The subject of the study in this paper is the process of decentralization in the Republic of Kosovo and the obstacles faced.The Republic of Kosovo is one of the world's newest states, so it is natural to face a host of complex problems with Local Government in general, while special attention should be paid to the process of decentralization. The Decentralization process should be well-analyzed by comparing with notions such as: Local Governance and its Basic Characteristics, Democracy, Centralization, Deconcentration, etc. This process implies the transfer of competencies, from central government organs to a certain degree of local government organs. Given the fact that local government is involved, the Republic of Kosovo as a New State should, through a proper strategy, make decentralization (transfer of competencies) from central government organs to local government organs, especially in the areas covered by the local governance. The process of decentralization in the Republic of Kosovo faces a lot of difficulties, such as the lack of a strategy for the implementation of this process, the lack of financial means, the lack of administrative staff, the lack of modern information technology tools, lack of a proper political situation, etc. .
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