publication June 17, 2019

North Macedonia: Country Partnership Framework 2019-2023

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The objective of the Country Partnership Framework (CPF) is to support North Macedonia’s ability to achieve faster, inclusive, and sustainable growth and provide its citizens with greater opportunities for a better life. The CPF aims to support the Government’s program and medium-term strategy, which present a vision of accelerated economic growth - with better employment opportunities, increased social cohesion and inclusion, and a plan to tackle persistent bottlenecks.

At a Glance

The historic resolution of North Macedonia's long-standing name dispute with Greece opens new opportunities for the country to promote the development of a dynamic economy that is well integrated into the region - and Europe more widely. North Macedonia will be able to capitalize on this renewed outlook by building on past reforms that have produced solid macroeconomic fundamentals, job creation, and an open economy that has attracted foreign investment. However, the transition to a well-functioning and inclusive market economy is not yet complete.

The Country Partnership Framework (CPF) aims to support North Macedonia’s ability to achieve faster, inclusive, and sustainable growth and provide its citizens with greater opportunities for a better life. The CPF supports the Government’s program and medium-term strategy, which present a vision of accelerated economic growth with better employment opportunities, social cohesion and inclusion, and a plan to tackle persistent bottlenecks.

The Government strategy is consistent with the World Bank Group’s vision outlined in the Systematic Country Diagnostics (SCD) for North Macedonia of a better-connected, vibrant domestic economy engaged in the region and beyond as it secures its footing in areas of strong comparative advantage.

In Focus

This CPF sets out the World Bank Group’s approach to supporting the reform agenda in North Macedonia over January 2019–June 2023. The CPF builds on the results and lessons of the previous World Bank Group Country Partnership Strategy. The new CPF seeks to address the priorities identified by the recently completed Sistematic Country Diagnostic for North Macedonia.

The CPF is based on three interconnected focus areas that will help North Macedonia improve the environment for a dynamic private sector to enhance export-led growth, strengthen human capital for inclusive development, and build sustainability.

  • The first focus area aims to remove some of the bottlenecks that prevent the emergence of a dynamic and competitive private sector by improving connectivity and access to markets) through activities that support “hard” and “soft” trade connectivity and strengthen local firms’ technological uptake, innovation, access to finance, and capacities.
  • The second focus area will support the development of human capital and skills to boost labor productivity and encourage more inclusive labor market participation. The CPF will also improve the quality and relevance of education, as well as the access to and quality of social services.
  • The third focus area will mitigate fiscal and environmental vulnerabilities to enhance fiscal sustainability by strengthening fiscal and public financial management  and environmental sustainability by helping accelerate the transition to a more sustainable energy mix.

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Download full report (pdf).