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. The United States recognized Macedonia by its constitutional name, Republic of Macedonia, in 2004 and 97 other nations have as well. 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
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; 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/DUI 10.2%, PDSh/DPA 5.9%, other 12.1%; seats by party - VMRO-DPMNE-led block 63, SDSM-led block 27, BDI/DUI 18, PDSh/DPA 11, PEI 1
Albanian Democratic Resistance or PDK [Rufi OSMANI]; 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]; Internal Macedonian Revolutionary Organization--Democratic Party for Macedonian National Unity (VMRO-DPMNE) [Nikola GRUEVSKI]; Liberal Democratic Party or LDP [Risto PENOV]; 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-DZINGO]; Union of Roma of Macedonia [Amdi BAJRAM]; United for Macedonia or OM [Ljube BOSKOVSKI]; VMRO-Macedonian [Borislav STOJMENOV]; VMRO-People's Party or VMRO-NP [Ljubco GEORGIEVSKI]
Federation of Free Trade Unions [Rasko MISHKOSKI]; Federation of Trade Unions [Zivko MITREVSKI]; Trade Union of Education, Science and Culture [Yakim NEDELKOV]
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. 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 remains high at 31.7%, 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. However, as a result of conservative fiscal policies and a sound financial system, in 2010 the country received slightly improved credit ratings. Macroeconomic stability also was maintained by a prudent monetary policy, which kept the domestic currency at the pegged level against the euro, while interest rates were falling. As a result, GDP growth was modest, but positive, in 2010.
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 115 per 100 persons
public television 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 broadcasting; 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 functioning (2010)
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