Photo Credit: USAID/Albania   USAID democracy and rule of law activities help to strengthen democratic institutions, promote civil society, reduce corruption, and create a more favorable environment for inclusive economic growth.

Rule of Law and Governance

CURRENT SITUATION
Albania is confronting challenges with the consolidation of its democratic institutions, specifically with its capacity and effectiveness to tackle issues of governance, corruption, and the rule of law.  Albania’s judicial sector is relatively weak, under-funded, and registers high in corruption surveys which jeopardizes Albania’s aspirations for EU membership.  While local governments now have greater fiscal autonomy and have made efforts to improve local service delivery, challenges remain with regards to jobs, infrastructure, and governance at the local level.  At the same time, while administration of the health care system is a major governance concern, given the state of the sector and the extent to which systemic weaknesses impact citizens every day. Albanian democracy cannot move forward until governance and the rule of law is substantially strengthened.

PROGRAM OVERVIEW
USAID programs seek to strengthen key institutions, promote civil society, and reduce corruption, through improving the enabling environment for policy reform and planning, enhancing citizen oversight and transparency, and upgrading performance and management capabilities in the judiciary, in local governments, and in the health sector in compliance with EU standards.

PROGRAM FOCUS

• Improve the enabling environment for policy reform and planning in local governance, justice, and health by facilitating dialogue and supporting participatory policy reform processes.
• Enhance citizen oversight and transparency through, for example, supporting monitoring and watchdog types of activities implemented by civil society and media, as well as support systems and mechanisms that allow for greater transparency, such as land use planning and electronic systems in courts.
• Upgrade performance and key competencies within key counterpart institutions (GOA and NGOs) to better assure transparency and improved management of limited resources, thereby increasing the quality and level of services provided to all citizens.

SUCCESSES

• Following a coordinated policy dialogue sponsored by USAID, the GOA established new fiscal rules giving local governments more discretion, as a result local capital expenditures rose as a share of total spending.  Local tax authority expanded and cities now have the authority to collect small business taxes.  Local taxes and fees consequently grew to about 25 percent of total local revenues.
• USAID has helped participating municipalities develop bankable projects and put in place systems and procedures that facilitate borrowing and improve creditworthiness.  With the assistance of USAID, in 2010, four municipal loans were finalized to fund significant infrastructure investments.
• In May 2011, USAID signed a Memorandum of Understanding with Albania’s bar association to establish the country’s first continuing legal education program.  The program began to offer courses in September in two pilot areas of Durres and Vlora.