UNDP MacedoniaSupport to Economic Development – Status and Lessons Learned
Sub-regional meeting in MSME development in South East Europe6 April, 2004
Macedonia – Economic situation and challenges
• GDP per capita: $1,835 (2002); ppp $6,110 (2002)
• GDP growth rate : 0.7% (2002)• Inflation rate : 2% (2002)• Unemployment rate: 36.7% (2004)• Share of informal economy: 45.1%
(2003)• Population below poverty line: 22.3%
(2000)
UNDP Macedonia – Support to Economic Development
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation
ICTD
Policy advice
Policy Advice at national level
Stimulating Investments
Programme for Stimulating Investments and Action Plan:
•Investment Promotion
•Action Plan to Improve the Business Environment
•Fiscal and Tax Investment Incentives
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice
Policy Advice at national level
Programme for Stimulating Investments and Action Plan:
•Investment Promotion
•Action Plan to Improve the Business Environment
•Fiscal and Tax Investment Incentives
Advice
Capacity Building
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice Stimulating Investments
Policy Advice at national level
Programme for Stimulating Investments and Action Plan:
•Investment Promotion
•Action Plan to Improve the Business Environment
•Fiscal and Tax Investment Incentives
Legal Task Force
Integrated business
registration system
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice Stimulating Investments
Policy Advice at national level
Programme for Stimulating Investments and Action Plan:
•Investment Promotion
•Action Plan to Improve the Business Environment
•Fiscal and Tax Investment Incentives
Review
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice Stimulating Investments
Policy Advice at national level
Harnessing the Potentials of Informal Economy
Reduce Costs of Going Formal
Access to teams of lawyers and other experts
Increase representation
Enhance access to capital
Raising Awareness
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice
Objective: to strengthen capacities of LGs’ active role in the development processes and support to entrepreneurship
•LED Partnerships•Capacity Building of LED Teams•Holistic LED Strategies •LED Action Plans•Access to Finance: Municipal Economic Development Fund •UNDP ICT Centres•Co-operation with EU -based counterpart institutions
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice
Development of Enabling Local Economic Environment
Municipal Development Fund
Objective: to stimulate the local economic development processes
•Capital for small scale projects•Seed funds to initiate implementation of local development priorities •Incentive for LED process•Cost effective mechanism•Contribution of local stakeholders
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice
Employment Generation - MSPObjective: to support and empower municipalities in enhancing employment and incomes Focus: enhancement of potentials of the local economies and environment and improve the capabilities, job-readiness and marketability of the unemployed •Approach: demand driven and competition process•Initial partner: local authorities•Key mechanism: PPP between various local stakeholders
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice
Number of projects: 82 in 75 municipalitiesFunds: Project (1 mill$), Cash contribution (116,000), In kind ( 1 mill$)Vocational training: 480On the job training: 533Longer term employment: 709 (private: 587; public: 122)Additional opportunities for employment: 471
MSP: Type of projects
26%
21%
6%7%
31%
5% 4%
Professional training, skills and qualification that leeds to employments
On job training with employment and self-employment
Development of services and support tosustainable businesses
Development of networks and support to sustanable businsses and vunerable groups
Strengthening of local economy through infrastructure
Small range investments , small family businesses
Joining projects linked to Project's aims
ICTD
Objective: to promote access to ICT and enhance the electronic exchange of information and experience among LG and their communities through both training and electronic networking
Second phase: to provide ICT-related services to a wide range of users including LGs and MSMEs
•19 ICTCs•More than 17,000 trainees•New services:
•Collection point for a wide range of information services •Providers of training and capacity building
Enabling Local Economic
Development
MunicipalDevelopment
Fund
Employment Generation ICTD
Policy advice
Lessons Learned
• Complex problems call for comprehensive interventions
• Carefully identify the entry point for policy advice• Build on previous successful work• Ensure professional credibility – excellent expertise
and regional knowledge• Government commitment is critical, capacities as well• Coordination - complementarity with other donors and
IFIs (competitors vis-à-vis partners)• Flexibility and prompt response is important• Communicate the UNDP mandate• Potentials of partnerships on local levels• Define evaluation/assessment criteria from the
beginning