IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Albanian approach to municipal borrowing: From centralized control to market discipline

Listed author(s):
  • Denita Cepiku
  • Riccardo Mussari
Registered author(s):

    Local governments (LGs) in transitional countries face pressing infrastructure needs, which, given the severe shortcomings of traditional funding, make a strong case for debt financing. This article explores the case study of Albania, using document analysis and interviews with mayors, civil servants, citizens and investors. We go beyond an analysis of technical aspects (macroeconomic conditions and legal constraints on borrowing) to include ‘soft’ elements (political and managerial issues, attitudes of key actors), with the aim of highlighting the approach adopted under current policies and the approach that should be adopted. Favorable macroeconomic conditions and the completeness of the legal framework have motivated policy‐makers to choose the market model. Their aim is to develop the financial market rapidly; however, the development of sound management systems at the local level is largely ignored. We argue that the role of managerial capacities, public accountability and professional mechanisms is not adequately taken into account. Future policies need to make the best use of some early experiences of public participation and build upon the extensive training in accounting and auditing issues provided to local civil servants in order to exploit other models of municipal borrowing control. Copyright © 2010 John Wiley & Sons, Ltd.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Blackwell Publishing in its journal Public Administration & Development.

    Volume (Year): 30 (2010)
    Issue (Month): 5 (December)
    Pages: 313-327

    in new window

    Handle: RePEc:wly:padxxx:v:30:y:2010:i:5:p:313-327
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wly:padxxx:v:30:y:2010:i:5:p:313-327. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)

    or (Christopher F. Baum)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.