In-depth Business Intelligence

Key Economic Data 
  2002 2001 2000 Ranking(2002)
Millions of US $ 3,712 3,400 3,600 118
GNI per capita
 US $ 1,700 1,690 1,830 116
Ranking is given out of 208 nations - (data from the World Bank)

Books on Macedonia


Area ( 




Branko Crvenkovski

Private sector 
% of GDP 


Update No: 091 (26/11/04)

Ochrid agreement upheld in referendum
Some of Macedonia's districts will come under control of the representatives of the Albanian minority, following the results of the referendum on November 7th on the new territorial division held in the former Yugoslav republic. Only about 450,000 citizens out of 1.7 million people, or some 26%, entered into electoral lists participated in the referendum, says the electoral committee of Macedonia.
A large majority of Macedonians who voted favoured annulling a law that redrew districts in the Balkan republic and made the ethnic Albanians a dominant force in 16 out of 84 districts - effectively granting Albanians a large degree of self-rule. But the measure failed because voter turnout was just 26.2 per cent, well below the 50 per cent minimum needed, according to official results. 
Experts attribute the low turnout to the fact that the northern and western regions of Macedonia where mostly Albanians live actually completely boycotted the referendum. Ethnic Albanians account for about a quarter of Macedonia's population.
Therefore, the law on the division of the republic into "Macedonian" and "Albanian" enclave areas, which was supported by most of the parties forming the governmental coalition, is to automatically come into force. 
The law on the country's new territorial arrangement is stipulated in the 2001 Ochrid peace agreement. Under the agreement, some districts of Macedonia are to come under the control of the representatives of the Albanian minority. 
"The referendum's outcome shows that most Macedonian citizens support the reform of the local self-government system, which will ensure the country's Trans-Atlantic future," one of the leaders of the ruling Social Democratic Union of Macedonia, defence minister Vlado Buchkovski, said. 
The poll was the initiative of the leaders of the Macedonian opposition. On the eve of the referendum, they urged their supporters to come in large numbers to the polling stations to express their disagreement with the country's division approximating the Albanian proportion of the population.

International approval of the referendum result
The referendum that failed to revoke self-rule for minority ethnic Albanians in Macedonia met democratic standards, international monitors said on November 8th, but hard-line opposition parties claimed widespread irregularities and vowed to challenge the results in court. 
Hard-line Macedonian opposition parties, which had demanded the referendum, said they would challenge the turnout figures in court, alleging widespread irregularities. 
''We will challenge (the results) every way we can,'' said Todor Petrov, leader of the Macedonian World Congress party. 
But monitors from the Organization for Security and Cooperation in Europe and the Council of Europe said the referendum ``was generally consistent'' with internationally accepted democratic standards. 
''Limited cases of reported procedural and other irregularities did not appear to challenge the overall integrity of the process,'' they said. 
Opponents of the new laws argued that the legislation gave ethnic Albanians - who account for about one-fourth of Macedonia's 2 million people - control over western Macedonia, near the border with Albania, and could lead to the country's break-up. 
The law, approved earlier this year, was part of a Western-brokered peace deal to end government clashes with ethnic Albanian rebels three years ago. International officials had warned that revoking rights for ethnic Albanians could destabilize the country and undermine the former Yugoslav republic's chances of joining the European Union and NATO. 
President Branko Crvenkovski appealed to Macedonians to put aside ethnic divisions. He invited ethnic leaders to meet on November 10th at the lakeside resort of Ochrid, where the peace deal was signed in 2001, to reiterate ''our political will and commitment of Macedonia to continue on its path toward stability, democracy, multiethnic tolerance and full integration into the European Union and NATO.'' 

The US makes a timely concession
In a concession to nationalist sentiment gratifying to the defeated opposition, the US government has recognized the country's name as 'the Republic of Macedonia,' a designation previously withheld because of the objections of the Greek government on the grounds of the province of Macedonia in Greece of the same name. 
The Greeks who ten years ago were moving troops to the border, such was their excitement over this issue, have not re-acted strongly to this development, doubtless realising by now the truth of the old dictum; "What's in a name." 



EBRD provides 45m for ESM pre-privatisation

European Bank for Reconstruction and Development (EBRD) provided 45m for the pre-privatisation process of the Macedonian-based Electric Power Co (ESM), which is to end in the next 24 months, according to MIA recently. Economy Minister Stevco Jakimovski, ESM Director Pande Lazarov and EBRD Director Antony Marsh signed the agreement. Jakimovski said the signing of this agreement demonstrates the interest in the electric power system in the country. Expressing satisfaction for EBRD participation in the ESM privatisation process, Marsh said their participation will encourage other investors, who after the decreased interest in investment in the energy sector in the past months, are again starting to show interest.




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