Swiss Cooperation Strategy Macedonia2017-2020

Stability and prosperity of the Western Balkan coun-tries constitute a fundamental aim for Swiss foreign and security policy. Switzerland’s engagement in the region was initiated in the 1990s, by providing hu-manitarian assistance and refuge for many people. Switzerland and the Balkans have developed close ties over the years, best documented by a sizeable diaspora living in Switzerland and an intensive coop-eration programme. More than 500’000 residents of Switzerland have family ties to the Western Balkans.

Switzerland has been supporting Macedonia’s po-litical, social and economic transition processes since 1992. Today Switzerland ranks among Macedonia’s largest bilateral cooperation partners. Bilateral agree-ments between the Governments of Switzerland and Macedonia underpin this trusted partnership.

Macedonia has made significant achievements since its independence. The Swiss Cooperation Strategy Macedonia 2017-2020 is the expression of Switzer-land’s commitment to continue supporting Macedo-nia in addressing remaining challenges in its political, 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 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.

Foreword

This document provides an overview of recent po-litical and economic developments, and lays out the rationale for the Swiss Cooperation Strategy Mac-edonia 2017-2020. It draws implications from past achievements and experiences and outlines the pri-orities and objectives for the upcoming period. It concludes with information about program manage-ment, monitoring and steering.

The Swiss Cooperation Strategy 2017-2020 has been developed by the Swiss Agency for Development and Cooperation (SDC) and the State Secretariat for Economic Affairs (SECO), in close consultation with Macedonian government offices and civil society partners. Both institutions, represented by the Swiss Embassy in Macedonia, closely cooperate and coor-dinate in the implementation of their respective parts of the Cooperation Strategy.

We are confident that the goals and priorities set out in this strategy are particularly relevant to the sustain-able development of Macedonia and the well-being of its people.

Berne, February 2017

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

Manuel Sager Marie-Gabrielle Ineichen-FleischDirector-General State Secretary

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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

Table of contents

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ADKOM Association of Macedonian providers of public services CBO Community Based Organisation CS Cooperation StrategyCSI Civil Society IndexCSOs Civil Society OrganisationsCSPM Conflict Sensitive Programme ManagementEU European UnionFiBL Research Institute of Organic AgricultureGDP Gross Domestic ProductGIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

(German Agency for Development and Cooperation)IDSCS Institute for Democracy “Societas Civilis” Skopje IFC International Finance CorporationILO International Labour Organization IMF International Monetary FundIRI Integrative Research InstituteKfW Kreditanstalt für Wiederaufbau (German Reconstruction

Credit Institute/Development Bank)MCIC Macedonian Centre for International CooperationMERV Monitoring System for Development Related ChangesMPs Members of ParliamentNDI National Democratic InstituteNGO Non-Governmental OrganizationNIRAS International Consulting CompanyODA Official Development Assistance PI Parliamentary InstitutePU Public Utility SDC Swiss Development CooperationSECO State Secretariat for Economic AffairsSMEs Small and Medium Sized EnterprisesUNDP United Nations Development ProgrammeUSA United States of AmericaUSAID United States Agency for International DevelopmentVET Vocational Education and TrainingWB World BankWEF World Economic Forum WFD Water Framework Directive

Abbreviations and Acronyms

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wiretaps. The political future of the country remains nevertheless uncertain. The most likely scenario is a government that continues to follow an externally-driven reform agenda linked to the prospect of Euro-pean and transatlantic integration.

Following years of annual GDP growth of 3 to 4%, the domestic crisis is threatening progress towards macro-economic stability and building a market economy. Public debt has grown, surpassing 50% of GDP in 2016. The economy faces structural prob-lems, characterized by low value-added production and the lowest wages in the region. Poverty, in re-lation to the national poverty threshold, and socio-economic disparities are high. Especially the unem-ployed, youth, Roma and the disabled are at risk of poverty or social, political and economic exclusion. Environmental challenges remain significant, with relevant indicators significantly below EU levels. The implementation of water and nature legislation and strategies is delayed. Climate change jeopardises already fragile income sources and livelihoods. En-vironmental organizations and pressure groups face difficulties mobilizing a critical mass for change.

Executive Summary

Switzerland supports the transition of former com-munist countries in Eastern Europe to democracy and social market economies. This active engagement is based on its tradition of solidarity and is in Switzer-land’s interest, as transition assistance opens up eco-nomic opportunities for Switzerland and new jobs offer alternatives to migration.

The Republic of Macedonia is a multi-ethnic state with a population of just over two million. The Ohrid Framework Agreement ended a short armed-conflict in 2001 and laid the basis for non-discrimination and equitable ethnic representation; it marked the start of decentralisation. Macedonia received EU can-didate country status in 2005, but the opening of accession negotiations has been repeatedly blocked. Recent years have been marked by an increasingly fragile and polarized political environment. In early 2015, the main political parties traded blame for il-legal wiretaps, igniting a wave of public protests across ethnic lines. In an effort to strengthen the rule of law a Special Prosecution Office was created to investigate allegations of wrongdoings and corrup-tion brought to light by the publication of the illegal

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and governance are transversal themes; youth, Roma and disabled persons are particular target groups and partners in action.

In democratic governance, Switzerland will strength-en the legitimacy of institutions, thus enabling more accountable and inclusive policy processes; it will promote dialogue between citizens, CSOs and pub-lic institutions to ensure better responsive policies and practices. In employment and economic devel-opment, Switzerland will embark on strengthening training and job-matching service providers in order to increase employability and ease access to jobs, especially for youth and the socially excluded; it will support framework conditions and help strengthen the entrepreneurship ecosystem to increase the com-petitiveness of start-ups and SMEs. In infrastructure and environment, Switzerland will strengthen natu-ral resources governance to protect the environment and reduce climate change-related impacts; it will work towards better service delivery of municipali-ties and public utilities in the areas of water supply, wastewater and solid waste.

The Swiss Cooperation Strategy 2013-2016 built on Switzerland’s relevant expertise by working through drivers of change. Tangible results were achieved, notably in strengthening decentralisation, creating employment and protecting water resources. How-ever, the political crisis and fragile democracy call for adaptations. Most importantly, there is a need to foster systemic commitment to social, political and economic inclusion as well as to create and better use spaces for policy dialogue.

Macedonia’s various sectoral development strategies, the Federal Dispatch for Switzerland’s International Cooperation and the EU accession-related require-ments provide the overarching framework for the Swiss Cooperation Strategy 2017-2020. The overall goal of the new strategy is to support Macedonia in its reforms to meet European standards, build a socially-inclusive democracy as well as market econo-my, while ensuring sustainable governance of natural resources. The three Swiss portfolio priorities are: (1) democratic governance at central and local levels; (2) sustainable economic growth and employment for youth and other socially excluded groups; and (3) sustainable natural resources governance and equi-table access to quality public utility services. Gender

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After the break-up of the Federal Yugoslav Republic in 1991, the Republic of Macedonia re-emerged as an independent, multi-ethnic state. The last census, conducted in 2002, counted a population of just over two million, principally composed of communities of ethnic Macedonians (64.2%), Albanians (25.2%), Turks (3.9%), Roma (2.7%) and Serbs (1.8%).

In 2001, the Ohrid Framework Agreement ended a short inter-ethnic armed conflict and laid the nor-mative basis for non-discrimination, equitable ethnic representation and the use of minority languages. It also marked the start of political, administrative and fiscal decentralisation. However, a 2015 review of the Agreement highlighted limited fiscal decentrali-sation, little autonomy of local governments, lack of accountability and transparency in government financial transfers to municipalities, and under-rep-resentation of non-majority communities in public institutions. The two main ethnic groups - ethnic Macedonians and Albanians - often live in parallel societies, characterized by segregate settlements, separate schools and strongly ethnic-coloured poli-tics and rhetoric. As in wide parts of the Balkans, especially the Roma face heavy discrimination and exclusion.

The initial implementation of the Ohrid Framework Agreement and visible progress in economic, social and environmental development paved the way for receiving EU candidate country status in 2005. More than ten years later, unsatisfactory progress towards the adoption of the EU acquis and the ongoing dis-pute with Greece over the country’s name still ham-per the start of formal membership negotiations.

Polarized political environment

During a relatively stable 2nd decade of independ-ence, Macedonia built a fairly functional government and democratic institutions. The more recent years, however, have been marked by slowing reforms and an increasingly polarized political environment, bearing elements of state capture by political parties: undermined parliamentary and judiciary roles, po-liticization of public institutions, and an increasingly exclusive and non-participatory vision for further nation-building. Media freedom deteriorated, with

1. Context Analysis

Macedonia downgraded to ‘not free’ in the 2016 Freedom House report on Freedom of the press.

In early 2015, the main political parties traded blame for illegal wiretaps, in which more than 20,000 people were monitored. For the first time in recent history, citizens across ethnic lines took to the streets together in protests aiming at expressing their outrage at the alleged abuses of power and demanding accountabil-ity from political leaders. Agreements between politi-cal parties on how to defuse the crisis were brokered by the EU and the USA. The Przino Agreements en-visaged legal and electoral reforms; de-politicization of the public administration; freedom of expression; a technical government to bring the country to early elections; and the creation of a Special Prosecution Office to investigate wiretapped material. Following two postponements, the parliament decided to hold early elections in December 2016.

Despite years of economic growth, poverty levels and socio-economic disparities, including inequalities across ethnic groups and the regions, are consist-ently high in Macedonia. In 2014, more than 35% of the population was severely materially deprived; over 40% was at risk of poverty or social exclusion, especially the unemployed, youth, Roma and the disabled.1 As a result, popular discontent has begun to show, kindling civic protests and giving birth to critical grassroots movements and the potential risk of renewed inter-ethnic conflict needs to be ob-served closely. The country is also directly affected by the global refugee crisis, with the main migration route from the Near East to Western Europe passing through its territory and posing yet another political, social and security challenge to authorities.

Looking ahead, the political future of the country remains uncertain. The most likely trend, no matter which political parties are in power, is a sustained “opportunistic” government that follows a mainly externally-driven reform agenda linked to the pros-pect of European and transatlantic integration (An-nex 5). However, “stability” in the sense of sustain-ing the status quo is not a desirable prospect.

1 The “at risk of poverty or social exclusion” (AROPE) indicator - as used in EU social policies and referred to by the Government of Macedonia - takes into account relative monetary poverty, severe material deprivation and households with very low work intensity.

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Macro-economic stability and economic growth at risk

In the 2000s and early 2010s, Macedonia enjoyed sustained economic growth and made significant progress towards achieving and maintaining macro-economic stability and building a market economy. However, the ongoing domestic political crisis is in-creasingly affecting private sector investment despite continued government measures to improve the business environment and boost job creation, such as tax exemptions for investors and lighter registration procedures. This led to a deceleration of the annual GDP growth of 3 to 4% only. The economy faces structural problems, characterized by low value-add-ed production and the lowest wages in the region. Public debt has constantly grown over the past eight years, surpassing 50% of GDP in 2016, and therefore overshooting the IMF-recommended debt threshold of 50%. Doing business in Macedonia is furthermore hindered by limited access to financing, corruption, an inadequately educated and trained workforce, and affected work ethics. In this fragile macro-eco-nomic context, remittances from the Macedonian diaspora play an important role: According to an IMF analysis, personal transfers have been ranging from 13 to 21% of the country’s GDP in the past years2, sufficient to cover the trade deficit. Remarkably, over 11% of the remittances come from Switzerland.

Dismal perspectives for the young and unemployed

Very high unemployment persists. Youth suffer par-ticularly, the main reason being inadequate skills. In the 2nd quarter 2016, the unemployment rate was 24% among the whole population and 49% among youth. In the last four years, the gender gap in eco-nomic participation and opportunity has failed to nar-

2 IMF Selected Issues: Remittances and economic development in Macedonia, 2014

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 Macedonia participate in the labour market as op-posed to 67.5% men.4 There is an obvious need for economic and social policies effectively addressing continued stereotyping, and the direct and indirect discrimination of women and the socially excluded groups such as the poor, the elderly, the disabled and members of smaller ethnic groups.

Significant environmental challenges

Environmental indicators for Macedonia remain sig-nificantly below EU levels, although on par with re-gional averages. On the plus side, water supply ser-vices reach almost 100% of urban and around 65% of rural households. With some exceptions, supplied water is generally potable. However, only 15% of the population benefits from functioning wastewa-ter treatment. Solid waste is mainly deposited in il-legal dump sites, often in ecologically-sensitive areas. Heavily polluted rivers, air and agricultural land, un-controlled exploitation of available natural resources, and missing implementation of environmental frame-works are seriously affecting the social and economic value of the environment. Additional challenges are climate change-related impacts, such as floods and droughts, which jeopardise already fragile income sources and the livelihoods of farmers and the popu-lation in rural areas.

Financial, technical and human resources are still lacking at all administrative levels to fulfil internation-al conventions, treaties and agreements, to which Macedonia is party, and to comply with EU environ-mental acquis. The government continues to prepare legislation, strategies and actions plans, but imple-mentation is delayed and incomplete. Environmental organizations and pressure groups are motivated but face difficulties mobilizing a critical mass for change.

3 Macedonia ranked 69th of 145 countries on the 2015 WEF Global Gender Gap Index (Serbia 45th, Albania 70th, Switzerland 8th).4 UN Women, 2016, Progress of the World’s Women 2015-2016, Annex 2.

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2. Rationale for the Swiss Cooperation Strategy for Macedonia

As part of its transition assistance, Switzerland sup-ports former communist countries in Eastern Eu-rope on their paths to democracy and social market economies. Despite obvious progress, there remains a backlog of reforms in areas such as decentraliza-tion, rule of law, economic development and pub-lic services. Switzerland’s transition assistance in the region is based on a mutual interest in inclusive socio-economic development, stability, security and European integration and motivated by Switzerland’s solidarity with the poor and excluded and the respect for human rights. Further transition assistance opens up economic opportunities for Switzerland and new jobs offer alternatives to migration.

Given the considerable diaspora1 and geographical vicinity, it is in Switzerland’s interest that Macedonia develops into an inclusive, prosperous and demo-cratic state. SDC and SECO have shared responsibility for Switzerland’s transition assistance to Macedonia since over two decades. Since the EU became the major development partner in Macedonia, bilateral assistance from most EU countries has significantly reduced. Switzerland, together with Germany and the USA, remains one of the last significant bilateral donors. Total ODA makes up about 2.2% of GDP.2 Although the formal responsibility for donor coordi-nation lies with the Macedonian Government, donor coordination in practice largely depends on individ-ual donors’ initiatives with Switzerland taking on a prominent role.

Macedonia’s national development policies and sec-tor strategies, EU accession-related reforms, includ-ing the urgent reform priorities related to the Przino Agreement, and the Federal Dispatch for Switzer-land’s International Cooperation 2017-20 provide the general frameworks for this Cooperation Strat-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.2 2014: WB data; nominal GDP USD11.32bn, per capita USD5,455; ODA 2014: USD211m.

edonia contributes to the seven strategic objectives of the Federal Dispatch3 (see Box below).

The new strategic cycle will provide an opportunity to effectively address social, political and economic shortcomings that manifest themselves in poverty, socio-economic disparities, the exclusion of parts of society and socio-political fragility. Increasing focus will be put on addressing social exclusion as a source of fragility of the society.

Accordingly, the overall goal of Swiss engagement for the period 2017 to 2020 is to support Macedo-nia in its reforms to meet European standards and build a socially-inclusive democracy and market economy, while ensuring sound governance of natu-ral resources.

3 Dispatch on Switzerland’s International Cooperation 2017 – 2020: https://www.eda.admin.ch/deza/en/home/sdc/strategy/legal-bases/message-international-cooperation-2017-2020.html

1. Respond to global challenges in the areas of climate change and the environment, food security, water, health, migration and devel-opment

2. Prevent and manage the consequences of crisis and disaster, and of fragility; promote conflict transformation

3. Support sustainable access to resources and services for all

4. Promote sustainable economic growth5. Strengthen the rule of law and democratic

participation; support institutions serving so-ciety and the economy

6. Ensure the respect for human rights and fun-damental liberties, and support efforts to ad-vance their cause

7. Strengthen gender equality and the rights of women and girls

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

During the period 2013 to 2016, Switzerland contin-ued to work in governance and the water sector. In view of weak economic perspectives and persistent high unemployment, economic development was re-introduced as a third domain of intervention. Gender and good governance were mainstreamed through-out.

Democratic governance and decentralization: Democratic governance and decentralization is the longest-standing domain of cooperation in Mac-edonia. Despite considerable contextual challenges, Switzerland was able to strengthen democratic val-ues and processes at local and central levels.

Switzerland has successfully introduced participatory Community Forums to Macedonia. 59 (of 81) munici-

palities have meanwhile institutionalized such Com-munity Forums. Thanks to these, citizens, including members of ethnic minorities, have the possibility to actively participate in local decision-taking (average of 90 people/forum). Women participation increased steadily over the years, reaching today an average of over 40%. For example, Community Forums were instrumental in deciding how to use small grants provided to municipalities as part of interventions under the water domain (e.g. improvement of village water-supply or sewerage systems). Switzerland also promoted balanced regional development. Through its support for Regional Councils and Regional Devel-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 regional development proposals.

The Swiss-funded “Civica Mobilitas” programme is the largest civil society support programme in Mac-edonia. Since 2009, Civica Mobilitas has provided small grants to 149 CSOs. Such grants have clearly strengthened CSO voices, constituencies and their 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 social market-based economy that promotes growth and creates jobs and income opportunities.

Key Accomplishments

• Public participation in local decision-taking increased through Community Forums

• €13m for balanced regional development mobilized • CSO legitimacy, voice and assertiveness strengthened • Law-making capacities of national parliament improved • Gender-responsive budgeting introduced

Key Accomplishments

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Thanks to Swiss engagement in the economic devel-opment sector, 979 persons were newly employed in 2015, corresponding to 8% of all newly-employed in the country. At least two-thirds were women, youth or persons at risk of social, political and economic exclusion. More Roma than ever are benefiting from active support to find jobs or become self-employed.

With Swiss support, the professionalism and compet-itiveness of SMEs has been enhanced. New technolo-gies and management and corporate governance practices were introduced in 307 SMEs. Business training improved the knowledge of hundreds of entrepreneurs. Six innovative financial instruments and new funds amounting to CHF21m increased their competitiveness. As a result, beneficiary SMEs recorded CHF3m in additional sales on international and domestic markets.

Switzerland has started to promote equal job and income opportunities. A project following the mar-ket system development approach aims at engaging especially women and youth in decent (self-) em-ployment in green economy, creative industries and tourism. Thanks to Swiss support, the government is providing special agricultural subsidies to historically underserved rural women and young farmers. Com-panies hiring socially excluded people such as Roma and those with disabilities can now benefit from a special tax exemption.

Water: Switzerland was the only bilateral donor with a substantial engagement in the water sector, which has long suffered from low attention by the authorities. Switzerland was instrumental in devel-oping environmental framework conditions in line with EU standards, improving public water supply and wastewater services, and conserving nature and water quality.

Switzerland engaged with the authorities to improve the framework for implementing the Law on Water and the Law on Nature. It supported, among others, the elaboration of the National Strategy on Nature; and River Basin and Flood Risk Management Plans.

In selected locations, Switzerland helped to improve 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.

Key Accomplishments

• 979 persons newly-employed in 2015, mostly women, youth and Roma (8% of all newly-employed)

• CHF 3m in additional sales for Macedonian SMEs • Government scheme of special agricultural subsidies for rural women and young farmers

• Special tax exemption for companies hiring socially excluded people

Key Accomplishments

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Switzerland supported various information, educa-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.

Lesson learned: The Swiss Cooperation Strategy 2013-16 was highly pertinent in the Macedonian context. It clearly built on Switzerland’s expertise in the three domains of intervention and took advan-tage of drivers of change, notably citizens, CSOs, lo-cal governments and SMEs. Significant and tangible results were achieved despite the challenging politi-cal context. However, with the worsening of the po-litical crisis, reform processes towards EU accession have been stalled and collaboration impeded, put-ting in question the sustainability of achieved results.

Key Accomplishments

• National Strategy on Nature developed • Approximately 150,000 persons benefit from improved water resource management

• Water quality and biodiversity of Lake Prespa improved • Environmental education institutionalized in the formal school system

Key Accomplishments

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4. Implications for the Cooperation Strategy 2017-2020

The domestic political crisis and undermined democ-racy noticeable in state institutions, including weak oversight and separation of powers between the ex-ecutive, legislative and the judiciary, call for modifi-cations to the Swiss programme portfolio. There is a need to strengthen the functioning, accountability and independence of institutions and mechanisms; and, most importantly, to foster systemic commit-ment to social, political and economic inclusion as well as to creating and using spaces for policy dialogue.

An intensified engagement in governance is all the more important in view of an “opportunistic” state with an externally-driven reform process, the likeli-est scenario for the future. Citizen participation in decision making will continue to be addressed in the democratic governance domain. Enabling conditions and democratic spaces will be created for dialogue between institutions on the one hand and between citizens and institutions on the other, thus also enhancing institutional legitimacy. While this implies more interventions at national level, the sub-national level will remain key. Advancing decen-tralisation and ensuring transparent and fair alloca-tion of resources is important and a major milestone for implementing the Ohrid Framework Agreement. Furthermore, CSOs with strong constituencies will remain at the core of Switzerland’s drive for demo-cratic change. CSOs will be supported to re-establish legitimacy of and trust in public institutions and to contribute towards a common and inclusive vision of the state.

The decision in 2013 to re-enter the economic development domain with a focus on SMEs was timely. The political crisis, however, has started to create certain constraints, such as declining pri-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-

nomic stability and engage in regional work on trade facilitation.

Switzerland’s support through the infrastructure and environment domain is a continuous contri-bution to Macedonia’s European integration process in view of EU environmental acquis requirements. Progress in the water sector was visible but slow and confronted with low prioritization by decision-makers. For this reason, Switzerland will identify new entry points that ensure continued relevance for Macedonia’s political and socio-economic reforms and that promise more opportunities and potential. Topics such as solid waste management, energy effi-ciency and renewable energy, disaster risk reduction, and climate change will be explored. More attention will be given to social inclusion and citizen participa-tion in decision-making processes. Work with public utilities will involve more policy dialogue and contin-ued application of good governance principles in cor-porate development.

The Swiss programme portfolio mix has continuously evolved over the years to align with Macedonian transition priorities in given contexts, while taking into consideration available means and compara-tive advantages of Swiss international development cooperation. The future portfolio should help build institutional capacities and generate public demand in support of reforms to meet European standards and build a socially-inclusive democracy and market economy, while ensuring sound governance of natu-ral resources. Government buy-in and ownership of supported reform processes is a prerequisite for the achievement of these goals. Programme manage-ment and working modalities will need to be con-text/conflict sensitive and adjusted to any extreme changes in the transition context (Annex 5).

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

The overall goal of the Swiss Cooperation Strategy Macedonia 2017-20 is to support Macedonia in its reforms to meet European standards and build a socially-inclusive democracy and market economy, while ensuring sound governance of natural resourc-es.

In a nutshell, the three Swiss portfolio priorities are: (1) democratic governance at central and local levels; (2) sustainable economic growth and employment for youth and other socially excluded groups; and (3) sound natural resources governance and equitable access to quality public utility services.

5.1 Democratic Governance Domain

Domain Goal: Strengthened democratic govern-ance at central and local levels

Outcome 1: More legitimate institutions at cen-tral and local levels practice accountable and in-clusive policy processes.

Outcome 2: Increased citizen participation in public affairs fosters a political culture of dia-logue between citizens, CSOs and public insti-tutions and results in policies and practices re-flecting all citizens’ needs.

The democratic governance domain aims to support

Macedonia on its way out of fragility and towards in-ternal stability by addressing social exclusion, the lack of separation of powers, insufficient accountability of public institutions and the unfulfilled oversight role of the legislative powers, weak regulatory frame-works, and the incomplete state of decentralization. A two-prong approach will ensure that public institu-tions on the one hand and civil society on the other receive the necessary support for positive democratic development in the longer term.

At the institutional level (Outcome 1), Switzerland will 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 regional priorities. Continued support for CSOs, in-cluding constituency building, will strengthen CSO influence as drivers of positive social change and po-litical dialogue partners for state authorities, resulting in more inclusive policies and programmes and bet-ter public services. CSOs will be empowered to claim spaces for democratic dialogue and to legitimately represent citizens’ concerns. This is in line with the government’s commitment to establish a Civil Society Council and increase financial support for CSOs.

Through an in-depth assessment based on a Political Economy Analysis, entry points to promote dialogue between political actors and to support reforms en-suring free and fair elections will be explored and form the basis of a new full-fledged project.

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5.2 Employment and Economic Development Domain

Domain Goal: Inclusive employment and sus-tainable economic growth

Outcome 1: Un- and underemployed, especially those at risk of poverty or exclusion, increase their employability and gain easier access to jobs created by the private sector

Outcome 2: Start-ups and SMEs accelerate their growth by increasing their competitiveness and 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.

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-ties for men and women, including youth and other groups at risk of social and economic exclusion. It will support the creation of start-ups and foster SME competitiveness and sustainable growth (Outcome 2), among others in sectors such as tourism, creative industries and green economy. Policies and regula-tions will be developed and improved, new private sector financing opportunities provided, company working practices and entrepreneurship improved, trade promoted, and domestic and international mar-kets expanded. In a synergetic manner, Switzerland will emphasize macroeconomic stability, debt man-agement capacities and engage in trade promotion.

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5.3 Infrastructure and Environment Domain

Domain Goal: Sustainable natural resource gov-ernance and equitable access to quality public services

Outcome 1: Effective and efficient institutions and organizations in selected municipalities and regions protect the environment and reduce cli-mate change-related impacts through improved natural resources governance

Outcome 2: Sustainably managed public utilities provide all citizens in selected municipalities, in-cluding socially excluded groups, with reliable and affordable water, wastewater and solid waste services

The environment, especially water resources and the biodiversity richness of Macedonia, presents one of the major values and potentials for the future devel-opment of the country. The protection and conser-vation of environmental features, the establishment 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

to awareness-raising, reducing man-made pollution, protecting the environment and reducing climate change-related impacts of floods and droughts. A particular focus will be put on institutional capacities to develop, manage and implement integrated water resources management plans and disaster risk reduc-tion measures. Conservation approaches will pur-posefully be linked to local economic development agendas with the intention to enhance economic op-portunities for the population and especially women and socially excluded groups.

Infrastructure investments and strengthening techni-cal, organisational and financial capacities of selected public utilities will assure a greater coverage of reli-able and affordable, but increasingly cost-covering, quality services in the fields of public water supply, wastewater and in addition solid waste (Outcome 2). A particular emphasis will be put on equitable ac-cess to municipal services and reducing disparities. As experience shows, the provision of quality public ser-vices also reinforces trust in state institutions, which is sorely lacking in Macedonia.

19

6. Programme Implementation and Management

Synergies: Diverse entry points exist for creating synergies to achieve greater and better results – be-tween and within the domains of intervention. For example, the development of sustainable tourism can be supported through projects in all three do-mains, covering citizen participation in the develop-ment of local tourism strategies, improvement of working practices of hospitality businesses, and ef-forts to protect the environment. In the past, SDC and SECO collaboration within one geographical cluster, often with the same partners, but on com-plementary issues, has proven to be efficient, effec-tive and sustainable. SDC and SECO will continue to explore linkages and pursue close cooperation, es-pecially in the employment and economic develop-ment domain and in the infrastructure and environ-ment domain where both institutions have a financial stake. For instance, both SECO and SDC will pursue sustainable economic growth and inclusive employ-ment, SECO through focusing its support on mac-roeconomic stability and private sector development while SDC through focusing on market system de-velopment and improving access to labour markets. SDC Regional Advisors in governance, employment & income and water & environment will facilitate a

regional perspective and knowledge exchange with other Swiss Embassies and Cooperation Offices.

Aid modalities: Switzerland enters into project part-nerships with central government entities through formal agreements. Co-financing from national and local governments is requested at project level where appropriate and feasible. At local level, collaboration with municipalities is based on contracts or enabled through implementing partner organizations, the latter based on open calls or through co-financing modalities. Switzerland will not provide sector budg-et support. The EU does not consider the technical requirements to be in place. Earmarked institutional support is, however, a possibility.

Switzerland will continue to pursue a multi-stake-holder approach by engaging with other develop-ment partners, including other donors, regional and international organizations, CSOs, NGOs and the private sector. It will continue to provide financial contributions to local, national, regional and interna-tional initiatives that benefit Macedonia. Switzerland will make a particular effort to identify, support and seek partnerships with emerging and new agents of

20

change – e.g., youth organizations. Public-private development partnerships will also be thoroughly ex-plored, especially in the employment and economic development domain.

Transversal themes: Gender and governance are transversal themes in the domains (sector govern-ance) and with partner institutions. Governance in-cludes the notion of social, political and economic inclusion, in particular the principles of equality and non-discrimination in connection with inter-ethnic relations and the social, health and economic status of the population. The performance of each of the domains of intervention is monitored with indicators related to gender and governance.

Youth, Roma and disabled persons are particular target groups and partners in the employment and economic development and democratic governance domains.

Climate change issues will be addressed within the infrastructure and environment domain specifically. The vulnerability of all projects to climate change and natural hazards will be assessed. If required, appro-priate mitigation and adaptation measures will be undertaken, such as flood and other disaster risk re-duction activities. The principles of conflict-sensitive

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 areas and politically, socially and economically ex-cluded population groups will be criteria for identify-ing project sites, besides political willingness.

Finances: The activities under this strategy will be financed through the Swiss framework credit 2017–2020 for transition aid and cooperation with Eastern Europe.

The information on planned commitments for the four-year period of this strategy is indicative. Ac-tual disbursements will depend on various factors, such as the changes in the project portfolio and the framework conditions of the partner country as well as available disbursement credits authorized by the Swiss Parliament.

Compared to the 2013-16 Cooperation Strategy, the employment and economic development domain will gain importance. The infrastructure and environ-ment domain will experience a budget cut compared to the earlier water domain. However, SECO alloca-tions to the water domain were exceptionally high during the previous Cooperation Strategy cycle and it is foreseen to remain the largest domain in financial terms. Budgets (Annex 4 for more details) will be al-located as follows in 2017-20:

Indicative budget allocation per domain CS 2017–20201

In Mio CHF in % of total budget

Democratic Governance 24.2 (SDC) 32%

Employment and Economic Development 21.0 (SDC 17.0 / SECO 4.0) 28%

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

2

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.

21

7. Strategic Steering

The purpose of the Cooperation Strategy monitoring system is to provide crucial but selective information on a regular and timely ba sis to support steering the implementation of the Cooperation Strategy in order to achieve its objectives. Nature and quality of the information collected through monitoring has to be in line with this responsibility. The monitoring system offers a dependable global picture, from an “eagle’s view”, of the programme reality, keeping a critical distance from the trials and tribulations of project implementation. The ambition of the monitoring system is to check progress and shortcomings of the entire programme from the “end perspective” of tar-gets and goal achievement, measured by outcomes, effects and impacts (intended or not). This approach will assist the programme steering process by pro-viding a basis for adjusting the Cooperation Strategy portfolio if needed.

The monitoring system of the new Cooperation Strategy is organized so that the effectiveness and coherence of its implementation is checked at pro-gramme level through the use of a monitoring matrix deriving from the Results Framework. On an annual basis, it assesses progress towards achieving expect-ed outcomes of Swiss interventions and their con-tributions to country development, including with

regard to social, political and economic inclusion and the transversal themes gender and governance.

The monitoring system also offers an overview of how the Cooperation Strategy adheres to the con-text using an instrument for outsourced analysis of context developments relevant for the Cooperation Strategy. The Monitoring System for Development Related Changes (MERV) is also used to this end. The scenario table (Annex 5) contains the adaptations to the Cooperation Strategy which may be needed based on possible changes in the context.

Efficiency is measured by monitoring the overall Em-bassy operational targets. These targets reflect the best use of human and financial resources in achiev-ing the objectives of the projects and programmes implemented with Swiss support. For this purpose, operational plans with objectives and indicators are being developed and reviewed annually.

The monitoring system has been developed in a man-ner that provides possibilities for assessing and evalu-ating the usefulness of all monitoring instruments; based on the findings they can be amended to en-sure more accurate and practical monitoring.

22

Anne

x 1

Swiss

Coo

pera

tion

Stra

tegy

for M

aced

onia

at a

Gla

nce

Ann

ex 1

: Sw

iss

Coo

pera

tion

Stra

tegy

for M

aced

onia

at a

Gla

nce

Syno

psis

of t

he S

wis

s C

oope

ratio

n St

rate

gy M

aced

onia

201

7-20

20

Ove

rall

Goa

l

To s

uppo

rt M

aced

onia

in it

s re

form

s to

mee

t Eur

opea

n st

anda

rds

and

to b

uild

a s

ocia

lly-in

clus

ive

dem

ocra

cy a

nd m

arke

t eco

nom

y,

whi

le e

nsur

ing

soun

d go

vern

ance

of n

atur

al re

sour

ces.

Dom

ains

of i

nter

vent

ion:

Obj

ectiv

es

Dem

ocra

tic g

over

nanc

e

(SD

C)

Empl

oym

ent a

nd e

cono

mic

dev

elop

men

t (S

DC

and

SEC

O)

Infr

astr

uctu

re a

nd e

nviro

nmen

t (S

DC

and

SEC

O)

Stre

ngth

ened

dem

ocra

tic g

over

nanc

e at

ce

ntra

l and

loca

l lev

els.

In

clus

ive

empl

oym

ent a

nd s

usta

inab

le

econ

omic

gro

wth

. Su

stai

nabl

e na

tura

l res

ourc

e go

vern

ance

and

eq

uita

ble

acce

ss to

qua

lity

publ

ic s

ervi

ces.

Dom

ains

of i

nter

vent

ion:

Out

com

es

Mor

e le

gitim

ate

inst

itutio

ns a

t cen

tral a

nd lo

cal

leve

ls p

ract

ice

acco

unta

ble

and

incl

usiv

e po

licy

proc

esse

s.

Un-

and

und

erem

ploy

ed, e

spec

ially

thos

e at

ris

k of

pov

erty

or e

xclu

sion

, inc

reas

e th

eir

empl

oyab

ility

and

gain

eas

ier a

cces

s to

jobs

cr

eate

d by

the

priv

ate

sect

or.

Effe

ctiv

e an

d ef

ficie

nt in

stitu

tions

and

or

gani

zatio

ns in

sel

ecte

d m

unic

ipal

ities

and

re

gion

s pr

otec

t the

env

ironm

ent a

nd re

duce

cl

imat

e ch

ange

-rela

ted

impa

cts

thro

ugh

impr

oved

nat

ural

reso

urce

s go

vern

ance

.

Incr

ease

d ci

tizen

par

ticip

atio

n in

pub

lic a

ffairs

fo

ster

s a

polit

ical

cul

ture

of d

ialo

gue

betw

een

citiz

ens,

CSO

s an

d pu

blic

inst

itutio

ns a

nd

resu

lts in

pol

icie

s an

d pr

actic

es re

flect

ing

all

citiz

ens’

nee

ds.

Star

t-ups

and

SM

Es a

ccel

erat

e th

eir g

row

th b

y in

crea

sing

thei

r com

petit

iven

ess

and

bene

fitin

g fro

m a

stro

nger

ent

repr

eneu

rshi

p ec

osys

tem

and

impr

oved

fram

ewor

k co

nditi

ons.

Sust

aina

bly

man

aged

pub

lic u

tiliti

es p

rovi

de a

ll ci

tizen

s in

sel

ecte

d m

unic

ipal

ities

, inc

ludi

ng

soci

ally

exc

lude

d gr

oups

, with

relia

ble

and

affo

rdab

le w

ater

, was

tew

ater

and

sol

id w

aste

se

rvic

es.

23

Anne

x 2

Resu

lts F

ram

ewor

k

1/36

A

nn

ex

1 –

Re

su

lts

Fra

me

wo

rk1

1 T

he R

esul

ts F

ram

ewor

k is

sub

ject

to c

hang

es a

nd a

dapt

atio

ns th

roug

hout

the

cour

se o

f im

plem

enta

tion.

Ple

ase

refe

r to

the

elec

troni

c ve

rsio

n of

this

doc

umen

t ava

ilabl

e at

w

ww

.eda

.adm

in.c

h fo

r the

late

st u

pdat

es.

·

De

mo

cra

tic

Go

ve

rna

nc

e D

om

ain

·

Do

ma

in g

oa

l: S

tren

gthe

ned

dem

ocra

tic g

over

nanc

e at

cen

tral

and

loca

l lev

els

(1)

Sw

iss

po

rtfo

lio

ou

tco

me

s

(2)

Co

ntr

ibu

tio

n o

f S

wis

s p

rog

ram

me

s

(3)

Co

un

try

de

ve

lop

me

nt

ou

tco

me

s

Ou

tco

me

sta

tem

en

t 1

Mo

re l

eg

itim

ate

in

sti

tuti

on

s a

t c

en

tra

l a

nd

lo

ca

l

lev

els

pra

cti

ce

ac

co

un

tab

le a

nd

in

clu

siv

e p

oli

cy

pro

ce

ss

es

.

Indi

cato

r 1:

Lo

cal

auth

oriti

es

info

rm

citiz

ens

trans

pare

ntly

an

d in

volv

e th

em

in

deci

sion

-mak

ing-

proc

esse

s.

They

ta

ke

spec

ific

mea

sure

s fo

r co

nsid

erat

ion

of i

nter

ests

of

wom

en a

nd m

en e

qual

ly

(AR

I GO

1, S

DG

16)

Bas

elin

e: C

itize

ns s

atis

fact

ion

with

the

trans

pare

ncy

and

acco

unta

bilit

y of

mun

icip

al b

odie

s on

1-1

0 sc

ale:

4,6

7 (2

015)

Targ

et: C

itize

n sa

tisfa

ctio

n w

ith th

e tra

nspa

renc

y an

d ac

coun

tabi

lity

of m

unic

ipal

bod

ies

on 1

-10

scal

e: 5

,5 o

n tra

nspa

renc

y an

d ac

coun

tabi

lity

Bas

elin

e: 6

% o

f par

ticip

atin

g m

unic

ipal

ities

hav

e al

loca

ted

budg

et it

ems

for t

he im

plem

enta

tion

of

activ

ities

incl

uded

in th

e Ac

tion

Plan

for E

qual

O

ppor

tuni

ties

of W

omen

and

Men

(201

5).

Targ

et: A

t lea

st 5

0% o

f all

parti

cipa

ting

mun

icip

aliti

es

have

allo

cate

d bu

dget

item

s fo

r the

impl

emen

tatio

n of

ac

tiviti

es in

clud

ed in

the

Actio

n Pl

an fo

r Equ

al

Opp

ortu

nitie

s of

Wom

en a

nd M

en

The

Swis

s po

rtfol

io o

utco

mes

con

tribu

te to

the

coun

try

deve

lopm

ent o

utco

mes

as

follo

ws:

By s

treng

then

ing

the

capa

citie

s of

the

legi

slat

ive

pow

er, b

oth

cent

ral a

nd lo

cal,

and

by e

nabl

ing

activ

e pa

rtici

patio

n of

the

citiz

ens

incl

udin

g th

ose

of th

e un

derd

evel

oped

regi

ons,

as

wel

l as

wom

en, e

thni

c co

mm

uniti

es a

nd o

ther

dis

adva

ntag

ed g

roup

s, lo

cal

and

cent

ral g

over

nmen

t is

held

acc

ount

able

thro

ugh

incr

ease

d ov

ersi

ght.

This

lead

s to

gre

ater

inte

rnal

st

abilit

y an

d m

ore

cond

uciv

e re

gula

tory

fram

ewor

ks,

whi

ch u

ltim

atel

y co

ntrib

ute

to q

ualit

y se

rvic

es, p

oliti

cal

parti

cipa

tion

and

repr

ese n

tatio

n of

Mac

edon

ian

citiz

ens.

Ass

umpt

ions

:

• Al

l lev

els,

nat

iona

l, re

gion

al, a

nd lo

cal,

are

resp

onsi

ve a

nd w

illing

to c

ontri

bute

to e

ffect

ive

bala

nced

regi

onal

dev

elop

men

t pol

icy

impl

emen

tatio

n

• In

tere

st o

f ins

titut

ions

to c

oope

rate

• W

illing

ness

of c

ivil

soci

ety

to a

ddre

ss o

wn

Ou

tco

me

sta

tem

en

t 1

Sou

rces

: EU

Pro

gres

s R

epor

t; Pr

ogra

mm

e fo

r su

stai

nabl

e lo

cal d

evel

opm

ent a

nd d

ecen

traliz

atio

n in

th

e R

epub

lic o

f Mac

edon

ia 2

015 -

2020

; Add

ition

al

Prot

ocol

to th

e Eu

rope

an C

harte

r of L

ocal

Sel

f-G

over

nmen

t on

the

right

to p

artic

ipat

e in

the

affa

irs o

f a

loca

l aut

horit

y;

1a

) Im

pro

ve

d f

un

cti

on

ing

of

ov

ers

igh

t in

sti

tuti

on

s

Fiel

d of

obs

erva

tion:

Key

cen

tral a

nd s

tate

ove

rsig

ht

inst

itutio

ns a

re a

ble

to c

arry

out

thei

r fun

ctio

ns

proa

ctiv

ely,

effe

ctiv

ely

and

free

from

pol

itica

l pre

ssur

e.

Bas

elin

e: U

nful

fille

d ro

le o

f leg

isla

tive,

cen

tral a

nd lo

cal

over

sigh

t ins

titut

ions

, in

term

s of

hol

ding

the

exec

utiv

e ac

coun

tabl

e.

Targ

et: I

ndep

ende

nt o

vers

ight

bod

ies

are

able

to c

arry

ou

t the

ir ro

les

resp

onsi

bly.

1b

) D

ec

rea

se

d r

eg

ion

al

dis

pa

riti

es

Sou

rce:

Law

on

Bala

nced

Reg

iona

l Dev

elop

men

t,

24

2/36

3 Ave

rage

gra

de o

f the

wor

k of

the

Asse

mbl

y of

the

Rep

ublic

of M

aced

onia

mea

sure

d in

the

perio

d 20

09-2

014

base

d on

a n

atio

n-w

ide

publ

ic o

pini

on s

urve

y co

nduc

ted

by ID

SCS

abou

t the

pub

lic’s

pe

rcep

tion

on th

e w

ork

of th

e Pa

rliam

ent.

Indi

cato

r 2: A

lloca

tion

of fu

nds

for b

alan

ced

regi

onal

de

velo

pmen

t acc

ordi

ng to

crit

eria

as

pres

crib

ed in

the

Law

of B

alan

ced

Reg

iona

l Dev

elop

men

t. (A

RI G

O2,

SD

G 1

6+17

)

Bas

elin

e: E

UR

13.

8 m

il. a

nnua

lly fr

om c

entra

l go

vern

men

t to

the

regi

ons

(201

5)

Targ

et: u

p to

75%

incr

ease

reac

hing

up

to E

UR

24.

15

milli

on a

nnua

lly

Indi

cato

r 3: Q

ualit

y of

the

legi

slat

ive

proc

ess

in a

nd th

e ov

ersi

ght o

f the

nat

iona

l par

liam

ent.

Bas

elin

e: 3

6.5%

of M

Ps u

sed

the

Parli

amen

tary

In

stitu

te’s

rese

arch

ser

vice

s in

the

legi

slat

ive

proc

ess

(201

4)

Targ

et: 7

0% o

f MPs

use

PI’s

rese

arch

ser

vice

s in

the

legi

slat

ive

proc

ess

Bas

elin

e an

d ta

rget

for o

vers

ight

- tb

d

Ou

tco

me

Sta

tem

en

t 2

Inc

rea

se

d c

itiz

en

pa

rtic

ipa

tio

n i

n p

ub

lic

aff

air

s

fos

ters

a p

oli

tic

al

cu

ltu

re o

f d

ialo

gu

e b

etw

ee

n

cit

ize

ns

, C

SO

s a

nd

pu

bli

c i

ns

titu

tio

ns

an

d re

su

lts

in

po

lic

ies

an

d p

rac

tic

es

re

fle

cti

ng

all

cit

ize

ns

’ n

ee

ds

.

Indi

cato

r 1: L

evel

of c

ivic

eng

agem

ent f

or s

ocia

l ch

ange

thro

ugh

polic

y m

akin

g co

ntrib

utio

ns o

f CSO

s.

wea

knes

ses

• W

illing

ness

of l

egis

lativ

e to

ass

ume

over

sigh

t fu

nctio

n; s

tabi

lizat

ion

of p

oliti

cal c

risis

Ris

ks:

• W

orse

ning

of t

he p

oliti

cal c

risis

lead

s to

dec

reas

e of

pol

itica

l will

for a

ddre

ssin

g ba

lanc

ed re

gion

al

deve

lopm

ent,

in p

artic

ular

at t

he n

atio

nal l

evel

• G

over

nmen

t und

erm

ines

dev

olut

ion

of fi

nanc

ial

pow

ers

• In

stru

men

taliz

atio

n of

CSO

s by

pol

itica

l par

ties

for

own

mea

ns

• El

ecto

ral s

yste

m je

opar

dize

s ov

ersi

ght f

unct

ion

• C

ontin

ued

polit

ical

cris

is a

fter 2

016

elec

tions

/vol

atilit

y

Stra

tegy

for B

alan

ced

Reg

iona

l Dev

elop

men

t 200

9-20

19

Indi

cato

r: D

ispa

ritie

s in

the

leve

l of d

evel

opm

ent

betw

een

the

mos

t and

the

leas

t dev

elop

ed p

lann

ing

regi

ons.

Bas

elin

e: D

ispa

ritie

s at

2.6

tim

es

Targ

et: R

educ

ed d

ispa

ritie

s at

2.2

tim

es b

y th

e en

d of

20

19

1c

) C

itiz

en

s’

tru

st

in P

arl

iam

en

t

Sou

rce:

IDSC

S, IR

I sur

veys

Indi

cato

r: C

itize

n sa

tisfa

ctio

n w

ith th

e w

ork

of

Parli

amen

t

Bas

elin

e: 2

.693 (2

014)

Targ

et: m

ore

than

3.0

Ou

tco

me

sta

tem

en

t 2

Po

lic

y d

ialo

gu

e p

roc

es

se

s i

nc

lud

e g

rea

ter

CS

O

pa

rtic

ipa

tio

n.

Sou

rce:

Stra

tegy

for C

oope

ratio

n of

the

Gov

ernm

ent

with

the

Civ

il So

ciet

y se

ctor

201

2 -20

17

Indi

cato

r: E

stab

lishm

ent o

f the

Cou

ncil

for

Coo

pera

tion

betw

een

the

Civ

il So

ciet

y an

d th

e 3/36

2 The

Civ

icus

Civ

il So

ciet

y In

dex

(CSI

) is

an a

ctio

n re

sear

ch p

roje

ct th

at c

ompr

ehen

sive

ly a

sses

ses

the

stat

e of

civ

il so

ciet

y in

a ra

nge

of c

ount

ries

arou

nd th

e w

orld

. CSI

ass

esse

s st

ate

of c

ivil

soci

ety

by

exam

inin

g fiv

e co

re d

imen

sion

s: C

ivic

Eng

agem

ent,

Leve

l of O

rgan

izat

ion,

Pra

ctic

e of

Val

ues,

Per

cept

ion

of Im

pact

and

Ext

erna

l Env

ironm

ent.

Eac

h di

men

sion

con

sist

s of

sev

eral

indi

cato

rs th

at a

re

grou

ped

into

25

sub-

dim

ensi

ons.

All

five

dim

ensi

ons

are

stud

ied

usin

g se

vera

l met

hods

(prim

ary

and

seco

ndar

y re

sear

ch):

repr

esen

tativ

e po

pula

tion

surv

ey, a

sur

vey

of C

SOs,

in-d

epth

inte

rvie

ws

with

st

akeh

olde

rs fr

om o

ther

sec

tors

, reg

iona

l foc

us g

roup

s, a

lite

ratu

re re

view

, med

ia re

view

and

cas

e st

udie

s.

Bas

elin

e: C

ivil

Soci

ety

Inde

x2 (CSI

) 52,

6% (2

011)

Targ

et: C

SI 5

5,2%

(201

8)

Indi

cato

r 2: T

he in

dica

tor,

base

line

and

targ

et w

ith

rega

rds

to c

ultu

re o

f pol

itica

l dia

logu

e ar

e in

pr

epar

atio

n an

d w

ill be

det

erm

ined

and

add

ed to

the

Res

ults

Fra

mew

ork.

Gov

ernm

ent a

nd a

vaila

bilit

y of

fina

ncia

l sup

port

to

CSO

s

Bas

elin

e: T

he C

ounc

il is

not

yet

form

ed a

nd fi

nanc

ial

supp

ort t

o C

SOs

is E

UR

250

’000

ann

ually

.

Targ

et: T

he C

ivil

Soci

ety

Cou

ncil

is e

stab

lishe

d an

d fin

anci

al s

uppo

rt fo

r CSO

s is

incr

ease

d.

(4)

Lin

es

of

inte

rve

nti

on

(S

wis

s p

rog

ram

me

)

• Su

ppor

t mun

icip

al c

ounc

ils in

incr

easi

ng th

eir e

ffect

iven

ess

and

auto

nom

y by

ass

umin

g th

eir o

vers

ight

, rep

rese

ntat

ion

and

legi

slat

ive

role

effe

ctiv

ely,

at a

ll st

ages

of t

he

budg

et c

ycle

.

• Su

ppor

t the

suc

cess

ful i

mpl

emen

tatio

n of

the

Law

on

Bala

nced

Reg

iona

l Dev

elop

men

t thr

ough

mor

e tra

nspa

rent

allo

catio

n of

fund

s ac

cord

ing

to th

e le

vel o

f de

velo

pmen

t of t

he re

gion

s.

• Su

ppor

t leg

isla

tive,

ove

rsig

ht a

nd re

pres

enta

tive

func

tions

of P

arlia

men

t thr

ough

impr

oved

ser

vice

s of

the

Parli

amen

tary

Inst

itute

and

pos

sibl

y su

ppor

ting

the

wor

k of

the

parli

amen

tary

ove

rsig

ht c

omm

ittee

s.

• Th

roug

h a

lear

ning

pro

cess

, a “c

ritic

al m

ass”

of 1

00 C

SOs,

sup

porte

d by

thei

r con

stitu

enci

es, t

hat a

re a

ble

to in

itiat

e po

sitiv

e so

cial

cha

nges

resu

lting

in s

trong

er

inst

itutio

ns re

cept

ive

for c

itize

ns’ n

eeds

, fre

e m

edia

and

pro

gres

s in

the

rule

of l

aw.

• Su

ppor

t for

free

, dem

ocra

tic a

nd fa

ir el

ectio

n pr

oces

ses

(tbd)

.

·

(5)

Re

so

urc

es

, p

art

ne

rsh

ips

(S

wis

s p

rog

ram

me

)

Budg

et: C

HF

24.2

milli

on (S

DC

)

• Th

e cu

rrent

mai

n im

plem

entin

g pa

rtner

s ar

e in

tern

atio

nal o

rgan

isat

ions

and

loca

l par

tner

org

anis

atio

ns a

s U

ND

P, G

IZ, N

DI,

NIR

AS/M

CIC

.

• Th

e m

ain

natio

nal c

ount

erpa

rts a

re th

e M

inis

try o

f Loc

al S

elf-g

over

nanc

e, M

inis

try o

f Fin

ance

, the

Cab

inet

of t

he D

eput

y Pr

ime

Min

iste

r for

Eco

nom

ic A

ffairs

, the

N

atio

nal P

arlia

men

t, m

unic

ipal

ities

, may

ors,

mun

icip

al c

ounc

ils, R

egio

nal C

entre

s an

d re

gion

al c

ounc

ils. P

roje

cts

are

coor

dina

ted

with

the

othe

r don

ors

activ

e in

the

sam

e fie

ld: U

SAID

, EU

, UN

DP

and

GIZ

.

25

3/36

2 The

Civ

icus

Civ

il So

ciet

y In

dex

(CSI

) is

an a

ctio

n re

sear

ch p

roje

ct th

at c

ompr

ehen

sive

ly a

sses

ses

the

stat

e of

civ

il so

ciet

y in

a ra

nge

of c

ount

ries

arou

nd th

e w

orld

. CSI

ass

esse

s st

ate

of c

ivil

soci

ety

by

exam

inin

g fiv

e co

re d

imen

sion

s: C

ivic

Eng

agem

ent,

Leve

l of O

rgan

izat

ion,

Pra

ctic

e of

Val

ues,

Per

cept

ion

of Im

pact

and

Ext

erna

l Env

ironm

ent.

Eac

h di

men

sion

con

sist

s of

sev

eral

indi

cato

rs th

at a

re

grou

ped

into

25

sub-

dim

ensi

ons.

All

five

dim

ensi

ons

are

stud

ied

usin

g se

vera

l met

hods

(prim

ary

and

seco

ndar

y re

sear

ch):

repr

esen

tativ

e po

pula

tion

surv

ey, a

sur

vey

of C

SOs,

in-d

epth

inte

rvie

ws

with

st

akeh

olde

rs fr

om o

ther

sec

tors

, reg

iona

l foc

us g

roup

s, a

lite

ratu

re re

view

, med

ia re

view

and

cas

e st

udie

s.

Bas

elin

e: C

ivil

Soci

ety

Inde

x2 (CSI

) 52,

6% (2

011)

Targ

et: C

SI 5

5,2%

(201

8)

Indi

cato

r 2: T

he in

dica

tor,

base

line

and

targ

et w

ith

rega

rds

to c

ultu

re o

f pol

itica

l dia

logu

e ar

e in

pr

epar

atio

n an

d w

ill be

det

erm

ined

and

add

ed to

the

Res

ults

Fra

mew

ork.

Gov

ernm

ent a

nd a

vaila

bilit

y of

fina

ncia

l sup

port

to

CSO

s

Bas

elin

e: T

he C

ounc

il is

not

yet

form

ed a

nd fi

nanc

ial

supp

ort t

o C

SOs

is E

UR

250

’000

ann

ually

.

Targ

et: T

he C

ivil

Soci

ety

Cou

ncil

is e

stab

lishe

d an

d fin

anci

al s

uppo

rt fo

r CSO

s is

incr

ease

d.

(4)

Lin

es

of

inte

rve

nti

on

(S

wis

s p

rog

ram

me

)

• Su

ppor

t mun

icip

al c

ounc

ils in

incr

easi

ng th

eir e

ffect

iven

ess

and

auto

nom

y by

ass

umin

g th

eir o

vers

ight

, rep

rese

ntat

ion

and

legi

slat

ive

role

effe

ctiv

ely,

at a

ll st

ages

of t

he

budg

et c

ycle

.

• Su

ppor

t the

suc

cess

ful i

mpl

emen

tatio

n of

the

Law

on

Bala

nced

Reg

iona

l Dev

elop

men

t thr

ough

mor

e tra

nspa

rent

allo

catio

n of

fund

s ac

cord

ing

to th

e le

vel o

f de

velo

pmen

t of t

he re

gion

s.

• Su

ppor

t leg

isla

tive,

ove

rsig

ht a

nd re

pres

enta

tive

func

tions

of P

arlia

men

t thr

ough

impr

oved

ser

vice

s of

the

Parli

amen

tary

Inst

itute

and

pos

sibl

y su

ppor

ting

the

wor

k of

the

parli

amen

tary

ove

rsig

ht c

omm

ittee

s.

• Th

roug

h a

lear

ning

pro

cess

, a “c

ritic

al m

ass”

of 1

00 C

SOs,

sup

porte

d by

thei

r con

stitu

enci

es, t

hat a

re a

ble

to in

itiat

e po

sitiv

e so

cial

cha

nges

resu

lting

in s

trong

er

inst

itutio

ns re

cept

ive

for c

itize

ns’ n

eeds

, fre

e m

edia

and

pro

gres

s in

the

rule

of l

aw.

• Su

ppor

t for

free

, dem

ocra

tic a

nd fa

ir el

ectio

n pr

oces

ses

(tbd)

.

·

(5)

Re

so

urc

es

, p

art

ne

rsh

ips

(S

wis

s p

rog

ram

me

)

Budg

et: C

HF

24.2

milli

on (S

DC

)

• Th

e cu

rrent

mai

n im

plem

entin

g pa

rtner

s ar

e in

tern

atio

nal o

rgan

isat

ions

and

loca

l par

tner

org

anis

atio

ns a

s U

ND

P, G

IZ, N

DI,

NIR

AS/M

CIC

.

• Th

e m

ain

natio

nal c

ount

erpa

rts a

re th

e M

inis

try o

f Loc

al S

elf-g

over

nanc

e, M

inis

try o

f Fin

ance

, the

Cab

inet

of t

he D

eput

y Pr

ime

Min

iste

r for

Eco

nom

ic A

ffairs

, the

N

atio

nal P

arlia

men

t, m

unic

ipal

ities

, may

ors,

mun

icip

al c

ounc

ils, R

egio

nal C

entre

s an

d re

gion

al c

ounc

ils. P

roje

cts

are

coor

dina

ted

with

the

othe

r don

ors

activ

e in

the

sam

e fie

ld: U

SAID

, EU

, UN

DP

and

GIZ

.

26

4/36

4 SEC

O S

tand

ard

Indi

cato

rs T

O2

BL1:

1; i

n lin

e w

ith S

DC

AR

I EV3

; SD

G 1

, 5, 8

, 10.

5 F

or c

ompa

rison

pur

pose

s, 1

973

peop

le w

ere

new

ly e

mpl

oyed

in th

e pe

riod

2015

-201

6.

6 Of w

hich

SD

C 4

100

(45%

you

th, 3

5% w

omen

, 10%

oth

er a

t-ris

k-of

pov

erty

or s

ocia

l and

eco

nom

ic e

xclu

sion

) and

SEC

O 3

00

7 Cal

cula

ted

on th

e ba

sis

of th

e av

erag

e pa

id n

et s

alar

y fo

r fou

r sec

tors

: tou

rism

and

hos

pita

lity,

IT, o

rgan

ic a

gric

ultu

re a

nd s

usta

inab

le b

uild

ing

in 2

016

·

Em

plo

ym

en

t a

nd

Ec

on

om

ic D

ev

elo

pm

en

t D

om

ain

Do

ma

in g

oa

l: I

nc

lus

ive

em

plo

ym

en

t a

nd

su

sta

ina

ble

ec

on

om

ic g

row

th

(1)

Sw

iss

po

rtfo

lio

ou

tco

me

s

(2)

Co

ntr

ibu

tio

n o

f S

wis

s p

rog

ram

me

(3

) C

ou

ntr

y d

ev

elo

pm

en

t o

utc

om

es

Ou

tco

me

sta

tem

en

t 1

Un

- a

nd

un

de

rem

plo

ye

d,

es

pe

cia

lly

th

os

e a

t ri

sk

of

po

ve

rty

or

ex

clu

sio

n,

inc

rea

se

th

eir

em

plo

ya

bil

ity

an

d g

ain

ea

sie

r a

cc

es

s t

o j

ob

s

cre

ate

d b

y t

he

pri

va

te s

ec

tor

Indi

cato

r 1: #

of p

eopl

e ne

wly

(sel

f-) e

mpl

oyed

4

Bas

elin

e: 0

5

Targ

et: 4

4006

Indi

cato

r 2: C

hang

e in

mon

thly

net

sal

ary

of e

nd

bene

ficia

ries.

(AR

I E1;

SD

G 8

)

Bas

elin

e: A

vera

ge n

et m

onth

ly s

alar

y of

MKD

19

’000

7

Targ

et: 1

0% in

crea

se

Indi

cato

r 3: #

of p

eopl

e w

ho a

cqui

re n

ew m

arke

t-re

leva

nt s

kills

(% o

f whi

ch g

aine

d em

ploy

men

t /%

of

whi

ch a

re a

t-ris

k-of

pov

erty

or s

ocia

l and

The

Swis

s po

rtfol

io o

utco

mes

con

tribu

te to

the

coun

try d

evel

opm

ent o

utco

mes

as

follo

ws:

Thro

ugh

stre

ngth

enin

g vo

catio

nal t

rain

ing

and

mat

ch-m

akin

g se

rvic

e pr

ovid

ers,

you

ng a

nd g

roup

s at

risk

of p

over

ty o

r soc

ial a

nd e

cono

mic

exc

lusi

on

will

acqu

ire re

leva

nt s

kills

and

will

acce

ss th

e jo

b m

arke

t mor

e ea

sily

.

Thro

ugh

stre

ngth

enin

g se

lect

ed m

arke

t sys

tem

s an

d im

prov

ing

fram

ewor

k co

nditi

ons

thro

ugh

polic

ies

mad

e in

a p

artic

ipat

ory

way

, inv

olvi

ng th

e bu

sine

ss s

ecto

r; he

lpin

g co

mpa

nies

impr

ove

thei

r w

orki

ng p

ract

ices

, exp

and

thei

r mar

kets

, and

ac

cess

fina

nce;

as

wel

l as

fost

erin

g en

trepr

eneu

rshi

p, e

xist

ing

com

pani

es w

ill ac

cele

rate

thei

r gro

wth

and

new

com

pani

es w

ill be

cr

eate

d.

Ass

umpt

ions

:

• C

ontin

ued

econ

omic

gro

wth

• G

over

nmen

t rem

ains

com

mitt

ed to

gro

wth

and

Ou

tco

me

sta

tem

en

t 1

Inc

rea

se

d e

mp

loy

me

nt

Sou

rce:

Nat

iona

l Em

ploy

men

t Stra

tegy

201

6-20

20; D

raft

Nat

iona

l Stra

tegy

on

Educ

atio

n 20

16-2

020,

Nat

iona

l Stra

tegy

on

Red

uctio

n of

Pov

erty

and

Soc

ial E

xclu

sion

201

0-20

20

Indi

cato

r 1a:

Une

mpl

oym

ent r

ate

Bas

elin

e: 2

6% a

mon

g to

tal p

opul

atio

n (2

015)

(48%

am

ong

yout

h (2

015)

, 53%

am

ong

Rom

a (2

014)

)

Targ

et: 2

2% a

mon

g to

tal p

opul

atio

n by

201

8 (n

o se

para

te

targ

ets

on y

outh

and

Rom

a)

Indi

cato

r 1b:

# o

f new

jobs

Bas

elin

e: 1

2,11

3 (2

015)

Targ

et: a

ppro

xim

atel

y 12

,700

new

jobs

ann

ually

Imp

rov

ed

ma

tch

be

twe

en

sk

ills

de

ma

nd

an

d s

up

ply

Sou

rce:

Dra

ft St

rate

gy o

n Ed

ucat

ion

2016

-202

0 (e

xpec

ted

to

5/36

8 Exa

ct ta

rget

s in

% w

ill be

dev

elop

ed w

hen

proj

ect o

n vo

catio

nal s

kills

dev

elop

men

t is

in a

mor

e ad

vanc

ed s

tage

. 9 F

or c

ompa

rison

pur

pose

s, C

HF

56 m

illion

of a

dditi

onal

sal

es w

ere

achi

eved

in th

e pe

riod

2015

-201

6, th

is w

as h

owev

er e

xcep

tiona

lly h

igh

due

to h

igh

inve

stm

ents

. 10

For

com

paris

on p

urpo

ses,

9 p

olic

ies

and

regu

latio

ns w

ere

deve

lope

d in

a p

artic

ipat

ory

proc

ess

in th

e pe

riod

2013

-201

6.

12 IL

O L

abou

r Mar

ket T

rans

ition

s of

You

ng W

omen

and

Men

in M

aced

onia

. 13

Sou

rce:

the

Nat

iona

l Ban

k of

the

Rep

ublic

of M

aced

onia

.

econ

omic

exc

lusi

on).

(AR

I EV1

+EV3

; SD

G 4

)

Bas

elin

e: 0

Targ

et: 5

’000

(% o

f whi

ch g

aine

d em

ploy

men

t / %

of

whi

ch a

re a

t-ris

k-of

pov

erty

or s

ocia

l and

ec

onom

ic e

xclu

sion

8 )

Ou

tco

me

sta

tem

en

t 2

Sta

rt-u

ps

an

d S

ME

s a

cc

ele

rate

th

eir

gro

wth

by

inc

rea

sin

g t

he

ir c

om

pe

titi

ve

ne

ss

an

d b

en

efi

tin

g

fro

m a

str

on

ge

r e

ntr

ep

ren

eu

rsh

ip e

co

sy

ste

m

an

d i

mp

rov

ed

fra

me

wo

rk c

on

dit

ion

s.

Indi

cato

r 1: I

ncre

ase

in (a

ggre

gate

d) s

ales

vol

ume

of b

enef

icia

ry S

MEs

Bas

elin

e: 0

9

Targ

et: C

HF

20 m

illion

Indi

cato

r 2: #

of p

olic

ies

and

regu

latio

ns d

evel

oped

in

a p

artic

ipat

ory

proc

ess,

invo

lvin

g th

e pr

ivat

e se

ctor

Bas

elin

e: 0

10

Targ

et: 1

0 po

licie

s th

at p

rovi

de e

nabl

ing

cond

ition

s fo

r the

priv

ate

sect

or a

re im

prov

ed o

r dev

elop

ed

empl

oym

ent-e

nhan

cing

pol

icie

s

• EU

acc

essi

on p

roce

ss c

ontin

ues

Ris

ks:

• Ec

onom

ic d

ownt

urn

• U

nsus

tain

able

deb

t lev

els

lead

ing

to

mac

roec

onom

ic in

stab

ility

• Pr

olon

ged

polit

ical

inst

abilit

y af

fect

ing

willi

ngne

ss o

f com

pani

es to

inve

st in

gro

wth

be a

dopt

ed la

te 2

016)

Ind

ica

tor

3:

Aver

age

scho

ol-to

-wor

k tra

nsiti

on fo

r sec

onda

ry

educ

atio

n

Bas

elin

e: 3

1.7

mon

ths12

(201

4)

Targ

et: D

ecre

ased

tran

sitio

n tim

e.

Ou

tco

me

sta

tem

en

t 2

Inc

rea

se

d e

co

no

mic

gro

wth

Sou

rce:

Com

petit

iven

ess

Stra

tegy

and

Act

ion

Plan

of t

he

Rep

ublic

of M

aced

onia

201

6 –

2020

Indi

cato

r 1: G

DP

grow

th ra

te

Bas

elin

e: 3

.7%

(201

5)13

Targ

et: 4

.5%

Indi

cato

r 2:

# of

act

ive

com

pani

es in

Mac

edon

ia

Bas

elin

e: 7

0,65

9 (2

014)

Targ

et: 8

0,00

0

Indi

cato

r 3: R

anki

ng in

the

WEF

Glo

bal C

ompe

titiv

enes

s In

dex

Bas

elin

e: 6

0th

27

5/36

8 Exa

ct ta

rget

s in

% w

ill be

dev

elop

ed w

hen

proj

ect o

n vo

catio

nal s

kills

dev

elop

men

t is

in a

mor

e ad

vanc

ed s

tage

. 9 F

or c

ompa

rison

pur

pose

s, C

HF

56 m

illion

of a

dditi

onal

sal

es w

ere

achi

eved

in th

e pe

riod

2015

-201

6, th

is w

as h

owev

er e

xcep

tiona

lly h

igh

due

to h

igh

inve

stm

ents

. 10

For

com

paris

on p

urpo

ses,

9 p

olic

ies

and

regu

latio

ns w

ere

deve

lope

d in

a p

artic

ipat

ory

proc

ess

in th

e pe

riod

2013

-201

6.

12 IL

O L

abou

r Mar

ket T

rans

ition

s of

You

ng W

omen

and

Men

in M

aced

onia

. 13

Sou

rce:

the

Nat

iona

l Ban

k of

the

Rep

ublic

of M

aced

onia

.

econ

omic

exc

lusi

on).

(AR

I EV1

+EV3

; SD

G 4

)

Bas

elin

e: 0

Targ

et: 5

’000

(% o

f whi

ch g

aine

d em

ploy

men

t / %

of

whi

ch a

re a

t-ris

k-of

pov

erty

or s

ocia

l and

ec

onom

ic e

xclu

sion

8 )

Ou

tco

me

sta

tem

en

t 2

Sta

rt-u

ps

an

d S

ME

s a

cc

ele

rate

th

eir

gro

wth

by

inc

rea

sin

g t

he

ir c

om

pe

titi

ve

ne

ss

an

d b

en

efi

tin

g

fro

m a

str

on

ge

r e

ntr

ep

ren

eu

rsh

ip e

co

sy

ste

m

an

d i

mp

rov

ed

fra

me

wo

rk c

on

dit

ion

s.

Indi

cato

r 1: I

ncre

ase

in (a

ggre

gate

d) s

ales

vol

ume

of b

enef

icia

ry S

MEs

Bas

elin

e: 0

9

Targ

et: C

HF

20 m

illion

Indi

cato

r 2: #

of p

olic

ies

and

regu

latio

ns d

evel

oped

in

a p

artic

ipat

ory

proc

ess,

invo

lvin

g th

e pr

ivat

e se

ctor

Bas

elin

e: 0

10

Targ

et: 1

0 po

licie

s th

at p

rovi

de e

nabl

ing

cond

ition

s fo

r the

priv

ate

sect

or a

re im

prov

ed o

r dev

elop

ed

empl

oym

ent-e

nhan

cing

pol

icie

s

• EU

acc

essi

on p

roce

ss c

ontin

ues

Ris

ks:

• Ec

onom

ic d

ownt

urn

• U

nsus

tain

able

deb

t lev

els

lead

ing

to

mac

roec

onom

ic in

stab

ility

• Pr

olon

ged

polit

ical

inst

abilit

y af

fect

ing

willi

ngne

ss o

f com

pani

es to

inve

st in

gro

wth

be a

dopt

ed la

te 2

016)

Ind

ica

tor

3:

Aver

age

scho

ol-to

-wor

k tra

nsiti

on fo

r sec

onda

ry

educ

atio

n

Bas

elin

e: 3

1.7

mon

ths12

(201

4)

Targ

et: D

ecre

ased

tran

sitio

n tim

e.

Ou

tco

me

sta

tem

en

t 2

Inc

rea

se

d e

co

no

mic

gro

wth

Sou

rce:

Com

petit

iven

ess

Stra

tegy

and

Act

ion

Plan

of t

he

Rep

ublic

of M

aced

onia

201

6 –

2020

Indi

cato

r 1: G

DP

grow

th ra

te

Bas

elin

e: 3

.7%

(201

5)13

Targ

et: 4

.5%

Indi

cato

r 2:

# of

act

ive

com

pani

es in

Mac

edon

ia

Bas

elin

e: 7

0,65

9 (2

014)

Targ

et: 8

0,00

0

Indi

cato

r 3: R

anki

ng in

the

WEF

Glo

bal C

ompe

titiv

enes

s In

dex

Bas

elin

e: 6

0th

28

6/36

11

An

indi

cato

r on

aspe

cts

of c

ompe

titiv

enes

s w

ill be

dev

elop

ed o

nce

the

deve

lopm

ent o

f a n

ew b

ilate

ral p

roje

ct S

ECO

-fund

ed p

roje

ct is

in a

mor

e ad

vanc

ed s

tage

.

Indi

cato

r 3: t

bd11

Bas

elin

e: tb

d

Targ

et: t

bd

Targ

et: I

mpr

oved

rank

ing

(4)

Lin

es

of

inte

rve

nti

on

(S

wis

s p

ort

foli

o)

• Sy

stem

ic m

arke

t de

velo

pmen

t, ai

min

g to

add

ress

mar

ket

defic

ienc

ies

and

thus

cre

ate

jobs

in

parti

cula

r fo

r w

omen

and

you

th i

n th

ree

sect

ors:

tou

rism

, cr

eativ

e in

dust

ries

and

gree

n ec

onom

y.

• Vo

catio

nal s

kills

dev

elop

men

t, ai

min

g to

incr

ease

acc

ess

to g

ainf

ul e

mpl

oym

ent f

or y

outh

(VET

stu

dent

s an

d un

empl

oyed

) and

to s

moo

then

sch

ool-t

o-w

ork

trans

ition

.

• Ad

vanc

e jo

b-m

atch

ing

serv

ices

and

act

ive

labo

ur m

arke

t mea

sure

s in

ord

er fo

r the

une

mpl

oyed

to b

ette

r acc

ess

jobs

, in

parti

cula

r tho

se a

t ris

k of

soc

ial a

nd e

cono

mic

ex

clus

ion.

Spe

cial

focu

s w

ill be

pla

ced

on R

oma

and

the

disa

bled

as

popu

latio

n gr

oups

that

face

mos

t obs

tacl

es a

cces

sing

the

labo

ur m

arke

t.

• En

hanc

e co

mpe

titiv

enes

s an

d ac

cele

rate

gro

wth

of S

MEs

by

stre

ngth

enin

g th

eir m

anag

eria

l ski

lls, i

mpr

ovin

g th

e qu

ality

of t

heir

prod

ucts

and

ser

vice

s, e

xpan

ding

thei

r do

mes

tic a

nd in

tern

atio

nal m

arke

ts, a

nd e

asin

g th

eir a

cces

s to

fina

nce.

Reg

iona

l SE

CO

pro

gram

mes

will

hav

e a

stro

ng fo

cus

on th

e fo

llow

ing

area

s:

• Fo

ster

ent

repr

eneu

rshi

p th

roug

h su

ppor

t to

the

entre

pren

euria

l eco

syst

em, i

n pa

rticu

lar t

o in

cuba

tors

/acc

eler

ator

s, to

bet

ter p

rovi

de s

ervi

ces

to s

tart-

ups,

and

incr

easi

ng

its a

ttrac

tiven

ess.

• Pr

ivat

e se

ctor

dev

elop

men

t. Po

tent

ial a

reas

of s

uppo

rt ar

e bu

sine

ss e

nabl

ing

envi

ronm

ent,

skills

dev

elop

men

t, ac

cess

to fi

nanc

es a

nd tr

ade

prom

otio

n.

• Im

prov

e th

e m

acro

econ

omic

fram

ewor

k th

roug

h ta

rget

ed s

uppo

rt to

pub

lic in

stitu

tions

dea

ling

with

the

tax

adm

inis

tratio

n an

d fin

anci

al s

tatis

tics.

(5)

Re

so

urc

es

, p

art

ne

rsh

ips

(S

wis

s p

ort

foli

o)

Budg

et: C

HF

17.0

milli

on (S

DC

) and

CH

F 4

milli

on (S

ECO

)

• Th

e m

ain

impl

emen

ting

partn

ers

are

for t

he ti

me

bein

g in

tern

atio

nal o

rgan

isat

ions

suc

h as

Sw

issc

onta

ct, U

SAID

, Fib

L an

d m

ultil

ater

al o

rgan

isat

ions

as

WB,

IFC

and

IM

F.

• Th

e m

ain

natio

nal c

ount

erpa

rts a

re th

e C

abin

et o

f the

Dep

uty

Prim

e M

inis

ter f

or E

cono

mic

Affa

irs, t

he M

inis

try o

f Eco

nom

y, th

e M

inis

try o

f Agr

icul

ture

, the

Min

istry

of

Educ

atio

n an

d th

e R

egio

nal C

entre

s.

7/36

14 B

ioch

emic

al o

xyge

n de

man

d us

ed a

s a

surro

gate

of t

he d

egre

e of

org

anic

pol

lutio

n of

wat

er.

15 O

f whi

ch S

ECO

516

5 t/y

ear (

base

line)

and

30%

incr

ease

(tar

get)

and

SDC

10

t/yea

r (ba

selin

e) a

nd 6

00%

incr

ease

(tar

get).

·

Infr

as

tru

ctu

re a

nd

En

vir

on

me

nt

Do

ma

in

Do

ma

in G

oa

l: S

us

tain

ab

le n

atu

ral

res

ou

rce

s g

ov

ern

an

ce

an

d e

qu

ita

ble

ac

ce

ss

to

qu

ali

ty p

ub

lic

se

rvic

es

(1)

Sw

iss

po

rtfo

lio

ou

tco

me

s

(2)

Co

ntr

ibu

tio

n o

f S

wis

s p

ort

foli

o

(3)

Co

un

try

de

ve

lop

me

nt

ou

tco

me

s

Ou

tco

me

sta

tem

en

t 1

Eff

ec

tiv

e a

nd

eff

icie

nt

ins

titu

tio

ns

an

d

org

an

iza

tio

ns

in

se

lec

ted

mu

nic

ipa

liti

es

an

d

reg

ion

s p

rote

ct

the

en

vir

on

me

nt

an

d r

ed

uc

e

cli

ma

te c

ha

ng

e-r

ela

ted

im

pa

cts

th

rou

gh

imp

rov

ed

na

tura

l re

so

urc

es

go

ve

rna

nc

e.

Indi

cato

r 1: %

of m

unic

ipal

bud

gets

allo

cate

d to

en

viro

nmen

t and

clim

ate

chan

ge-re

late

d in

terv

entio

ns in

pro

ject

are

as (i

n 21

out

of 8

1 m

unic

ipal

ities

in to

tal).

Bas

elin

e: A

nnua

l mun

icip

al b

udge

t 201

6 of

eac

h ta

rget

mun

icip

ality

Targ

et: I

ncre

ased

allo

catio

n by

4%

in 1

0 ru

ral/s

mal

l m

unic

ipal

ities

and

5 u

rban

mun

icip

aliti

es

Indi

cato

r 2: R

educ

tion

of m

an-m

ade

pollu

tion

to

wat

er b

odie

s in

pro

ject

are

as.

Bas

elin

e: 5

,175

BO

D514

treat

ed

Targ

et: 3

0% in

crea

se o

f tre

ated

BO

D515

Indi

cato

r 3: C

onte

mpo

rary

fore

st m

anag

emen

t pl

ans,

add

ress

ing

clim

ate

chan

ge m

itiga

tion

and

adap

tatio

n, a

re im

plem

ente

d. (A

RI C

C2;

SD

G 1

5)

The

Swis

s po

rtfol

io o

utco

mes

con

tribu

te to

the

coun

try d

evel

opm

ent o

utco

mes

as

follo

ws:

By e

nhan

cing

the

effe

ctiv

enes

s, c

oord

inat

ion

and

tech

nica

l cap

aciti

es o

f loc

al in

stitu

tions

, Reg

iona

l C

entre

s an

d C

SOs

to m

anag

e in

tegr

ated

wat

er

reso

urce

s, m

anag

emen

t pla

ns a

nd im

plem

ent

natio

nal s

trate

gic

docu

men

ts, a

nd b

y ap

plyi

ng

cons

erva

tion

appr

oach

es th

at li

nk s

usta

inab

le

natu

ral r

esou

rces

man

agem

ent w

ith th

e lo

cal

econ

omic

dev

elop

men

t age

nda,

env

ironm

ent

prot

ectio

n w

ill be

impr

oved

and

eco

nom

ic

oppo

rtuni

ties

for t

he p

opul

atio

n in

crea

sed.

The

reby

, Sw

itzer

land

will

cont

ribut

e to

bet

ter n

atur

al

reso

urce

s go

vern

ance

and

enh

ance

Mac

edon

ia’s

re

silie

nce

to c

limat

e ch

ange

-rela

ted

impa

cts.

Addi

tiona

lly, t

hrou

gh in

frast

ruct

ure

inve

stm

ents

and

st

reng

then

ing

of th

e te

chni

cal,

hum

an a

nd fi

nanc

ial

capa

citie

s of

pub

lic u

tiliti

es, S

witz

erla

nd w

ill co

ntrib

ute

to th

e pr

ovis

ion

of re

liabl

e, q

ualit

y an

d co

st-c

over

ing

publ

ic s

ervi

ces

rela

ted

to w

ater

and

so

lid w

aste

for a

ll ci

tizen

s in

the

sele

cted

m

unic

ipal

ities

, inc

ludi

ng re

duci

ng d

ispa

ritie

s in

ac

cess

to th

ese

serv

ices

.

Ou

tco

me

sta

tem

en

t 1

Fu

ll i

mp

lem

en

tati

on

of

the

La

ws

on

Wa

ter,

Na

ture

Co

ns

erv

ati

on

an

d S

oli

d W

as

te i

n l

ine

wit

h E

U s

tan

da

rds

an

d r

eq

uir

em

en

ts a

nd

in

tern

ati

on

al

ob

lig

ati

on

s.

Sou

rce:

Nat

iona

l Stra

tegy

on

Wat

er; N

atio

nal S

trate

gy o

n So

lid

Was

te; N

atio

nal S

trate

gy o

n N

atur

e; P

lan

for I

mpl

emen

tatio

n of

the

Drin

king

Wat

er a

nd U

rban

Was

tew

ater

Dire

ctiv

es (u

nder

pr

epar

atio

n)

Indi

cato

r 1: I

mpl

emen

tatio

n ra

tio (%

) of t

he W

ater

Fra

mew

ork

Dire

ctiv

e (W

FD)

Bas

elin

e: fo

r WFD

: Yea

rly a

sses

smen

t of t

he M

inis

try o

f En

viro

nmen

t and

Phy

sica

l Pla

nnin

g on

pro

gres

s of

WFD

im

plem

enta

tion

for r

epor

ting

tow

ards

EU

: 201

6 –

88%

Targ

et: I

ncre

ase

in %

of W

FD im

plem

enta

tion

prog

ress

Indi

cato

r 2: %

of t

errit

ory

of th

e co

untry

und

er p

rote

ctio

n

Bas

elin

e: 9

%

Targ

et: 1

1.6%

29

7/36

14 B

ioch

emic

al o

xyge

n de

man

d us

ed a

s a

surro

gate

of t

he d

egre

e of

org

anic

pol

lutio

n of

wat

er.

15 O

f whi

ch S

ECO

516

5 t/y

ear (

base

line)

and

30%

incr

ease

(tar

get)

and

SDC

10

t/yea

r (ba

selin

e) a

nd 6

00%

incr

ease

(tar

get).

·

Infr

as

tru

ctu

re a

nd

En

vir

on

me

nt

Do

ma

in

Do

ma

in G

oa

l: S

us

tain

ab

le n

atu

ral

res

ou

rce

s g

ov

ern

an

ce

an

d e

qu

ita

ble

ac

ce

ss

to

qu

ali

ty p

ub

lic

se

rvic

es

(1)

Sw

iss

po

rtfo

lio

ou

tco

me

s

(2)

Co

ntr

ibu

tio

n o

f S

wis

s p

ort

foli

o

(3)

Co

un

try

de

ve

lop

me

nt

ou

tco

me

s

Ou

tco

me

sta

tem

en

t 1

Eff

ec

tiv

e a

nd

eff

icie

nt

ins

titu

tio

ns

an

d

org

an

iza

tio

ns

in

se

lec

ted

mu

nic

ipa

liti

es

an

d

reg

ion

s p

rote

ct

the

en

vir

on

me

nt

an

d r

ed

uc

e

cli

ma

te c

ha

ng

e-r

ela

ted

im

pa

cts

th

rou

gh

imp

rov

ed

na

tura

l re

so

urc

es

go

ve

rna

nc

e.

Indi

cato

r 1: %

of m

unic

ipal

bud

gets

allo

cate

d to

en

viro

nmen

t and

clim

ate

chan

ge-re

late

d in

terv

entio

ns in

pro

ject

are

as (i

n 21

out

of 8

1 m

unic

ipal

ities

in to

tal).

Bas

elin

e: A

nnua

l mun

icip

al b

udge

t 201

6 of

eac

h ta

rget

mun

icip

ality

Targ

et: I

ncre

ased

allo

catio

n by

4%

in 1

0 ru

ral/s

mal

l m

unic

ipal

ities

and

5 u

rban

mun

icip

aliti

es

Indi

cato

r 2: R

educ

tion

of m

an-m

ade

pollu

tion

to

wat

er b

odie

s in

pro

ject

are

as.

Bas

elin

e: 5

,175

BO

D514

treat

ed

Targ

et: 3

0% in

crea

se o

f tre

ated

BO

D515

Indi

cato

r 3: C

onte

mpo

rary

fore

st m

anag

emen

t pl

ans,

add

ress

ing

clim

ate

chan

ge m

itiga

tion

and

adap

tatio

n, a

re im

plem

ente

d. (A

RI C

C2;

SD

G 1

5)

The

Swis

s po

rtfol

io o

utco

mes

con

tribu

te to

the

coun

try d

evel

opm

ent o

utco

mes

as

follo

ws:

By e

nhan

cing

the

effe

ctiv

enes

s, c

oord

inat

ion

and

tech

nica

l cap

aciti

es o

f loc

al in

stitu

tions

, Reg

iona

l C

entre

s an

d C

SOs

to m

anag

e in

tegr

ated

wat

er

reso

urce

s, m

anag

emen

t pla

ns a

nd im

plem

ent

natio

nal s

trate

gic

docu

men

ts, a

nd b

y ap

plyi

ng

cons

erva

tion

appr

oach

es th

at li

nk s

usta

inab

le

natu

ral r

esou

rces

man

agem

ent w

ith th

e lo

cal

econ

omic

dev

elop

men

t age

nda,

env

ironm

ent

prot

ectio

n w

ill be

impr

oved

and

eco

nom

ic

oppo

rtuni

ties

for t

he p

opul

atio

n in

crea

sed.

The

reby

, Sw

itzer

land

will

cont

ribut

e to

bet

ter n

atur

al

reso

urce

s go

vern

ance

and

enh

ance

Mac

edon

ia’s

re

silie

nce

to c

limat

e ch

ange

-rela

ted

impa

cts.

Addi

tiona

lly, t

hrou

gh in

frast

ruct

ure

inve

stm

ents

and

st

reng

then

ing

of th

e te

chni

cal,

hum

an a

nd fi

nanc

ial

capa

citie

s of

pub

lic u

tiliti

es, S

witz

erla

nd w

ill co

ntrib

ute

to th

e pr

ovis

ion

of re

liabl

e, q

ualit

y an

d co

st-c

over

ing

publ

ic s

ervi

ces

rela

ted

to w

ater

and

so

lid w

aste

for a

ll ci

tizen

s in

the

sele

cted

m

unic

ipal

ities

, inc

ludi

ng re

duci

ng d

ispa

ritie

s in

ac

cess

to th

ese

serv

ices

.

Ou

tco

me

sta

tem

en

t 1

Fu

ll i

mp

lem

en

tati

on

of

the

La

ws

on

Wa

ter,

Na

ture

Co

ns

erv

ati

on

an

d S

oli

d W

as

te i

n l

ine

wit

h E

U s

tan

da

rds

an

d r

eq

uir

em

en

ts a

nd

in

tern

ati

on

al

ob

lig

ati

on

s.

Sou

rce:

Nat

iona

l Stra

tegy

on

Wat

er; N

atio

nal S

trate

gy o

n So

lid

Was

te; N

atio

nal S

trate

gy o

n N

atur

e; P

lan

for I

mpl

emen

tatio

n of

the

Drin

king

Wat

er a

nd U

rban

Was

tew

ater

Dire

ctiv

es (u

nder

pr

epar

atio

n)

Indi

cato

r 1: I

mpl

emen

tatio

n ra

tio (%

) of t

he W

ater

Fra

mew

ork

Dire

ctiv

e (W

FD)

Bas

elin

e: fo

r WFD

: Yea

rly a

sses

smen

t of t

he M

inis

try o

f En

viro

nmen

t and

Phy

sica

l Pla

nnin

g on

pro

gres

s of

WFD

im

plem

enta

tion

for r

epor

ting

tow

ard s

EU

: 201

6 –

88%

Targ

et: I

ncre

ase

in %

of W

FD im

plem

enta

tion

prog

ress

Indi

cato

r 2: %

of t

errit

ory

of th

e co

untry

und

er p

rote

ctio

n

Bas

elin

e: 9

%

Targ

et: 1

1.6%

30

8/36

16 S

ECO

Sta

ndar

d In

dica

tors

TO

1 B

L3: 1

+2; i

n lin

e w

ith S

DC

AR

I W3+

W4;

SD

G 6

. 19

Dat

a w

ill be

ava

ilabl

e m

id-2

017,

afte

r com

plet

ion

of th

e Pl

ans

for I

mpl

emen

tatio

n of

the

Drin

king

and

Urb

an W

ater

Dire

ctiv

es.

Bas

elin

e: 0

Targ

et: A

t lea

st o

ne re

gion

al, c

onte

mpo

rary

fore

st

man

agem

ent p

lan

in p

roje

ct a

rea

impl

emen

ted.

Ou

tco

me

sta

tem

en

t 2

Su

sta

ina

bly

ma

na

ge

d p

ub

lic

uti

liti

es

pro

vid

e a

ll

cit

ize

ns

in

se

lec

ted

mu

nic

ipa

liti

es

, in

clu

din

g

so

cia

lly

ex

clu

de

d g

rou

ps

, w

ith

re

lia

ble

an

d

aff

ord

ab

le w

ate

r, w

as

tew

ate

r a

nd

so

lid

wa

ste

se

rvic

es

.

Indi

cato

r 1: P

opul

atio

n co

vere

d w

ith im

prov

ed

wat

er/s

anita

tion

and

solid

was

te s

ervi

ces

fund

ed b

y Sw

itzer

land

.16

Bas

elin

e fo

r wat

er/s

anita

tion:

120

,000

citi

zens

for

wat

er/1

79,0

00 c

itize

ns fo

r san

itatio

n co

vere

d by

im

prov

ed s

ervi

ces

due

to S

wis

s in

terv

entio

ns in

the

past

Targ

et: 1

66,0

00 c

itize

ns fo

r wat

er/2

48,0

00 c

itize

ns

for s

anita

tion

Bas

elin

e fo

r sol

id w

aste

: 0

Targ

et: O

ne m

iddl

e-si

zed

tow

n

Indi

cato

r 2: E

mpo

wer

ed a

nd fi

nanc

ially

-su

stai

nabl

e pu

blic

util

ities

Indi

cato

r 2a:

% o

f non

-reve

nue

wat

er

Indi

cato

r 2b:

% o

f cos

t-cov

erag

e (fo

r ope

ratio

n an

d m

aint

enan

ce)/c

olle

ctio

n ra

te

Ass

umpt

ions

:

• N

atio

nal a

nd lo

cal a

utho

ritie

s ta

ke u

p th

eir

lead

ing

role

and

effi

cien

tly im

plem

ent a

nd

enfo

rce

the

natio

nal s

trate

gic

docu

men

ts a

nd

the

diffe

rent

law

s on

the

envi

ronm

ent.

They

pu

sh th

e fo

rese

en w

ater

tarif

f sys

tem

refo

rm

and

supp

ort t

he w

ork

of th

e w

ater

regu

lato

r •

Citi

zens

bec

ome

mor

e an

d m

ore

awar

e of

the

need

for a

sou

nd e

nviro

nmen

t •

Citi

zens

ask

loca

l aut

horit

ies

for b

ette

r co

mm

unal

ser

vice

s an

d in

sist

mor

e an

d m

ore

on th

eir r

ight

s to

ade

quat

e pu

blic

ser

vice

s

Ris

ks:

• C

ontin

ued

low

inte

rest

of t

he n

atio

nal a

utho

ritie

s in

env

ironm

enta

l iss

ues

• C

ontin

ued

rath

er m

eagr

e pr

ovis

ion

of fi

nanc

es

for l

ocal

con

tribu

tions

•

P oor

ope

ratio

n an

d m

aint

enan

ce o

f the

bui

lt in

frast

ruct

ure

enda

nger

sus

tain

abilit

y

Ou

tco

me

sta

tem

en

t 2

Ex

pa

ns

ion

of

Ma

ce

do

nia

n p

op

ula

tio

n c

ov

ere

d w

ith

imp

rov

ed

wa

ter/

sa

nit

ati

on

an

d s

oli

d w

as

te s

erv

ice

s.

Sou

rce:

Pla

n fo

r Im

plem

enta

tion

of th

e D

rinki

ng W

ater

D

irect

ive

(com

plet

ion

June

201

7); P

lan

for I

mpl

emen

tatio

n of

th

e U

rban

Was

tew

ater

Dire

ctiv

e (c

ompl

etio

n Ju

ne 2

017)

Indi

cato

r: P

opul

atio

n co

vere

d w

ith im

prov

ed w

ater

/san

itatio

n an

d so

lid w

aste

ser

vice

s.

Bas

elin

e fo

r wat

er/s

anita

tion:

95%

urb

an a

nd 7

0% ru

ral

popu

latio

n co

vere

d by

wat

er s

ervi

ce /

15%

of p

opul

atio

n co

vere

d by

was

tew

ater

trea

tmen

t

Targ

et: %

of u

rban

and

rura

l pop

ulat

ion

cove

red

with

impr

oved

w

ater

/san

itatio

n se

rvic

es p

rovi

ded

by S

wis

s an

d EU

fund

ed

inte

rven

tions

19

Bas

elin

e fo

r sol

id w

aste

: Sko

pje

regi

on (a

ppro

x. 8

00,0

00

peop

le)

Targ

et: S

kopj

e an

d Po

log

Reg

ion

(app

rox.

1,1

00,0

00 p

eopl

e)

9/36

17

Fig

ure

from

the

ADKO

M U

tility

Sec

tor A

naly

sis

2015

, but

it s

eem

s to

be

too

low

. The

acc

urat

e fig

ure

will

be id

entif

ied

at th

e be

ginn

ing

of th

e pr

ojec

t im

plem

enta

tion.

18

The

exi

stin

g ac

coun

ting

syst

em o

f the

PU

Del

cevo

doe

sn’t

allo

w s

epar

atio

n of

cos

ts fo

r diff

eren

t ser

vice

s. T

his

will

be im

prov

ed th

roug

h in

stitu

tiona

l stre

ngth

enin

g m

easu

res

appl

ied

durin

g th

e pr

ojec

t im

plem

enta

tion.

Bas

elin

e fo

r non

-rev

enue

wat

er: P

ublic

Util

ity

Koca

ni 6

7%; P

ublic

Util

ity G

ostiv

ar 7

0%; P

ublic

U

tility

Del

cevo

18%

17

Targ

et: R

educ

tion

Publ

ic U

tility

Koc

ani b

y 3%

; re

duct

ion

Publ

ic U

tility

Gos

tivar

by

15%

; red

uctio

n Pu

blic

Util

ity D

elce

vo b

y 5%

Bas

elin

e fo

r cos

t-cov

erag

e (fo

r ope

ratio

n an

d m

aint

enan

ce)/c

olle

ctio

n ra

te: P

ublic

Util

ity K

ocan

i 92

.9%

/85%

; Pub

lic U

tility

Gos

tivar

83%

/63%

; Pub

lic

Util

ity D

elce

vo: n

o da

ta a

vaila

ble18

/80%

Targ

et: P

ublic

Util

ity K

ocan

i 102

%/9

0%; P

ublic

U

tility

Gos

tivar

100

%/7

0% ;

Publ

ic U

tility

Del

cevo

10

0%/8

8%

(4)

Lin

es

of

inte

rve

nti

on

(S

wis

s p

ort

foli

o)

• Su

ppor

t the

impl

emen

tatio

n of

inte

grat

ed m

easu

res

for i

mpr

ovem

ent o

f wat

er q

ualit

y in

Lak

e Pr

espa

and

Riv

er S

trum

ica,

incl

udin

g de

velo

pmen

t of f

lood

man

agem

ent i

n ac

cord

ance

with

the

EU F

lood

Dire

ctiv

e.

• St

reng

then

inst

itutio

nal c

apac

ities

at

natio

nal a

nd lo

cal l

evel

to

man

age

natu

ral r

esou

rces

in a

sus

tain

able

man

ner

and

to c

ope

with

cha

lleng

es a

risin

g fro

m c

limat

e ch

ange

.

• Su

ppor

t the

app

licat

ion

of a

regi

onal

(int

er-s

ecto

rial)

appr

oach

for m

anag

ing

prot

ecte

d ar

eas

and

pote

ntia

l eco

syst

em s

ervi

ces.

• Im

prov

e of

the

wat

er/s

anita

tion

and

solid

was

te in

frast

ruct

ure

and

man

agem

ent.

• Pr

ovid

e in

stitu

tiona

l stre

ngth

enin

g/co

rpor

ate

deve

lopm

ent o

f pub

lic u

tiliti

es.

• Su

ppor

t to

publ

ic u

tiliti

es in

pre

para

tion

for t

he n

ew w

ater

tarif

f sys

tem

.

31

9/36

17

Fig

ure

from

the

ADKO

M U

tility

Sec

tor A

naly

sis

2015

, but

it s

eem

s to

be

too

low

. The

acc

urat

e fig

ure

will

be id

entif

ied

at th

e be

ginn

ing

of th

e pr

ojec

t im

plem

enta

tion.

18

The

exi

stin

g ac

coun

ting

syst

em o

f the

PU

Del

cevo

doe

sn’t

allo

w s

epar

atio

n of

cos

ts fo

r diff

eren

t ser

vice

s. T

his

will

be im

prov

ed th

roug

h in

stitu

tiona

l stre

ngth

enin

g m

easu

res

appl

ied

durin

g th

e pr

ojec

t im

plem

enta

tion.

Bas

elin

e fo

r non

-rev

enue

wat

er: P

ublic

Util

ity

Koca

ni 6

7%; P

ublic

Util

ity G

ostiv

ar 7

0%; P

ublic

U

tility

Del

cevo

18%

17

Targ

et: R

educ

tion

Publ

ic U

tility

Koc

ani b

y 3%

; re

duct

ion

Publ

ic U

tility

Gos

tivar

by

15%

; red

uctio

n Pu

blic

Util

ity D

elce

vo b

y 5%

Bas

elin

e fo

r cos

t-cov

erag

e (fo

r ope

ratio

n an

d m

aint

enan

ce)/c

olle

ctio

n ra

te: P

ublic

Util

ity K

ocan

i 92

.9%

/85%

; Pub

lic U

tility

Gos

tivar

83%

/63%

; Pub

lic

Util

ity D

elce

vo: n

o da

ta a

vaila

ble18

/80%

Targ

et: P

ublic

Util

ity K

ocan

i 102

%/9

0%; P

ublic

U

tility

Gos

tivar

100

%/7

0% ;

Publ

ic U

tility

Del

cevo

10

0%/8

8%

(4)

Lin

es

of

inte

rve

nti

on

(S

wis

s p

ort

foli

o)

• Su

ppor

t the

impl

emen

tatio

n of

inte

grat

ed m

easu

res

for i

mpr

ovem

ent o

f wat

er q

ualit

y in

Lak

e Pr

espa

and

Riv

er S

trum

ica,

incl

udin

g de

velo

pmen

t of f

lood

man

agem

ent i

n ac

cord

ance

with

the

EU F

lood

Dire

ctiv

e.

• S t

reng

then

inst

itutio

nal c

apac

ities

at

natio

nal a

nd lo

cal l

evel

to

man

age

natu

ral r

esou

rces

in a

sus

tain

able

man

ner

and

to c

ope

with

cha

lleng

es a

risin

g fro

m c

limat

e ch

ange

.

• Su

ppor

t the

app

licat

ion

of a

regi

onal

(int

er-s

ecto

rial)

appr

oach

for m

anag

ing

prot

ecte

d ar

eas

and

pote

ntia

l eco

syst

em s

ervi

ces.

• I m

prov

e of

the

wat

er/s

anita

tion

and

solid

was

te in

frast

ruct

ure

and

man

agem

ent.

• Pr

ovid

e in

stitu

tiona

l stre

ngth

enin

g/co

rpor

ate

deve

lopm

ent o

f pub

lic u

tiliti

es.

• Su

ppor

t to

publ

ic u

tiliti

es in

pre

para

tion

for t

he n

ew w

ater

tarif

f sys

tem

.

32

10/3

6

(5)

Re

so

urc

es

, p

art

ne

rsh

ips

(S

wis

s p

ort

foli

o)

Budg

et: C

HF

22 m

illion

(SEC

O) a

nd C

HF

8 m

illion

(SD

C)

SEC

O p

roje

cts

are

co-fi

nanc

ed in

a ra

nge

of 1

0% o

f the

tota

l pro

ject

bud

gets

by

cont

ribut

ions

from

the

Mac

edon

ian

natio

nal a

nd lo

cal l

evel

bud

gets

.

• Th

e cu

rrent

mai

n im

plem

entin

g pa

rtner

s ar

e in

tern

atio

nal a

nd n

atio

nal o

rgan

izat

ions

suc

h as

UN

DP,

Far

mah

em (

with

Hel

veta

s Sw

iss

Inte

rcor

pora

tion)

, KfW

(cr

eatin

g sy

nerg

ies

and

ensu

ring

optim

al e

ffici

ency

bet

wee

n do

nors

/fina

ncer

s w

orki

ng in

the

sam

e ar

eas)

and

priv

ate

cons

ulta

ncy

firm

s s u

ch a

s Er

nst B

asle

r Par

tner

and

Hol

inge

r AG

.

• Th

e m

ain

natio

nal c

ount

erpa

rts a

re th

e M

inis

try o

f Env

ironm

ent a

nd P

hysi

cal P

lann

ing,

the

regi

onal

cen

tres,

mun

icip

aliti

es, t

he p

ublic

util

ities

and

CSO

s in

the

proj

ect

area

s.

11/3

6

·

Ma

na

ge

me

nt/

pe

rfo

rma

nc

e r

es

ult

s

Ou

tco

me

sta

tem

en

t 1

Th

e S

wis

s p

rog

ram

me

re

ma

ins

re

lev

an

t to

th

e c

ou

ntr

y

co

nte

xt.

Ind

ica

tors

• C

onte

xtua

l (pa

rticu

larly

con

cern

ing

polit

ical

situ

atio

n), p

rogr

amm

atic

and

inst

itutio

nal r

isks

and

de

velo

pmen

ts a

re c

lose

ly fo

llow

ed a

nd in

form

ste

erin

g of

coo

pera

tion

stra

tegy

. •

Annu

al e

xter

nal C

onte

xt A

naly

sis

stud

y co

nfirm

s th

e re

leva

nce

of S

wis

s in

terv

entio

n in

the

coun

try b

y co

mpa

ring

the

over

all c

ount

ry re

sults

with

the

Swis

s in

terv

entio

ns.

• C

onte

xt/C

onfli

ct S

ensi

tive

Prog

ram

me

Man

agem

ent i

s in

tegr

ated

as

a tra

nsve

rsal

app

roac

h in

all

prog

ram

mes

with

in a

ll do

mai

ns o

f coo

pera

tion.

•

Polit

ical

dia

logu

e w

ith th

e ne

w g

over

nmen

t is

esta

blis

hed

base

d on

the

new

stra

tegy

and

co

rresp

ondi

ng p

roce

sses

(suc

h as

coo

rdin

atio

n) a

re jo

intly

agr

eed

upon

. •

Reg

ular

exc

hang

es w

ith re

pres

enta

tives

from

the

EU a

nd o

ther

par

tner

s st

reng

then

don

or

coor

dina

tion

and

oppo

rtuni

ties

to re

info

rce

the

Gov

ernm

ent’s

role

in c

oord

inat

ion

are

seiz

ed.

• R

egul

arly

upd

ated

MER

V su

ppor

ts th

e pr

ogra

mm

e ob

ject

ives

of t

he C

oope

ratio

n St

rate

gy.

• M

onito

ring

syst

em w

ith a

num

ber o

f mon

itorin

g to

ols

is d

evel

oped

and

app

lied

to th

e ov

eral

l C

oope

ratio

n St

rate

gy.

• Al

l pro

ject

par

tner

s ha

ve re

gula

r out

com

e m

onito

ring

mec

hani

sms

in p

lace

and

repo

rt on

resu

lts o

n pr

ogre

ss in

soc

ial,

polit

ical

and

eco

nom

ic in

clus

ion.

•

The

Secu

rity

Man

agem

ent P

lan,

as

a ce

ntra

l too

l for

the

secu

rity

man

agem

ent o

f the

Sw

iss

Emba

ssy,

is

regu

larly

upd

ated

and

enf

orce

d.

Ou

tco

me

sta

tem

en

t 2

S

oc

ial,

po

liti

ca

l a

nd

ec

on

om

ic i

nc

lus

ion

, g

en

de

r e

qu

ali

ty

an

d g

oo

d g

ov

ern

an

ce

re

ma

in a

t th

e c

ore

of

the

Sw

iss

pro

gra

mm

e m

an

ag

em

en

t.

Ind

ica

tors

• %

of s

ocia

lly-d

isad

vant

aged

seg

men

ts o

f the

pop

ulat

ion

bene

fit fr

om S

wis

s in

terv

entio

ns.

• Th

e pr

inci

pal o

f a g

eogr

aphi

cal b

alan

ce o

f the

Sw

iss

portf

olio

cov

erin

g al

l are

as o

f the

cou

ntry

in

habi

ted

by e

thni

c M

aced

onia

ns a

nd e

thni

c Al

bani

ans

cont

inue

s to

be

purs

ued.

•

The

prin

cipl

es o

f goo

d go

vern

ance

and

gen

der e

qual

ity a

re re

flect

ed in

the

Coo

pera

tion

Stra

tegy

in

dica

tors

. •

Awar

enes

s on

the

bene

fits

of w

ork

forc

e di

vers

ity h

as in

crea

sed

in p

artn

er o

rgan

izat

ions

, esp

ecia

lly

with

resp

ect t

o et

hnic

min

oriti

es.

• Th

e Eq

ual O

ppor

tuni

ties

Polic

y of

the

Swis

s Em

bass

y is

impl

emen

ted

acco

rdin

g to

the

exis

ting

indi

cato

rs.

Lin

es

of

Inte

rve

nti

on

• Ac

tive

parti

cipa

tion

in e

fforts

and

deb

ates

on

dono

r coh

eren

ce a

nd c

oord

inat

ion

base

d on

bes

t pra

ctic

es.

• Ap

plie

d re

sear

ch a

nd b

asel

ines

in a

ll in

terv

entio

ns to

bet

ter u

nder

stan

d th

e co

ntex

t and

how

to re

ach

out t

o po

cket

s of

exc

lude

d gr

oups

with

in th

e ta

rget

pop

ulat

ion.

•

Feed

ing

the

deve

lopm

ent c

oope

ratio

n di

alog

ue w

ith th

e G

over

nmen

t of M

aced

onia

with

con

cret

e fie

ld-b

ased

bes

t pra

ctic

es a

nd le

sson

s le

arne

d.

33

12/3

6

• Pa

rtici

pate

in th

e di

alog

ue o

n th

e im

plem

enta

tion

of S

DG

s w

ith g

over

nmen

t par

tner

s, c

ivil

soci

ety

and

inte

rnat

iona

l act

ors.

• Ac

tive

parti

cipa

tion

in e

fforts

and

deb

ates

on

rule

of l

aw, c

orru

ptio

n an

d ris

k m

anag

emen

t as

wel

l as

cons

iste

nt m

essa

ging

. •

Fost

erin

g in

clus

ive

polic

y m

akin

g

11/3

6

·

Ma

na

ge

me

nt/

pe

rfo

rma

nc

e r

es

ult

s

Ou

tco

me

sta

tem

en

t 1

Th

e S

wis

s p

rog

ram

me

re

ma

ins

re

lev

an

t to

th

e c

ou

ntr

y

co

nte

xt.

Ind

ica

tors

• C

onte

xtua

l (pa

rticu

larly

re p

oliti

cal s

ituat

ion)

, pro

gram

mat

ic a

nd in

stitu

tiona

l ris

ks a

nd d

evel

opm

ents

ar

e cl

osel

y fo

llow

ed a

nd in

form

ste

erin

g of

coo

pera

tion

stra

tegy

•

Annu

al e

xter

nal C

onte

xt A

naly

sis

stud

y co

nfirm

s th

e re

leva

nce

of S

wis

s in

terv

entio

n in

the

coun

try b

y co

mpa

ring

the

over

all c

ount

ry re

sults

with

the

Swis

s in

terv

entio

ns.

• C

onte

xt/C

onfli

ct S

ensi

tive

Prog

ram

me

Man

agem

ent i

s in

tegr

ated

as

a tra

nsve

rsal

app

roac

h in

all

prog

ram

mes

with

in a

ll do

mai

ns o

f coo

pera

tion.

•

Polit

ical

dia

logu

e w

ith th

e ne

w g

over

nmen

t is

esta

blis

hed

base

d on

the

new

stra

tegy

and

co

rresp

ondi

ng p

roce

sses

(suc

h as

coo

rdin

atio

n) a

re jo

intly

agr

eed

upon

•

Reg

ular

exc

hang

es w

ith re

pres

enta

tives

from

the

EU a

nd o

ther

par

tner

s st

reng

then

don

or

coor

dina

tion

and

oppo

rtuni

ties

to re

info

rce

the

Gov

ernm

ent’s

role

in c

oord

inat

ion

are

seiz

ed.

• R

egul

arly

upd

ated

MER

V su

ppor

ts th

e pr

ogra

mm

e ob

ject

ives

of t

he C

oope

ratio

n St

rate

gy.

• M

onito

ring

syst

em w

ith a

num

ber o

f mon

itorin

g to

ols

is d

evel

oped

and

app

lied

to th

e ov

eral

l C

oope

ratio

n St

rate

gy.

• Al

l pro

ject

par

tner

s ha

ve re

gula

r out

com

e m

onito

ring

mec

hani

sms

in p

lace

and

repo

rt on

resu

lts o

n pr

ogre

ss in

soc

ial,

polit

ical

and

eco

nom

ic in

clus

ion.

•

The

Secu

rity

Man

agem

ent P

lan,

as

a ce

ntra

l too

l for

the

secu

rity

man

agem

ent o

f the

Sw

iss

Emba

ssy,

is

regu

larly

upd

ated

and

enf

orce

d.

Ou

tco

me

sta

tem

en

t 2

S

oc

ial,

po

liti

ca

l a

nd

ec

on

om

ic i

nc

lus

ion

, g

en

de

r e

qu

ali

ty

an

d g

oo

d g

ov

ern

an

ce

re

ma

in a

t th

e c

ore

of

the

Sw

iss

pro

gra

mm

e m

an

ag

em

en

t.

Ind

ica

tors

• %

of s

ocia

lly-d

isad

vant

aged

seg

men

ts o

f the

pop

ulat

ion

bene

fit fr

om S

wis

s in

terv

entio

ns.

• Th

e pr

inci

pal o

f a g

eogr

aphi

cal b

alan

ce o

f the

Sw

iss

portf

olio

cov

erin

g al

l are

as o

f the

cou

ntry

in

habi

ted

by e

thni

c M

aced

onia

ns a

nd e

thni

c Al

bani

ans

cont

inue

s to

be

purs

ued.

•

The

prin

cipl

es o

f goo

d go

vern

ance

and

gen

der e

qual

ity a

re re

flect

ed in

the

Coo

pera

tion

Stra

tegy

in

dica

tors

. •

Awar

enes

s on

the

bene

fits

of w

ork

forc

e di

vers

ity h

as in

crea

sed

in p

artn

er o

rgan

izat

ions

, esp

ecia

lly

with

resp

ect t

o et

hnic

min

oriti

es.

• Th

e Eq

ual O

ppor

tuni

ties

Polic

y of

the

Swis

s Em

bass

y is

impl

emen

ted

acco

rdin

g to

the

exis

ting

indi

cato

rs.

Lin

es

of

Inte

rve

nti

on

• Ac

tive

parti

cipa

tion

in e

fforts

and

deb

ates

on

dono

r coh

eren

ce a

nd c

oord

inat

ion

base

d on

bes

t pra

ctic

es.

• Ap

plie

d re

sear

ch a

nd b

asel

ines

in a

ll in

terv

entio

ns to

bet

ter u

nder

stan

d th

e co

ntex

t and

how

to re

ach

out t

o po

cket

s of

exc

lude

d gr

oups

with

in th

e ta

rget

pop

ulat

ion.

•

Feed

ing

the

deve

lopm

ent c

oope

ratio

n di

alog

ue w

ith th

e G

over

nmen

t of M

aced

onia

with

con

cret

e fie

ld-b

ased

bes

t pra

ctic

es a

nd le

sson

s le

arne

d.

34

15/36

Annex 3 – Monitoring System

Purpose of the Monitoring System The Swiss Cooperation Strategy Macedonia 2017-2020 is subject to systematic monitoring in order to keep track of progress towards expected results and to allow for corrective measures if required (steering). The monitoring system observes three dimensions: the country context, the Swiss Results Framework and programme management.

Country context monitoring looks at the political, social, economic, and environmental development of Macedonia and how it affects the Swiss portfolio. Monitoring of the Swiss Results Framework assesses progress in achieving expected results of Swiss interventions, including the transversal themes. Programme management monitoring focuses on the efficiency and effectiveness of the Embassy and compliance with management and aid principles.

Monitoring instruments Different monitoring instruments are used to monitor the three dimensions:

Dimension Monitoring Area Instrument Periodicity Responsibility

1. Country context Overall country context relevant for the Swiss CS

MERV

Context Watch Annually: August-September

Embassy

External

2. Swiss Results Framework

Swiss portfolio outcomes and project outcomes/ outputs

Results Monitoring Matrix

Annually: September

Embassy/Project organizations

Country development outcomes Context Watch Annually: August-

September External

Transversal themes Results Monitoring Matrix

Annually: August-September Embassy

3. Programme management

Embassy efficiency and compliance

Operational Planning Annually: January Embassy

Equal Opportunities Assessment

Annually: December Embassy

The first dimension – the country context – is monitored by the Monitoring System for Development-Related Changes (MERV). Additionally, the Context Watch is used for assessing the relevance of the Swiss Strategy to the context developments and the progress towards related country development results.

To monitor the second dimension – the Swiss Results Framework – a Results Monitoring Matrix is used. With this instrument, project and programme developments are monitored (i.e. ‘Swiss portfolio outcomes’ and project outcomes/outputs) including the transversal themes.

Two instruments are used to monitor the management dimension: the Operational Planning and the Equal Opportunities Assessment. The Operational Planning allows for monitoring of the operational side: day to day supervision of the implementation of projects and programmes. The Equal Opportunities Assessment monitors the implementation of the equal opportunities principles as defined in the Swiss Embassy Equal Opportunities Policy.

The Cooperation Strategy Monitoring System and its instruments will be continuously revised and further elaborated, enabling clear focus on domain results. As a consequence, awareness for sector development objectives increases and translates into programme and project design working towards stronger impact on policies.

Annex 3Monitoring System

35

Annex 4Indicative Budget Allocation

13/36

Annex 2 – Indicative Budget Allocation

Cooperation Strategy Macedonia 2017-2020

Indicative disbursements planned 2017-2020

Domain

SDC

Mio CHF

in % of

total

SECO

Mio CHF in % of

total

Total

SDC & SECO

Mio CHF

in % of

total

Democratic Governance 22.5 48.4%

22.5 32.3%

Employment and Economic Development 15.8 34.1% 3.0 13% 18.8 27.1%

Infrastructure and Environment 7.4 15.9% 20.0 87% 27.4 39.5%

*Other Interventions 0.8 1.6%

0.8 1.1%

Total budget allocation 2017-2020 46.5 100% 23.0 100% 69.5 100%

* without office management costs, incl. small actions/global credit

.

14/36

Cooperation Strategy Macedonia 2017-2020

Indicative commitments planned 2017-2020

Domain

SDC

Mio CHF

in % of

SDC

total

SECO

Mio CHF

in % of

SECO

total

Total

SDC & SECO

Mio CHF

in % of

total

Democratic Governance 24.2 48.4%

24.2 31.8%

Employment and Economic Development 17.0 34.0% 4.0 15.4% 21.0 27.6%

Infrastructure and Environment 8.0 16.0% 22.0 84.6% 30.0 39.5%

*Other Interventions 0.8 1.6%

0.8 1.1%

Total budget allocation 2017-2020 50.0 100% 26.0 100% 76.0 100%

* without office management costs, incl. small actions/global credit

36

Annex 5Map of Macedonia

16/36

Annex 4 – Map of Macedonia

37

Annex 5 – Scenarios

The following table presents three different possible trends for the Macedonian development context. The most likely trend is an opportunistic state with an externally-driven reform process, thus presenting a continuation along current development trends.

The authoritarian state No further reforms

Realistic, most likely scenario (Status Quo):

The “opportunistic” state with an externally driven

reform process

The “reformist” state Genuine reform

movement

Political environment

• Further polarisation • Nationalist and populist

government • No agreement with Greece

on name issue

• Exclusive coalition government

• Party loyalty required • Dialogue with Greece but

no agreement on name issue

• Inclusive government • Separation between party

and state • Regional integration and

agreement with Greece on name issue

• Start of EU negotiations

Institutions • Further government control of legislative and judiciary

• Party accountability • Nepotism and exclusion

• Government control of judiciary and legislative retained informally

• Superficial but no structural reforms

• Inflated bureaucracy

• Independence of judiciary respected

• Parliamentary oversight of government

• De-politicization of administration

Economy • Economic downturn and unstainable debts

• Pervasive corruption and growing irregularities

• Increased brain drain

• State influenced economy • Economic reforms

promoted • Brain drain

• Reforms to tackle unemployment

• Obstacles in doing business removed

• Further integration into European market

Social and cultural environment

• Ethnic differences instrumentalized by the state

• Nationalism and exclusion promoted

• Government-controlled media, no freedom of expression

• Indifference towards socio-cultural sphere

• Opportunistic approach • Limited freedom of

expression, some independent media

• Promotion of inter-ethnic and inter-cultural cohesion

• Values of diversity and inclusion

• Freedom of expression and fully independent media

Security • More security incidents • Radicalization of different

groups • Fight against “terrorist

fighters”

• Hidden security agenda • Fight against “terrorist

fighters”

• Collaboration with neighbouring states to divert security threats

Refugees/ Migration

• Refugee/migration topic faces an increasingly negative rethoric, and xenophobia increases

• No solution found for the approx. 1,000 stranded refugees, they are kept in detention centres for longer periods

• Refugee/migration topic used in an opportunistic way to navigate international expectations

• Refugee/migration flow through Macedonia guided according to policies of other countries along the “Balkan Route”

• A limited number of refugees/migrants find a favorable climate for temporary or even long term stay in Macedonia

Annex 6Scenarios

38

Implications of the scenarios on the domain related working modalities:

The authoritarian state No further reforms

Realistic, most likely scenario (Status Quo):

The “opportunistic” state with an externally driven

reform process

The “reformist” state Genuine reform movement

Democratic Governance

• Active promotion of human rights

• Support crisis coordination within international community and government

• Increase support to CSOs working with refugees and promote activities fostering social and ethnic cohesion

• Intensify support to NGOs claiming democratic spaces and to citizens’ voice

• Consider targeted support to media and other potential change agents

• Status quo • Strengthen civil society and build constituencies

• Strengthen constituency relations between MPs and citizens

• Strengthen national government institutions

• Enhance institutional capacities in service delivery on all levels

Employment and economic development

• Explore and promote private sector for support to migration management (e.g. PPPs for additional services)

• Enhance business skills and entrepreneurship of selected target groups

• Support the implementation of corporate governance principles

• Status quo • Intensify innovative financial products development and make available for all

• Enhance business and entrepreneurship skills for all

• Support implementation of corporate governance principles

Infrastructure and Environment

• Shift to even stronger support at local level, avoid working with national government institutions

• Foster alliances between environmental CBOs/CSOs to achieve critical mass for political dialogue with national level impact

• Assess pressure on environment from economic downturn and develop mitigation measures

• Status quo • Intensify the collaboration with national government institutions to support the implementation of the EU environmental acquis requirements

• Further enhance public service delivery in the water, wastewater and solid waste sector

• Support the national and local institutions to move towards a green economy through a better state of the environment, fostering economic benefits for the population in selected areas

39

Editors and PublishersFederal Department of Foreign AffairsSwiss Agency for Development and Cooperation (SDC)3003 BernSwitzerlandwww.deza.admin.ch

Federal Department of Economic AffairsState Secretariat for Economic Affairs (SECO)3003 BernSwitzerlandwww.seco-cooperation.admin.ch

Contact Embassy of Switzerland in the Republic of Macedonia, Skopjeskopje@eda.admin.ch

DesignMark Manion, Commusication Arts

PhotosPhoto credit: Ljubomir Stefanov, © FDFA (pages 1, 10, 19)Photo credit: Ljubomir Stefanov, © UNDP Skopje (pages 6, 7, 13, 14, 18, 20)Photo credit: Vlatko Ristov, © Seavus (page 9)Photo credit: Kiril Shuklev, © SECO (page 10) Photo credit: Tomislav Georgiev, © FDFA (pages 12, 16)Photo credit: Lilika Strezovska, © Seavus (page 21)© FDFA / Gabreila Micevska (page 13)© USAID / Ivan Mickovski (page 17)© USAID / Atanas Dimitrov (page 39)

Available at info@deza.admin.ch This publication is also available in the Republic of Macedonia (in English, with summaries in Macedonian, Albanian):https://www.eda.admin.ch/countries/macedonia/en/home/international- cooperation/publications-multimedia.html

Organizational Units in ChargeSwiss Agency for Development and Cooperation (SDC)Cooperation with Eastern Europe

State Secretariat for Economic Affairs (SECO)Economic Cooperation and Development

SDC/SECO/2017