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The organization of local government in Albania is characterized by a large number of local government units, division of territory in very small units and three government levels that often can not divide clearly the competences between them. Local government faces challenges every day that are becoming ever more complex due to increased public xpectations in terms of offered quality of services, employment opportunities, possibilities to solve faster and efficiently the emergent needs and opportunity to absorb as many funds as possible, especially funds of IPA which provide the opportunity to implement larger and long-term projects, etc..In the paper will be given information on concrete examples of inter-institutional collaboration among local government units, legal spaces and the limits of the law in this regard, legal instruments used for these collaborations, funding mechanisms and incentives, the fact that they have been successful, identification of the barriers and opportunities for the community benefit. It will also provide ideas for a new collaboration possibility such as the management of human resources. So far, inter-institutional collaboration in Albania has been focused only on the area of public services, but for the first time, the New Law of the Civilian Employee creates the possibility that this collaboration can be extended also in the field of human resources. Until February 2014, month in which the new law began its effects of civil servants in Albania, the local government does not fully benefit from the legal regulations in the field of civil service. With the entry into force of this law, now the three levels of local government are included in the field of civil service and will be able to manage human resources according to principles laid down in the law and take advantage of the civil service system as an unique system. DOI: 10.5901/mjss.2014.v5n19p296

Inter-institutional collaboration - challenge and important way in improving the management of local government units in Albania.