Key issues of corporate governance and public finance sector

Governance is essential in private and public sectors to maintain the organizational objectives, mission, vision, and organizational systems and structures.Public Entities Corporate Governance is a concept gaining more and more fields in specialized literature and practice.The public bodies' Corporate Governance as a leadership and control method involves a set of clear rules and principles (integrity, honesty/sincerity, transparency, and responsibility), clear risk management and control mechanisms, elements needed to achieve the purpose of public entities, which is satisfying public needs.Over the past three decades, Public Finance in Albania has significantly improved.At the same time, corporate governance is a global concern and has gained tremendous importance in recent years in the globalization of economies and financial markets.At its heart, corporate governance is concerned with aligning the interests and behavior of managers with the interests of the owners of the firm.A state-owned firm faces organizational costs associated with two types of internal conflict of interest, namely, political costs associated with government (owner) incentive to intervene in the firm, and agency costs associated with a manager's incentive to expropriate wealth from the firm (Fan, 2012).The public bodies' Corporate Governance as a leadership and control method involves a set of clear rules and principles (integrity, honesty/sincerity, transparency, and responsibility), clear risk management and control mechanisms, elements needed to achieve the purpose of public entities, which is satisfying public needs.This is a review article.The purpose of the article is to achieve an academic analysis of the development process of the Corporate Governance concept in public entities and how it is an efficient governance form.The results show that better governance also reduces the risk of macroeconomic instability.The public sector and private sector are two different entities with different responsibilities.About corporate governance, despite this difference, there are corporate governance principles applicable for both entities: accountability, transparency, etc. Increasing the efficiency of the public sector is now a priority, as many countries have to reduce public expenditure to restore their fiscal balances.Economic growth was generally driven by private consumption and in some countries by the recovery of investments and unemployment rates in the region remained high compared to the EU.