This article describes the problems associated with the establishment of de
centralised local government in postcommunist Albania. After presenting som
e relevant historical and cultural information about Albania, communist and
postcommunist government structures are described and compared. This is fo
llowed by a description of the status, boundaries and powers of the various
tiers of local administration and their relation to central government. An
alysis of this information draws attention to similarities in structure and
organisational culture between the communist periods and the present. It a
ttributes the difficulties in rebuilding state structures to the unfamiliar
nature of liberal democratic institutions and the lack of resources availa
ble to the new state. The development of local government was constrained b
y central government policies which resulted in tangled lines of accountabi
lity, reductions in finding, restriction of ability to raise taxes and by l
imiting sectors of responsibility. Despite an increase in democratically el
ected institutions, central government sought to retain control and inhibit
the devolution of power Poor transparency, lack of accountability and rest
ricted access to information contributed to local government being held in
low regard by the general public. The article concludes that it is unproduc
tive to focus assistance on economic stabilisation without commensurate sup
port for the development of democratic institutions.