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Rural poverty approaches, policies & strategies in the Republic of Macedonia

While Macedonia does not have a Poverty Reduction Strategy Paper (PRSP) or a National Development Strategy, the Ohrid Agreement of August 2001 and the Stabilization and Association Agreement (SAA) with the European Union (EU), which was signed in April 2001, together form a strong, country-owned framework for the development agenda. The Ohrid Agreement provides the political framework for social cohesion. But the agenda is complex, and implementation requires overcoming significant economic and political challenges. EU membership is an overarching long-term goal, and the SAA provides strong incentives for overcoming political differences that have hindered economic reform in the past. The SAA calls for gradual harmonization of Macedonian laws and institutions with those of the EU, as well as for specific timetables for the reduction of trade barriers between Macedonia, the EU and other SAA countries.

The government sponsors a range of social protection programmes for poor rural people, including public health care and education systems and a social assistance system for the unemployed. To revitalize and develop rural areas, the government established the Agency for the Development of Underdeveloped Regions (ADUR) in 1994. ADUR and IFAD work together as active partners.

ADUR assistance to poor rural areas includes investment financing for public works and new enterprises, special interest and livestock insurance rates on production credit, financial and technical support for national specialists, and financial support for employment generation in poor areas.

The government’s policy for rural development focuses on:

• developing the full potential of the agricultural resource base
• increasing rural incomes on a sustainable basis by improving small-scale farmers’ production and productivity
• establishing wholly private financial services and input supply and support services
• minimizing public expenditure
• raising profitability, quality and value added to agricultural production, particularly for exportable products
• actively working towards harmonization with and accession to the EU

Source: IFAD