Sector fiche – IPA National programmes / Component I
(Maximum 25 pages / 1500 characters no space per page)
1.
IDENTIFICATION
Title
MIPD Sector Code
ELARG Statistical code
DAC Sector code
Total cost
(VAT excluded)1
EU contribution
Management mode
Decentralised mngmt:
Responsible Unit or
National
Authority/Implementing
Agency(ies)
Implementation
management
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Sector support plan on private sector development
3. Private Sector Development
Measure 1: Institutional capacities and competitive business
environment
Measure 2: Increasing market and production efficiency
Measure 3: Markets sophistication, innovation and access to
finance
See IPA programming guide par 7.7 – 1 code per Measure
Measure 1: Institutional capacities and competitive business
environment
Measure 2: Increasing market and production efficiency
Measure 3: Markets sophistication, innovation and access to
finance
See CRIS DAC Form
9.500.000 EUR
7.940.000 EUR
Decentralised
The Central Financing and Contracting Department (CFCD) will
be the implementing agency and will be responsible for all
procedural aspects of the tendering process, contracting matters
and financial management including payment of project activities.
The Head of CFCD will act as the Programme Authorising
Officer (PAO) of the project.
Contact:
Mrs. Radica Koceva (PAO)
Central Finance and Contracts Department
Ministry of Finance
Tel: +389 2 3231 219
Fax: +389 2 3106 612
e-mail: radica.koceva@finance.gov.mk
Lead and Coordination Institution is the Cabinet of the Deputy
Prime Minister in charge for economic affairs and coordination of
economic sectors ie. the General secretariat of the Government of
the Republic of Macedonia- Sector for economic policy and
regulatory reforms
Other beneficiaries:
1. Ministry of economy
2. Ministry of finance
3. Institute for standardisation of Republic of Macedonia
The total cost should be net of VAT and/or of other taxes. Should this not be the case, clearly indicate the
amount of VAT and the reasons why it is considered eligible.
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4. Bureau of metrology
5. State Statistical Office
6. Supervision Insurance Agency
7. Macedonia bank for promotion of development
8. Inspectorates in Macedonia
9. Supervision Insurance Agency
10. Macedonia bank for promotion of development
11. Inspectorates in Macedonia
12. Clusters.
13. Economic subjects: companies, research and development
organizations, universities, trade companies, chambers,
innovation centres, technology transfer centres,
technology parks, civic associations whose main activity
is based on innovation and technical advancement and
other individuals who exercise activities in the field of
technological development.
Implementing modality Projects
Zone benefiting from Nationwide
the action(s)
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RATIONALE
2.1 LINKS WITH NATIONAL SECTOR OBJECTIVE(S) AND MIPD SECTOR OBJECTIVE(S)
The area of private sector development is a complex category and specified priority field of
intervention that requires well-coordinated national measures and actions in several areas
focused on achieving the objectives of the national strategic priorities. As a main starting
relevant point for creating links with MIPD Sector objective(s) is the economic part of the
Government programme. The Economic agenda of the Government stress out important and
relevant measures, activities and project aimed to improve private sector development. The
strategies, programmes and action plans that make correlations between Economic agenda of
the Government and MIPD sector objectives can be summarized as the follows:
- MIPD sector objective in increasing the standard of living of the citizens and to secure
the physical and human capital necessary for the development of the country is
accordingly addressed through the national objective to support the private sector of
the country to increase the economic growth and competitiveness on a permanent
basis, achieving higher rate of employment, higher living standard and quality of life.
Moreover, the adoption of the Action plan for combating unemployment and the
Government commitment for attracting foreign investments are linked mainly with the
increasing the standard of living of the citizens.
- Ensuring the country’s readiness to cope with competitive pressures and internal
market forces within the EU is yet another national objective. In reaching its
aspirations for EU membership, the country is dedicated to direct its economy on
principles of macroeconomic stability, human and physical capital endowment,
enterprise restructuring, increase in investment rates of domestic and foreign
companies, boosting the national competitiveness and economic integration to EU.
- As MIPD indicates that the overall economic and business environment in the country
remains rather challenging. This is also recognized by the Government as a necessary
need of taking comprehensive join action from government institutions and all
stakeholders. Related to this the government adopted Action plan for competitiveness
that includes measures for improving the competitiveness of the national market and
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business environment. The main goal of the Action plan is to give strategic guidance
for join action of state, private and public sector in creating and establishing
sustainable innovation and high technology related society. Thus will lead to better
ranking of the country by the World Economic Forum (WEF) global competitiveness
report.
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Enabling good business environment requires continuous monitoring and improvement
of existing national tax legislation. Thus, the realization of the reforms in the tax area
will continue in the forthcoming period. Also, the EU Directives related to taxation are
the documents that triggers the need for appropriate changes in domestic legislation.
Especially, the value added tax is among the priorities aimed at achieving full
harmonization and accession of the integrated European market. This is in line with the
EU aim with its support to get improvements in the field of taxation, both at central
and local level identified in the MIPD.
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Productivity and investment rates of domestic and foreign companies should increase
the development of SMEs and an economy based on knowledge and innovation. For
this, the Government set as national objective to achieve an efficient system for
providing access to finance to SMEs, providing active policies in boosting the R&D
and innovation in companies, as well as implementation of best practices and policies.
-
Reinforcement of capacities displayed by the institutions involved in the
implementation of all horizontal framework legislation (standardisation, accreditation,
metrology, market surveillance, etc.), is reflected through numerous activities
undertaken in the areas of quality infrastructure institutions capacity building to
implement MSTQ legislation inclusive of the Old Approach' product legislation and
product legislation under the 'New and Global Approach', as well as building the
capacity of the market surveillance authorities in order to overcome their limited
human and financial capacities to conduct comprehensive checks on technical
compliance of products.
-
Strengthening of the Internal market integration, the Metrology, Standardization,
Testing and Quality (MSTQ) including Market surveillance authorities plays a key role
in establishing an adequate quality infrastructure in order to provide adequate support
to the business community. As the country is progressing with the integration with the
EU internal market, a broad range of rights for the consumers and obligations for the
country are arising. The rights include safety, security, health and access to
information. Obligations include protecting the environment and respecting the safety,
property and privacy of others. Quality infrastructure is the tool that helps the country
to exercise these rights and obligations.
-
Supporting the improvement of official statistics– providing relevant and
internationally comparable statistical data is in function of realising the Government’s
priorities to build strong, sustainable and competitive private sector, and on the other
hand, it is in function of ensuring continuity in the quality of the work of SSO and
supporting the Office in the production of higher-quality services in the future. Taking
into consideration that the official statistics has very significant role in the Stabilisation
and Association Process, the harmonisation of statistics with EU standards and rules
have to be implemented in the pre-accession period.
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2.2
(1)
MIPD recognizes that further harmonisation with EU legislation in the field of
financial services is one of the objectives of EU assistance in the process of alignment
of the regulatory systems (legislation and related enforcement) with the acquis in order
to be able to fully participate in the internal market at the time of accession. This
corresponds to the Government's efforts to improve the existing regulation governing
the establishment, operations and obligations of all insurance sector participants in the
country aimed at increasing competition in the insurance market with the entry of new
companies and expanding the supply of insurance products and services.
SECTOR ASSESSMENT – POLICIES AND CHALLENGES
National sector policy, strategy and context.
Regarding the national sector policies and strategies, in the area of Private sector development,
the following documents have been drafted and adopted:
- Action Plan for improvement of the Competitiveness of the Republic of
Macedonia, which stressed out the action for improving the efficient goods’ markets
and labor markets, financial markets, the knowledge acquired in the higher education
and specialized trainings, as well as the access to the state-of-the-art technologies and
promote of innovation, research and development and transfer of know-how.
- Industrial Policy of the Republic of Macedonia 2009-2020 with which all process of
conducting the industrial policy in order to accomplish appropriate level of economic
growth is set on systematic and organizational scale;
- Programme for the Development of Entrepreneurship Competitiveness and
Innovation of the Small and Medium Enterprises 2007 – 2010; with which all
measures and activities are planned and exercised in line with European practices and
policies and most notably small business act for Western Balkan countries;
- Revised National Development Strategy for Small and Medium-Sized Enterprises
2012 – 2013;
- National Strategy for the implementation of Extensible business reporting
language with in which a unified standard and aprorpriate network of authroities is set
up in order to promote and use of single worldwide recognized standard for financial
and business electronic reporting;
- Innovation Scoreboard for Macedonia with which regular comparison of national
innovation capacity is measures vis-à-vis EU members and candidate members.
- Innovation Strategy with which full set of actions, measures and activities is put in
line with primal objective of development of innovation as crucial pillar of national
competitiveness;
- Programme for Development of Entrepreneurship, Competitiveness Innovation of
Small and Medium-Sized Enterprises 2011-2013;
- Programme for Stimulating Investments (to be approved by the end of 2011) with
which country\s policies measures and instruments are planned in order to achieve
higher level of FDI in domestic economy;
- SSO Strategy with which the full capacity development of SSO in line with EU acquis
is programmed.
(2) Sector and donor coordination.
Taking in consideration the needs of Macedonian business sector for more competitive market
opportunities, more efficient economy structure and better access to finance, the Government
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decided to include the priority of business environment, competitiveness and innovation as
one of the several areas of crucial importance for the country’s development. A working group
was formed under the guidance of the Cabinet of Deputy Prime Minister in charge for
economic affairs, which undertook comprehensive and detailed analyses of the last Global
Competitiveness Reports of the World Economic Forum. The analyses pointed out the most
critical areas in which the need of undertaking an action is more than obvious, like labor
market efficiency, technological readiness and innovation, business sophistication and access
to finance.
In accordance with the finding of the analysis the package of over 70 measures was created.
The main aim during the process of designing of the measures was to involve the private
sector and all relevant institution and bodies. Thus came out as a need from the results of the
analysis which very clearly showed that not only governmental and state institution but, as
well the private institution should take actions for improving the competitiveness of
Macedonian markets and economy. Therefore, chambers, clusters, relevant non governmental
organization, educational and scientific institution, and other relevant stakeholders were
consulted in giving their suggestion and opinion. Finally, the Government adopted an Action
Plan for improvement of the Competitiveness of the Republic of Macedonia and formed
National Council of Entrepreneurship and Competitiveness which will ensure the
implementation of the action plan.
(3) Sector budget and medium term perspective.
The budget remains balanced and relatively modest (at around 34 percent of Gross Domestic
Product (GDP)) that over the years helped keep aggregate demand manageable and avoided
crowding out financing for the private sector. In response to a global financial crisis collapse
in demand for exports and reduced private capital flows, fiscal policy turned countercyclical
while monetary policy was tightened to alleviate reserve pressures. As a result, in 2009 output
contracted by only 0.5 percent, the fiscal deficit was 2.6 percent of GDP (among the lowest in
Europe and Central Asia) and the current account deficit narrowed from 2008 by 4.2
percentage points to 8 percent of GDP. The impact of the crisis on living standards also
appears to be moderate. Monetary policy also responded adequately to price and foreign
exchange market developments. As a result, inflation was low and stable, government debt fell
to below 21 percent of GDP while at around 48 percent of GDP external debt remained
moderate. Structural reforms were also advanced. Fees and charges were reduced,procedures
eliminated, and labor relations overhauled, while reforms in the judiciary and cadastre
improved creditor and property rights. Tax policy and administration reforms reduced the
fiscal burden while strengthening public finances. Sound banking regulation and supervision
contributed to keeping risks manageable while stronger competition reduced the cost of
finance.
The past three years (2008-2010) showed sizeable fiscal stimulus in line with sustainable
liquidity and longer-term solvency indicators. As in neighbouring countries, budget revenues
fell from 33.1 percent of GDP in 2008 to 31 percent in 2009. The Government responded by
trimming expenditures to meet the deficit target plus additional measures were taken to
mitigate the impacts of the crisis, including extending profit tax exemptions, implementing a
major payroll reform, and supporting access to finance for small and medium-size enterprises
(SMEs) by securing a credit line from the European Investment Bank (EIB) in the amount of
100 million Euro. The National Bank tightened policies to stop the outflow of foreign
exchange reserves and protect the currency peg.
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The 2010 budget deficit has been reduced slightly to 2.5 percent of GDP. In fact, cuts to wages
and services have made room for higher subsidies, transfers, and investments. With revenues
underperforming at the start of 2010, the Government adopted a supplemental budget in June
2010 cutting expenditures by around 1.2 percent of GDP to meet this revised target for the
year. Since end-2009, the Central Bank has gradually reduced the intervention rate from 9 to
4.5 percent, and credit to the private sector has picked up somewhat. Exports and Foreign
Direct Investment (FDI) recovered modestly as major trading partners returned to growth
(with the exception of Greece).
General government debt is projected to peak at 29 percent of GDP by 2012. Most debt is in
favourable longer-term loans to the public sector or FDI-related transactions and small
exposure to wholesale financing. No major deterioration in debt servicing indicators is
expected.
In the medium term perspective, as according to the Country partnership strategy (World Bank
Macedonia (2011-2014) it is expected that IFC will invest up to US$100 million in the private
sector in Macedonia over the next four years and also plans to leverage its advisory services to
secure private financing for new hydro-power generation, wind farms, road operation and
maintenance, water supply, health and solid waste management.
http://www.finance.gov.mk/files/u9/1_MKindikatori_Oktomvri_2011_angl_za_web.pdf
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(4) Sector monitoring system.
The national strategic documents define scope of the results and indicators foreseen for
achievement through comprehensive set of activities. The overall framework for monitoring
implementation of sector policies and strategies is a responsibility at the level of ministry and
of different coordinative bodies and working groups with ensured representation from relevant
stakeholders.
During the past years different EU coordinative mechanisms were developed. The level of
alignment of the national legislation with the European legislation is regularly monitored
trough the 35 working groups (WG) per chapters for preparation of the National program for
the adoption of the EU legislation (NPAA), among which the WG’s on Chapter 2 “Economic
criteria”, and other chapters which involve the financial and economic parameters. The NPAA
is revised annually and the implementation of the activities is monitored on a regular basis.
In addition, the Progress Reports and the Information’s assessing the achievements and the
progress made against certain issues with regard to the accession criteria and/or SAA
implementation measures can be perceived and used as monitoring instruments thereto.
Moreover, the implementation of obligations under the SAA is being followed in the
framework of the Stabilization and Association Committee and the respective Sub-Committee
on Economy and Financial and Sub-Committee on trade industry customs and taxation
presided on the Macedonian side by the Ministry of finance and with active participation of all
responsible institutions.
Aside from the afore noted monitoring elements and mechanisms, the sectoral monitoring
system is ensured trough the monitoring of the fulfilment of the Action Plan for improvement
of the Competitiveness, Action plan for combating unemployment, Strategy for industrial
policy, Strategy for innovation, Strategy for SMEs and other relevant strategic documents.
In addition, the sectoral activities which have been supported through IPA assistance are being
monitored both at project level (line institutions, CFCD, NIPAC), but also on a programme
level in the framework of the IPA Component 1, 3 and 4, within the framework of the IPA
Sector Monitoring Committees and IPA Joint Monitoring Committee.
(5) Institutional setting
The institutional setting envisages the Cabinet of the Deputy Prime Minister, ie. The General
Secretariat of the Government of the Republic of Macedonia- Sector for economic policy and
regulatory reforms as key beneficiary and the following potential beneficiaries:
- Ministry of economy
- Ministry of finance
- Institute for standardisation of Republic of Macedonia
- Bureau of metrology
- State Statistical Office
- Supervision Insurance Agency
- Macedonia bank for promotion of development
- Inspectorates in Macedonia
- Supervision Insurance Agency
- Macedonia bank for promotion of development
- Inspectorates in Macedonia
- Clusters.
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Economic subjects: companies, research and development organizations, universities,
trade companies, chambers, innovation centres, technology transfer centres, technology
parks, civic associations whose main activity is based on innovation and technical
advancement and other individuals who exercise activities in the field of technological
development..
The Institutions above are considerably strengthen in their human resources capacity in recent
years, building the capacity to acknowledge the challenges in the specific sectors, to learn and
track the new policies and measures on a EU level in the specific domains, undergone
trainings, working under different technical assistance programs and increase their awareness
for the key drivers of the economy. However, the systematic approach in creation of
organizational behaviour within the institutions in time of innovation and more competitive
environment, insufficient experience to analyse, evaluate, create and implement adequate
measures to improve the overall competitiveness in the particular economic sector, lacking of
continuous and sustainable cooperation with private sector in addressing the weaknesses,
bottlenecks and need to support the private sector development and transfer of know- how,
require high level of assistance to fill in the gap and enable on midterm a better structure,
organization and performance of the state administration within the institutions and increase
the cooperation and common collaboration in solving the barriers for competitive business
economy.
(6) Macro-economic context and Public Financial Management.
Out of the 5 core strategic objectives of the Programme of the Government of the Republic of
Macedonia for the period 2011 - 2015 year are the following:
- Increasing economic growth and employment as a prerequisite for achieving the
standards of living and better quality and better life for Macedonian citizen;
- Investing in education, science, research and development and information technology
as elements of the knowledge-based economy;
- Macroeconomic and fiscal policies.
The global economic crisis, which caused the biggest contraction of the world economy in the
last 80 years, inevitably led to decline in the economic activity in the Republic of Macedonia
as well. The first negative effects were visible in the last quarter of 2008 and had a significant
impact the following year on the GDP. Consequently in 2009 the first decline (-0.8%) in
economic activity and GDP since 2002 was recorded after excellent performances in 2007
(6.1%) and 2008 (5.0%). However, in the 4th quarter of 2009 the first signs of recovery in the
domestic economy were recorded, when the real growth of GDP was 1.2%. Nevertheless,
2010 showed that the national economy was still characterised by vulnerable surroundings and
low levels of investment confidence. This situation led to an average growth in GDP of 1.8%
2010 and 3.0% in 2011.
The macroeconomic stability is maintained by controlled budget deficit at a moderate level of
around 2% -3% of GDP, which is in function of the realization of significant capital
investment projects, mainly in transport, energy, utility, and health and social infrastructure.
This level of budget deficit will enable maintaining a moderate level of country’s debt. The
Republic of Macedonia is one of the European countries having the lowest level of
government debt as a percentage of GDP.
Increasing economic growth is a top priority of economic policy of the Government of the
Republic of Macedonia. Intensive economic growth is expected starting in 2012, and in the
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period 2012 to 2013 it is expected that GDP growth to be in the range 4.0% -5.0%, while in
the period 2014-2015 GDP growth will reach 5.5 % -7.0%, if no serious external disturbances.
According to the concept of sustainable economic growth and development, the Government
provides:
- Maintain macroeconomic stability as a prerequisite for economic development
- Responsible fiscal policy, maintaining a moderate level of budget deficits and
sustainable levels of public debt;
- Low taxes, social contributions and other taxes to the state;
- Investments for better infrastructure;
- Growth of domestic and foreign investment;
- Further improving the business climate;
- Improve the quality of labor force;
- Fiscal policy will be aimed at supporting economic growth and preservation of price
stability.
Running a responsible and disciplined fiscal policy is the basic principle towards the public
finances and proper use of funds. Therefore, moderation in public spending and restructuring
of public expenditure in terms of increased capital investment remain determination for the
future. Economic modernization of the country is continuously supported by financing of
infrastructure projects: construction of international, regional and local roads, railway
corridors, power plants, gas pipeline systems, power lines, schools, hospitals, residential
construction, sports facilities, water , drainage and irrigation channels and other infrastructure
projects. For optimal funding of these projects, Macedonian institutions will continue to
cooperate with world and European international financial institutions, such as the World
Bank, EBRD, EIB and use funds from European funds.
(7) Sector assessment.
Institutional capacities, business competition - domestic and foreign
The economy of the Republic of Macedonia is in efficiency phase, which means that the
competitiveness is no longer based on the low prices, but rather on the quality of the products
and the increased productivity. In this case efficient goods’ markets and labor markets,
financial markets, the knowledge acquired in the higher education and specialized trainings, as
well as the access to the state-of-the-art technologies are of crucial importance. Since the price
of the labor had also increased with the productivity, then the efficiency of the technological
processes and the quality of the products and services will have to be increased as well in
order to achieve the necessary level of competitiveness of the markets, companies and
products.
The quality of the institutions in the country is of high importance for the existence of private
initiative and entrepreneurial spirit, which in turn leads towards increased investments, new
employments, savings and increased economic growth in the country. The institutions play
key role in the equitable division of the benefits of the economic development in the society.
The owners of capital, regardless of whether their capital is in a form of land, shares, or even
intellectual property, will not be keen to invest in the improvement and maintenance of their
property if their property rights are not secured. The importance of the institutions is not
limited only to the legal systems. More important, the standardization of procedures, as well as
shortening of the time necessary for the provision of services by the institutions needs to
happen. The work directed towards raising the institutional capacities of the local selfgovernment in conditions where the decentralization in the country is on higher level, is of no
less value.
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When it takes to “competition” supporting activities are divided into two subgroups: domestic
competition and foreign competition. In this area, it can be notice that the progress has been
made in the conditions for business start-up, the competitive tax rate and the regulatory bodies,
but, however, there is still insufficient degree of integration of the Macedonian economy into
the global one. It is recommended to strengthen the institutional framework for the protection
of competition and suppression of the gray economy and unfair competition. Moreover,
continuation of the transposition of the European legislation in the economy field policies is
still remaining.
Improvement of the VAT legislation plays a key role in making the business environment
more attractive for the FDI, further economic development and increasing the living standard
of the population. In particular, addressing the issues related to taxation is needed to facilitate
the smoother development of the economic activities, establishing clear rules for companies
and creating favourable environment for running business. Furthermore, full harmonization of
the tax legislation with the EU directives governing this area is necessary for accession in the
single European market. Otherwise, national market will cause distortions due to noncompatibility with the single European market and obstacles to the free movement of goods
and services.
The poor performance in the participation of foreign investors in the domestic economy and
the impact of business regulations on FDI suggests that supplementing policies in this area is
needed. Obviously, the policies directed at promoting FDI are not sufficient. The practice
shows that due attention is needed to issue all permits and licenses necessary for business
start-up after foreign investors come to visit the country. Thus, the extension of the One-stopshop system for investors as a single serves point is becoming more then necessary.
Markets efficiency of labor market, market of goods and services, financial market, and
necessity of access to finance
In the past several years the Government has actively worked on the improvement of the labor
market efficiency and significant competitive advantage has been achieved regarding
flexibility of wage determination, rigidity of employment, hiring and firing practices as well as
in redundancy costs. However, in spite the significant progress that has been achieved with
respect to the labor market efficiency, the unemployment rate remains at a very high level of
around 31%. The high unemployment, and especially the participation of young people causes
high brain drain rates for Macedonian citizens. This has huge adverse effects since the
immigrants leaving the state are highly educated. The major problem for the efficient
functioning of the labor market is the inadequate education that creates situation where the
labor offer is consisted of young individuals at the age of 15 to 25, an age group rarely
demanded by the employers. The active measures for employment will be presented in the
Action plan for combating unemployment which is going to give guidance for cutting the
number and which implementation need support.
The small domestic market, the low purchase power and high concentration of export to a
small number of countries and products of low value added lead to a low competitiveness
position of the Macedonian markets of goods and services, Macedonian companies and
Macedonian economy in general. Having in mind the importance of the size of the country
market for the competitiveness of an economy, the opportunities for improvement of the aria
are limited. Thus lead to a strategic orientation to foreign markets. Namely, certain
improvement of the situation in this area is possible through increase of the foreign trade
volume, with a special accent on export growth, with the aim of reducing the high trade deficit
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of the country. The same would be achieved through entry in new foreign markets,
diversification of the export basket, boost of export of products with greater value added,
encouragement of companies ready to appear on foreign markets so that they can stay there
longer. Thus, it is very important to implement the projects directed towards supporting export
for consulting services (Learning About Export, elaboration of a Feasibility study for entry in
new markets, Voucher for innovations and so on) and for access to favourable financing
(credit lines for export oriented companies with favourable interest rates) and for nonfinancial instruments to support companies.
The second line of actions is through a higher economic growth that would increase the
purchase power and would lead to an increase of the domestic market. In this aspect, access to
loans and availability of financial services need to be improved. The last global economic
crisis has clearly demonstrated the importance of a stable financial and insurance sector for
economic growth, where efficient financial and insurance institutions provide the link between
savings and investments in an economy. In order to improve competitiveness in the area of
insurance market activities should be undertaking, especially in the legislation. As a result of
the dynamic development of the insurance sector, the need for making reforms and progress in
the insurance sector is increasingly evident. This primarily refers to the existing legislation
based on older EU directives which needs to be changed. Namely, the preparation of the new
Insurance Law has become a need which will contribute to the further harmonisation of the
current legislation in the field of insurance. At the moment, the establishment and functioning
of the insurance sector participants (Insurance Supervisory Agency (ISA), insurance
undertakings, insurance brokerage companies, insurance agencies, etc.) is regulated under the
Insurance Supervisory Law (Official Gazette no. 27/2002, 84/2002, 98/2002, 33/2004, 88/05,
79/07, 08/08, 88/08, 56/09, 67/10 and 44/11) which is harmonised with the Solvency 1 regime,
but due to the amendments in the acquis, it should be replaced with Solvency II regime
through transposition in the new Insurance Law and corresponding implementing legislation.
The last element related to improvement of the markets efficiency are the methods for
monitoring of the business variable and statistics that are provided. Taking in consideration
that business statistics have important input for development of national accounts, especially
for development of the economic and social indicators for the development of the society,
including more relevant indicators by sectors of economy, the statistical data are the most
important relevant measurable indicators when it comes to comparing economy variables from
different countries. Therefore, the problem of establishing and developing sustainable methods
to exploit more of administrative statistics to reduce reliance on new sample surveys and also
enhance the scope and coverage of the existing surveys to meet demands is still a challenge
that the country must face. This includes both meeting the legislative, as well as the
administrative capacities requirements.
Sophistication and innovation of the products, production process and companies
Even though significant improvements can be achieved by improving the institutions,
establishment of infrastructure, reduction of the macroeconomic instability, or improvement of
the human capital, these factors in time give reduced yield. The same applies to labour
efficiency, financial and commodity markets. Thus, in the long run, when all these factors give
reduced yield, the standard of living can be improved only with technological innovations.
The less developed countries can improve their productivity by applying the existing
technologies, as well as by small improvements in other areas. The companies have to design
advanced products in order to stay current on the world scene. All this requires an
environment that encourages innovation activities, supported both by the public and the
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private sector, meaning that sufficient investments are necessary in research and development,
especially by the high quality scientific research institutions and simultaneous cooperation
between the universities and the industry supported by a strict protection of intellectual
property.
Technological readiness measures the capability of an economy to absorb the existing
technologies and to increase the productivity of the industries, especially the capacity to
innovate and use innovation in the everyday activities and production processes to increase
efficiency and competitiveness. The exporting companies in Macedonia mainly draw
resources or production (metal and textile) in difference to the developed countries where
companies concentrate on product design, marketing and sales, logistics and post sales
services. When it takes to absorption of technologies and capacity for innovation, Macedonian
economy shows not so good results. Macedonian companies can be characterized as
companies using obsolete methods and technologies in their operations. The small capacity for
absorption or even transfer of new technologies in the production process is evident. The
introduction of new technologies in the companies is at a very low level, and with the global
economic crisis the potential of the companies to invest in new technologies has been reduced
even more.
Regarding this, the Program of the Government of the Republic of Macedonia contains
numerous projects in the direction of providing financial assistance to the companies in the
production systems modernization process through provision of modern equipment and
technology, which implementation need to be assisted. In accordance with the aforementioned,
the implementation of the following projects need support: Equity and Mezzanine Investment
Funds – with the aim of further capitalization and crediting of companies with potential and
need of capital and knowledge, “Vouchers for Innovation” for development of new business
strategies, models, services and products, Strengthening technological cooperation within
clusters, Grants to encourage transfer of technology to increase the capacity of Macedonian
companies to use European funds for innovation, research and development, increasing and
assisting the Technology and Innovations Agency of the Republic of Macedonia (TIARM) –
for institutional support and co-financing of research projects and promotion of the FDI
bringing transfer of technology and creating spillover effect.
Moreover, because of the weak capacity, knowledge and technical readiness, the country is
still not able to fully face the requirements that are deriving from the MTQS area. The country
needs to go through the following changes: make conditions for the enterprises to receive
high-quality services; to support the manufacturers and users of measuring instruments
covered by the Measuring instrument Directive (whose application currently is not quite
correct and also not at the required level); to enforce market surveillance activities in the scope
of Directives 90/384/EEC and 2004/22/EC and in these terms the Bureau of metrology is very
important to ensure fair competition of placing on the market and usage of the measuring
instruments; and to associate the metrological services in the areas of ionizing radiations
metrology and metrology in chemistry that are done by other institutions (such as the Republic
Institute of Radiation Protection and integral bodies within the Ministry for Public Health and
the Ministry of Environment and Physical Planning) to the national metrological infrastructure
designated by BoM. Additionally to this, the requirements in the MTQS area must be also met
in the part of the standardisation, and therefore the national standardisation capacities are still
in need of further strengthening with regards to fulfilment of the condition for full membership
in CEN/CENELEC, active involvement of the business community in the process of adopting
European standards as Macedonian and their implementation, protection of the interests of
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consumers and rising awareness about standardization to the NGO sector, educational
institutions and establishing the certification sector.
Another arising issue in this area is the lack of connections between the business community,
the universities and the state which reflected to unutilized innovations. The link of the
business community with the universities and other scientific research institutions, and the
state will lead to the creation of clusters that will function more efficiently and will meet the
real needs of the market, as in the example of developed countries (Switzerland, Sweden,
Singapore and others).The link between innovations and economic changes is of central
interest. Through innovations new knowledge is created and disseminated and thus higher
economic potential for development of new products and more productive methods of work
are achieved. This progress does not depend only on technological knowledge, but also on the
other forms of knowledge used in the development of products, processes, marketing and
organizational innovations.
Amid economic downturn, as we have in the global economy in the near past, innovations can
help transform the crisis into opportunity. While a large number of businesses cannot afford
further investments in innovations, the Government should encompass the innovation systems,
with all the academic, industrial and public components, as national strategic resources that
have to be protected. In such conditions, government intervention is imminent in order to
prevent reduction of the knowledge base on which more and more economies depend.
3
3.1
DESCRIPTION
OVERALL OBJECTIVE OF THE IPA SECTOR SUPPORT
The overall objective of sector plan on private sector development is to strengthen the
capacities for development and implementation of measures targeted to maintain sustainable
growth, increase competitiveness of the private sector and provide a healthy business
environment for investment, competitiveness based on knowledge and innovation
enhancement, to contribute to the improvement of the internal market in general.
3.2 SPECIFIC OBJECTIVE(S) OF THE IPA
The sector specific objectives are to:
1. Improve the business environment and the institutional capacities in the area of
competitiveness and improving the competitiveness index of the country.
2. Increase the market competitiveness and production efficiency of the companies, as
well as improving the market sophistication, innovation and access to finance.
3.3
RESULTS
Measure 1: Institutional capacities and competitive business environment
Operation 1.1: Capacity building of the institutions
Results:


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Administrative data system which will produce administrative data suitable for statistical
purposes, as it is laid down in the Eurostat Code of Practice designed;
Increase of the capacity of the Ministry of Economy for implementation of the legislation
aligned to to the service directive for single point of contact
Institutional capacity building and strengthening and technical assistance for the
implementation of the National Strategy on Extensible business reporting language (XBRL
Strategy) in electronic submission of mandatory financial and business reports through one stop
shop system strengthened;
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
















Capacities of the institutions involved in promotion of the non - banking sources (MF, MBPD
and other relevant institutions) developed and strengthened;
Capacities of the public sector to generate and refine its policies aiming at providing access to
finance, innovation and research and development for the SMEs strengthened;
Capacities of the local and national authorities for implementation of the legal framework for
the Public Private Partnership developed and strengthened;
Capacities of the Agency for Innovation and Technologies developed and strengthened;
Statistical methods in the area of economic statistics further improved;
Corporate data warehouse for economic statistics put into statistical daily production;
New software modules and user oriented applications for economic statistic developed;
Project specification prepared for tendering procedure for software development for corporate
data warehouse. Procurement files ready for tendering;
SSO staff has improved knowledge for monitoring of the public fiscal data;
Integrated data from Censuses (Population, Agriculture), SILC and administrative data for
compilation of households’ accounts produced;
Social statistics needed for compilation of households’ account including Household Budget
Survey Improved;
Household Budget Survey data reconciled with National Accounts aggregates;
Agriculture balance sheets prepared and data on unincorporated sector in national accounts
integrated;
Price indices for services established;
Data according to the new definitions of ESA 2010 prepared;
Statistics on R&D further developed;
Prepared manuals for data processing, data analysing and data balancing, including production
of new publications.
Measurable indicators:
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
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


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










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One design solution for administrative data system which will produce administrative data
suitable for statistical purposes, as it is laid down in the Eurostat Code of Practice produced;
Number of administrative data suitable for statistical purposes produced;
Establishment and operationalization of a Standard Business Reporting Office (SBR)
Establishment of a national XBRL Macedonia jurisdiction
Establishment of a national XBRL Steering Committee
Creation of the Steering committee
Definition of a membership model
Establishment of permanent XBRL work groups
Establishment of initial work groups (domain, marketing and communications) and identified
key participants
Application for tentative membership submitted to XBRL International
Number of staff engaged in the institutions involved in promotion of the non - banking sources;
Number of staff trained in the public sector to generate and refine its policies aiming at
providing access to finance, innovation and research and development for the SMEs
Number of staff trained in the local and national authorities for implementation of the legal
framework for the Public Private Partnership;
Number of companies certified for PPP;
Number of people trained in the Agency for Innovation and Technologies;
Number of rules and procedures developed in the Agency for Innovation and Technologies;
Share of statistical data used trough the statistical methods in the area of economic statistics;
Number of statistical data for corporate data warehouse for economic statistics;
Number of new software modules and user oriented applications for economic statistic;
One project specification prepared;
Number of procurement files ready for tendering;
Number of SSO staff trained for monitoring of the public fiscal data;
Number of integrated data from Censuses (Population, Agriculture), SILC and administrative
data for compilation of households’ accounts issued;
Number of data produced for social statistics needed for compilation of households’ account
including Household Budget Survey;
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






Number of household Budget Survey data reconciled in relation to the National Accounts
aggregates;
Number of data used from the agriculture balance sheets;
Number of data ready to be used on unincorporated sector in national accounts;
Number of price indices for services used;
Number of data according to the new definitions of ESA 2010 used;
Number of documents for the improvement of the Statistics on R&D;
Number of prepared manuals for data processing, data analysing and data balancing, including
production of new publications.
Operation 1.2: Improving business environment
Results:
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-
Creation of the One-stop-shop system for business licences and permits expanded;
Development of cross-institutional XBRL platform and repository
Development of national XBRL taxonomy
Improved interoperability among institutions in sharing financial and business related data through
adoption of common recognized electronic standard;
Streamlining of reporting obligations of the companies to the public sector
Successfully implemented measures from the Action plan for combating unemployment;
Successfully implemented measures from the Action plan for combating informal economy;
Public awareness/information campaigns for promotion the programs for public private dialogue
designed and organised;
Follow up project of the E-inspectorates project implemented;
Improved VAT legislation in line with the EU Directives for VAT;
Relevant stakeholders introduced with changes in VAT legislation;
Transferred experience and know-how on VAT practise from selected EU member country;.
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Measurable indicators:
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-
Number of additional stops for offering the services from the One-stop-shop system for business
licences and permits;
Number of XBRL taxonomies developed for separate market niches (i.e. corporate, financial market,
banking, etc.)
Number of company filings per market niche;
Number of measures implemented from the Action plan for combating unemployment;
Number of measures implemented from the Action plan for combating informal economy;
Number of public awareness events for promotion the programs for public private dialogue organised;
Number of actions undertaken for follow up of the e-inspectorates project that is already implemented;
Report on assessment of the current legislation regulating VAT (which identifies the needs for further
alignment with EU directives) prepared and approved by the Ministry of Finance;
Amended VAT Law is aligned with the EU directives for VAT;
Number of promotion/information events and products organized for introduction with the VAT
legislation changes
Number of Ministry of Finance employees went on study visit in selected EU member country for
exchanging of experience and know-how on VAT practices.
Measure 2: Increasing the market and production efficiency
Operation 2.1: Market and production efficiency
Results:
-
The mechanism for support of the cooperation between universities, scientific research institutions and
industry as well as utilization of the state laboratories further upgraded;
The implementation of the strategy of the National council for education supported;
SME Policies, including Cluster policy and forming of incubators in line with Sector Based Approach,
successfully implemented;
Capacities of the public and private bodies for getting access or using of the Community programs
oriented to support competitiveness, innovation and R&D strengthened;
Increased need of capital and knowledge thought Equity and Mezzanine Investment Funds;
Established links between foreign investors in the country and domestic suppliers with focus on
attraction of FDI for value added products, new technologies and those that have spill over effect.
Measurable indicators:
- Share of cooperation increased between universities, scientific research institutions and industry as well
as utilization of the state laboratories further upgraded;
- Number of activities undertaken to implement the strategy of the National council for education;
- Number of SME Policies (including Cluster policy) aligned with the Sector Based Approach;
- Number of incubators in line with Sector Based Approach formed;
- Number of employees in the public and private bodies trained for getting access or using of the
Community programs oriented to support competitiveness, innovation and R&D strengthened;
- Number of training sessions held for understanding and usage capital and knowledge thought Equity and
Mezzanine Investment Funds;
- Number of established links between foreign investors in the country and domestic suppliers with focus
on attraction of FDI for value added products, new technologies and those that have spill over effect.
Operation 2.2: Further Harmonisation with EU Acquis in the field of insurance
Results:
 Improved legal framework (new Insurance Law and by-laws prepared) in the insurance sector 2, by its
approximation with Directive 2009/138/EC;
 Drafted recommendations on better implementation of the new Insurance Law and by-laws in real
sector;
 Relevant stakeholders introduced with the functioning of, their role and benefits from the new Solvency
II regime;
2
compliant with the Acquis by transposing the Directive 2009/138/EC on the taking-up
and pursuit of the business of Insurance and Reinsurance (Solvency II) established;
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

Strengthened capacity and human resources in the Ministry of finance and ISA, properly trained for
efficient implementation of the insurance system with Solvency II regime in an EU Member State;
Transferred experience on Solvency II regime practice from selected EU member country.
Measurable indicators:
 Report on assessment of the level of harmonisation of the existing insurance legislation prepared and
approved by the beneficiary;
 New Insurance law approximated with Directive 2009/138/EC;
 Number of bylaws approximated with Directive 2009/138/EC ;
 Report on recommendations for better implementation of the new Insurance Law and by-laws in real
sector approved by the beneficiary;
 Number of promotion/information events and products about the benefits from the introduction of the
new Solvency II regime;
 Number of training events for MoF and ISA representatives;
 Number of persons trained;
 Number of MoF and ISA employees went on the study visit in the selected EU member country.
Measure 3: Market sophistication, innovation and access to finance
Operation 3.1: Innovation and access to finance
Results:
- Established scheme for supporting and promoting enterprise growth, modernisation and employment of
Micro, Small and Medium Enterprises and established a sustainable infrastructure of local advisory
services
- Increased number of non - banking sources and instruments for financing of the SMEs;
- Increased number of supported SMEs with competitiveness and export potentials
- Established fund for investments in small and medium companies in early stage of development;
- Successfully implemented measures from the Innovation strategy related to SMEs.
Measurable indicators:
- Number of grants contracted to enterprises for growth, modernisation and employment of Micro, Small
and Medium Enterprises and establishing a sustainable infrastructure of local advisory services;
- Number of non - banking sources and instruments introduced for financing of the SMEs;
- Number of supported SMEs with competitiveness and export potentials;
- Number of rules and procedures for usage of the fund for investments in small and medium companies
in early stage of development;
- Number of small and medium enterprises using the Fund for innovation in small and medium companies
in early stage of development;
- Number of measures under the Innovation strategy related to SMEs used by the final beneficiaries.
Operation 3.2: Strengthening of the internal market integration
Results:
- Increased involvement and participation of national experts in development of European standards and
attendance on CEN/CENELEC TC meetings;
- Pure national standards in areas not covered by EN or International standards developed;
- Increased capacity of the Certification Unit including and development of new certification shames for
other standards;
- Training needs assessment for introduction of the EU info centre scope of work, training curricula and
program prepared and training delivered;
- Supply of the equipment for the EU Info centre;
- Data management system for the Institute for standardisation upgraded;
- Increased awareness for SMEs about importance for using EU standards and protection of intellectual
property through standards;
- Expert staff who will contribute to the development of more efficient methods better and more qualified;
- Traceability to private laboratories and laboratories by all shareholders maintained;
- Implementation of Measuring Instruments Directive (2004/22/EC)
- New long-term strategy for research activities of Bureau of Metrology developed ;
- Action plan for protection of consumers and ensuring fair market competition drafted;
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-
Needs assessment for detecting new areas in metrology according to industry needs conducted and
drafted;
Training sessions to the accredited bodies in the area of metrology delivered.
Measurable indicators:
- Number of national experts involved in development of European standards;
- Number of people present on the CEN/CENELEC TC meetings;
- Number of pure national standards developed which are still not covered by EN or International
standards;
- Number of certification schemes used by the final beneficiaries;
- Number of people trained trough the EU info centre;
- Number of equipment for the EU Info centre supplied (3 tables, 30 chairs, 10 computers, 2 copiers, 2
printers, 2 video projectors)
- Number of data used by the upgraded Data management system for the Institute for standardisation;
- Number of events organised for increasing the awareness for SMEs about importance for using EU
standards and protection of intellectual property through standards;
- Number of Expert staff who will contribute to the development of more efficient methods trained and
certified;
- Number of Metrological Traceability of Laboratories which ensure comparability in laboratory
test results (such as water meters, electricity meters)
- Number of measuring instruments that comply to Measuring Instrument Directive (MID)
- Number of developed research activities of Bureau of Metrology in the new long term strategy of BoM
Development ;
- Number of new areas detected in the assessment of metrology area according to industry needs;
- Number of equipment purchased and installed necessary to develop the areas of dimension, reference
materials and electrical quantities;
- Number of training sessions delivered to the accredited bodies in the area of metrology.
3.4
MEASURES/OPERATIONS3 TO ACHIEVE RESULTS
Measure 1: Institutional capacities and business environment
Operation 1.1: Capacity building of the institutions
- Designing of administrative data system in order to make administrative data more
suitable for statistical purposes, as it is laid down in the Eurostat Code of Practice;
- Strengthening of the institutional capacity for the implementation of the National
Strategy on Extensible business reporting language (XBRL Strategy) in electronic
submission of mandatory financial and business reports through one stop shop system;
- Capacity building of the institutions involved in promotion of the non - banking
sources (MF, MBPD and other relevant institutions);
- Strengthening the capacities of the public sector to generate and refine its policies
aiming at providing access to finance, innovation and research and development for the
SMEs;
- Capacity building of local and national authorities to implement the legal framework
for the Public Private Partnership;
- Capacity building and further straitening of the Agency for innovation and
technologies;
- Drafting methodologies for collection and processing of economic and social statistics;
3
As defined in Article 6(2) of the IPA Implementing Regulation No 718/2006. IPA Component I
programmes are subdivided into sectors (priorities), each of which define a global objective to attain and
which shall be implemented through measures, which may be subdivided into operations, or directly through
operations. Operations shall comprise a project or a group of projects (implemented by the Commission or the
beneficiary country).
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-
-
Training of staff in new methodologies on economic/social statistics and in
implementation of ESA 2010
Assessment of the produced data and support of the implementation of methodologies;
Design and putting into daily production of data warehouse for economic statistics;
Develop new software modules and user oriented applications for economic startistic;
Assist SSO to prepare tender documentation for outsourcing data warehouse re-design;
Support SSO to improve communication with the relavant stakholders related to EDP
tables;
Getting user requirements for NA processes and the mapping of those processes to
business requirements in the view of implementation of the ESA 2010 methodology, the
compilation of quarterly national accounts and producing additional macroeconomic
aggregates;
Set up physical environment for Extract, Transform, Load (ETL) and reporting
processes;
Assist SSO to introduce Data Modelling;
Assist in development of Conceptual, Logical and Physical data models;
Design of front end development web tool for visualizing data for users and to satisfy
reporting requirements.
Operation 1.2: Improving business environment
- Expanding the creation of the one-stop-shop system for business licences and permits
- Interoperability among institutions in sharing financial and business related data
through adoption of common recognized electronic standard
- Support the implementation of the package of measures of the Action plan for
combating unemployment
- Support the implementation of the package of measures of the Action plan for
combating informal economy
- Awareness rising programs and upgrading of public private dialogue
- Continuation of the E-inspectorates project
- Assessment of the level of harmonisation of the current legislation regulating VAT and
identification of the needs for further alignment with EU directives;
- Drafting amendments of the existing VAT Law compliant with EU Directives;
- Design and organization of promotion/information activities for introduction with the
VAT legislation changes;
- Study visit in the selected EU member country for the Ministry of Finance employees
for exchanging experience and know-how in VAT practices.
Measure 2: Increasing the market and production efficiency
Operation 2.1: Market and production efficiency
- Creating a mechanism for support and stimulating the cooperation between
universities, scientific research institutions and industry as well as utilization of the
state established laboratories.
- Supporting the National council for education and implementation of its strategy.
- Support to the implementation of SME Policies including Cluster policy and forming
of incubators in line with Sector Based Approach
- Increase the capacity of public and private bodies to get access or to use the
Community programs oriented to support competitiveness, innovation and R&D.
- Further supporting the process of capitalization and crediting of companies with
potential and need of capital and knowledge thought Equity and Mezzanine Investment
Funds.
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-
Strengthening the links between foreign investors in the country and domestic
suppliers with focus on attraction of FDI for value added products, new technologies
and those that have spill over effect.
Operation 2.2: Further Harmonisation with EU acquis in the field of insurance
 Assessment of the level of harmonisation of the existing legislation in the insurance
sector;
 Drafting legislation (law and by-laws) compliant with Directive 2009/138/EC ;
 Drafting recommendations on better implementation of the new Insurance Law and bylaws in real sector;
 Training of ISA representatives for conducting its responsibilities under the new
Insurance Law and by-laws;
 Designing and organisation of promotion/information activities on the functioning and
roles in the new insurance system and the benefits from the introduction of the new
Solvency II regime;
 Study visit in the selected EU member country for the employees of the Financial
System Department and ISA for transfer of experience on Solvency II regime practice.
Measure 3: Market sophistication, innovation and access to finance
Operation 3.1: Innovation and access to finance
- Promoting enterprise growth, modernisation and employment trough shame for
supporting of Micro, Small and Medium Enterprises and building a sustainable
infrastructure of local advisory services.
- Promotion of non - banking sources and instruments for financing of the SMEs;
- Financial support of competitiveness and export potentials of SMEs by encourage
transfer of new technology and boosting R&D and innovation in enterprises;
- Assist establishment of a fund for investments in small and medium companies in early
stage of development;
- Financial support of the implementation of the measures and activities from the
Innovation strategy.
Operation 3.2: Strengthening of the Internal market integration
- Involvement and participation of national experts in development of European
standards and attendance on CEN/CENELEC TC meetings;
- Developing of the pure national standards in areas not covered by EN or International
standards;
- Increasing capacity of the Certification Unit including and development of new
certification shames for other standards;
- Conducting training needs assessment for introduction of the EU info centre scope of
work, training curricula and program prepared and delivering of training sessions;
- Supply of the equipment for the EU Info centre (3 tables, 30 chairs, 10 computers, 2
copiers, 2 printers, 2 video projectors)
- Upgrading the data management system for the Institute for standardisation;
- Increasing the awareness for SMEs about importance for using EU standards and
protection of intellectual property through standards;
- Support to the expert staff who will contribute to the development of more efficient
methods;
- National metrology framework in compliance to MID Directive objectives;
- Regular traceability to private laboratories;
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3.5
Harmonization to Measuring instruments covered by the Directive
Development of new long-term strategy for research activities of Bureau of Metrology;
Drafting of an action plan for protection of consumers and ensuring fair market
competition;
Conduction a needs assessment survey and drafting of needs basement analysis for
detecting new areas in metrology according to industry needs;
New long-term strategy for research activities of the Bureau of Metrology developed
Training sessions to the accredited bodies in the area of metrology delivered;
OVERVIEW OF PAST OR ONGOING ASSISTANCE, LESSONS LEARNED, MECHANISMS FOR
DONOR COORDINATION/SECTOR WORKING GROUP AND/OR POLICY DIALOGUE
See ANNEX VI
3.6
SUSTAINABILITY
The key element that will contribute to ensure sustainability of results is the enhanced ability of
the relevant institutions and stakeholders to continue ongoing reforms and initiate next
generation of reforms for improving the performance of the private sector and meet EU
standards for functional and competitive economy. In that respect, the main pre-conditions take
account of: building capacity of government institutions, agencies, business associations;
improved ability and practice of monitoring the progress and managing the reforms; increased
public dialogue and debate on demand for reforms (public-private dialogue); stakeholders have
positive attitude towards reforms and EU membership; improved transparency of policies;
enhanced accountability by the government towards key stakeholder;… The sustainable
institutional framework established shall support the development of the business sector
measures for competitiveness affecting directly enterprises. The main public institutions and
organisations that are among the beneficiaries are having a specific role in the economic sector
and improvement of the business. Also the support is envisaged in order to achieve the
development and improving capacities in metrology, standardization, testing, quality assurance,
accreditation and certification (MSTQ) which lie at the core of developing country ability to
export competitive goods and provide services.
Regarding official statistics, the project should lead to improved codes of practice, methods and
will have impact on the cross-sectoral statistics improvements and a better co-ordination
between national producers of statistics, in order to increase responsibility and capacity to
provide for close monitoring of results with respect to the Acquis Communautaire in statistics.
Also, this project will contribute towards modernised insurance sector, improved consumer
protection and harmonisation with the EU supervision standards. The sustainability of project's
results will continue by successful integration of the country insurance market in the European
market, promoting the country's readiness to face the competitive pressures and internal market
forces within the European Union. Also the sustainability of this project will be ensured by
establishment and functioning of insurance companies and reinsurance based on solid economic
principles, adequate protection of policy holders and beneficiaries and financial stability and fair
and stable markets. The implementation of the newly established legal framework harmonised
with the Solvency II Directive, the increased effectiveness and efficiency in the functioning of
the insurance sector participants and better secured and protected rights of policy holders and
beneficiaries will add to the sustainability of the project results.
Furthermore, the improved legislation in the field of VAT in line with the acquis and increased
awareness of the VAT payers about the changes in legislation will contribute not only to
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business environment development, but also to more effective tax collection which will add
value to the sustainability.
Further improvement of the capacities of the Bureau of Metrology will help for development
of the metrological system in the country providing the traceability of the SI measurement
units and their dissemination to all users in the country. An improved system of metrology,
will support in the protection of the environment, provide for general technical safety and
enhance the competition rules in the country.
The project has cross-border impact, as the country is part of regional free trade agreement,
providing further access of the country’s products to the markets of neighbouring countries
through international recognition of the national standardisation, accreditation and metrology
infrastructure.
3.7
ASSUMPTIONS AND PRECONDITIONS4
The assumptions related with this sector fiche are related with the commitment, responsibility
and accountability for its implementation at national and local level and effective coordination
of undertaken measures by all stakeholders in order to multiply the effect to a larger scope of
socially excluded groups, such as:
 Continued commitment to the EU Accession process;
 Commitment from national authorities in the process;
 Availability of appropriate staff for trainings;
 The stakeholders ready to cooperate;
 Appropriate expertise is available;
 Beneficiary institutions can make (qualified) staff available.
Preconditions:
 Appointment of counterpart personnel by the beneficiaries before contract
signatory;
 Allocation of working space and facilities within the premises of the
beneficiaries before contract signatory;
 Participation by the beneficiaries in the tender process as per EU regulations;
 Organisation, selection, appointment and participation of members of working
groups, steering and coordination committees, seminars by the
beneficiaries/stakeholders as per work plan of the project;
 Appointing the relevant staff by the beneficiaries to participate in training
activities as per work plan;
 Sufficient managerial, technical and human resources allocated to the relevant
Departments;
 EU procedures to be followed in all tender procedure;
 The trainings under the individual activities will be carried out in the national
training premises (for ex. EU/IPA Training and Support Facility);
4
Assumptions are external factors that have the potential to influence (or even determine) the success of a
project but lie outside the control of the implementation managers. Such factors are sometimes referred to as
risks or assumptions but the Commission requires that all risks shall be expressed as assumptions. Preconditions are requirements that must be met before the sector support can start.
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 In areas where there is evident expertise with the final beneficiary, the trainings
will be delivered by the civil servants, as part of their job description, without
any compensation and/or with the assistance of key/short term experts.
The risks that might occur during implementation of the sector support plan could be related
with weak approach in implementation of defined activities; time consuming and weak
institutional coordination in providing resources for the support of the implementation of the
objectives; lack of gathering of on-time information, consultation and involvement of
stakeholders, communities and groups; insufficient capacities for program and project
management; and insufficient capacities for monitoring and evaluation of implemented
measures.
Pre-conditions are very important. In the area of R&D and for the parts related to boosting
innovation and technology in SME, academia and eventually in the country, implementation of
the programme should be linked to the achievement of the following requisites:




4
Adoption of the Innovation Strategy 2012-2020 which is not yet in place
Analysis for unemployment rate drafted and adopted;
Analysis for combating grey economy drafted and adopted;
Creation of the Agency for Technology and Innovation.
IMPLEMENTATION ISSUES
Central Financing and Contracting Department – will be the Contracting Authority. The
Head of the Contracting Authority is at the same time the Head of the Operating Structure
(HOS) for Regional Development. Therefore, besides the responsibilities of CFCD in
launching tenders, organizing evaluations, preparing/signing contracts, CFCD also supports
HOS in performing its supervisory role over the Operating Structure for Regional
Development. The Contractor will report to CFCD and the Contractor's Team Leader will
have to perform regular communication with the Contracting Authority and coordinate the
Contract activities in close consultation with HOS
The Cabinet of the Deputy Prime Minister in charge for economic affairs and
coordination of economic sectors (CDPMEA) it the leading and coordinating institution. The
sector approach of the programming and implementing of the sector fiche demands
coordination of its beneficiary institution by institution which is structured as umbrella over
economic institutions- beneficiaries of this fiche. The CDPMEA responsibility is to ensure
efficiency in implementing of the measures and put efforts to overcome eventually obstacles
in implementing process. The beneficiaries SPOs that are responsible for implementation of
the measures of this fiche will regularly report to the CDPMEA.
The beneficiaries of the Private sector development sector fiche are: Ministry of economy,
Ministry of finance, Ministry of education and science, Ministry of labour and social policy,
General secretariat of the Government of the Republic of Macedonia- Sector for economic
policy and regulatory reform, Institute for standardisation of Republic of Macedonia, Bureau
of metrology, State Statistical Office, Supervision Insurance Agency, Macedonia bank for
promotion of development and Inspectorates in Macedonia.
Project Steering Committee (PSC) at the highest level will be established. Project Steering
Committee (PSC) will be set up before the project start for the purpose of the overall
management and coordination. With the SC will chair the CDPMEA. The SC will provide
guidance for the project implementation.
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In the light of the measures/ operations indicated in section 3.4, provide information on the
management mode(s) and any delegated partners.
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4.1
INDICATIVE BUDGET
Indicative budget (amounts in EUR) (for decentralised management)
SOURCES OF FUNDING
SECTOR TITLE
TOTAL
EXPENDITURE
IB
(1)
INV
(1)
TOTAL PUBLIC
EXPENDITURE
IPA
CONTRIBUTION
EUR
EUR
EUR
(a)=(b)+(e)
(b)=(c)+(d)
(c)
%
(2)
PRIVATE
CONTRIBUTION
NATIONAL PUBLIC CONTRIBUTION
Total
%
(2)
Central
Regional/Local
IFIs
EUR
EUR
EUR
EUR
EUR
(e)
(d)=(x)+(y)+(z)
(x)
(y)
(z)
%
(3)
Measure 1
Operation 1.1
and 1.2
x
1.300.000
1.300.000
1.170.000
90
130.000
10
130.000
-
-
-
-
2.100.000
2.100.000
1.575.000
75
525.000
25
525.000
-
-
-
-
x
1.400.000
1.400.000
1.190.000
85
210.000
15
210.000
-
-
-
-
Operation 2.1
x
1.200.000
1.200.000
1.080.000
90
120.000
10
120.000
-
-
-
-
Operation 2.2
x
1.000.000
1.000.000
900.000
90
100.000
10
100.000
-
-
-
-
x
1.500.000
1.500.000
1.275.000
85
225.000
15
225.000
-
-
-
-
1.000.000
1.000.000
750.000
75
250.000
25
250.000
-
-
-
-
TOTAL IB
-
-
-
-
TOTAL INV
-
-
-
-
x
Operation 1.1
Operation 1.2
Measure 2
Measure 3
Operation 3.1
Operation 3.2
x
TOTAL SECTOR SUPPORT
9.500.000
7.940.000
1.560.000
1.560.000
25
25
4.2
INDICATIVE IMPLEMENTATION SCHEDULE (PERIODS BROKEN DOWN PER QUARTER)
Dates indicated in the schedule cannot go beyond the contracting and execution deadlines in the
financing proposal
Operations
Start of
Tendering/
Call(s) for
proposals
Signature of
contract(s)
Operation 1.1
1ST Quarter following
the signature of the
FA
1ST
Quarter
following
the
signature
contracts
Operation 1.2
1ST Quarter following
the signature of the
FA
1ST
Quarter
following
the
signature
contracts
Operation 2.1
1ST Quarter following
the signature of the
FA
1ST
Quarter
following
the
signature
contracts
Operation 2.2
1ST Quarter following
the signature of the
FA
1ST
Quarter
following
the
signature
contracts
Operation 3.1
1ST Quarter following
the signature of the
FA
1ST
Quarter
following
the
signature
contracts
Operation 3.2
1ST Quarter following
the signature of the
FA
1ST
Quarter
following
the
signature
contracts
4.3
4.3.1
Activity Completion
CROSS CUTTING ISSUES
Equal Opportunities and non discrimination
Through the implementation of the project it will be possible to fully enable the equal
opportunities and non-discrimination. The respect of equal gender opportunities will be priority
in the composition of the Steering Committee and where necessary. Also the training activities
could have in its content a component in order to train municipal and ministerial staff as part of
the Government Gender Strategy, while reference will be made to the EC Programme of Action
for the mainstreaming of gender equality in community development cooperation (2001-06).
The result from this training component is going to be assistance to the beneficiary in order to
enable an ‘internal gender assessment’ by which he will be able to determine which areas are
lagging and their internal performance could be improved by vis-à-vis gender phase.
4.3.2
Environment and climate change
Responding to climate change requires the participation of all stakeholders, including
governments and the private sector Alleviating the negative impacts of climate change and
maximizing the potential-opportunities it creates through low carbon economic growth require
broad institutional and fiscal reform and increased financial commitments through a joint
governments - private sector effort. Effective partnerships with the private sector have been
26
26
increasingly recognized as a basis for overcoming present barriers that restrict capital flows
into the sectors that support climate change mitigation and adaptation.
4.3.3
Minorities and vulnerable groups
Equal representation of minorities and vulnerable groups will be guaranteed through the Sector
Plan preparation and implementation and the institutions involved will observe providing the
equal opportunities for all the citizens regardless of their ethnic and religious background, as
well any type of occurrence of social risk faced by the minorities and/or vulnerable groups.
4.3.4
Civil Society/Stakeholders involvement
Considering the important role of the social partners and the civil society sector, especially in
the fields related to the policy creation, development, implementation etc., substantial efforts
will be dedicated to the purpose of regular informing and involvement, whenever possible of the
civil society organisations and social partners, as well as any other institution/organisation as
parties concerned regarding the project implementation, outcomes and results achieved within
the Sector Plan.
4.4 Sector monitoring, evaluation and audit] (only decentralised management
Each institution involved is responsible for daily management and monitoring of the relevant
measures.
In addition, an overall management structure that will be established so as to oversee the
overall implementation of the project and to ensure appropriate coordination between the
different activities supported by the project, the Sector Steering Committee (SSC), will
monitor the progress of the program, two times per year, every 6 months. The overall
coordination of the activities within this sector falls under the Deputy Prime Minister for
economic affairs.
The audit will be conducted by the Audit Authority for audit of the instrument for preaccession assistance (IPA).
27
27
ANNEXES
1. Documents to be annexed to the Sector fiche
2. Log frame
3. Description of Institutional Framework
4. Political, legal and institutional framework:
5. Details per EU funded operation(*) where applicable:
6. Possible visibility activities
28
28
ANNEX 1: Logical framework matrix for sector support in standard format
LOG FRAME PLANNING MATRIX FOR Sector Sector support name and number
Fiche
Contracting period expires
Total budget
Private sector development
Execution period expires
:
IPA budget:
National sector or sub
sector objective
Objectively verifiable
indicators (OVI)
Sources of verification
What is the percentage proportion or expected quantitative or qualitative
contribution of the sector support funded by IPA to this OVI?
29 29
The overall objective of
sector plan on private
sector development is
to strengthen the
capacities for
development and
implementation of
measures targeted to
maintain sustainable
growth, increase
competitiveness of the
private sector and
provide a healthy
business environment
for investment,
competitiveness based
on knowledge and
innovation
enhancement, to
contribute to the
improvement of the
internal market in
general.
One design solution for
administrative
data
system
which
will
produce
administrative
data suitable for statistical
purposes, as it is laid
down in the Eurostat
Code
of
Practice
produced;
Number of administrative
data suitable for statistical
purposes produced;
Establishment
and
operationalization of a
Standard
Business
Reporting Office (SBR)

Project reports

Certified trainings accomplished

Implemented electronic software
solutions

Draft legislation (laws/bylaws)

Grants awarded

Quality Data produced
statistical purposes

Established of a national XBRL
Macedonia jurisdiction

Established of a national XBRL
Steering Committee
for
Establishment
of
a
national
XBRL
Macedonia jurisdiction
Establishment
of
a
national XBRL Steering
Committee
Creation of the Steering
committee XBRL
Establishment
of
permanent XBRL work
groups
Establishment of initial
work groups (domain,
marketing
and
communications)
and
identified key participants
Application for tentative
membership submitted to
XBRL International
Number of staff engaged
in
the
institutions
involved in promotion of
the non - banking
sources;
Number of staff trained in
the public sector to
3030
Sector support
objective within the
MIPD sector
Objectively verifiable
indicators (OVI)
1. Improve the business
environment and the
institutional
capacities in the area
of competitiveness
and improving the
competitiveness
index of the country.
2. Increase the market
competitiveness and
production efficiency
of the companies, as
well as improving
the market
sophistication,
innovation and
access to finance.
One design solution for
administrative data
system which will
produce administrative
data suitable for statistical
purposes, as it is laid
down in the Eurostat
Code of Practice
produced;



Number of administrative
data suitable for statistical
purposes produced;

Establishment and
operationalization of a
Standard Business
Reporting Office (SBR)
Establishment of a
national XBRL
Macedonia jurisdiction
Establishment of a
national XBRL Steering
Committee
Sources of Verification




Project reports
Certified trainings accomplished
Implemented electronic software
solutions
Draft legislation (laws/bylaws)
Grants awarded
Quality Data produced for
statistical purposes
Established of a national XBRL
Macedonia jurisdiction
- Established of a national XBRL
Steering Committee
Assumptions














Continued commitment to the EU Accession process;
Commitment from national authorities in the process;
Availability of appropriate staff for trainings;
The stakeholders ready to cooperate;
Appropriate expertise is available;
Beneficiary institutions can make (qualified) staff available.
Appointment of counterpart personnel by the beneficiaries
before contract signatory;
Allocation of working space and facilities within the premises
of the beneficiaries before contract signatory;
Participation by the beneficiaries in the tender process as per
EU regulations;
Organisation, selection, appointment and participation of
members of working groups, steering and coordination
committees, seminars by the beneficiaries/stakeholders as per
work plan of the project;
Appointing the relevant staff by the beneficiaries to participate
in training activities as per work plan;
Sufficient managerial, technical and human resources
allocated to the relevant Departments;
EU procedures to be followed in all tender procedure;
The trainings under the individual activities will be carried out
in the national training premises (for ex. EU/IPA Training and
Support Facility);
Creation of the Steering
committee XBRL
Establishment of
permanent XBRL work
groups
Establishment of initial
work groups (domain,
marketing and
communications) and
identified key participants
Application for tentative
31 31
membership submitted to
XBRL International
Number of staff engaged
in the institutions
involved in promotion of
the non - banking
sources;
Number of staff trained in
the public sector to
generate and refine its
policies aiming at
providing access to
finance, innovation and
research and development
for the SMEs
Number of staff trained in
the local and national
authorities for
implementation of the
legal framework for the
Public Private
Partnership;
Number of companies
certified for PPP;
Number of people trained
in the Agency for
Innovation and
Technologies;
Number of rules and
procedures developed in
the Agency for
Innovation and
Technologies;
Share of statistical data
used trough the statistical
methods in the area of
economic statistics;
32 32
Number of statistical data
for corporate data
warehouse for economic
statistics;
Number of new software
modules and user
oriented applications for
economic statistic;
Number of procurement
files ready for tendering;
Number of SSO staff
trained for monitoring of
the public fiscal data;
Number of integrated
data from Censuses
(Population, Agriculture),
SILC and administrative
data for compilation of
households’ accounts
issued;
Number of data produced
for social statistics
needed for compilation of
households’ account
including Household
Budget Survey;
Number of household
Budget Survey data
reconciled in relation to
the National Accounts
aggregates;
Number of data used
from the agriculture
balance sheets;
Number of data ready to
33 33
be used on
unincorporated sector in
national accounts;
Number of price indices
for services used;
Number of data according
to the new definitions of
ESA 2010 used;
Number of documents for
the improvement of the
Statistics on R&D;
Number of prepared
manuals for data
processing, data
analysing and data
balancing, including
production of new
publications.
Share of cooperation
increased between
universities, scientific
research institutions and
industry as well as
utilization of the state
laboratories further
upgraded;
Number of activities
undertaken to implement
the strategy of the
National council for
education;
Number of SME Policies
(including Cluster policy)
aligned with the Sector
Based Approach;
Number of incubators in
3434
line with Sector Based
Approach formed;
Number of employees in
the public and private
bodies trained for getting
access or using of the
Community programs
oriented to support
competitiveness,
innovation and R&D
strengthened;
Number of training
sessions held for
understanding and usage
capital and knowledge
thought Equity and
Mezzanine Investment
Funds;
Number of established
links between foreign
investors in the country
and domestic suppliers
with focus on attraction
of FDI for value added
products, new
technologies and those
that have spill over effect.
Results of the sector
support
Administrative
data system which
will produce
administrative data
suitable for statistical
purposes, as it is laid
Objectively verifiable
indicators (OVI)
- One design solution
for administrative data
system which will
produce administrative
data suitable for
statistical purposes, as it
Sources of Verification





Project reports
Certified trainings accomplished
Implemented electronic software
solutions
Draft legislation (laws/bylaws)
Grants awarded
Assumptions






Continued commitment to the EU Accession process;
Commitment from national authorities in the process;
Availability of appropriate staff for trainings;
The stakeholders ready to cooperate;
Appropriate expertise is available;
Beneficiary institutions can make (qualified) staff available.
35 35
-
-
-
-
down in the Eurostat
Code of Practice
designed;
Increase of the
capacity of the
Ministry of Economy
for implementation of
the legislation aligned
to to the service
directive for single
point of contact
Institutional capacity
building and
strengthening and
technical assistance
for the
implementation of the
National Strategy on
Extensible business
reporting language
(XBRL Strategy) in
electronic submission
of mandatory financial
and business reports
through one stop shop
system strengthened;
Capacities of the
institutions involved
in promotion of the
non - banking sources
(MF, MBPD and other
relevant institutions)
developed and
strengthened;
Capacities of the
public sector to
generate and refine its
policies aiming at
providing access to
finance, innovation
and research and
development for the
SMEs strengthened;
is laid down in the
Eurostat Code of
Practice produced;
- Number of
administrative data
suitable for statistical
purposes produced;
- Establishment and
operationalization of a
Standard Business
Reporting Office (SBR)
- Definition of a
membership model
- Establishment of
permanent XBRL work
groups
- Establishment of initial
work groups (domain,
marketing and
communications) and
identified key
participants
- Application for
tentative membership
submitted to XBRL
International
- Number of staff
engaged in the
institutions involved in
promotion of the non banking sources;
- Number of staff
trained in the public
sector to generate and
refine its policies
aiming at providing
access to finance,
innovation and research
and development for the
SMEs
- Number of staff
trained in the local and
national authorities for



Quality Data produced for
statistical purposes
Established of a national XBRL
Macedonia jurisdiction
- Established of a national XBRL
Steering Committee








Appointment of counterpart personnel by the beneficiaries
before contract signatory;
Allocation of working space and facilities within the premises
of the beneficiaries before contract signatory;
Participation by the beneficiaries in the tender process as per
EU regulations;
Organisation, selection, appointment and participation of
members of working groups, steering and coordination
committees, seminars by the beneficiaries/stakeholders as per
work plan of the project;
Appointing the relevant staff by the beneficiaries to participate
in training activities as per work plan;
Sufficient managerial, technical and human resources
allocated to the relevant Departments;
EU procedures to be followed in all tender procedure;
The trainings under the individual activities will be carried out
in the national training premises (for ex. EU/IPA Training and
Support Facility);
36 36
-
-
-
-
-
-
-
Capacities of the local
and national
authorities for
implementation of the
legal framework for
the Public Private
Partnership developed
and strengthened;
Capacities of the
Agency for Innovation
and Technologies
developed and
strengthened;
Statistical methods in
the area of economic
statistics further
improved;
Corporate data
warehouse for
economic statistics put
into statistical daily
production;
New software
modules and user
oriented applications
for economic statistic
developed;
Project specification
prepared for tendering
procedure for software
development for
corporate data
warehouse.
Procurement files
ready for tendering;
SSO staff has
improved knowledge
implementation of the
legal framework for the
Public Private
Partnership;
- Number of companies
certified for PPP;
- Number of people
trained in the Agency
for Innovation and
Technologies;
- Number of rules and
procedures developed in
the Agency for
Innovation and
Technologies;
- Share of statistical data
used trough the
statistical methods in
the area of economic
statistics;
- Number of statistical
data for corporate data
warehouse for economic
statistics;
- Number of new
software modules and
user oriented
applications for
economic statistic;
- One project
specification prepared;
- Number of
procurement files ready
for tendering;
- Number of SSO staff
trained for monitoring
of the public fiscal data;
- Number of integrated
data from Censuses
(Population,
Agriculture), SILC and
administrative data for
compilation of
households’ accounts
37 37
for monitoring of the
public fiscal data;
-
-
-
-
-
-
Integrated data from
Censuses (Population,
Agriculture), SILC
and administrative
data for compilation
of households’
accounts produced;
Social statistics
needed for
compilation of
households’ account
including
Household Budget
Survey Improved;
Household Budget
Survey data
reconciled with
National Accounts
aggregates;
Agriculture balance
sheets prepared and
data on
unincorporated sector
in national accounts
integrated;
Price indices for
services established;
Data according to the
new definitions of
ESA 2010 prepared;
Statistics on R&D
further developed;
Prepared manuals for
data processing, data
analysing and data
issued;
- Number of data
produced for social
statistics needed for
compilation of
households’ account
including Household
Budget Survey;
- Number of household
Budget Survey data
reconciled in relation to
the National Accounts
aggregates;
- Number of data used
from the agriculture
balance sheets;
- Number of data ready
to be used on
unincorporated sector in
national accounts;
- Number of price
indices for services
used;
- Number of data
according to the new
definitions of ESA 2010
used;
- Number of documents
for the improvement of
the Statistics on R&D;
- Number of prepared
manuals for data
processing, data
analysing and data
balancing, including
production of new
publications.
- Number of additional
stops for offering the
services from the Onestop-shop system for
business licences and
permits;
- Number of XBRL
38 38
balancing, including
production of new
publications.
Creation of the Onestop-shop system for
business licences and
permits expanded;
Development of crossinstitutional XBRL
platform and
repository
Development of
national XBRL
taxonomy
Improved
interoperability
among institutions in
sharing financial and
business related data
through adoption of
common recognized
electronic standard;
Streamlining of
reporting obligations
of the companies to
the public sector
Successfully
implemented
measures from the
Action plan for
combating
unemployment;
Successfully
implemented
measures from the
Action plan for
combating informal
taxonomies developed
for separate market
niches (i.e. corporate,
financial market,
banking, etc.)
- Number of company
filings per market niche;
- Number of measures
implemented from the
Action plan for
combating
unemployment;
- Number of measures
implemented from the
Action plan for
combating informal
economy;
- Number of public
awareness events for
promotion the programs
for public private
dialogue organised;
- Number of actions
undertaken for follow
up of the e-inspectorates
project that is already
implemented;
- Report on assessment
of the current legislation
regulating VAT (which
identifies the needs for
further alignment with
EU directives) prepared
and approved by the
Ministry of Finance;
- Amended VAT Law is
aligned with the EU
directives for VAT;
- Number of
promotion/information
events and products
organized for
introduction with the
VAT legislation
39 39
economy;
Public
awareness/information
campaigns for
promotion the
programs for public
private dialogue
designed and
organised;
changes
Number of Ministry of
Finance employees
went on study visit in
selected EU member
country for exchanging
of experience and
know-how on VAT
practices
Follow up project of
the E-inspectorates
project implemented;
Improved VAT
legislation in line with
the EU Directives for
VAT;
Relevant stakeholders
introduced with
changes in VAT
legislation;
Transferred
experience and knowhow on VAT practise
from selected EU
member country;.
Measures to achieve
results
Measure 1:
Institutional capacities
and business
environment
Operation 1.1:
Capacity building of
the institutions
Designing of
administrative
Means / operations
1.
2.
3.
4.
5.
6.
7.
Service contract
Supply contract
Grant scheme
Service contract
Service contract
Grant scheme
Supply contract
Costs
Total:
9.500 000 EUR
IPA:
7.940.000 EUR
Assumptions






Continued commitment to the EU Accession process;
Commitment from national authorities in the process;
Availability of appropriate staff for trainings;
The stakeholders ready to cooperate;
Appropriate expertise is available;
Beneficiary institutions can make (qualified) staff available.
National co-financing:
4040
data system in
order to make
administrative
data more
suitable for
statistical
purposes, as it is
laid down in the
Eurostat Code
of Practice;
Strengthening of
the institutional
capacity for the
implementation
of the National
Strategy on
Extensible
business
reporting
language
(XBRL
Strategy) in
electronic
submission of
mandatory
financial and
business reports
through one stop
shop system;
Capacity
building of
the
institutions
involved in
promotion of
the non banking
sources (MF,
MBPD and
other relevant
institutions);
Strengthening
the capacities
of the public
1.560.000 EUR
41 41
-
-
-
-
sector to
generate and
refine its
policies
aiming at
providing
access to
finance,
innovation
and research
and
development
for the SMEs;
Capacity
building of
local and
national
authorities to
implement
the legal
framework
for the Public
Private
Partnership;
Capacity
building and
further
straitening of
the Agency
for innovation
and
technologies;
Drafting
methodologies
for collection
and processing
of economic and
social statistics;
Training of staff
in new
methodologies
on
economic/social
statistics and in
4242
-
-
-
-
-
-
implementation
of ESA 2010
Assessment of
the produced
data and support
of the
implementation
of
methodologies;
Design and
putting into
daily production
of data
warehouse for
economic
statistics;
Develop new
software
modules and
user oriented
applications for
economic
startistic;
Assist SSO to
prepare tender
documentation
for outsourcing
data warehouse
re-design;
Support SSO to
improve
communication
with the
relavant
stakholders
related to EDP
tables;
Getting user
requirements for
NA processes
and the mapping
of those
processes to
business
4343
-
-
-
-
requirements in
the view of
implementation
of the ESA
2010
methodology,
the compilation
of quarterly
national
accounts and
producing
additional
macroeconomic
aggregates;
Set up physical
environment for
Extract,
Transform,
Load (ETL) and
reporting
processes;
Assist SSO to
introduce Data
Modelling;
Assist in
development of
Conceptual,
Logical and
Physical data
models;
Design of front
end
development
web tool for
visualizing data
for users and to
satisfy reporting
requirements.
Operation 1.2:
Improving business
environment
Expanding
the creation
4444
-
-
-
-
of the onestop-shop
system for
business
licences and
permits
Interoperabilit
y among
institutions in
sharing
financial and
business
related data
through
adoption of
common
recognized
electronic
standard
Support the
implementati
on of the
package of
measures of
the Action
plan for
combating
unemploymen
t
Support the
implementati
on of the
package of
measures of
the Action
plan for
combating
informal
economy
Awareness
rising
programs and
upgrading of
public private
4545
-
-
-
-
-
dialogue
Continuation
of the Einspectorates
project
Assessment
of the level of
harmonisation
of the current
legislation
regulating
VAT and
identification
of the needs
for further
alignment
with EU
directives;
Drafting
amendments
of the existing
VAT Law
compliant
with EU
Directives;
Design and
organization
of
promotion/inf
ormation
activities for
introduction
with the VAT
legislation
changes;
Study visit in
the selected
EU member
country for
the Ministry
of Finance
employees
for
exchanging
4646
experience
and knowhow in VAT
practices.
Measure 2: Increasing
the market and
production efficiency
Operation 2.1: Market
and production
efficiency
Creating a
mechanism
for support
and
stimulating
the
cooperation
between
universities,
scientific
research
institutions
and industry
as well as
utilization of
the state
established
laboratories.
Supporting
the National
council for
education and
implementati
on of its
strategy.
Support to the
implementati
on of SME
Policies
including
Cluster policy
and forming
47 47
-
-
-
of incubators
in line with
Sector Based
Approach
Increase the
capacity of
public and
private bodies
to get access
or to use the
Community
programs
oriented to
support
competitivene
ss, innovation
and R&D.
Further
supporting
the process of
capitalization
and crediting
of companies
with potential
and need of
capital and
knowledge
thought
Equity and
Mezzanine
Investment
Funds.
Strengthening
the links
between
foreign
investors in
the country
and domestic
suppliers with
focus on
attraction of
FDI for value
added
4848
products, new
technologies
and those that
have spill
over effect.
Operation 2.2:
Further
Harmonisation with
EU acquis in the field
of insurance
 Assessment
of the level of
harmonisation
of the existing
legislation in
the insurance
sector;
 Drafting
legislation
(law and bylaws)
compliant
with
Directive
2009/138/EC
;
 Drafting
recommendati
ons on better
implementati
on of the new
Insurance
Law and bylaws in real
sector;
 Training of
ISA
representative
s for
conducting its
responsibilitie
s under the
new
4949


Insurance
Law and bylaws;
Designing
and
organisation
of
promotion/inf
ormation
activities on
the
functioning
and roles in
the new
insurance
system and
the benefits
from the
introduction
of the new
Solvency II
regime;
Study visit in
the selected
EU member
country for
the
employees of
the Financial
System
Department
and ISA for
transfer of
experience on
Solvency II
regime
practice.
Measure 3: Market
sophistication,
innovation and access
to finance
5050
Operation 3.1:
Innovation and access
to finance
Promoting
enterprise
growth,
modernisation
and
employment
trough shame
for supporting
of Micro,
Small and
Medium
Enterprises
and building a
sustainable
infrastructure
of local
advisory
services.
Promotion of
non - banking
sources and
instruments
for financing
of the SMEs;
Financial
support of
competitivene
ss and export
potentials of
SMEs by
encourage
transfer of
new
technology
and boosting
R&D and
innovation in
enterprises;
Assist
establishment
of a fund for
51 51
-
investments
in small and
medium
companies in
early stage of
development;
Financial
support of the
implementati
on of the
measures and
activities
from the
Innovation
strategy.
Operation 3.2:
Strengthening of the
Internal market
integration
Involvement
and
participation
of national
experts in
development
of European
standards and
attendance on
CEN/CENEL
EC TC
meetings;
Developing
of the pure
national
standards in
areas not
covered by
EN or
International
standards;
Increasing
capacity of
the
52 52
-
-
-
-
Certification
Unit
including and
development
of new
certification
shames for
other
standards;
Conducting
training needs
assessment
for
introduction
of the EU
info centre
scope of
work, training
curricula and
program
prepared and
delivering of
training
sessions;
Supply of the
equipment for
the EU Info
centre (3
tables, 30
chairs, 10
computers, 2
copiers, 2
printers, 2
video
projectors)
Upgrading
the data
management
system for the
Institute for
standardisatio
n;
Increasing the
awareness for
53 53
-
-
-
-
-
-
SMEs about
importance
for using EU
standards and
protection of
intellectual
property
through
standards;
Support to the
expert staff
who will
contribute to
the
development
of more
efficient
methods;
National
metrology
framework in
compliance to
MID
Directive
objectives;
Regular
traceability to
private
laboratories;
Harmonizatio
n to
Measuring
instruments
covered by
the Directive
Development
of new longterm strategy
for research
activities of
Bureau of
Metrology;
Drafting of an
action plan
5454
-
-
-
for protection
of consumers
and ensuring
fair market
competition;
Conduction a
needs
assessment
survey and
drafting of
needs
basement
analysis for
detecting new
areas in
metrology
according to
industry
needs;
New longterm strategy
for research
activities of
the Bureau of
Metrology
developed
Training
sessions to
the accredited
bodies in the
area of
metrology
delivered.
55 55
ANNEX 6 – Past and ongoing assistance
Private sector development has been mostly supported through EU assistance, including
projects under CARDS programmes and regional projects The European Commission
currently provides funds through the IPA, especially through its 1st and 3rd Component, as well
as through possibilities for regional projects and union programmes. The measures identified
requiring assistance for institutional capacity building will complement the measures under the
regional development component and jointly improve the overall sector performance. So far,
IPA has funded several relevant programmes aiming at strengthening government
administrative capacity for protection of competition, for modernising the Employment
Service Agency and for coordination of social security systems and participation in EURES
(European Employment Services Network) in the framework of the Freedom of movement of
workers.
The following bilateral donors have been actively supporting business development and
competitiveness: Austria, Germany, Japan, Netherlands, Norway, Sweden, Switzerland, UK
and USA/USAID. Among the IFIs, the EBRD, EIB and World Bank Group have targeted
activities for this area. USAID IDEAS Programme having a duration of 4 years from the
beginning of 2011 and a budget of 4.8 million $ will mainly support: a) Industrial Policy
Implementation; b) Export promotion; c) Enhancement of the public – private dialogue.
USAID Competitiveness Project (budget about 10.millions $) contributes by providing
technical assistance to support foreign investments and enhanced linkages into global supply
chains for domestic firms. Project interventions are focused on alleviating constraints and
building capacity related to:
-Workforce development;
-Productivity, supply chain effectiveness and technology;
-Access to markets and financing;
-Infrastructural services, including industrial and logistical parks.
GIZ Investment and export promotion project works directly with clusters and companies on
increasing the capacities of the ICT cluster, Textile cluster and Automotive industry cluster in
the field of export promotion. The part of the project related to investment promotion is
realized in cooperation with “Invest Macedonia”, the Agency for Foreign Investment and
Export Promotion of the Republic of Macedonia.
Austrian Development Agency Project focuses on building capacities for creating an economy
based on knowledge. The project will last for 3 years from 01.07.2009 until 30.06.2012. The
aim of the project is promotion of entrepreneurship education, “innovation and knowledge”
and creating an economy based on knowledge that will contribute towards increased
competitiveness.
OECD will assist the MoE in the drafting of an “Innovation Strategy for the Republic 20122020”. This strategic paper is foreseen in the work programme 2011 of the MoE. This
document is expected to be prepared in 2011 with the TA of OECD. It will contain insights
about conditions and needs in the field of innovation as well as measures and
recommendations for its promotion.
World Bank provided TA for the preparation of an National extensible business reporting
language strategy (adopted in may 2011), the “Export Promotion Strategy” and National
5656
Tourism development strategy (both expected to be adopted by the government by the end of
2011) created First Innovation Scoreboard for Macedonia, One stop shop phase II (4 mil euro
for Hardware and software for online registration of companies, leasing contracts, pledge
contract, interoperability between Central register, Employment services agency, Health and
Pension funds for registering new employments) and financed technical assistance leading to
transposition of the EU acquis on Trans-european company law concepts (Societas Europea
and European Economic Interest groupings) as well as acquis on exercise of shareholder’s
rights. 5
Finally, UNCTAD supported the preparation of the new “Programme for Stimulating
Investments” that is also expected to be adopted by the government by the end of 2011.
Considering the need for greater aid efficiency and sustainable impact of available sources of
assistance, the Government has made efforts to introduce the Programme Based Approach
(PBA). A specific working group “Business Environment, Competitiveness, Innovation” was
formed to ensure on operational level efficient donor coordination, to avoid possible
overlapping and to align donor assistance with the national priorities which can be further
enhanced and supported. The working group composed of both national and donor
representatives undertook an assessment of the sector and selected the Industrial Policy as a
key comprehensive document which will be most applicable and form basis for further
implementation of the new concept.
The successful joint cooperation between the most relevant stakeholders in the sector provides
solid foundation for upgrading the remaining necessary elements of the PBA, ensuring
realization of the established priorities and envisaged measures.
In the process of harmonisation of the insurance legislation with the EU acquis, the Ministry
of Finance and ISA, since 2002 have been utilising EU and other technical assistance through
several technical assistance projects:
 GTZ technical assistance project for drafting Insurance Supervision Law – 2002;
 CARDS Technical assistance project (preparation of gap matrix for the level of
harmonisation of the ISL with the EU directives) – 2004;
 CARDS Technical assistance project (institutional capacity building of the
Ministry of Finance staff for effective supervision) – 2004;
 REPARIS TA project (preparation of by-laws in the area of financial reporting 2009;
 IPA TAIB 2008 project - Support to the Agency for Supervision of Fully Funded
Pension Insurance (MAPAS)
The above mentioned projects have been mainly directed towards harmonisation of the
insurance related regulation (laws and by-laws) with the EU directives (Solvency I regime) as
well as principles and standards for effective supervision of the IAIS. The result of the projects
is solid and thorough legislation framework, highly compatible with the EU requirements in
this area.
5
Except the Law on EEIG implementation that is in government procedure of adoption and is
expected to be adopted by the Parliament in October 2011, all other laws transposing EU business law acquis are in force (Law on SE, Law
on amending the company law)
57 57
The Financial System Department has previous experience with implementation of EU
financed project (CARDS project for technical assistance to the Ministry of Finance in the
field of insurance related legislation; CARDS project for technical assistance for institutional
capacity building of the Ministry of Finance, both in 2004). The Department will be
beneficiary of the IPA TAIB 2010 project “Further Harmonisation with EU Acquis in field of
Movement of Capital and Payments and Financial Services - Securities markets and
Investment services”, but its realisation has not started yet.
Under IPA TAIB 2007, the ISA is beneficiary of the Project - “Support to the Energy
Regulatory Commission and the Insurance Regulatory Agency“. The purpose of this project is
to contribute to a professional management of the relevant bodies that will enable appropriate
implementation of the national legislation, taking due account of EU regulations and best
practices, and appropriate provision of high quality services to the business community,
consumers and citizens in a transparent manner, and in which the public will have trust. With
regard the insurance supervision, the project purpose is to continue strengthening the
insurance supervision capacities and further development of the insurance supervision
activities performed by the ISA.
Drawing on the experience of the Ministry of Finance with the implementation of the EU
financed projects accumulated thus far, the main mistakes to be avoided and suggestions for
improvements are related to: a) providing the appropriate working conditions for the
consultants, especially placement of the consultants in the premises of the beneficiary, b)
allocation of dedicated administrative staff employed on permanent basis to work on the
project, which will improve staff capacity and provide a sustainability of the project activities;
c) involvement of the beneficiary from the very beginning in the evaluation of the background
and the experience of the experts to be engaged, so that they will be able to provide adequate
expertise and ensure delivery of high quality results (in some cases the Contractors did not
have sufficient background and lacked practical experiences to provide adequate expertise); d)
involvement and commitment of high-level strategic decision making structures from the
beginning of the project is important and essential for success and sustainability of the project
results. In addition, clear co-operation and communication will have to be established with
other related institutions (stakeholders), especially in the training activities.
3) WORLD BANK, BERIS - Business Environment Reform and Institutional Strengthening
project (loan) 31.10.2005 – 31.03.2010, c.a 3,5 Million. The second component of the BERIS
Project aims at addressing the enterprise sector's difficulties in competing in domestic and
foreign markets related to poor national MSTQ infrastructure and services. The overall objective
of this component is to strengthen the capacity of the national system to deliver EU-compatible
services. This will be done by:
- modernizing the national metrology infrastructure;
- strengthening the capacity of the MSTQ institutions to carry out their mandate in an EUoriented environment;
- increasing business sector awareness of the challenges and opportunities of competing in the
EU market;
- Assisting in drafting a development strategy, including reviewing the institutional and
legislative framework, to bring the country closer to EU requirements.
4) GERMANY-GTZ Transposition of Technical EU Directives into Macedonian Legislation
and Establishment of quality infrastructure 01.01.2006 – 31.12.2008. The project provides
technical assistance in the following areas:
- Establishing 5 bylaws to ensure the fill application of the Product Safety Law
- Reform of the State Technical Inspectorate – new law on technical inspection
- Harmonizing legislation for motor vehicles with ECE and EC regulations.
5858
5) EU–CARDS 2006, Technical Assistance to Market Surveillance, 14.05.2007 – 13.10.2008,
The main objectives of this project ware:
- To simplify and liberalize the legislation regulating market surveillance
- To provide support to the MoE for proper enforcement of the product safety legislation
- To support the implementation of the Law on the State Market Inspectorate
- To improve SMI institutional and technical capacity
- To increase public awareness of the new rules.
Through the CARDS programme extensive support – that is now completed - has been provided
to the sector, including:
CARDS 2001, SMAQva, “Technical Assistance to the Institutes for Standardisation, Metrology,
Accreditation and Quality Validation”,
CARDS 2003, SMAQva II, “Technical Assistance to the Institutes for Standardisation,
Metrology, Accreditation and Quality Validation”, 15.12.2004 – 15.11.2005,
With support from the EU CARDS - SMAQVa Projects, progress was made in procurement of
metrology equipment for 9 metrology laboratories of the Bureau of metrology and base training
for potential laboratory staff was provided. The equipment provided in all laboratories (mass,
temperature, electricity, flow and volume, length and angle, pressure, time and frequency) is
installed and functional but the laboratories are not fully completed. With the equipment
provided, the laboratories started to offer calibration services to interested parties (industry,
second level calibration laboratories, verification laboratories and etc.). However, the services
provided cover only limited areas and do not cover all the mandated areas of the BoM. In this
context, one of the main the priority is to further develop the national metrology infrastructure,
including mechanical, electrical, temperature, acoustic, and chemical equipment, as well as
reference measurement standards and also to acquire calibration practices for the existing
equipment in BoM.
CARDS 2006, Technical Assistance to Market Surveillance, 14.05.2007 – 13.10.2008,
The main objectives of this project were:
- To simplify and liberalize the legislation regulating market surveillance
- To provide support to the MoE for proper enforcement of the product safety legislation
Support by other agencies included:






UK/DFID As part of the Public Administration Reform, in the area of free movement
of goods, significant efforts were directed towards developing an action plan for the
following key issues:
Horizontal and procedural measures concerning the management, intra-ministerial
and international coordination, including transposition of legislation, etc.
Restructuring of the infrastructure in the relevant fields: standardisation,
accreditation and quality validation, metrology and market surveillance.
for general development of the metrology infrastructure in the country and for the
development of BoM;
Improvement of cooperation of BoM with relevant metrology stakeholders.
Preparation of a list of equipment with analytical specification for public
procurement
5959











Component 2: Capacity building in Legal Metrology
Further alignment with the EU acquis in the area of metrology;
Development of the capacity of BoM, both human and institutional, to implement
harmonised legislation in the field of pre-packages and measuring container bottles;
Development of the capacity of BoM, both human and institutional, to became a
CAB for measuring instruments in the scope of NAWI and MID following the needs
of the local producers;
Conformance of BoM's quality manual and general operating practices with ISO/IEC
17020 for a number of services in the area of legal metrology;
Component 3: Capacity building in Scientific & Industrial Metrology
Training of staff of BoM Laboratories for to deliver high quality calibration services
by effective use of the available equipment;
Implementation and peer-assessment of a quality management system following
ISO/IEC 17025 for calibration services;
Development of the capacity of BoM staff to present its quality management system
and submit CMCs entries for review to EURAMET;
Understanding of BoM staff on EURAMET guides and CIPM MRA requirements
and procedures.. The purpose of this project is to strengthen the capacity of the
Bureau of Metrology (BoM) to: transpose and implement harmonized legislation in
the area of metrology and pre-packaging; provide high quality services to the
business community, consumers and citizens, and conformity assessment bodies;
In the field of Standardisation, through the national CARDS program, the
SMAQVа project ”Technical support for the institutions for standardization,
metrology, accreditation and quality assessment” (2004-2005) was implemented
and result was the establishment of the internal structure of ISRM in compliance
with the needs and requirements of European standardization; preparation of basis
for creation of database for Macedonian standards and ISRM technical committees
inclusive of training workshops for ISRM employees. Other project in this area
include: Regional Community assistance for reconstruction, development and
stabilisation - CARDS program 2002 for quality infrastructure, Regional
Community assistance for reconstruction, development and stabilisation - CARDS
2006 a regional project for quality infrastructure, IPA 2008 Regional Programme
on Quality Infrastructure in the Western Balkans and Turkey , IPA 2008 project
“Support to free movement of goods - quality infrastructure”, component “Support
to the Institute for Standardisation” (on going)
Statistics
The harmonization of statistics with EU requirements was subject of several projects financed
by EU and other donors. The national IPA 2007 and IPA 2009 projects are focused on
methodological improvements in different areas of statistics, development of a quality system,
further harmonisation and improvement of national accounts, business and social statistics, as
well as improvement of IT systems.. Further implementation of CoP principles that need
further improvement of quality of statistical production is to be achieved through this project.
The purpose of the IPA 2009 Multi-beneficiary statistical cooperation programme, is to
improve the quality of statistical information and reinforce confidence in methods and
professionalism, thus providing policy makers and the international community with
unquestioned statistical data. Continue the process of progressively integrating the State
Statistical Office into the European Statistical System (ESS) and continue to support sustainable
capacity building.
6060
Standardisation
 CARDS program 2002 for quality infrastructure - Within the scope of this project,
the employees of ISRM have participated in several training workshops such as:
standards data base development, public relations of national bodies for
standardization and technical terminology:
 CARDS 2006 a regional project for quality infrastructure - Within the scope of this
project, several trainings (HOTs) were implemented for the ISRM employees: 1.
Workshop for data management software applicable for standardization activities;
2. Trainings for technical secretaries and chairmen of TCs; 3. Training for
standards in the field of construction; 4. Training for notification procedures etc.
 IPA 2008 Regional Programme on Quality Infrastructure in the Western Balkans
and Turkey - The objective of this project was to facilitate intra-regional trade and
the free movement of goods with a view to improving the competitiveness of the
economy in the region and preparing the beneficiaries for future accession
negotiations with the EU. Within the scope of this project one training for technical
secretaries and chairmen of TCs was organised;
 IPA 2008 project “Support to free movement of goods - quality infrastructure”,
component “Support to the Institute for Standardisation” (on going) - The purpose
of this project is to strengthen the managerial, technical, financial and
administrative capacities of the ISRM, in order to support fulfilling of the
conditions for full membership in CEN and CENELEC. That is to be achieved
through: (i) establishing of national standardisation infrastructure fully operational
for participation in the work of European and international organisations for
standardisation; (ii) development and implementation of internal rules for
standards making process, copy rights, sale and distribution of standards; and (iii)
development of technical features of the necessary hardware and software
applications, putting in function the hardware, and completion of the customisation
of the software.
Support in tax legislation
The harmonization of tax legislation in line with EU acquis was subject of several projects
financed by GTZ (now GIZ). GTZ (now GIZ) 10/2007 – 12/2009 –Harmonisation of the
Macedonian tax legislation in line with the acquis; GTZ (now GIZ)07/2009 – 12/2011 Reform in line with EU VAT Law; GTZ (now GIZ) 01/2012 -07/2013 –Reform of the
Macedonian tax system. These projects were aimed at harmonisation of the national legislation
with acquis in the field of Excise duties and Tax procedure.
Additional assistance is needed for further harmonisation of the legislation in the field of VAT.
Current activities of the national authorities are focused on drafting the new VAT law.
61 61