|
|
|
|
|
|
|
|
|
|
  |
 |
  |
Former Yugoslav Republic of Macedonia
FY 2001 Program Description and Activity Data Sheets
>> Regional Overview >> Macedonia Overview FY 2001 Program
The U.S. assistance program in Macedonia has coalesced into three primary objectives, and involves expansion of the private sector, increased civic participation, and local government strengthening. These three objectives address a number of important cross cutting themes, of which unemployment and ethnic tensions are two of the most important.
Under the economic reform goal, USAID is requesting FY 2001funding for accelerated growth and development of the private sector. Efforts to combat unemployment and stimulate the development of small and medium-sized private businesses, the backbone of any middle class, will be of prime importance. USAID will continue to support a labor redeployment activity that emphasizes community economic development and worker adjustment. Support will be provided for micro lending and development of credit unions with particular focus on combating poverty by stimulating credit availability at the grass-roots level. In addition to working at the people-level, USAID will continue to support targeted activities to reform the legal and regulatory environment in Macedonia, and increase transparency and efficiency. Work at the enterprise level will continue, and be integrated with USAID efforts to stimulate regional trade and assist in Macedonia’s accession to the WTO. Many of these programs have received important buy-in and support from other donors’ mutually reinforcing programs.
USAID has two objectives in its democratic transition sector: one aimed at increasing people’s participation in political and economic decision making; and the other aimed at strengthening the ability of local government to be more effective, responsive and accountable. Under the citizens’ participation objective, USAID will continue to strengthen CSOs – such as NGOs, political parties and media – to provide citizens with the channels through which they can effectively participate in decision making in their communities. Forging mechanisms for cooperation at the grassroots level across ethnic lines on issues of mutual interest is the first step in creating tolerance and understanding among the different ethnic groups.
Funding will also go for efforts under the local government strengthening objective to ensure institutionalization of strong, representative, decentralized government, and help address ethnic conflict, by uniting groups around common issues and working on problem solving techniques. Implementation of a new activity under this objective is just starting. The activity will target reforms to devolve more authority to local municipalities; establish a system of local financing; and improve mechanisms for popular participation in local service delivery. This program will work to leverage important resources from the EU and World Bank, and will include an important USAID element addressing Macedonia's municipal pollution problems.
As a complement to these three strategic objectives USAID is requesting funds for a number of cross cutting activities, including participant training, evaluation and activity support.
[an error occurred while processing this directive]
ACTIVITY DATA SHEET
PROGRAM: Macedonia
TITLE AND NUMBER: Accelerated Development and Growth of the Private Sector, 165-013
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $14,250,000 SEED
PROPOSED FY 2001 OBGLIGATION AND FUNDING SOURCE: $14,250,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1993 ESTIMATED COMPLETION DATE: 2004Summary: USAID is working to strengthen the private sector in Macedonia; and the banking system at the National Bank level, and in several of the commercial banks. USAID is also providing alternative financing resources to businesses through micro lending, equity capital, and the establishment of rural credit unions.USAID provides technical assistance to Macedonia in the areas of enterprise development, legal and accounting reform, and financial sector reform. Consolidation of political power and an anticipated reshuffle of pertinent Ministerial positions following the recent presidential elections, could increase political will to effect private sector reform.
Key Results: Principal results include: 1) improved transparency of businesses which will attract domestic and foreign investment; 2) an increase in available sources of financing which will allow businesses to invest and expand; 3) development of the necessary legal reforms which will create a level playing field, increase transparency in the legal system, and establish the rule of law for businesses; and 4) improved management skills so managers can better take advantage of market opportunities.
Performance and Prospects: Despite the collapse of trade with Serbia, and potentially serious follow-on effects from the Kosovo crisis, Macedonia maintained macroeconomic stability in 1999. The value of USAID technical assistance to the private sector was evident in 1999 when the Kosovo conflict impacted the Macedonian economy. USAID continued providing technical assistance to Macedonia in the areas of enterprise assistance, legal and accounting reform, and financial sector reform during the very difficult mid-year period. Banks continued to operate despite low liquidity, over-regulation, and a lack of effective collateral legislation. Several of our implementers were able to address specific issues that arose from the crisis, such as the business center’s facilitating nearly 100 trade deals valued at $13 million.
Existing plans to assist a local meat and dairy NGO in implementing a Seal of Quality (SOQ) program – in order to alleviate existing marketing constraints, improve domestic consumption and improve the profitability of the agribusiness sector – proved crucial to increasing profits and generating employment. This SOQ program complemented a Government of Macedonia-initiated, "Made In Macedonia," promotional campaign. These successes in trade and investment development warrant a more focused activity to provide technical assistance. USAID initiated a World Trade Organization accession assistance activity that helped the government complete the application process for accession. USAID is cooperating with other countries in the region to identify and remove barriers to regional trade.
USAID’s efforts to increase access to financing also proved successful in 1999. A micro lending activity made over 1300 loans and opened its third office. The Small Enterprise Assistance Fund (SEAF), equity fund, made five investments in 1999. The first rural savings house was opened to increase rural access to credit. Responding to high unemployment, officially at 40%, USAID supported the U. S. Department of Labor-implemented, labor redeployment activity to improve worker access to micro lending and business development resources, and assist in local economic development. This type of program was successful in Hungary, and is being implemented in Macedonia as a complement to the community self-help program under the citizens’ participation objective for Macedonia.
Macedonia leads the region in accounting reform in large part due to USAID’s assistance. The country has adopted international accounting standards (IAS), and is moving towards IAS implementation in the banking and enterprise sectors. USAID has continued to provide assistance in training, self-regulatory capacity development, licensing and certification requirements reform, and IAS-compliant accounting systems conversions. Support for accounting and regulatory reform is the backbone of a new banking activity slated to start in January 2000. This activity will assist in streamlining the central bank’s regulation of the commercial banking sector. Other financial sector reform work focuses on the development of the Government of Macedonia’s ability to regulate its securities market, and streamline the tax collection and information technology systems through U.S. Treasury Department assistance.
Possible Adjustment to Plans: None identified at this time.
Other Donor Programs: USAID programs are highly coordinated with other donor activities. The World Bank is developing a Financial and Enterprise Stabilization Assistance Loan (FESAL) to help Macedonia stabilize balance of payments. Several World Bank loan conditionalities are based on USAID activities, primarily in the financial sector. In addition, the World Bank and European Union (EU) are funding significant work on reforming the payments system, which augments USAID’s work in the banking and capital markets areas. The European Bank for Reconstruction and Development, the IFC, and the DEG (German government investment agency) have contributed an additional $9 million to the USAID, SEAF Equity Fund. EU activities partially complement USAID efforts in accounting and banking. The German and Dutch governments are also active in providing funds for small businesses, and in areas of community development.
Principal Contractors, Grantees, or Agencies: Crimson Capital; Land O'Lakes; DAI/Price-Waterhouse-Coopers; Booz-Allen and Hamilton; Agricultural Cooperative Development Institute/Volunteers in Overseas Cooperative Assistance; American Bar Association/Central and East European Law Institute; International Business and Technical Consultants; Wold Council of Credit Unions; Carana; Financial Services Volunteers Corps; and Opportunity International. USAID also has interagency agreements with U.S. Treasury and the U.S. Department of Labor.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Private Sector share of GDP (%)
35% (1994) 45% 46% 50% 52% Foreign investment (annual)
$36M (1995) $122M $30M $140M * Increase in tax receipts from base year
0 (1997)
16% 5% 20% 15% Exports/GDP 41% (1995) 45% ** 50% * Full-time Employment in Private Sector*** 191,439(1996) 201,319 152,000 160,000 170,000
EBRD Ranking for Implementation and Enforcement of Commercial Laws
**** 2.75 3.0 3.5 4
__
* No FY 20001 projections available from the Government of Macedonia.
** This indicator will not be reported in the next year’s Congressional Presentation..
*** The new Government in 1999 adjusted Statistics on employment in the private sector downward significantly. It is hoped the level will stabilize and begin to show increases, reflecting the growth of Private Sector share of GDP.
**** The actual for 1998 is the baseline value given that this is a new indicator, and 1998 is the first year in which data was collected.
ACTIVITY DATA SHEET
PROGRAM: Macedonia
TITLE AND NUMBER: Increased, Better-Informed Citizens' Participation in Political and Economic Decision Making, 165-021
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $7,650,000 SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $7,650,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1993 ESTIMATED COMPLETION DATE: 2004Summary: Building a sustainable foundation in democracy requires the development of bottom-up mechanisms that provide the means for people to influence public policy, push for transparency and accountability in government, and reinforce a system of checks and balances. At the same time, it requires the development of effective, accountable and transparent governmental institutions capable of reaching out to citizens and ensuring that their needs and interests are represented and accounted for in political and economic decision making. USAID’s democracy assistance has focused on strengthening the fledgling democratic institutions, both governmental and civil society, and the development of democratic practices to support a truly participatory democracy.
Key Results: A field review in early 1999 led to identification of a provisional, new framework for this objective that has not been formally approved. Pending formal agency review in 2000, anticipated key results for this objective include: (1) strengthened civil society organizations (CSOs); (2) citizens are better informed about their rights and responsibilities; (3) strengthened political and parliamentary systems to better serve the needs of citizens and to enhance deputies communication with their constituency; and (4) effective, sustainable intermediate support organizations are in place.
Performance and Prospects: Civil society organizations (CSOs) such as non-governmental organizations (NGOs), political parties, trade unions and media are the key mechanisms through which and by which citizens can identify their interests, negotiate conflicts and have an impact on government policy. CSOs are also mechanisms for forging cooperation at the grassroots level, across ethnic lines, on issues of mutual interest, a first step in creating tolerance and understanding among the different ethnic groups living in a community. The Democracy Network Program (DemNet), implemented through the Institute for Sustainable Communities (ISC), is building the capacity of NGOs to serve as a forum for citizen involvement in community decision making and to strengthen participatory democracy. Through grants, training and technical assistance, ISC is working intensively with a core group of 27 NGOs to strengthen organizational, managerial, and advocacy skills to serve as models and mentors for other Macedonian NGOs. The DemNet will double the number of NGOs in its network in the coming year. This expansion is being funded with FY 1999 SEED supplemental funds, and will be directed at NGOs working in communities affected by the Kosovo crisis.
Following the passage of a progressive, new NGO law in 1998, the International Center for Not-for-Profit Law has continued its cooperation with key government officials and local NGOs to improve the legal and operating environment for indigenous NGOs by building local capacity to effectively implement the new law.
Facilitating local models which provide people with the ability to effect positive change will be key, and replication through role models, local-level NGOs and local governments will strengthen the democratic mechanisms for bottom-up input. USAID, through the Office of Transition Initiatives, is using FY 1999 SEED supplemental funds to launch the new, Community Self Help Initiative (CSHI). This mechanism for mobilizing community-level activity through small grants will address the most immediate economic and social needs of communities affected by the refugee crisis earlier this year. Under the CSHI, communities will undertake a process of identifying, prioritizing, and implementing micro-projects to contribute to community services, small infrastructure improvements, employment generation and economic recovery.
Political parties have benefited from USAID-funded training as illustrated by the polling and voter outreach techniques they employed in the last national elections. The National Democratic Institute has expanded its assistance to the parties to include work in parliament on: (1) caucus development; (2) constituent relations; and (3) information research and analysis. At the request of the parliament, assistance will be broadened to improve parliamentary independence, particularly through the development of rules of procedure and the functioning of committees.
Through two discrete activities, Search for Common Ground (SCG) is combining support for strengthening media with an effort to use media as a tool in conflict prevention and reconciliation. Working with ten local television stations, SCG provided training as well as technical and financial support for the production of a documentary series on indigenous methods of conflict resolution and prevention. USAID funded SCG’s collaboration with Children’s Television Workshop to create a weekly TV series, called Nashe Maalo (Our Neighborhood). The series taught conflict resolution to children aged 7-12 in multi-ethnic communities. We are requesting additional funding to continue this series for two more seasons.
A multitude of new broadcast media outlets have sprung up in Macedonia since its independence in 1991. Few, however, are providing real news and information, and the coverage among those that do is clearly split along political and ethnic lines. An independent media provides an important check on the actions of government and provides citizens with the information they need in order to make informed decisions and participate fully in democratic processes. Development of effective media associations is also a priority because journalists lack any means to address politically motivated actions or impact media legislation. USAID will be launching a new media assistance activity to improve the professionalism of Macedonia’s media by increasing their ability to provide balanced coverage of the issues in the country, and provide citizens with accurate information on which to base their decisions.
Under has provided for Catholic Relief Services (CRS) to provide -- through its Civic Education Project -- the knowledge and skills Macedonian citizens need to be citizens in a democratic society and to teach the next generation to do this independently of ethnicity, religion, and economic status. CRS is working with the Ministry of Education, the National Parents’ Association (NPA) and other partners to introduce civic education in primary schools. The civic education curriculum for grades Kindergarden to fourth will be introduced on a pilot basis in 120 primary schools throughout Macedonia starting in 2000.
Possible Adjustments to Plans: New opportunities have arisen for working with national level governmental institutions to strengthen their ability to respond to the needs of citizens, to govern responsibly and effectively and to promote transparency and accountability. USAID has been asked by the new President to provide assistance in setting up his office, to help establish the necessary organizational, informational, and communication systems to ensure a smooth transition and a well-functioning cabinet. USAID is prepared to support such requests as a way to support more democratic governance practices and to increase public confidence in government.
Other Donor Programs: Donor assistance in this area has been rather limited. Except for well-coordinated assistance from the Dutch and minor amounts from the British Know How Fund, the United States largely has the field to itself. In 1999, the World Bank started an NGO small grant assistance program, and several of the humanitarian donors started to cooperate more closely with local NGOs during the Kosovo crisis.
Principal Contractors, Grantees or Agencies: Current grantees and contractors include International Center for Not-for-profit Law, Institute for Sustainable Communities, National Democratic Institute , Search for Common Ground, and Catholic Relief Services .
Selected Performance Measures:
Baseline (1998)
Target
(1999)Target
(2000)Target
(2001)NGO Sustainability Index*
4.4 4 3.6 3 Number of political parties in Parliament with a functioning caucus
0 0** 4 6 *The USAID Sustainability Index uses a seven point scale, to facilitate comparisons to the Freedom House indices, with 7 indicating a low or poor level of development and 1 indicating a very advanced NGO sector. Five different aspects of the NGO sector are analyzed in the Index: legal environment, organizational capacity, financial viability, advocacy and the public image of NGOs
**As the assistance to support the development of functioning caucuses in the Parliament only began in 1999, an increase in the number of political parties with a functioning caucus is not expected until 2000.
ACTIVITY DATA SHEET
PROGRAM: Macedonia
TITLE AND NUMBER: More Effective, Responsive and Accountable Local Government, 165-023
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $2,255,000 SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,255,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: 2004Summary: This objective addresses one of Macedonia’s most urgent issues, decentralization of governance. As local governments are delegated more responsibility from central government, they must have the ability to respond to citizens’ needs, provide better services, and be accountable for their decisions and actions. Stronger local governments are more capable of identifying and addressing development opportunities, generating and managing resources, and lobbying central government to create an enabling legal environment. This objective encompasses two activities. One, the Environmental Action Program, is ongoing. The other, Local Government Reform Project (LGRP), the major activity for this objective, is just starting.
LGRP will include five main tasks: facilitating policy reform, improving municipal management, building public participation in local governments, strengthening local government associations, and developing continuing education and training programs. FY 1999 SEED supplemental funding of $1.5 million will particularly target areas affected by Kosovo refugees, placing emphasis on short-term interventions to improve crisis management and municipal service delivery, and build inter-ethnic consensus on decisions in municipalities.
The Environmental Action Program activity will provide funds and technical assistance to local government developments for small infrastructure projects in municipalities. It will also strengthen the Government of Macedonia’s Fund for Environmental Protection and Promotion (Environmental Fund), creating a transparent financial institution that will identify and package bankable environmental projects. Currently, the Fund is mainly generating resources from automobile registration taxes. This activity will start addressing the environmental consequences from the influx of refugees caused by the Kosovo crisis, by co-financing selected projects in the most affected areas. FY 1999 SEED supplemental funds, totaling $2.5 million, will target assistance to areas where infrastructure is most at risk as a result of the Kosovo crisis.
Key Results: The result framework for this objective has not been formally approved, and is provisional pending formal Agency review in 2000. Anticipated key results include: (1) clearer delineation of local and national government roles and responsibilities; (2) a coherent system of local finances established; (3) improved channels for the expression of popular input into local service delivery; (4) strengthened local management capacity; (5) strengthened advocacy by municipal associations and networks.
Performance and Prospects: During 1999, specific policy recommendations, detailed plans for developing central-local, government relations, and guidelines for implementing actions at both levels of government were developed. These recommendations were used as the basis for developing and designing LGRP. Macedonian local government partners (Ministry of Local Government and several mayors) were engaged in designing this new activity. A key step will be implementation of reforms that delegate more fiscal authorities to local levels. Two workshops were organized in 1999 to discuss local government reform, and to get input from the local level. Participants from these workshops selected a representative task force of local officials – mayors, relevant ministry officials, municipal association representatives and other experts. This task force
has worked intensively on changes in the existing local government legal framework, completed the first draft of a new legal framework.
Through building the capacity of the Environmental Fund, a transparent financial and self-sustainable institution is being developed. Technical assistance has been provided to make the legal environment more supportive, including help in drafting a law that will allow the Fund to be established as an independent institution that can give loans. Assistance has also provided drafts of an overall financial strategy for the Fund, including the establishment of the "Polluter Pays Principle" as a major revenue resource for the Fund. A set of training workshops were held to enhance skills of local officials in identifying and prioritizing community problems, and finding possible resources for addressing these issues,
Given the lack of knowledge and skills of local government personnel to apply management and service delivery techniques, assistance efforts will be initially targeted to several municipalities. When successful models are developed, these will be replicated. Emphasis will be placed on the use of national and local associations to interact and network effectively to strengthen these important local and regional democratic institutions.
Possible Adjustments to Plans: The Macedonian Government has announced plans for restructuring. This may affect the relevant ministries that this program is dealing with. Additionally, local elections are scheduled for next fall. USAID is tracking the above mentioned events to minimize any impact on program activities.
Other Donor Programs: USAID maintains close coordination with other donors. The European Union’s (EU’s) technical assistance program in Europe, PHARE, is currently involved in public administration reform, and is planning to start a new local government activity in the second half of the year 2000. USAID will coordinate closely with the EU to avoid activity overlap and ensure that synergies are developed between the activities. The United Nations Development Program is mainly addressing the environmental sector and building local government capacity. The United Nations Office for Project Services (UNOPS) has received funding from Italy to implement local municipality strengthening and institute a small credit fund. This activity is expected to begin around March 2000 and will also be coordinately closely with the Local Government Reform Project.
Principle Contractors, Grantees, or Agencies: The Urban Institute carried out the assessment study for LGRP. Chemonics International is the main implementer for the Environmental Action Program Support activity. Development Alternatives Inc. has been awarded the contract to implement the LGRP.
Selected Performance Measures: Performance indicators and targets are being developed currently.
EXPLANATION FOR SPECIAL INITIATIVES and CROSS-CUTTING PROGRAMS
Title: Special Initiatives, 165-041
Planned FY 2000 Obligation and Funding Source: $3,445,000 SEED
Proposed FY 2001 Obligation and Funding Source: $3,445,000 SEEDSummary: This objective includes most 632 (a) transfers to other USG entities. The majority of funding in this objective goes to the State Department for public diplomacy.
USAID activities under this objective meet criteria outlined in Agency guidance for special objectives or interests. That is, they are of limited scope and/or duration and respond to particular windows of opportunity. For USAID/FYRM, these activities generally support court administration and judicial training, antic-corruption and the Kosovo related rehabilitation program.
Title: Cross-cutting Programs, 165-042
Planned FY 2000 Obligation and Funding Source: $2,400,000 SEED
Proposed FY 2001 Obligation and Funding Source: $2,400,000 SEEDSummary: This objective is designed to accommodate activities that make significant contributions to more than one objective. The activities included in this objective for FYRM are the participant training program, and program development and support activities.
 |
|||
Last Updated on: February 01, 2001 |
