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Government Policy for Reducing Poverty and Unemployment. Nikica Mojsoska-Blazevski Ministry of Finance Supported by Sasho Kosev Faculty of Economics. Content of the Presentation. PRSP for Macedonia Labor Market Review Government Policy for Tackling Unemployment - NAPE. PRSP for Macedonia.

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Government Policy for Reducing Poverty and Unemployment


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government policy for reducing poverty and unemployment

Government Policy for Reducing Poverty and Unemployment

Nikica Mojsoska-Blazevski

Ministry of Finance

Supported by Sasho Kosev

Faculty of Economics

content of the presentation
Content of the Presentation
  • PRSP for Macedonia
  • Labor Market Review
  • Government Policy for Tackling Unemployment - NAPE
prsp for macedonia
PRSP for Macedonia
  • The national poverty line in 2002 was 30.2%, an increase from 23.3% in 1999
  • Main areas within the 2002 PRSP were:

- Macroeconomic framework;

- Poverty profiles and indicators;

- Urban, Rural Poverty;

- Labor market and unemployment;

- Access to services and decentralization;

- Civil participation and stakeholder consultation.

prsp for macedonia cont
PRSP for Macedonia (cont.)
  • Caveats:
  • Lack of concrete measures and policy recommendations
  • Unclear responsibility for the implementation
  • No financial resources assigned

Implementation failure

A need for a new or revised strategy

labor market review
Labor Market Review
  • Relatively low participation rate – 61.3% in 2003 (EU15- 70%, NMS- 65.5%)
  • Employment rate - 38.5% (EU15- 64.3%, NMS- 55.9%)

- female employment rate of 31.3%

  • Unemployment rate in 2004 was 37.6%

- youth unemployment – 65.7%

- LTU around 85%

government policy for tackling unemployment nape
Government Policy for Tackling Unemployment - NAPE
  • Primary responsibility for employment policy rests with the Ministry of Labour and Social Policy (MoLSP)
  • NAPE 2004-2005 is a first step towards having a coherent government employment policy coordinated with other areas of government activity
  • Prepared with the EU assistance through EAR
  • It takes explicit account of the Government’s broader economic policy objectives
government policy for tackling unemployment nape cont
Government policy for tackling unemployment – NAPE (cont.)
  • Coordination between ministries:

- A range of measures to be undertaken by the Ministry of Education, including plans for the development of regional training centres to support skills development

- Actions by the Ministry of Economy and its constituent agencies in the fields of support for entrepreneurship and promotion of FDI

- Possible fiscal measures under the responsibility of the Ministry of Finance

government policy for tackling unemployment nape cont8
Government policy for tackling unemployment – NAPE (cont.)
  • Institutional arrangements:

- The working group that prepared the NAPE will remain in existence to monitor its implementation

- A Joint Ministerial Committee has also been established made up of Deputy Ministers of the relevant ministries as well as from social partner representatives

- Co-ordinated by the MoLSP, the committee’s purpose will be “to supply the necessary political guidance and to exercise overall supervision of the implementation of the plan”

future challenges
Future Challenges
  • WB is involved in poverty assessment process in Macedonia
  • Lack of public (and government) awareness for the need for a new PRSP
  • A new policy-centered approach is also required with clear measures both on short and medium run, division of responsibilities, deadlines and allocation of funds for each activity