Swiss Cooperation Strategy Macedonia 2017-2020

 
Swiss Cooperation Strategy Macedonia 2017-2020
Swiss Cooperation
Strategy
Macedonia
2017-2020
Swiss Cooperation Strategy Macedonia 2017-2020
Swiss Cooperation Strategy Macedonia 2017-2020
Foreword

       Stability and prosperity of the Western Balkan coun-       This document provides an overview of recent po-
       tries constitute a fundamental aim for Swiss foreign       litical and economic developments, and lays out the
       and security policy. Switzerland’s engagement in the       rationale for the Swiss Cooperation Strategy Mac-
       region was initiated in the 1990s, by providing hu-        edonia 2017-2020. It draws implications from past
       manitarian assistance and refuge for many people.          achievements and experiences and outlines the pri-
       Switzerland and the Balkans have developed close           orities and objectives for the upcoming period. It
       ties over the years, best documented by a sizeable         concludes with information about program manage-
       diaspora living in Switzerland and an intensive coop-      ment, monitoring and steering.
       eration programme. More than 500’000 residents of
       Switzerland have family ties to the Western Balkans.       The Swiss Cooperation Strategy 2017-2020 has been
                                                                  developed by the Swiss Agency for Development
       Switzerland has been supporting Macedonia’s po-            and Cooperation (SDC) and the State Secretariat for
       litical, social and economic transition processes since    Economic Affairs (SECO), in close consultation with
       1992. Today Switzerland ranks among Macedonia’s            Macedonian government offices and civil society
       largest bilateral cooperation partners. Bilateral agree-   partners. Both institutions, represented by the Swiss
       ments between the Governments of Switzerland and           Embassy in Macedonia, closely cooperate and coor-
       Macedonia underpin this trusted partnership.               dinate in the implementation of their respective parts
                                                                  of the Cooperation Strategy.
       Macedonia has made significant achievements since
       its independence. The Swiss Cooperation Strategy           We are confident that the goals and priorities set out
       Macedonia 2017-2020 is the expression of Switzer-          in this strategy are particularly relevant to the sustain-
       land’s commitment to continue supporting Macedo-           able development of Macedonia and the well-being
       nia in addressing remaining challenges in its political,   of its people.
       social and economic transition. It focuses on three
       thematic domains: Democratic governance, Employ-
       ment and Economic Development, and Infrastructure
       and Environment. Switzerland has relevant expertise                                          Berne, February 2017
       in all three domains and is confident that it can make
       an effective contribution to the further development
       of Macedonia. The foreseen financial commitments
       for the period 2017-2020 amount to 76 million Swiss
       francs.

       Swiss Agency for Development                               Swiss State Secretariat for
       and Cooperation (SDC)                                      Economic Affairs (SECO)

       Manuel Sager                                               Marie-Gabrielle Ineichen-Fleisch
       Director-General                                           State Secretary
Swiss Cooperation Strategy Macedonia 2017-2020
Table of contents

         Foreword                                                               3

         Table of Contents                                                      4

         Abbreviations and Acronyms                                             5

         Executive Summary                                                      6

         1   Context Analysis                                                   8

         2   Rationale for the Swiss Cooperation Strategy for Macedonia         11

         3   Results and Experience of the Cooperation Strategy 2013-2016       12

         4   Implications for the Cooperation Strategy 2017-2020                15

         5   Priorities and Objectives for the Cooperation Strategy 2017-2020   16

             5.1 Democratic Governance Domain                                   16

             5.2 Employment and Economic Development Domain                     17

             5.3 Infrastructure and Environment Domain                          18

         6   Programme Implementation and Management                            19

         7   Strategic Steering                                                 21

         Annex 1: Swiss Cooperation Strategy for Macedonia at a Glance          22

         Annex 2: Results Framework                                             23

         Annex 3: Monitoring System                                             34

         Annex 4: Indicative Budget Allocation                                  35

         Annex 5: Map of Macedonia                                              36

         Annex 6: Scenarios                                                     37

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Swiss Cooperation Strategy Macedonia 2017-2020
Abbreviations and Acronyms

        ADKOM   Association of Macedonian providers of public services
        CBO     Community Based Organisation
        CS      Cooperation Strategy
        CSI     Civil Society Index
        CSOs    Civil Society Organisations
        CSPM    Conflict Sensitive Programme Management
        EU      European Union
        FiBL    Research Institute of Organic Agriculture
        GDP     Gross Domestic Product
        GIZ     Deutsche Gesellschaft für Internationale Zusammenarbeit
                (German Agency for Development and Cooperation)
        IDSCS   Institute for Democracy “Societas Civilis” Skopje
        IFC     International Finance Corporation
        ILO     International Labour Organization
        IMF     International Monetary Fund
        IRI     Integrative Research Institute
        KfW     Kreditanstalt für Wiederaufbau (German Reconstruction
                Credit Institute/Development Bank)
        MCIC    Macedonian Centre for International Cooperation
        MERV    Monitoring System for Development Related Changes
        MPs     Members of Parliament
        NDI     National Democratic Institute
        NGO     Non-Governmental Organization
        NIRAS   International Consulting Company
        ODA     Official Development Assistance
        PI      Parliamentary Institute
        PU      Public Utility
        SDC     Swiss Development Cooperation
        SECO    State Secretariat for Economic Affairs
        SMEs    Small and Medium Sized Enterprises
        UNDP    United Nations Development Programme
        USA     United States of America
        USAID   United States Agency for International Development
        VET     Vocational Education and Training
        WB      World Bank
        WEF     World Economic Forum
        WFD     Water Framework Directive

                                                                          5
Swiss Cooperation Strategy Macedonia 2017-2020
Executive Summary

        Switzerland supports the transition of former com-         wiretaps. The political future of the country remains
        munist countries in Eastern Europe to democracy and        nevertheless uncertain. The most likely scenario is a
        social market economies. This active engagement is         government that continues to follow an externally-
        based on its tradition of solidarity and is in Switzer-    driven reform agenda linked to the prospect of Euro-
        land’s interest, as transition assistance opens up eco-    pean and transatlantic integration.
        nomic opportunities for Switzerland and new jobs
        offer alternatives to migration.                           Following years of annual GDP growth of 3 to 4%,
                                                                   the domestic crisis is threatening progress towards
        The Republic of Macedonia is a multi-ethnic state          macro-economic stability and building a market
        with a population of just over two million. The Ohrid      economy. Public debt has grown, surpassing 50%
        Framework Agreement ended a short armed-conflict           of GDP in 2016. The economy faces structural prob-
        in 2001 and laid the basis for non-discrimination          lems, characterized by low value-added production
        and equitable ethnic representation; it marked the         and the lowest wages in the region. Poverty, in re-
        start of decentralisation. Macedonia received EU can-      lation to the national poverty threshold, and socio-
        didate country status in 2005, but the opening of          economic disparities are high. Especially the unem-
        accession negotiations has been repeatedly blocked.        ployed, youth, Roma and the disabled are at risk of
        Recent years have been marked by an increasingly           poverty or social, political and economic exclusion.
        fragile and polarized political environment. In early      Environmental challenges remain significant, with
        2015, the main political parties traded blame for il-      relevant indicators significantly below EU levels. The
        legal wiretaps, igniting a wave of public protests         implementation of water and nature legislation and
        across ethnic lines. In an effort to strengthen the rule   strategies is delayed. Climate change jeopardises
        of law a Special Prosecution Office was created to         already fragile income sources and livelihoods. En-
        investigate allegations of wrongdoings and corrup-         vironmental organizations and pressure groups face
        tion brought to light by the publication of the illegal    difficulties mobilizing a critical mass for change.

6
Swiss Cooperation Strategy Macedonia 2017-2020
The Swiss Cooperation Strategy 2013-2016 built on          and governance are transversal themes; youth, Roma
Switzerland’s relevant expertise by working through        and disabled persons are particular target groups and
drivers of change. Tangible results were achieved,         partners in action.
notably in strengthening decentralisation, creating
employment and protecting water resources. How-            In democratic governance, Switzerland will strength-
ever, the political crisis and fragile democracy call      en the legitimacy of institutions, thus enabling more
for adaptations. Most importantly, there is a need to      accountable and inclusive policy processes; it will
foster systemic commitment to social, political and        promote dialogue between citizens, CSOs and pub-
economic inclusion as well as to create and better         lic institutions to ensure better responsive policies
use spaces for policy dialogue.                            and practices. In employment and economic devel-
                                                           opment, Switzerland will embark on strengthening
Macedonia’s various sectoral development strategies,       training and job-matching service providers in order
the Federal Dispatch for Switzerland’s International       to increase employability and ease access to jobs,
Cooperation and the EU accession-related require-          especially for youth and the socially excluded; it will
ments provide the overarching framework for the            support framework conditions and help strengthen
Swiss Cooperation Strategy 2017-2020. The overall          the entrepreneurship ecosystem to increase the com-
goal of the new strategy is to support Macedonia           petitiveness of start-ups and SMEs. In infrastructure
in its reforms to meet European standards, build a         and environment, Switzerland will strengthen natu-
socially-inclusive democracy as well as market econo-      ral resources governance to protect the environment
my, while ensuring sustainable governance of natural       and reduce climate change-related impacts; it will
resources. The three Swiss portfolio priorities are: (1)   work towards better service delivery of municipali-
democratic governance at central and local levels; (2)     ties and public utilities in the areas of water supply,
sustainable economic growth and employment for             wastewater and solid waste.
youth and other socially excluded groups; and (3)
sustainable natural resources governance and equi-
table access to quality public utility services. Gender

                                                                                                                7
Swiss Cooperation Strategy Macedonia 2017-2020
1. Context Analysis

         After the break-up of the Federal Yugoslav Republic        Macedonia downgraded to ‘not free’ in the 2016
         in 1991, the Republic of Macedonia re-emerged as           Freedom House report on Freedom of the press.
         an independent, multi-ethnic state. The last census,
         conducted in 2002, counted a population of just over       In early 2015, the main political parties traded blame
         two million, principally composed of communities of        for illegal wiretaps, in which more than 20,000 people
         ethnic Macedonians (64.2%), Albanians (25.2%),             were monitored. For the first time in recent history,
         Turks (3.9%), Roma (2.7%) and Serbs (1.8%).                citizens across ethnic lines took to the streets together
                                                                    in protests aiming at expressing their outrage at the
         In 2001, the Ohrid Framework Agreement ended a             alleged abuses of power and demanding accountabil-
         short inter-ethnic armed conflict and laid the nor-        ity from political leaders. Agreements between politi-
         mative basis for non-discrimination, equitable ethnic      cal parties on how to defuse the crisis were brokered
         representation and the use of minority languages. It       by the EU and the USA. The Przino Agreements en-
         also marked the start of political, administrative and     visaged legal and electoral reforms; de-politicization
         fiscal decentralisation. However, a 2015 review of         of the public administration; freedom of expression;
         the Agreement highlighted limited fiscal decentrali-       a technical government to bring the country to early
         sation, little autonomy of local governments, lack         elections; and the creation of a Special Prosecution
         of accountability and transparency in government           Office to investigate wiretapped material. Following
         financial transfers to municipalities, and under-rep-      two postponements, the parliament decided to hold
         resentation of non-majority communities in public          early elections in December 2016.
         institutions. The two main ethnic groups - ethnic
         Macedonians and Albanians - often live in parallel         Despite years of economic growth, poverty levels
         societies, characterized by segregate settlements,         and socio-economic disparities, including inequalities
         separate schools and strongly ethnic-coloured poli-        across ethnic groups and the regions, are consist-
         tics and rhetoric. As in wide parts of the Balkans,        ently high in Macedonia. In 2014, more than 35%
         especially the Roma face heavy discrimination and          of the population was severely materially deprived;
         exclusion.                                                 over 40% was at risk of poverty or social exclusion,
                                                                    especially the unemployed, youth, Roma and the
         The initial implementation of the Ohrid Framework          disabled.1 As a result, popular discontent has begun
         Agreement and visible progress in economic, social         to show, kindling civic protests and giving birth to
         and environmental development paved the way for            critical grassroots movements and the potential risk
         receiving EU candidate country status in 2005. More        of renewed inter-ethnic conflict needs to be ob-
         than ten years later, unsatisfactory progress towards      served closely. The country is also directly affected
         the adoption of the EU acquis and the ongoing dis-         by the global refugee crisis, with the main migration
         pute with Greece over the country’s name still ham-        route from the Near East to Western Europe passing
         per the start of formal membership negotiations.           through its territory and posing yet another political,
                                                                    social and security challenge to authorities.

         Polarized political environment                            Looking ahead, the political future of the country
                                                                    remains uncertain. The most likely trend, no matter
         During a relatively stable 2nd decade of independ-         which political parties are in power, is a sustained
         ence, Macedonia built a fairly functional government       “opportunistic” government that follows a mainly
         and democratic institutions. The more recent years,        externally-driven reform agenda linked to the pros-
         however, have been marked by slowing reforms               pect of European and transatlantic integration (An-
         and an increasingly polarized political environment,       nex 5). However, “stability” in the sense of sustain-
         bearing elements of state capture by political parties:    ing the status quo is not a desirable prospect.
         undermined parliamentary and judiciary roles, po-
         liticization of public institutions, and an increasingly   1 The “at risk of poverty or social exclusion” (AROPE) indicator -
                                                                    as used in EU social policies and referred to by the Government of
         exclusive and non-participatory vision for further         Macedonia - takes into account relative monetary poverty, severe
         nation-building. Media freedom deteriorated, with          material deprivation and households with very low work intensity.

8
Swiss Cooperation Strategy Macedonia 2017-2020
row.3 Due to the lack of perspectives, an estimated
                                                              500,000 working-age people, including many young
                                                              people, have emigrated over the past 25 years.

                                                              Gender gaps and inequalities

                                                              Despite legal and policy reforms aimed at improving
                                                              the status of women in Macedonia, gender gaps and
                                                              inequalities exist in all aspects of life. The worldwide
                                                              existing structural barriers, such as unequal distribu-
                                                              tion of unpaid work between women and men, pro-
                                                              fessional segregation or the gender pay gap, are also
                                                              present in Macedonia and hampering the achieve-
                                                              ment of full and substantial equality of women. As a
                                                              result women do more hours in domestic work and
                                                              care for children, the elderly and sick family mem-
                                                              bers, limiting their own personal time for develop-
                                                              ment and paid careers. Only 43.1% of women in
Macro-economic stability and economic                         Macedonia participate in the labour market as op-
growth at risk                                                posed to 67.5% men.4 There is an obvious need for
                                                              economic and social policies effectively addressing
In the 2000s and early 2010s, Macedonia enjoyed               continued stereotyping, and the direct and indirect
sustained economic growth and made significant                discrimination of women and the socially excluded
progress towards achieving and maintaining macro-             groups such as the poor, the elderly, the disabled and
economic stability and building a market economy.             members of smaller ethnic groups.
However, the ongoing domestic political crisis is in-
creasingly affecting private sector investment despite
continued government measures to improve the                  Significant environmental challenges
business environment and boost job creation, such as
tax exemptions for investors and lighter registration         Environmental indicators for Macedonia remain sig-
procedures. This led to a deceleration of the annual          nificantly below EU levels, although on par with re-
GDP growth of 3 to 4% only. The economy faces                 gional averages. On the plus side, water supply ser-
structural problems, characterized by low value-add-          vices reach almost 100% of urban and around 65%
ed production and the lowest wages in the region.             of rural households. With some exceptions, supplied
Public debt has constantly grown over the past eight          water is generally potable. However, only 15% of
years, surpassing 50% of GDP in 2016, and therefore           the population benefits from functioning wastewa-
overshooting the IMF-recommended debt threshold               ter treatment. Solid waste is mainly deposited in il-
of 50%. Doing business in Macedonia is furthermore            legal dump sites, often in ecologically-sensitive areas.
hindered by limited access to financing, corruption,          Heavily polluted rivers, air and agricultural land, un-
an inadequately educated and trained workforce,               controlled exploitation of available natural resources,
and affected work ethics. In this fragile macro-eco-          and missing implementation of environmental frame-
nomic context, remittances from the Macedonian                works are seriously affecting the social and economic
diaspora play an important role: According to an IMF          value of the environment. Additional challenges are
analysis, personal transfers have been ranging from           climate change-related impacts, such as floods and
13 to 21% of the country’s GDP in the past years2,            droughts, which jeopardise already fragile income
sufficient to cover the trade deficit. Remarkably, over       sources and the livelihoods of farmers and the popu-
11% of the remittances come from Switzerland.                 lation in rural areas.

                                                              Financial, technical and human resources are still
Dismal perspectives for the young and                         lacking at all administrative levels to fulfil internation-
unemployed                                                    al conventions, treaties and agreements, to which
                                                              Macedonia is party, and to comply with EU environ-
Very high unemployment persists. Youth suffer par-            mental acquis. The government continues to prepare
ticularly, the main reason being inadequate skills. In        legislation, strategies and actions plans, but imple-
the 2nd quarter 2016, the unemployment rate was               mentation is delayed and incomplete. Environmental
24% among the whole population and 49% among                  organizations and pressure groups are motivated but
youth. In the last four years, the gender gap in eco-         face difficulties mobilizing a critical mass for change.
nomic participation and opportunity has failed to nar-
                                                              3 Macedonia ranked 69th of 145 countries on the 2015 WEF Global
                                                              Gender Gap Index (Serbia 45th, Albania 70th, Switzerland 8th).
2 IMF Selected Issues: Remittances and economic development   4 UN Women, 2016, Progress of the World’s Women 2015-
in Macedonia, 2014                                            2016, Annex 2.

                                                                                                                           9
Swiss Cooperation Strategy Macedonia 2017-2020
10
2. Rationale for the Swiss Cooperation
   Strategy for Macedonia

         As part of its transition assistance, Switzerland sup-     edonia contributes to the seven strategic objectives
         ports former communist countries in Eastern Eu-            of the Federal Dispatch3 (see Box below).
         rope on their paths to democracy and social market
         economies. Despite obvious progress, there remains
         a backlog of reforms in areas such as decentraliza-          1. Respond to global challenges in the areas of
         tion, rule of law, economic development and pub-                climate change and the environment, food
         lic services. Switzerland’s transition assistance in            security, water, health, migration and devel-
         the region is based on a mutual interest in inclusive           opment
         socio-economic development, stability, security and          2. Prevent and manage the consequences of
         European integration and motivated by Switzerland’s             crisis and disaster, and of fragility; promote
         solidarity with the poor and excluded and the respect           conflict transformation
         for human rights. Further transition assistance opens        3. Support sustainable access to resources and
         up economic opportunities for Switzerland and new               services for all
         jobs offer alternatives to migration.                        4. Promote sustainable economic growth
                                                                      5. Strengthen the rule of law and democratic
         Given the considerable diaspora1 and geographical               participation; support institutions serving so-
         vicinity, it is in Switzerland’s interest that Macedonia        ciety and the economy
         develops into an inclusive, prosperous and demo-             6. Ensure the respect for human rights and fun-
         cratic state. SDC and SECO have shared responsibility           damental liberties, and support efforts to ad-
         for Switzerland’s transition assistance to Macedonia            vance their cause
         since over two decades. Since the EU became the              7. Strengthen gender equality and the rights of
         major development partner in Macedonia, bilateral               women and girls
         assistance from most EU countries has significantly
         reduced. Switzerland, together with Germany and
         the USA, remains one of the last significant bilateral     The new strategic cycle will provide an opportunity
         donors. Total ODA makes up about 2.2% of GDP.2             to effectively address social, political and economic
         Although the formal responsibility for donor coordi-       shortcomings that manifest themselves in poverty,
         nation lies with the Macedonian Government, donor          socio-economic disparities, the exclusion of parts of
         coordination in practice largely depends on individ-       society and socio-political fragility. Increasing focus
         ual donors’ initiatives with Switzerland taking on a       will be put on addressing social exclusion as a source
         prominent role.                                            of fragility of the society.

         Macedonia’s national development policies and sec-         Accordingly, the overall goal of Swiss engagement
         tor strategies, EU accession-related reforms, includ-      for the period 2017 to 2020 is to support Macedo-
         ing the urgent reform priorities related to the Przino     nia in its reforms to meet European standards and
         Agreement, and the Federal Dispatch for Switzer-           build a socially-inclusive democracy and market
         land’s International Cooperation 2017-20 provide           economy, while ensuring sound governance of natu-
         the general frameworks for this Cooperation Strat-         ral ­resources.
         egy. The Government of Macedonia’s strategic pri-
         orities for the period 2014 to 2018 include: EU and
         NATO integration; improved economic growth and
         employment; fight against corruption and enforce-
         ment of rule of law; good inter-ethnic relations; im-
         plementation of the Ohrid Framework Agreement;
         and investment in education. Cooperation with Mac-

         1 Switzerland is home to a Macedonian diaspora of around
         80,000 people.                                             3 Dispatch on Switzerland’s International Cooperation 2017 –
         2 2014: WB data; nominal GDP USD11.32bn, per capita        2020: https://www.eda.admin.ch/deza/en/home/sdc/strategy/legal-
         USD5,455; ODA 2014: USD211m.                               bases/message-international-cooperation-2017-2020.html

                                                                                                                                 11
3. Results and Experience of the
   Cooperation Strategy 2013-2016

                          During the period 2013 to 2016, Switzerland contin-     palities have meanwhile institutionalized such Com-
                          ued to work in governance and the water sector. In      munity Forums. Thanks to these, citizens, including
                          view of weak economic perspectives and persistent       members of ethnic minorities, have the possibility to
                          high unemployment, economic development was re-         actively participate in local decision-taking (average
                          introduced as a third domain of intervention. Gender    of 90 people/forum). Women participation increased
                          and good governance were mainstreamed through-          steadily over the years, reaching today an average of
                          out.                                                    over 40%. For example, Community Forums were
                                                                                  instrumental in deciding how to use small grants
                          Democratic governance and decentralization:             provided to municipalities as part of interventions
                          Democratic governance and decentralization is the       under the water domain (e.g. improvement of village
                          longest-standing domain of cooperation in Mac-          water-supply or sewerage systems). Switzerland also
                          edonia. Despite considerable contextual challenges,     promoted balanced regional development. Through
                          Switzerland was able to strengthen democratic val-      its support for Regional Councils and Regional Devel-
                          ues and processes at local and central levels.          opment Centres, it contributed to reducing inequali-
                                                                                  ties between the regions. Additional €13m from na-
                                                                                  tional and EU funds were mobilized for 28 large-scale
 Key Accomplishments                                                              regional development proposals.

 •• Public participation in local decision-taking increased through Community     The Swiss-funded “Civica Mobilitas” programme is
    Forums                                                                        the largest civil society support programme in Mac-
 •• €13m for balanced regional development mobilized                              edonia. Since 2009, Civica Mobilitas has provided
 •• CSO legitimacy, voice and assertiveness strengthened                          small grants to 149 CSOs. Such grants have clearly
 •• Law-making capacities of national parliament improved                         strengthened CSO voices, constituencies and their
 •• Gender-responsive budgeting introduced                                        positioning in diverse aspects of the social change
                                                                                  process. For example, CSOs were instrumental in
                                                                                  proposing solutions to the political crisis following
                                                                                  the wiretapping accusations.

                                                                                  Thanks to Swiss cooperation, a non-partisan Parlia-
                                                                                  mentary Institute has been established to boost the
                                                                                  law-making capacities and overall performance of
                                                                                  the national Parliament. The Parliamentary Institute,
                                                                                  supported by Members of Parliament from both
                                                                                  the ruling and opposition coalitions, has started to
                                                                                  strengthen the quality of the legislative process.

                                                                                  As part of its commitment to gender equality, Swit-
                                                                                  zerland supported the introduction of gender-re-
                                                                                  sponsive programming and budgeting in Macedonia.
                                                                                  Instructed by the Ministry of Finance, line ministries
                                                                                  have started to incorporate gender equality principles
                                                                                  into their budget processes.

                                                                                  Economic development: Although a new domain,
                                                                                  considerable results were achieved, thanks also to a
                                                                                  strong focus on economic governance. With Swiss
                                                                                  support, the economic system is adjusting towards a
                          Switzerland has successfully introduced participatory   social market-based economy that promotes growth
                          Community Forums to Macedonia. 59 (of 81) munici-       and creates jobs and income opportunities.

12
Thanks to Swiss engagement in the economic devel-      Switzerland has started to promote equal job and
                        opment sector, 979 persons were newly employed in      income opportunities. A project following the mar-
                        2015, corresponding to 8% of all newly-employed in     ket system development approach aims at engaging
                        the country. At least two-thirds were women, youth     especially women and youth in decent (self-) em-
                        or persons at risk of social, political and economic   ployment in green economy, creative industries and
                        exclusion. More Roma than ever are benefiting from     tourism. Thanks to Swiss support, the government is
                        active support to find jobs or become self-employed.   providing special agricultural subsidies to historically
                                                                               underserved rural women and young farmers. Com-
                                                                               panies hiring socially excluded people such as Roma
Key Accomplishments                                                            and those with disabilities can now benefit from a
                                                                               special tax exemption.
•• 979 persons newly-employed in 2015, mostly women, youth and Roma
   (8% of all newly-employed)                                                  Water: Switzerland was the only bilateral donor
•• CHF 3m in additional sales for Macedonian SMEs                              with a substantial engagement in the water sector,
•• Government scheme of special agricultural subsidies for rural women and     which has long suffered from low attention by the
   young farmers                                                               authorities. Switzerland was instrumental in devel-
•• Special tax exemption for companies hiring socially excluded people         oping environmental framework conditions in line
                                                                               with EU standards, improving public water supply
                                                                               and wastewater services, and conserving nature and
                        With Swiss support, the professionalism and compet-    water quality.
                        itiveness of SMEs has been enhanced. New technolo-
                        gies and management and corporate governance           Switzerland engaged with the authorities to improve
                        practices were introduced in 307 SMEs. Business        the framework for implementing the Law on Water
                        training improved the knowledge of hundreds of         and the Law on Nature. It supported, among others,
                        entrepreneurs. Six innovative financial instruments    the elaboration of the National Strategy on Nature;
                        and new funds amounting to CHF21m increased            and River Basin and Flood Risk Management Plans.
                        their competitiveness. As a result, beneficiary SMEs
                        recorded CHF3m in additional sales on international    In selected locations, Switzerland helped to improve
                        and domestic markets.                                  water resource management. Thanks to Swiss invest-
                                                                               ments, roughly 60,000 inhabitants of Gostivar and its
                                                                               surrounding villages benefit from a new drinking wa-
                                                                               ter reservoir and an improved water supply network.
                                                                               Approximately 50% of Bregalnica region inhabitants
                                                                               (around 90,000 persons) enjoy improved water ser-
                                                                               vices and a healthier environment.

                                                                               Switzerland has contributed to nature protection
                                                                               and conservation. The Swiss-funded Lake Prespa
                                                                               Ecosystem Restoration Project built the capacities of
                                                                               the environment department of the municipality of
                                                                               Resen to address water governance issues, includ-
                                                                               ing through the establishment of a water quality
                                                                               monitoring system. It intervened with apple farmers,
                                                                               one of the area’s main sources of income, to reduce
                                                                               harmful emissions, while increasing women’s involve-
                                                                               ment in this economic activity from zero to 13% in
                                                                               two years. As a result, water quality of Lake Prespa
                                                                               has clearly improved and the number of native spe-
                                                                               cies in the overall fish stock has increased.

                                                                                                                                    13
Lesson learned: The Swiss Cooperation Strategy
 Key Accomplishments                                                             2013-16 was highly pertinent in the Macedonian
                                                                                 context. It clearly built on Switzerland’s expertise in
 •• National Strategy on Nature developed                                        the three domains of intervention and took advan-
 •• Approximately 150,000 persons benefit from improved water resource           tage of drivers of change, notably citizens, CSOs, lo-
    management                                                                   cal governments and SMEs. Significant and tangible
 •• Water quality and biodiversity of Lake Prespa improved                       results were achieved despite the challenging politi-
 •• Environmental education institutionalized in the formal school system        cal context. However, with the worsening of the po-
                                                                                 litical crisis, reform processes towards EU accession
                                                                                 have been stalled and collaboration impeded, put-
                         Switzerland supported various information, educa-       ting in question the sustainability of achieved results.
                         tion and communication activities that have improved
                         citizen environmental awareness, as evidenced
                         through surveys. The Swiss-supported Environmental
                         Education Project played a key role in institutional-
                         izing environmental education in the formal school
                         system.

14
4. Implications for the Cooperation Strategy ­
   2017-2020

         The domestic political crisis and undermined democ-        nomic stability and engage in regional work on trade
         racy noticeable in state institutions, including weak      ­facilitation.
         oversight and separation of powers between the ex-
         ecutive, legislative and the judiciary, call for modifi-   Switzerland’s support through the infrastructure
         cations to the Swiss programme portfolio. There is         and environment domain is a continuous contri-
         a need to strengthen the functioning, accountability       bution to Macedonia’s European integration process
         and independence of institutions and mechanisms;           in view of EU environmental acquis requirements.
         and, most importantly, to foster systemic commit-          Progress in the water sector was visible but slow
         ment to social, political and economic inclusion           and confronted with low prioritization by decision-
         as well as to creating and using spaces for policy         makers. For this reason, Switzerland will identify new
         ­dialogue.                                                 entry points that ensure continued relevance for
                                                                    Macedonia’s political and socio-economic reforms
         An intensified engagement in governance is all the         and that promise more opportunities and potential.
         more important in view of an “opportunistic” state         Topics such as solid waste management, energy effi-
         with an externally-driven reform process, the likeli-      ciency and renewable energy, disaster risk reduction,
         est scenario for the future. Citizen participation in      and climate change will be explored. More attention
         decision making will continue to be addressed in           will be given to social inclusion and citizen participa-
         the democratic governance domain. Enabling                 tion in decision-making processes. Work with public
         conditions and democratic spaces will be created           utilities will involve more policy dialogue and contin-
         for dialogue between institutions on the one hand          ued application of good governance principles in cor-
         and between citizens and institutions on the other,        porate development.
         thus also enhancing institutional legitimacy. While
         this implies more interventions at national level, the     The Swiss programme portfolio mix has continuously
         sub-national level will remain key. Advancing decen-       evolved over the years to align with Macedonian
         tralisation and ensuring transparent and fair alloca-      transition priorities in given contexts, while taking
         tion of resources is important and a major milestone       into consideration available means and compara-
         for implementing the Ohrid Framework Agreement.            tive advantages of Swiss international development
         Furthermore, CSOs with strong constituencies will          cooperation. The future portfolio should help build
         remain at the core of Switzerland’s drive for demo-        institutional capacities and generate public demand
         cratic change. CSOs will be supported to re-establish      in support of reforms to meet European standards
         legitimacy of and trust in public institutions and to      and build a socially-inclusive democracy and market
         contribute towards a common and inclusive vision           economy, while ensuring sound governance of natu-
         of the state.                                              ral resources. Government buy-in and ownership of
                                                                    supported reform processes is a prerequisite for the
         The decision in 2013 to re-enter the economic              achievement of these goals. Programme manage-
         development domain with a focus on SMEs was                ment and working modalities will need to be con-
         timely. The political crisis, however, has started         text/conflict sensitive and adjusted to any extreme
         to create certain constraints, such as declining pri-      changes in the transition context (Annex 5).
         vate sector investments and decelerating economic
         growth. The accent on private sector development
         and SME growth will continue in the new Swiss Co-
         operation Strategy 2017-20. Entrepreneurship will
         be fostered to accelerate the growth of start-ups. In
         order to more comprehensively address unemploy-
         ment, including that of youth, the economic domain
         will be extended to include vocational skills devel-
         opment and job matching/labour market measures.
         To counter-balance the repercussions of political in-
         stability, Switzerland will also emphasize macroeco-

                                                                                                                         15
5. Priorities and Objectives for the
   Cooperation Strategy 2017-2020

         The overall goal of the Swiss Cooperation Strategy         Macedonia on its way out of fragility and towards in-
         Macedonia 2017-20 is to support Macedonia in its           ternal stability by addressing social exclusion, the lack
         reforms to meet European standards and build a             of separation of powers, insufficient accountability of
         socially-inclusive democracy and market economy,           public institutions and the unfulfilled oversight role
         while ensuring sound governance of natural resourc-        of the legislative powers, weak regulatory frame-
         es.                                                        works, and the incomplete state of decentralization.
                                                                    A two-prong approach will ensure that public institu-
         In a nutshell, the three Swiss portfolio priorities are:   tions on the one hand and civil society on the other
         (1) democratic governance at central and local levels;     receive the necessary support for positive democratic
         (2) sustainable economic growth and employment             development in the longer term.
         for youth and other socially excluded groups; and (3)
         sound natural resources governance and equitable           At the institutional level (Outcome 1), Switzerland will
         access to quality public utility services.                 strengthen the legislative, oversight and representa-
                                                                    tive roles of national and selected local legislatures.
                                                                    Municipal Council and National Parliament members
                                                                    will receive knowledge and skills that increase their
                                                                    independence from the executive. Empowered mu-
                                                                    nicipal councillors and MPs will more effectively and
                                                                    efficiently ensure that policies and budgets reflect cit-
                                                                    izens’ needs and oversee public funds expenditures.

                                                                    Furthermore, Switzerland remains committed to
                                                                    contributing to the implementation of the Law and
                                                                    Strategy on Balanced Regional Development. Under
                                                                    Outcome 1, it will strengthen institutional capacities
                                                                    and democratic processes to reduce socio-economic
                                                                    disparities between the regions.

                                                                    At the same time, Switzerland will target and engage
                                                                    civil society (Outcome 2). Support for citizen partici-
                                                                    pation in municipal budget discussions and in plan-
                                                                    ning and decision-making at the regional level will
                                                                    increase their influence on municipal policies and
         5.1 Democratic Governance Domain                           regional priorities. Continued support for CSOs, in-
                                                                    cluding constituency building, will strengthen CSO
         Domain Goal: Strengthened democratic govern-               influence as drivers of positive social change and po-
         ance at central and local levels                           litical dialogue partners for state authorities, resulting
                                                                    in more inclusive policies and programmes and bet-
         Outcome 1: More legitimate institutions at cen-            ter public services. CSOs will be empowered to claim
         tral and local levels practice accountable and in-         spaces for democratic dialogue and to legitimately
         clusive policy processes.                                  represent citizens’ concerns. This is in line with the
                                                                    government’s commitment to establish a Civil Society
         Outcome 2: Increased citizen participation in              Council and increase financial support for CSOs.
         public affairs fosters a political culture of dia-
         logue between citizens, CSOs and public insti-             Through an in-depth assessment based on a Political
         tutions and results in policies and practices re-          Economy Analysis, entry points to promote dialogue
         flecting all citizens’ needs.                              between political actors and to support reforms en-
                                                                    suring free and fair elections will be explored and
         The democratic governance domain aims to support           form the basis of a new full-fledged project.

16
Switzerland will support employment and private
                                                         sector growth in a comprehensive manner, targeting
                                                         both the supply and the demand side. First, it will
                                                         facilitate access to the labour market. It will enable
                                                         young men and women and socially excluded popu-
                                                         lation groups to acquire market-oriented skills (Out-
                                                         come 1). Building upon experience in vocational skills
                                                         development in the region, Switzerland will strength-
                                                         en training providers and vocational schools; it will
                                                         promote public-private dialogue and cooperation in
                                                         order to boost the labour market orientation of the
                                                         vocational education and training system. Addition-
                                                         ally, it will advance job-matching services and active
                                                         labour market measures for the unemployed. Socially
                                                         excluded groups will acquire relevant skills for the la-
                                                         bour market and hence increase their employability,
                                                         gain employment and increase their earnings.

                                                         Second, Switzerland will foster private sector jobs
                                                         that offer decent and equal employment opportuni-
5.2 Employment and Economic Development                  ties for men and women, including youth and other
­Domain                                                  groups at risk of social and economic exclusion. It
                                                         will support the creation of start-ups and foster SME
Domain Goal: Inclusive employment and sus-               competitiveness and sustainable growth (Outcome
tainable economic growth                                 2), among others in sectors such as tourism, creative
                                                         industries and green economy. Policies and regula-
Outcome 1: Un- and underemployed, especially             tions will be developed and improved, new private
those at risk of poverty or exclusion, increase          sector financing opportunities provided, company
their employability and gain easier access to            working practices and entrepreneurship improved,
jobs created by the private sector                       trade promoted, and domestic and international mar-
                                                         kets expanded. In a synergetic manner, Switzerland
Outcome 2: Start-ups and SMEs accelerate their           will emphasize macroeconomic stability, debt man-
growth by increasing their competitiveness and           agement capacities and engage in trade p  ­ romotion.
benefiting from a stronger entrepreneurship
ecosystem and improved framework conditions

Promoting inclusive employment and sustainable
economic growth is critical for improving livelihoods,
reducing poverty and exclusion, and, in the longer
term, creating a more prosperous society.

The employment and economic development do-
main will therefore address Macedonia’s market defi-
ciencies as well as high unemployment rates and lack
of perspectives especially of young men and women,
Roma and the disabled. Increasing employment and
competitiveness and accelerating economic growth
are among the top priorities for central and local-
level government.

                                                                                                              17
5.3 Infrastructure and Environment Domain                to awareness-raising, reducing man-made pollution,
                                                              protecting the environment and reducing climate
     Domain Goal: Sustainable natural resource gov-           change-related impacts of floods and droughts. A
     ernance and equitable access to quality public           particular focus will be put on institutional capacities
     services                                                 to develop, manage and implement integrated water
                                                              resources management plans and disaster risk reduc-
     Outcome 1: Effective and efficient institutions          tion measures. Conservation approaches will pur-
     and organizations in selected municipalities and         posefully be linked to local economic development
     regions protect the environment and reduce cli-          agendas with the intention to enhance economic op-
     mate change-related impacts through improved             portunities for the population and especially women
     natural resources governance                             and socially excluded groups.

     Outcome 2: Sustainably managed public utilities          Infrastructure investments and strengthening techni-
     provide all citizens in selected municipalities, in-     cal, organisational and financial capacities of selected
     cluding socially excluded groups, with reliable          public utilities will assure a greater coverage of reli-
     and affordable water, wastewater and solid               able and affordable, but increasingly cost-covering,
     waste services                                           quality services in the fields of public water supply,
                                                              wastewater and in addition solid waste (Outcome 2).
     The environment, especially water resources and the      A particular emphasis will be put on equitable ac-
     biodiversity richness of Macedonia, presents one of      cess to municipal services and reducing disparities. As
     the major values and potentials for the future devel-    experience shows, the provision of quality public ser-
     opment of the country. The protection and conser-        vices also reinforces trust in state institutions, which
     vation of environmental features, the establishment      is sorely lacking in Macedonia.
     of adequate infrastructure, the provision of quality
     public services, and a sustainable use of natural re-
     sources are all crucial for saving Macedonia’s fragile
     environment and improving living conditions. They
     support and reinforce endeavours to meet European
     standards and build a socially-inclusive democracy
     and market economy.

     Selected rural and urban municipalities, Centres for
     Regional Development and community-based or-
     ganisations will be supported in their efforts to en-
     sure that natural resources, first and foremost water
     bodies and forests, are managed in a sustainable
     manner (Outcome 1). Swiss support will contribute

18
6. Programme Implementation and
   Management

        Synergies: Diverse entry points exist for creating      regional perspective and knowledge exchange with
        synergies to achieve greater and better results – be-   other Swiss Embassies and Cooperation Offices.
        tween and within the domains of intervention. For
        example, the development of sustainable tourism         Aid modalities: Switzerland enters into project part-
        can be supported through projects in all three do-      nerships with central government entities through
        mains, covering citizen participation in the develop-   formal agreements. Co-financing from national and
        ment of local tourism strategies, improvement of        local governments is requested at project level where
        working practices of hospitality businesses, and ef-    appropriate and feasible. At local level, collaboration
        forts to protect the environment. In the past, SDC      with municipalities is based on contracts or enabled
        and SECO collaboration within one geographical          through implementing partner organizations, the
        cluster, often with the same partners, but on com-      latter based on open calls or through co-financing
        plementary issues, has proven to be efficient, effec-   modalities. Switzerland will not provide sector budg-
        tive and sustainable. SDC and SECO will continue to     et support. The EU does not consider the technical
        explore linkages and pursue close cooperation, es-      requirements to be in place. Earmarked institutional
        pecially in the employment and economic develop-        support is, however, a possibility.
        ment domain and in the infrastructure and environ-
        ment domain where both institutions have a financial    Switzerland will continue to pursue a multi-stake-
        stake. For instance, both SECO and SDC will pursue      holder approach by engaging with other develop-
        sustainable economic growth and inclusive employ-       ment partners, including other donors, regional and
        ment, SECO through focusing its support on mac-         international organizations, CSOs, NGOs and the
        roeconomic stability and private sector development     private sector. It will continue to provide financial
        while SDC through focusing on market system de-         contributions to local, national, regional and interna-
        velopment and improving access to labour markets.       tional initiatives that benefit Macedonia. Switzerland
        SDC Regional Advisors in governance, employment         will make a particular effort to identify, support and
        & income and water & environment will facilitate a      seek partnerships with emerging and new agents of

                                                                                                                    19
programme management (CSPM) will be adhered to
                                                                      throughout the strategy cycle.

                                                                      Social, political and economic inclusion: Exclusion
                                                                      deprives individuals of the opportunity to participate
                                                                      in economic, social and civic processes, and limits
                                                                      their ability to lead productive, creative lives in ac-
                                                                      cordance with their needs and interests. The projects
                                                                      and programmes in the frame of this Cooperation
                                                                      Strategy target specific excluded groups with the aim
                                                                      to increase job opportunities, improve social services,
                                                                      and create greater opportunities for civic participa-
                                                                      tion. Appropriate measures and indicators are devel-
                                                                      oped to monitor these interventions.

                                                                      Geographical coverage: Macedonia is a compara-
                                                                      tively small country. In principle, the Swiss Coopera-
                                                                      tion Strategy covers all its territory. However, the
                                                                      need to foster social, political and economic inclu-
                                                                      sion and a more balanced regional development is
                                                                      acknowledged. Therefore, targeting disadvantaged
     change – e.g., youth organizations. Public-private               areas and politically, socially and economically ex-
     development partnerships will also be thoroughly ex-             cluded population groups will be criteria for identify-
     plored, especially in the employment and economic                ing project sites, besides political willingness.
     development domain.
                                                                      Finances: The activities under this strategy will be
     Transversal themes: Gender and governance are                    financed through the Swiss framework credit 2017–
     transversal themes in the domains (sector govern-                2020 for transition aid and cooperation with Eastern
     ance) and with partner institutions. Governance in-              Europe.
     cludes the notion of social, political and economic
     inclusion, in particular the principles of equality and          The information on planned commitments for the
     non-discrimination in connection with inter-ethnic               four-year period of this strategy is indicative. Ac-
     relations and the social, health and economic status             tual disbursements will depend on various factors,
     of the population. The performance of each of the                such as the changes in the project portfolio and the
     domains of intervention is monitored with indicators             framework conditions of the partner country as well
     related to gender and governance.                                as available disbursement credits authorized by the
                                                                      Swiss Parliament.
     Youth, Roma and disabled persons are particular target
     groups and partners in the employment and economic               Compared to the 2013-16 Cooperation Strategy,
     development and democratic governance domains.                   the employment and economic development domain
                                                                      will gain importance. The infrastructure and environ-
     Climate change issues will be addressed within the               ment domain will experience a budget cut compared
     infrastructure and environment domain specifically.              to the earlier water domain. However, SECO alloca-
     The vulnerability of all projects to climate change and          tions to the water domain were exceptionally high
     natural hazards will be assessed. If required, appro-            during the previous Cooperation Strategy cycle and it
     priate mitigation and adaptation measures will be                is foreseen to remain the largest domain in financial
     undertaken, such as flood and other disaster risk re-            terms. Budgets (Annex 4 for more details) will be al-
     duction activities. The principles of conflict-sensitive         located as follows in 2017-20:

         Indicative budget allocation per domain               In Mio CHF                              in % of total budget
         CS 2017–20201

         Democratic Governance                                 24.2 (SDC)                                        32%
     1   Employment and Economic Development                   21.0 (SDC 17.0 / SECO 4.0)                        28%

     2   Infrastructure and Environment                        30.0 (SDC 8.0 / SECO 22.0)                        39%

         Other interventions2                                    0.8 (SDC)                                        1%

         Total                                                 76.0 (SDC 50.0 / SECO 26.0)                       100%

     1 % based on total of CHF76m (Annex 4 – Indicative Budget Allocation).
     2 According to FDFA/SDC’s Budget process 2017, programme management costs are no longer included in the Framework Credit but
     are integrated in the FDFA Global Credit.

20
7. Strategic Steering

         The purpose of the Cooperation Strategy monitoring        regard to social, political and economic inclusion and
         system is to provide crucial but selective information    the transversal themes gender and governance.
         on a regular and timely ba­sis to support steering the
         implementation of the Cooperation Strategy in order       The monitoring system also offers an overview of
         to achieve its objectives. Nature and quality of the      how the Cooperation Strategy adheres to the con-
         information collected through monitoring has to be        text using an instrument for outsourced analysis of
         in line with this responsibility. The monitoring system   context developments relevant for the Cooperation
         offers a dependable global picture, from an “eagle’s      Strategy. The Monitoring System for Development
         view”, of the programme reality, keeping a critical       Related Changes (MERV) is also used to this end. The
         distance from the trials and tribulations of project      scenario table (Annex 5) contains the adaptations
         implementation. The ambition of the monitoring            to the Cooperation Strategy which may be needed
         system is to check progress and shortcomings of the       based on possible changes in the context.
         entire programme from the “end perspective” of tar-
         gets and goal achievement, measured by outcomes,          Efficiency is measured by monitoring the overall Em-
         effects and impacts (intended or not). This approach      bassy operational targets. These targets reflect the
         will assist the programme steering process by pro-        best use of human and financial resources in achiev-
         viding a basis for adjusting the Cooperation Strategy     ing the objectives of the projects and programmes
         portfolio if needed.                                      implemented with Swiss support. For this purpose,
                                                                   operational plans with objectives and indicators are
         The monitoring system of the new Cooperation              being developed and reviewed annually.
         Strategy is organized so that the effectiveness and
         coherence of its implementation is checked at pro-        The monitoring system has been developed in a man-
         gramme level through the use of a monitoring matrix       ner that provides possibilities for assessing and evalu-
         deriving from the Results Framework. On an annual         ating the usefulness of all monitoring instruments;
         basis, it assesses progress towards achieving expect-     based on the findings they can be amended to en-
         ed outcomes of Swiss interventions and their con-         sure more accurate and practical monitoring.
         tributions to country development, including with

                                                                                                                        21
22
     Annex 1
     Swiss Cooperation Strategy for Macedonia at a Glance
     Annex 1: Swiss Cooperation Strategy for Macedonia at a Glance

     Synopsis of the Swiss Cooperation Strategy Macedonia 2017-2020

     Overall Goal

     To support Macedonia in its reforms to meet European standards and to build a socially-inclusive democracy and market economy,
     while ensuring sound governance of natural resources.

     Domains of intervention: Objectives

     Democratic governance                               Employment and economic development             Infrastructure and environment
     (SDC)                                               (SDC and SECO)                                  (SDC and SECO)

     Strengthened democratic governance at               Inclusive employment and sustainable            Sustainable natural resource governance and
     central and local levels.                           economic growth.                                equitable access to quality public services.

     Domains of intervention: Outcomes

     More legitimate institutions at central and local   Un- and underemployed, especially those at      Effective and efficient institutions and
     levels practice accountable and inclusive           risk of poverty or exclusion, increase their    organizations in selected municipalities and
     policy processes.                                   employability and gain easier access to jobs    regions protect the environment and reduce
                                                         created by the private sector.                  climate change-related impacts through
                                                                                                         improved natural resources governance.

     Increased citizen participation in public affairs   Start-ups and SMEs accelerate their growth by   Sustainably managed public utilities provide all
     fosters a political culture of dialogue between     increasing their competitiveness and            citizens in selected municipalities, including
     citizens, CSOs and public institutions and          benefiting from a stronger entrepreneurship     socially excluded groups, with reliable and
     results in policies and practices reflecting all    ecosystem and improved framework                affordable water, wastewater and solid waste
     citizens’ needs.                                    conditions.                                     services.
Annex 2
       Results Framework
        Annex 1 – Results Framework1

     · Democratic Governance Domain

     · Domain goal: Strengthened democratic governance at central and local levels

        (1) Swiss portfolio outcomes                                    (2) Contribution of Swiss programmes                           (3) Country development outcomes

        Outcome statement 1                                                                                                            Outcome statement 1
        More legitimate institutions at central and local               The Swiss portfolio outcomes contribute to the country         Sources: EU Progress Report; Programme for
        levels practice accountable and inclusive policy                development outcomes as follows:                               sustainable local development and decentralization in
        processes.                                                                                                                     the Republic of Macedonia 2015-2020; Additional
                                                                        By strengthening the capacities of the legislative
                                                                                                                                       Protocol to the European Charter of Local Self-
        Indicator 1: Local authorities inform citizens                  power, both central and local, and by enabling active
                                                                                                                                       Government on the right to participate in the affairs of
        transparently and involve them in decision-making-              participation of the citizens including those of the
                                                                                                                                       a local authority;
        processes. They take specific measures for                      underdeveloped regions, as well as women, ethnic
        consideration of interests of women and men equally             communities and other disadvantaged groups, local
        (ARI GO1, SDG 16)                                               and central government is held accountable through
                                                                                                                                       1a) Improved functioning of oversight institutions
                                                                        increased oversight. This leads to greater internal
        Baseline: Citizens satisfaction with the transparency and
        accountability of municipal bodies on 1-10 scale: 4,67          stability and more conducive regulatory frameworks,
        (2015)                                                          which ultimately contribute to quality services, political     Field of observation: Key central and state oversight
                                                                        participation and representation of Macedonian                 institutions are able to carry out their functions
        Target: Citizen satisfaction with the transparency and
        accountability of municipal bodies on 1-10 scale: 5,5 on        citizens.                                                      proactively, effectively and free from political pressure.
        transparency and accountability
                                                                                                                                       Baseline: Unfulfilled role of legislative, central and local
        Baseline: 6% of participating municipalities have               Assumptions:                                                   oversight institutions, in terms of holding the executive
        allocated budget items for the implementation of                                                                               accountable.
        activities included in the Action Plan for Equal                • All levels, national, regional, and local, are
        Opportunities of Women and Men (2015).                            responsive and willing to contribute to effective            Target: Independent oversight bodies are able to carry
                                                                          balanced regional development policy                         out their roles responsibly.
        Target: At least 50% of all participating municipalities          implementation
        have allocated budget items for the implementation of
        activities included in the Action Plan for Equal                • Interest of institutions to cooperate
                                                                                                                                       1b) Decreased regional disparities
        Opportunities of Women and Men                                  • Willingness of civil society to address own
                                                                                                                                       Source: Law on Balanced Regional Development,

        1
         The Results Framework is subject to changes and adaptations throughout the course of implementation. Please refer to the electronic version of this document available at

23
        www.eda.admin.ch for the latest updates.

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