Albania, one of the smallest and poorest countries in Eastern Europe, has experienced a transition
marked by sharp economic swings and periods of civil strife. The early phases of decentralization
witnessed the transfer of political autonomy and limited administrative and fiscal authority, to local
governments, inadequate legislation outlining central/local responsibilities, scarce financial resources and
deficient infrastructure strained the capacity of local governments to mange urban services. In January
2000, the government promulgated a national Strategy for Decentralization and Local Autonomy which
includes lows to strengthen the autonomy of local governments and increase their capacity to manage
local infrastructure and services.
In the absence of fiscal resources to improve infrastructure in urban and rural areas, the government,
with donor assistance, initiated community-driven development strategies to provide infrastructure
services based on a cost sharing formula and to set up participatory management structures.
In Tirana sustained population growth since 1991-1999 led to rapid expansion of the urbanized area,
resulting n the proliferation of informal settlements. With an estimated population of 575.000 in 1997,
6.500 families were seeking new housing each year. Local government, even with central transfers, could
accommodate only five percent of the demand for new infrastructure.
Supported by donor assistance and international and local NGO’s the city initiated a community-based
development strategy in the informal settlement . The program brought together local government teams,
NGO’s and residents to formulate a development plan for the neighborhood define priorities for
improvements and determine equitable cost-sharing formulas to finance infrastructure.
This partnership led to the upgrading of roads and electrical networks, the construction of community
buildings and schools, improved public spaces and programs for youth. Clarifying the legal status of
residential land and formalizing an urban plan resulted in the sufficient leveraging of community and
house4hold resources to provide infrastructure and build new housing.
In 1990-2005 the experience was expanded to a citywide effort and was subsequently funded by the
Word Bank. As the local government teams and NGO’s gain experience and residents begin to trust the
local government, Tirana Land management Program is scaling up and expanding to other formal and
informal residential zones in Tirana.