Friday, July 01, 2005
An Evaluation of FYR Macedonia’s Investment Climate
By: The Enterprise Research Institute
For: The World Bank, 2003
Over the last decade, the Former Yugoslav Republic of Macedonia (FYR Macedonia) has seen turmoil and upheaval. It experienced recession, political embargo and border closures, disruptions from the Kosovo conflict, two severe winters and a drought, and internal conflicts in 2001. Not surprisingly, FYR Macedonia has struggled to stimulate economic growth. The insecurity created by these events together with the uncertainty generated by confusing and conflicting domestic policies has added to the difficulty of doing business in the country and has had a strong negative impact on business. However, the new government that came to power in November 2002 has made a strong commitment to improving the investment climate. Several new initiatives have been launched and the initial reaction from the business community has been positive. These are welcome steps - sustainable economic growth can only come from the private sector and issues related to the business environment (investment climate) are central to putting the country on the road to long term prosperity. This paper examines the factors that affect business activity in FYR Macedonia and identifies some of the key constraints to businesses. The paper concludes with suggestions for further investigation together with recommendations that could help improve the investment climate.
For: The World Bank, 2003
Over the last decade, the Former Yugoslav Republic of Macedonia (FYR Macedonia) has seen turmoil and upheaval. It experienced recession, political embargo and border closures, disruptions from the Kosovo conflict, two severe winters and a drought, and internal conflicts in 2001. Not surprisingly, FYR Macedonia has struggled to stimulate economic growth. The insecurity created by these events together with the uncertainty generated by confusing and conflicting domestic policies has added to the difficulty of doing business in the country and has had a strong negative impact on business. However, the new government that came to power in November 2002 has made a strong commitment to improving the investment climate. Several new initiatives have been launched and the initial reaction from the business community has been positive. These are welcome steps - sustainable economic growth can only come from the private sector and issues related to the business environment (investment climate) are central to putting the country on the road to long term prosperity. This paper examines the factors that affect business activity in FYR Macedonia and identifies some of the key constraints to businesses. The paper concludes with suggestions for further investigation together with recommendations that could help improve the investment climate.