Profile of Former Yougoslavia Republic Macedonia
Country Profile: FYR MACEDONIA --
June 1996
Capital: Skopje Languages: Macedonian, Albanian
Size: A bit larger than Vermont -- 25,333 sq. km (9,779 sq.
miles)
Population: 1.9M (1994); 65% Macedonian, 22% Albanian, 4%
Turkish, 2%
Serb.
Population Growth Rate: 0.9% (1994)
Life Expectancy: -70.1 yrs., -74.4 yrs. (1994)
Infant Mortality Rate: 22.5/1,000 live births in 1994
Education & Literacy: 93% literate;
Unemployed: 20%
Per Capita Income: $790 (1994);
Currency: Denar,
GDP: $2.9 billion (1994);
GDP Growth: -6% (1994),
External Debt: $1,107 million (1994)
Foreign Direct Investment Per Capita: NA
Political Issues: The Former Yugoslav Republic of Macedonia (FYROM) gained independence in 1991. The United States established full diplomatic relations with them on September 13, 1995. A Greek/FYROM Accord, signed on September 13, 1995 will establish friendly relations between the two countries. All members of the European Union, except Greece, have established full diplomatic relations with the FYROM. The country observes a parliamentary democracy and direct elections for President. The reform-minded President Gligorov was reelected in December 1994 elections ruled free and fair by international observers. His three party coalition garnered a two-thirds majority in the Parliament. The planned lifting of the Greek Blockade will remove a major dissruption to international trade and eliminate a major obstacle to Macedonian participation in European organizations. The Macedonians have a large ethnic Albanian minority. Both groups are working together to resolve problems, but these relations could be a future source of tension.
Economic Issues: The government puts the price of the sanctions and blockade at over $2 billion. Despite obstacles, the government embarked first on a stabilization program in 1992, which won praise from the IMF and second started attempts to adjust the economic structures of society. Agriculture actually began to privatize prior to the Yugoslav break up, but now the government is formalizing the private nature of land, processing and marketing elements. However, the government needs to focus more efforts in privatizing the industrial and banking sectors, and upgrading quality in agriculture. While the strong monetary and fiscal policies have reduced inflation, the external impediments served to stifle growth leaving the average monthly salary at $227.
Overview of SEED Assistance in
Macedonia
Strategic objectives for assistance include:
Economic Restructuring:
(1) Ensure the establishment of a financial and economic framework for a smooth transition to a market -oriented economy.
(2) Accelerate the privatization of enterprises.
(3) Improve economic performance in, and market access for, the agricultural sector.
Building Democracy:
Promote citizen participation and
accountable
governance as key elements.
Social Sector Restructuring/Humanitarian: Reform governmental
social security programs to reduce costs and address humanitarian
needs.
The Planned FY 1996 SEED budget for Macedonia is $12 million. USAID has begun its third full year of implementation of the SEED program. Major activities to boost economic performance include rehabilitating commercial banks, improving tax administration, privatizing state-owned enterprises, providing management training for small, medium and large entities, facilitating market-oriented commercial laws, creating lending programs for small and micro businesses, developing the agribusiness sector, fomenting rural investments and finalizing land privatization. The democracy program concentrates on citizen access and participation in government. SEED funded activities are strengthening non governmental organizations to provide more avenues of contact, enhancing the public administration skills of municipal governments and outreach of parliamentarians to increase access, and expanding media coverage and capabilities to improve public knowledge of events. The social sector restructuring will target pension and welfare reform, while continuing to meet critical humanitarian needs.
USAID/Skopje Contact: Linda Rae
Gregory, USAID Representative
(tel. 389-91-117-211, fax 389-91-118-105) Skopje, Macedonia
USAID/Washington, Desk Officer: Ellen Czaplewski (202) 647-9700
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