The worst crisis since the great depression
1929
During the last two years the world finance
markets where in constant trouble, which
ended up in a world wide collapse of the
finance sector. The crisis derived its origin
from the lowering of the US prime rate to 1.0
% in 2003. This lowering was intended to
stimulate the American economy, but it also
encouraged citizens with low incomes to take
out loans. Many of those credits where used
to buy houses. The economic cool down 2005
in the USA and the increase of the prime rate
to 5,25% in June 2006 caused a chain
reaction. Many households weren’t able to
pay their loans anymore and tried to sell their
houses. This ruined the prices in the housing
market. As a result many of those Subprimecredits
suffered from a serious depreciation.
In the end the housing market collapsed and
lead to a liquidity crisis among the finance
sector. In 2008 this crisis took effect all over
the world because the finance market was
extensively interlocked. The aftermath of this
crisis will expand successively to other
economic sectors. What does this mean for
national economies? Which challenges will
occur for governments to provide an
economic recession and do they have the
resources to do that? Analysing the effects
on a small country like Macedonia, we will
see in which ways the national economy
could suffer from the credit crunch and, if
possible, the alleviation of its impact.
Quick facts:
GDP growth (first half 2008):
about 6%
Inflation (first half 2008):
7,1%
(Source: Source: Ministry of
Economy of Republic of
Macedonia)
Macedonia’s Challenges
The main impact of this world wide crisis on Macedonia will not primarily occur in
the bank sector but in the export economy. More than half of Macedonia’s exports
are produced in metal plants and sold to Western Europe. With a decreasing demand
of metals, like in the western automobile industry, the metal manufacturing sector
will experience a serious decline in prices. Also the textile industry as the second
biggest in Macedonia will be afflicted with lower demand on the world market. This
contributes to the already very high trade deficit of more than 2 billion dollars this
year. Furthermore this development will entail a cutback in work force.
The global recession will also reduce the foreign
investments in Macedonia, which will have a
serious backlash on the stock exchange. Without
further foreign investment the structural
problems of the country’s economy will persist
and Macedonia will also slide in economic
recession.
Concerning the savings of Macedonian citizens in
bank accounts, there were no signs of a threat to
those savings like after the break up of
Yugoslavia.
A Possible Response
While facing a crisis of a world wide scale there are still some things that can be done
on a national level. On the part of the government many industrial leaders demand
official help, like tax cutbacks. In this way tax payers will keep their jobs, the
industry argues. During the SEE Summit in Ohrid at the 20th of November steps in
that direction were already be announced. With a high unemployment rate of about
30 % Macedonia can not afford to jeopardise employment among its export sector.
On part of the Macedonians there is little to do then try to keep the money in
circulation. Putting the money under a pillow to save it will be harmful on both
counts banking and
retailing.
Monday, December 1, 2008
Monday, November 3, 2008
Brief: Macedonia and the Western Balkans Awaiting the 2008 EU Progress Reports: Back to Basics
Resume:
"...Facing the 5th of November, when the European Commission is to publish the 2008 progress reports, Macedonia and the other countries in the region are considering the options for speeding up the process of accession to the European Union. However, the chances for receiving “positive reports” are slim for most of the countries from the Western Balkans. When it comes to Macedonia, the irregularities at the 2008 early parliamentary elections as well as the difficulties regarding political reforms, such as lack of political dialogue between the government and opposition, decrease the likeliness that Macedonia will start accession talks in the years to come unless there is a consolidated reform process that would be tested in the upcoming elections of March 2009."
You can find the whole text of the brief "Macedonia and the Western Balkans Awaiting the 2008 EU Progress Reports: Back to Basics" at the following link:
http://ww.analyticamk.org/files/BriefNo1.pdf
"...Facing the 5th of November, when the European Commission is to publish the 2008 progress reports, Macedonia and the other countries in the region are considering the options for speeding up the process of accession to the European Union. However, the chances for receiving “positive reports” are slim for most of the countries from the Western Balkans. When it comes to Macedonia, the irregularities at the 2008 early parliamentary elections as well as the difficulties regarding political reforms, such as lack of political dialogue between the government and opposition, decrease the likeliness that Macedonia will start accession talks in the years to come unless there is a consolidated reform process that would be tested in the upcoming elections of March 2009."
You can find the whole text of the brief "Macedonia and the Western Balkans Awaiting the 2008 EU Progress Reports: Back to Basics" at the following link:
http://ww.analyticamk.org/files/BriefNo1.pdf
Monday, October 27, 2008
Macedonian’s GHG reduction potential – Chances for less polluted air
EUEnlarge Newsletter
October 2008 issue
Protecting the environment is fundamental for the quality of life of current and future generations. One of the greatest concerns of the European Union (EU) are combating climate change, protecting biodiversity, reducing the impact of pollution on health and better use of natural resources. Climate change has emerged as one of the most important issues facing not only the EU but the whole humanity in the 21st century. The main cause of climate change is increased concentrations of greenhouse gas (GHG) emissions, mostly due to human activities.
Macedonia’s economy is characterized by comparatively high level of energy consumption and GHG emissions per unit of GDP are one of the highest among Central and Eastern European (CEE) countries. (Source: World Resources Institute 2006). According to the baseline scenario, in comparison to the GHG emissions in 1990 (15.511, 80 kt CO2-eq), the projected emissions will rise by 17 % in 2012 (18.136, 00 kt CO2-eq), and by 28 % in 2020 (19.851, 00 kt CO2-eq). (Source: Answers to the European Commission’s Questionnaire; Chapter 22 Environment). The question arises, how can Macedonia achieve GHG reductions?
Quick facts
GHG emissions by gas in the Republic of Macedonia in 2007 (Source: Yearly Report about the Quality the Environment, 2007; Ministry of Environment and Physical Planning of the Republic of Macedonia)
CO 180 kt
SO2 140, 8 kt
NOx 46, 03 kt
TSP 30,823 kt
Current situation
The values for 2012 emissions are based on the emission decrease study prepared as part of the First National Communication of the Republic of Macedonia under the United Nations Framework Convention on Climate Change. According to the study (which was made on the following sectors: electricity production, heat production, transport, industry, waste, agriculture and forest), the energy sector of Macedonia contributes with approximately 70% of the total country’s GHG emissions, thus being the sector with largest share in GHG emissions.
Challenging conditions
The recommendations by experts are as follows:
• Rehabilitation of large power plants;
• Fuel Switching to Natural Gas;
• Industrial Efficiency Improvements;
• Hydro Power
• Geothermal Energy.
Relatively higher abatement potential in Macedonia compared to other CEE countries also steams from the fact that Macedonia’s energy sector is heavily reliant on coal and lignite-based thermal power. Thus, any project measures replacing grid-based electricity in Macedonia are likely to lead to high emission reductions and therefore would be more attractive from Clean Development Mechanisms (CDM).
One of the primary goal of CDM is to assist Annex I countries in reaching their emissions reduction targets. This goal allows developed countries to achieve part of their GHG reduction obligations through projects in developing countries or countries in transition that reduce GHG emissions through promotion of renewable energy, energy efficiency, improvement of waste management, reforestation/a forestation and other GHG mitigation/sequestration activities. (Source: National Strategy for Clean Development Mechanism for the first commitment period of the Kyoto Protocol 2008-2012).
The Department of Energy and Mineral Resources from the Ministry of Economy, is in charge of national energy sector policies, including energy efficiency, power sector reform, renewable energy development and is therefore well-positioned to facilitate identification of CDM projects in Macedonia’s energy sector.
Non-governmental organizations influence government actions by providing information and advice, making policy recommendation and sometimes by direct lobbying. Only with a synchronized action of all governmental, civil and economical subjects in reducing the emissions of GHG will lead to reduced global warming and a cleaner environment.
October 2008 issue
Protecting the environment is fundamental for the quality of life of current and future generations. One of the greatest concerns of the European Union (EU) are combating climate change, protecting biodiversity, reducing the impact of pollution on health and better use of natural resources. Climate change has emerged as one of the most important issues facing not only the EU but the whole humanity in the 21st century. The main cause of climate change is increased concentrations of greenhouse gas (GHG) emissions, mostly due to human activities.
Macedonia’s economy is characterized by comparatively high level of energy consumption and GHG emissions per unit of GDP are one of the highest among Central and Eastern European (CEE) countries. (Source: World Resources Institute 2006). According to the baseline scenario, in comparison to the GHG emissions in 1990 (15.511, 80 kt CO2-eq), the projected emissions will rise by 17 % in 2012 (18.136, 00 kt CO2-eq), and by 28 % in 2020 (19.851, 00 kt CO2-eq). (Source: Answers to the European Commission’s Questionnaire; Chapter 22 Environment). The question arises, how can Macedonia achieve GHG reductions?
Quick facts
GHG emissions by gas in the Republic of Macedonia in 2007 (Source: Yearly Report about the Quality the Environment, 2007; Ministry of Environment and Physical Planning of the Republic of Macedonia)
CO 180 kt
SO2 140, 8 kt
NOx 46, 03 kt
TSP 30,823 kt
Current situation
The values for 2012 emissions are based on the emission decrease study prepared as part of the First National Communication of the Republic of Macedonia under the United Nations Framework Convention on Climate Change. According to the study (which was made on the following sectors: electricity production, heat production, transport, industry, waste, agriculture and forest), the energy sector of Macedonia contributes with approximately 70% of the total country’s GHG emissions, thus being the sector with largest share in GHG emissions.
Challenging conditions
The recommendations by experts are as follows:
• Rehabilitation of large power plants;
• Fuel Switching to Natural Gas;
• Industrial Efficiency Improvements;
• Hydro Power
• Geothermal Energy.
Relatively higher abatement potential in Macedonia compared to other CEE countries also steams from the fact that Macedonia’s energy sector is heavily reliant on coal and lignite-based thermal power. Thus, any project measures replacing grid-based electricity in Macedonia are likely to lead to high emission reductions and therefore would be more attractive from Clean Development Mechanisms (CDM).
One of the primary goal of CDM is to assist Annex I countries in reaching their emissions reduction targets. This goal allows developed countries to achieve part of their GHG reduction obligations through projects in developing countries or countries in transition that reduce GHG emissions through promotion of renewable energy, energy efficiency, improvement of waste management, reforestation/a forestation and other GHG mitigation/sequestration activities. (Source: National Strategy for Clean Development Mechanism for the first commitment period of the Kyoto Protocol 2008-2012).
The Department of Energy and Mineral Resources from the Ministry of Economy, is in charge of national energy sector policies, including energy efficiency, power sector reform, renewable energy development and is therefore well-positioned to facilitate identification of CDM projects in Macedonia’s energy sector.
Non-governmental organizations influence government actions by providing information and advice, making policy recommendation and sometimes by direct lobbying. Only with a synchronized action of all governmental, civil and economical subjects in reducing the emissions of GHG will lead to reduced global warming and a cleaner environment.
Thursday, September 25, 2008
The One Stop Shop System in Macedonia
Enlarge EU Newsletter
September 2008 Edition
The process of introducing the One-Stop-Shop system in Macedonia was an initiative derived from the recommendations of the European Commission, regarding the obstacles in trade economy and fulfillment of the criteria and achievement of the standards set for the business environment.
The program has been supported by international donors such as: IMF, EAR, USAID, World Bank, FIAS, UNDP
Why One-Stop-Shop?
Macedonia is facing a low economic growth; it remains on the last place compared to the other countries in the region regarding the foreign direct investments. As a result of this fact, all governments that Macedonia had until now, have set the attraction of foreign investments as their priority goal, as an important stimulation for the economic progress of the country.
In order to attract foreign investments, Macedonia has introduced the One-Stop-Shop system. This system has also been introduced by many European public administrations. It has a service-offering character and serves as an interface between the citizens and the public administration.
Business reforms in Macedonia
Areas of Reform: Starting a Business, Registering Property, Getting Credit (Information), Paying Taxes, Trading Across Borders, Enforcing Contracts.
Doing Business 2009, rank: 71 (Source: Doing Business 2009, annual report comparing business regulations)
Facilities provided by the One-Stop-Shop system
Macedonia implemented the One-Stop-Shop system on January 1st, 2006. The One-Stop-Shop offers a certain number of facilities for the investors mainly resulting in reducing administrative barriers and start-up costs.
Its main objective is to reduce the number of days for setting a new business (used to be 48 days and after introducing the system, it was reduced to 5 days) and to improve the overall business climate in Macedonia. The system is designed to be simple, fast and most important - less expensive. It operates within the Central Register via 32 electronically integrated offices located throughout the country. The system offers business registration in four hours, in a single office and getting all information in one place.
Recently World Bank published the latest Doing Business report. The report mentions that Macedonia has updated the One-Stop-Shop system in order to carry out the full range of business start-up processes, to reduce both the number of procedures and the time required. The report also states that the time required to export has been reduced from 19 to 17 days and the time to import from 17 to 15 days, as a result of the rationalization of the customs fee schedule and permit structure, improved risk-based inspections, simplification of a customs procedure, and elimination of a document requirement.
Although, the One-Stop-Shop system in a certain level has influenced the business climate, having in mind the current index of the foreign direct investments its implementation advantages are yet to come!
September 2008 Edition
The process of introducing the One-Stop-Shop system in Macedonia was an initiative derived from the recommendations of the European Commission, regarding the obstacles in trade economy and fulfillment of the criteria and achievement of the standards set for the business environment.
The program has been supported by international donors such as: IMF, EAR, USAID, World Bank, FIAS, UNDP
Why One-Stop-Shop?
Macedonia is facing a low economic growth; it remains on the last place compared to the other countries in the region regarding the foreign direct investments. As a result of this fact, all governments that Macedonia had until now, have set the attraction of foreign investments as their priority goal, as an important stimulation for the economic progress of the country.
In order to attract foreign investments, Macedonia has introduced the One-Stop-Shop system. This system has also been introduced by many European public administrations. It has a service-offering character and serves as an interface between the citizens and the public administration.
Business reforms in Macedonia
Areas of Reform: Starting a Business, Registering Property, Getting Credit (Information), Paying Taxes, Trading Across Borders, Enforcing Contracts.
Doing Business 2009, rank: 71 (Source: Doing Business 2009, annual report comparing business regulations)
Facilities provided by the One-Stop-Shop system
Macedonia implemented the One-Stop-Shop system on January 1st, 2006. The One-Stop-Shop offers a certain number of facilities for the investors mainly resulting in reducing administrative barriers and start-up costs.
Its main objective is to reduce the number of days for setting a new business (used to be 48 days and after introducing the system, it was reduced to 5 days) and to improve the overall business climate in Macedonia. The system is designed to be simple, fast and most important - less expensive. It operates within the Central Register via 32 electronically integrated offices located throughout the country. The system offers business registration in four hours, in a single office and getting all information in one place.
Recently World Bank published the latest Doing Business report. The report mentions that Macedonia has updated the One-Stop-Shop system in order to carry out the full range of business start-up processes, to reduce both the number of procedures and the time required. The report also states that the time required to export has been reduced from 19 to 17 days and the time to import from 17 to 15 days, as a result of the rationalization of the customs fee schedule and permit structure, improved risk-based inspections, simplification of a customs procedure, and elimination of a document requirement.
Although, the One-Stop-Shop system in a certain level has influenced the business climate, having in mind the current index of the foreign direct investments its implementation advantages are yet to come!
Wednesday, July 30, 2008
Beyond Blogging: Macedonia: Exploring new media
Enlarge EU Newsletter
July 2008 Edition
Beyond Blogging:
Macedonia: Exploring new media
For a while now, the world is faced with “blogging fever” a new media revolution reflecting the hunger for fresh and nontraditionally served information. Following the email and webpage, the blog has become original tool for communication aspiring to maintain stronger relationship and loyalty with the consumers. By starting up numerous individual blogs, blog platforms and blog-related activities Macedonia has shyly joined the global blogosphere. But is Macedonian blogging community strong enough to handle the mainstream media impact? Will it make “blogging” not just a modern and quite cheap but also a powerful medium? And finally, can we rely on the information on blogs?
Mapping Macedonian Blogosphere
QUICK FACTS:
First Macedonian Blog launched: 2001
The most popular blog platform: Blogeraj http://blog.com.mk/
The estimated number of active Macedonian Blogs: 20 000
The estimated number of daily visitors of the most popular blogs: 100-200
Some interesting Macedonian Blogs: bukarski.blog.com.mk, femgerila.blog.com.mk,
arheo.com.mk, kvadraturanakrug.blog.com.mk, qzevski.blog.com.mk, oksimoron.blog.com.mk, antipunkt.blogspot.com, vuna.info..
As probably elsewhere in the world, the number of blog users in Macedonian blogosphere is rapidly growing. The reason could be in the fact that blog-hosting services have made it easy to create a blog or perhaps the blog itself attracts new followers. Nevertheless, some data shows that the assumed number does not necessarily fit the actual status quo since very large portion of Macedonian blogs are not active and do not publish new posts regularly. Many have just opened accounts to test the service or to comment on others’ posts. Unofficially, today they are around 20,000 blogs (both individual and corporate) feeding Macedonian blogosphere. According to a survey conducted by New Media Center, 58.8% of Macedonian internet users have their own blogs. However, the picture looks like a mosaic of a few outstanding and a huge number of less-known blogs, each contributing in particular genre starting from an ordinary diaries, travel chronicles to technical advice columns and political commentary or as the same survey shows the most of them (35.8%) read 2-3 blogs daily. Still, in the last couple of years the Macedonian blogosphere has made significant development. Macedonian blogers joined the formal Association of Blogers of Macedonia and under their mentorship the first Youth Blog Training was conducted in June this year. Last year, New Media Center organized MK Blog conference where interesting topics related to progress of the network society were discussed while this year New York University Skopje hosted the Second International Conference Glocal 2.0: Blogging: Evolution treated as Revolution which gathered international group of researchers and practitioners (bloggers) for a discussion and analysis on the emerging networked society. These are only part of the activities initiated and organized by Macedonian bloggers. Maybe most interesting fact are Macedonian blogers themselves - writers, poets who published books whose content was already published on their blogs. (Bukarski, Kostadinova;“Izdanie –Blog zapisi” etc.)
Avoiding the trap: Is it really credible source of information!?
While skeptics question the credibility of information posted due to the absence of any quality control mechanisms, the usual answers given by Macedonian blogers is that the true quality debate starts exactly after posting the opinion which is not case in traditional media where the information is simply served and hardly unbiased. Blogs are exactly about “keeping the finger on the pulse” - feeling what are the readers reactions to certain ideas, stories. This gives them a freedom to choose what to believe in. That is how, despite the above mentioned constraints, the blog appears to play a very important role in public debate sphere. Besides, internet users prefer blogs also because they keep them updated with the latest trends, they are interesting and fun and mostly because of the obvious biases.
After all, easy to start, sometimes hard to maintain, blogs remains the most dynamic, inconsistent but still very promising source of fresh, objective and challenging information and equal opportunities space. Macedonia has accepted the challenge and became part of the global blogging community, of course, putting on it its own original mark.
Sources “Short History of Macedonian Blogosphere” byF.Stojanovski.
New media Center on line Survey presented at Glocal 2.0: Blogging: Evolution treated as Revolution
July 2008 Edition
Beyond Blogging:
Macedonia: Exploring new media
For a while now, the world is faced with “blogging fever” a new media revolution reflecting the hunger for fresh and nontraditionally served information. Following the email and webpage, the blog has become original tool for communication aspiring to maintain stronger relationship and loyalty with the consumers. By starting up numerous individual blogs, blog platforms and blog-related activities Macedonia has shyly joined the global blogosphere. But is Macedonian blogging community strong enough to handle the mainstream media impact? Will it make “blogging” not just a modern and quite cheap but also a powerful medium? And finally, can we rely on the information on blogs?
Mapping Macedonian Blogosphere
QUICK FACTS:
First Macedonian Blog launched: 2001
The most popular blog platform: Blogeraj http://blog.com.mk/
The estimated number of active Macedonian Blogs: 20 000
The estimated number of daily visitors of the most popular blogs: 100-200
Some interesting Macedonian Blogs: bukarski.blog.com.mk, femgerila.blog.com.mk,
arheo.com.mk, kvadraturanakrug.blog.com.mk, qzevski.blog.com.mk, oksimoron.blog.com.mk, antipunkt.blogspot.com, vuna.info..
As probably elsewhere in the world, the number of blog users in Macedonian blogosphere is rapidly growing. The reason could be in the fact that blog-hosting services have made it easy to create a blog or perhaps the blog itself attracts new followers. Nevertheless, some data shows that the assumed number does not necessarily fit the actual status quo since very large portion of Macedonian blogs are not active and do not publish new posts regularly. Many have just opened accounts to test the service or to comment on others’ posts. Unofficially, today they are around 20,000 blogs (both individual and corporate) feeding Macedonian blogosphere. According to a survey conducted by New Media Center, 58.8% of Macedonian internet users have their own blogs. However, the picture looks like a mosaic of a few outstanding and a huge number of less-known blogs, each contributing in particular genre starting from an ordinary diaries, travel chronicles to technical advice columns and political commentary or as the same survey shows the most of them (35.8%) read 2-3 blogs daily. Still, in the last couple of years the Macedonian blogosphere has made significant development. Macedonian blogers joined the formal Association of Blogers of Macedonia and under their mentorship the first Youth Blog Training was conducted in June this year. Last year, New Media Center organized MK Blog conference where interesting topics related to progress of the network society were discussed while this year New York University Skopje hosted the Second International Conference Glocal 2.0: Blogging: Evolution treated as Revolution which gathered international group of researchers and practitioners (bloggers) for a discussion and analysis on the emerging networked society. These are only part of the activities initiated and organized by Macedonian bloggers. Maybe most interesting fact are Macedonian blogers themselves - writers, poets who published books whose content was already published on their blogs. (Bukarski, Kostadinova;“Izdanie –Blog zapisi” etc.)
Avoiding the trap: Is it really credible source of information!?
While skeptics question the credibility of information posted due to the absence of any quality control mechanisms, the usual answers given by Macedonian blogers is that the true quality debate starts exactly after posting the opinion which is not case in traditional media where the information is simply served and hardly unbiased. Blogs are exactly about “keeping the finger on the pulse” - feeling what are the readers reactions to certain ideas, stories. This gives them a freedom to choose what to believe in. That is how, despite the above mentioned constraints, the blog appears to play a very important role in public debate sphere. Besides, internet users prefer blogs also because they keep them updated with the latest trends, they are interesting and fun and mostly because of the obvious biases.
After all, easy to start, sometimes hard to maintain, blogs remains the most dynamic, inconsistent but still very promising source of fresh, objective and challenging information and equal opportunities space. Macedonia has accepted the challenge and became part of the global blogging community, of course, putting on it its own original mark.
Sources “Short History of Macedonian Blogosphere” byF.Stojanovski.
New media Center on line Survey presented at Glocal 2.0: Blogging: Evolution treated as Revolution
Friday, July 18, 2008
Ecotourism in Macedonia
Enlarge EU Newsletter
JUNE 2008 Edition
Ecotourism in Macedonia
Ecotourism is a tourism which directly or indirectly promotes and supports sustainable economic development. Ecotourism can generate financial support for the formation, management and protection of natural areas. Having no coast, Macedonia can not pretend to become a mass-tourism destination like Croatia or Montenegro. The geographical and climatic conditions of Macedonia are to favour the development of tourism in an ecological environment.
Therefore, Macedonia should follow the example of small countries with very rich natural and ecological reserves such as Costa Rica or Nepal, for which ecotourism has become an important source of income. The drawback of ecotourism, like any kind of tourism, is that it can lead to a certain loss of values or customs, that is why Macedonia should implement very carefully ecotourism facilities with the outside assistance of NGO’s for a backup option due to uncertainties of the tourism market.
QUICK FACTS:
Number of tourists (2006): 499, 473 (total)
domestic: 297, 116;
foreign: 202, 357 ;
Number of tourists in Lake Ohrid: 250, 000 domestic and foreign in 2007;
Employees: around 11, 000;
Increase of employment (2007-08): 41.4%
Countries of origin of tourists (mostly): Serbia: 17%; Greece : 11%; Bulgaria : 9%; Albania : 7%.
Modest Beginnings
In December 2007, the Ministry of economy of Macedonia finally announced a development strategy for tourism until 2012. The strategy aims to create more than 2,000 new jobs and to improve by 28% the foreign and domestic investment in the tourism sector.
Ecotourism is still at a starting stage in Macedonia. Nevertheless, several local initiatives have already been undertaken: in the Skopje region, five ecotourism zones have been selected: Vodno-Matka, Jakupica, Taor, Katlanovo and Skopska Crna Gora. The political party DOM is setting up an eco-village in Babino and is promoting cultural tourism in Vitoliste in Mariovo district. A Macedonian emigrant is trying to renew in an environmental friendly way the village of Janse in Reka region in order to prevent the inhabitants to leave the village.
But until now, the most significant ongoing projects are implemented with international cooperation: the project “Sustainable development through ecotourism and environmental education in protected areas”, financed by the German agency GTZ, is implemented in Galicica National Park by the Alliance for Lake Cooperation in Ohrid and Prespa with the help of six NGOs from Serbia, Albania and Bulgaria.
Big Potential
EU funds, through the pre-accession assistance and neignbourhood policy, are good source for developing eco-tourism. Through the European Neighbourhood Policy, the EU is financing the development of ecotourism in Bosilovo and Monospitovo and a project for nature protection in the cross boarder zone of Dupnica-Kriva Palanka. This also helps Macedonia to follow Bulgarian examples where ecotourism is at a more developed state. Bilateral initiatives aiming promotion of ecotourism need also to be taken in consideration, like the pilot ecotourism project implemented by the Swiss Agency for Development and Cooperation in Brajcino area.
Macedonia has a considerable potential for ecotourism with not less than 33 natural conservation areas. International cooperation can really help Macedonia for the capacity building and organizational development of ecotourism but it is to the government to have a clear strategy: it is its role to take the optimal decisions and to create proper conditions for ecotourism so that the actors concerned could effectively benefit from it. The state has really to engage Macedonia into the niche of ecotourism through marketing campaign and to become conscious of the advantages from the respect of Macedonian nature. Indeed, ecotourism is unsustainable without ecology, so real efforts have to be done to clean the country and to improve individual awareness on environmental issues, so that 2009 could really become the year for green initiatives in Macedonia.
JUNE 2008 Edition
Ecotourism in Macedonia
Ecotourism is a tourism which directly or indirectly promotes and supports sustainable economic development. Ecotourism can generate financial support for the formation, management and protection of natural areas. Having no coast, Macedonia can not pretend to become a mass-tourism destination like Croatia or Montenegro. The geographical and climatic conditions of Macedonia are to favour the development of tourism in an ecological environment.
Therefore, Macedonia should follow the example of small countries with very rich natural and ecological reserves such as Costa Rica or Nepal, for which ecotourism has become an important source of income. The drawback of ecotourism, like any kind of tourism, is that it can lead to a certain loss of values or customs, that is why Macedonia should implement very carefully ecotourism facilities with the outside assistance of NGO’s for a backup option due to uncertainties of the tourism market.
QUICK FACTS:
Number of tourists (2006): 499, 473 (total)
domestic: 297, 116;
foreign: 202, 357 ;
Number of tourists in Lake Ohrid: 250, 000 domestic and foreign in 2007;
Employees: around 11, 000;
Increase of employment (2007-08): 41.4%
Countries of origin of tourists (mostly): Serbia: 17%; Greece : 11%; Bulgaria : 9%; Albania : 7%.
Modest Beginnings
In December 2007, the Ministry of economy of Macedonia finally announced a development strategy for tourism until 2012. The strategy aims to create more than 2,000 new jobs and to improve by 28% the foreign and domestic investment in the tourism sector.
Ecotourism is still at a starting stage in Macedonia. Nevertheless, several local initiatives have already been undertaken: in the Skopje region, five ecotourism zones have been selected: Vodno-Matka, Jakupica, Taor, Katlanovo and Skopska Crna Gora. The political party DOM is setting up an eco-village in Babino and is promoting cultural tourism in Vitoliste in Mariovo district. A Macedonian emigrant is trying to renew in an environmental friendly way the village of Janse in Reka region in order to prevent the inhabitants to leave the village.
But until now, the most significant ongoing projects are implemented with international cooperation: the project “Sustainable development through ecotourism and environmental education in protected areas”, financed by the German agency GTZ, is implemented in Galicica National Park by the Alliance for Lake Cooperation in Ohrid and Prespa with the help of six NGOs from Serbia, Albania and Bulgaria.
Big Potential
EU funds, through the pre-accession assistance and neignbourhood policy, are good source for developing eco-tourism. Through the European Neighbourhood Policy, the EU is financing the development of ecotourism in Bosilovo and Monospitovo and a project for nature protection in the cross boarder zone of Dupnica-Kriva Palanka. This also helps Macedonia to follow Bulgarian examples where ecotourism is at a more developed state. Bilateral initiatives aiming promotion of ecotourism need also to be taken in consideration, like the pilot ecotourism project implemented by the Swiss Agency for Development and Cooperation in Brajcino area.
Macedonia has a considerable potential for ecotourism with not less than 33 natural conservation areas. International cooperation can really help Macedonia for the capacity building and organizational development of ecotourism but it is to the government to have a clear strategy: it is its role to take the optimal decisions and to create proper conditions for ecotourism so that the actors concerned could effectively benefit from it. The state has really to engage Macedonia into the niche of ecotourism through marketing campaign and to become conscious of the advantages from the respect of Macedonian nature. Indeed, ecotourism is unsustainable without ecology, so real efforts have to be done to clean the country and to improve individual awareness on environmental issues, so that 2009 could really become the year for green initiatives in Macedonia.
Tuesday, June 10, 2008
New plastics recycling industry in Macedonia - Truth or Dare?
Enlarge EU Newsletter
MAY 2008 Edition
New plastics recycling industry in Macedonia - Truth or Dare?
The production and use of plastics today is 20 times greater than that of 50 years ago and is expected to increase, driven by its potential for innovation and energy saving, positive contribution to climate protection. However, plastics usage has many disadvantages, like the non-degradable nature, whose disposal creates a solid waste problem. EU policy on Waste Management as implemented in the Framework Directive on waste as amended by Directive 91/156/EEC obliges member states to encourage the reduction of waste and its harmfulness. They also must encourage the recovery of waste and prohibit uncontrolled dumping. The revised Packaging Waste Directive EU directive sets targets for recycling and recovery min. 55% and min. 60 % respectively, with end year of achievement December, 2008.
Macedonia lags well behind with the lack of modern technology and managerial expertise on waste management practices, and is currently undergoing an intensive period of legislative development concerning this issue. What are the present conditions of the plastics recycling industry in Macedonia? Can the private sector involvement in the waste management reach greater efficiency than the public enterprises regarding waste recovery and recycling?
Waste created per inhabitant: 313 kg/inhabitant
Commercial waste: 154.543 t/year (27%of the community solid waste)
Household waste: 417.838 t/year (73% of the community solid waste)
Waste from packaging: 13% from household waste and 30% from commercial waste in total 97.305t/year (17% of the community solid waste)
Total plastic (PET) wastes from packaging (including landfill disposed): 10.748t
Recycled PET waste from packaging: 0.2t
Source: MoEPP, R. Macedonia (2004/05)
Challenging conditions
The capacity for recycling, reuse and recovery of plastic packaging is very limited, with rate of recycling only 0.01%. According to the newly adopted Waste Management Strategy of the Republic of Macedonia (2008-2020) the recovery of many types of potentially recyclable materials (metals, paper, plastics, car batteries and accumulators, waste oils etc.) is not financially viable under the prevailing conditions: lower waste volumes, lower waste fees, higher costs of operating on relatively smaller scale and limited local markets for recyclables that contribute for an increased costs of export for recyclables. These unfavorable conditions are an obstacle for preparation and implementation of the integrated and cost-effective waste management system, regarding waste management recovery and recycling.
In need of encouragement
Data show that mostly the informal sector and private companies deal with collection and recycling of plastics. The cost-effective studies give green light on the private sector for its involvement in the part of managing waste treatment, recovery and recycling. This sector has taken over the resources belonging to the recycling network of former Yugoslavia, and still is not used efficiently due to the costly collection system. However, the implementation of $1.2 million USAID sponsored Plastic Recycling Project in partnership with the municipalities of Karpos, Gostivar, Kocani and Strumica, as well as public and private waste management companies and NGOs has brought progress in the raw waste management area. The recycling facts for the period 2005-2007 speak for themselves: collection of plastic bottles from start up point of 341 tones in 2005 have increased to 1500 tones in 2006 and in 2007 is estimated to be 3000 tones, and generated exports from bailed and/or processed plastic bottles reached approximately $1.6 million in 2007. (Source: USAID Plastic Recycling Project)The potential of the new recycling activities exists, but is facing problems such as: insufficient financial support for vehicles, equipment operation and maintenance costs, difficulties in obtaining appropriate licenses and permits, resolving the issue on unfair competition resulting from illegal collectors, weak public awareness and marketing campaigns, as well as missing support from local authorities for organizing plastic waste collection schemes.
MAY 2008 Edition
New plastics recycling industry in Macedonia - Truth or Dare?
The production and use of plastics today is 20 times greater than that of 50 years ago and is expected to increase, driven by its potential for innovation and energy saving, positive contribution to climate protection. However, plastics usage has many disadvantages, like the non-degradable nature, whose disposal creates a solid waste problem. EU policy on Waste Management as implemented in the Framework Directive on waste as amended by Directive 91/156/EEC obliges member states to encourage the reduction of waste and its harmfulness. They also must encourage the recovery of waste and prohibit uncontrolled dumping. The revised Packaging Waste Directive EU directive sets targets for recycling and recovery min. 55% and min. 60 % respectively, with end year of achievement December, 2008.
Macedonia lags well behind with the lack of modern technology and managerial expertise on waste management practices, and is currently undergoing an intensive period of legislative development concerning this issue. What are the present conditions of the plastics recycling industry in Macedonia? Can the private sector involvement in the waste management reach greater efficiency than the public enterprises regarding waste recovery and recycling?
Waste created per inhabitant: 313 kg/inhabitant
Commercial waste: 154.543 t/year (27%of the community solid waste)
Household waste: 417.838 t/year (73% of the community solid waste)
Waste from packaging: 13% from household waste and 30% from commercial waste in total 97.305t/year (17% of the community solid waste)
Total plastic (PET) wastes from packaging (including landfill disposed): 10.748t
Recycled PET waste from packaging: 0.2t
Source: MoEPP, R. Macedonia (2004/05)
Challenging conditions
The capacity for recycling, reuse and recovery of plastic packaging is very limited, with rate of recycling only 0.01%. According to the newly adopted Waste Management Strategy of the Republic of Macedonia (2008-2020) the recovery of many types of potentially recyclable materials (metals, paper, plastics, car batteries and accumulators, waste oils etc.) is not financially viable under the prevailing conditions: lower waste volumes, lower waste fees, higher costs of operating on relatively smaller scale and limited local markets for recyclables that contribute for an increased costs of export for recyclables. These unfavorable conditions are an obstacle for preparation and implementation of the integrated and cost-effective waste management system, regarding waste management recovery and recycling.
In need of encouragement
Data show that mostly the informal sector and private companies deal with collection and recycling of plastics. The cost-effective studies give green light on the private sector for its involvement in the part of managing waste treatment, recovery and recycling. This sector has taken over the resources belonging to the recycling network of former Yugoslavia, and still is not used efficiently due to the costly collection system. However, the implementation of $1.2 million USAID sponsored Plastic Recycling Project in partnership with the municipalities of Karpos, Gostivar, Kocani and Strumica, as well as public and private waste management companies and NGOs has brought progress in the raw waste management area. The recycling facts for the period 2005-2007 speak for themselves: collection of plastic bottles from start up point of 341 tones in 2005 have increased to 1500 tones in 2006 and in 2007 is estimated to be 3000 tones, and generated exports from bailed and/or processed plastic bottles reached approximately $1.6 million in 2007. (Source: USAID Plastic Recycling Project)The potential of the new recycling activities exists, but is facing problems such as: insufficient financial support for vehicles, equipment operation and maintenance costs, difficulties in obtaining appropriate licenses and permits, resolving the issue on unfair competition resulting from illegal collectors, weak public awareness and marketing campaigns, as well as missing support from local authorities for organizing plastic waste collection schemes.
Renewable Energy – a new energy scenario for Macedonia?
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April 2008 issue
Renewable Energy – a new energy scenario for Macedonia?
Renewable energy sources include non-fossil sources of energy that are sustainable over time and have no harmful environmental side effects. The new global energy and environmental trend is directed towards increase of the share of the RES in the energy production. Global, Europe-wide, and country-specific scenarios show 10% to 50% shares of primary energy from RES by 2050. Following this agenda the European Union has enthusiastically set the target of RES in the total energy production at 20% until the year 2020. While EU countries are leading forces in the use of RES in the world Macedonia is lagging behind. The share of RES in Macedonia is minimal; major energy sources still remaining the fossil fuels with environmentally damaging effects.
Is there an opportunity for more serious use of the RES in the energy sector in Macedonia? Can Macedonia become environmental friendly country, in the same time providing efficient and sustainable energy market?
Energy Profile of R.M. for 2007:
(in 10³TJ)
Total energy consumption: 121, 07
Energy production: 63, 59 (52, 52%)
Energy import: 57, 48 (47, 48 %)
Electricity from thermo-plants: 18, 37
Electricity from hydro-plants: 3, 46 RES share in total energy consumption (wood and geothermal energy): 7, 58 (6, 26%)
CO2 emission: 8.05 million metric tons
Source: Ministry for EconomyNeed for renewable energy sources in Macedonia
Today the share of renewable energy sources (hydro, solar, wind) in the total energy consumption in Macedonia is at a very low level. The energy sector remains very much dependent on the thermo-energy based on coal and lignite, as well as on the imports of oil and electricity. Nuclear power as a source of energy is not considered as an option on medium-term. With the astronomic rise of the oil prices, the global scarcity of the fossil fuels, the country’s insufficient distribution of natural gas and the underdeveloped electricity grid, Macedonia is facing serious problems with the energy production in the years to come. These serious indicators show the urgent need for bigger use of the sources of renewable energy in Macedonia. It will serve as exit from the energy crisis, reducing country’s dependence on imported energy sources, economic competitiveness on medium and long turn, and approach to the EU target level of 12% of share in RES until 2010, set in the EC White paper for a Community Strategy and Action Plan. The energy from RES will also allow for reduction of GHG in the atmosphere, which is also on the top of EU’s environmental agenda.
RES - Positive practices and blurred future pace
Following the EU directives on energy efficiency and RES as well as the provision in the Law on Energy from 2006, recent years show increase in the tendencies for energy from renewable sources. Thus, last year saw the launching of the tender for construction of small hydro-plants for electricity production. However other planned projects like the establishment of small geothermal district heating systems based on biomass and the building on windmills remain unrealized, on the level of policy recommendations. This is a result of the lack of concrete operational framework in the field of renewable energy on a state level, which hauls down the exploitation of the RES in Macedonia, leaving the initiatives mainly in the private sector.
Even though the EU 2007 Progress Report for Macedonia has positively evaluated the country in the field of renewable energies, the lack of administrative capacity for implementation and monitoring of the renewable energy projects remains as major obstacle for the energy sector. The absence of priority treatment in the state development policy has left the organized large-scale electricity production from RES out of the country’s energy agenda. Macedonia hasn’t developed efficient energy scenario for the upcoming years of energy crisis and economic instability. The question on how the renewable energy can fill in the gaps of the energy production in Macedonia remains an open issue that sets the Macedonian energy map until 2020. The solution to this issue will be better law enforcement, increase of technological innovations and political will for implementation of the state policies in the field of renewable energy.
Energy Profile of R.M. for 2007:
(in 10³TJ)
Total energy consumption: 121, 07
Energy production: 63, 59 (52, 52%)
Energy import: 57, 48 (47, 48 %)
Electricity from thermo-plants: 18, 37
Electricity from hydro-plants: 3, 46 RES share in total energy consumption (wood and geothermal energy): 7, 58 (6, 26%)
CO2 emission: 8.05 million metric tons
April 2008 issue
Renewable Energy – a new energy scenario for Macedonia?
Renewable energy sources include non-fossil sources of energy that are sustainable over time and have no harmful environmental side effects. The new global energy and environmental trend is directed towards increase of the share of the RES in the energy production. Global, Europe-wide, and country-specific scenarios show 10% to 50% shares of primary energy from RES by 2050. Following this agenda the European Union has enthusiastically set the target of RES in the total energy production at 20% until the year 2020. While EU countries are leading forces in the use of RES in the world Macedonia is lagging behind. The share of RES in Macedonia is minimal; major energy sources still remaining the fossil fuels with environmentally damaging effects.
Is there an opportunity for more serious use of the RES in the energy sector in Macedonia? Can Macedonia become environmental friendly country, in the same time providing efficient and sustainable energy market?
Energy Profile of R.M. for 2007:
(in 10³TJ)
Total energy consumption: 121, 07
Energy production: 63, 59 (52, 52%)
Energy import: 57, 48 (47, 48 %)
Electricity from thermo-plants: 18, 37
Electricity from hydro-plants: 3, 46 RES share in total energy consumption (wood and geothermal energy): 7, 58 (6, 26%)
CO2 emission: 8.05 million metric tons
Source: Ministry for EconomyNeed for renewable energy sources in Macedonia
Today the share of renewable energy sources (hydro, solar, wind) in the total energy consumption in Macedonia is at a very low level. The energy sector remains very much dependent on the thermo-energy based on coal and lignite, as well as on the imports of oil and electricity. Nuclear power as a source of energy is not considered as an option on medium-term. With the astronomic rise of the oil prices, the global scarcity of the fossil fuels, the country’s insufficient distribution of natural gas and the underdeveloped electricity grid, Macedonia is facing serious problems with the energy production in the years to come. These serious indicators show the urgent need for bigger use of the sources of renewable energy in Macedonia. It will serve as exit from the energy crisis, reducing country’s dependence on imported energy sources, economic competitiveness on medium and long turn, and approach to the EU target level of 12% of share in RES until 2010, set in the EC White paper for a Community Strategy and Action Plan. The energy from RES will also allow for reduction of GHG in the atmosphere, which is also on the top of EU’s environmental agenda.
RES - Positive practices and blurred future pace
Following the EU directives on energy efficiency and RES as well as the provision in the Law on Energy from 2006, recent years show increase in the tendencies for energy from renewable sources. Thus, last year saw the launching of the tender for construction of small hydro-plants for electricity production. However other planned projects like the establishment of small geothermal district heating systems based on biomass and the building on windmills remain unrealized, on the level of policy recommendations. This is a result of the lack of concrete operational framework in the field of renewable energy on a state level, which hauls down the exploitation of the RES in Macedonia, leaving the initiatives mainly in the private sector.
Even though the EU 2007 Progress Report for Macedonia has positively evaluated the country in the field of renewable energies, the lack of administrative capacity for implementation and monitoring of the renewable energy projects remains as major obstacle for the energy sector. The absence of priority treatment in the state development policy has left the organized large-scale electricity production from RES out of the country’s energy agenda. Macedonia hasn’t developed efficient energy scenario for the upcoming years of energy crisis and economic instability. The question on how the renewable energy can fill in the gaps of the energy production in Macedonia remains an open issue that sets the Macedonian energy map until 2020. The solution to this issue will be better law enforcement, increase of technological innovations and political will for implementation of the state policies in the field of renewable energy.
Energy Profile of R.M. for 2007:
(in 10³TJ)
Total energy consumption: 121, 07
Energy production: 63, 59 (52, 52%)
Energy import: 57, 48 (47, 48 %)
Electricity from thermo-plants: 18, 37
Electricity from hydro-plants: 3, 46 RES share in total energy consumption (wood and geothermal energy): 7, 58 (6, 26%)
CO2 emission: 8.05 million metric tons
Wednesday, March 26, 2008
Challenges of Urban Life: Macedonia and Europe
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March 2008 issue
THE CHALLENGES OF URBAN LIVING
Urban living: The challenges of city life
Currently, half of the world’s population lives in urban centres and cities can be viewed as potential threats to environment around the world. Even countries as India, traditionally considered as rural, where 70 % of the total number of one billion population is still living in rural areas, is facing massive migration from rural communities. Macedonia is not an exception to this trend. In response to the mounting challenges to urban environment, the EU is striving for new urban policy and reformulating the idea of a European city. Following the directives from Thematic Strategy on the Urban Environment as well as the Draft Community Strategic Guidelines for Cohesion 2007–2013, the EU has undertaken remarkable steps aimed at contributing to better implementation of EU environmental policies and legislation at local level. What is the significance of this fast growing interest for living in European cities and are we catching up with the European dimension of urban policy? Analyzing urban policy in Macedonia we can easily detect a gap in essentially important links among three main aspects of urban policy: physical, economic and social infrastructure.
Main problems of urban living in Macedonia:
Macedonian population is predominantly concentrated in urban areas, in first place in the city of Skopje, the capital. Major problems with regards to urban living that have emerged lately include high concentration of population, urban poverty, expansion of illegal settlements, traffic congestion, obsolete communal infrastructure, lack of regulations and low public awareness. This all has led to insufficient quality of urban life. One of the challenges of both local and national governments is defining plans aimed at improving the housing conditions in the settlements, especially the quality of living in small urban areas. Traffic also remains one of the most serious concern for urban planners and it is a definitely a lesson that can be learnt from other European cities facing traffic difficulties such as London where as the result of a new policy to shift from a dependence on cars to public transportation, car traffic has dropped by 5%. But regardless of the urban problems the cities are still promising destinations for living but mostly for practical economic reasons and finding jobs. In this context, the Government recently announced a project – building a new city in the Eastern part of the country envisioned to become a driver of the new Economical district.
Improving Urban Living:
One thing is certain: the quality of urban life is becoming an issue among local authorities putting urban management challenges high on their agenda. It is also crucial for the country to follow global trends and directives. In 2004 Macedonia joined the countries that ratified Kyoto protocol and prepared national strategy on CDM. Urban living policy it is not just an attempt to organize city life; it is a redefined requirement that must ensure perspective for each city relevant to its unique characteristics and needs. There must be systematic plan that will improve the main urban living indicators and finally to maximize their overall potential, at first place in the country’s economic growth and social development.
Source: World Economic Forum
Quick Facts:
Major cities: Skopje, Bitola, Tetovo, Prilep, Kumanovo.
Urban population: 60%
Population density: 81 inhab./km2
Population Skopje: 506.926
Population density Skopje: 887,07 inhab./km2
Source: Ministry of Local Government
March 2008 issue
THE CHALLENGES OF URBAN LIVING
Urban living: The challenges of city life
Currently, half of the world’s population lives in urban centres and cities can be viewed as potential threats to environment around the world. Even countries as India, traditionally considered as rural, where 70 % of the total number of one billion population is still living in rural areas, is facing massive migration from rural communities. Macedonia is not an exception to this trend. In response to the mounting challenges to urban environment, the EU is striving for new urban policy and reformulating the idea of a European city. Following the directives from Thematic Strategy on the Urban Environment as well as the Draft Community Strategic Guidelines for Cohesion 2007–2013, the EU has undertaken remarkable steps aimed at contributing to better implementation of EU environmental policies and legislation at local level. What is the significance of this fast growing interest for living in European cities and are we catching up with the European dimension of urban policy? Analyzing urban policy in Macedonia we can easily detect a gap in essentially important links among three main aspects of urban policy: physical, economic and social infrastructure.
Main problems of urban living in Macedonia:
Macedonian population is predominantly concentrated in urban areas, in first place in the city of Skopje, the capital. Major problems with regards to urban living that have emerged lately include high concentration of population, urban poverty, expansion of illegal settlements, traffic congestion, obsolete communal infrastructure, lack of regulations and low public awareness. This all has led to insufficient quality of urban life. One of the challenges of both local and national governments is defining plans aimed at improving the housing conditions in the settlements, especially the quality of living in small urban areas. Traffic also remains one of the most serious concern for urban planners and it is a definitely a lesson that can be learnt from other European cities facing traffic difficulties such as London where as the result of a new policy to shift from a dependence on cars to public transportation, car traffic has dropped by 5%. But regardless of the urban problems the cities are still promising destinations for living but mostly for practical economic reasons and finding jobs. In this context, the Government recently announced a project – building a new city in the Eastern part of the country envisioned to become a driver of the new Economical district.
Improving Urban Living:
One thing is certain: the quality of urban life is becoming an issue among local authorities putting urban management challenges high on their agenda. It is also crucial for the country to follow global trends and directives. In 2004 Macedonia joined the countries that ratified Kyoto protocol and prepared national strategy on CDM. Urban living policy it is not just an attempt to organize city life; it is a redefined requirement that must ensure perspective for each city relevant to its unique characteristics and needs. There must be systematic plan that will improve the main urban living indicators and finally to maximize their overall potential, at first place in the country’s economic growth and social development.
Source: World Economic Forum
Quick Facts:
Major cities: Skopje, Bitola, Tetovo, Prilep, Kumanovo.
Urban population: 60%
Population density: 81 inhab./km2
Population Skopje: 506.926
Population density Skopje: 887,07 inhab./km2
Source: Ministry of Local Government
Monday, February 25, 2008
MACEDONIAN HUMAN POTENTIAL: Trends and Challenges
Global PerspectiveThe world is facing a challenge of finding suitable talent for the current and future needs of the economy, with dramatic decreases in the workforce of some of the most developed economies in the world projected for the following decades. By 2025, EU, Japan and the US workforce will decrease from 7-14%. The scarcity of workforce, especially highly-qualified workforce, is hot topic for world leaders and governments of affected states, which devise strategies and revise their migration policies to prevent the looming economic crisis. Are Macedonia and other Western Balkans countries affected by these challenges and, if so, how can negative impact be prevented?
Macedonia: triple challenge
Although the decrease in the working-age population in Macedonia is not as sharp as in the Western European states or other states in the region, there is another factor making the situation alarming – lack of economic growth, and thus, limited employment opportunities. Despite the fact that annually, more than six thousand students are graduating from state universities in Macedonia, many Macedonian graduates and students have become consumers rather than contributors to the economy and the social system.
Rocketing unemployment rates, especially among youth and women make job prospects bleak and discourage the young educated and skilled Macedonians in pursuing careers, whether at home or abroad. Moreover, the quickly developing information-driven economy of today requires competitive skills and continuous upgrade of those. Those skills are scarce in developed economies, and even more so in developing countries. Macedonia lags behind with educational reforms and building a knowledge-based economy. The situation has been exacerbated by the limited travel opportunities, including working abroad where younger generations would be able to acquire new skills and capabilities, not available in the country. There is a value in migration as it is one of the pillars for today’s economic and social development of globalized societies. Thus, Macedonian economy needs to gain momentum, while its human potential needs boosting of both human capacities and skills – a triple challenge for policy-makers.
Which Way to Development?Education reforms and student mobility would strategically assist Macedonian economy in producing work force competent to join the global markets. Applying Bologna principles for student mobility and catching up with European educational trends is one way about these challenges. Still more needs to be done in encouraging youth and women employment, who are most affected by unemployment, but who can offer additional boost to the workforce. The prospects for joining the competitive EU labour market demand concerted efforts at preparing Macedonian economy and labour force for that.
QUICK FACTS
Total Labour Force: 890, 000.
Unemployment: 35% (app. 300,000)
Youth unemployment (15 to 24): 1/3 of total unemployment.
Women employment: 32%
Number of Universities: 4 (state); 6 (private)
Annual Graduates from state universities: app. 6,500.
Source: State Statistical Office
Global PerspectiveThe world is facing a challenge of finding suitable talent for the current and future needs of the economy, with dramatic decreases in the workforce of some of the most developed economies in the world projected for the following decades. By 2025, EU, Japan and the US workforce will decrease from 7-14%. The scarcity of workforce, especially highly-qualified workforce, is hot topic for world leaders and governments of affected states, which devise strategies and revise their migration policies to prevent the looming economic crisis. Are Macedonia and other Western Balkans countries affected by these challenges and, if so, how can negative impact be prevented?
Macedonia: triple challenge
Although the decrease in the working-age population in Macedonia is not as sharp as in the Western European states or other states in the region, there is another factor making the situation alarming – lack of economic growth, and thus, limited employment opportunities. Despite the fact that annually, more than six thousand students are graduating from state universities in Macedonia, many Macedonian graduates and students have become consumers rather than contributors to the economy and the social system.
Rocketing unemployment rates, especially among youth and women make job prospects bleak and discourage the young educated and skilled Macedonians in pursuing careers, whether at home or abroad. Moreover, the quickly developing information-driven economy of today requires competitive skills and continuous upgrade of those. Those skills are scarce in developed economies, and even more so in developing countries. Macedonia lags behind with educational reforms and building a knowledge-based economy. The situation has been exacerbated by the limited travel opportunities, including working abroad where younger generations would be able to acquire new skills and capabilities, not available in the country. There is a value in migration as it is one of the pillars for today’s economic and social development of globalized societies. Thus, Macedonian economy needs to gain momentum, while its human potential needs boosting of both human capacities and skills – a triple challenge for policy-makers.
Which Way to Development?Education reforms and student mobility would strategically assist Macedonian economy in producing work force competent to join the global markets. Applying Bologna principles for student mobility and catching up with European educational trends is one way about these challenges. Still more needs to be done in encouraging youth and women employment, who are most affected by unemployment, but who can offer additional boost to the workforce. The prospects for joining the competitive EU labour market demand concerted efforts at preparing Macedonian economy and labour force for that.
QUICK FACTS
Total Labour Force: 890, 000.
Unemployment: 35% (app. 300,000)
Youth unemployment (15 to 24): 1/3 of total unemployment.
Women employment: 32%
Number of Universities: 4 (state); 6 (private)
Annual Graduates from state universities: app. 6,500.
Source: State Statistical Office
Friday, February 1, 2008
Analytica Has A Blog! Finally!
I know this is not the most strategic move of all and perhaps there are more important things to do and write about right now (upcoming NATO summits, road-map documents prepared by the EU, etc.). But, I like the idea of setting up a blog...perhaps, in between, interviews, conference-hopping, and report-writing, we can share some thought and ideas, suggestions and critiques.
So, there, go ahead....fill in the blogging space! :)
So, there, go ahead....fill in the blogging space! :)
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