Macedonia

MACEDONIA

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS MACEDONIANS
DEPENDENCIES
BIBLIOGRAPHY

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

Country	Exports	Imports	Balance
World	1,363.3	2,299.9	-936.6
Germany	278.4	303.9	-25.5
Serbia and Montenegro	273.8	212.6	61.2
Greece	179.8	300.2	-120.4
Italy-San Marino-Holy See	95.4	122.6	-27.2
United States	72.8	56.5	16.3
Croatia	66.1	63.5	2.6
France-Monaco	54.7	51.5	3.2
Netherlands	46.8	49.1	-2.3
United Kingdom	35.1	38.6	-3.5
Turkey	32.8	78.8	-46.0
(…) data not available or not significant.

Current Account			-278.5
Balance on goods		-851.5
Imports	-2,210.5
Exports	1,359.0
Balance on services		654.6
Balance on income		-32.4
Current transfers		607.9
Capital Account			-6.7
Financial Account			248.4
Direct investment abroad		-0.3
Direct investment in Macedonia		94.6
Portfolio investment assets		0.3
Portfolio investment liabilities		3.3
Financial derivatives		…
Other investment assets		12.2
Other investment liabilities		138.3
Net Errors and Omissions			90.4
Reserves and Related Items			-53.5
(…) data not available or not significant.

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.