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The Bumpy Road of the Externally Transferred Austerity Agenda in Albania and Its Fragmentary Effects on Local Public Services

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Local Public Services in Times of Austerity across Mediterranean Europe

Part of the book series: Governance and Public Management ((GPM))

Abstract

This chapter attempts to scrutinize the adaption dynamics of the austerity agenda for the Albanian case and its effects upon the provision of local public services. Reformations intended to tackle retrenchments and cutbacks, for example the Territorial Administrative Reform in 2014, have been levered via external conditionality from the European Union and other supernatural agencies, such as the International Monetary Fund, World Bank, and The United States Agency for International Development.

At this early stage, however, the impact of the austerity measures can still be considered as “work in progress.” The transfer of austerity measures from the central to the local government in general and local public services in particular was more eminent among the left-wing coalition government with the introduction of the above “not agreed by political consensus” reform but sustained by the unusual parliamentary majority that granted them the 2013 win. It also reflected, for the first time, an acceptance of the electoral costs that such wide-ranging overhauls are associated with.

Central government election years have proved to be the actual hazards with respect to public finances patterns at the national level. Interestingly enough, the underlying political agenda between governing coalitions and the opposition diverged in most cases from the real scope of the austerity agenda and the political discourse slowed down rather than promoted such changes.

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Notes

  1. 1.

    The author investigates these post-communist countries: In Europe: Bulgaria and Romania, Czech Republic, Hungary, Poland, Slovak Republic, and Slovenia; and in the Former Soviet Union: Latvia, Lithuania, and Estonia.

  2. 2.

    We used 2009 and 2013 as points of reference due to the fact that central government elections were held in these years. June 2017 is the date for the upcoming elections but data on the first and second quarters are not yet available. The major changes in central and local public finances have happened in government election years.

  3. 3.

    In other words, starting from 2017, the funds for such an increase reach 1 milliard ALL, in 2018: 1.5 milliard ALL, and for 2019: 2 milliard ALL.

  4. 4.

    In more detail: (a) the construction, rehabilitation, and maintenance of city streets, pavements, and public squares; (b) water supply; (c) sewage system; (d) waste management; (e) urban public transportation, (f) public lighting; (g) parks, gardens, and public places; (h) service decor; (i) cemeteries and burial service.

  5. 5.

    In more detail: (a) preparation of programmes; (b) regulation and functioning of public markets and trade network; (c) small business development; (d) veterinary services; (e) protection of local forest, pastures, and natural resources.

  6. 6.

    In more detail: (a) preservation and promotion of local historical and cultural assets and management of relevant institutions (b) organization of recreational activities and management of relevant institutions; (c) administration of social services, such as asylums, orphanages, day care, and homes for the elderly.

  7. 7.

    In more detail: (a) maintaining public order to prevent administrative violations and enforce the implementation of municipality acts; (b) civil protection.

  8. 8.

    The shared functions include: (a) maintenance and operation of pre-university education facilities located in the jurisdiction; (b) primary health service system and the protection of public health; (c) social care, reducing poverty by administering the economic assistance funds and ensuring the functioning of the relevant institutions; (d) public order and civil protection; (e) environmental protection.

  9. 9.

    LGUs receive a share of the motor vehicle tax.

  10. 10.

    At the second level of government, Albania is divided into 12 regions (Qarqe): Berat, Diber, Durres, Elbasan, Fier, Gjirokaster, Korce, Kukes, Lezhe, Shkoder, Tirana, and Vlore.

  11. 11.

    Mr. Lulzim BASHA (Mayor of Tirana until June 2015, Democratic Party) raised this issue in a letter addressed to Congress’ President Frecon on 27 October 2015. The Democratic Party also published a document titled “Albania: Local Government under attack”, in which it criticizes the “gerrymandering and malapportionment of mandates in the new territorial division.”

  12. 12.

    A local governments association that represent the interest of municipalities vis-à-vis the central government.

  13. 13.

    Exchange rate 1 euro = 132 ALL.

  14. 14.

    As a percentage of the central government tax and customs revenue.

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Dizdari, V., Troshani, A., Drishti, E. (2019). The Bumpy Road of the Externally Transferred Austerity Agenda in Albania and Its Fragmentary Effects on Local Public Services. In: Lippi, A., Tsekos, T. (eds) Local Public Services in Times of Austerity across Mediterranean Europe. Governance and Public Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-76225-8_9

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