Albania provides a small amount ofsocial assistance to nearly 20 percent of its populationthrough a system that allows some community discretion indetermining distribution. This study investigates how wellthis social assistance program is targeted to the poor.Relative to other safety net programs in low-incomecountries, social assistance in Albania is fairly welltargeted. Nevertheless, the system is hampered by theabsence of a clear, objective criterion to determine thesize of the grants from the central government to communesas well as limited information that could be used toimplement this criterion. Substantial gains in targetingcould be achieved if the central government better allocatedtransfers to local governments, even holding local targetingat base levels.