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The Use of EU Funds in Macedonia

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The Use of EU Funds in Macedonia The use of EU funds in Macedonia Efficiency, impact and absorption capacity и Collection of studies Working version European Policy Institute November, 2012 Contents Emilija Taseva: IPA COMPONENT I FOR EUROPEAN INSTITUTIONS GUARANTEEING DEMOCRACY, RULE OF LAW, HUMAN RIGHTS, PROTECTION OF MINORITIES IN REPUBLIC OF MACEDONIA .................................................................................................................................... 5 Introduction ............................................................................................................................................................ 5 Enlargement Policy and Pre-accession Assistance: Copenhagen Political Criteria in Focus ... 7 IPA strengthening democracy, rule of law, human rights and protection of minorities in Republic of Macedonia 9 Implementation of IPA Component I: initial experiences and prospects for efficiency, absorption and impact ..................................................................................................................................... 12 Conclusions .......................................................................................................................................................... 15 Bibliography ......................................................................................................................................................... 16 Drilon Iseni: IPA - “INCENTIVE FOR PROSPEROUS ACTIONS”, CASE STUDY:CROSS-BORDER COOPERATIONIPA PROGRAMME MACEDONIA - ALBANIA 2007-2013 ...................... 19 ABSTRACT ............................................................................................................................................................ 19 LITERATURE REVIEW ..................................................................................................................................... 20 RESEARCH METHODOLOGY .......................................................................................................................... 21 3. ADMINISTRATIVE CAPACITIES OF MACEDONIA ............................................................................. 22 CONCLUSIONS ..................................................................................................................................................... 34 BIBLIOGRAPHY ................................................................................................................................................... 36 Mate Gjorgjievski, Mila Stankovik: IPA FUNDS IN THE REPUBLIC OF MACEDONIA: POTENTIAL AND CONSTRAINTS FOR THE REGIONAL DEVELOPMENT ..................... 38 Introduction ......................................................................................................................................................... 38 2. Operational Programme for Regional Development: a tool for strengthening administrative capacities or more?............................................................................................................. 39 3. Real life of Projects- Rate of absorption and effectiveness of implementation .................... 49 Conclusions and recommendations ............................................................................................................ 56 Bibliography ......................................................................................................................................................... 58 Biljana Stojanoska: CONTRIBUTION OF IPA FUNDS TO THE HUMAN CAPITAL DEVELOPMENT IN THE REPUBLIC OF MACEDONIA .......................................................... 60 Introduction ......................................................................................................................................................... 60 Methodology ........................................................................................................................................................ 61 Operational Programme for Human Resources Development......................................................... 61 Priority Axis 1 – Employment ....................................................................................................................... 64 Measure 1.3 Support to the Employment of Young People, Long-term Unemployed and Women in the Labour Market ....................................................................................................... 66 Priority Axis 3: Social Inclusion – Promoting an Inclusive Labour Market ................................. 75 Priority axis 4. Technical assistance. .......................................................................................................... 79 Participation of the civil society in the monitoring of the Component ......................................... 80 Conclusion............................................................................................................................................................. 81 References ............................................................................................................................................................ 83 Natasha Daniloska, Snezana Milosheska- Kostadinoska: CALCULATION OF GROSS VALUE ADDED (GVA), NET VALUE ADDED (NVA) AND LABOR PRODUCTIVITY OF IPARD BENEFICIARIES IN REPUBLIC OF MACEDONIA .................................................................... 85 Resume of the research: .................................................................................................................................. 85 Literature review and research results ..................................................................................................... 86 IPARD Institutional and Legal frame for the Republic of Macedonia ............................................ 90 Research results: ................................................................................................................................................ 92 Methodology ........................................................................................................................................................ 96 Conclusions .......................................................................................................................................................... 98 Bibliography ....................................................................................................................................................... 100 Annex 1. Priorities and measures, with groups and sub-groups of investments that are included in the National Programme for agriculture and rural development 2007-2013 . 102 Annex 2. Questioner No: 1 for collecting data from IPARD beneficiaries with primary agricultural products from diary animals and fattening animals ................................................. 106 Annex 3. Questioner No. 2 for collecting data from IPARD beneficiaries with primary agricultural product from plants ............................................................................................................... 109 Vanco Uzunov: THE ABSORPTION CAPACITY OF THE REPUBLIC OF MACEDONIA FOR UTILIZATION OF IPA FUNDS – GENERAL ISSUES .............................................................. 112 Summary ............................................................................................................................................................. 112 Introduction ....................................................................................................................................................... 113 2.1. The absorption capacity of the new EU member states 116 2. The absorption capacity of the Republic of Macedonia for IPA funds .................................... 123 2.2. The period after 2007 127 References .......................................................................................................................................................... 142 Emilija Taseva: IPA COMPONENT I FOR EUROPEAN INSTITUTIONS GUARANTEEING DEMOCRACY, RULE OF LAW, HUMAN RIGHTS, PROTECTION OF MINORITIES IN REPUBLIC OF MACEDONIA Introduction The accession towards EU is a cumbersome process. It requires fulfillment of EU political, economic criteria and ability to assume obligations from membership implying broad reforms in all spheres of the society: political, economic, social, cultural. The previous enlargements showed that fulfillment of the Copenhagen political criteria that require reforms of the institutions guaranteeing democracy, rule of law and human rights, protection of minorities are most challenging ones and as such have absolute priority. EU provides political and financial support, the EU Instrument for Pre-accession Assistance which was introduced, efficiently targets the interventions which concerned the attainment of political criteria. However, granting of assistance by EU is only the first step, a lot remains to the national institutions and ensuring ownership, absorption capacity are key for successful utilization of the funds thus reaching the desired effects and benefits for the society. Aid and technical assistance belong to the “mechanisms of Europeanization” that the EU uses in transferring to the applicant countries its principles, norms, and rules, as well as in shaping their institutional and administrative structures1. It is a conditionality instrument that provides for considerable support to the countries applicants for EU membership in the costly reforms for alignment with European acquis,
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