical costs (e.g., 2016–2018 baselines) and performance compliance with national standards, as outlined in Law No. 139/2015 and supporting decisions like DCM No. 955/2016.^{[59] [65]} Non-mandatory delegations allow opt-in but hinge on demonstrated capacity, reinforcing central control in Albania's decentralization model despite municipal execution roles.^[25] This structure prioritizes national policy uniformity, with empirical evaluations noting persistent funding shortfalls for environmental and social shared tasks.^[66]

Fiscal and Economic Dimensions

Revenue Generation and Local Taxes

Own-source revenues for Albanian municipalities derive mainly from local taxes on immovable property, infrastructure impact taxes tied to construction permits, small business taxes, and fees for municipal services such as waste management, public space occupation, and facade usage.^[67][65] These sources typically account for 30-40% of total municipal budgets, reflecting limited fiscal autonomy in a context of low per capita tax bases and economic informality.^[67] Local taxes alone comprised 59% of own-source revenues in 2022, totaling 19 billion Albanian lek (approximately 155 million euros), with property taxes contributing 6.1 billion lek (about 50 million euros).^[67] The infrastructure impact tax, a one-time levy on new constructions at rates of 4-8%, has emerged as a key revenue driver, yielding 10.1 billion lek in 2022, though heavily concentrated in urban areas like Tirana, which captured 73% of collections.^[67][65] Fees and charges, including those for public utilities and space occupation, made up 38% of own-source revenues that year, underscoring reliance on service-based levies amid underdeveloped property taxation.^[67] For 2025, municipal tax formulas underwent revisions, particularly for facade taxes and public space occupation fees, introducing updated categorization to align assessments with market values and boost collection potential.^[41] These changes aim to address undervaluation but face implementation hurdles in rural settings with sparse commercial activity. Average annual municipal revenues hover between 5 and 10 million euros, with urban municipalities benefiting from higher property densities and construction booms—evident in Tirana's dominance, accounting for 45-63% of national property tax and impact fee totals—while rural ones average far less due to agricultural land exemptions and weak economic bases.^[68][69] Collection rates remain suboptimal, often below 70% in non-urban areas, hampered by tax evasion, incomplete fiscal cadastres, and arrears totaling 5.9 billion lek in 2022.^[65][67] Informality in sectors like tourism further erodes yields, perpetuating inefficiencies in a system where own-source potential lags regional peers by factors of three to four in per capita terms.^[65][67]

Intergovernmental Transfers and Funding

Intergovernmental transfers from the central government to Albanian municipalities are governed by the Law on Local Self-Governance Finance (No. 68/2017), which outlines four primary types: shared taxes, unconditional transfers, conditional transfers for delegated functions, and conditional grants for specific projects.^[70] Unconditional transfers, intended to support general municipal operations, are formula-based and primarily allocated according to population size, surface area, and fiscal capacity indicators, aiming to ensure a baseline revenue floor for all units.^[65] Conditional transfers, by contrast, fund earmarked responsibilities such as education, health, and social services devolved from the center, with allocations tied to verifiable needs and performance metrics to enforce compliance.^[71] These transfers form the backbone of municipal budgets, often comprising the majority of revenues and exposing local entities to central fiscal dominance that limits autonomous decision-making. An equalization fund mechanism directs additional resources to municipalities with per capita revenues from shared taxes below the national average, calculated annually by the Ministry of Finance to mitigate regional disparities.^[65] In practice, transfers have historically accounted for over half of local expenditures, with data from post-2015 territorial reforms indicating dependencies ranging from 50% to 70% in smaller or rural units, where own-source revenues remain underdeveloped.^[72] This structure, while stabilizing poorer municipalities, fosters formulaic predictability at the expense of incentives for local revenue mobilization, as central adjustments can override local priorities.^[65] Allocations through instruments like the Regional Development Fund (RDF) introduce elements of political discretion, where project-based grants are approved centrally, often prioritizing areas aligned with national agendas over equitable need.^[72] Empirical analyses reveal patterns of informal networking and mayoral influence in securing RDF funds, contributing to clientelistic practices that undermine merit-based distribution, as evidenced in studies of grant access dynamics.^[72] Supreme Audit Institution reports have flagged irregularities in transfer utilization, including delays and misallocations linked to partisan considerations, reinforcing causal links between centralized control and reduced local accountability.^[73] External funding, particularly from the European Union, supplements domestic transfers via programs channeled to municipalities for infrastructure upgrades. The EU for Municipalities Grant Scheme (EU4M), active since 2023, provides sub-grants ranging from €20,000 to €200,000 for local projects in public services, economic development, and environmental improvements, with over €476 million in cumulative WBIF grants supporting Albanian public sector investments by 2025.^[74] Under the EU Growth Plan (2024–2027), Albania has received disbursements like €100 million in 2025 for reforms enabling infrastructure in transport and energy, often executed through municipal entities to build capacity ahead of potential accession.^[75] These funds, while enhancing project execution, remain conditional on central oversight, perpetuating dependencies rather than fostering full fiscal independence.^[76]

Reforms, Challenges, and Criticisms

Outcomes and Empirical Assessments of the 2015 Reform

The 2015 Administrative and Territorial Reform (ATR) in Albania, which consolidated 373 units into 61 municipalities, yielded mixed empirical outcomes, with documented administrative efficiency gains offset by persistent challenges in citizen accountability and service equity. Analyses of select counties, such as Gjirokastër, indicate per capita administrative expenditure reductions of 42-51% in merged municipalities like Tepelenë and Memaliaj between 2014 and 2016, alongside a 66.9% average increase in per capita revenue, enabling expanded service investments.^[77] These fiscal shifts supported economies of scale, with service expenditures tripling on average in the studied areas, including enhancements in decentralized functions like education and fire protection.^[77] Service delivery metrics show urban-centric improvements, such as gradual expansions in water supply and health infrastructure coverage post-reform, though overall infrastructure satisfaction remains below 35% and social services under 15%.^[78] Rural areas, however, experienced lagging access, with 15% of respondents reporting no infrastructure services and 56.5% lacking public transport, exacerbating disparities in school maintenance and institutional visibility.^[78] Citizen assessments reveal accountability shortfalls, as a 2025 survey of 248 respondents found 89% preferring the pre-reform system's proximity for service quality and 65% rating current municipal performance negatively, with 80% deeming municipal police ineffective.^[78] Municipal budgets have stagnated at approximately 1% of GDP, constraining broader capacity gains despite initial fiscal decentralization aims.^[78] Longitudinally, the structure has remained stable through 2025, with no reversals amid fiscal pressures, though sectoral studies note enhanced inter-municipal cooperation in areas like waste management without comprehensive national monitoring.^[79]

Ongoing Debates on Efficiency Versus Local Autonomy

The 2015 Administrative and Territorial Reform (ATR) in Albania, which consolidated 373 local government units into 61 larger municipalities, has sparked ongoing debates between advocates of administrative efficiency and proponents of enhanced local autonomy. Centralist reformers argue that larger units enable economies of scale in service delivery and fiscal management, reducing fragmentation that previously hindered coordinated infrastructure and public goods provision.^{[78] [80]} This perspective aligns with European trends toward amalgamation for viability, as smaller pre-reform communes often lacked the administrative capacity for complex projects, such as regional road networks or disaster risk management, which post-reform municipalities have pursued with central support.^{[81] [79]} Critics, including localist factions and opposition groups, contend that the mergers have eroded grassroots democracy by distancing decision-making from communities, potentially enabling elite capture in consolidated units where accountability mechanisms weaken. During the reform's adoption, the Democratic Party opposition threatened nationwide protests against what it described as unilateral central imposition, boycotting parliamentary processes and highlighting risks to local representation.^[82] Post-reform surveys reveal persistent discontent, with only 38% of respondents expressing satisfaction with local government responses to crises like the 2019 earthquake, attributing gaps to overburdened larger structures neglecting peripheral areas.^[83] In ethnic minority regions, such as those with Greek or Macedonian communities, localists invoke cultural erosion from diluted representation, though empirical data on heightened interethnic tensions remains limited, with official assessments noting sustained mutual respect.^[84] Pro-reform voices emphasize fiscal prudence, citing improved alignment with EU decentralization standards requiring viable municipal sizes for accessing funds and implementing policies like integrated territorial strategies.^[85] A 2025 survey analysis underscores efficiency gains in public service delivery but cautions that accountability has not proportionally advanced, fueling calls for hybrid models balancing scale with subsidiarity.^[78] Localists counter with evidence from citizen polls showing lower trust in enlarged municipalities, advocating devolution of competencies to prevent central overreach.^[86] As of 2025, no major legislative proposals for further mergers or deconcentration have emerged, amid EU pressure for fiscal reforms enhancing local revenue autonomy while addressing capacity deficits.^{[87] [88]} The European Commission's 2024 report highlights ongoing intergovernmental transfer adjustments to bolster municipal financial independence, yet without resolving core tensions between centralized efficiency and localized responsiveness.^[89]

Enumeration and Classification

List of Current Municipalities by County

Albania comprises 12 counties subdivided into 61 municipalities, as defined by Law No. 115/2014 on the territorial administrative division, with no alterations since the reform's implementation in 2015.^[90] These units encompass both urban centers and amalgamated rural areas, totaling a resident population of 2,402,113 as per the 2023 census conducted by INSTAT.^[91] Berat County (5 municipalities): Berat, Dimal, Kuçovë, Poliçan, Skrapar.^[90] Dibër County (4 municipalities): Bulqizë, Dibër, Klos, Mat.^[90] Durrës County (3 municipalities): Durrës, Krujë, Shijak.^[90] Elbasan County (7 municipalities): Belsh, Cërrik, Elbasan, Gramsh, Librazhd, Peqin, Prrenjas.^[90] Fier County (6 municipalities): Divjakë, Fier, Lushnjë, Mallakastër, Patos, Roskovec.^[90] Gjirokastër County (7 municipalities): Dropull, Gjirokastër, Këlcyrë, Libohovë, Memaliaj, Përmet, Tepelenë.^[90] Korçë County (6 municipalities): Devoll, Kolonjë, Korçë, Maliq, Pogradec, Pustec.^[90] Kukës County (3 municipalities): Has, Kukës, Tropojë.^[90] Lezhë County (3 municipalities): Kurbin, Lezhë, Mirditë.^[90] Shkodër County (5 municipalities): Fushë-Arrëz, Malësi e Madhe, Pukë, Shkodër, Vau i Dejës.^[90] Tirana County (5 municipalities): Kamëz, Kavajë, Rrogozhinë, Tiranë, Vorë.^[90] Vlorë County (7 municipalities): Delvinë, Finiq, Himarë, Konispol, Sarandë, Selenicë, Vlorë.^[90]

Maps and Demographic Overviews

Official maps of Albania's municipalities, such as those delineating the 61 units established by the 2015 territorial reform, illustrate the country's administrative boundaries as defined by Law No. 115/2014 and overseen by the Central Election Commission for electoral purposes. These visualizations highlight the geographic consolidation of former communes into larger entities, particularly in mountainous and coastal regions, to address disparities in terrain and accessibility that complicate governance.^[92] The 2023 Population and Housing Census conducted by INSTAT recorded Albania's total population at 2,402,113, reflecting ongoing depopulation trends driven by emigration and low birth rates, with an estimated further decline to 2,363,314 by January 1, 2025. Urbanization has accelerated post-reform, with the urban population surpassing the rural share, reaching approximately 74% or 1,774,817 individuals by 2024, fueled by internal migration to centers like Tirana and administrative reclassifications that expanded urban designations. This shift impacts municipal viability, as rural outflows strain smaller units' capacity to sustain services amid shrinking tax bases.^[93][94][95] Population density exhibits stark variations across municipalities, averaging 99 inhabitants per km² nationally but exceeding 1,000 per km² in Tirana due to its role as the economic hub, contrasted with densities below 50 per km² in remote eastern and northern units like those in Dibër or Kukës counties. These disparities, evidenced in INSTAT's spatial analyses, underscore the reform's rationale for merging low-density areas to improve economies of scale, though persistent migration continues to exacerbate inequities in service provision between densely populated urban cores and depopulating peripheries.^[32][96][97]