Local Development in the Era of Europeanization and Cohesion: Challenges and Opportunities for Albania and the Region
By Luiza Hoxhaj
1. Introduction
Sustainable local development has become a strategic dimension in the debate on the future of Europe and the Western Balkans region. Facing global challenges such as climate change, migration, demographic transition, and the need for a just digital transformation, it is essential to reconceptualize development at the local level. In this context, the European Union’s Cohesion Policy, along with its instruments for non-member countries, presents a significant opportunity to empower local governance and build a more inclusive and equitable development model.
2. The Role of EU Cohesion Policy
Cohesion Policy is the EU’s main mechanism for reducing territorial disparities and promoting economic and social development across all regions. It is supported by three main funds: the European Regional Development Fund (ERDF), the European Social Fund Plus (ESF+), and the Cohesion Fund. These funds aim to support innovation, green transition, social inclusion, and capacity building at the local level. For Western Balkan countries, which are not yet EU members, the implementation of cohesion-like policies takes place through the Instrument for Pre-accession Assistance (IPA III).
3. Multi-level Governance and Local Development
Multi-level governance is an approach involving collaboration among various institutional actors at different levels (central, regional, local, European). This approach is particularly important in building strategies for sustainable local development, as it gives an active role to communities and local authorities in decision-making. In Albania, although the legal framework for decentralization exists, the technical and financial capacities of municipalities remain limited, hindering the effective implementation of development policies.
4. Key EU Instruments for the Western Balkans
IPA III (2021–2027)
IPA III is the EU’s main financial instrument for Western Balkan countries, including Albania. It focuses on reforms in the rule of law, public administration, economic development and competitiveness, territorial development, and green and digital transition. Local development is an integral part of this instrument through the Integrated Territorial Development (ITD) approach.
Green Agenda for the Western Balkans
This political document aligns the region with the European Green Deal, setting objectives for decarbonization, clean energy, nature protection, waste management, and sustainable rural development. Implementing this agenda requires deep involvement of local governments and actors in the design and implementation of concrete projects.
NDICI – Global Europe
The EU’s new instrument for International Cooperation and Sustainable Development (NDICI – Global Europe) includes a component for neighborhood and enlargement countries. It supports partnerships for sustainable development and just transition, including local development and the creation of green and blue economies.
5. National and Regional Strategies
Albania has adopted several national strategies aimed at aligning with European priorities, including the National Strategy for Development and Integration, the National Energy and Climate Plan, and the Strategy for Agriculture and Rural Development. However, the link between these strategies and the local level often remains weak. The lack of integrated development plans at the municipal level and limited long-term planning capacities hinder effective implementation.
6. The Case of Albania: Challenges and Opportunities
Albania faces significant challenges regarding real decentralization and building local capacities. Municipalities often lack sufficient financial and human resources to design and implement development projects. However, there are great opportunities for growth in sectors such as sustainable agriculture, agrotourism, clean energy, and waste management. The EU’s growing interest in the region and Albania’s involvement in green and digital European initiatives create a favorable environment for sustainable local development.
7. Comparative Experiences from the Western Balkans
Slovenia
Slovenia is a positive example of transitioning from an aspiring country to an EU member effectively using cohesion funds. It has successfully implemented the LEADER approach for rural development and has deep community engagement in decision-making.
Montenegro
Montenegro has taken steps to build integrated coastal zone management structures, including components for biodiversity conservation and sustainable tourism development.
North Macedonia
North Macedonia has created regional structures for planning and managing projects aligned with the EU’s functional regional model, enabling more efficient use of IPA funds.
8. Conclusion and Recommendations
Sustainable local development requires more than financial investment – it requires a paradigm shift in how development is conceived. Albania must strengthen fiscal decentralization, invest in capacity building for municipalities, and improve inter-institutional cooperation. Cohesion policy and instruments such as IPA III, the Green Agenda, and NDICI offer a robust framework for this transformation, but their success depends on our ability to build good governance, broad participation, and a clear territorial vision.
References
- European Commission (2021). Cohesion Policy 2021-2027.
- DG REGIO. "Multi-level Governance and Partnership."
- European Commission. Instrument for Pre-accession Assistance (IPA III) Programming Framework.
- European Green Deal and the Green Agenda for the Western Balkans (2020).
- European Commission (2021). NDICI – Global Europe: Regulation (EU) 2021/947.
- Open Regional Fund – Modernisation of Municipal Services, GIZ.
- Ministry for Europe and Foreign Affairs, Albania. National Strategy for Development and Integration.
- Regional Cooperation Council (2022). Balkan Barometer: Public Opinion Survey.