Albania is a country in the Southeastern of Europe that has gone through many obstacles since its independence (1912) until the fall of communism regime or "the dictatorship of the proletariat" in 1991. After the fall of communism regime and the change of economy from a centralized one to an open economy, Albania is structuring its legal framework, institutions and agencies, policies, etc., in order to be a member of European Union. Due to its undertaken reforms and required ones from European

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... nion, Albania is in a crossroad regarding the policies and institutional bodies of regional development. One of the latest reforms recently presented and approved in the Albanian Parliament is the new Territorial Reform, which has defined a new organization of the local government. Such reform has not yet been accompanied with a legal revision of respective existing laws. In this context, the lack of a legal framework which would define the roles and responsibilities of the local and government structures, makes things more difficult. Even though there is a financial instrument in place such as Regional Development Fund to eliminate disparities between regions, it is often object of mutual debate of the government and opposition because of the way of funding the projects. This paper tries to review the role of central and local/regional government in Albania with regards to regional development. Firstly, I will present the context of legal and institutional framework of the local and central government. Afterwards, I will try to explain the policy and financial framework of the regional development in Albania. In conclusion, Albania has to define by law the role and responsibilities of its bodies in local and regional levels. The new strategy on regional development should be more integrated with other sector and crosscutting strategies. Also development of capacity building of local and central government in the area of regional development is a key issue, follow the European integration process.