Economic Aspects | Natural Resource Aspects | Institutional Aspects | Social Aspects |Macedonia

ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA

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INTERNATIONAL COOPERATION

Decision-Making: Coordinating Bodies   

The Government of Republic of Macedonia, in particular Ministry of Foreign Affairs, Ministry of Environment And Physical Planning and other respective ministries, within their respective competencies, are responsible for issues related to international cooperation.

The coordination is performed within inter-ministerial groups and through the Commission for Economic System, Sustainable Development and Current Economic Policy of the Government as well ad-hoc at the sessions of the Governments cabinet.

As for the international cooperation at the level of local authorities, Councils of municipalities and Mayors may make autonomous decisions on matters of municipal international co-operation, subject to, in certain limited instances, providing information to higher national authorities for an opinion.

Decision-Making: Legislation and Regulations 

The Republic of Macedonia, as a member State of the United Nations, is obliged to respect and implement the international agreements related to sustainable development, Agenda 21 in the first place, and conventions already adopted and entered into force: on climate change, on bio-diversity and on combating desertification. At the initiative of the Ministry of Environment and Physical Planning, a conceptual approach was prepared for the definition and implementation of a National Strategy for Sustainable Development, designed to be a starting and gathering point for several projects for identification of the factual situation, trends and possibilities, for pointing the situations and stream-lining the achieved development in the country.

The Government of the Republic of Macedonia has introduced the Law on competition, by which the problems of the monopolies are regulated. The Government has undertaken adequate measures to stimulate foreign investment in this field, by decreasing the tariffs to the level proposed by the WTO and other international organizations and by making the national economy more transparent and open, and to increase its efficiency.

    In the mainstream of our Government's policy is promotion of the private sector investment. To that end, for the purpose of investment promotion and sustainable development, the National Strategy for Sustainable Development is aimed at:

        Coordination of the governmental resources efforts in accord with the sustainable development postulates;

        Establishing unique and clear criteria for assessment of the achieved results from the aspect of achieving sustainable development;

        Defining the responsibility of the subjects that make and enforce decisions in the field of sustainable development in the Republic of Macedonia.

Decision-Making: Strategies, Policies and Plans  

In 1997 the NEAP was adopted, which contains development policies and cooperation strategies at the local, national and regional level. At present, several LEAPS have been developed elaborating development policies only at a local plan.

There is a regional bilateral cooperation, and bilateral agreements have been signed in the field of environment and sustainable development with Bulgaria, Albania and Greece, and with FR of Yugoslavia.

Republic of Macedonia is in a procedure of accessing to the World Trade Organization.

National source is the National Budget of the Republic of Macedonia. Foreign sources include governmental assistance from Germany, Switzerland, the Netherlands  (through bilateral agreements) as well as through EU PHARE Cross Border Cooperation Programme.

There are procedures for seeking transfer and education in environmental technologies and know-how.

Decision-Making: Major Groups Involvement  

NGOs are in great deal involved in the decision making process, mainly by advising in some specialized areas of their interest and by making observations. Local authorities are taking part in the process of the regional cooperation particularly within the so-called cross-border cooperation among the municipalities of the neighboring countries.

The involvement of the above mentioned groups is mainly advising and observing and partly decision-making, in the case of the local authorities.

The private sector is rarely involved in these activities so far. One of the main goals of the Government is to create in the near future favorable conditions for an increased participation of the private sector in the international cooperation.

Programmes and Projects 

A number of projects are designed aimed at improvement of the environment and economic well - being of the citizens (Protection of the lakes of Ohrid, Prespa and Dojran,  river Vardar , projects for resolving different environmental problems in certain municipalities etc.). However, there is a need to enhance financial assistance from the international funds and organizations, particularly GEF/UNDP and others.  

Some projects worth mentioning are: a) Assistance from the Netherlands' Government for projects  for energy efficiency and waste water treatment; b) Phare Cross Border Cooperation Programme, project for Monitoring System of Vardar River.

So far the Republic of Macedonia has established bilateral and multilateral cooperation with donors for financial assistance for projects related to activities for sustainable development. On bilateral level, a fruitful cooperation has been established with governments of Netherlands, Switzerland, Germany, France, Norway, Japan, USA and some others.

The World Bank, USAID, Council of Europe, GEF and PHARE are main multilateral providers of financial assistance. As for Official Developmental Assistance (ODA), the Republic of Macedonia has only received some financial assistance through UNDP, which is not sufficient.  

The Government of the Republic of Macedonia, due to the negative impact of the Kosovo crises in 1999-2000 requested some debt relief measures, but has not been granted any of such measures.

Status 

There has not been any debt relief even it has been requested to remedy the negative effects of the Kosovo crises on the Macedonian economy.

ODA is at a very low level.

Challenges

Confidence-building in transfer of technologies and know-how based on mutual interest; strengthening of good-governance and introducing national legislation harmonized with international standards and conducive to sustainable development; introducing and developing good-practices and criteria for responsible utilization of financial aid by the beneficiaries.

Strengthening of the role of the main groups in sustainable development, financing for sustainable development, transfer of technologies, and science for sustainable development (Chapter 2 and 4 of Agenda 21).

The main challenge is how to improve cooperation with NGOs, private sector etc., in order to develop and implement the National Sustainable Development Strategy (in the process of preparation).

Capacity-building, Education, Training and Awareness-raising 

The promotion of the public awareness is conveyed mainly through organization of public seminars, through media information etc.

Several educational programs planned, to be introduced in the near future.

It is important to get financial aid and develop think-thank projects in education and strengthening capacities on the part of identification and formulation, selection, administration and management of projects.

Information 

Information through the Ministry of Foreign Affairs is transmitted to the competent ministries further responsible for disseminating the information to all parties concerned. So far all the information are not yet accessible via Internet.  Also, information is available through mass media.

Through publication of government documents, open forum for discussion, round tables, etc.

Research and Technologies 

Various governmental and other public institutions work on the issues of development and transfer of technology and there is a need for harmonization in that regard, to have them represented in a national body responsible for sustainable development. The need for education in that regard is also identified.

National Cleaner Production Center is in the process of establishment in Macedonia, based on international practice and experience in this regard.

The Ministries in the Government appear as coordinators of different projects acting within their respective competences. The Ministries in the Government appear as coordinators of different projects acting within their respective competences.

Financing 

A combination of all these groups of sources, but predominantly bilateral and multilateral sources. Participation of the private capital is minimal.

Cooperation

Republic of Macedonia as a member of the CSD is making efforts to participate actively in all major international events related to the sustainable development, and at the same time is in the process of ratification and implementation of all major related treaties. 

The bilateral trade agreements the Government has concluded with other countries are favorable to promotion of the sustainable development, through enabling trade liberalization, protection of environment etc.

The Government, on national level has always promoted the need for implementation of the Agenda 21. On regional level, it has initiated several regional and sub-regional programs to that end, particularly in the field of the environmental protection.

The Former Yugoslav Republic of Macedonia has participating in the work of relevant international organizations to adopt sustainable development principles and international development programmes. Within this context, the country cooperates with the World Trade Organization (WTO), the European Union Phare Program, the World Bank (WB), the United Nations Food and Agriculture Organization (FAO), the European Bank for Reconstruction and Development (EBRD), and others.

Within the country, the Former Yugoslav Republic of Macedonia is cooperating with the Swiss government to protect Ohrid Lake. There has also been cooperation with the World Trade Organization (WTO) in terms of the adoption of sustainable development principles.

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This information was provided by the Government of the Former Yugoslav Republic of Macedonia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: March 2001.

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TRADE

No information available.

 

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CHANGING CONSUMPTION PATTERNS

Decision-Making: Coordinating Bodies   

In the Former Yugoslav Republic of Macedonia, the major responsibility for energy consumption lies within the national electricity management agency of the Ministry of Economy. Many scientific, academic, and non-governmental associations are also active in this issue area holding seminars and consultations promoting sustainable development principles. The active major groups include the Association of Energy Workers of the Former Yugoslav Republic of Macedonia, and the Board of Energy Development of the Macedonian Academy of Sciences and the Arts.

Decision-Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups Involvement  

No information is available.

Programmes and Projects

No information is available. 

Status 

Overall, the future direction for energy use includes: (1) increasing the proportion of natural gas as an energy source and its introduction for household consumption; (2) greater reliance on hydro energy through the construction of hydroelectric power stations; (3) increasing the share of renewable energy sources; and (4) implementing the approved National Program of Energy Saving, Substitution and Rational Use By 2000. Efforts have been made in recent years to join the Former Yugoslav Republic of Macedonia to the gas pipeline from Russia. This would certainly improve the national energy structure from an environmental aspect. The construction of hydroelectric power plants represents a second priority.

In the past five years, the volume of manufacturing and the consumption of natural resources have considerably decreased, primarily due to the structural reforms carried out during this period. The consumption of electricity in industry has also decreased. Thermo-electric power plants produce some 70% of the total electricity while hydro-electric power plants generate the remaining 30%. Fifty-five percent of the national demand for electricity is met through domestic production and 45% through imports.

Challenges

No information is available.

Capacity-building, Education, Training and Awareness-raising  

No information is available.

Information

No information is available.

Research and Technologies

No information is available.  

Financing

No information is available.

Cooperation

No information is available.

 

 

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This information was provided by the Government of the Former Yugoslav Republic of Macedonia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

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FINANCING

No information available.

 

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For information on participating States in the Global Environment Facility, click here:
For information about issues and projects in Eastern Europe and Central Asia from the World Bank, click here:

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TECHNOLOGY

Transfer of Environmentally-Sound Technology

Decision-Making: Coordinating Bodies   

No information is available.

Decision-Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

Introducing and developing environmentally sound technologies represents one of the highest priority tasks of the Government of the Former Yugoslav Republic of Macedonia. It is being tackled in several important areas. Support for such technologies has already been integrated into the National Ecological Action Plan (NEAP) and several projects and studies are currently underway. The new Act on Environmental Protection, which is soon expected to be approved by the Government, includes the task of identifying environmentally sound technologies as the basis for further development in the country.

Decision-Making: Major Groups Involvement  

No information is available.

Programmes and Projects

No information is available. 

Status 

No information is available.

Challenges

No information is available.

Capacity-building, Education, Training and Awareness-raising  

No information is available.

Information

No information is available.

Research and Technologies  

No information is available.

Financing

No information is available.

Cooperation

In this context, the country has developed cooperation with several multilateral funds and agencies, such as the Global Environment Facility (GEF), the Ozone Fund, the United Nations Environment Programme (UNEP), and the United Nations Development Programme (UNDP).

 

 

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This information was provided by the Government of the Former Yugoslav Republic of Macedonia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

 

Biotechnology

Decision-Making: Coordinating Bodies   

The Ministry of Agriculture, Forestry and Water Management supervises the work of all agencies in the area of biotechnology. The Ministry of Science tracks biotechnology projects and funds their implementation. Finally, the Academy of Arts and Sciences is an important contributor to biotechnology research.

In more specific terms, the special Institute for Biotechnology at the Macedonian Academy of Sciences and the Arts monitors current trends in the development of biotechnology throughout the world. Another Biotechnology Institute also exists within the University of Technology and Metallurgy. At the Agriculture Institute a special team of experts works on new kinds of plants and animal species.

Decision-Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups Involvement  

No information is available.

Programmes and Projects

No information is available. 

Status 

No information is available.

Challenges

No information is available.

Capacity-building, Education, Training and Awareness-raising  

No information is available.

Information

No information is available.

Research and Technologies

No information is available.  

Financing

No information is available.

Cooperation

No information is available.

 

 

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This information was provided by the Government of the Former Yugoslav Republic of Macedonia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

Click here to link to the Biosafety Information Network and Advisory Service (BINAS), a service of the United Nations Industrial Development Organization (UNIDO), which monitors global developments in regulatory issues in biotechnology.
Click here to go to the Web Site of UNEP's International Register on Biosafety.
Click here for the International Centre for Genetic Engineering and Biotechnology Biosafety WebPages

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INDUSTRY

Decision-Making: Coordinating Bodies   

No information is available.

Decision-Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups Involvement  

No information is available.

Programmes and Projects 

No information is available.

Status 

In the past five years, the volume of manufacturing and the consumption of natural resources have considerably decreased, primarily due to the structural reforms carried out during this period. The consumption of electricity in industry has also decreased.

Challenges

No information is available.

Capacity-building, Education, Training and Awareness-raising  

No information is available.

Information

No information is available.

Research and Technologies  

No information is available.

Financing

No information is available.

Cooperation

No information is available.

 

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This information was provided by the Government of the Former Yugoslav Republic of Macedonia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: 1 April 1997.

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TRANSPORT

Decision-Making: Coordinating Bodies   

Main responsibility for decision-making is on Ministry of transport and communications with certain areas being covered also by the Ministry of Interior, such as implementation of the Law for the security of the road transportation. Apart from these two ministries, the Fond for regional roads and roads of wider importance is responsible for the condition of roads and their safety. 

Also, at the Ministry of transport, there is a Department for civil aviation responsible for the civil air transport, as well as Department for water transportation, responsible for the regulation of the inside water transportation (mainly lake transportation). 

Besides the state organs, there are several public enterprises: Makedonija PatE responsible for maintaining regional and roads of wider importance; Makedonski zelezniciEresponsible for management of the rail transportation etc.

Main responsibility for decision-making is on Ministry of transport and communications with certain areas being covered also by the Ministry of Interior, such as implementation of the Law for the security of the road transportation. Apart from these two ministries, the Fond for regional roads and roads of wider importance is responsible for the condition of roads and their safety. 

Also, at the Ministry of transport, there is a Department for civil aviation responsible for the civil air transport, as well as Department for water transportation, responsible for the regulation of the inside water transportation (mainly lake transportation). 

Besides the state organs, there are several public enterprises: Makedonija PatE responsible for maintaining regional and roads of wider importance; Makedonski zelezniciEresponsible for management of the rail transportation etc.

The main form of coordination of the above mentioned politics and legislative for the regulation of the transport system in Republic of Macedonia is done through meetings of the joint expert groups with participation of representatives from different ministries.

Local government is responsible for management of the city transportations and local transport system as well as Cab transportation regulation.

Decision-Making: Legislation and Regulations 

Main laws and regulations are:

-Law for the transportation in the road traffic;

-Law for public roads;

-Law for the safety of the public transportation;

-Law for the Macedonian railways;

-Law for the internal water traffic;

-Law for the air transportation etc.

All these laws are in accordance with the European Union regulation and they reflect great number of issues regarding the protection of the atmosphere, energy efficiency etc.

Emission standards, safety codes, maintenance standards and incentive mechanisms aimed at reducing vehicle emissions, are being prepared in accordance with the standards set by the European Union. 

Decision-Making: Strategies, Policies and Plans  

Transportation policy of the EU including its standards and regulations are the basis for the formulation of the Macedonian transportation strategy.

On short-term, the Government plans construction of several roads: modernization of the M-1 road from Demir Kapija to Gevgelija (44 km); construction of the part of the highway E-75, from Gevgelija to Greek border (15,8 km); Reconstruction of Stip-Radovis-Strumica road (60 km);construction of Skopje Tetovo highway (35,7 km) etc.

On long-term, the Government plans include: construction of the part of the highway E-75 Negotino-Demir Kapija (15,4 km); construction of railway Kumanovo-Belakovce-Kriva Palanka-bulgarian border (54,5 km) etc. 

At the moment, the Government of the Republic of Macedonia is considering ways to develop alternative transportation modes which would be more conducive to environmental protection and at the same time aimed towards stimulation of the vehicle fleet upgrading, by minimizing the tariffs for import of vehicles and diminishing all other taxation except the VAT which should be on the lowest possible level.

On short-term, the Government plans construction of several roads: modernization of the M-1 road from Demir Kapija to Gevgelija (44 km); construction of the part of the highway E-75, from Gevgelija to Greek border (15,8 km); Reconstruction of Stip-Radovis-Strumica road (60 km);construction of Skopje Tetovo highway (35,7 km) etc.

On long-term, the Government plans include: construction of the part of the highway E-75 Negotino-Demir Kapija (15,4 km); construction of railway Kumanovo-Belakovce-Kriva Palanka-bulgarian border (54,5 km) etc.

At the moment, the Government of the Republic of Macedonia is considering ways to develop alternative transportation modes which would be more conducive to environmental protection and at the same time aimed towards stimulation of the vehicle fleet upgrading, by minimizing the tariffs for import of vehicles and diminishing all other taxation except the VAT which should be on the lowest possible level. 

Decision-Making: Major Groups Involvement  

Apart from the governmental bodies, there are several NGOs active in this field, also Economic Chamber of Macedonia, Transportation unions etc.

Less developed municipalities are faced with the biggest transportation problems and lack of financing.

The private sector influence is effectuated through the Private transportation Unions and through the Economic Chamber of Macedonia.

The private sector influence is effectuated through the Private transportation Unions and through the Economic Chamber of Macedonia.

Programmes and Projects 

Regarding the traffic safety, the Ministry of interior makes annual reports with a precise methodology according to which appropriate activities are being taken by the competent authorities in order to decrease the rate of traffic accidents, etc. 

Fond for regional roads and roads is responsible for the research programs and projects of wider importance. Several projects are under way.

Status 

Quantitatively, transport services in these areas are at satisfactory level, however, there is a need to improve the quality of the services.

Republic of Macedonia is a land-locked country and therefore transportation is mainly done by land (roads, railways) and by air. The present level of the transport system efficiency is satisfactory.

Efforts are being made for the elimination of leaded gasoline by the year 2005.

Challenges

The mode of transport that requires the most immediate attension is the road transportation.

Technical level of the roads in Macedonia is satisfactory. Biggest problems in the traffic efficiency derive from the border crossings with some of the neighboring countries. However, biggest problem of the traffic efficiency is the covered vehicle fleet. The average age of vehicles in Macedonia is 15 years. That is why we have to reduce all the tariffs and eliminate other taxation for vehicle import.

Main reasons preventing Macedonia from further reducing emissions are high tariffs and extremely high taxation rates for vehicle import.

The whole economy suffers indirectly from present problems in the transportations, and from social aspect most affected are least developed municipalities.

Capacity-building, Education, Training and Awareness-raising 

In the Republic of Macedonia there is a Council for public safety in the transportation, which has its annual programe carried out through the educational system and the media.

All the TV and radio stations are contributing great deal in the presentation of the problems of the environment protection. National television has a special programme broadcasted weekly, and every media broadcast 6-7 minutes of so called eco-news every day.

There are no official measures to encourage enhanced use of public transport, car-pooling, non-motorized transport, etc. at this point, but it will be undertaken in near future.

There is an  annual programme of the Council for public safety in the transportation.

Students have certain school subjects in which they are closely introduced with the relationship between transport and environment.

Public enterprises mentioned above, have special programs for education of transport participants. Ministry of interior has a special program for education of instructors for work in the so called traffic schoolsE/span>

Information 

The Fund for regional roads and roads of wider importance is responsible for gathering of information related to transport and traffic systems in the country (vehicle type, vehicle age etc.) based on this information, annual reports are being made according to the standards set by the European Union.

These data are available to the public through statistical and annual brochures and through media presentation (news agencies, newspapers, magazines, etc), also partially available on Internet web sites, etc. These data are available to the public through statistical and annual brochures and through media presentation (news agencies, newspapers, magazines, etc), also partially available on Internet web sites, etc.

Research and Technologies  

Usage of tramway in the city of Skopje is a project for a future realization.

Financing 

The construction of the road structure and railways is set by 14 provisions of the article 96 of the Law for public roads. Most important national sources for financing are taxes on fuel consumption, incomes from the annual vehicle registration etc. In addition, foreign multilateral credits (main external source of financing for this purpose) and partly bilateral credits, and also (symbolic) foreign donations.

Republic of Macedonia makes significant efforts to attract foreign direct investment in this field. To this end, efforts are being made for introduction of concessions for investments in the road transportation.

Cooperation

Republic of Macedonia has ratified several international agreements and conventions: on European railway network (1985); on Road transportation (1968); on Construction of vehicles (1958); Agreement for commercial road transportation-CMR (1956); the Protocol of CMR (1978); TIR Convention (1975) and Transportation of dangerous materials-ADR (1957).

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This information was provided by the Government of the Former Yugoslav Republic of Macedonia to the ninth session of the United Nations Commission on Sustainable Development. Last Update: April 2001.

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SUSTAINABLE TOURISM

No information available.

 

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