The Role of Local Leaders in Regional Development Funding: Evidence from an Elite Survey

Many postsocialist countries are run by an elite with links to the socialist legacy and often share similar challenges and issues. We investigate formal and informal factors shaping the role of mayors in accessing regional development funds in Albania, a postsocialist country. With data from one of the largest elite (mayors) survey, we analyze both channels of influence of the mayors: the number of applications and the success rate. We find that mayors bring their communities more funds using formal leadership qualities that intensify the number of submissions. On the other hand, informal leadership remains important in explaining the success rate, as by using networking channels leaders enhance the probability to get financed. Political power is also decisive in the process.