A Synoptic Policy Efficiency Analysis On Informal Areas In Albania: Comparing Two Case Studies In Durrës

Economical resources, revenues from legalization, are centralized to high administrative levels and then are redistributed to each single informal areas to finance infrastructure investments. The sum of revenues reversed is differing from area to area, thus it is not equal for each informal area. (1) Firstly because revenues reversibility to cover infrastructure costs are defined by law in an arbitrary way. Respectively only 20% of the revenues from the legalization fee goes to urbanization and infrastructure. (2) Secondly, each informal area has different land size occupied, number of settlements and infrastructure dimensions. These three measurement indicators, (land, settlement, and infrastructure) also determine the core revenues and costs for the urban agenda. Thanks to a Synoptic Analysis it is possible to measure both reasons, (1) and (2), in one single indicator, called F.I.S.I.A (Final Investment for a Single Informal Area). While the objective of the Urban Agenda is to fulfill the second objective, namely to deliver infrastructure, the research aims to answer whether it is possible to determine different percentages of revenues reversibility in other to fulfill the objectives of urbanization and infrastructure. The results show that urbanization, put in infrastructure, has a negative value. It means that even if we apply revenue reversibility of 20%, as defined by law, the urbanization process will never occur without external resources. In order to have a fair distribution of the investments on urbanization, the research proposes to apply different revenue reversibility percentage for different informal areas.