Author Dr. Armea Xhaho, Local Governance Expert
In the context of decentralization and strengthening of local autonomy as part of the main institutional reforms in Albania, the ability of municipalities to plan and provide quality services remains an important element of local governance. The legal framework provides for the measurement and reporting of performance in local self-government units, as part of transparency and accountability mechanisms. However, the formal establishment of administrative structures is not enough without functional and sustainable systems, which should be understandable and accessible also to civil society and the media.
In this context, the "Strong Municipalities" (BtF) project, funded by the Swiss Agency for Development and Cooperation and the Government of Sweden and implemented by Helvetas, has supported the country's municipalities since 2019 in building and consolidating a structured system for measuring local performance.
The Performance Measurement and Reporting System is a national and local mechanism for collecting, processing and analyzing data on provision of services by municipalities. Performance indicators constitute the core of the system, as through them the objectives of policies and services are translated into measurable and comparable results. Municipal performance reports materialize this process, synthesizing data and analysis into a document that serves as a basis for information, decision-making and accountability.
The evolution of performance reports has moved from a financial-focused approach to a new results- and service-oriented format. This process culminated in the drafting of the First National Performance Report for the Local Level in 2024, creating the basis for inter-municipal comparability and transparency. The Municipal Performance Reports provide a clear and structured overview of the performance of municipalities in 11 main assessment areas for the years 2023-2024: pre-university education, management of irrigation and drainage infrastructure, forest and pasture management, waste management, fire protection, social protection, human resources, transparency, gender equality, EU integration, financial management.
Through standardized and comparable indicators, municipalities can accurately identify achievements and shortcomings in the provision of public services, optimize the use of limited resources, and support data-based decision-making. Finally, performance is taking on an increasingly important role, as instruments such as Performance-Based Grants create incentives to link the quality of results to concrete financial benefits for municipalities.
Performance reporting helps link strategic planning, budgeting and results evaluation in an integrated public management cycle, in line with practices used in European Union countries.
Measuring and publishing the performance of municipalities is not simply a legal obligation, but a strategic instrument for improving local governance. In the Albanian reality, where citizens' trust in local public institutions is often shaky, measuring and publishing performance plays an important role in building a culture of transparency and accountability. In the spirit of transparency required by Law no. 119/2014 "On the Right to Information", as amended, measuring the performance of public institutions is reflected through the publication of information on the services provided and quality standards, giving citizens a clear overview of the level of service they receive.
The role of civil society and the media
The involvement of civil society, media and academic institutions is considered an important element for the functioning of the performance system. Monitoring at the local level gains more meaning when the results are analyzed and communicated in a way that is understandable to the public. In this context, the project partner organizations, the Institute for Science, Education and Development Policy (ISHEP) and the organization LIBURNETIK, have provided technical assistance to strengthen the capacities of municipalities and civil society in the field of local performance management.
As part of this approach, regional trainings were organized with the participation of 35 representatives of the media and civil society organizations, focused on the municipal performance measurement system and the use of the Local Performance Report as an instrument for public monitoring and analysis.
These activities served as an information platform for the presentation of the Local Performance Measurement and Reporting System and for the discussion of the legal, institutional and practical framework of this process. Participants were introduced to the connection between performance measurement, the use of data in decision-making and the fulfillment of requirements related to the European integration process and Albania's international commitments.
Domestic performance and European integration
In the Albanian context, the need to establish a functional and sustainable system for measuring the performance of municipalities is not only an internal requirement for improving local governance, but a necessity directly related to the European integration process and the country's international commitments. Institutionalizing performance measurement at the local level is an essential condition for meeting international standards of good governance. According to the European Union's practices for managing funds, measuring the performance of institutions and projects is directly reflected in meeting EU assessment standards, where the quality of planning, preparation of the project portfolio and capacity for implementation are closely related to the provision and effective use of European funds, especially at the local level.
Municipalities that have functional structures for performance measurement and reporting are more credible to international partners, better able to absorb performance-based funds and more competitive in applications for IPA funds and other EU programmes. Further consolidation of the Performance Measurement System in municipalities represents an essential step towards a more open, accountable and results-oriented local government. In this process, civil society and the media play an important role in analysing and communicating data, contributing to strengthening accountability and fostering an informed public debate on governance and public services at the local level.
