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Macedonia gained its independence peacefully from Yugoslavia in 1991. Greece's objection to the new state's use of what it considered a Hellenic name and symbols delayed international recognition, which occurred under the provisional designation of "the Former Yugoslav Republic of Macedonia." In 1995, Greece lifted a 20-month trade embargo and the two countries agreed to normalize relations. The United States began referring to Macedonia by its constitutional name, Republic of Macedonia, in 2004 and negotiations continue between Greece and Macedonia to resolve the name issue. Some ethnic Albanians, angered by perceived political and economic inequities, launched an insurgency in 2001 that eventually won the support of the majority of Macedonia's Albanian population and led to the internationally-brokered Ohrid Framework Agreement, which ended the fighting by establishing a set of new laws enhancing the rights of minorities. Fully implementing the Framework Agreement and stimulating economic growth and development continue to be challenges for Macedonia, although progress has been made on both fronts over the past several years.
party to: Air Pollution, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands
signed, but not ratified:
none of the selected agreements
adopted 17 November 1991, effective 20 November 1991; amended November 2001, 2005 and in 2009
note:amended November 2001 by a series of new constitutional amendments strengthening minority rights, in 2005 with amendments related to the judiciary, and in 2009 with amendments related to the threshold required to elect the president
chief of state: President Gjorge IVANOV (since 12 May 2009)
head of government:
Prime Minister Nikola GRUEVSKI (since 26 August 2006)
cabinet:
Council of Ministers elected by the majority vote of all the deputies in the Assembly; note - current cabinet formed by the government coalition parties VMRO/DPMNE, BDI/DUI, and several small parties
elections:
president elected by popular vote for a five-year term (eligible for a second term); two-round election: first round held on 22 March 2009, second round held on 5 April 2009 (next to be held in March 2014); prime minister elected by the Assembly following legislative elections
election results:
Gjorge IVANOV elected president on second-round ballot; percent of vote - Gjorge IVANOV 63.1%, Ljubomir FRCKOSKI 36.9%
unicameral Assembly or Sobranie (120 seats; members elected by popular vote from party lists based on the percentage of the overall vote the parties gain in each of six electoral districts; members serve four-year terms)
elections:
last held on 1 June and 15 June 2008 (next to be held by July 2012)
election results:
percent of vote by party - VMRO-DPMNE-led block 49%, SDSM-led block 24%, BDI/DUI 13%, PDSh/DPA 8%, other 6%; seats by party - VMRO-DPMNE-led block 63, SDSM-led block 27, BDI/DUI 18, PDSh/DPA 11, PEI 1
Democratic Alliance or DS [Pavle TRAJANOV]; Democratic Party of Serbs in Macedonia [Ivan STOILJKOVIC]; Democratic Party of the Albanians or PDSh/DPA [Menduh THACI]; Democratic Party of Turks in Macedonia [Kenan HASIPI]; Democratic Union for Integration or BDI/DUI [Ali AHMETI]; Liberal Democratic Party or LDP [Jovan MANSIJEVSKI]; Liberal Party [Borce STOJANOVSKI]; Movement for Reconstruction of Macedonia or DOM [Liljana POPOVSKA]; New Alternative [Gjorgji OROVCANEC]; New Democracy or DR [Imer SELMANI]; New Social-Democratic Party or NSDP [Tito PETKOVSKI]; Party for Democratic Action in Macedonia or SDAM [Avdija PEPIC]; Party for European Future or PEI [Fijat CANOSKI]; Social-Democratic Union of Macedonia or SDSM [Branko CRVENKOVSKI]; Socialist Party or SP [Ljubisav IVANOV-ZINGO]; The Internal Macedonian Revolutionary Organization-Democratic Party for Macedonia or VMRO-DPMNE [Nikola GRUEVSKI]; Union of Roma of Macedonia [Amdi BAJRAM]; United for Macedonia or OM [Ljube BOSKOVSKI]; VMRO-Macedonian [Borislav STOJMENOV]
Federation of Free Trade Unions [Svetlana PETROVIC]; Federation of Trade Unions [Vanco MURATOVSKI]; Trade Union of Education, Science and Culture [Dojcin CVETANOSKI]
a yellow sun (the Sun of Liberty) with eight broadening rays extending to the edges of the red field; the red and yellow colors have long been associated with Macedonia
Having a small, open economy makes Macedonia vulnerable to economic developments in Europe and dependent on regional integration and progress toward EU membership for continued economic growth. At independence in September 1991, Macedonia was the least developed of the Yugoslav republics, producing a mere 5% of the total federal output of goods and services. The collapse of Yugoslavia ended transfer payments from the central government and eliminated advantages from inclusion in a de facto free trade area. An absence of infrastructure, UN sanctions on the downsized Yugoslavia, and a Greek economic embargo over a dispute about the country's constitutional name and flag hindered economic growth until 1996. GDP subsequently rose each year through 2000. In 2001, during a civil conflict, the economy shrank 4.5% because of decreased trade, intermittent border closures, increased deficit spending on security needs, and investor uncertainty. Growth averaged 4% per year during 2003-06 and more than 5% per year during 2007-08. Macedonia has maintained macroeconomic stability with low inflation, but it has so far lagged the region in attracting foreign investment and creating jobs, despite making extensive fiscal and business sector reforms. Official unemployment remains high at 32%, but may be overstated based on the existence of an extensive gray market, estimated to be more than 20% of GDP, that is not captured by official statistics. In the wake of the global economic downturn, Macedonia has experienced decreased foreign direct investment, lowered credit, and a large trade deficit, but the financial system remained sound. Macroeconomic stability was maintained by a prudent monetary policy, which kept the domestic currency at the pegged level against the euro, at the expense of raising interest rates. As a result, GDP fell in 2009.
general assessment: competition from the mobile-cellular segment of the telecommunications market has led to a drop in fixed-line telephone subscriptions
domestic:
combined fixed-line and mobile-cellular telephone subscribership approaching 150 per 100 persons
Army of the Republic of Macedonia (ARM): Joint Operational Command, with subordinate Air Wing (Makedonsko Voeno Vozduhoplovstvo, MVV); Special Operations Regiment; Logistic Support Command; Training Command (2010)
Kosovo and Macedonia completed demarcation of their boundary in September 2008; Greece continues to reject the use of the name Macedonia or Republic of Macedonia
major transshipment point for Southwest Asian heroin and hashish; minor transit point for South American cocaine destined for Europe; although not a financial center and most criminal activity is thought to be domestic, money laundering is a problem due to a mostly cash-based economy and weak enforcement
The online Factbook is updated bi-weekly. ISSN 1553-8133
For additional information on government leaders in selected foreign countries, go to World Leaders.
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