Macedonia - Moving to Faster and More Inclusive Growth A Country Economic Memorandum : Main Report and Annex

Abstract

This report deals with medium and
 long-term growth issues rather than the challenges posed by
 the world financial crisis, the structural policy options
 presented in the report become even more important in that
 context, and can help to partially mitigate the impact of
 the crisis on Macedonia. Section B looks at poverty and
 inequality issues. Section C examines Macedonia's past
 growth in terms of total factor productivity analysis,
 drawing the connection with labor and capital, and within
 these broad factors, human capital and infrastructure. It
 also compares Macedonia's growth to a successful
 regional comparator, Slovakia. Section D benchmarks
 Macedonia's performance in important policy areas that
 could affect growth relative to comparator countries. It
 also estimates how much improved performance in these areas
 could raise potential growth. Section E looks at efficiency
 in public expenditure and public investment important issues
 in raising growth. Section F summarizes these analyses and
 makes some initial recommendations.