DEVELOPMENT CHALLENGES
The former Yugoslav Republic of Macedonia (FYROM) obtained its independence from the former Yugoslavia in 1991 and, since then, has made significant process in its transition to democracy and a functional market economy. During the post-independence period, the country maintained relatively high economic stability, characterized by slow and steady growth but accompanied by several severe shocks. GDP grew by 3% on average per year between 1996 and 2008. A recent graduate from “lower-middle” to “upper-middle” income status, FYROM had a GNI per capita of US$4,520 in 2010. The country ranked 78th of 187 countries on the Human Development Index (HDI), which was “highly” valued at 0.728. However, the global financial crisis hit the country in 2009, which experienced an economic contraction of 0.9%, and recovery in 2010 was modest. The country also faces a number of development challenges.
- Poverty and inequality
- High unemployment and labour migration
- Skills gap
- Weak governance and institutional capacity
KEY TRADE ISSUES
- Weak competitiveness, low productive capacity and trade deficit
- Market concentration
- Underdeveloped transport infrastructure
- Continued need to improve the business environment
GOVERNMENT PRIORITIES
FYROM’s top strategic priority is to join the EU, and the country was granted candidate status in December 2005. The Government believes that EU membership is the most certain path to achieving accelerated human development, as the EU accession agenda also acts to strengthen social unity and enjoys wide support from the population.
On the road to the EU, the National Development Plan 2008-2013 outlines the Government’s EU-compatible national development priorities. They are to:
- Build a more socially inclusive society by protecting and empowering the marginalized and building good inter-ethnic relations based on the principles of tolerance and respect;
- Improve through decentralization the overall efficiency of the public sector and increase the quality of public services to better the life of all citizens, while also strengthening democratic processes, national solidarity and cohesion in the country; and
- Strengthen the national capacities for integrated environmental management and enhance the administrative capacities at the central and local levels for the enforcement and fulfilment of obligations of regional and global conventions.
More detailed information on The former Yugoslav Republic of Macedonia can be found here.