FYR Macedonia: The Business Environment Reform and Institutional Strengthening Project

The Government of FYR Macedonia has been implementing an ambitious program to improve the business environment and attract a higher level of investments to stimulate employment and growth in the country. In addition, the path to European Union accession requires capacity to develop and implement an efficient regulatory environment, which would stimulate business entry, investment, and growth. The Business Environment Reform and Institutional Strengthening Project was designed to help build this capacity.

FYR Macedonia is a small transition economy. In the early days of independence, the country experienced hyperinflation, border conflicts, and civil disturbances. In spite of the turmoil of the last decade, successive governments have embarked upon an ambitious reform program aimed at transforming the country into a market economy. State-owned and socially-owned enterprises have been privatized, markets liberalized, and reforms in the financial sector have led to a stronger and more viable banking system. At the same time, the Government has achieved and maintained macroeconomic stability.

Despite these achievements, the economy faces numerous challenges, such as a weak judicial sector, low competitiveness in an increasingly global market, slow materialization of foreign direct investments, and significant regulatory and institutional weaknesses that reduce investor confidence and affect the private sector’s ability to compete. In addition, national Metrology, Standardization, Testing and Quality (MSTQ) system is outdated, which deprives the Macedonian enterprises of the appropriate means to control the quality of imported goods or to certify that the quality of their exported goods meets required standards.

News source: Worldbank link: article