What are the risks associated with the new division of Albania? - From financial costs, to the quality of services and loss of trust
Territorial and administrative reforms are processes with far-reaching institutional, financial and social impact, which are inevitably associated with uncertainty and implementation risks.
According to the majority report, the new territorial division of the country could face risks of various forms.
Specifically, the most important risk is related to the institutional capacity to manage a highly complex reform. The reform affects a large number of institutions and requires continuous coordination between the central administration, regions, municipalities and other public institutions. In the absence of effective coordination, there is a risk of overlapping responsibilities, delays in decision-making and different interpretations of the legal framework.
The second risk is related to the financial one. The implementation process may be accompanied by a temporary increase in public spending, an underestimation of the real costs of the transition, or delays in securing financial resources.
There is also a risk that municipalities with more limited financial capacities will encounter difficulties in meeting the costs of organizational transformation, digital investments, and human capacity development.
To avoid these problems, it is recommended to plan for the transition costs over several years; establish a National Transition Fund; periodically monitor costs; and conduct a financial audit of the implementation process. At the same time, it is recommended that any transfer of competences be accompanied by a corresponding transfer of financial resources, in accordance with the principle “competence follows financing”.
One of the most common risks in reforms of this type is related to organizational resistance to change. Public administration may experience uncertainty regarding new structures, responsibilities, personnel mobility and work procedures. If this process is not managed professionally, it can negatively affect staff motivation and the quality of public services.
The draft also cites that the reform may face political risks and in the absence of a broad institutional consensus, there is a risk that implementation will slow down or undergo constant changes due to political cycles.
On the other hand, it is emphasized that if the process is not accompanied by clear information and continuous communication, there is a risk of creating wrong perceptions, local resistance and decreased trust in public institutions.
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