Albanian Regional Development Opportunities and Challenges in the Framework of the EU policy

Albania's local governments are characterized by significant disparities in size and capacity. The challenge of fragmentation includes not only economic efficiency but also the administrative and technical capacities of local governments to provide services in an efficient and effective way. As international experience proves, the fragmentation of local government systems is related to the extent of financial decentralization. It is apparent that larger municipalities are able to carry out a wider scope of functions than smaller municipalities. The regional development policy is a new area of public policy in Albania. This research will focus on the examination of the system of local government in Albania, which show that the requirement of the regional level is also supported by the need for better coordination and planning in the framework of the EU policy enlargement. Albania need an integrated, coherent regional policy based on its growing concern over the widening gaps in socio-economic performance and fortunes between different parts of the country. As Albania seeks to fully integrate its economy and its markets in the global context and, in particular in the EU single market, there is an imperative to ensure that all areas of the country are capable of competing