MACEDONIA

Former Yugoslav Republic of Macedonia

Republika Makedonija

CAPITAL: Skopje

FLAG: The flag consists of a gold sun with eight rays on a red field.

ANTHEM: Denec Nad Makedonija (Today over Macedonia)

MONETARY UNIT: The currency in use is the denar (den). Denominations from smallest to largest are fifty deni, one denar, two denari, and five denari. us$1 = den0.02044 (or den1 = us$48.92; as of 2005), but exchange rates are likely to fluctuate.

WEIGHTS AND MEASURES: The metric system is in effect in Macedonia.

HOLIDAYS: Orthodox Christmas, 7 January; national holiday, 2 August; Day of Referendum, 8 September.

TIME: 1 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Macedonia is a landlocked nation located in southeastern Europe. Macedonia is slightly larger than the state of Vermont with a total area of 25,333 sq km (9,781 sq mi). Macedonia shares boundaries with Serbia to the n, Bulgaria to the e, Greece to the s, and Albania to the w, and has a total boundary length of 766 km (476 mi). Macedonia's capital city, Skopje, is located in the northwestern part of the country.

TOPOGRAPHY

The topography of Macedonia features a mountainous landscape covered with deep basins and valleys. There are two large lakes, each divided by a frontier line. Approximately 24% of Macedonia's land is arable. Natural resources include chromium, lead, zinc, manganese, tungsten, nickel, low-grade iron ore, asbestos, sulfur, and timber. Located above a thrust fault line of the Eurasian Tectonic Plate, the nation experiences frequent tremors and occasional severe earthquakes. In 1963, 6.0 magnitude quake at Skopje caused the death of about 1,100 people and destroyed much of the city.

CLIMATE

Macedonia's climate features hot summers and cold winters. Fall tends to be dry in the country. In July the average temperature is between 20 and 23°c (68 and 73°f). The average temperature in January is between -20 and 0°c (-4 and 32°f). Rainfall averages 51 cm (20 in) a year. Snowfalls can be heavy in winter.

FLORA AND FAUNA

The terrain of Macedonia is rather hilly. Between the hills are deep basins and valleys, populated by European bison, fox, rabbits, brown bears, and deer. Pine trees are common in the higher mountain regions while beech and oak cover some of the lower mountain regions. The Macedonian pine is an ancient native species found most prominently on Mount Pelister near the south-west border. Ducks, turtles, frogs, raccoons, and muskrats inhabit the country's waterways. As of 2002, there were at least 78 species of mammals, 109 species of birds, and over 3,500 species of plants throughout the country.

ENVIRONMENT

Air pollution from metallurgical plants is a problem in Macedonia, as in the other former Yugoslav republics. In 2000, the total of carbon dioxide emissions was at 11.2 million metric tons. All urban dwellers have access to safe drinking water. Earthquakes are a natural hazard. Forest and woodland cover 35% of the nation's land area. As of 2003, approximately 7.1% of Macedonia's total land area was protected, including one World Heritage Site and one Ramsar Wetland of International Importance. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included nine types of mammals, nine species of birds, two types of reptiles, four species of fish, and five species of invertebrates. Threatened species include the field adder, Apollo butterfly, and noble crayfish. One species of mollusk has become extinct.

POPULATION

The population of Macedonia in 2005 was estimated by the United Nations (UN) at 2,039,000, which placed it at number 139 in population among the 193 nations of the world. In 2005, approximately 11% of the population was over 65 years of age, with another 20% of the population under 15 years of age. There were 100 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.4%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 2,120,000. The population density was 79 per sq km (205 per sq mi), with lowland regions being the most populated.

The UN estimated that 59% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 0.73%. The capital city, Skopje, had a population of 447,000 in that year. Most towns have fewer than 15,000 residents.

MIGRATION

In February 1999, violence in Kosovo forced more than 10,000 refugees to flee to Macedonia. The situation reached an emergency level when hundreds of thousands of refugees were arriving in late March and early April. By early June, the refugee population had grown to some 260,000. Macedonia did not have sufficient resources to cope with an emergency of this magnitude. At the government's request, some third-country asylum nations enacted bilateral evacuation programs, independently of the United Nations High Commissioner for Refugees (UNHCR). Also, a joint UNHCR/IOM Humanitarian Evacuation Programme was established, under which more than 90,000 refugees were evacuated from Macedonia to 29 countries. A Humanitarian Transfer Programme was also organized to set up camps in Albania for 1,300 refugees. The total number of migrants that year was 626,000, including 484,400 refugees.

In 2003 remittances to Macedonia were $148 million. The net migration rate for Macedonia in 2005 was -0.7 migrants per 1,000 population. The government views the migration levels as too high.

ETHNIC GROUPS

According to the 2002 census, Macedonians comprise about 64.2% of the population. Another 25.2% are ethnic Albanians, mostly living in the west, particularly the northwest. Other groups include Turks (3.9%), Roma (2.7%), Serbs (1.8%), and others (including Bosniaks and Vlachs, 2.2%).

LANGUAGES

Macedonian is a southern Slavic tongue that was not officially recognized until 1944, and is the primary language of 66.5% of the population. Bulgarians claim it is merely a dialect of their own language. As in Bulgarian, there are virtually no declensions and the definite article is suffixed. Also as in Bulgarian—and unlike any other Slavic language—an indefinite article exists as a separate word. It is written in the Cyrillic alphabet, but with two special characters—r and k. Minority languages are officially recognized at the local level. Albanian is spoken by about 25.1% of the population, Turkish by about 3.5%, Roma by 1.9%, Serbian by 1.2%, and various other languages by 1.8%.

RELIGIONS

About 66% of the population are nominally Macedonian Orthodox; another 30% are Muslim, 1% are Roman Catholic, and about 3% belong to various other faiths. The other faiths are mostly various Protestant denominations. Islam is commonly practiced among ethnic Albanians living primarily in the western part of the country and in the capital of Skopje. The Roman Catholic community is centered in Skopje, as is a small Jewish community.

Though the constitution allows for religious freedom, the government places some restrictions on religious groups that concern the establishment of houses of worship and the collection of monetary donations. Religious groups are registered under the Law on Religious Communities and Religious Groups.

TRANSPORTATION

A railway connects Skopje with Serbia to the north and the Greek port of Salonika to the south. In 2004, rail trackage totaled 699 km (434 mi) of standard gauge track, of which 233 km (144 mi) were electrified. As of 2002, a 56 km (35 mi) extension of the Kumanovo-Beljakovce line to the Bulgarian border at Gyueschevo was under construction. In 2001, there were 8,684 km (5,396 mi) of highways, of which 5,540 km (3,442 mi) were paved, including 133 km (83 mi) of expressways.

As of 2004, there were an estimated 17 airports, including 10 with paved runways (as of 2005). In 2003, about 201,000 passengers were carried on scheduled domestic and international flights.

HISTORY

Origin and Middle Ages

Macedonia is an ancient name, historically related to Philip II of Macedon, whose son became Alexander the Great, founder of one of the great empires of the ancient world. As a regional name, Macedonia, the land of the Macedons, has been used since ancient Greek times for the territory extending north of Thessaly and into the Vardar River Valley and between Epirus on the west and Thrace on the east. In Alexander the Great's time, Macedonia extended west to the Adriatic Sea over the area then called Illyris, part of today's Albania. Under the Roman Empire, Macedonia was extended south over Thessaly and Achaia.

Beginning in the 5th century ad Slavic tribes began settling in the Balkan area, and by 700 they controlled most of the Central and Peloponnesian Greek lands. The Slavic conquerors were mostly assimilated into Greek culture except in the northern Greek area of Macedonia proper and the areas of northern Thrace populated by "Bulgarian" Slavs. That is how St. Cyril and Methodius, two Greek brothers and scholars who grew up in the Macedonian city of Salonika, were able to become the "Apostles of the Slavs," having first translated Holy Scriptures in 863 into the common Slavic language they had learned in the Macedonian area.

Through most of the later Middle Ages, Macedonia was an area contested by the Byzantine Empire, with its Greek culture and Orthodox Christianity, the Bulgarian Kingdom, and particularly the 14th century Serbian empire of Dušan the Great. The Bulgarian and Serbian empires contributed to the spread of Christianity through the establishment of the Old Church Slavic liturgy.

After Dušan's death in 1355 his empire collapsed, partly due to the struggle for power among his heirs and partly to the advances of the Ottoman Turks. Following the defeat of the Serbs at the Kosovo Field in 1389, the Turks conquered the Macedonian area over the next half century and kept it under their control until the 1912 Balkan war.

Under Ottoman Rule

The decline of the Ottoman Empire brought about renewed competition over Slavic Macedonia between Bulgaria and Serbia. After the Russo-Turkish war of 1877 ended in a Turkish defeat, Bulgaria, an ally of Russia, was denied the prize of the Treaty of San Stefano (1878) in which Turkey had agreed to an enlarged and autonomous Bulgaria that would have included most of Macedonia. Such an enlarged Bulgaria—with control of the Vardar River Valley and access to the Aegean Sea—was, however, a violation of a prior Russo-Austrian agreement. The Western powers opposed Russia's penetration into the Mediterranean through the port of Salonika and, at the 1878 Congress of Berlin, forced the "return" of Macedonia and East Rumelia from Bulgaria to Turkey. This action enraged Serbia, which had fought in the war against Turkey, gained its own independence, and hoped to win control of Bosnia and Herzegovina, which had been given over to Austrian control, for itself.

In this situation both Serbia and Bulgaria concentrated their efforts on Macedonia, where Greek influence had been very strong through the Greek Orthodox Church. The Bulgarians obtained their own Orthodox Church in 1870, that extended its influence to the Macedonian area and worked in favor of unification with Bulgaria through intensive educational activities designed to "Bulgarize" the Slavic population. Systematic intimidation was also used, when the Bulgarians sent their terrorist units (komite) into the area. The Serbian side considered Macedonia to be Southern Serbia, with its own dialect but using Serbian as its literary language. Serbian schools predated Bulgarian ones in Macedonia and continued with their work.

While individual instances of Macedonian consciousness and language had appeared by the end of the 18th century, it was in the 1850s that "Macedonists" had declared Macedonia a separate Slavic nation. Macedonian Slavs had developed a preference for their central Macedonian dialect and had begun publishing some writings in it rather than using the Bulgaro-Macedonian version promoted by the Bulgarian Church and government emissaries. Thus, Macedonia, in the second half of the 19th century, while still under the weakening rule of the Turks, had become the object of territorial and cultural claims by its Greek, Serb, and Bulgarian neighbors. The most systematic pressure had come from Bulgaria and had caused large numbers of "Bulgaro-Macedonians" to emigrate to Bulgaria—some 100,000 in the 1890s—mainly to Sophia, where they constituted almost half the city's population and an extremely strong pressure group.

Struggle for Autonomy

More and more Macedonians became convinced that Macedonia should achieve at least an autonomous status under Turkey, if not complete independence. In 1893, a secret organization was formed in Salonika aiming at a revolt against the Turks and the establishment of an autonomous Macedonia. The organization was to be independent of Serbia, Bulgaria, and Greece and was named the Internal Macedonian Revolutionary Organization (IMRO), a group that became Socialist, revolutionary, and terrorist in nature. Much like Ireland's IRA, IMRO spread through Macedonia and became an underground paragovernmental network active up to World War II. A pro-Bulgarian and an independent Macedonian faction soon developed, the first based in Sophia, the second in Salonika. Its strong base in Sophia gave the pro-Bulgarian faction a great advantage and it took control and pushed for an early uprising in order to impress the Western powers into intervening in support of Macedonia.

The large scale uprising took place on 2 August 1903 (Ilinden–"St. Elijah's Day") when the rebels took over the town of Kruševo and proclaimed a Socialist Republic. After initial defeats of the local Turkish forces, the rebels were subdued by massive Ottoman attacks using scorched earth tactics and wholesale massacres of the population over a three-month period. Europe and the United States paid attention and forced Turkey into granting reforms to be supervised by international observers. However, the disillusioned IMRO leadership engaged in factional bloody feuds that weakened the IMRO organization and image. This encouraged both Serbs and Greeks in the use of their own armed bands—Serbian Cetniks and Greek Andarte—creating an atmosphere of gang warfare in which Bulgaria, Serbia, and Greece fought each other (instead of the Turks) over a future division of Macedonia. In the meantime, the Young Turks movement had spread among Turkish officers and military uprisings began in Macedonia in 1906. These uprisings spread and Turkish officers demanded a constitutional system. They believed that Turkey could be saved only by Westernizing. In 1908 the Young Turks prevailed, and offered to the IMRO leadership agrarian reforms, regional autonomy, and introduction of the Macedonian language in the schools. However, the Young Turks turned out to be extreme Turkish nationalists bent on the assimilation of other national groups. Their denationalizing efforts caused further rebellions and massacres in the Balkans. Serbia, Greece, Bulgaria, and Montenegro turned for help to the great powers, but to no avail. In 1912 they formed the Balkan League, provisionally agreed on the division of Turkish Balkan territory among themselves, and declared war on Turkey in October 1912 after Turkey refused their request to establish the four autonomous regions of Macedonia—Old Serbia, Epirus, and Albania—already provided for in the 1878 Treaty of Berlin.

Balkan Wars

The quick defeat of the Turks by the Balkan League stunned the European powers, particularly when Bulgarian forces reached the suburbs of Istanbul. Turkey signed a treaty in London on 30 May 1913 giving up all European possessions with the exception of Istanbul. However, when Italy and Austria vetoed a provision granting Serbia access to the Adriatic at Durazzo and Alessio and agreed to form an independent Albania, Serbia demanded a larger part of Macedonia from Bulgaria. Bulgaria refused and attacked both Serbian and Greek forces. This caused the second Balkan War that ended in a month with Bulgaria's defeat by Serbia and Greece with help from Romania, Montenegro, and Turkey. The outcome was the partitioning of Macedonia between Serbia and Greece. Turkey regained the Adrianople area it had lost to Bulgaria. Romania gained a part of Bulgarian Dobrudja while Bulgaria kept a part of Thrace and the Macedonian town of Strumica. Thus Southern Macedonia came under the Hellenizing influence of Greece while most of Macedonia was annexed to Serbia. Both Serbia and Greece denied any Macedonian "nationhood." In Greece, Macedonians were treated as "Slavophone" Greeks while Serbs viewed Macedonia as Southern Serbia and Serbian was made the official language of government and instruction in schools and churches.

First and Second Yugoslavia

After World War I, the IMRO organization became a terrorist group operating out of Bulgaria with a nuisance role against Yugoslavia. In later years, some IMRO members joined the Communist Party and tried to work toward a Balkan Federation where Macedonia would be an autonomous member. Its interest in the dissolution of the first Yugoslavia led IMRO members to join with the Croatian Ustaša in the assassination of King Alexander of Yugoslavia and French Foreign Minister Louis Barthou in Marseille on 9 October 1934. During World War II, Bulgaria, Hitler's ally, occupied the central and eastern parts of Macedonia while Albanians, supported by Italy, annexed western Macedonia along with the Kosovo region. Because of Bulgarian control, resistance was slow to develop in Macedonia; a conflict between the Bulgarian and Yugoslav Communist parties also played a part. By the summer of 1943, however, Tito, the leader of the Yugoslav Partisans, took over control of the Communist Party of Macedonia after winning its agreement to form a separate Macedonian republic as part of a Yugoslav federation. Some 120,000 Macedonian Serbs were forced to emigrate to Serbia because they had opted for Serbian citizenship. Partisan activities against the occupiers increased and, by August 1944, the Macedonian People's Republic was proclaimed with Macedonian as the official language and the goal of unifying all Macedonians was confirmed. But this goal was not achieved. However, the "Pirin" Macedonians in Bulgaria were granted their own cultural development rights in 1947, and then lost them after the Stalin-Tito split in 1948. The Bulgarian claims to Macedonia were revived from time to time after 1948.

On the Greek side, there was no support from the Greek Communist Party for the unification of Macedonian Slavs within Greece with the Yugoslav Macedonians, even though Macedonian Slavs had organized resistance units under Greek command and participated heavily in the postwar Greek Communists' insurrection. With Tito's closing the Yugoslav-Greek frontier in July 1949 and ending his assistance to the pro-Cominform Greek Communists, any chance of territorial gains from Greece had dissipated. On the Yugoslav side, Macedonia became one of the co-equal constituent republics of the Federal Socialist Republic of Yugoslavia under the Communist regime of Marshal Tito. The Macedonian language became one of the official languages of Yugoslavia, along with Slovenian and Serbo-Croatian, and the official language of the Republic of Macedonia where the Albanian and Serbo-Croatian languages were also used. Macedonian was fully developed into the literary language of Macedonians, used as the language of instruction in schools as well as the newly established Macedonian Orthodox Church. A Macedonian University was established in Skopje, the capital city, and all the usual cultural, political, social, and economic institutions were developed within the framework of the Yugoslav Socialist system of self-management. The main goals of autonomy and socialism of the old IMRO organization were fulfilled, with the exception of the unification of the "Pirin" (Bulgarian) and "Greek" Macedonian lands.

All of the republics of the former Federal Socialist Republic of Yugoslavia share a common history between 1945 and 1991, the year of Yugoslavia's dissolution. The World War II Partisan resistance movement, controlled by the Communist Party of Yugoslavia and led by Marshal Tito, won a civil war waged against nationalist groups under foreign occupation, having secured the assistance, and recognition, from both the Western powers and the Soviet Union. Aside from the reconstruction of the country and its economy, the first task facing the new regime was the establishment of its legitimacy and, at the same time, the liquidation of its internal enemies, both actual and potential. The first task was accomplished by the 11 November 1945 elections of a constitutional assembly on the basis of a single candidate list assembled by the People's Front. The list won 90% of the votes cast. The three members of the "coalition" government representing the Royal Yugoslav Government in exile had resigned earlier in frustration and did not run in the elections. The Constitutional Assembly voted against the continuation of the Monarchy and, on 31 January 1946, the new constitution of the Federal People's Republic of Yugoslavia was promulgated. Along with state-building activities, the Yugoslav Communist regime carried out ruthless executions, massacres, and imprisonments to liquidate any potential opposition.

The Tito-Stalin conflict that erupted in 1948 was not a real surprise considering the differences the two had had about Tito's refusal to cooperate with other resistance movements against the occupiers in World War II. The expulsion of Tito from the Cominform group separated Yugoslavia from the Soviet Bloc, caused internal purges of pro-Cominform Yugoslav Communist Party members, and also nudged Yugoslavia into a failed attempt to collectivize its agriculture. Yugoslavia then developed its own brand of Marxist economy based on workers' councils and self-management of enterprises and institutions, and became the leader of the nonaligned group of nations in the international arena. Being more open to Western influences, the Yugoslav Communist regime relaxed somewhat its central controls. This allowed for the development of more liberal wings of Communist parties, particularly in Croatia and Slovenia, which agitated for the devolution of power from the federal to the individual republic level in order to better cope with the increasing differentiation between the more productive republics (Slovenia and Croatia) and the less developed areas. Also, nationalism resurfaced with tensions particularly strong between Serbs and Croats in the Croatian Republic, leading to the repression by Tito of the Croatian and Slovenian "Springs" in 1970–71.

The 1974 constitution shifted much of the decision-making power from the federal to the republics' level, turning the Yugoslav Communist Party into a kind of federation (league) of the republican parties, thus further decentralizing the political process. The autonomous provinces of Vojvodina and Kosovo were also given a quasi-sovereign status as republics, and a collective presidency was designed to take over power upon Tito's death. When Tito died in 1980, the delegates of the six republics and the two autonomous provinces represented the interests of each republic or province in the process of shifting coalitions centered on specific issues. The investment of development funds to assist the less developed areas became the burning issue around which nationalist emotions and tensions grew ever stronger, along with the forceful repression of the Albanian majority in Kosovo.

The economic crisis of the 1980s, with runaway inflation, inability to pay the debt service on over $20 billion in international loans that had accumulated during Tito's rule, and low productivity in the less-developed areas became too much of a burden for Slovenia and Croatia, leading them to stand up to the centralizing power of the Serbian (and other) Republics. The demand for a reorganization of the Yugoslav Federation into a confederation of sovereign states was strongly opposed by the coalition of Serbia, Montenegro, and the Yugoslav army. The pressure towards political pluralism and a market economy also grew stronger, leading to the formation of non-Communist political parties that, by 1990, were able to win majorities in multiparty elections in Slovenia and then in Croatia, thus putting an end to the era of the Communist Party monopoly of power. The inability of the opposing groups of centralist and confederalist republics to find any common ground led to the dissolution of Yugoslavia through the disassociation of Slovenia, Croatia, Bosnia and Herzegovina, and Macedonia, leaving only Serbia and Montenegro together in a new Federal Republic of Yugoslavia.

The years between 1945 and 1990 offered the Macedonians an opportunity for development in some areas, in addition to their cultural and nation-building efforts, within the framework of a one-party Communist system. For the first time in their history the Macedonians had their own republic and government with a very broad range of responsibilities. Forty-five years was a long enough period to have trained generations for public service responsibilities and the governing of an independent state. In addition, Macedonia derived considerable benefits from the Yugoslav framework in terms of federal support for underdeveloped areas (Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro). Macedonia's share of the special development funds ranged from 26% in 1966 to about 20% in 1985, much of it supplied by Croatia and Slovenia.

In the wake of developments in Slovenia and Croatia, Macedonia held its first multiparty elections in November–December 1990, with the participation of over 20 political parties. Four parties formed a coalition government that left the strongest nationalist party (IMRO) in the opposition. In January 1991 the Macedonian Assembly passed a declaration of sovereignty.

Independence

While early in 1989 Macedonia supported Serbia's Slobodan Milošević in his recentralizing efforts, by 1991, Milošević was viewed as a threat to Macedonia and its leadership took positions closer to the confederal ones of Slovenia and Croatia. A last effort to avoid Yugoslavia's disintegration was made 3 June 1991 through a joint proposal by Macedonia and Bosnia and Herzegovina, offering to form a "community of Yugoslav Republics" with a centrally administered common market, foreign policy, and national defense. However, Serbia opposed the proposal.

On 26 June 1991—one day after Slovenia and Croatia had declared their independence—the Macedonian Assembly debated the issue of secession from Yugoslavia with the IMRO group urging an immediate proclamation of independence. Other parties were more restrained, a position echoed by Macedonian president Kiro Gligorov in his cautious statement that Macedonia would remain faithful to Yugoslavia. Yet by 6 July 1991, the Macedonian Assembly decided in favor of Macedonia's independence if a confederal solution could not be attained.

Thus, when the process of dissolution of Yugoslavia took place in 1990–91, Macedonia refused to join Serbia and Montenegro and opted for independence on 20 November 1991. The unification issue was then raised again, albeit negatively, by the refusal of Greece to recognize the newly independent Macedonia for fear that its very name would incite irredentist designs toward the Slav Macedonians in northern Greece. The issue of recognition became a problem between Greece and its NATO allies in spite of the fact that Macedonia had adopted in 1992 a constitutional amendment forbidding any engagement in territorial expansion or interference in the internal affairs of another country. In April 1993, Macedonia gained membership in the UN, but only under the name of "Former Yugoslav Republic of Macedonia." Greece also voted against Macedonian membership in the Conference on Security and Cooperation in Europe on 1 December 1993. However, on 16 December 1993, the United Kingdom, Germany, Denmark, and the Netherlands had announced the initiation of the recognition process for Macedonia and other countries joined the process, which resulted in recognition of Macedonia by the United States on 8 February 1994. In April 1994 the EU began to take legal action in the European Court of Justice against Greece for refusing to lift a trade blockade against Macedonia that it initiated two months earlier. However, by October 1995, Greece agreed to lift the embargo, in return for concessions from Macedonia that included changing its national flag, which contained an ancient Greek emblem depicting the 16-pointed golden sun of Vergina. The dispute over the name of Macedonia remained, but the agreement defused the threat of violence in the region.

On 3 October 1995, Macedonian president Kiro Gligorov narrowly survived a car-bomb attack that killed his driver. The next day, parliament named its speaker, Stojan Andov, as the interim president after determining that Gligorov was incapable of performing his functions. Gligorov resumed his duties in early 1996. As tensions between majority Albanians and minority Serbs in the neighboring Yugoslav province of Kosovo heated up from 1997 to 1999, fears mounted that full-scale fighting would spread to Macedonia. Ethnic violence erupted in the town of Gostivar in July 1997 after the Macedonian government sent in special military forces to remove the illegal Albanian, Turkish, and Macedonian flags flying outside the town hall. Several thousand protesters, some armed, had gathered and were in a stalemate with police. During the skirmish, police killed three ethnic Albanians and several policemen were shot. The Albanian nationalist Kosovo Liberation Army also claimed attacks against two police stations in Macedonia in December 1997 and January 1998. As the violence mounted the United Nations Security Council voted unanimously on 21 July 1998 to renew the UNPREDEP (United Nations Preventive Deployment Force) mandate another six months and to bolster the contingent with 350 more soldiers.

When full-scale fighting in Kosovo erupted in early 1999 and NATO responded with air strikes against Serbia, Macedonia became the destination for tens of thousands of Kosovar Albanian refugees fleeing from Serbian ethnic cleansing. For a while the situation in Macedonia remained tense as the government, fearful of a spillover of the fighting into its territory, closed its frontiers to refugees. Nonetheless, the presence of NATO forces and pledges of international aid prevented (aside from errant bombs and a couple of cross-border incursions) a spread of the fighting and maintained domestic stability in Macedonia.

However, in 2000, violence on the border with Kosovo increased, putting Macedonian troops in a state of high alert. In February 2001, fighting broke out between government forces and ethnic Albanian rebels, many of who were from the Kosovo Liberation Army, but some were also ethnic Albanians from within Macedonia. The insurrection broke out in the northwest, where rebels took up arms around the town of Tetovo, where ethnic Albanians make up a majority of the population. NATO deployed additional forces along the border with Kosovo to stop the supply of arms to the rebels; however, the buffer zone proved ineffective. As fighting intensified in March, the government closed the border with Kosovo. The UN High Commissioner for Refugees estimated that 22,000 ethnic Albanians had fled the fighting by that time. Fears in Macedonia of the creation of a "Greater Albania," including Kosovo and parts of Macedonia, were fueled by the separatist movement, and mass demonstrations were held in Skopje urging tougher action against the rebels. The violence continued throughout the summer, until August, when the Ohrid Framework Agreement was signed by the government and ethnic Albanian representatives, granting greater recognition of ethnic Albanian rights in exchange for the rebels' pledge to turn over weapons to the NATO peacekeeping force.

In November 2001, parliament amended the constitution to include reforms laid out in the Ohrid Framework Agreement. The constitution recognizes Albanian as an official language, and increases access for ethnic Albanians to pubic-sector jobs, including the police. It also gives ethnic Albanians a voice in parliament, and guarantees their political, religious and cultural rights. In March 2002, parliament granted an amnesty to the former rebels who turned over their weapons to the NATO peacekeepers in August and September 2001. By September 2002, most of the 170,000 people who had fled their homes in advance of the fighting in 2001 had returned.

Parliamentary elections were held on 15 September 2002, which saw a change in leadership from the nationalist VMRO-DPMNE party of Prime Minister Ljubco Georgievski to the moderate Social Democratic League of Macedonia (SDSM)-led "Together for Macedonia" coalition. Branco Crvenkovski became prime minister. At that time Boris Trajkovski was president; he had been elected from the VMRO-DPMNE party in 1999. In the September 2002 elections, former ethnic Albanian rebel-turned-politician Ali Ahmeti saw his Democratic Union for Integration party (DUI) claim victory for the Albanian community, which makes up more than 25% of the Macedonian population. Ahmeti, former political leader of the National Liberation Army (NLA), delayed taking his seat in parliament until December, for fear it would ignite protests among Macedonians who still regarded him as a terrorist. Indeed, in January 2003, the DUI headquarters in Skopje came under assault from machine-gunfire and a grenade, the fourth such attack on DUI offices.

In November 2002, NATO announced that of 10 countries aspiring to join the organization, 7 would accede in 2004, leaving Albania, Macedonia, and Croatia to wait until a later round of expansion. In January 2003, Albania and Macedonia agreed to intensify bilateral cooperation, especially in the economic sphere, so as to prepare their way for NATO and EU membership.

The year 2004 was a rather tumultuous one for Macedonia, and Macedonians. In February, President Trajkovski, who was on his way to a conference in Mostar, Bosnia, died in a plane crash. Two months later, elections were staged to replace him. Branko Crvenkovski, the acting prime minister and the leader of the ruling Social Democratic Union of Macedonia, won the second round of the election, with 62.7% of the vote; his main opponent—Sasko Kedev of the VMRO-DPMNE—got 37.3%. In June 2004, Hari Kostov, the former minister of interior, became prime minister following approval by the parliament. His reign was to be chaotic and short lived though—ethnic protests littered the country as parliament implemented legislation that gave Albanians more autonomy in the areas where they predominated. In November 2004, Kostov resigned and his place was taken by the defense minister, Vlado Buckovski (who also took over the leadership of the Social Democratic Union). In the summer 2005, the parliament passed a law that allowed ethnic Albanians to fly the Albanian flag in the areas where they compose the majority.

GOVERNMENT

Macedonia achieved its independence from the former Yugoslavia on 20 November 1991, having adopted its constitution on 17 November 1991. Macedonia's unicameral assembly of 120 seats is called the Sobranje. Eighty-five members are elected in single-seat constituencies, and 35 are elected by proportional representation. The executive branch consists of the president (elected by popular vote for a five-year term) and the Council of Ministers (elected by the majority vote of all the deputies in the Sobranje). The prime minister is elected by the assembly. In November 2001, parliament amended the constitution to include greater recognition of ethnic Albanian political, religious, and cultural rights. In October 2005, the president of Macedonia was Branko Crvenkovski, while Vlado Buckovski—the leader of the Social Democratic Union—occupied the prime minister post.

POLITICAL PARTIES

Following the 2002 elections, party representation in the Sobranje (Assembly) was as follows: the Together for Macedonia coalition (composed of 10 parties led by the Social Democratic League of Macedonia and the Liberal Democratic Party—SDSM-LDP), 40.5% (59 seats); Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian Unity (VMRO-DMPNE), 24.4% (34 seats); Democratic Union for Integration (DUI), 11.9% (16 seats); Democratic Party of Albanians (PDS), 5.2% (7 seats); Democratic Prosperity Party (PDP), 2.3% (2 seats); National Democratic Party (NDP), 2.1% (1 seat); and the Socialist Party of Macedonia (SPM), 2.1% (1 seat). The DUI, PDS, PDP, and NDP are ethnic Albanian parties. The next legislative elections were scheduled to take place in 2006. The last presidential election was held in 2004 and Social-Democrat Branko Crvenkovski won a majority in the second round over his main opponent, VMRODPMNE candidate Sasko Kedev. The next presidential elections were scheduled to take place in April 2009.

LOCAL GOVERNMENT

Macedonia's 85 municipalities form the structure of local government. (Out of these municipalities, 10 represent the greater Skopje area.) The municipality is the basic self-managed sociopolitical community. Council members are directly elected for four-year terms, as are the mayors of the municipalities. Citizens may form neighborhood (village and suburb) governing bodies. Where the number of members of a particular nationality exceeds 20% of the total number of inhabitants in a municipality, the language and alphabet of that nationality shall be in official use, in addition to Macedonian and the Cyrillic alphabet.

The local elections held in April 2005 went without ethnic tensions, although international observers drew attention to irregularities during all of the three voting rounds. Despite criticism, Prime Minister Buckovski considered the local election process to be a "model" for the future. The ruling Together for Macedonia coalition won 36 mayoral races; the Albanian Democratic Union of Integration (a coalition partner of the former) won 15; the VMRO-DPMNE, 21; the VMRO-People's Party, 3; the Democratic Party of Albanians/Party of Democratic Prosperity, 2; the Macedonian Roma Alliance, 1; the rest of the seven mayoral seats were won by mayors supported by a voter's bloc. Trifun Kostovski won the city of Skopje race over the candidate of the SDSM-led coalition—Risto Penov.

JUDICIAL SYSTEM

The judicial system is comprised of three tiers: municipal courts, district courts, and the Supreme Court. A Constitutional Court handles issues of constitutional interpretation, including protection of individual rights. The constitution directs the establishment of a people's ombudsman to defend citizens' fundamental constitutional rights; the office became functional in 1997. An independent Republican Judicial Council appoints judges, who are confirmed by parliament. The Constitutional Court has not yet rendered any decisions in the area of protection of individual rights or liberties. The constitution guarantees the autonomy and independence of the judiciary.

ARMED FORCES

In January 1992, the Macedonian Assembly approved the formation of a standing army of 25,000–30,000 troops. However, the actual size of the military was 10,890 active personnel in 2005, of which the army was the largest service with 9,760 active members. The army was equipped with 61 main battle tanks, 51 reconnaissance vehicles, 11 armored infantry fighting vehicles, 207 armored personnel carriers, and 944 artillery pieces. Although there is no data as to the number of reservists, the nation's reserve forces were broken down in 2005 into eight infantry brigades and one (each) artillery, antitank and air defense regiments. The army also operated a maritime patrol arm equipped with five patrol/coastal vessels. The air force had 1,130 active personnel which had four combat capable aircraft made up of four fighter ground attack aircraft. The nation's paramilitary force consisted of a police force numbering 7,600, of which some 5,000 were armed. As of 2005, foreign forces stationed in Macedonia consist of 260 US personnel attached to KFOR 1. The national defense budget in 2005 totaled $129 million.

In March 1997, rioters in neighboring Albania looted government armories, making off with hundreds of thousands of AK-47 assault rifles. Substantial numbers of those weapons were smuggled into Macedonia and sold to ethnic Albanians.

INTERNATIONAL COOPERATION

The Former Yugoslav Republic of Macedonia was admitted to the United Nations on 8 April 1993; it is a part of ECE and a member of several nonregional specialized agencies, such as FAO, IAEA, IMF, UNESCO, UNIDO, WHO, and the World Bank. Macedonia is also a member of the Council of Europe, the Euro-Atlantic Partnership Council, the European Bank for Reconstruction and Development, the NATO Partnership for Peace, and the OSCE.

In February 1994 Macedonia's sovereignty was recognized by the United States and EU countries. Greece objected to the use of the name Macedonia by the nation and imposed a trade embargo for this and other issues. Greece and Macedonia signed an interim agreement in 1995 ending the embargo and opening negotiations for diplomatic recognition. Also in 1995, Macedonia ratified the European Convention on Human Rights and accepted the jurisdiction of the European Court of Human Rights. The convention includes several Eastern and Central European nations that see membership as a precursor to possible admission to the European Union in the future.

In environmental cooperation, Macedonia is part of the Basel Convention, Conventions on Biological Diversity and Air Pollution, Ramsar, CITES, the Kyoto Protocol, the Montréal Protocol, and the UN Conventions on the Law of the Sea and Climate Change.

ECONOMY

Although the poorest of the six former Yugoslav republics, Macedonia nevertheless can sustain itself in food and energy needs using its own agricultural and coal resources. Due to the scarcity of arable land in the Vardar River Valley and other valleys in the west, expatriate employment in Serbia and Germany has become more common.

In August 1992, because it resented the use of "Macedonia" as the republic's name and feared a hidden ambition to lay claim to the Greek province with the same name, Greece imposed a partial blockade on Macedonia. Greece later imposed a full trade embargo against Macedonia in February 1994. This blockade, combined with the UN sanctions on Serbia and Montenegro, cost the economy an estimated $2 billion by the end of 1994. Macedonia's per capita GNP fell from $1,800 to less than $760 because of the sanctions and the Greek blockade. After threats of legal action by the EU, in October 1995 Greece ceased the embargo and promised not to interfere with Macedonia's commerce.

From 1998 to 2000 real GDP growth averaged a little over 4%, but in 2001, in the wake of rising global tensions and a global economic slowdown, real GDP growth fell 4.5%. Although 2002 saw an end to the contraction, growth was estimated at only 0.3%. Inflation had jumped to 6.1% in 2000, but moderated to 3.7% in 2001, and was projected at only 1% in 2002. Unemployment remains a serious problem. The official estimate for 2002 was almost 32%, with some 70% of 15- to 24-year-olds without work. In 2001, agriculture accounted for about 10% of GDP; industry, 32%; and services, 58%.

In 2004, the GDP growth rate was 5.3%, up from 4.7% in 2003; by 2005 however, it was expected to fall to 5.0%. Inflation decreased to negative values in 2004 (-0.4 %), but overall it tended to hover around 1%. At around 37%, unemployment remains a big problem for the Macedonian economy, although many of the seemingly jobless are thought to hold jobs in the informal sector. The economic growth is expected to remain steady over the next years, and will be fueled by rapid growth in a series of key sectors: transport and telecommunications, trade and financial services. This growth will in turn spur an increase in domestic demand, and a recovery of the industrial sector (especially steel production).

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Macedonia's gross domestic product (GDP) was estimated at $15.6 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $7,400. The annual growth rate of GDP was estimated at 4%. The average inflation rate in 2005 was 1%. It was estimated that agriculture accounted for 11.7% of GDP, industry 32.1%, and services 56.2%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $171 million or about $8 per capita and accounted for approximately 3.7% of GDP. Foreign aid receipts amounted to $234 million or about $114 per capita and accounted for approximately 5.0% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Macedonia totaled $3.46 billion or about $165 per capita based on a GDP of $4.7 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 2.1%. In 2001 it was estimated that approximately 33% of household consumption was spent on food, 15% on fuel, 6% on health care, and 9% on education. It was estimated that in 2003 about 30.2% of the population had incomes below the poverty line.

LABOR

There were an estimated 855,000 persons in the Macedonian labor force in 2004. As of 2003, 22% were in agriculture, 33.9% in industry, 43.8% in the services sector, with 0.3% in undefined occupations.

The constitution guarantees citizens the right to form labor unions with restrictions on the military, police, and government workers. Approximately 50% of the workforce is organized. The Confederation of Trade Unions of Macedonia (SSSM) is the labor confederation which is the successor to the old Communist Party labor confederation, and is still the government's primary negotiating partner on social issues. Employees have little bargaining power in the weak economic environment. Strikes may be utilized to protect employee interests.

Macedonian law establishes a 40-hour workweek, with a 24-hour rest period (minimum) plus vacation and sick leave. The minimum employment age by law is 15 years, with minors under the age of 18 limited by the number of hours they can work and by the types of work they can perform. The law provides that workplaces must meet minimum occupational health and safety standards but reports indicate that these are not effectively enforced. As of 2005, Macedonia did not have a legal national minimum wage. The average monthly wage that year was about $250, and did not provide a family with a living wage. It was estimated by the government that around 29.6% of the population lived below the poverty line.

AGRICULTURE

As of 2003, there were some 612,000 hectares (1,512,000 acres) of arable land, representing 24% of the total land area. Most private farms are very small; 65% of private farmers own at most one hectare (2.7 acres) sometimes scattered in five or six locations.

Wheat production is concentrated in south central Macedonia and in public farms. Corn and barley are produced throughout the country, mostly by the private sector. About 80% of agricultural land is held by the private sector. The remaining 20% is held by state-owned enterprises known as Kombinats. Estimated grain production in 2004 included: wheat, 358,000 tons; barley, 150,000 tons; and corn, 146,000 tons. Rye, rice, and oats are also grown in smaller quantities. Other important crops produced in 2004 included (in 1,000 tons): tomatoes, 117; potatoes, 199; sunflower seeds, 7.4; sugar beets, 52; and walnuts, 3.7. In 2004, 247,600 tons of grapes and 26,000 tons of plums were produced. Tobacco is grown throughout Macedonia and is planted on 4% of the arable land. Production was 21,140 tons in 2004.

ANIMAL HUSBANDRY

Meadows and pastures accounted for about 25% of the total land area. Livestock in 2005 consisted of 1,200,000 sheep, 265,000 head of cattle, 200,000 pigs, and 3,000,000 chickens. Cattle numbers have increased slightly since 1992 due mainly to the increase in cows. About 50% of cattle are for the dairy sector. There are about 30 state farms with 250–1,200 cows in the Skopje and Bitola areas. Over 90% of cattle, however, are in private hands, with most farmers rarely having more than three cows because of limited land. Cow milk accounts for 74% of milk production; sheep milk, 26%. The rapidly growing goat sector is also contributing to increasing milk production. The raising of goats was prohibited during the socialist era in order to protect forestry resources. Production in 2005 included (in tons): mutton, 7,500; beef, 10,000; poultry, 4,000; and milk, 263,000.

FISHING

Inland fishing occurs on Lake Ohrid, Lake Prespa, and the Vardar River. The total catch in 2003 was 1,648 tons (primarily trout and carp), all from inland fishing. Macedonia has no direct access to the sea for marine fishing.

FORESTRY

About 36% of the total area consisted of forests and woodlands in 2000, mostly in the eastern and southern regions. Bitola is the center for the wood products industry. Total roundwood production in 2004 was 812,000 cu m (28.7 million cu ft), with 85% used as firewood.

MINING

Macedonia's mining and quarrying sector output, by value, dropped approximately 39% in 2003 from the previous year, although the country's gross domestic product (GDP) that year rose by 3.1% from 2002. Lead-zinc ore was mined at Kamenica and Probistip; copper, at Bucim; and iron ore, at Tajmite, Demir Hisar, and Damjan. Gold, bentonite, diatomite, feldspar, lime, talc, pumice, stone (carbonite and silicate), gypsum, and sand and gravel were also produced in 2003. Most of the industrial minerals produced went mainly to Balkan countries, the EU, and Russia. Production totals in 2003 were: mined lead (by gross weight), 40,000 metric tons, down from 200,000 metric tons in 2002; zinc (refined primary and secondary metal), 15,100 metric tons, down from 38,000 metric tons in 2002; copper (concentrate by gross weight), 15,000 metric tons; silver, 10,000 kg, down from 12,000 kg in 2002; and gold 400 kg, down from 500 kg in 2002. No chromite was produced in 1998, 1999, 2000 or 2003. Nickel output in 2003 totaled 5,600 metric tons, up from 5.100 metric tons in the previous year.

ENERGY AND POWER

In 2002, 5.762 billion kWh of electricity were generated, of which 86.7% came from conventional thermal plants and the rest from hydropower. Installed capacity totaled 1,568,000 kW in 2001. Consumption of electricity in 2002 was 6.150 billion kWh.

Macedonia's only domestic mineral fuel is coal. In 2002, the country produced 8,356,000 short tons, all of which was brown coal or lignite. Imports of coal totaled 183,000 short tons. Demand for coal in 2002 came to 8,092,000 short tons.

Macedonia imported an average of 11,540 barrels per day of refined petroleum products, with demand that year averaging 20,160 barrels per day. There were no record imports or production of natural gas in 2002.

INDUSTRY

Macedonia's industries are centered around Skopje. Steel and chemical production, along with buses, textiles, food processing, tobacco, furniture, and ceramics are important industries. In 1995, the government began privatizing its 25 largest public industries. Industry accounted for 31% of GDP in 2001. The Kosovo crisis of 1999 severely disrupted the Macedonian economy, as did the ethnic Albanian armed insurgency in Macedonia in 2001.

In 2004, industry made up 26% of the GDP, down from 32.8% in 2003. Services benefited from this loss, growing from a 55.5% participation in the GDP in 2003, to 62.8% in 2004. Agriculture remained relatively stable, at about 11%. The industrial production growth rate in 2004 was consequently 0%, indicating a loss of momentum for the industrial sector. Main industries were resource based and included coal, metallic chromium, lead, zinc, ferronickel, textiles, wood products, tobacco, food processing, buses, and steel. By 2005, industry showed signs of recovery, with the industrial output growth jumping to 8.2% in the first nine months of the year.

SCIENCE AND TECHNOLOGY

The Former Yugoslav Republic of Macedonia uses only low levels of technology for its agriculture and mining industries. Oil refining is performed by distillation only.

The Macedonian Academy of Sciences and Arts, founded in 1967 at Skopje, has sections of biological and medical sciences and of mathematical and technical sciences. The country also has an Association of Sciences and Arts, founded in 1960 at Bitola, as well as specialized learned societies concerned with physics, pharmacy, geology, medicine, mathematics and computers, veterinary surgery, engineering, forestry, and agriculture. Macedonia has research institutes dealing with geology, natural history, cotton, animal breeding, tobacco, animal husbandry, and water development.

The University of Skopje (founded in 1949) has faculties of civil engineering, agriculture, veterinary medicine, forestry, medicine, pharmacy, mechanical engineering, electro technical engineering, technology and metallurgy, natural and mathematical sciences, stomatology, and geology and mining. In 1987–97, science and engineering students accounted for 47% of university enrollment. The Natural History Museum of Macedonia (founded in 1926) is located in Skopje.

Macedonia in the period 1990–2001, had 387 scientists and engineers and 29 technicians per million people engaged in research and development (R&D). In 2002, Macedonia spent $34.212 million on R&D, or 0.68% of its GDP. Of that amount, government sources accounted for 76.3% of R&D spending, with foreign sources accounting for 8.6%; business accounted for 7.8%; and higher education 7.3%. High technology exports in 2002 totaled $9 million, or 1% of its manufactured exports.

DOMESTIC TRADE

The commercial and industrial center of the country is Skopje, with industries that include glass, beer, bricks, and tobacco. Prilep serves as the nation's agricultural center for tobacco and fruit. Kumanovu is an industrial center for canning and tobacco processing and a trading center for cattle, fruit, and liquor. Domestic commerce typically centers around an urban marketplace, where marketing of farm products is carried out. Formal trade of products and commodities through state enterprises has declined since independence. However, private traders do not always offer a consistent and reliable market outlet for producers.

FOREIGN TRADE

In 1999, exports amounted to $1.2 billion, of which manufactured goods accounted for an estimated 89%; agriculture, 9%; and mining, 2%. Imports in 1999 totaled $1.8 billion, of which machinery and transport equipment accounted for an estimated 20%; manufactured goods, 16%; food and live animals, 12%; chemicals, 10%; fuels and lubricants, 9%; other manufactured products, 5%; raw materials (excluding fuels), 3%; and beverages and tobacco, 2%.

In 2004, exports totaled $1.6 billion (FOB—Free on Board), while imports grew to $2.7 billion. Macedonia's main export partners were Serbia and Montenegro (which received 31.4% of total exports), Germany (19.9%), Greece (8.9%), Croatia (6.9%), and the United States (4.9%). Imports mainly came from Greece (15.4%), Germany (13.1%), Serbia and Montenegro (10.4%), Slovenia (8.6%), Bulgaria (8.1%), Turkey (6%), and Romania (4.7%).

The structure of the trade has changed dramatically since 1999. Over the course of only five years, Macedonia's export structure changed to: textiles and clothing (which accounted for 32.3% of all exports), iron and steel (24.2%), chemicals (4.8%), petroleum and petroleum products (4.5%), and tobacco (4.4%). Principal imports included: petroleum and petroleum products (10.2%), road vehicles (6.3%), industrial machinery (4.9%), meat and meat preparations (3.0%), and medical and pharmaceutical products.

BALANCE OF PAYMENTS

The US Central Intelligence Agency (CIA) reported that in 2002 the purchasing power parity of Macedonia's exports was $1 billion while imports totaled $1.6 billion resulting in a trade deficit of $600 million.

The International Monetary Fund (IMF) reported that in 2001 Macedonia had exports of goods totaling $1.15 billion and imports totaling $1.58 billion. The services credit totaled $234 million and debit $337 million.

Exports of goods and services totaled $1.7 billion in 2004, up from $1.4 billion in 2003. Imports grew from $2.1 billion in 2003, to $2.8 billion in 2004. The resource balance was on a negative upsurge, growing from -$0.7 billion in 2003, to -$1.1 billion in 2004. A similar trend was registered for the current account balance, which deteriorated from -$149 million in 2003, to -$414.8 million in 2004 (or -3.3% of the GDP). The national reserves (excluding gold) were $897 million in 2003, covering approximately five months of imports; in 2004, they grew to $905 million. Macedonia's balance of payment trade deficit was expected to decrease in 2005 as a result of export growth, especially of metals.

BANKING AND SECURITIES

In 1992, the National Bank of Macedonia was created to issue currency, conduct monetary polices, and regulate the banking sector of the country.

Commercial banks in Macedonia include the Komercijalna Banka and Scopanska Banka, both in Skopje. The currency unit is the Macedonia denar (den) introduced on 10 May 1993, at a rate of 1:1,000 against the coupon. The central bank also introduced a floating rate for the denar against major currencies. There are no security exchanges in the country.

Under a five-year stabilization program agreed with the IMF, the government is focusing on reducing inflation, overhauling the financial system, and launching structural reforms. Despite the Greek blockade, the program met its fiscal targets in 1994 with the state deficit declining to 2.5% of GDP in 1994. Reform of the state banking system made progress in 1996, although banks are still lending to inefficient state enterprises. Privatization has made some progress with the privatization agency raising $8 million in revenue in 1994 through the sale of four large companies and 14 medium-sized and small companies.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were

equal to $164.1 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $887.3 million. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 10.7%.

INSURANCE

In 1995, the Makedonija Insurance and Reinsurance Company was offering the following types of insurance: property, liability, life, accident, motor, fire, and marine.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 2005 Macedonia's central government took in revenues of approximately $2.1 billion and had expenditures of $2.2 billion. Revenues minus expenditures totaled approximately -$84 million. Public debt in 2005 amounted to 32.6% of GDP. Total external debt was $2.207 billion.

TAXATION

As of 2005, Macedonia had a 15% corporate tax rate, which was also applied to branch operations. Capital gains, interest and royalties are considered income and are taxed at the corporate rate. Dividends paid to resident companies are not considered income, if the dividends were paid out of taxable income. Dividends paid to individuals are taxed at the corporate rate, but are applied to only 50% of the gross dividend amount. Personal income taxes range from 1.28–2.17%. Payroll taxes include a 21.2% rate for the pension fund, a 9.2% rate for the health fund, a 1.6% employment tax, and a 0.5% additional health fund contribution. On 1 April 2000 a value-added tax (VAT) was introduced. As of 2005, the standard VAT rate was 18%. There is also a reduced rate of 5% applied to basic goods and services. Other taxes include excise taxes on petrol, fuel oil, alcoholic beverages, tobacco, and property taxes.

CUSTOMS AND DUTIES

Macedonia has adopted a duty-free import agreement with Slovenia, Croatia, and Serbia (as of October 1996). Importers pay only a border crossing tax for document handling. Macedonia is also seeking to establish a trade zone with Bulgaria and Albania. Tariffs, as of 2005, ranged from 0–30%, with the average at 10.5%, and were based on the item's cost, insurance and freight (CIF) value. However, products such as beverages, cereals, vegetables and fruit were subject to a 60% rate. The VAT is also applied to imports based on the CIF plus duty value. Corruption in the customs system discourages trade.

FOREIGN INVESTMENT

Macedonia's isolation, technological disadvantages, and penchant for political instability created a poor climate for potential foreign investors. In 1995, the government began restructuring and privatizing its largest state-owned companies. After 1997, inflows of foreign investment increased substantially.

The country has taken important steps towards attracting new foreign direct investment (FDI), and has created a legislative framework that does not discriminate between domestic investors and their foreign counterparts. In 2004, the Macedonian privatization process was almost complete, with residual shares still being owned by the government in a couple of key industries. By the end of 2005, the government planned to privatize the national electric company—ESM—and sell off its 48% participation in the telephone company.

After hitting a peak in 2001 (with capital in-flows totaling $445 million), when Hungary was the largest source of FDI, the rate of foreign investments slowed down in subsequent years, totaling $82 million in 2002, $98 million in 2003, and $104 million in the first three quarters of 2004. The biggest investing countries in 2004 were Switzerland (with $7.1 million invested), Greece ($6.6 million), and Slovenia ($1 million).

ECONOMIC DEVELOPMENT

In May 1994, the EBRD established a $10 million facility to guarantee Komercijalna Banka's designated correspondent banks against nonpayment under confirmed letters of credit. By securing credit facilities, the bank's clients are able to stimulate production and increase exports. In 1995, net resource flows from international financial institutions consisted of $43 million from the World Bank, $37 million from the International Monetary Fund (IMF), and $16 million from other institutions.

In 1995, the government began privatizing its largest state-owned industries. A total of 1,200 enterprises were to be privatized, 65% of them classified as small (fewer than 50 employees). The portion of a company's share capital, which is community-owned, is known as social capital; this forms the basis of the privatization process. In theory, social capital is owned by the company's employees. However, there are severe restrictions that make it nontransferable and hence valueless to the individual.

The Kosovo crisis of 1999 placed severe burdens on Macedonia's already-strained economy as an influx of Kosovar refugees flooded across the border and trade routes were disrupted. Fighting between government forces and ethnic Albanian rebels that began in February 2001 further disrupted the economy. Real GDP declined by 4.5% in 2001, and government spending mushroomed. Spending on security raised the general government deficit to 7.2% of GDP, compared with a surplus of 1.8% in 2000.

In 2003, the IMF approved a $28 million standby arrangement for Macedonia, which expired in June 2004. The loan was geared to support the government's economic program for fiscal stability following the 2001 crisis, to promote growth, improve the business climate, and improve living standards for Macedonians.

Although Macedonia's economy has been improving steadily, there still are a number of problems that need to be dealt with. Two of the most important issues are the rampant unemployment and an inflation rate that discourages exports. A 2005 World Bank report that looked at the business climate in 155 countries ranked Macedonia 81st in terms of the ease of conducting commercial operations. The government responded promptly to the results of this report and implemented a package of laws that would make it easier for entrepreneurs or investors to start a business. However, the 2006 business climate still had numerous weak spots that needed to be addressed through a concerted effort by the legislative.

SOCIAL DEVELOPMENT

Macedonia, historically the poorest of the former Yugoslav republics, has suffered further from the imposition of international sanctions against Serbia, the rising tide of refugees, and increasing unemployment. Social care is funded by the government to assist the disabled, elderly, unemployed, and poor. Maternity benefits are available for nine months, and women are guaranteed the right to return to work within two years after childbirth.

Although women have the same legal rights as men, the traditional cultures of both Christian and Muslim communities have limited their advancement in society. There are some professional women but generally women are not represented in the higher levels of professional or public life. Sexual harassment in the workplace is prevalent, especially in the private sector. Widespread violence against women in the home remains unpunished by authorities, and it is extremely rare for criminal charges to be filed against abusive husbands. In 2004 Macedonia submitted its first report to the UN Committee on the Elimination of Discrimination Against Women. Children, like adults, have been victims of internal conflict and ethnic violence. Resources are scarce to fund programs to benefit children.

Ethnic minorities, including Albanians and Turks, complain of widespread discrimination. Restrictive naturalization policies have left many Albanians without Macedonian citizenship, and therefore without voting rights. Abuse by police of prisoners and suspects is widespread, with most cases involving Roma, ethnic Albanians, or Kosovar refugees.

HEALTH

Following the breakup of the former Yugoslavia, the availability of health care statistics for Macedonia was hampered by internal hostilities. Separate health care data was slowly emerging from the new independent regions. Physicians in Macedonia are adequately trained, but there is a shortage of pharmaceuticals and medical equipment. Patients who are seriously ill will often go abroad for medical help.

As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 13.4 and 7.7 per 1,000 people. There were two births per married woman of childbearing age during 1999. The infant mortality rate has been reduced from 54 per 1,000 live births in 1980 to 10.09 in 2005. The life expectancy at birth for the average Macedonian was 73.73 in 2005

The immunization rates for children under the age of one were as follows: diphtheria, whooping cough and tetanus, 87%; measles, 85%; and tuberculosis, 90%. The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 200 people living with HIV/AIDS in the country. There were an estimated 100 deaths from AIDS in 2003.

HOUSING

During the years of the former Yugoslav SFR, there was a chronic shortage of housing in Macedonia and the other republics. Since independence, the ability to find an available apartment or condominium has improved. Federal banks have begun loan programs making it now possible to finance the construction of seasonal homes in the country or by resort areas. In the 1994, there were about 580,342 dwellings supporting about 501,963 households. There was an average of 3.85 people per household. In 2002, there were about 698,143 dwelling units supporting 564,296 households. The average number of people per household was 3.58.

EDUCATION

Public education at the primary level is compulsory for eight years, generally for students between the ages of 7 and 15. Elementary school covers these first eight years of study. This is followed by a four-year secondary program of general, technical, vocational, or special (arts) studies.

In 2001, about 28% of children between the ages of three and six were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 91% of age-eligible students. In 2001, secondary school enrollment was about 81% of age-eligible students. Nearly all students complete their primary education. The student-to-teacher ratio for primary school was at about 20:1 in 2003; the ratio for secondary school was about 16:1.

At the postsecondary level, there are two universities: the Bitola University, which was founded in 1979, and the University of Skopje, founded in 1949. The language of instruction is Macedonian, and there are faculties of law, engineering, medicine, arts, science, physical education, architecture, and agriculture. In 2003, about 27% of the tertiary age population were enrolled in some type of higher education program; 24% of men and 32% of women. The adult literacy rate for 2004 was estimated at about 96.1%, with 98.2% for men and 94.1% for women.

As of 2003, public expenditure on education was estimated at 3.5% of GDP.

LIBRARIES AND MUSEUMS

The Kliment Ohridski National and University Library in Skopje (1944) holds over 1.5 million items and is the largest collection in the country. The District of Skopje Public Library has 953,000 volumes.

In Skopje are the Fine Arts Museum, the Museum of Contemporary Art, and the Museum of the City of Skopje. There are also several archaeological and historical museums. The National Museums, specializing in archeology and ethnology, are in Ohrid and Stip, and there is an Islamic Art museum in Bitola. In Strumica is the Institute for Protection of Cultural Monuments, Natural Rarities, and Museum.

MEDIA

In 2003, there were an estimated 271 mainline telephones for every 1,000 people. The same year, there were approximately 177 mobile phones in use for every 1,000 people.

Though most media are government owned, an independent television station, A-1, broadcasts from Skopje. Macedonian Radio and Television (MRTV) is the only public broadcaster in the country and has the widest range, reaching about 90% of the population. This government-owned station operates three national TV networks and one satellite network, as well as one radio station. In 2004, there were about 150 local radio and television stations registered in the country. In 2003, there were an estimated 205 radios for every 1,000 people. The number of television sets was unavailable in the same survey. In 2003, there were 100,000 Internet subscribers in the country.

Several daily newspapers are published in Skopje, as well as a number of periodicals. Newspapers in Albanian and a Turkish language paper are available nationally and subsidized by the government, including the Albanian-language Flaka e Vlazermit(Flame of Brotherhood ) and the Turkish language Birlik. In 1994 Delo, a new weekly with reportedly nationalistic leanings, began publication. As of 2002, the leading newspapers were Nova Makedonia (circulation 25,000) and Vecer (29,200).

The constitution forbids censorship and the government is said to respect this in practice. However, the government has restricted certain parts of the media during civil conflicts.

ORGANIZATIONS

The Chamber of Economy of Macedonia coordinates trade and commerce with the world.

The Macedonian Academy of Science, founded in 1967, coordinates and finances scientific research conducted in Macedonia. Macedonian Medical Association promotes research and education on health issues and works to establish common policies and standards in healthcare. There are several other associations dedicated to research and education for specific fields of medicine and particular diseases and conditions. There are professional associations representing other fields as well.

There are youth organizations affiliated with major political parties. There is also an active scouting association. The National Student Union of Macedonia is an umbrella organization representing youth groups involved in cultural, educational, and social activities. National women's organizations include Journalism About Women's and Children's Rights and Environment in Macedonia and the Union of Women's Organizations of the Republic of Macedonia.

There are national chapters of the Red Cross Society, Caritas, and Habitat for Humanity.

TOURISM, TRAVEL, AND RECREATION

Macedonia has very modest levels of tourist activity. Medieval monasteries and Orthodox churches are primary attractions. Turkish baths and bazaars can also be found. In the winter tourists are attracted to Popova Shapka, one of the most popular ski resorts in Macedonia. The city of Mavrovo, home to the Mavrovo National Park, has over 140 different bird species and over 45 different species of other animals making it attractive to hunters worldwide. The ski resorts, monasteries, and beautiful topography make Mavrovo one of the most visited cities in Macedonia. In 2000, there were about 224,000 tourist arrivals and tourism receipts totaled $37 million. The 6,636 hotel rooms had an occupancy rate of only 15% that year. A valid passport is required for entry into Macedonia. A visa is not required for tourist/business stays of up to 90 days.

In 2005, the US Department of State estimated the daily cost of staying in Macedonia at $230.

FAMOUS MACEDONIANS

Kiro Gligorov (b.1917) was president of Macedonia from 1991 to 1999. Boris Trajkovski (1956–2004) was president from 1999 to 2004. Trajovski died in a plane crash and was succeeded by Branko Crvenkovski (b.1962). Mother Teresa (Agnes Gonxha Bojaxhiu, 1910–1997) was from Skopje but left at age 17 to join a convent in Calcutta, India. In 1948, Mother Teresa left the convent to found the Missionaries of Charity. She won the Nobel Peace Prize in 1979.

Phillip II (382 bc–336 bc) was the father of Alexander the Great. During Philip II's reign of 359–336 bc, he established a federal system of Greek States. Macedonian Alexander the Great (356 bc–323 bc) founded an enormous empire that extended from Greece to northern India. Cassandar (353 bc–297 bc) succeeded Alexander the Great, and was king of Macedonia between 316 bc and 297 bc. To consolidate his power, Cassandar murdered Alexander's mother, widow, and son. Philip V (237 bc–179 bc) warred against the Romans and tried to rebuild the kingdom.

DEPENDENCIES

Macedonia has no territories or colonies.

BIBLIOGRAPHY

Ackermann, Alice. Making Peace Prevail: Preventing Violent Conflict in Macedonia. Syracuse, N.Y.: Syracuse University Press, 2000.

Allcock, John B. Explaining Yugoslavia. New York: Columbia University Press, 2000.

Civil-Military Relations in the Soviet and Yugoslav Successor States. Boulder, Colo.: Westview Press, 1996.

Danforth, Loring M. The Macedonian Conflict: Ethnic Nationalism in a Transnational World. Princeton, N.J.: Princeton University Press, 1995.

Frucht, Richard (ed.). Eastern Europe: An Introduction to the People, Lands, and Culture. Santa Barbara, Calif.: ABC-CLIO, 2005.

Generation in Jeopardy: Children in Central and Eastern Europe and the Former Soviet Union. Armonk, N.Y.: M. E. Sharpe, 1999.

Georgieva, Valentina and Sasha Konechni. Historical Dictionary of the Republic of Macedonia. Lanham, Md.: Scarecrow, 1998.

Pearson, Brenda. Putting Peace into Practice: Can Macedonia's New Government Meet the Challenge? Washington, D.C.: U.S. Institute of Peace, 2002.

Phillips, John. Macedonia: Warlords and Rebels in the Balkans. London: I. B. Tauris, 2002.

Poulton, Hugh. Who Are the Macedonians? Bloomington, Ind.: Indiana University Press, 1995.

Shea, John. Macedonia and Greece: The Struggle to Define a New Balkan Nation. Jefferson, N.C.: McFarland, 1997.

Vacalopoulos, Apostolos E. Contemporary Ethnological Problems in the Balkans. Thessaloniki: Society for Macedonian Studies, 1991.

MACEDONIA

Compiled from the December 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Macedonia

The United States and the United Nations officially refer to Macedonia by its provisional name, "The Former Yugoslav Republic of Macedonia," pending the outcome of UN-mediated negotiations between Macedonia and Greece.

PROFILE

Geography

Area: 25,713 square km. (slightly larger than Vermont).

Cities: (2001 est.) Capital—Skopje 600,000; Tetovo, Kumanovo, Gostivar and Bitola 100,000+.

Geography: Situated in the southern region of the Balkan Peninsula, Macedonia is landlocked and mountainous.

Climate: Three climatic types overlap—Mediterranean; moderately continental; and mountainous, producing hot, dry summers and cold, snowy winters.

People

Population: (2002) 2,063,122.

Growth rate: (2003 est.) 0.4%.

Ethnic groups: (2002) Macedonian 64.18%, Albanian 25.17%, Turkish 3.85%, Roma 2.66%, Serb 1.78%.

Religions: Eastern Orthodox 65%, Muslim 29%, Catholic 4% and others 2%.

Languages: Macedonian 70%, Albanian 21%, Turkish 3%, Serbo-Croatian 3%, and others 3%.

Education: Years compulsory—8. Literacy—94.6%.

Health: (2001 est.) Infant mortality rate—12.95 deaths/per 1,000 live births. Life expectancy—males 71.79 years; females 76.43 years.

Work force: (2003) 860,976; employed 545,108: services—32.6%; industry and commerce—45.4%; agriculture—22.0%.

Government

Type: Parliamentary democracy.

Constitution: Adopted November 17, 1991; effective November 20, 1991.

Independence: September 8, 1991 (from Yugoslavia).

Branches: Executive—prime minister (head of government), council of ministers (cabinet), president (head of state). Legislative—unicameral parliament or Sobranie (120 members elected by popular vote to 4-year terms from party lists based on the percentage parties gain of the overall vote in each of the six election units). Judicial—Supreme Court, Republican Judicial Council, Constitutional Court of the Republic of Macedonia, Public Prosecutor's Office, Public Attorney. Legal system is based on civil law system; judicial review of legislative acts.

Administrative subdivisions: 123 opstini (municipalities) plus the city of Skopje (implementation of legislation to reduce the number of municipalities to 84 will begin in January 2005).

Suffrage: Universal at age 18.

Political parties: Social-Democratic Union of Macedonia (SDSM); Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity (VMRODPMNE); Democratic Union for Integration (DUI); Democratic Party of Albanians (DPA); Party for Democratic Prosperity (PDP); National Democratic Party (NDP); Liberal-Democratic Party (LDP); Socialist Party of Macedonia (SPM); Liberal Party (LP); Democratic Alternative (DA); Democratic Union (DU); Democratic Party of the Turks in Macedonia (DPTM); Democratic League of Bosniaks; Democratic Party of Serbs in Macedonia, United Party of Romas in Macedonia; Democratic Union of Vlachs from Macedonia; Labor-Agricultural Party of Macedonia, Socialist-Christian Party of Macedonia; Green Party of Macedonia.

Economy (2003)

GDP: $4,036 billion.

Per capita GDP: $2,192 (est.).

Real GDP growth: 3.1%.

Inflation rate: 1.2%.

Unemployment rate: 36.7%.

Trade: Significant exports—steel, textile products, coal, chromium, lead, zinc, nickel, tobacco, lamb, and wine.

Official exchange rate: (2004 avg.) 48.5 Macedonian denars =U.S.$1.

GEOGRAPHY

Macedonia is located in the heart of south central Europe. It shares a border with Greece to the south, Bulgaria to the east, Serbia and Montenegro (Serbia and Kosovo) to the north, and Albania to the west. The country is 80% mountainous, rising to its highest point at Mt. Korab (peak 2,764 m).

PEOPLE

Since the end of the Second World War, Macedonia's population has grown steadily, with the greatest increases occurring in the ethnic Albanian community. From 1953 through the time of the latest official census in 2002 (initial official results were released December 2003), the percentage of Albanians living in Macedonia rose 313%. The western part of the country, where most ethnic Albanians live, is the most heavily populated, with approximately 40% of the total population. Due to population growth and as part of former communist industrial policy, more people have moved into the cities in search of employment. Macedonia also experienced sustained high rates of emigration.

HISTORY

Throughout its history, the present-day territory of Macedonia has been a crossroads for both traders and conquerors moving between the European continent and Asia Minor. Each of these transiting powers left its mark upon the region, giving rise to a rich and varied cultural and historical tradition.

The ancient territory of Macedon included, in addition to the areas of the present-day Macedonia, large parts of present-day northern Greece and southwestern Bulgaria. This ancient kingdom reached its height during the reign of Alexander III ("the Great"), who extended Macedon's influence over most of Asia Minor, the Levant, Egypt, Mesopotamia, Persia, and even parts of India. After Alexander's death in 323 BC, the Macedon Empire gradually declined, until Rome conquered it in 168 BC and made it a province in 148 BC.

After the fall of the Western Roman Empire, the territory of Macedonia fell under the control of the Byzantine Empire in the 6th and 7th centuries. It was during this period that large groups of Slavic people migrated to the Balkan region. The Serbs, Bulgarians, and Byzantines fought for control of Macedonia until the late 14th century, when the Ottoman Turks conquered the territory; it remained under Turkish rule until 1912.

After more than four centuries of rule, Ottoman power in the region began to wane, and by the middle of the 19th century, Greece, Bulgaria, and Serbia were competing for influence in the territory. During this time, a nationalist movement emerged and grew in Macedonia. The latter half of the 19th century was marked by sporadic nationalist uprisings, culminating in the Ilinden Uprising of August 2, 1903. Macedonian revolutionaries liberated the town of Krushevo and established the short-lived Republic of Krushevo, which was put down by Ottoman forces after 10 days. Following Ottoman Turkey's defeat by the allied Balkan countries—Bulgaria, Serbia, Montenegro, and Greece—during the First Balkan War in autumn 1912, the same allies fought the Second Balkan War over the division of Macedonia. The August 1913 Treaty of Bucharest ended this conflict by dividing the territory between Bulgaria, Greece, and Serbia. The 1919 Treaty of Versailles sanctioned partitioning Macedonia between The Kingdom of Serbs, Croats and Slovenes, Bulgaria, and Greece. In the wake of the First World War, Vardarian Macedonia (the present day area of Macedonia) was incorporated into the newly formed Kingdom of Serbs, Croats, and Slovenes.

Throughout much of the Second World War, Bulgaria and Italy occupied Macedonia. Many people joined partisan movements during this time and succeeded in liberating the region in late 1944. Following the war, Macedonia became one of the constituent republics of the new Socialist Federal Republic of Yugoslavia under Marshall Tito. During this period, Macedonian culture and language flourished.

As communism fell throughout Eastern Europe in the late 20th century, Macedonia followed its other federation partners and declared its independence from Yugoslavia in late 1991. The new Macedonian constitution took effect November 20, 1991 and called for a system of government based on a parliamentary democracy. The first democratically elected coalition government was led by Prime Minister Branko Crvenkovski of the Social Democratic Union of Macedonia (SDSM) and included the ethnic Albanian Party for Democratic Prosperity (PDP). Kiro Gligorov became the first President of an independent Macedonia.

President Gligorov was the first president of a former Yugoslav republic to relinquish office. In accordance with the terms of the Macedonian constitution, his presidency ended in November 1999 after 8 years in office, which included surviving a car bombing assassination attempt in 1995. He was succeeded by former Deputy Foreign Minister Boris Trajkovski (VMRO), who defeated Tito Petkovski (SDSM) in a second-round run-off election for the presidency November 14, 1999. Trajkovski's election was confirmed by a December 5, 1999 partial re-vote in 230 polling stations, which the Macedonian Supreme Court mandated due to election irregularities.

Macedonia was the only republic of the former Yugoslavia whose secession in 1991 was not clouded by ethnic or other armed conflict, although the ethnic Albanian population declined to participate in the referendum on independence. During the Yugoslav period, Macedonian ethnic identity exhibited itself, in that most of Macedonia's Slavic population identified themselves as Macedonians, while several minority groups, in particular ethnic

Albanians, sought to retain their own distinct political culture and language. Although interethnic tensions simmered under Yugoslav authority and during the first decade of its independence, the country avoided ethnically motivated conflict until several years after independence.

In November 1998 parliamentary elections, the SDSM lost its majority. A new coalition government emerged under the leadership of Prime Minister Ljubco Georgievski of the Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity (VMRODPMNE). The initial coalition included the ethnic Albanian Democratic Party of Albanians (DPA).

Ethnic minority grievances, which had erupted on occasion (1995 and 1997), rapidly began to gain political currency in late 2000, leading many in the ethnic Albanian community in Macedonia to question their minority protection under, and participation in, the government. Tensions erupted into open hostilities in Macedonia in February 2001, when a group of ethnic Albanians near the Kosovo border carried out armed provocations that soon escalated into an insurgency. Purporting to fight for greater civil rights for ethnic Albanians in Macedonia, the group seized territory and launched attacks against government forces. Many observers ascribed other motives to the so-called National Liberation Army (NLA), including support for criminality and the assertion of political control over affected areas. The insurgency spread through northern and western Macedonia during the first half of 2001. Under international mediation, a cease-fire was brokered in July 2001, and the government coalition was expanded in July 2001 to include the major opposition parties.

The expanded coalition of ruling ethnic Macedonian and ethnic Albanian political leaders, with facilitation by U.S. and European Union (EU) diplomats, negotiated and then signed the Ohrid Framework Agreement in August 2001, which brought an end to the fighting. The agreement called for implementation of constitutional and legislative changes, which lay the foundation for improved civil rights for minority groups. The Macedonian parliament adopted the constitutional changes outlined in the accord in November 2001. The grand coalition disbanded following the signing of the Ohrid Framework Agreement and the passage of new constitutional amendments. A coalition led by Prime Minister Georgievski, including DPA and several smaller parties, finished out the parliamentary term.

In September 2002 elections, an SDSM-led pre-election coalition won half of the 120 seats in parliament. Branko Crvenkovski was elected Prime Minister in coalition with the ethnic Albanian Democratic Union for Integration (DUI) party and the Liberal-Democratic Party (LDP).

On February 26, 2004 President Trajkovski died in a plane crash in Bosnia. Presidential elections were held April 14 and 28, 2004. Then-Prime Minister Branko Crvenkovski won the second round and was inaugurated President on May 12, 2004. The parliament confirmed Hari Kostov, former Interior Minister, as Prime Minister June 2, 2004. Prime Minister Kostov resigned November 15, 2004. On December 17, 2004, former Defense Minister Vlado Buckovski was confirmed by parliament as Prime Minister, maintaining the coalition with the ethnic Albanian Democratic Union for Integration (DUI) and the Liberal-Democratic (LDP) parties.

With international assistance, the current governing coalition has made significant strides toward implementation of remaining provisions of the Ohrid Framework Agreement, which is a precondition for Macedonia's eventual integration into Euro-Atlantic institutions. A referendum scheduled for November 7, 2004, which would have delayed completion of this process, failed, freeing the way for the government to complete Framework Agreement implementation.

GOVERNMENT AND POLITICAL CONDITIONS

The unicameral assembly (Sobranie) consists of 120 seats. Members are elected by popular vote from party lists, based on the percentage parties gain of the overall vote in each of six election districts of 20 seats each. Members of parliament have a 4-year mandate.

The prime minister is the head of government and is selected by the party or coalition that gains a majority of seats in parliament. The prime minister and other ministers must not be members of parliament.

The president represents Macedonia at home and abroad. He is the commander in chief of the armed forces of Macedonia and heads its Security Council. The president is elected by general, direct ballot and has a term of 5 years, with the right to one reelection.

General parliamentary elections were last held on September 15, 2002. Presidential elections were held April 14 and 28, 2004 to succeed President Trajkovski, who died in office in February 2004. Local elections will be held in 2005.

The court system consists of a Supreme Court, Constitutional Court, and local and appeals courts. The Republican Judicial Council is composed of 7 members elected by parliament for a period of 6 years with the right to one re-election; it governs the ethical conduct of judges and recommends to parliament the election of judges. The Supreme Court is the highest court in the country and is responsible for the equal administration of laws by all courts. Its judges are appointed by parliament without time limit. The Constitutional Court is responsible for the protection of constitutional and legal rights and for resolving conflicts of power between the three branches of government. Its 9 judges are appointed by parliament with a mandate of 9 years, without the possibility of re-election. An independent Public Prosecutor is appointed by parliament with a 6-year mandate.

Principal Government Officials

Last Updated: 12/17/04

President: Branko CRVENKOVSKI
Prime Minister: Vlado BUCKOVSKI
Dep. Prime Min. for Economic Policy: Minco JORDANOV
Dep. Prime Min. for European Integration: Radmila SEKERINSKA
Dep. Prime Min. for Framework Agreement Implementation: Musa XHAFERI
Dep. Prime Min. for Political Systems: Jovan MANASIEVSKI
Min. of Agriculture, Forestry, & Waterways: Sadulla DURAKU
Min. of Culture: Blagoj STEFANOVSKI
Min. of Defense: Jovan MANASIEVSKI
Min. of Economics: Fatmir BESIMI
Min. of Education & Science: Aziz POLLOZHANI
Min. of Environment: Zoran SAPURIC
Min. of Finance: Nikola POPOVSKI
Min. of Foreign Affairs: Ilinka MITREVA
Min. of Health: Vladimir DIMOV
Min. of the Interior: Ljubomir MIHAJLOVSKI
Min. of Justice: Meri MLADENOVSKA-GEORGIEVSKA
Min. of Labor & Social Welfare: Stevco JAKIMOVSKI
Min. of Local Government: Rizvan SULEJMANI
Min. of Transportation & Communications: Xhemali MEHAZI
Min. Without Portfolio: Vlado POPOVSKI
Min. Without Portfolio: Musa XHAFERI
Min. Without Portfolio: Radmila SEKERINSKA
Min. Without Portfolio: Minco JORDANOV
Speaker, Assembly: Ljubco JORDANOVSKI
Governor, Macedonian National Bank: Petar GOSEV
Ambassador to the US: Nikola DIMITROV
Charge d'Affaires to the UN, New York: Jon IVONOVSKI

The country maintains an embassy in the United States at 1101 30 Street, NW, Suite 302, Washington, DC 20007 (tel: (202) 337-3063; fax: (202) 337-3093).

ECONOMY

Macedonia is a small economy with a gross domestic product (GDP) of about $4.6 billion, representing about 0.01% of the total world output. It also is an open economy, highly integrated into international trade, with a total trade-to-GDP ratio of 79.5%. Agriculture and industry have been the two most important sectors of the economy, but the services sector came on strong in the past few years. All three sectors provide a limited number of high-quality finished products. Like most transition economies, problems persist, even as Macedonia takes steps toward reform. A largely obsolete industrial infrastructure has not seen much investment during the transition period. Work force education and skills are competitive, but without adequate jobs, many with the best skills seek employment abroad. A low standard of living and high unemployment rates prompt occasional social unrest.

Five years of continuous economic expansion in Macedonia was interrupted by the 2001 conflict, which led to a contraction of 4.5% in 2001, despite the government being able to hold inflation at a stable average 5.3%. In 2002, the economy struggled to recover, posting only 0.7% growth. Growth started to pick up in 2003, with real GDP reaching 3.1%. The external debt-to-GDP ratio in 2003 was 38.4%. The economy still has not been able to fully recover to its pre-2001 crisis level, and living standards still lag those of pre-independence. In 2004, real growth is projected to reach 2.5% with inflation of up to 2.8%. The United States is supporting Macedonia's transition to a democratic, secure, market-oriented society with substantial amounts of assistance.

Background

After the breakup of Yugoslavia in 1991, Macedonia, the former Yugoslavia's poorest republic, faced formidable economic challenges posed by both the transition to a market economy and a difficult regional situation. The breakup deprived Macedonia of key protected markets and large transfer payments from the central Yugoslav government. The war in nearby Bosnia, international sanctions on Serbia, and the neighboring Kosovo crisis in 1999 delivered successive shocks to Macedonia's trade-dependent economy. The government's painful but necessary structural reforms and macroeconomic stabilization program generated additional economic dislocation. Macedonia was especially hurt by the Greek trade embargo, imposed in February 1994 in a dispute over the country's name, flag, and constitution, and by international trade sanctions against Serbia that were not suspended until a month after conclusion of the Dayton Accords. As a result of these two border closures, 1995 GDP declined to 41% of its 1989 level.

Coincident to these problems, the country pursued an ambitious stabilization and reform program after independence. Despite external factors, the program yielded positive results through 1998 and won praise from the International Monetary Fund (IMF) and the World Bank. A robust financial austerity program stabilized the Macedonian denar and reduced the fiscal deficit. Inflation remained low for several years and was on average slightly negative in 1998 and 1999. Though economic growth suffered in the country's first 5 years of independence, a modest recovery was in progress—with 3.4% growth for 1998—until the Kosovo crisis.

Macedonia proved the most economically vulnerable of regional neighbors to the 1999 Kosovo conflict's spill-overs. At the height of the crisis, Macedonia sheltered more than 350,000 Kosovar refugees, straining fiscal accounts and increasing social pressures. Per capita foreign direct investment (FDI), already the lowest in the region, worsened as investors lost confidence. With unemployment around 33%, the crisis exacerbated economic privation.

Before the Kosovo crisis, up to 70% of the country's economy had been dependent on inputs from, exports to, or transport through the then-Federal Republic of Yugoslavia (FRY). At the height of the crisis, total exports had fallen to about 75% of the 1998 level. Exports to the FRY were down by about 80%. Exports that had previously transited the FRY (one-half of total exports) were hurt, as alternative transit routes through Bulgaria, Romania, and Greece increased transportation costs and delivery times, making Macedonian products less competitive. Export-processing contracts with other countries suffered cancellations over concerns about delivery risks.

Despite the impact of the Kosovo crisis on Macedonia's economy, marketing efforts were reoriented, new markets were identified and exploited, and the Kosovo market reopened in mid-summer 1999. A May 1999 international donors conference projected contraction of Macedonia's economy of around 5%—a swing of 10 percentage points from pre-conflict projections of 5% growth. However, these projections assumed the Kosovo conflict would continue through the end of the year. Early termination of the conflict in June led to an economic rebound and growth of around 2.7% in real terms for 1999.

Macedonia rescheduled its Paris Club debt in 1995, and again in early 1999, including $93 million of debt, interest, and arrears to the United States. The Kosovo crisis led to an appeal to have debt forgiven or deferred. A Paris Club agreement to defer Macedonian debt service ran out April 2000. Paris Club creditors agreed that repayment terms for amounts deferred during the Kosovo crisis would be set at 5 years, with 1 year as grace.

At the beginning of 2001, Macedonia's economic situation appeared to be improving, with visible signs of increased activity and dynamism, but with the start of the ethnic Albanian insurgency in Macedonia, the country's solid macroeconomic performance in 2000 and the beginning of 2001 began to slide and remained substantially depressed in 2001. Real GDP declined by 4.5% in 2001, as output deteriorated in most sectors. Inflation averaged 5.5% instead of the initially projected 2.2%. Current account deficit in the balance of payments was around 10.1% of GDP, down from an expected surplus of 1%, while the central government budget deficit reached 5.8%. From January through September 2001 the country lost around $200 million of its foreign currency reserves defending the targeted level of the denar against the German mark. Foreign direct investments, credits, grants, and donations declined when the insurgency began, and Macedonia's IMF program went off-track. The IMF and the Government of Macedonia agreed to a 6-month staff-monitored program, beginning January 1, 2002, but government decisions to reimburse depositors of a 1997 failed pyramid scheme and a general wage bill increase in public administration were seen as a threat to a viable budget expenditures policy, posing an obstacle to continuation of the staff-monitoring program and negotiations on a stand-by arrangement. Discussions between the IMF and the new government on a new agreement resumed in November 2002, and a new stand-by arrangement was signed in February 2003 and approved April 30, 2003.

The impact of the 2001 crisis, lower international demand for Macedonian products, canceled contracts in the textile and iron and steel industry, as well as the drought in 2001 affected Macedonia's growth prospects and foreign trade in 2002. Although Macedonia had been scheduled to graduate from International Development Association (IDA) financing in 2001, the World Bank provided $15 million in emergency economic assistance to finance critical imports for the private sector. Real GDP in 2002 grew by 0.3% on annual basis in spite of subdued inflation. The Consumer Price Index-based inflation in 2002 was 1.8%. Declining industrial output adversely affected foreign trade, with exports dropping by 3.7% and imports rising by 16.3%, resulting in a trade deficit of 23% of GDP. The current account deficit in 2002 was 8.8% of GDP. An international donors conference, organized by the World Bank and the European Commission, was held March 12, 2002, in Brussels, at which donors pledged $275 million to assist in covering the projected budget gap, implementing Framework Agreement reforms, and re-energizing the Macedonian economy. Donors also pledged an additional $244 million for general economic development in 2002, outside of the pledge categories defined by the World Bank and European Commission.

Most donor money came in 2003, rewarding the disciplined fiscal policy and stable monetary policy. The IMF signed a Stand-By Arrangement (SBA) with the Macedonian Government worth $27 million. In 2003, real GDP grew by 3.1%, mainly driven by the re-opening of a few loss-makers and strong exports given favorable prices on world markets. The consumer price index (CPI)-based inflation remained very low at 1.2%. The official unemployment rate climbed to 36.7% in 2003. A restrictive fiscal policy under the IMF program brought the budget deficit down to 1.1% of GDP, providing room for a relaxation of monetary policy, which resulted in lower interest rates. Although exports grew faster than imports compared to 2002, the trade deficit in 2003 remained large at 20.3% of GDP, while the current account deficit stabilized at 6% of GDP. External debt stood at 38.4% of GDP.

Currently, Macedonia is undertaking reforms in its economic and political systems, with the goal of boosting economic growth and attracting increased levels of foreign investment. Macedonia recently passed a progressive trade companies law, which should ease impediments to foreign investment, along with tax and investment incentives. Though concerns stemming from the 2001 conflict linger, the internationally mediated Framework Agreement is being implemented, and Macedonia's political and security situation has stabilized, allowing the government to refocus energies on domestic reforms. Fiscal consolidation, low inflation, and a fall in interest rates indicate good potential for an eventual recovery of the economy. Political and security normalization, macro-economic stability, and fiscal discipline are providing a foundation for higher growth rates. The Macedonian Government's main economic policy goals remain to attract foreign investments, to increase employment and to reduce poverty. It has pledged to undertake measures to maintain fiscal discipline and to reduce interest rates even further. Developing the Small and Medium-Size Enterprise (SME) sector and intensifying structural reforms also are high on the government's list of priorities. The Government's progress on structural economic reforms slowed in 2004 as the country faced a series of challenges—the death of President Trajkovski, resulting in early presidential elections, a contentious debate over Framework Agreement-mandated decentralization legislation, and most recently a referendum on municipal boundaries, which took place November 7, 2004. Industrial output fell during the first half of 2004, forcing a downward revision in annual GDP growth estimates from 4 to 2.5%. Macedonian authorities and the IMF are discussing a follow-on to the Stand-By-Arrangement, which ended mid-2004.

Macedonia is committed to pursuing membership in European and global economic structures. It was officially accepted as a member of the World Trade Organization (WTO) on October 15, 2002. Parliament ratified the agreement in January 2003, clearing the way for Macedonia to become a full member in March 2003. Following a 1997 cooperation agreement with the European Union (EU), Macedonia signed a Stabilization and Association Agreement with the EU in April 2001, giving Macedonia duty-free access to European markets. After ratification in parliaments of all EU member countries, the agreement went into force on April 2, 2004.

Trade

Macedonia's foreign trade balance has been in deficit since 1994, and is expected to widen in 2004 to an estimated $745 million, or 14.9% of GDP. Total 2003 trade was $3.66 billion, or 79.5% of GDP—imports plus exports of goods and services. Macedonia's major trading partners are Serbia and Montenegro, Germany, and Greece. The United States is Macedonia's seventh-largest trading partner. In 2003, U.S.-Macedonia trade in goods totaled $129.1 million. According to Macedonian trade data, U.S. exports accounted for 2.4% of Macedonia's total imports. U.S. meat, mainly poultry, and electrical machinery have been particularly attractive to Macedonian importers. Principal Macedonian exports to the United States are tobacco, apparel, footwear, and iron and steel.

Macedonia has signed Free Trade Agreements with Albania, Bosnia and Herzegovina, Serbia and Montenegro, Bulgaria, Croatia, Ukraine, Slovenia, Turkey, and the European Free Trade Association countries, and is currently in the early stages of negotiating an agreement with Kosovo.

DEFENSE

Macedonia established its armed forces following independence and the complete withdrawal of the Yugoslav National Army (JNA) in March 1992. The Macedonian Armed Forces consist of an army, navy, air and air defense force, and a police force (under the Ministry of Interior). Under its North Atlantic Treaty Organization (NATO) Membership Action Plan, Macedonia has launched a major effort to reform and reconstruct its armed forces with the goal of building and sustaining a modern, professional defense force of about 12,000 troops.

Since its independence in 1991, Macedonia has worked toward increased ties with the transatlantic community. Despite the fragile political, economic, and military situation in the region over the past decade, Macedonia has provided consistent support for NATO. Macedonia is engaged in military, economic, and political reforms to enhance its security and NATO candidacy, although the security crisis of 2001 represented a setback to those efforts. The Government of Macedonia plans to assume greater responsibility for its share of ensuring the security of the region without reliance on an international military presence. Successive Macedonian governments have viewed integration into Euro-Atlantic political, economic, and security institutions as the country's primary foreign policy goal. In pursuit of these goals, Macedonia is restructuring its military to be smaller, more affordable, defensively oriented, and interoperable with NATO. The Macedonian Government has welcomed close cooperation with the U.S. military and seeks to deepen this relationship as it restructures its forces.

The UN Preventive Deployment Force (UNPREDEP) in Macedonia patrolled the borders with Serbia and Albania from 1992 to November 1998, enhancing Macedonian stability. In early December 1998, the Macedonian Government approved local basing of the NATO Extraction Force (XFOR) and the Kosovo Verification Coordination Cell (KVCC), in anticipation of a political resolution of the Kosovo crisis, also contributing to Macedonia's safety and stability. Prior to the bombing campaign in Yugoslavia in March 1999, the number of NATO troops in Macedonia peaked at 17,000.

In the wake of the 2001 insurgency in Macedonia, at the government's request, NATO deployed Task Forces "Essential Harvest," then "Amber Fox," and later "Allied Harmony" in Macedonia in confidence-building tasks and protection for Organization for Security and Cooperation in Europe (OSCE) monitors in the former conflict area. Task Force Essential Harvest collected more than 4,000 weapons from the National Liberation Army (NLA) in a confidence-building effort to restore stability within Macedonia. "Amber Fox" (June through December 2002) and its smaller successor "Allied Harmony" (January to March 2003) worked with Macedonian security forces to ensure the safety of international monitors overseeing Framework Agreement implementation in Macedonia. On March 31, 2003, the EU (EUFOR) took over this role from NATO with the launch of "Operation Concordia," which ended December 15, 2003. At the Macedonian Government's request, the EU established a Police Advisory Mission in Macedonia in December 2003 to assist the country's police reforms.

Macedonia continues to play an indispensable role as the Kosovo Force's (KFOR) rear area, hosting the logistical supply line for KFOR troops in Kosovo. As part of these efforts, Macedonia hosts about 150 NATO troops, including U.S. troops, in support of NATO operations in Kosovo and assisting Macedonia's efforts to reform its military to meet NATO standards. Due to improvements in the security situation and U.S. KFOR drawdowns in Kosovo, the United States closed its Camp Able Sentry base in Macedonia in December 2002. Close U.S.-Macedonian bilateral defense cooperation continues.

FOREIGN RELATIONS

In February 1994, Greece imposed a trade embargo on Macedonia due to disputes over the use of the name "Macedonia" and other issues. Greece and Macedonia signed an interim accord in October 1995 ending the embargo and opening the way to diplomatic recognition and increased trade. After signing the agreement with Greece, Macedonia joined the Council of Europe, the Organization for Security and Cooperation in Europe (OSCE), and NATO's Partnership for Peace (PfP). Athens and Skopje began talks on the name issue in New York under UN auspices in December 1995, opening liaison offices in respective capitals January 1996. These talks continue.

The stability of the young state was gravely tested during the 1999 Kosovo crisis, when Macedonia temporarily hosted about 360,000 refugees from the violence and ethnic cleansing in Kosovo, as Serb atrocities against Kosovar Albanians and other minority groups caused a mass exodus. The refugee influx put significant stress on Macedonia's weak social infrastructure. With the help of NATO and the international community, Macedonia ultimately was able to accommodate the influx. Following the resolution of the conflict, the overwhelming majority of refugees returned to Kosovo. The Macedonian Government demonstrated a strong commitment to regional stability as an essential partner during the Kosovo crisis.

In addition to improving relations with its neighbors, Macedonia has made strides toward European and international integration, especially with the EU and NATO. Macedonia is an active participant in NATO's Partnership for Peace and Membership Action Plan, the OSCE, and United Nations, and was accepted as a member of the World Trade Organization (WTO) in October 2002. In 1999, the EU agreed to develop a Stabilization and Association Agreement (SAA) with Macedonia; negotiations with Macedonia were launched April 5, 2000. The SAA was signed April 2001 and came into force in April 2004. Its trade and trade-related provisions have been in force since June 2001. For Macedonia to successfully integrate within the global arena, continued efforts to strengthen its multiethnic civil society institutions, to develop measures to promote economic growth and investment, and to foster strong indigenous non-governmental organizations are necessary.

U.S.-MACEDONIAN RELATIONS

The United States and Macedonia have enjoyed good bilateral relations since Macedonia gained its independence in 1991. The United States formally recognized Macedonia on February 8, 1994, and the two countries established full diplomatic relations on September 13, 1995. The U.S. Liaison Office was upgraded to an Embassy in February 1996, and the first U.S. Ambassador to Skopje arrived in July 1996. The development of political relations between the United States and Macedonia has ushered in a whole host of other contacts between the two states.

During the 1999 Kosovo crisis, Macedonia played a key role in facilitating U.S. and international efforts in the region by accepting hundreds of thousands of refugees, served as a launching pad for allied military efforts, and functioned as the long-term conduit for humanitarian assistance programs and military logistics for Kosovo. The United States, together with its European allies, strongly condemned the initiators of the 2001 insurgency in Macedonia and closely supported the government and major parties' successful efforts to forge a peaceful, political solution to the crisis through the Ohrid Framework Agreement. In partnership with the EU and other international organizations active in Macedonia, the United States is facilitating the Macedonian Government's implementation of the Framework Agreement and fostering long-term peace and stability in the country. Macedonia continues to make an important contribution to regional stability by facilitating the logistical supply of NATO (including U.S.) peacekeepers in Kosovo.

Today, Macedonia and the United States enjoy a cooperative relationship across a broad range of political, economic, cultural, military, and social issues. The United States supports Macedonia's aspirations to build a democratically secure and market-oriented society, and has donated large amounts of foreign assistance for military reform, democracy and economic reform, and humanitarian relief efforts. The United States pledged $6 million in debt relief and $22 million in Economic Support Funds to Macedonia in 1999 to help offset the strains of the Kosovo crisis. The United States provided an estimated $35 million to Macedonia to help host communities cope with refugee inflows. In addition, the United States helped reduce the refugee impact on Macedonia by resettling in the United States more than 13,000 persons through the Humanitarian Evacuation Program. Bilateral assistance provided to Macedonia under the Southeast Europe Economic Development (SEED) Act totaled over $378 million from 1990 to 2003, including budget support and other assistance to help Macedonia recover from the 2001 crisis. Macedonia will have received $39 million in 2004.

The U.S. Agency for International Development's (USAID) development program in Macedonia targets four goals: accelerating economic growth and private sector development; strengthening democratic institutions; mitigating adverse impacts of market economic transition; and supporting cross-cutting and special initiatives. USAID provides assistance to Macedonian enterprises through a business resource center, credit and equity mechanisms, trade and investment facilitation, and other programs. In 2002 and 2003, USAID's Office of Transition Initiatives through a small grants program helped mitigate conflict and strengthen relations between diverse groups of peoples by bringing them together to identify and address common needs. A competitiveness initiative is identifying constraints to economic growth and strategies for export promotion. USAID legal advisers helped reform taxation, banking, bankruptcy, and monopoly regulations and assisted with Macedonia's accession to the WTO. Programs are helping to build the capacity of municipal governments to better serve the public and to advance the decentralization of power to municipalities under the Framework Agreement.

USAID assistance helps strengthen Macedonia's non-governmental organization (NGO) networks, bolster media professionalism, further legal system reforms, and increase public confidence and participation in the democratic process and institutions. Activities address the quality of education and work force development, through support for the private, accredited South East Europe University and primary and secondary education reforms to meet employer needs and market requirement in the 21st century. USAID efforts encourage job creation, especially for youth, expand markets for Macedonian artisans, and improve cooperation between municipalities and the private sector. USAID also is addressing cross-cutting issues such as ethnic cooperation, gender-based problems and disparities, youth, corruption, HIV/AIDS, and conflict mitigation.

Principal U.S. Embassy Officials

SKOPJE (E) Address: Bul Ilinden bb, 1000 Skopje; Phone: 389-2-311-6180; Fax: 389-2-311-7103; INMARSAT Tel: 871-761-836-255; Work-week: Mon-Fri 0800-1700; Website:

TRAVEL

Consular Information Sheet

October 22, 2004

Country Description: Macedonia is a developing nation undergoing economic change. Conditions in tourist facilities vary considerably and may not be up to western standards.

Entry/Exit Requirements: U.S. citizens need a passport to enter Macedonia. A visa for Macedonia is not required for tourist/business purposes for stays up to 90 days. For stays longer than 90 days, American citizens need to obtain the appropriate visa at a Macedonian Embassy or Consulate prior to their trip. Additional information on entry requirements may be obtained from the Macedonian Embassy at 1101 30 th St. NW, Suite 302, Washington, D.C., 20007, telephone (202) 337-3063, fax (202) 337-3093, e-mail rmacedonia@aol.com, or the Macedonian Consulate General in Detroit, 2000 Town center, Suite 1130, Southfield, MI 48075, telephone (248) 354-5537, fax (248) 354-5538.

Foreigners, including American citizens, who enter Macedonia and will stay in private accommodations, are required to register with the nearest police station within three days. Foreigners staying in hotels are not required to register, as the hotel is responsible for registration with the police. Persons who overstay their visas should contact the Ministry of Interior in Skopje to obtain an exit visa; failure to do so may result in difficulties in departing the country.

Travelers should be aware that all immediate border areas apart from designated border crossings are military restricted zones. Presence in these zones is forbidden without prior official permission.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Safety and Security: While the security situation in Macedonia has stabilized, occasional inter-ethnic and criminal violence remains a concern. The overall number of security incidents has diminished significantly since 2001. Travelers should be alert for unusual behavior and other possible indicators that something out of the ordinary is in progress. Acts of intimidation and violence against American citizens have not occurred recently but remain possible.

Americans should avoid demonstrations and other sites, such as roadblocks, where large crowds are gathered, particularly those involving political causes or striking workers.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where current Worldwide Caution Public Announcements, Travel Warnings and Public Announcements can be found. Up to date information on security conditions can also be obtained by calling 1-800-407-4747 toll free in the U.S. or, for callers outside the U.S. and Canada, a regular toll line at 1-317-472-2328. These numbers are available from 8:00a.m. to 8:00p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

The Department of State urges American citizens to take responsibility for their own personal security while traveling overseas. For general information about appropriate measures travelers can take to protect themselves in an overseas environment, see the Department of State's pamphlet: A Safe Trip Abroad.

Crime: Crime in Macedonia is low by U.S. standards; however, incidents of theft and other petty crimes do occur, and travelers should take the same precautions they would take in any unfamiliar environment. Criminal inter-gang rivalries and individuals associated with organized crime, particularly in western Macedonia, have been the source of periodic violent confrontations resulting in serious injury and even death to innocent people.

The loss or theft of a U.S. passport should be reported immediately to the local police and the nearest U.S. embassy or consulate.

Information for Victims of Crime: If you are a victim of a crime while overseas, in addition to reporting to the local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and find an attorney if needed. See our information on Victims of Crime at http://travel.state.gov/travel/brochure_victim_assistance.html.

Medical Facilities and Health Information: Although Macedonian physicians are trained to a high standard, most hospitals and clinics are generally not equipped and maintained at U.S. or Western European standards. Basic medical supplies are available, but specialized treatment may not be obtainable. Travelers with previously diagnosed medical conditions may wish to consult their physician before travel.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Macedonia is provided for general reference only, and may not be totally accurate in a particular location or circumstance:

Driving safely in Macedonia requires good defensive driving skills. Drivers routinely ignore traffic regulations including driving through red lights and stop signs and turning left from the far right hand lane. These driving practices cause frequent traffic accidents. With a rate of 7.8 deaths per million kilometers driven, drivers, passengers and pedestrians in Macedonia are over seven times more likely to die from a traffic accident than if they were in the United States. Macedonia is currently one of the highest ranked countries in the world for per capital traffic related fatalities.

Driving is on the right side of the road. Speed limits are generally posted. Americans driving in Macedonia should possess a valid American driver's license and an International Driving Permit. Most major highways are in good repair, but secondary urban and rural roads are poorly maintained, often unlit and are used by horse-drawn carts and livestock. While driving, it is not unusual to come across dead animals, rocks, or objects that have fallen from trucks. Some vehicles are old and lack standard front or rear lights. Secondary mountain roads can be narrow, poorly marked, lack guard-rails and quickly become dangerous in inclement weather. Overall public transportation in Macedonia is dilapidated. Roadside emergency services are limited.

In case of emergency, drivers may contact the police at telephone 192, the Ambulance Service at telephone 194 and Roadside Assistance at telephone 196.

Please refer to our Road Safety page for more information or visit Macedonia's national tourist office website at: http://www.skopjetourism.org.

Special Circumstances: In addition to being subject to all Macedonian laws affecting U.S. citizens, dual U.S./Macedonian nationals may be subject to Macedonian laws that impose special obligations. Male Macedonian citizens are subject to compulsory military draft regulations. If such persons are found guilty of draft evasion in Macedonia – or draft evasion from the former Yugoslavia prior to 1991 – they are subject to prosecution by Macedonian authorities. Those who might be affected should inquire at a Macedonian Embassy or Consulate outside Macedonia regarding their status before travel.

Macedonian customs authorities may enforce strict regulations concerning temporary importation or export from Macedonia of certain items, including items deemed to be of historical value or significance. Taking photographs of anything that could be perceived as being of military or security interest may result in problems with authorities. If in doubt, please ask permission before taking photographs. Macedonia has a cash based economy. The local currency is the denar. Few establishments accept dollars, credit cars or travelers' checks.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Macedonian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use or trafficking in illegal drugs in Macedonia are severe and convicted offenders can expect long jail sentences and heavy fines. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at: http://www.travel.state.gov/family/index.html.

Registration/Embassy Location: Americans living or traveling in Macedonia are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website: https://travelregistration.state.gov/, and to obtain updated information on travel and security within Macedonia. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of an emergency. The U.S. Embassy is located at Ilindenska bb, 91000 Skopje, tel. (389) (2) 3116-180, fax (389) (2) 3213-767. Registration forms are available on the Embassy's website, located at: http://skopje.usembassy.gov.

International Adoption

January 2005

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family

Disclaimer: This document regarding the legal requirements on adoption of specific foreign countries is provided for general information only. Questions involving interpretation of specific foreign laws should be addressed to foreign legal counsel.

Availability of Children for Adoption: In general, the number of requests for adoption is significantly higher than the number of children available for adoption.

FY-1998: IR-3 immigrant visas issued to Macedonian orphans adopted abroad – 1, IR-4 immigrant visas issued to Macedonian orphans adopted in the U.S. – 0

FY-1999: IR-3 visas—1, IR-4 visas – 2
FY-2000: IR-3 visas—0, IR-4 visas – 2

* Please note: The American Embassy in Belgrade had jurisdiction over the Macedonian consular district until March 1999. Most Macedonian immigrant visas were issued in Belgrade*

Macedonian Adoption Authority: The office responsible for foreign adoptions in Macedonia is the Ministry of Labor and Social Affairs, whose address is: 14 Dame Gruev St.; Skopje 1000; Tel: 389-2-106-226.

The completion of the adoption case in Macedonia involves a choice of a name and place of birth within Macedonia for the child made by the adoptive parents. A birth certificate is then issued within 2-3 days and the names of the adoptive parents are listed in the birth certificate as biological parents. The next step is for the adoptive parents to apply for a Macedonian passport for their adopted child in order to apply for immigrant visa at the American Embassy in Skopje.

Parents should be aware that adopted children lose their Macedonian nationality once the adoption is completed.

Age and Civil Status Requirements: There are no age requirements or restrictions on who may adopt an infant from Macedonia.

Adoption Agencies and Attorneys: The Macedonian Ministry of Labor does not deal with any adoption agency or lawyer for foreign adoptions. The Ministry will only communicate directly with the adoptive parents.

Doctors: The U.S. Embassy maintains current lists of doctors and sources for medicines should either you or your child experience health problems while in Macedonia.

Documents Required for Adoption: The following documents are required by the Macedonian Ministry of Labor and Social Affairs:

• Home study conducted by U.S. authorities
• Certified Copy of a Birth Certificate for each parent (issued within the last 6 months);
• Certified Copy of the parent's Marriage Certificate (issued within the last 6 months);
• Medical certificate certifying good mental and physical condition for each parent;
• Certificate from a Office of Social Services from the parent's state of residence certifying that the adoptive parents were never deprived of their parental rights;
• A letter from the employer for each parent showing that they have a current employment;
• Notarized/authenticated Statement showing proof of adequate financial status sufficient to support a child;
• Request for adoption;
• Approved petition from the BCIS (Form I-171H);

Each parent should present a separate document from item 2 to 6. The documents must be translated in Macedonian, and certified by a licensed court translator.

U.S. Immigration Requirements: A Macedonian child adopted by an American citizen must obtain an immigrant visa before he or she can enter the U.S. as a lawful permanent resident. Please see the International Adoption section of this book for more details.

Macedonian Embassy and Consulate Office in the United States:

Embassy of the Former Yugoslav Republic of Macedonia
3050 K. Street NW, Suite 210
Washington, D.C. 20007
Tel: 202-337-3063; Fax: 202-337-3093

Consulate General of Former Yugoslav Republic of Macedonia
866 United Nations Plaza; Suite 4018
New York, NY 10017
Tel: 212-317-1727; Fax: 212-317-1484

U.S. Embassy in Macedonia:
U.S. Embassy Macedonia
Ilindenska, b.b.
1000 Skopje
Tel: 389-2-116-180;
Fax: 389-2-213-767

Questions: Any further questions regarding adoption of an infant from Macedonia may be addressed to the Consular Section of the U.S. Embassy in Macedonia. You may also contact the Office of Children's Issues, SA-29, 2201 C Street, NW, U.S. Department of State, Washington, DC 20520-2818, phone 1-888-407-4747 with specific questions.

Macedonia

Compiled from the October 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Republic of Macedonia

PROFILE

Geography

Area: 25,713 square km. (slightly larger than Vermont).

Cities: (2001 est.) Capital—Skopje 600,000; Tetovo, Kumanovo, Gostivar and Bitola 100,000+.

Geography: Situated in the southern region of the Balkan Peninsula, Macedonia is landlocked and mountainous.

Climate: Three climatic types overlap—Mediterranean; moderately continental; and mountainous, producing hot, dry summers and cold, snowy winters.

People

Population: (2006 est.) 2,042,894.

Growth rate: (2006 est.) 0.2%.

Ethnic groups: (2002) Macedonian 64.18%, Albanian 25.17%, Turkish 3.85%, Roma 2.66%, Serb 1.78%.

Religions: Eastern Orthodox 65%, Muslim 29%, Catholic 4% and others 2%.

Languages: Macedonian 70%, Albanian 21%, Turkish 3%, Serbo-Croatian 3%, and others 3%.

Education: Years compulsory—8. Literacy—94.6%.

Health: (2006 est.) Infant mortality rate—11.1 deaths/per 1,000 live births. Life expectancy—males 71.79 years; females 76.43 years. Labor force (2006) 903,576; employed 578,810: services—37.5%; industry and commerce—44.9%; agriculture—17.6%.

Government

Type: Parliamentary democracy.

Constitution: Adopted November 17, 1991; effective November 20, 1991. Amended January 6, 1992.

Independence: September 8, 1991 (from Yugoslavia).

Government branches: Executive—prime minister (head of government), council of ministers (cabinet), president (head of state). Legislative—unicameral parliament or Sobranie (120 members elected by popular vote to 4-year terms from party lists based on the percentage parties gain of the overall vote in each of six election units). Judicial—Supreme Court, State Judicial Council, Constitutional Court, Public Prosecutor's Office, Public Attorney. Legal system is based on civil law; judicial review of legislative acts.

Political subdivisions: 84 opstini (municipalities) plus the city of Sko-e.

Suffrage: Universal at age 18.

Political parties: Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity (VMRO-DPMNE); Social-Democratic Union of Macedonia (SDSM); Democratic Union for Integration (DUI); Democratic Part of Albanians (DPA); New Social Democratic Party (NSDP); Internal Mace-donian Revolutionary Organization-People's Party (VMRO-NP); Party for Democratic Prosperity (PDP); Democratic Renewal of Macedonia (DOM); National Democratic Party (NDP); Liberal-Democratic Party (LDP); Socialist Party of Macedonia (SPM); Liberal Party (LP); Democratic Alternative (DA); Democratic Union (DU); Democratic Party of the Turks in Macedonia (DPTM); Democratic League of Bosniaks; Democratic Party of Serbs in Macedonia, United Party of Romas in Macedonia; Democratic Union of Vlachs from Macedonia; Labor-Agricultural Party of Macedonia, Socialist-Christian Party of Macedonia.

Economy

GDP: (2006 est.) $6.215 billion.

Per capita GDP: (2006 est.) $3,042.

Real GDP growth: (2006 est.) 3.1%.

Annualized inflation rate: (2006) 3.2%.

Unemployment rate: (2006) 36.0%.

Trade: Significant exports—steel, textile products, chromium, lead, zinc, nickel, tobacco, lamb, and wine.

Exchange rate: (2005 avg.) 49.3 Macedonian denars = U.S.$1; (2006 avg.) 48.8 Macedonian denars = U.S.$1.

GEOGRAPHY

Macedonia is located in the heart of south central Europe. It shares a border with Greece to the south, Bulgaria to the east, Serbia (and Kosovo) to the north, and Albania to the west. The country is 80% mountainous, rising to its highest point at Mt. Korab (peak 2,764 m).

PEOPLE

Since the end of the Second World War, Macedonia's population has grown steadily, with the greatest increases occurring in the ethnic Albanian community. From 1953 through the time of the latest official census in 2002 (initial official results were released December 2003), the percentage of ethnic Albanians living in Macedonia rose threefold. The western part of the country, where most ethnic Albanians live, is the most heavily populated, with approximately 40% of the total population. As in many countries, people have moved into the cities in search of employment. Macedonia has also experienced sustained high rates of permanent or seasonal emigration.

HISTORY

Throughout its history, the present-day territory of Macedonia has been a crossroads for both traders and conquerors moving between the European continent and Asia Minor. Each of these transiting powers left its mark upon the region, giving rise to a rich and varied cultural and historical tradition.

After the fall of the Western Roman Empire, the territory of Macedonia fell under the control of the Byzantine Empire in the 6th and 7th centuries. It was during this period that large groups of Slavic people migrated to the Balkan region. The Ottoman Turks conquered the territory in the 15th century; it remained under Ottoman Turkish rule until 1912.

After more than four centuries of rule, Ottoman power in the region began to wane, and by the middle of the 19th century, Greece, Bulgaria, and Serbia were competing for influence in the territory. During this time, a nationalist movement emerged and grew in Macedonia. The latter half of the 19th century, and continuing into the early part of the 20th century, was marked by sporadic nationalist uprisings, culminating in the Ilinden Uprising of August 2, 1903. Macedonian revolutionaries liberated the town of Krushevo and established the short-lived Republic of Krushevo, which was put down by Ottoman forces after 10 days. Following Ottoman Turkey's defeat by the allied Balkan countries—Bulgaria, Serbia, Montenegro, and Greece—during the First Balkan War in autumn 1912, the same allies fought the Second Balkan War over the division of Macedonia. The August 1913 Treaty of Bucharest ended this conflict by dividing the territory between Bulgaria, Greece, and Serbia. The 1919 Treaty of Versailles sanctioned partitioning Macedonia between The Kingdom of Serbs, Croats and Slovenes, Bulgaria, and Greece. In the wake of the First World War, Vardar Macedonia (the present day area of the Republic of Macedonia) was incorporated into the newly formed Kingdom of Serbs, Croats, and Slovenes.

Throughout much of the Second World War, Bulgaria and Italy occupied Macedonia. Many people joined partisan movements during this time and succeeded in liberating the region in late 1944. Following the war, Macedonia became one of the constituent republics of the new Socialist Federal Republic of Yugoslavia under Marshall Tito. During this period, Macedonian culture and language flourished.

As communism fell throughout Eastern Europe in the late 20th century, Macedonia followed its other federation partners and declared its independence from Yugoslavia in late 1991. Macedonia was the only republic of the former Yugoslavia whose secession in 1991 was not clouded by ethnic or other armed conflict, although the ethnic Albanian population declined to participate in the referendum on independence. The new Macedonian constitution took effect November 20, 1991 and called for a system of government based on a parliamentary democracy. The first democratically elected coalition government was led by Prime Minister Branko Crvenkovski of the Social Democratic Union of Macedonia (SDSM) and included the ethnic Albanian Party for Democratic Prosperity (PDP). Kiro Gligorov became the first President of an independent Macedonia.

President Gligorov was the first president of a former Yugoslav republic to relinquish office. In accordance with the terms of the Macedonian constitution, his presidency ended in November 1999 after 8 years in office, which included surviving a car bombing assassination attempt in 1995. He was succeeded by former Deputy Foreign Minister Boris Trajkovski (VMRO-DPMNE), who defeated Tito Petkovski (SDSM) in a second-round run-off election for the presidency on November 14, 1999. Trajkovski's election was confirmed by a December 5, 1999 partial re-vote in 230 polling stations, which the Macedonian Supreme Court mandated due to election irregularities.

In November 1998 parliamentary elections, the SDSM lost its majority. A new coalition government emerged under the leadership of Prime Minister Ljubco Georgievski of the Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity (VMRO-DPMNE). The initial coalition included the ethnic Albanian Democratic Party of Albanians (DPA).

During the Yugoslav period, Macedonian ethnic identity was evident in that most of Macedonia's Slavic population identified themselves as Macedonians, while several minority groups, in particular ethnic Albanians, retained their own distinct political culture and language. Although interethnic tensions simmered under Yugoslav authority and during the first decade of its independence, the country avoided ethnically motivated conflict until several years after independence. Ethnic minority grievances, which had erupted on occasion (1995 and 1997), rapidly began to gain political currency in late 2000, leading many in the ethnic Albanian community in Macedonia to question their minority protection under, and participation in, the government. Tensions erupted into open hostilities in Macedonia in February 2001, when a group of ethnic Albanians near the Kosovo border carried out armed provocations that soon escalated into an insurgency. Purporting to fight for greater civil rights for ethnic Albanians in Macedonia, the group seized territory and launched attacks against government forces. Many observers ascribed other motives to the so-called National Liberation Army (NLA), including support for criminality and the assertion of political control over affected areas. The insurgency spread through northern and western Macedonia during the first half of 2001. Under international mediation, a cease-fire was brokered in July 2001, and the government coalition was expanded in July 2001 to form a grand coalition which included the major opposition parties.

The expanded coalition of ruling ethnic Macedonian and ethnic Albanian political leaders, with facilitation by U.S. and European Union (EU) diplomats, negotiated and then signed the Ohrid Framework Agreement in August 2001, which brought an end to the fighting. The agreement called for implementation of constitutional and legislative changes, which lay the foundation for improved civil rights for minority groups. The Macedonian parliament adopted the constitutional changes outlined in the accord in November 2001. The grand coalition disbanded following the signing of the Ohrid Framework Agreement and the passage of new constitutional amendments. A coalition led by Prime Minister Georgievski, including DPA and several smaller parties, completed its parliamentary term.

In September 2002 elections, an SDSM-led pre-election coalition won half of the 120 seats in parliament. Branko Crvenkovski was elected Prime Minister in coalition with the

ethnic Albanian Democratic Union for Integration (DUI) party and the Liberal-Democratic Party (LDP).

On February 26, 2004 President Tra-jkovski died in a plane crash in Bosnia. Presidential elections were held April 14 and 28, 2004. Then-Prime Minister Branko Crvenkovski won the second round and was inaugurated President on May 12, 2004. The parliament confirmed Hari Kostov, former Interior Minister, as Prime Minister June 2, 2004. Prime Minister Kostov resigned November 15, 2004. On December 17, 2004, former Defense Minister Vlado Buckovski was confirmed by parliament as Prime Minister, maintaining the coalition with the ethnic Albanian Democratic Union for Integration (DUI) and the Liberal-Democratic (LDP) parties.

With international assistance, the SDSM-DUI-LDP governing coalition completed the legislative implementation of the Ohrid Framework Agreement, which is a precondition for Macedonia's integration into Euro-Atlantic institutions. A November 7, 2004 referendum opposing completion of this process failed, freeing the way for the government to complete Framework Agreement implementation.

Local elections were held in March-April 2005 under a new territorial reorganization plan that consolidated the overall number of Macedonia's municipalities and created a number of ethnically-mixed municipalities in which ethnic Albanian populations were dominant. The process of decentralization began in the new municipalities in July 2005 and is continuing.

The July 2006 parliamentary elections resulted in a VMRO-DPMNE-led government assuming power, in coalition with DPA, NSDP, and several smaller parties. The new government, which was confirmed in office by a parliamentary vote on August 26, 2006, stated its commitment to completing Framework Agreement implementation and reaffirmed its commitment to pursuing NATO and EU membership.

GOVERNMENT AND POLITICAL CONDITIONS

The unicameral assembly (Sobranie) consists of 120 seats. Members are elected by popular vote from party lists, based on the percentage parties gain of the overall vote in each of six election districts of 20 seats each. Members of parliament have a 4-year mandate.

The Prime Minister is the head of government and is selected by the party or coalition that gains a majority of seats in parliament. The Prime Minister and other ministers must not be members of parliament.

The President represents Macedonia at home and abroad. He is the commander in chief of the armed forces of Macedonia and heads its Security Council. The President is elected by general, direct ballot and has a term of 5 years, with the right to one reelection.

General parliamentary elections were last held on July 5, 2006. Presidential elections were held April 14 and 28, 2004 to succeed President Trajkovski, who died in office in February 2004. Local elections on the basis of a new municipal division mandated by the Framework Agreement were held in March-April 2005. The court system consists of a Supreme Court, Constitutional Court, and local and appeals courts. The State Judicial Council governs the ethical conduct of judges and recommends to parliament the election of judges. The Supreme Court is the highest court in the country and is responsible for the equal administration of laws by all courts. Its judges are appointed by parliament without time limit. The Constitutional Court is responsible for the protection of constitutional and legal rights and for resolving conflicts of power between the three branches of government. Its 9 judges are appointed by parliament with a mandate of 9 years, without the possibility of reelection. An independent Public Prosecutor is appointed by parliament with a 6-year mandate.

Principal Government Officials

Last Updated: 2/1/2008

Pres.: Branko CRVENKOVSKI

Prime Min.: Nikola GRUEVSKI

Dep. Prime Min. for Agriculture & Education: Zivko JANKULOVSKI

Dep. Prime Min. for Economic Affairs: Zoran STAVRESKI

Dep. Prime Min. for European Integration: Gabriela KONEVSKA-TRAJKOVSKA

Dep. Prime Min. for Framework Agreement Implementation: Imer ALIU

Min. of Agriculture, Forestry, & Waterways: Ace SPASENOVSKI

Min. of Culture: Arifhikmet XHEMAILI

Min. of Defense: Lazar ELENOVSKI

Min. of Economy: Vera RAFAJLOVSKA

Min. of Education: Sulejman RUSHITI

Min. of Environment: Dzelil BAJRAMI

Min. of Finance: Trajko SLAVESKI

Min. of Foreign Affairs: Antonio MILOSOSKI

Min. of Health: Imer SELMANI

Min. of the Interior: Gordana JANKULOVSKA

Min. of Justice: Mihajlo MANEVSKI

Min. of Labor & Social Policy: Ljupco MESKOV

Min. of Local Self-Govt.: Zoran KONJANOVSKI

Min. of Transport & Communications: Mile JANAKIESKI

Governor, Macedonian National Bank: Petar GOSEV

Ambassador to the US: Zoran JOLEVSKI Permanent Representative to the UN, New York: Igor DZUNDEV

The country maintains an embassy in the United States at 2129 Wyoming Ave, NW, Washington, DC 20008 (tel: (202) 667-0501; fax: (202) 667-2131). It maintains a Consulate General in Detroit: 2000 Town Center, Suite 1130, Southfield, MI 48075 (tel: (248) 354-5537; fax: (248) 354-5538).

ECONOMY

Macedonia is a small economy with a gross domestic product (GDP) of about $6.2 billion, representing about 0.01% of the total world output. It also is an open economy, highly integrated into international trade, with a total trade-to-GDP ratio of 99.2%. Agriculture and industry have been the two most important sectors of the economy, but the services sector has gained prominence in the past few years. Economic problems persist, even as Macedonia undertakes structural reforms to finish the transition to a market-oriented economy.

A largely obsolete industrial infrastructure has not seen much investment during the transition period. Labor force education and skills are competitive, but without adequate job opportunities, many with the best skills seek employment abroad. A low standard of living, high unemployment rate, and relatively modest economic growth rate are the central economic problems.

Five years of continuous economic expansion in Macedonia was interrupted by the 2001 conflict, which led to a contraction of 4.5% in 2001. Growth started to pick up in 2003 (2.8%) and continued in 2004 (4.1%), 2005 (3.8%), and 2006 (3.1%). Living standards still lag behind those enjoyed before independence. In 2007, real growth is projected to reach a rather optimistic 6% annually, with inflation of up to 3.2%. The United States is supporting Macedonia's transition to a democratic, secure, market-oriented society with substantial amounts of assistance.

Background

After the breakup of Yugoslavia in 1991, Macedonia, the former Yugoslavia's poorest republic, faced formidable economic challenges posed by both the transition to a market economy and a difficult regional situation. The breakup deprived Macedonia of key protected markets and large transfer payments from the central Yugoslav government. The war in Bosnia, international sanctions on Serbia, and the 1999 crisis in neighboring Kosovo delivered successive shocks to Macedonia's trade-dependent economy. The government's painful but necessary structural reforms and macroeconomic stabilization program generated additional economic dislocation. Macedonia's economy was hurt especially by a trade embargo imposed by Greece in February 1994 in a dispute over the country's name, flag, and constitution, and by international trade sanctions against Serbia that were not suspended until a month after conclusion of the Dayton Accords. The impact of the 2001 ethnic Albanian insurgency in Macedonia, decreased international demand for Macedonian products, canceled contracts in the textile and iron and steel industry, and poor restructuring of the private sector affected Macedonia's growth and foreign trade prospects through 2004.

Macedonia's political and security situation is stable. This has allowed the government to refocus energies on domestic reforms, boosting economic growth, and attracting increased levels of foreign investment. In 2004, the government passed a progressive Trade Companies Law aimed at easing impediments to foreign investment, providing tax and investment incentives, and guaranteeing shareholder rights. In 2006, the government began implementing a one-stop procedure for business registration that considerably shortened the time required to register a new business. The government's fiscal policy, aligned with International Monetary Fund (IMF) and World Bank policies, helped maintain a stable macroeconomic environment. Legislation that would further liberalize the telecommunications market, and completion of the first phase of privatization of the electricity sector, sent promising signals to investors. However, economic growth remained sub-par in 2005 and 2006, due in part to poor government results in combating corruption and a weak judiciary, as well as high domestic finance costs and continued bureaucratic obstacles to doing business. The new Government of Macedonia that took office in August 2006 put the fight against corruption and attracting foreign investors at the very top of its priority list. In 2007, it launched an expensive marketing campaign promoting the country as a good investment destination. It provided business incentives by cutting rates on profit tax and personal income tax, while implementing a “regulatory guillotine” an activity which aims to significantly reduce procedures and legislative requirements for doing business.

Macroeconomy

The upward trend of real GDP continued in 2006 as well. After growing by 4.1% and 4% respectively in 2004 and 2005, it grew by 3.1% in 2006. The growth was broad-based as value added increased in all sectors, except in health and social protection. Mining and quarrying led the growth with a 26.8% annual increase, capitalizing on favorable world prices for various metals. Services grew by 3.6% on average, and trade was higher by 5%. Industrial output in 2006 was 3.6% higher than in 2005. The annualized consumer price index (CPI) rose by 3.2%. The official unemployment rate came down a bit to 36.0% in 2006. A conservative and poorly structured fiscal policy has kept the budget in a negligible budget deficit of 0.2% of GDP, well below the revised 0.8% annual target. In such circumstances, monetary policy provided for credit to households and enterprises to expand by 30.5% in 2006, and interest rates have continued to come down. Although export growth topped import growth by one percentage point in 2006, the trade deficit remained high at 21.9% of GDP. In spite of that, the current account deficit was only 0.4% of GDP, primarily due to large private transfers inflow. External debt remained stable at 39.3% of GDP.

In late 2005, Macedonian authorities concluded a new Stand-By Arrangement (SBA) with the IMF and a Programmatic Development Policy Loan (PDPL) with the World Bank. In 2006 both financial institutions positively assessed their first review of enforcement of the programs, which resulted in the Macedonian Government withdrawing $12 million from the IMF and $30 million from the World Bank. Since that, the SBA has turned to be only precautionary as balance-of-payment support is not needed anymore. In March 2007, the World Bank Board approved the PDPL 2 arrangement, allowing the Government of Macedonia to withdraw another tranche worth $30 million. In late April 2007, the IMF Board approved the second positive review of the SBA.

Trade

Macedonia remains committed to pursuing membership in the European Union and global economic structures. It became a full World Trade Organization (WTO) member in April 2003. Following a 1997 cooperation agreement with the European Union (EU), Macedonia signed a Stabilization and Association Agreement with the EU in April 2001, giving Macedonia duty-free access to European markets. In December 2005, it moved a step forward, obtaining candidate country status for EU accession. Macedonia has had a foreign trade deficit since 1994, which reached a record high of $1362 billion in 2006, or 21.9% of GDP. Total 2006 trade (imports plus exports of goods and services) was $6.163 billion, or 99.2% of GDP. Macedonia's major trading partners are Serbia, Montenegro, Germany, and Greece. In 2006, total trade between Macedonia and the United States was $63.4 million. U.S. exports accounted for 1.1% of Macedonia's total imports. U.S. meat, mainly poultry, and electrical machinery have been particularly attractive to Macedonian importers. Principal Macedonian exports to the United States are tobacco, apparel, footwear, and iron and steel.

Macedonia has Free Trade Agreements with Ukraine, Turkey, and the European Free Trade Association countries. Bilateral agreements with Albania, Bosnia and Herzegovina, Croatia, Serbia, Montenegro, UN Mission in Kosovo, and Moldova were replaced with the membership in the Central European Free Trade Agreement (CEFTA), which the other countries joined in December 2006.

DEFENSE

Macedonia established its armed forces following independence and the complete withdrawal of the Yugoslav National Army (JNA) in March 1992. The Macedonian Armed Forces consist of an army, navy, air and air defense force, and a police force (under the Ministry of Interior). Under its North Atlantic Treaty Organization (NATO) Membership Action Plan, Macedonia has launched a major effort to reform and reconstruct its armed forces with the goal of building and sustaining a modern, professional defense force of about 12,000 troops.

Successive Macedonian governments have viewed integration into Euro-Atlantic political, economic, and security institutions as the country's primary foreign policy goal. In pursuit of these goals, Macedonia is restructuring its military to be smaller, more affordable, defensively oriented, and interoperable with NATO. The Macedonian Government has welcomed close cooperation with the U.S. military and seeks to deepen this relationship as it restructures its forces.

Macedonia continues to play an indispensable role as the Kosovo Force's (KFOR) rear area, hosting the logistical supply line for KFOR troops in Kosovo. As part of these efforts, Macedonia hosts NATO troops, including U.S. troops, in support of NATO operations in Kosovo and to assist Macedonia's efforts to reform its military to meet NATO standards. Close U.S.-Macedonian bilateral defense cooperation continues. Macedonia also contributes troops to international coalition operations in Iraq and Afghanistan, and recently deployed troops and equipment to support the EU peace support operation in Bosnia and Herzegovina.

FOREIGN RELATIONS

In February 1994, Greece imposed a trade embargo on Macedonia due to disputes over the use of the name “Macedonia” and other issues. Greece and Macedonia signed an interim accord in October 1995 ending the embargo and opening the way to diplomatic recognition and increased trade. After signing the agreement with Greece, Macedonia joined the Council of Europe, the Organization for Security and Cooperation in Europe (OSCE), and NATO's Partnership for Peace (PfP). Athens and Skopje began talks on the name issue in New York under UN auspices in December 1995, opening liaison offices in respective capitals January 1996. These talks continue.

The stability of the young state was gravely tested during the 1999 Kosovo crisis, when Macedonia temporarily hosted about 360,000 refugees from the violence and ethnic cleansing in Kosovo. The refugee influx put significant stress on Macedonia's weak social infrastructure. With the help of NATO and the international community, Macedonia ultimately was able to accommodate the influx. Following the resolution of the conflict, the overwhelming majority of refugees returned to Kosovo. A small number of Roma refugees from Kosovo remains in Macedonia, most of them housed in the predominantly Roma municipality of Suto Orizari in the Skopje suburbs, and supported by the UNHCR.

Macedonia enjoys good relations with its neighbors. It has strong trade and tourism ties with Greece, and has developed similarly robust political and trade ties with Albania and Bulgaria. Relations between Belgrade and Skopje are good overall, although a dispute between the Macedonian Orthodox Church and the Serb Orthodox Church has strained ties over the past two years. Relations with Kosovo are good, with Macedonia having signed an Interim Free Trade Agreement with UNMIK in 2005 and with regular bilateral political contacts occurring between Pristina and Skopje since 2005.

Macedonia also has made important strides toward Euro-Atlantic integration. Macedonia is an active participant in NATO's Partnership for Peace and Membership Action Plan, the OSCE, and United Nations, and was accepted as a member of the World Trade Organization (WTO) in October 2002. In May 2003, Macedonia, Albania, Croatia, and the U.S. created the Adriatic Charter, modeled on the Baltic Charter, as a mechanism for promoting regional cooperation to advance each country's NATO candidacy. Since then, the Adriatic Charter countries have cooperated closely in regional military exercises, and have deployed a joint medical team to support international coalition operations in Afghanistan. In 1999, the EU agreed to pursue a Stabilization and Association Agreement (SAA) with Macedonia; negotiations with Macedonia were launched April 5, 2000. The SAA was signed April 2001 and came into force in April 2004. Its trade and trade-related provisions have been in force since June 2001. For Macedonia to successfully integrate within the global arena, continued efforts to strengthen its multiethnic civil society institutions, to develop measures to promote economic growth and investment, and to foster strong indigenous non-governmental organizations are necessary. On November 9, 2005 the European Commission recommended EU candidate status for the country. It recommended beginning formal accession negotiations after Macedonia had made further progress on a number of reform fronts, including combating corruption; enacting judicial, administrative, and economic reforms; and conducting free and fair parliamentary elections, in accordance with European standards, in 2006. In December 2005, the European Council granted candidate country status to Macedonia, taking into account the “substantial progress made in completing the legislative framework related to the Ohrid Framework Agreement, as well as its track record in implementing the Stabilization and Association Agreement (including its trade-related provisions) since 2001.” The Council also noted the need to consider further steps toward membership in light of the debate on the enlargement strategy, and the need for Macedonia to continue strong progress toward meeting the Copenhagen political criteria, as well as Stabilization and Association Agreement requirements.

U.S.-MACEDONIAN RELATIONS

The United States and Macedonia have enjoyed good bilateral relations since Macedonia gained its independence in 1991. The United States formally recognized Macedonia on February 8, 1994, and the two countries established full diplomatic relations on September 13, 1995. The U.S. Liaison Office was upgraded to an Embassy in February 1996, and the first U.S. Ambassador to Skopje arrived in July 1996. The development of political relations between the United States and Macedonia has ushered in a whole host of other contacts between the two states.

The United States, together with its European allies, strongly condemned the initiators of the 2001 insurgency in Macedonia and closely supported the government and major parties’ successful efforts to forge a peaceful, political solution to the crisis through the Ohrid Framework Agreement. In partnership with the EU and other international organizations active in Macedonia, the United States is facilitating the Macedonian Government's implementation of the Framework Agreement and fostering long-term peace and stability in the country. Macedonia continues to make an important contribution to regional stability by facilitating the logistical supply of NATO (including U.S.) peacekeepers in Kosovo.

Today, Macedonia and the United States enjoy a cooperative relationship across a broad range of political, economic, cultural, military, and social issues. The United States supports Macedonia's aspirations to build a democratically secure and market-oriented society, and has donated large amounts of foreign assistance for democracy and economic reforms, defense reforms, and projects to strengthen rule of law and improve education. Bilateral assistance budgeted to Macedonia under the Support Europe Economic Development (SEED) Act totaled over $320 million from 1990 to 2004, including budget support and other assistance to help Macedonia recover from the 2001 crisis. Macedonia received approximately $37 million in SEED Act assistance in 2005.

U.S. Agency for International Development (USAID) programs in Macedonia promote accelerated growth, support stronger democratic institutions, and help educate Macedonians for a modern economy. A key focus of U.S. assistance is helping Macedonia implement the August 2001 Framework Agreement; implementing the decentralization provision is a priority. USAID is targeting capacity building for local government officials, who will have more authority and responsibility devolved from the central government, as well as providing grants to fund small-scale infrastructure projects.

A further priority of U.S. assistance is to facilitate Macedonia's transition to a market economy and increase employment and growth levels. USAID has identified and is now assisting the five most competitive sub-sectors of Macedonia's economy. USAID also helps Macedonian enterprises through business resource centers, improved access to credit and equity, trade and investment facilitation, and training. Programs target improvements in the business-enabling environment by helping to bring legislative and regulator frameworks in line with EU standards and improving the transparency and efficiency of government services through technology. A resident U.S. Department of Treasury advisor is assisting the Ministry of Finance improve strategy, planning and execution, and public expenditure management.

USAID is working to strengthen Macedonia's non-governmental organization (NGO) and community networks, encourage judicial reform, in particular by modernizing court administration, and build capacity and transparency of the parliament and local governments. USAID has helped strengthen the State Election Commission's capacity to administer elections and supported domestic NGO election monitoring of the spring 2005 municipal elections. A U.S. Department of Justice Resident Legal Advisor focuses on strengthening the independence of the judiciary, efficacy of public prosecution, reform of criminal codes, and capacity to fight trafficking in persons and organized crime. Complementing its assistance in Macedonia's political and economic transition, USAID programs improve education and human capacity in Macedonia through projects on the primary, secondary, and post-secondary levels. Targets include improving teaching techniques, modernizing vocational education, providing computer labs in all schools, and expanding broadband Internet service throughout the country using primary and secondary schools as a platform. Other programs address crosscutting issues, including interethnic cooperation, assistance to the Roma minority, corruption, HIV/AIDS, and trafficking.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

SKOPJE (E) Bul Ilinden bb, 1000 Skopje, APO/FPO Unit 7120 Box 1000; APO/AE 09737-1000, 389-2-311-6180, Fax 389-2-311-7103, INMARSAT Tel 871-761-836-255, Workweek: Mon-Fri 0800-1700, Website: http://skopje.usembassy.gov.

TRAVEL

Consular Information Sheet

July 6, 2007

Country Description: Macedonia is a parliamentary democracy that is steadily transforming its economy. Tourist facilities are available in the capital, Skopje, and other major towns. In tourist centers, such as Skopje and Ohrid, European-standard hotels and other travel amenities are available, while the standard of facilities throughout the rest of the country varies considerably.

Entry and Exit Requirements: U.S. citizens need a passport to enter Macedonia. A visa for Macedonia is not required for tourist/business purposes for stays up to 90 days. For stays longer than 90 days, American citizens need to obtain the appropriate visa at a Macedonian Embassy or Consulate prior to their trip. Additional information on entry requirements may be obtained from the Macedonian Embassy at 2129 Wyoming Ave. NW, Washington, DC, 20008, telephone (202) 667-0501, fax (202) 337-3093; or the Macedonian Consulate General in Detroit, 2000 Town Center, Suite 1130, Southfield, MI 48075, telephone (248) 354-5537, fax (248) 354-5538. Visit the Embassy of Macedonia web site at http://www.macedonianembassy.org or http://www.mfa.gov.mk.

Foreigners, including American citizens, who enter Macedonia and stay in private accommodations are required to register with the nearest police station within three days. Foreigners staying in hotels are not required to register, as the hotel is responsible for registration with the police. Persons who overstay their visas should contact the branch office of the Ministry of Interior near their place of residence to obtain an exit visa; failure to do so may result in difficulties in departing the country.

Travelers should be aware that all immediate border areas apart from designated border crossings are restricted zones. Presence in these zones is forbidden without prior official permission.

Safety and Security: The security situation in Macedonia is stable, although occasional criminal violence does occur. Americans should avoid areas with demonstrations, strikes, or roadblocks where large crowds are gathered, particularly those involving political causes or striking workers.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Travel Warnings and Travel Alerts, including the Worldwide Caution Travel Alert, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: Crime in Macedonia is low by U.S. standards, and violent crime against Americans is rare. Pickpocketing, theft, and other petty street crimes do occur, however, particularly in areas where tourists and foreigners congregate. American travelers are advised to take the same precautions against becoming crime victims as they would in any American city. Valuables, including cell phones and electronic items, should not be left in plain view in unattended vehicles. Windows and doors should be securely locked when residences are not occupied. Organized crime is present in Macedonia; organized criminal activity occasionally results in violent confrontations between members of rival organizations. ATM use is safe, as long as standard safety precautions are taken.

Information for Victims of Crime: If you are a victim of a crime while overseas, in addition to reporting to the local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and find an attorney if needed.

Medical Facilities and Health Information: Although many Macedonian physicians are trained to a high standard, and a number of well-equipped private clinics are available especially in Skopje, most public hospitals and clinics are not equipped and maintained at U.S. or Western European standards. Basic medical supplies are usually available, but specialized treatment may not be obtainable. Travelers with previously diagnosed medical conditions may wish to consult their physician before travel.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's web site at http://www.cdc.gov/travel. For information about out-breaks of infectious diseases abroad consult the World Health Organization's (WHO) web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Macedonia is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Driving safely in Macedonia requires excellent defensive driving skills. Pedestrians should also exercise defensive walking skills. Many drivers routinely ignore speed limits and other traffic regulations, such as stopping for red lights and stop signs. Drivers may make illegal left turns from the far right lane, or drive into oncoming lanes of traffic. The combination of speeding, unsafe driving practices, poor vehicle maintenance, the mixture of new and old vehicles on the roads, and poor lighting contributes to unsafe driving conditions. Pedestrians should exercise extreme caution when crossing the street, even when using crosswalks, as local drivers rarely slow down or stop for pedestrians.

A valid U.S. driver's license in conjunction with an International Driving Permit is required for Americans driving in Macedonia. Driving is on the right side of the road. Speed limits are generally posted. Most major highways are in good repair, but many secondary urban and rural roads are poorly maintained and lit. Horse-drawn carts, livestock, dead animals, rocks, or other objects are sometimes found in the roadway. Some vehicles are old and lack standard front or rear lights. Secondary mountain roads can be narrow and poorly marked, lack guardrails, and quickly become dangerous in inclement weather. Overall, public transportation in Macedonia is dilapidated. Roadside emergency services are limited.

In case of emergency, drivers may contact the police at telephone 192, the Ambulance Service at telephone 194, and Roadside Assistance at telephone 196.

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Macedonia, the U.S. Federal Aviation Administration (FAA) has not assessed Macedonia's Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA's web site at http://faa.gov/safety/programs_initiatives/oversight/iasa.

Special Circumstances: Macedonian customs authorities may enforce strict regulations concerning temporary importation or export from Macedonia of certain items, including items deemed to be of historical value or significance. Taking photographs of anything that could be perceived as being of military or security interest may result in problems with authorities. Visitors should always observe “no photographing” signs. If in doubt, please ask permission before taking photographs.

The local currency is the denar. While credit cards are accepted in larger stores and restaurants, cash in local currency is advised for purchases in small establishments.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Macedonian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Macedonia are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States. Prostitution is illegal in Macedonia.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living or traveling in Macedonia are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration web site and to obtain updated information on travel and security within Macedonia. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy in Skopje is located at Ilindenska bb, 1000 Skopje, tel. (389) (2) 311-6180, fax (389) (2) 321-3767, email: consularskopje@state.gov. Registration forms are available on the Embassy's web site, located at: http://skopje.usembassy.gov.

International Adoption

April 2006

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Patterns of Immigration: Please review current reports online at http://travel.state.gov/family.

Adoption Authority: The office responsible for foreign adoptions in Macedonia is the Ministry of Labor and Social Policy, whose address is: 14 Dame Gruev St. Skopje 1000 Tel: ++389-2-3106-247 or 3117-288 Fax: ++389-2-3106-252

Eligibility Requirements for Adoptive Parents: Prospective adoptive parents may be either married or single. However, preference is given to married couples. Adoptive parents must be at least 18 years older than their adoptive children, but no more than 45 years older. In exceptional circumstances, persons older than 45 may be permitted to adopt, but the age difference between the parent and child may not exceed 45 years. When it comes to the age difference, the age of the younger parent is taken into account. Note: Under U.S. law, at least one parent must be 25 years old.

Residency Requirements: There are no residency requirements to complete an intercountry adoption in Macedonia. However, there is a fostering period of 2 to 3 months prior to the final adoption of the child, where the prospective adoptive parents are required to live with the child in Macedonia, before the final approval for adoption is given to the parents.

Time Frame: The adoption process may take varying amounts of time, depending on availability of children and the number of requests for adoption. The number of children available for adoption is usually much lower than the number of requests for adoption. In Macedonia, domestic adoptions have priority over international adoptions.

Adoption Agencies and Attorneys: There are no U.S. adoption agencies operating in Macedonia. However, the prospective parents may hire a Macedonian lawyer or an individual with a power of attorney authorizing him/her to find a suitable child and proceed with the adoption process. It is also possible for this entire process to be carried out by the prospective parents. The U.S. Embassy in Skopje maintains a list of attorneys, which can also be seen at http://skopje.usembassy.gov.

Adoption Fees: The Macedonian government does not charge a fee for its role in the adoption process.

Adoption Procedures: Persons who wish to apply to adopt a child from Macedonia can do so by submitting the complete paperwork, along with a letter requesting permission to adopt, to the Adoption Board at the Ministry of Labor and Social Policy. Parents and children are matched based on the needs of the child as well as the requirements of the prospective adoptive parents. If the match is successful, the Adoption Board gives an approval and forwards it to the Center for Social Welfare of the municipality in which the child originally resided.

The Center advises the family to come to Macedonia and proceed with the adoption process, which consists of releasing the child to the prospective parents for 2 to 3 months, and going through the fostering/adaptation period together. The parents are expected to rent an apartment or stay in a hotel for that period of time. After the adaptation period, the Center for Social Welfare submits a Proposal for Adoption to the Adoption Board, after which a date is set for the official adoption ceremony, which takes place at the Ministry of Labor and Social Policy. At the ceremony, the prospective parents must provide a licensed court translator and be in possession of their passports. The presence of the child is necessary if the child is over the age of 12. At the time of the adoption, the adoptive parents choose a name for the child, and designate a place of birth within Macedonia. The Adoption Board issues an official adoption decree. The Center is in charge of obtaining a birth certificate for the child on which the names of the adoptive parents are listed as his/her parents. Once the adoption is completed, the next step for the adoptive parents is to apply for a passport for their adopted child with the branch office of the Mace-donian Ministry of Interior, in order to apply for an immigrant visa at the American Embassy in Skopje. The passport fee is $30.00 USD (subject to change).

Information on the Macedonian adoption law can be found at the official website of the Ministry of Labor and Social Policy at http://www.mtsp.gov.mk.

Required Documents: There is no specific application form. A request for adoption should be in the form of a letter, written by the prospective adoptive parents, detailing their circumstances and their desire for adoption, and bearing original signatures of both parents. It can be submitted by mail or through an authorized representative or attorney. The application must be accompanied by the following documents for each of the adoptive parents:

• Proof of Citizenship (certified copy of a Naturalization Certificate or passport);
• Home study conducted by a licensed U.S. adoption agency;
• Marriage Certificate (issued within the last 12 months);
• Birth Certificate for each parent (issued within the last 12 months);
• Medical certificate certifying good mental and physical condition of each parent;
• Police certificate issued by the local law enforcement authorities (stating that no criminal record exists);
• Certificate from the Office of Social Services from the parents’ state of residence certifying that the adoptive parents were never deprived of their parental rights;
• A letter from the employer for each parent showing their current employment and their salary;
• Documents testifying to the prospective parents’ income and property; i.e., proof of financial status sufficient to support a child;
• Notarized Certificate showing parents’ educational background;
• Copy of a U.S. passport;
• Approved petition from DHS (Form I-171H).

All original documents and the application letter must be in English and each must be accompanied by a translation into Macedonian done by a licensed court translator. It is easier and less expensive to have the translations done in Macedonia.

Embassy of the Republic of Macedonia
2129 Wyoming Avenue, NW
Washington, DC 20008
Tel: 202-337-3063
Fax: 202-337-3093
E-mail:
usoffice@macedonianembassy.org

Macedonian Consulate General
2000 Town Center, Suite 1130
Southfield, MI 48075
Tel: 248-354-5537
Fax: 248-354-5538
E-mail: gkrmdetroit@sbcglobal.net

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

U.S. Embassy
Ilindenska, b.b.
1000 Skopje
Macedonia
Tel: ++389-2-3116-180
Fax: ++389-2-3213-767
Email: consularskopje@state.gov

Additional Information: Specific questions about adoption in Macedonia may be addressed to the U.S. Embassy in Skopje. General questions regarding intercountry adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.

Macedonia

Compiled from the September 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Macedonia

PROFILE

GEOGRAPHY

PEOPLE

HISTORY

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

DEFENSE

FOREIGN RELATIONS

U.S.-MACEDONIAN RELATIONS

TRAVEL

PROFILE

Geography

Area: 25,713 square km. (slightly larger than Vermont).

Cities: (2001 est.) Capital—Skopje 600,000; Tetovo, Kumanovo, Gostivar and Bitola 100,000+.

Geography: Situated in the southern region of the Balkan Peninsula, Macedonia is landlocked and mountainous.

Climate: Three climatic types over-lap—Mediterranean; moderately continental; and mountainous, producing hot, dry summers and cold, snowy winters.

People

Population: (July 2004 est.) 2,071,210.

Growth rate: (2003 est.) 0.4%.

Ethnic groups: (2002) Macedonian 64.18%, Albanian 25.17%, Turkish 3.85%, Roma 2.66%, Serb 1.78%.

Religions: Eastern Orthodox 65%, Muslim 29%, Catholic 4% and others 2%.

Languages: Macedonian 70%, Albanian 21%, Turkish 3%, Serbo-Croatian 3%, and others 3%.

Education: Years compulsory—8. Literacy—94.6%.

Health: (2001 est.) Infant mortality rate—12.95 deaths/per 1,000 live births. Life expectancy—males 71.79 years; females 76.43 years.

Labor force: (Q1 2006) 877,798; employed 559,702: services—34.2%; industry and commerce—47.3%; agriculture—18.5%.

Government

Type: Parliamentary democracy.

Constitution: Adopted November 17, 1991; effective November 20, 1991. Amended January 6, 1992.

Independence: September 8, 1991 (from Yugoslavia).

Government branches: Executive—prime minister (head of government), council of ministers (cabinet), president (head of state). Legislative—unicameral parliament or Sobranie (120 members elected by popular vote to 4-year terms from party lists based on the percentage parties gain of the overall vote in each of six election units). Judicial—Supreme Court, State Judicial Council, Constitutional Court, Public Prosecutor’s Office, Public Attorney. Legal system is based on civil law; judicial review of legislative acts.

Political subdivisions: 84 opstini (municipalities) plus the city of Skopje.

Suffrage: Universal at age 18.

Political parties: Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity (VMRO-DPMNE); Social-Democratic Union of Macedonia (SDSM); Democratic Union for Integration (DUI); Democratic Party of Albanians (DPA); New Social Democratic Party (NSDP); Internal Macedonian Revolutionary Organization-People’s Party (VMRO-NP); Party for Democratic Prosperity (PDP); Democratic Renewal of Macedonia (DOM); National Democratic Party (NDP); Liberal-Democratic Party (LDP); Socialist Party of Macedonia (SPM); Liberal Party (LP); Democratic Alternative (DA); Democratic Union (DU); Democratic Party of the Turks in Macedonia (DPTM); Democratic League of Bosniaks; Democratic Party of Serbs in Macedonia, United Party of Romas in Macedonia; Democratic Union of Vlachs from Macedonia; Labor-Agricultural Party of Macedonia, Socialist-Christian Party of Macedonia.

Economy

GDP: $5,647 million (2005 est.)

Per capita GDP: $2,725 (2005 est.)

Real GDP growth: 2.6%. (Q1 2006)

Inflation rate—annualized: 3.3%.(as of August 2006)

Unemployment rate: 36.2%. (Q1 2006)

Trade: Significant exports—steel, textile products, chromium, lead, zinc, nickel, tobacco, lamb, and wine.

Exchange rate: (2005 avg.) 49.3 Macedonian denars = U.S.$1; (August 2006 avg.) 47.8 Macedonian denars = U.S.$1.

GEOGRAPHY

Macedonia is located in the heart of south central Europe. It shares a border with Greece to the south, Bulgaria to the east, Serbia (and Kosovo to the north, and Albania to the west. The country is 80% mountainous, rising to its highest point at Mt. Korab (peak 2,764 m).

PEOPLE

Since the end of the Second World War, Macedonia’s population has grown steadily, with the greatest increases occurring in the ethnic Albanian community. From 1953 through the time of the latest official census in 2002 (initial official results were released December 2003), the percentage of ethnic Albanians living in Macedonia rose threefold. The western part of the country, where most ethnic Albanians live, is the most heavily populated, with approximately 40% of the total population. As in many countries, people have moved into the cities in search of employment. Macedonia has also experienced sustained high rates of permanent or seasonal emigration.

HISTORY

Throughout its history, the present-day territory of Macedonia has been a crossroads for both traders and conquerors moving between the European continent and Asia Minor. Each of these transiting powers left its mark upon the region, giving rise to a rich and varied cultural and historical tradition.

After the fall of the Western Roman Empire, the territory of Macedonia fell under the control of the Byzantine Empire in the 6th and 7th centuries. It was during this period that large groups of Slavic people migrated to the Balkan region. The Ottoman Turks conquered the territory in the 15th century; it remained under Ottoman Turkish rule until 1912.

After more than four centuries of rule, Ottoman power in the region began to wane, and by the middle of the 19th century, Greece, Bulgaria, and Serbia were competing for influence in the territory. During this time, a nationalist movement emerged and grew in Macedonia. The latter half of the 19th century, and continuing into the early part of the 20th century, was marked by sporadic nationalist uprisings, culminating in the Ilinden Uprising of August 2, 1903. Macedonian revolutionaries liberated the town of Krushevo and established the short-lived Republic of Krushevo, which was put down by Ottoman forces after 10 days. Following Ottoman Turkey’s defeat by the allied Balkan countries—Bulgaria, Serbia, Montenegro, and Greece—during the First Balkan War in autumn 1912, the same allies fought the Second Balkan War over the division of Macedonia. The August 1913 Treaty of Bucharest ended this conflict by dividing the territory between Bulgaria, Greece, and Serbia. The 1919 Treaty of Versailles sanctioned partitioning Macedonia between The Kingdom of Serbs, Croats and Slovenes, Bulgaria, and Greece. In the wake of the First World War, Vardar Macedonia (the present day area of the Republic of Macedonia) was incorporated into the newly formed Kingdom of Serbs, Croats, and Slovenes.

Throughout much of the Second World War, Bulgaria and Italy occupied Macedonia. Many people joined partisan movements during this time and succeeded in liberating the region in late 1944. Following the war, Macedonia became one of the constituent republics of the new Socialist Federal Republic of Yugoslavia under Marshall Tito. During this period, Macedonian culture and language flourished.

As communism fell throughout Eastern Europe in the late 20th century, Macedonia followed its other federation partners and declared its independence from Yugoslavia in late 1991. Macedonia was the only republic of the former Yugoslavia whose secession in 1991 was not clouded by ethnic or other armed conflict, although the ethnic Albanian population declined to participate in the referendum on independence. The new Macedonian constitution took effect November 20, 1991 and called for a system of government based on a parliamentary democracy. The first democratically elected coalition government was led by Prime Minister Branko Crvenkovski of the Social Democratic Union of Macedonia (SDSM) and included the ethnic Albanian Party for Democratic Prosperity (PDP). Kiro Gligorov became the first President of an independent Macedonia.

President Gligorov was the first president of a former Yugoslav republic to relinquish office. In accordance with the terms of the Macedonian constitution, his presidency ended in November 1999 after 8 years in office, which included surviving a car bombing assassination attempt in 1995. He was succeeded by former Deputy Foreign Minister Boris Trajkovski (VMRO-DPMNE), who defeated Tito Petkovski (SDSM) in a second-round run-off election for the presidency on November 14, 1999. Trajkovski’s election was confirmed by a December 5, 1999 partial re-vote in 230 polling stations, which the Macedonian Supreme Court mandated due to election irregularities.

In November 1998 parliamentary elections, the SDSM lost its majority. A new coalition government emerged under the leadership of Prime Minister Ljubco Georgievski of the Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity (VMRODPMNE). The initial coalition included the ethnic Albanian Democratic Party of Albanians (DPA).

During the Yugoslav period, Macedonian ethnic identity was evident in that most of Macedonia’s Slavic population identified themselves as Macedonians, while several minority groups, in particular ethnic Albanians, retained their own distinct political culture and language. Although interethnic tensions simmered under Yugoslav authority and during the first decade of its independence, the country avoided ethnically motivated conflict until several years

after independence. Ethnic minority grievances, which had erupted on occasion (1995 and 1997), rapidly began to gain political currency in late 2000, leading many in the ethnic Albanian community in Macedonia to question their minority protection under, and participation in, the government. Tensions erupted into open hostilities in Macedonia in February 2001, when a group of ethnic Albanians near the Kosovo border carried out armed provocations that soon escalated into an insurgency. Purporting to fight for greater civil rights for ethnic Albanians in Macedonia, the group seized territory and launched attacks against government forces. Many observers ascribed other motives to the so-called National Liberation Army (NLA), including support for criminality and the assertion of political control over affected areas. The insurgency spread through northern and western Macedonia during the first half of 2001. Under international mediation, a ceasefire was brokered in July 2001, and the government coalition was expanded in July 2001 to form a grand coalition which included the major opposition parties.

The expanded coalition of ruling ethnic Macedonian and ethnic Albanian political leaders, with facilitation by U.S. and European Union (EU) diplomats, negotiated and then signed the Ohrid Framework Agreement in August 2001, which brought an end to the fighting. The agreement called for implementation of constitutional and legislative changes, which lay the foundation for improved civil rights for minority groups. The Macedonian parliament adopted the constitutional changes outlined in the accord in November 2001. The grand coalition disbanded following the signing of the Ohrid Framework Agreement and the passage of new constitutional amendments. A coalition led by Prime Minister Georgievski, including DPA and several smaller parties, completed their parliamentary term.

In September 2002 elections, an SDSM-led pre-election coalition won half of the 120 seats in parliament. Branko Crvenkovski was elected Prime Minister in coalition with the ethnic Albanian Democratic Union for Integration (DUI) party and the Liberal-Democratic Party (LDP).

On February 26, 2004 President Trajkovski died in a plane crash in Bosnia. Presidential elections were held April 14 and 28, 2004. Then-Prime Minister Branko Crvenkovski won the second round and was inaugurated President on May 12, 2004.

The parliament confirmed Hari Kostov, former Interior Minister, as Prime Minister June 2, 2004. Prime Minister Kostov resigned November 15, 2004. On December 17, 2004, former Defense Minister Vlado Buck-ovski was confirmed by parliament as Prime Minister, maintaining the coalition with the ethnic Albanian Democratic Union for Integration (DUI) and the Liberal-Democratic (LDP) parties.

With international assistance, the SDSM-DUI-LDP governing coalition completed the legislative implementation of the Ohrid Framework Agreement, which is a precondition for Macedonia’s integration into Euro-Atlantic institutions. A November 7, 2004 referendum opposing completion of this process failed, freeing the way for the government to complete Framework Agreement implementation.

Local elections were held in March-April 2005 under a new territorial reorganization plan that consolidated the overall number of Macedonia’s municipalities and created a number of ethnically-mixed municipalities in which ethnic Albanian populations were dominant. The process of decentralization began in the new municipalities in July 2005 and is continuing.

The July 2006 parliamentary elections resulted in a VMRO-DPMNEled government assuming power, in coalition with DPA, NSDP, and several smaller parties. The new government, which was confirmed in office by a parliamentary vote on August 26, 2006, stated its commitment to completing Framework Agreement implementation and reaffirmed its commitment to pursuing NATO and EU membership.

GOVERNMENT AND POLITICAL CONDITIONS

The unicameral assembly (Sobranie) consists of 120 seats. Members are elected by popular vote from party lists, based on the percentage parties gain of the overall vote in each of six election districts of 20 seats each. Members of parliament have a 4-year mandate.

The Prime Minister is the head of government and is selected by the party or coalition that gains a majority of seats in parliament. The Prime Minister and other ministers must not be members of parliament.

The President represents Macedonia at home and abroad. He is the commander in chief of the armed forces of Macedonia and heads its Security Council. The President is elected by general, direct ballot and has a term of 5 years, with the right to one re-election.

General parliamentary elections were last held on July 5, 2006. Presidential elections were held April 14 and 28, 2004 to succeed President Trajkovski, who died in office in February 2004. Local elections on the basis of a new municipal division mandated by the Framework Agreement were held in March-April 2005.

The court system consists of a Supreme Court, Constitutional Court, and local and appeals courts. The State Judicial Council governs the ethical conduct of judges and recommends to parliament the election of judges. The Supreme Court is the highest court in the country and is responsible for the equal administration of laws by all courts. Its judges are appointed by parliament without time limit. The Constitutional Court is responsible for the protection of constitutional and legal rights and for resolving conflicts of power between the three branches of government. Its 9 judges are appointed by parliament with a mandate of 9 years, without the possibility of re-election. An independent Public Prosecutor is appointed by parliament with a 6-year mandate.

Principal Government Officials

Last Updated: 8/31/2006

President: Branko CRVENKOVSKI

Prime Minister: Nikola GRUEVSKI

Dep. Prime Min. for Agriculture & Education: Zivko JANKULOVSKI

Dep. Prime Min. for Economic Affairs: Zoran STAVRESKI

Dep. Prime Min. for European Integration: Gabriela KONEVSKATRAJKOVSKA

Dep. Prime Min. for Framework Agreement Implementation: Imer SELMANI

Min. of Agriculture, Forestry, & Waterways: Ace SPASENOVSKI

Min. of Culture: Ilirjan BEKIRI

Min. of Defense: Lazar ELENOVSKI

Min. of Economy: Vera RAFAJLOVSKA

Min. of Education: Sulejman RUSHITI

Min. of Environment: Imer ALIU

Min. of Finance: Trajko SLAVESKI

Min. of Foreign Affairs: Antonio MILOSOSKI

Min. of Health: Vladimir DIMOV

Min. of the Interior: Gordana JANKULOVSKA

Min. of Justice: Mihajlo MANEVSKI

Min. of Labor & Social Policy: Ljupco MESKOV

Min. of Local Self-Government: Zoran KONJANOVSKI

Min. of Transport & Communications: Mile JANAKIESKI

Governor, Macedonian National Bank: Petar GOSEV

Ambassador to the US: Ljupco JORDANOVSKI

Charge d’Affaires to the UN, New York: Jon IVONOVSKI

The country maintains an embassy in the United States at 2129 Wyoming Ave, NW, Washington, DC 20008 (tel: (202) 667-0501; fax: (202) 667-2131). It maintains a Consulate General in Detroit: 2000 Town Center, Suite 1130, Southfield, MI 48075 (tel: (248) 354-5537; fax: (248) 354-5538).

ECONOMY

Macedonia is a small economy with a gross domestic product (GDP) of about $5.1 billion, representing about 0.01% of the total world output. It also is an open economy, highly integrated into international trade, with a total trade-to-GDP ratio of 93.3%. Agriculture and industry have been the two most important sectors of the economy, but the services sector has gained prominence in the past few years.

Like most transition economies, problems persist, even as Macedonia takes steps toward reform. A largely obsolete industrial infrastructure has not seen much investment during the transition period. Labor force education and skills are competitive, but without adequate job opportunities, many with the best skills seek employment abroad. A low standard of living, high unemployment rate, and relatively modest economic growth rate are the central economic problems.

Five years of continuous economic expansion in Macedonia was interrupted by the 2001 conflict, which led to a contraction of 4.5% in 2001. Growth started to pick up in 2003 (2.8%) and continued in 2004 (4.1%), 2005 (4.0%) and in the first quarter of 2006 (2.6%). Living standards still lag behind those enjoyed before independence. In 2006, real growth is projected to reach 4% again, with inflation of 1.8% or lower. The United States is supporting Macedonia’s transition to a democratic, secure, market-oriented society with substantial amounts of assistance.

Background

After the breakup of Yugoslavia in 1991, Macedonia, the former Yugoslavia’s poorest republic, faced formidable economic challenges posed by both the transition to a market economy and a difficult regional situation. The breakup deprived Macedonia of key protected markets and large transfer payments from the central Yugoslav government. The war in Bosnia, international sanctions on Serbia, and the 1999 crisis in neighboring Kosovo delivered successive shocks to Macedonia’s trade-dependent economy. The government’s painful but necessary structural reforms and macroeconomic stabilization program generated additional economic dislocation. Macedonia’s economy was hurt especially by a trade embargo imposed by Greece in February 1994 in a dispute over the country’s name, flag, and constitution, and by international trade sanctions against Serbia that were not suspended until a month after conclusion of the Dayton Accords. The impact of the 2001 ethnic Albanian insurgency in Macedonia, decreased international demand for Macedonian products, canceled contracts in the textile and iron and steel industry, and poor restructuring of the private sector affected Mace-donia’s growth and foreign trade prospects through 2004.

Macedonia’s political and security situation is stable. This has allowed the government to refocus energies on domestic reforms, boosting economic growth, and attracting increased levels of foreign investment. In 2004, the government passed a progressive Trade Companies Law aimed at easing impediments to foreign investment, providing tax and investment incentives, and guaranteeing shareholder rights. In 2006, the government began implementing a one-stop procedure for business registration that considerably shortened the time required to register a new business. The government’s fiscal policy, aligned with IMF and World Bank policies, helped maintain a stable macroeconomic environment. Legislation that would further liberalize the telecommunications market, and completion of the first phase of privatization of the electricity sector, sent promising signals to investors. However, economic growth remained subpar in 2005 and the first half of 2006 due in part to poor government results in combating corruption and a weak judiciary, as well as high domestic finance costs and continued bureaucratic obstacles to doing business.

Macroeconomy

GDP grew by 2.6% in the first quarter of 2006, after growing by 4.1% and 4% respectively in 2004 and 2005,. The growth was broad-based and included all sectors except construction. Services led the growth, followed by trade and industry, which enjoyed favorable world market prices, especially for metals. Industrial output at the end of July 2006 was 6.2% higher than in the same month of the previous year. The annualized consumer price index (CPI) at the end of August rose by 3.3%. The official unemployment rate in Q1 of 2006 came down to 36.2%. A conservative fiscal policy maintained a budget surplus of 0.3% during the first seven months of 2006; the government’s target is -0.6% for 2006. Rather stringent monetary policy provided little room for credit expansion, although referent interest rates have come down. Export growth lagged behind the import growth in the first seven months of 2006, creating a trade deficit of 13.2% of GDP. In spite of that, the current account deficit was only 1.4% of GDP, primarily due to large private transfers inflow. External debt remained stable at 36.2% of GDP.

In late 2005, Macedonian authorities concluded a Stand-By Arrangement (SBA) with the IMF and a Program-matic Development Policy Loan (PDPL) with the World Bank. In 2006 both financial institutions positively assessed their first review of enforcement of the programs, which resulted in the Macedonian Government withdrawing $12 million from the IMF and $30 million from the World Bank. Since then, the SBA has become only precautionary, as balance-of-payment support is not needed anymore. In September 2006, the Government started negotiations with the World Bank for the PDPL 2 arrangement.

Trade

Macedonia remains committed to pursuing membership in European and global economic structures. It became a full World Trade Organization (WTO) member in April 2003. Following a 1997 cooperation agreement with the European Union (EU), Macedonia signed a Stabilization and Association Agreement with the EU in April 2001, giving Macedonia duty-free access to European markets. In December 2005, it went a step forward, obtaining EU candidate country status. Macedonia has had a foreign trade deficit since 1994, which reached a record high of $1,256 million in 2004. In 2005, it was slightly reduced to $1,187 million. Total 2005 trade (imports plus exports of goods and services) was $5,269 billion, or 93.3% of GDP. The deficit in the first seven months of 2006 reached $785 million, which is already 13.2% of GDP. Macedonia’s major trading partners are Serbia and Montenegro, Germany, and Greece. As of end-July 2006, the total trade between Macedonia and the United States for 2006 totaled $38.3 million. U.S. exports accounted for 1.2% of Macedonia’s total imports. U.S. meat, mainly poultry, and electrical machinery have been particularly attractive to Macedonian importers. Principal Macedonian exports to the United States are tobacco, apparel, footwear, and iron and steel.

Macedonia has signed Free Trade Agreements with Albania, Bosnia and Herzegovina, Serbia and Montenegro, Bulgaria, Croatia, Ukraine, Turkey, Romania, and the European Free Trade Association countries. It also has signed an Interim Free Trade Agreement with the UN Mission in Kosovo.

DEFENSE

Macedonia established its armed forces following independence and the complete withdrawal of the Yugoslav National Army (JNA) in March 1992. The Macedonian Armed Forces consist of an army, navy, air and air defense force, and a police force (under the Ministry of Interior). Under its North Atlantic Treaty Organization (NATO) Membership Action Plan, Macedonia has launched a major effort to reform and reconstruct its armed forces with the goal of building and sustaining a modern, professional defense force of about 12,000 troops.

Successive Macedonian governments have viewed integration into Euro-Atlantic political, economic, and security institutions as the country’s primary foreign policy goal. In pursuit of these goals, Macedonia is restructuring its military to be smaller, more affordable, defensively oriented, and interoperable with NATO. The Macedonian Government has welcomed close cooperation with the U.S. military and seeks to deepen this relationship as it restructures its forces.

Macedonia continues to play an indispensable role as the Kosovo Force’s (KFOR) rear area, hosting the logistical supply line for KFOR troops in Kosovo. As part of these efforts, Macedonia hosts NATO troops, including U.S. troops, in support of NATO operations in Kosovo and to assist Macedonia’s efforts to reform its military to meet NATO standards. Close U.S.-Macedonian bilateral defense cooperation continues. Macedonia also contributes troops to international coalition operations in Iraq and Afghanistan, and recently deployed troops and equipment to support the EU peace support operation in Bosnia and Herzegovina.

FOREIGN RELATIONS

In February 1994, Greece imposed a trade embargo on Macedonia due to disputes over the use of the name “Macedonia” and other issues. Greece and Macedonia signed an interim accord in October 1995 ending the embargo and opening the way to diplomatic recognition and increased trade. After signing the agreement with Greece, Macedonia joined the Council of Europe, the Organization for Security and Cooperation in Europe (OSCE), and NATO’s Partnership for Peace (PfP). Athens and Skopje began talks on the name issue in New York under UN auspices in December 1995, opening liaison offices in respective capitals January 1996. These talks continue.

The stability of the young state was gravely tested during the 1999 Kosovo crisis, when Macedonia temporarily hosted about 360,000 refugees from the violence and ethnic cleansing in Kosovo. The refugee influx put significant stress on Macedonia’s weak social infrastructure. With the help of NATO and the international community, Macedonia ultimately was able to accommodate the influx. Following the resolution of the conflict, the overwhelming majority of refugees returned to Kosovo. A small number of Roma refugees from Kosovo remains in Macedonia, most of them housed in the predominantly Roma municipality of Suto Orizari in the Skopje suburbs, and supported by the UNHCR.

Macedonia enjoys good relations with its neighbors. It has strong trade and tourism ties with Greece, and has developed similarly robust political and trade ties with Albania and Bulgaria. Relations between Belgrade and Skopje are good overall, although a dispute between the Macedonian Orthodox Church and the Serb Orthodox Church has strained ties over the past two years. Relations with Kosovo are good, with Macedonia having signed an Interim Free Trade Agreement with UNMIK in 2005 and with regular bilateral political contacts occurring between Pris-tina and Skopje since 2005.

Macedonia also has made important strides toward Euro-Atlantic integration. Macedonia is an active participant in NATO’s Partnership for Peace and Membership Action Plan, the OSCE, and United Nations, and was accepted as a member of the World Trade Organization (WTO) in October 2002. In May 2003, Macedonia, Albania, Croatia, and the U.S. created the Adriatic Charter, modeled on the Baltic Charter, as a mechanism for promoting regional cooperation to advance each country’s NATO candidacy. Since then, the Adriatic Charter countries have cooperated closely in regional military exercises, and have deployed a joint medical team to support international coalition operations in Afghanistan. In 1999, the EU agreed to pursue a Stabilization and Association Agreement (SAA) with Macedonia; negotiations with Macedonia were launched April 5, 2000. The SAA was signed April 2001 and came into force in April 2004. Its trade and trade-related provisions have been in force since June 2001. For Macedonia to successfully integrate within the global arena, continued efforts to strengthen its multi-ethnic civil society institutions, to develop measures to promote economic growth and investment, and to foster strong indigenous non-governmental organizations are necessary. On November 9, 2005 the European Commission recommended EU candidate status for the country. It recommended beginning formal accession negotiations after Macedonia has made further progress on a number of reform fronts, including combating corruption; enacting judicial, administrative, and economic reforms; and conducting free and fair parliamentary elections, in accordance with European standards, in 2006. In December 2005, the European Council granted candidate country status to Macedonia, taking into account the “substantial progress made in completing the legislative framework related to the Ohrid Framework Agreement, as well as its track record in implementing the Stabilization and Association Agreement (including its trade-related provisions) since 2001.” The Council also noted the need to consider further steps toward membership in light of the debate on the enlargement strategy, and the need for Macedonia to continue strong progress toward meeting the Copenhagen political criteria, as well as Stabilization and Association Agreement requirements.

U.S.-MACEDONIAN RELATIONS

The United States and Macedonia have enjoyed good bilateral relations since Macedonia gained its independence in 1991. The United States formally recognized Macedonia on February 8, 1994, and the two countries established full diplomatic relations on September 13, 1995. The U.S. Liaison Office was upgraded to an Embassy in February 1996, and the first U.S. Ambassador to Skopje arrived in July 1996. The development of political relations between the United States and Macedonia has ushered in a whole host of other contacts between the two states.

The United States, together with its European allies, strongly condemned the initiators of the 2001 insurgency in Macedonia and closely supported the government and major parties’ successful efforts to forge a peaceful, political solution to the crisis through the Ohrid Framework Agreement. In partnership with the EU and other international organizations active in Macedonia, the United States is facilitating the Macedonian Government’s implementation of the Framework Agreement and fostering long-term peace and stability in the country. Macedonia continues to make an important contribution to regional stability by facilitating the logistical supply of NATO (including U.S.) peacekeepers in Kosovo.

Today, Macedonia and the United States enjoy a cooperative relationship across a broad range of political, economic, cultural, military, and social issues. The United States supports Macedonia’s aspirations to build a democratically secure and market-oriented society, and has donated large amounts of foreign assistance for democracy and economic reforms, defense reforms, and projects to strengthen rule of law and improve education. Bilateral assistance budgeted to Macedonia under the Support Europe Economic Development (SEED) Act totaled over $320 million from 1990 to 2004, including budget support and other assistance to help Macedonia recover from the 2001 crisis. Macedonia received approximately $37 million in SEED Act assistance in 2005.

U.S. Agency for International Development (USAID) programs in Macedonia promote accelerated growth, support stronger democratic institutions, and help educate Macedonians for a modern economy. A key focus of U.S. assistance is helping Macedonia implement the August 2001 Framework Agreement; implementing the decentralization provision is a priority. USAID is targeting capacity building for local government officials, who will have more authority and responsibility devolved from the central government, as well as providing grants to fund small-scale infrastructure projects.

A further priority of U.S. assistance is to facilitate Macedonia’s transition to a market economy and increase employment and growth levels. USAID has identified and is now assisting the five most competitive sub-sectors of Macedonia’s economy. USAID also helps Macedonian enterprises through business resource centers, improved access to credit and equity, trade and investment facilitation, and training. Programs target improvements in the business-enabling environment by helping to bring legislative and regulatory frameworks in line with EU standards and improving the transparency and efficiency of government services through technology. A resident U.S. Department of Treasury advisor is assisting the Ministry of Finance improve strategy, planning and execution, and public expenditure management.

USAID is working to strengthen Macedonia’s non-governmental organization (NGO) and community networks, encourage judicial reform, in particular by modernizing court administration, and build capacity and transparency of the parliament and local governments. USAID has helped strengthen the State Election Commission’s capacity to administer elections and supported domestic NGO election monitoring of the spring 2005 municipal elections. A U.S. Department of Justice Resident Legal Advisor focuses on strengthening the independence of the judiciary, efficacy of public prosecution, reform of criminal codes, and capacity to fight trafficking in persons and organized crime.

Complementing its assistance in Macedonia’s political and economic transition, USAID programs improve education and human capacity in Macedonia through projects on the primary, secondary, and post-secondary levels. Targets include improving teaching techniques, modernizing vocational education, providing computer labs in all schools, and expanding broadband Internet service throughout the country using primary and secondary schools as a platform. Other programs address crosscutting issues, including inter-ethnic cooperation, assistance to the Roma minority, corruption, HIV/AIDS, and trafficking.

Principal U.S. Embassy Officials

SKOPJE (E) Address: Bul Ilinden bb, 1000 Skopje; APO/FPO: Unit 7120 Box 1000; APO AE 09737-1000; Phone: 389-2-311-6180; Fax: 389-2-311-7103; INMARSAT Tel: 871-761-836-255; Workweek: Mon-Fri 0800-1700.

Last Updated: 1/17/2007

TRAVEL

Consular Information Sheet : November 15, 2006

Country Description: Macedonia is a parliamentary democracy that is steadily transforming its economy. Tourist facilities are available in the capital, Skopje, and other major towns. In tourist centers, such as Skopje and Ohrid, European-standard hotels and other travel amenities are available, while the standard of facilities throughout the rest of the country varies considerably.

Entry and Exit Requirements: U.S. citizens need a passport to enter Macedonia. A visa for Macedonia is not required for tourist/business purposes for stays up to 90 days. For stays longer than 90 days, American citizens need to obtain the appropriate visa at a Macedonian Embassy or Consulate prior to their trip. Additional information on entry requirements may be obtained from the Macedonian Embassy at 2129 Wyoming Ave. NW, Washington, DC, 20008, telephone (202) 337-3063, fax (202) 337-3093, or the Macedonian Consulate General in Detroit, 2000 Town Center, Suite 1130, Southfield, MI 48075, telephone (248) 354-5537, fax (248) 354-5538. Visit the Embassy of Macedonia web site at http://www.macedonianembassy.org or http://www.mfa.gov.mk/default_en.asp for the most current visa information.

Foreigners, including American citizens, who enter Macedonia and will stay in private accommodations, are required to register with the nearest police station within three days. Foreigners staying in hotels are not required to register, as the hotel is responsible for registration with the police. Persons who overstay their visas should contact the branch office of the Ministry of Interior near their place of residence to obtain an exit visa; failure to do so may result in difficulties in departing the country.

Travelers should be aware that all immediate border areas apart from designated border crossings are restricted zones. Presence in these zones is forbidden without prior official permission.

Safety and Security: The security situation in Macedonia is stable, although occasional criminal violence does occur. Americans should avoid areas with demonstrations, strikes, or roadblocks where large crowds are gathered, particularly those involving political causes or striking workers. For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site, where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Crime in Macedonia is low by U.S. standards and violent crime against Americans is rare. Pick pocketing, theft, and other petty street crimes do occur, however, particularly in areas where tourists and foreigners congregate. American travelers are advised to take the same precautions against becoming crime victims as they would in any American city. Valuables, including cell phones and electronic items, should not be left in plain view in unattended vehicles. Windows and doors should be securely locked when residences are uninhabited. Organized crime is present in Macedonia, which occasionally results in violent confrontations between members of rival organizations. ATM use is safe, as long as standard safety precautions are taken.

Information for Victims of Crime: If you are a victim of a crime while overseas, in addition to reporting to the local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and find an attorney if needed.

Medical Facilities and Health Information: Although many Macedonian physicians are trained to a high standard, and a number of well-equipped private clinics are available especially in Skopje, most public hospitals and clinics are not equipped and maintained at U.S. or Western European standards. Basic medical supplies are usually available, but specialized treatment may not be obtainable. Travelers with previously diagnosed medical conditions may wish to consult their physician before travel.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Macedonia is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Driving safely in Macedonia requires excellent defensive driving skills. Pedestrians should also exercise defensive walking skills. Many drivers routinely ignore speed limits and other traffic regulations, such as stopping for red lights and stop signs. Drivers may make illegal left turns from the far right lane, or drive into oncoming lanes of traffic. The combination of speeding, unsafe driving practices, poor vehicle maintenance, the mixture of new and old vehicles on the roads, and poor lighting, contributes to unsafe driving conditions. Pedestrians should use crosswalks and take extreme care when crossing the street.

A valid U.S. driver’s license in conjunction with an International Driving Permit is required for Americans driving in Macedonia. Driving is on the right side of the road. Speed limits are generally posted. Most major highways are in good repair, but many secondary urban and rural roads are poorly maintained and lit. Horse-drawn carts, livestock, dead animals, rocks, or other objects are sometimes found in the roadway. Some vehicles are old and lack standard front or rear lights. Secondary mountain roads can be narrow and poorly marked, lack guardrails, and quickly become dangerous in inclement weather. Overall, public transportation in Macedonia is dilapidated. Roadside emergency services are limited.

In case of emergency, drivers may contact the police at telephone 192, the Ambulance Service at telephone 194, and Roadside Assistance at telephone 196.

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Macedonia, the U.S. Federal Aviation Administration (FAA) has not assessed Macedonia’s Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA’s Internet web site at http://faa.gov/safety/programs_initiatives/oversight/iasa.

Special Circumstances: Macedonian customs authorities may enforce strict regulations concerning temporary importation or export from Macedonia of certain items, including items deemed to be of historical value or significance. Taking photographs of anything that could be perceived as being of military or security interest may result in problems with authorities. Visitors should always observe “no photographing” signs. If in doubt, please ask permission before taking photographs.

The local currency is the denar. While credit cards are accepted in larger stores and restaurants, cash in local currency is advised for purchases in small establishments.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Macedonian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Macedonia are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States. Prostitution is illegal in Macedonia.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family/family_1732.html.

Registration and Embassy Location: Americans living or traveling in Macedonia are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department’s travel registration website and to obtain updated information on travel and security within Macedonia. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy in Skopje is located at Ilindenska bb, 1000 Skopje, tel. (389) (2) 311-6180, fax (389) (2) 321-3767, email: consular-skopje@state.gov. Registration forms are available on the Embassy’s website, located at: http://skopje.usembassy.gov.

International Adoption : April 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Patterns of Immigration: Please review current reports online at www.travel.state.gov/family.

Adoption Authority: The office responsible for foreign adoptions in Macedonia is the Ministry of Labor and Social Policy, whose address is:

14 Dame Gruev St.
Skopje 1000
Tel: ++389-2-3106-247 or 3117-288
Fax: ++389-2-3106-252

Eligibility Requirements for Adoptive Parents: Prospective adoptive parents may be either married or single. However, preference is given to married couples. Adoptive parents must be at least 18 years older than their adoptive children, but no more than 45 years older. In exceptional circumstances, persons older than 45 may be permitted to adopt, but the age difference between the parent and child may not exceed 45 years. When it comes to the age difference, the age of the younger parent is taken into account. Note: Under U.S. law, at least one parent must be 25 years old.

Residency Requirements: There are no residency requirements to complete an intercountry adoption in Macedonia. However, there is a fostering period of 2 to 3 months prior to the final adoption of the child, where the prospective adoptive parents are required to live with the child in Macedonia, before the final approval for adoption is given to the parents.

Time Frame: The adoption process may take varying amounts of time, depending on availability of children and the number of requests for adoption. The number of children available for adoption is usually much lower than the number of requests for adoption. In Macedonia, domestic adoptions have priority over international adoptions.

Adoption Agencies and Attorneys: There are no U.S. adoption agencies operating in Macedonia. However, the prospective parents may hire a Macedonian lawyer or an individual with a power of attorney authorizing him/her to find a suitable child and proceed with the adoption process. It is also possible for this entire process to be carried out by the prospective parents. The U.S. Embassy in Skopje maintains a list of attorneys, which can also be seen at http://skopje.usembassy.gov.

Adoption Fees: The Macedonian government does not charge a fee for its role in the adoption process.

Adoption Procedures: Persons who wish to apply to adopt a child from Macedonia can do so by submitting the complete paperwork, along with a letter requesting permission to adopt, to the Adoption Board at the Ministry of Labor and Social Policy. Parents and children are matched based on the needs of the child as well as the requirements of the prospective adoptive parents. If the match is successful, the Adoption Board gives an approval and forwards it to the Center for Social Welfare of the municipality in which the child originally resided. The Center advises the family to come to Macedonia and proceed with the adoption process, which consists of releasing the child to the prospective parents for 2 to 3 months, and going through the fostering/adaptation period together. The parents are expected to rent an apartment or stay in a hotel for that period of time. After the adaptation period, the Center for Social Welfare submits a Proposal for Adoption to the Adoption Board, after which a date is set for the official adoption ceremony, which takes place at the Ministry of Labor and Social Policy. At the ceremony, the prospective parents must provide a licensed court translator and be in possession of their passports. The presence of the child is necessary if the child is over the age of 12. At the time of the adoption, the adoptive parents choose a name for the child, and designate a place of birth within Macedonia. The Adoption Board issues an official adoption decree. The Center is in charge of obtaining a birth certificate for the child on which the names of the adoptive parents are listed as his/her parents. Once the adoption is completed, the next step for the adoptive parents is to apply for a passport for their adopted child with the branch office of the Macedonian Ministry of Interior, in order to apply for an immigrant visa at the American Embassy in Skopje. The passport fee is $30.00 USD (subject to change).

Information on the Macedonian adoption law can be found at the official website of the Ministry of Labor and Social Policy at http://www.mtsp.gov.mk.

Documentary Requirements: There is no specific application form. A request for adoption should be in the form of a letter, written by the prospective adoptive parents, detailing their circumstances and their desire for adoption, and bearing original signatures of both parents. It can be submitted by mail or through an authorized representative or attorney. The application must be accompanied by the following documents for each of the adoptive parents:

• Proof of Citizenship (certified copy of a Naturalization Certificate or passport);
• Home study conducted by a licensed U.S. adoption agency;
• Marriage Certificate (issued within the last 12 months);
• Birth Certificate for each parent (issued within the last 12 months);
• Medical certificate certifying good mental and physical condition of each parent;
• Certificate from the Office of Social Services from the parents’ state of residence certifying that the adoptive parents were never deprived of their parental rights;
• Police certificate issued by the local law enforcement authorities (stating that no criminal record exists);
• A letter from the employer for each parent showing their current employment and their salary;
• Documents testifying to the prospective parents’ income and property; i.e., proof of financial status sufficient to support a child;
• Notarized Certificate showing parents’ educational background;
• Copy of a U.S. passport;
• Approved petition from DHS (Form I-171H).

All original documents and the application letter must be in English and each must be accompanied by a translation into Macedonian done by a licensed court translator. It is easier and less expensive to have the translations done in Macedonia.

Embassy of the Republic of Macedonia:
2129 Wyoming Avenue, NW
Washington, DC 20008
Tel: 202-337-3063
Fax: 202-337-3093
E-mail: usoffice@macedonianembassy.org

Macedonian Consulate General:
2000 Town Center, Suite 1130
Southfield, MI 48075
Tel: 248-354-5537
Fax: 248-354-5538
E-mail: gkrmdetroit@sbcglobal.net

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adopting Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

U.S. Embassy in Macedonia:
Ilindenska, b.b.
1000 Skopje
Tel: ++389-2-3116-180
Fax: ++389-2-3213-767

Additional Information: Specific questions about adoption in Macedonia may be addressed to the U.S. Embassy in Skopje. General questions regarding intercountry adoption may be addressed to the Office of Children’s Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.

MACEDONIA

Compiled from the December 2003 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
The Former Yugoslav Republic of Macedonia

The United States and the United Nations officially refer to Macedonia by its provisional name, "The Former Yugoslav Republic of Macedonia," pending the outcome of UN-mediated negotiations between Macedonia and Greece.

PROFILE
GEOGRAPHY
PEOPLE
HISTORY
GOVERNMENT AND POLITICAL CONDITIONS
ECONOMY
DEFENSE
FOREIGN RELATIONS
U.S.-MACEDONIAN RELATIONS
TRAVEL

PROFILE

Geography

Area: 25,713 square km. (slightly larger than Vermont).

Cities: Capital—Skopje 600,000; Tetovo, Kumanovo, Gostivar and Bitola 100,000+ (2001 est.).

Geography: Situated in the southern region of the Balkan Peninsula, Macedonia is landlocked and mountainous.

Climate: Three climatic types overlap—Mediterranean; moderately continental; and mountainous-producing hot, dry summers and cold, snowy winters.

People

Population: 2,022,547 (2003 census preliminary data).

Growth rate: (2001 est.) 0.43%.

Ethnic groups: Macedonian 64.18%, Albanian 25.17%, Turkish 3.85%, Roma 2.66%, Serb 1.78%. (2003 census).

Religions: Eastern Orthodox 65%, Muslim 29%, Catholic 4% and others 2%.

Languages: Macedonian 70%, Albanian 21%, Turkish 3%, Serbo-Croatian 3%, and others 3%.

Education: Years compulsory—8. Literacy—94.6%.

Health: (2001 est) Infant mortality rate—12.95 deaths/per 1,000 live births. Life expectancy—males 71.79 years; females 76.43 years.

Work force: (824,824) Employed 561,341: services—31.3%; industry and commerce—44.9%; agriculture—23.8%

Government

Type: Parliamentary democracy.

Constitution: Adopted November 17, 1991; effective November 20, 1991.

Independence: September 8, 1991 (from Yugoslavia).

Branches: Executive—prime minister (head of government), council of ministers (cabinet), president (head of state). Legislative—unicameral parliament or Sobranie, 120 representatives; (120 seats; members elected by popular vote to 4-year terms from party lists based on the percentage parties gain of the overall vote in each of the six election units). Judicial—Supreme Court: Republican Judicial Council; Constitutional Court of the Republic of Macedonia; Public Prosecutor's Office; Public Attorney. Legal system is based on civil law system; judicial review of legislative acts.

Subdivisions: 123 Opstini (municipalities) plus the city of Skopje.

Suffrage: Universal at age 18.

Main political parties: Social-Democratic Union of Macedonia (SDSM); Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity (VMRO-DPMNE); Democratic Union for Integration (DUI); Democratic Party of Albanians (DPA); Party for Democratic Prosperity (PDP); National Democratic Party (NDP); Liberal-Democratic Party (LDP); Socialist Party of Macedonia (SPM); Liberal Party (LP); Democratic Alternative (DA); Democratic Union (DU); Democratic Party of the Turks in Macedonia (DPTM); Democratic League of Bosniaks; Democratic Party of Serbs in Macedonia, United Party of Romas in Macedonia; Democratic Union of Vlachs from Macedonia; Labor-Agricultural Party of Macedonia, Socialist-Christian Party of Macedonia; Green Party of Macedonia.

Economy (2002)

GDP: $3.734 billion.

Per capita GDP: $1,835.

Real GDP growth: 0.7%.

Inflation rate: 1.8%.

Unemployment rate: 31.9%.

Trade: Significant exports—steel, textile products, coal, chromium, lead, zinc, nickel, tobacco, lamb, and wine.

Official exchange rate: (2002 avg.) 64.8 Macedonian Denars =U.S.$1.

GEOGRAPHY

Macedonia is located in the heart of South Central Europe. It shares a border with Greece to the south, Bulgaria to the east, Serbia and Montenegro (Serbia and Kosov o) to the north, and Albania to the west. The country is 80% mountainous, rising to its highest point at Mt. Korab (peak 2,764 m).

PEOPLE

Since the end of the Second World War, Macedoni a's population has grown steadily, with the greatest increases occurring in the ethnic Albanian community. From 1953 through the time of the latest official census in 2002 (initial official results were released December 2003), the percentage of Albanians living in Macedonia rose 313%. The western part of the country, where most ethnic Albanians live, is the most heavily populated, with approximately 40% of the total population. As the population grew, more people moved into the cities in search of employment. Comparing 1948 census results to the 1994 recording, the urban population grew from 28.7% to 58.4% of the population.

HISTORY

Throughout its history, the presentday territory of Macedonia has been a crossroads for both traders and conquerors moving between the European Continent and Asia Minor. Each of these transiting powers left its mark upon the region, giving rise to a rich and varied cultural and historical tradition.

The ancient territory of Macedon, included, in addition to the areas of the present-day Macedoni a, large parts of present-day Northern Greece and Southwestern Bulgaria. This ancient kingdom reached its height during the reign of Alexander III ("the Great"), who extended Macedon's influence over most of Asia Minor, the Levant, Egypt, Mesopotamia, Persia, and even parts of India. After Alexander's death in 323 BC, the Macedon Empire gradu ally declined, until it was conquered in 168 BC and made a province by the Romans in 148 BC.

After the fall of the Western Roman Empire, the territory of Macedonia fell under the control of the Byzantine Empire. It was during this period (the 6th and 7th centuries) that large groups of Slavic people migrated to the Balkan region. The Serbs, Bulgarians, and Byzantines fought for control of Macedonia until the late 14th century, when the territory was again conquered, this time by the Ottoman Turks and remained under Turkish rule until 1912.

After more than four centuries of rule, Ottoman power in the region began to wane, and by the middle of the 19th century, Greece, Bulgaria, and Serbia were competing for influence in the territory. During this time, a nationalist movement emerged and grew in Macedonia. The latter half of the 19th century was marked by sporadic nationalist uprisings, culminating in the Ilinden Uprising of August 2, 1903. Macedonian revolutionaries liberated the town of Krushevo and established the short-lived Republic of Krushevo, which was put down by Ottoman forces after 10 days. Following Ottoman Turkey's defeat by the allied Balkan countries—Bulgaria, Serbia, Montenegro, and Greece—during the First Balkan War (autumn 1912), the same allies fought the Second Balkan War over the division of Macedonia. The Treaty of Bucharest (August 1913) ended this conflict by dividing the territory between Bulgaria, Greece, and Serbia. The Treaty of Versailles in 1919 sanctioned partitioning Macedonia between The Kingdom of Serbs, Croats and Slovenes, Bulgaria and Greece. In the wake of the First World War, Vardarian Macedonia (the present day area of Macedonia) was incorporated into the newly formed Kingdom of Serbs, Croats, and Slovenes.

Through out much of the Second World War, Bulgaria and Italy occupied Macedonia. Many people joined partisan movements during this time and succeeded in liberating the region in 1944. Following the war, under Marshall Tito, Macedonia became one of the constituent republics of the new Socialist Federal Republic of Yugoslavia. During this period, Macedonian culture and language flourished.

As communism fell throughout eastern Europe in the late 20th century, Macedonia followed its other federation partners and declared its independence from Yugoslavia in late 1991. The new Macedonian Constitution took effect November 20, 1991, and called for a system of government based on a parliamentary democracy. The first democratically elected coalition government was led by Prime Minister Branko Crvenkovski of the Social Democratic Union of Macedonia (SDSM) and included the ethnic Albanian Party for Democratic Prosperity (PDP).

In November 1998 parliamentary elections, the SDSM lost its majority. A new coalition government emerged under the leadership of Prime Minister Ljubco Georgievski of the Internal Macedonian Revolutionary Organization-Democratic Party for Macedonian National Unity (VMRO-DPMNE). The initial coalition included the ethnic Albanian Democratic Party of Albanians (DPA). Following the outbreak of an ethnic Albanian insurgency in February 2001, the government coalition was expanded in July 2001 to include the major opposition parties. This grand coalition disbanded following signing of the Ohrid Framework Agreement (August 2001), which brought an end to the fighting, and the passage of new constitutional amendments (November 2001). A coalition led by Prime Minister Georgievski, including DPA and several smaller parties, finished out the parliamentary term.

In September 2002 elections, an SDSM-led pre-election coalition won half of the 120 seats in Parliament. Branko Crvenkovski was elected Prime Minister in coalition with the ethnic Albanian Democratic Union for Integration (DUI) party and the Liberal-Democratic Party (LDP).

Kiro Gligorov, the first president of an independent Macedonia, also was the first president of a former Yugoslav republic to relinquish office. His presidency ended in November 1999 after 8 years in office, in accordance with the terms of the Macedonian Constitution. Gligorov was succeeded by former Deputy Foreign Minister Boris Trajkovski (VMRO), who defeated Tito Petkovski (SDSM) in a second-round run-off election for the presidency November 14, 1999. Trajkovski's election was confirmed by a December 5 partial re-vote in 230 polling stations, which the Macedonian Supreme Court mandated due to election irregularities. Presidential elections will be held again in 2004.

Macedonia was the only republic of the former Yugoslavia whose secession in 1991 was not clouded by ethnic or other armed conflict. During the Yugoslav period, Macedonian ethnic identity again exhibited itself, in that most of Macedonia's Slavic population identified themselves as Macedonians, while several minority groups, in particular ethnic Albanians, sought to retain their own distinct political culture and language. Although interethnic tensions simmered under Yugoslav authority and during the first decade of its independence, the country avoided ethnically motivated conflict.

Ethnic minority grievances rapidly began to gain political currency in late 2000, leading many in the ethnic Albanian community in Macedonia to question their minority protection under, and participation in, the government. Tensions erupted into open hostilities in Macedonia in February 2001, when a group of ethnic Al banians near the Kosovo border carried out armed provocations that soon escalated into an insurgency. Purporting to fight for greater civil rights for ethnic Albanians in Macedonia, the group seized territory and launched attacks against government forces. Many observers ascribed other motives to the so-called National Liberation Army (NLA), including support for criminality and the assertion of political control over affected areas. The insurgency spread through northern and western Macedonia during the first half of 2001. Under international mediation, a cease-fire was brokered in July 2001.

A coalition of ruling ethnic Macedonian and ethnic Albanian political leaders, with facilitation by U.S. and European Union (EU) diplomats, negotiated and then signed the Ohrid Framework Agreement in August 2001. The agreement called for implementation of constitutional and legislative changes, which lay the foundation for improved civil rights for minority groups. The Macedonian Parliament adopted the constitutional changes outlined in the accord in November 2001. Efforts are currently underway to implement remaining provisions in the Framework Agreement with international assistance.

GOVERNMENT AND POLITICAL CONDITIONS

The unicameral assembly (Sobranie) consists of 120 seats. Members are elected by popular vote from party lists, based on the percentage parties gain of the overall vote in each of six election districts of 20 seats each. Members of parliament have 4-year mandate.

General parliamentary elections were last held on September 15, 2002. Both local and presidential elections will be held in late 2004

The prime minister is the head of government and is selected by the party or coalition that gains a majority of seats in Parliament. The prime minister and other ministers must not be members of Parliament.

The president represents Macedonia at home and abroad. He is the commander in chief of the armed forces of Macedonia and heads its Security Council. The president is elected by general, direct ballot and has a term of 5 years, with the right to one reelection.

The court system consists of a Supreme Court, Constitutional Court, and local and appeals courts. A Republican Judicial Council, composed of 7 members elected by Parliament for a period of 6 years with right to one re-election, governs the ethical conduct of judges, and recommends to Parliament the election of judges. The Supreme Court, responsible for the equal administration of laws by all courts, is the highest court in the country. Its judges are appointed by Parliament without time limit. The Constitutional Court is responsible for the protection of constitutional and legal rights and for resolving conflicts of power between the three branches of government. Its nine judges are appointed by Parliament with a mandate of 9 years, without the possibility of re-election. An independent Public Prosecutor is appointed by Parliament with a 6-year mandate.

Principal Government Officials
Last Updated: 12/5/03

President: Trajkovski, Boris

Prime Minister: Crvenkovski, Branko

Dep. Prime Min. for Political Systems: Xhaferi, Musa

Dep. Prime Min. for European Integration: Sekerinska, Radmila

Min. of Agriculture, Forestry, & Waterways: Petrov, Slavko

Min. of Culture: Stefanovski, Blagoja

Min. of Defense: Buckovski, Vlado

Min. of Economics: Jakimovski, Stevco

Min. of Education & Science: Pollozhani, Aziz

Min. of Environment: Janev, Ljubomir

Min. of Finance: Popovski, Nikola

Min. of Foreign Affairs: Mitreva, Ilinka

Min. of Health: Selmani, Rexhep

Min. of the Interior: Kostov, Hari

Min. of Justice: Memeti, Ixhet

Min. of Labor & Social Welfare: Manasievski, Jovan

Min. of Local Government: Gestakovski, Aleksandar

Min. of Transportation & Communications: Buxhaku, Agron

Min. Without Portfolio: Popovski, Vlado

Speaker, Assembly: Jordanovski, Ljubco

Governor, Macedonian National Bank: Trpeski, Ljube

Ambassador to the US: Dimitrov, Nikola

Permanent Representative to the UN, New York:

ECONOMY

Macedonia is a small economy with a gross domestic product (GDP) of U.S.$3.7 billion representing about 0.01% of the total world output. It also is an open economy, highly integrated in international trade, with a total trade-to-GDP ratio of 81.3%. Agriculture and industry have been the two most important sectors of the economy, although both sectors provide only a limited number of high-quality finished products. Like most transition economies, problems persist, even as Macedonia takes steps toward reform. A largely obsolete industrial infrastructure has not seen much investment during the transition period. Work force education and skills are competitive, but without adequate jobs, many with the best skills seek employment abroad. A low standard of living and high unemployment rates prompt occasional social unrest. Five years of continuous economic expansion in Macedonia was interrupted by the 2001 conflict, which led to a contraction of 4.5% in 2001, despite the government being able to hold inflation at a stable average 5.3%. In 2002, the economy struggled to recover, posting only 0.7% growth. The external debt-to-GDP ratio end 2002 was 38.8%. The economy still has not been able to fully recover to its pre-2001 crisis level. In 2003, growth is projected at 2.75%. The United States is supporting Macedonia's transition to a democratic, secure, marke t-oriented society with substantial amounts of assistance.

Background

After the breakup of Yugoslavia in 1991, Macedonia, the former Yugoslavia's poorest republic, faced formidable economic challenges posed by both the transition to a market economy and a difficult regional situation. The breakup deprived Macedonia of key protected markets and large transfer payments from the central Yugoslav government. The war in nearby Bosnia, international sanctions on Serbia, and the neighboring Kosovo crisis in 1999 delivered successive shocks to Macedonia's trade-dependent economy. The government's painful but necessary structural reforms and macroeconomic stabilization program generated additional economic dislocation. Macedonia was especially hurt by the Greek trade embargo, imposed in February 1994 in a dispute over the country's name, flag, and Constitution, and by international trade sanctions against Serbia that were not suspended until a month after conclusion of the Dayton Accords. As a result of these two border closures, 1995 GDP declined to 41% of its 1989 level.

Coincident to these problems, the country pursued an ambitious stabilization and reform program after independence. Despite external factors, the program yielded positive results through 1998 and won praise from the IMF and the World Bank. A robust financial austerity program stabilized the Macedonian denar and reduced the fiscal deficit. Inflation remained low for several years and was on average slightly negative in 1998 and 1999. Though economic growth suffered in the country's first 5 years of independence, a modest recovery was in progress (1998=3.4% growth) until the Kosovo crisis.

Macedonia proved the most economically vulnerable of regional neighbors to the 1999 Kosovo conflict's spillovers. At the crisis' height, Macedonia sheltered more than 350,000 Kosovar refugees, straining fiscal accounts and increasing social pressures. Per capita foreign direct investment (FDI), already the lowest in the region, worsened as investors lost confidence. With unemployment around 33%, the crisis exacerbated economic privation. Before the Kosovo crisis, up to 70% of the country's economy had been dependent on inputs from, exports to, or transport through the then-Federal Republic of Yugoslavia (FRY). At the height of the crisis, total exports had fallen to about 75% of the 1998 level. Exports to the FRY were down by about 80%. Exports which had previously transited the FRY (one-half of total exports) were hurt, as alternative transit routes through Bulgaria, Romania, and Greece increased transportation costs and delivery times, making Macedonian products less competitive. Export-processing contracts with other countries suffered cancellations over concerns about delivery risks.

Despite the impact of the Kosovo crisis on Macedonia's economy, marketing efforts were reoriented, new markets were identified and exploited, and the Kosovo market reopened in mid-summer 1999. A May 1999 international donors conference projected contraction of Macedonia's economy of around 5%—a swing of 10 percentage points from pre-conflict projections of 5% growth. However, these projections assumed the Kosovo conflict would continue through the end of the year. Early termination of the conflict in June led to an economic rebound and growth of around 2.7% in real terms for 1999.

Macedonia rescheduled its Paris Club debt in 1995, and again in early 1999, including $93 million of debt, interest, and arrears to the United States. The Kosovo crisis led to an appeal to have debt forgiven or deferred. A Paris Club agreement to defer Macedonian debt service ran out April 2000. Paris Club creditors agreed that repayment terms for amounts deferred during the Kosovo crisis would be set at 5 years, with one year as grace.

At the beginning of 2001, Macedonia's economic situation appeared to be improving, with visible signs of increased activity and dynamism, but with the start of the ethnic Albanian insurgency in Macedonia, the country's solid macroeconomic performance in 2000 and the beginning of 2001 began to slide and remained substantially depressed in 2001. Real GDP declined by 4.5% in 2001, as output deteriorated in most sectors. Inflation averaged 5.5% instead of the initially projected 2.2%. Current account deficit in the balance of payments was around 10.1% of GDP, down from an expected surplus of 1%, while the central government budget deficit reached 5.8%. From January through September 2001 the country lost around U.S.$200 million of its foreign currency reserves defending the targeted level of the Denar against the German Mark. Foreign direct investments, credits, grants, and donations declined when the insurgency began, and the Macedonia's IMF program went off-track. The IMF and the Government of Macedonia agreed to a 6-month staff-monitored program, beginning January 1, 2002, but government decisions to reimburse depositors of the 1997 failed pyramid scheme and the general wage bill increase in public administration were seen as a threat to a viable budget expenditures policy, posing an obstacle to continuation of the staff-monitoring program and negotiations on a stand-by arrangement. Discussions between the IMF and the new government on a new ag reement resumed in November 2002, and a new stand-by arrangement was signed in February 2003 and approved April 30.

The impact of the 2001 crisis, lower international demand for Macedonian products, canceled contracts in the textile and iron and steel industry, as well as the drought in 2001 affected Macedonia's growth prospects and foreign trade in 2002. Although Macedonia had been scheduled to graduate from IDA financing in 2001, the World Bank provided U.S.$15 million in emergency economic assistance to finance critical imports for the private sector. Real GDP in 2002 grew by 0.3% on annual basis in spite of subdued inflation. The Consumer Price Index-based inflation in 2002 was 1.8%. Declining industrial output adversely affected foreign trade, with exports dropping by 3.7% and imports rising by 16.3%, resulting in a trade deficit of 23% of GDP. The current account deficit in 2002 was 8.8% of GDP. An international donors conference, organized by the World Bank and the European Commission, was held March 12, 2002, in Brussels, at which donors pledged $275 million to assist in covering the projected budget gap, implementing Framework Agreement reforms, and re-energizing the Macedonian economy. Donors also pledged an additional $244 million for general economic development in 2002, outside of the pledge categories defined by the World Bank and European Commission.

Currently, Macedonia is undertaking substantial reforms in its economic and political systems, with the goal of boosting economic growth and attracting increased levels of foreign investment. Macedonia passed a progressive companies law in July 2002, which should ease impediments to foreign investment, along with tax and investment incentives. Though concerns stemming from the 2001 conflict linger, the internationally mediated Framework Agreement is being implemented, and Macedonia's political and security situation has stabilized, allowing the government to refocus energies on domestic reforms. The Macedonian Government's two main economic policy goals remain to reduce poverty and to increase employment. It also has pledged to undertake measures to strengthen fiscal discipline and to reduce the high interest rates. Developing the Small and Medium-Size Enterprise (SME) sector also is high on the government's list of priorities. Macedonia is committed to pursuing membership in European and global economic structures. It was officially accepted as a member of the World Trade Organization (WTO) on October 15, 2002. Parliament ratified the agreement in January 2003, clearing the way for Macedonia to become a full member in March 2003. Following a 1997 cooperation agreement with the European Union (EU), Macedonia signed a Stabilization and Association Agreement with the EU in April 2001, giving Macedonia duty-free access to European markets.

Trade

Macedonia's foreign trade balance has been in deficit since 1994, reaching U.S.$849.4 million in 2002. Total 2002 trade was U.S.$3.07 billion, or 82.3% of GDP—imports plus exports of goods and services. Macedonia's major trading partners are Serbia and Montenegro, Germany, and Greece. The United States is Macedonia's seventh-largest trading partner. In 2002, U.S.-Macedonia trade totaled U.S.$91.8 million (goods only). According to Macedonian trade data, U.S. exports accounted for 3.6% of Macedonia's total imports. U.S. meat (mainly poultry), and electrical machinery have been particularly attractive to Macedonian importers. Principal Macedonian exports to the United States are tobacco, apparel, footwear, and iron and steel.

Macedonia has signed Free Trade Agreements with Albania, Bosnia and Herzegovina, Serbia and Montenegro, Bulgaria, Croatia, Ukraine, Slovenia, Turkey, and the European Free Trade Association countries.

DEFENSE

Macedonia established its armed forces following independence and the complete withdrawal of the Yugoslav National Army (JNA) in March 1992. The Macedonian Armed Forces consist of an army, navy, air and air defense force, and a police force (under the Ministry of Interior). Under its North Atlantic Treaty Organization (NATO) Membership Action Plan, Macedonia has launched a major effort to reform and reconstruct its armed forces with the goal of building and sustaining a modern, professional defense force of about 12,000 troops.

Since its independence in 1991, Macedonia has worked toward increased ties with the transatlantic community. Despite the fragile political, economic, and military situation in the region over the past decade, Macedonia has provided consistent support for NATO. Macedonia is engaged in military, economic, and political reforms to enhance its security and NATO candidacy, although the security crisis of 2001 represented a setback to those efforts. The Government of Macedonia plans to assume greater responsibility for its share of ensuring the security of the region without reliance on an international military presence. Successive Macedonian governments have viewed integration into Euro-Atlantic political, economic, and security institutions as its primary foreign policy goal. In pursuit of these goals, Macedonia is restructuring its military to be smaller, more affordable, defensively oriented, and interoperable with NATO. The Macedonian Government has welcomed close cooperation with the U.S. military and seeks to deepen this relationship as it restructures its forces.

The UN Preventive Deployment Force (UNPREDEP) in Macedonia patrolled the borders with Serbia and Albania from 1992 to November 1998, enhancing Macedonian stability. In early December 1998, the Macedonian Government approved local basing of the NATO Extraction Force (XFOR) and the Kosovo Verification Coordination Cell (KVCC), in anticipation of a political resolution of the Kosovo crisis, also contributing to Macedonia's safety and stability. Prior to the bombing campaign in Yugoslavia in March 1999, the number of NATO troops in Macedoni a peaked at 17,000.

In the wake of the 2001 insurgency in Macedonia, at the government's request, NATO deployed Task Forces "Essential Harvest," then "Amber Fox," and later "Allied Harmony" in Macedonia. NATO deployed a series of Task Forces—"Essential Harvest," "Amber Fox," and "Allied Harmony" in Macedonia in confidence-building tasks and protection for OSCE monitors in the former conflict area. Task Force Harvest collected more than 4,000 weapons from the National Liberation Army (NLA) in a confidence-building effort to restore stability within Macedonia. "Amber Fox" (June through December 2002) and its smaller successor "Allied Harmony" (January to March 2003) worked with Macedonian security forces to ensure the safety of international monitors overseeing Framework Agreement implementation in Macedonia. On March 31, 2003, the EU (EUFOR) took over this role from NATO with the launch of "Operation Concordia," scheduled to end December 15, 2003. At the Macedonian Government's request, the EU will establish a Police Mission in Macedonia in December 2003 to advise the country's police.

Macedonia continues to play an indispensable role as the Kosovo Force's (KFOR) rear area, hosting the logistical supply line for KFOR troops in Kosovo. As part of these efforts, Macedonia hosts about 150 NATO troops, including U.S. troops, in support of NATO operations in Kosovo and assisting Macedonia's efforts to reform its military to meet NATO standards. Due to improvements in the security situation and U.S. KFOR drawdowns in Kosovo, the United States closed its Camp Able Sentry base in Macedonia in December 2002. Close U.S.-Macedonian bilateral defense cooperation continues.

FOREIGN RELATIONS

In February 1994, Greece imposed a trade embargo on Macedonia due to disputes over the use of the name "Macedonia" and other issues. Greece and Macedonia signed an interim accord in October 1995 ending the embargo and opening the way to diplomatic recognition and increased trade. After signing the agreement with Greece, Macedonia joined the Council of Europe, the Organization for Security and Cooperation in Europe (OSCE), and the Partnership for Peace (PfP). Athens and Skopje began talks on the name issue in New York under UN auspices in December 1995, opening liaison offices in respective capitals January 1996. These talks continue.

The stability of the young state was gravely tested during the 1999 Kosovo crisis, when Macedonia temporarily hosted about 360,000 refugees from the violence and ethnic cleansing in Kosovo, as Serb atrocities against Kosovar Albanians and other minority groups caused a mass exodus. The refugee influx put significant stress on Macedonia's weak social infrastructure. With the help of NATO and the international community, Macedonia ultimately was able to accommodate the influx. Following the resolution of the conflict, the overwhelming majority of refugees returned to Kosovo. The Macedonian Government demonstrated a strong commitment to regional stability as an essential partner during the Kosovo crisis.

In addition to improving relations with its neighbors, Macedonia has made strides toward European and international integration, especially with the EU and NATO. Macedonia is an active participant in NATO's Partnership for Peace and Membership Action Plan, the OSCE, and United Nations, and was accepted as a member of the World Trade Organization (WTO) in October 2002. In 1999, the EU agreed to develop a Stabilization and Association Agreement (SAA) with Macedonia; negotiations with Macedonia were launched April 5, 2000, and the SAA was signed April 2001. Pending the SAA' final ratification, its trade and trade-related provisions are in force as of June 2001. For Macedonia to successfully integrate within the global arena, continued efforts to strengthen its multiethnic civil society institutions, develop measures to promote economic growth and investment, and to foster strong indigenous non-governmental organizations are necessary.

U.S.-MACEDONIAN RELATIONS

The United States and Macedonia have enjoyed good bilateral relations since Macedonia gained its independence in 1991. The United States formally recognized the Former Yugoslav Republic of Macedonia on February 8, 1994, and the two countries established full diplomatic relations on September 13, 1995. The U.S. Liaison Office was upgraded to an embassy in February 1996, and the first U.S. Ambassador to Skopje arrived in July 1996. The development of political relations between the United States and Macedonia has ushered in a whole host of other contacts between the two states.

During the 1999 Kosovo crisis, Macedonia played a key role in facilitating U.S. and international efforts in the region by accepting hundreds of thousands of refugees, served as a launching pad for allied military efforts, and functioned as the long-term conduit for humanitarian assistance programs and military logistics for Kosovo. The United States, together with its European Allies strongly condemned the initiators of the 2001 insurgency in Macedonia and closely supported the government and major parties' successful efforts to forge a peaceful, political solution to the crisis through the Ohrid Framework Agreement. In partnership with the EU and other international organizations active in Macedonia, the United States remains focused on facilitating the Macedonian Government's implementation of the Framework Agreement and fostering long-term peace and stability in the country. Macedonia continues to make an important contribution to regional stability by facilitating the logistical supply of NATO (including U.S.) peacekeepers in Kosovo.

Editor's Update
April 2004

A report on important events that have taken place since the last State Department revision of this Background Note.

On February 26, 2004, President Boris Trajkovski was killed in a plane crash near the town of Stolac. The plane had taken off from Skopje and was en route to Mostar where the president was to attend an investment conference. Eight other people were killed in the crash, including two pilots and six conference delegates. The crash came on the day after the president had signed Macedonia's application to join the European Union (EU). On March 22, 2004, Macedonia formally submitted its application to join the EU. Presidential elections to fill the vacant presidential seat were to be held on April 14.

Today, Macedonia and the United States enjoy a cooperative relationship across a broad range of political, economic, cultural, military, and social issues. The United States supports Macedonia's aspirations to build a democratically secure and market-oriented society, and has donated large amounts of foreign assistance for military reform, democracy and economic reform, and humanitarian relief efforts. The United States pledged $6 million in debt relief and $22 million in Economic Support Funds to Macedonia in 1999 to help offset the strains of the Kosovo crisis. The United States provided an estimated $35 million to Macedonia to help host communities cope with refugee inflows. In addition, the United States helped reduce the refugee impact on Macedonia by resettling in the United States more than 13,000 persons through the Humanitarian Evacuation Program. Bilateral assistance provided to Macedonia under the Southeast Europe Economic Development (SEED) ACT totaled over $328 million from 1990 to 2002, including budget support and other assistance to help Macedonia recover from the 2001 crisis. Macedonia received $50 million in SEED funding in 2003.

USAID's development program in Macedonia targets four goals: accelerating economic growth and private sector development; strengthening democratic institutions; mitigating adverse impacts of market economic transition; and supporting cross-cutting and special initiatives. USAID provides assistance to Macedonian enterprises through a business resource center, credit and equity mechanisms, trade and investment facilitation, and other programs. In 2002 a competitiveness initiative identified constraints to economic growth. USAID legal advisers help to reform taxation, banking, bankruptcy, and monopoly regulations and assisted with Macedonia's accession to the WTO. Programs help to build the capacity of municipal governments to better serve the public and to advance the decentralization of power to municipalities under the Framework Agreement.

USAID assistance helps to strengthen Macedonia's NGO networks, bolster media professionalism, further legal system reforms, and increase public confidence and participation in the democratic process and institutions. Activities address the quality of education and work force development, through support for the private, accredited South East Europe University and primary and secondary education reforms to meet employer needs and market requirement in the 21st century. USAID efforts encourage job creation—especially for youth, expand markets for Macedonian artisans, and improve cooperation between municipalities and the private sector. USAID also is addressing cross-cutting issues such as ethnic cooperation, gender-based problems and disparities, youth, corruption, HIV/AIDS, and conflict mitigation. Through a small grants program, USAID's Office of Transition Initiatives is helping to mitigate conflict and strengthen relations between diverse groups of peoples by bringing them together to identify and address common needs.

Principal U.S. Embassy Officials

Skopje (E), Bul. Ilinden bb, 91000 Skopje • Pouch address: Dept. of State, 7120 Skopje Pl., Wash., D.C. 20521-7120, Tel [389] 116-180, Fax 117-103; AID: Veljko Vlahovich, 26/5, 91000 Skopje, Tel 117-211, 117-032, Fax 118-105; PAO Tel 116-623, 117-129; Fax 118-431; DAO Tel 118-690.

Last Modified: Wednesday, September 24, 2003

TRAVEL

Consular Information Sheet
August 4, 2003

Country Description: Macedonia is a developing nation undergoing economic change. Conditions in tourist facilities vary considerably and may not be up to western standards.

Entry and Exit Requirements: U.S. citizens need a passport to enter Macedonia. A visa for Macedonia is not required for tourist/business purposes for stays up to 90 days. For stays longer than 90 days, American citizens need to obtain the appropriate visa at a Macedonian Embassy or Consulate prior to their trip. Additional information on entry requirements may be obtained from the Macedonian Embassy at 1101 30th St. NW, Suite 302, Washington, D.C., 20007, telephone (202) 337-3063, fax (202) 337-3093, e-mail rmacedonia@aol.com, or the Macedonian Consulate General, 866 United Nations Plaza, Suite 4018, New York, New York 10017; phone: (212) 317-1727.

Travelers are required to complete an entry/exit document when they enter the country. The exit portion of this document must be retained for presentation to officials upon departure. Loss of this form may result in departure delays. Please also see the "Customs Regulations" section below. Foreigners, including American citizens, who enter Macedonia and will stay in private accommodations, are required to register with the nearest police station within three days. Foreigners staying in hotels are not required to register, as the hotel is responsible for registration with the police. Persons who overstay their visas should contact the Ministry of Interior in Skopje to obtain an exit visa; failure to do so may result in denial of permission to depart the country.

Travelers should be aware that all immediate border areas apart from designated border crossings are military restricted zones. Travel in these zones is forbidden without prior official permission.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Dual Nationality: In addition to being subject to all Macedonian laws affecting U.S. citizens, dual U.S./Macedonian nationals may be subject to Macedonian laws that impose special obligations. Male Macedonian citizens are subject to compulsory military draft regulations. If such persons are found guilty of draft evasion in Macedonia – or draft evasion from the former Yugoslavia prior to 1991 – they are subject to prosecution by Macedonian authorities. Those who might be affected should inquire at a Macedonian Embassy or Consulate outside Macedonia regarding their status before travel.

Safety and Security: While the security situation in Macedonia is stabilizing, it remains unsettled and potentially dangerous. Although the overall level of violence has diminished since 2001, localized inter-ethnic and criminal violence continues. Recent acts of violence, including bombings, have occurred in Skopje and other towns in Macedonia, and have resulted in the injury and death of by standers as well as property damage. An American citizen bystander was killed in such an attack in Skopje in July 2003. Travelers should be alert for unusual behavior and other possible indicators that something out of the ordinary is in progress. The potential remains for acts of intimidation and violence against American citizens.

Landmines north and west of Kumanovo and unexploded ordnance in the former conflict area pose a potential threat. Americans electing to travel in these areas are encouraged to restrict movements to daylight hours, keep to hard-topped roads, and contact the Embassy's Consular Section for up-to-date safety and security information.

Americans should avoid demonstrations and other sites, such as roadblocks, where large crowds are gathered, particularly those involving political causes or striking workers.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet website at http://travel.state.gov where current Worldwide Caution Public Announcements, Travel Warnings and Pu blic Announcements can be found.

The Overseas Citizen Services call center at 1-800-407-4747 can answer general inquiries on safety and security overseas. This number is available from 8:00 a.m. to 8: 00 p. m. Eastern Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during the se hours by calling 1-317-472-2328.

Crime Information: Crime in Macedonia is low by U.S. standards; however, incidents of theft and other petty crimes do occur, and travelers should take the same precautions they would take in any unfamiliar environment. Criminal inter-gang rivalries and individuals associated with organized crime, particularly in western Macedonia, have been the source of periodic violent confrontations resulting in serious injury and even death to innocent people.

The loss or theft of a U.S. passport should be reported immediately to the local police and the nearest U.S. embassy or consulate. If you are a victim of a crime while overseas, in addition to reporting to the local police, please contact the nearest U.S. embassy or consulate for assistance. The embassy/consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and find an attorney if needed.

U.S. citizens may refer to the Department of State's pamphlet, A Safe Trip Abroad, http://travel.state.gov/asafetripabroad.html, for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402 via the Internet at http://www.gpoaccess.gov/index.html, or via the Bureau of Consular Affairs home page at http://travel.state.gov.

Medical Facilities: Although Macedonian physicians are trained to a high standard, most hospitals and clinics are generally not equipped and maintained at U.S. or Western European standards. Basic medical supplies are available, but specialized treatment may not be obtainable. Travelers with previously diagnosed medical conditions may wish to consult their physician before travel. Some maternity hospital facilities are considered less than adequate. Women may wish to consult their physicians about the advisability of traveling to and in Macedonia during pregnancy.

Medical Insurance: Doctors and hospitals typically expect immediate cash payment for health services. U.S. medical insurance is not always valid outside the United States. The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation, which would otherwise cost in excess of $50,000. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

Uninsured travelers who require medical care overseas often face extreme difficulties, whereas travelers who have purchased overseas medical insurance have, when a medical emergency occurs, found it lifesaving when a medical emergency has occurred. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or whether you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page at travel.state.gov.

Other Health Information: Information on vaccinations and other health precautions may be obtained from the Center for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-800-394-8747) fax 1-888-CDC-FAXX (1-800-232-3299, or by visiting the CDC's Internet homepage at http://www.cdc.gov. For further information about outbreaks of infectious diseases abroad consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int.ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Macedonia is provided for general reference only, and may not be totally accurate in a particular location or circumstance:

Safety of Public Transportation: Good
Urban Road Conditions/Maintenance: Good
Rural Road Conditions/Maintenance: Poor
Availability of Roadside Assistance: Poor

Most major highways are in good repair, but secondary roads are poorly maintained and lit and are used by horse-drawn carts and livestock. Some vehicles are old and lack standard front or rear lights. Secondary mountain roads can be narrow, poorly marked, lack guardrails and quickly become dangerous in inclement weather.

For additional general information about road safety, including links to foreign government sites, please see the Department of State, Bureau of Consular Affairs home page at http://travel.state.gov/roadsafety.html. For specific information concerning Macedonia driving permits, vehicle inspection, road tax and mandatory insurance, contact the Embassy of Macedonia at rmacedonia@aol.com. For additional information about road travel in Macedonia see the U.S. Embassy home page at http://usembassy.mpt.com.mk.

Aviation Safety Oversight: As there is no direct commercial air service by local carriers at present, nor economic authority to operate such service between the United States and Macedonia, the U.S. Federal Aviation Administration (FAA) has not assessed Macedonia's Civil Aviation Authority for compliance with international aviation safety standards for oversight of Macedonia's air carrier operations. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA Internet home page at http://www.faa.gov/avr/iasa/. The U.S. Department of Defense (DOD) separately assesses some foreign air carriers for suitability as official providers of air services. For information regarding the DOD policy on specific carriers, travelers may contact the Pentagon at 1-703-697-7288.

Customs Regulations: Macedonian customs authorities may enforce strict regulations concerning temporary importation or export from Macedonia of certain items. It is advisable to contact the Embassy of Macedonia for specific information regarding customs regulations. Customs regulations require that non-Macedonian citizens make a customs declaration upon entry into Macedonia when they bring more than 10,000 euros in cash or cash equivalents. Failure to complete such a declaration may result in the confiscation of any cash over that amount upon leaving the country.

Casual, non-business travelers with expensive lap-top computers, video cameras, extensive amounts of personal jewelry, etc., are advised that they should declare those items with Macedonian Customs upon entry to avoid problems and delays upon departure. Personal importation of duty-free liquor is limited to one liter. Two hundred cigarettes may also be imported without duty. Pets should have appropriate vaccination and/or health certificates. It is advisable to contact the Macedonian Embassy in Washington or Consulate General in New York for specific information regarding customs requirements.

Macedonian Customs authorities encourage the use of an ATA (Admission Temporaire/Temporary Admission) Carnet for the temporary admission of professional equipment, commercial samples, and/or goods for exhibitions and fair purposes. ATA Carnet Headquarters, located at the U.S. Council for International Business, 1212 Avenue of the Americas, New York, NY 10036, issues and guarantees the ATA Carnet in the United States. For additional information call 212-354-4480, or send an e-mail to atacarnet@uscib.org, or visit http://www.uscib.org for details.

Criminal Penalties: While in a foreign country, U.S. citizens are subject to the laws of the country in which they are traveling, which sometime differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Macedonian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties in Macedonia for possession, use or trafficking in illegal drugs are strict, and convicted offenders can expect jail sentences and fines.

Special Circumstances: Taking photographs of anything that could be perceived as being of military or security interest may result in problems with authorities. If in doubt, please ask permission before taking photographs. Macedonia has a cashbased economy. The local currency is the denar. Few establishments accept dollars, credit cards or travelers' checks. Travelers are advised to avoid using credit cards due to numerous instances of credit card fraud.

Children's Issues: For information on international adoption of children and international parental child abduction please refer to our Internet site at http://travel.state.gov/children's_issues.html or telephone the Overseas Citizen Services call center at 1-888-407-4747. Those calling from overseas can dial 1-317-472-2328.

The OCS call center can answer general inquiries regarding international adoptions and will forward calls to the appropriate country officer in the Bureau of Consular Affairs.

Registration and Embassy Locations: U.S. citizens are encouraged to register at the U.S. Embassy in Skopje and obtain updated information on travel and security for both Macedonia and bordering countries. The U.S. Embassy is located at Ilindenska bb, 91000 Skopje, tel. (389) (2) 3116-180, fax (389) (2) 3213-767. Registration forms are available on the Embassy's website at usembassy.mpt.com.mk.