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, but the issue of the name remained unresolved and negotiations for a solution are ongoing. Since 2004, the United States and over 130 other nations have recognized Macedonia by its constitutional name, Republic of Macedonia. 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 ethnic Albanian population and led to the internationally brokered Ohrid Framework Agreement, which ended the fighting and established guidelines for the creation of new laws that enhanced the rights of minorities. Fully implementing the Framework Agreement, maintaining momentum on democratic reforms, and stimulating economic growth and development continue to be challenges for Macedonia, although progress has been made 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
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, 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; the leader of the majority party or majority coalition usually elected prime minister
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 (123 seats; all members elected by popular vote from party lists based on the percentage of the overall vote the parties gain in each of six electoral and three diaspora districts; members serve four-year terms)
elections:
last held on 5 June 2011 (next to be held by June 2015)
election results:
percent of vote by party - VMRO-DPMNE-led block 39%, SDSM-led block 32.8%, BDI 10.2%, PDSh 5.9%, other 12.1%; seats by party - VMRO-DPMNE-led block 56, SDSM-led block 42, BDI 15, PDSh 8, RDK 2
highest court(s): Supreme Court (consist of NA judges); Constitutional Court (consists of 9 judges)
judge selection and term of office:
Supreme Court judges nominated by the Judicial Council, a 7-member body of legal professionals, and appointed by the Assembly; judge tenure NA; Constitutional Court judges appointed by the legislature for nonrenewable, 9-year terms
subordinate courts:
Courts of Appeal; Basic Courts
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
Macedonia is vulnerable to economic developments in Europe - due to strong trade ties - 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 the Socialist Federal Republic 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. Since then, 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 has remained consistently high at more than 31% since 2008, but may be overstated based on the existence of an extensive gray market, estimated to be between 20% and 45% of GDP, that is not captured by official statistics. In the wake of the global economic downturn, Macedonia has experienced decreased foreign direct investment and a large trade deficit. However, as a result of conservative fiscal policies and a sound financial system, in 2010 the country credit rating improved slightly to BB+ and was kept at that level in 2011-12. However, macroeconomic stability has been maintained by a prudent monetary policy, which keeps the domestic currency pegged against the euro. As a result, GDP growth was modest, but positive at about 3% both in 2010 and 2011, and inflation was under control. The government loosened fiscal policy in 2012 and the budget deficit expanded to 3.5% of GDP.
note:official data from Ministry of Finance; data cover central government debt; this data excludes debt instruments issued (or owned) by government entities other than the treasury; includes treasury debt held by foreign entitites; excludes debt issued by sub-national entities, as well as intra-governmental debt; there are no debt instruments sold for social funds
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 about 130 per 100 persons
public TV broadcaster operates 3 national channels and a satellite network; 5 privately owned TV channels broadcast nationally using terrestrial transmitters and about 15 broadcast on national level via satellite; roughly 75 local commercial TV stations; large number of cable operators offering domestic and international programming; public radio broadcaster operates over multiple stations; 3 privately owned radio stations broadcast nationally; about 70 local commercial radio stations (2012)
Army of the Republic of Macedonia (ARM; includes General Staff and subordinate Joint Operational Command, Training and Doctrine Command, Special Operations Regiment) (2012)
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
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