Swiss Cooperation Strategy Macedonia 2017-2020
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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
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
4
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
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
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
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
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
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
113. 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.
12Thanks 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.
13Lesson 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.
144. 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-
155. 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.
16Switzerland 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.
175.3 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
186. 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
19programme 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.
207. 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
2122
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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