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Multidimensionalpoverty Analysis Republic Of Photo: Blagojč e Najdovski MULTIDIMENSIONAL POVERTY ANALYSIS REPUBLIC OF MACEDONIA Biljana Petrovska Mitrevska, MA Emelj Tuna, PhD Federation of F armers of the Republic of Macedonia – Skopje, 2017 TABLE OF CONTENTS 1. INTRODUCTION ................................ ................................ ................................ ................................ 2 1.1. Analysis background ................................ ................................ ................................ ................... 2 1.2. Methodological approach and analytical tool ................................ ................................ ................ 3 2. GENERAL INFORMATION ................................ ................................ ................................ .................... 4 3. MACEDONIAN POVERTY – LITERATURE AND ANALYTICAL DISCUSSION ................................ .................... 4 3.1. Development Context ................................ ................................ ................................ ................. 4 3.2. The fourth dimensions of poverty ................................ ................................ .............................. 21 4. ANALITIC CONCLUSION ................................ ................................ ................................ .................... 40 4.1. Vulnerable groups ................................ ................................ ................................ .................... 40 4.2. The main deprivations ................................ ................................ Error! Bookmark not defined. 4.3. Underlying causes and effects ................................ ...................... Error! Bookmark not defined. 5. REFERENCES ................................ ................................ ...................... Error! Bookmark not defined. 1 1. INTRODUCTION 1.1. B ackground analysis “The poorest countries of Europe are usually those that were severely affected by the collapse of socialistic economic systems. As such country, Macedonia is a country in Southeast Europe which is one of the poorest countries in Europe (7 of 10 countries l isted in the World A tlas database). The country earned its independence in 1991 as one of the successor states of the former Yugoslavia. Macedonia is a landlocked nation that is bordered by Serbia, Bulgaria, Greece, and Albania. Since independence, the cou ntry has undergone dramatic economic reform. The country has gradually improved its economy over the years with successful policies implemented by the government. Macedonia has an open economy where trade accounts for 90% of the GDP in recent years. Howeve r, in spite of the reforms, the country has a high unemployment rate of 27.3% as of 2015 and a high poverty rate. 72% of the people of the country have reported that they manage their living standards with difficulty ”, World A tlas . This indicates to the ne ed of mapping the general poverty situation, and identify ing the vulnerable and depraved groups in the country. The aim of this report is to serve as the initial record in identifying the poverty dimensions in the Republic of Macedonia. This aim will be ac complished following the multi - dimensional poverty analytical tool and the indicators and dimensions of poverty on the macro (country) level in order to describe the socio - economic, environmental, political and institutional context (Box 1); with a particu lar emphasis on the poverty perspective of people living in rural areas, which is the target population in this report. Th is report has been prepared by the Federation of F armers of the Republic of Macedonia in partnership with the Faculty of Agricultur al Science s and Food and in consultation with the Macedonian Anti - Poverty Platform. It contains brief description of the general macro - economic indicators and conditions in the Republic of Macedonia, the rural areas in the country, short description of the an alytical tool and approach, as well as the poverty indicators on macro and rural level. Since this is the first attempt to depict this important issue in Macedonia, the report will be based on official data sources , such as the State S tatistical O ffice (r eports, censuses etc.), World Bank, EU Commission Reports, Report by Freedom House, r eport by Transparency International, UNDP, s urvey made by the Center for R esearch and P olicy M aking, NGO Solidarnost, NGO Macedonian Anti - Poverty Platform , NGO Federation of F armers of the Republic of Macedonia, literature, strategies in relation to the topic in the country and the Western Balkan region. 2 1.2. Methodological approach and analytical tool Multi - Dimensional Poverty analytical tool – four dimensions of poverty (We Effect programme instructions 2018 - 2021) 1. RESOURCES – not having access to or power over resources that can be used to sustain a decent living standard and improve one’s life. Resources can be both material and non - material – e.g. a decent income , ca pital , being educated or trained , professional skills , being healthy , time and spare time , social and family networks , marital status , etc. 2. OPPORTUNITIES and CHOICE – the possibility to develop and/or use your resources so as to move out of poverty. Acc ess to e.g. social services (including accessibility to services), to infrastructure , to capital , to land , to social status , or to natural resources affects the opportunities and choices. 3. POWER AND VOICE – the ability of people to express their concerns , needs and rights in an informed way, and to take part in decision - making that relate to these concerns. Power is a relational concept that allows us to better understand socio - cultural hierarchies and relations , of which gender is one, and others include , for example , age, caste, class, religion, ethnicity, race/skin colour, ability/disability and sexual identity. Reinforcing forms of discrimination based on such economic and socio - cultural relations may increase an individual’s poverty in this sense. 4. HUMAN SECURITY – violence and insecurity are constraints to different groups’ and individuals’ possibilities to exercise their human rights and to find paths out of poverty. 3 2. GENERAL INFORMATION 3. MACEDONIAN POVERTY – LITERATURE AND ANAL YTICAL DISCUSSION 3.1. Development c ontext Poverty is dynamic. People move in and out of situations of poverty. This implies that it is important not only to understand the causes for why a person is poor and what opportunities exist to move out of poverty, but equally so what resources people have against moving into poverty. Hence, the understanding of multidimensional poverty needs to include the risks that people living in or just “above” poverty are exposed to and conclude on the extent to which as well as how people livin g in poverty are vulnerable. People living in poverty are also particularly exposed to risks related to climate change and environment degradation as well as conflict and tensions, add ing to their vulnerability. T his section includes analyses of developmen t context: political and institutional context, e conomic and social context, environmental context, conflict and peaceful context . P olitical and institutional context The political and institutional context includes formal institutions, rule of law, and human rights but also social norms and informal institutions and power structures According to the 2016 EU Report on the Republic of Macedonia , democracy and rule of law have been constantly challenged, in particular due to state capture affecting the functioning of democratic institutions and key areas of society. The country suffers from a divisive political culture and a lack of capacity for c ompromise. There is b ig influence of politics o n law institutions and public administration . Strong political commitment is necessary to guarantee the independence of the public administration and respect for the principles of transparency, merit and equit able representation. Corruption remains prevalent in many areas and continues to be a serious problem in the Republic of Macedonia . Freedom of expression and the situation of the media remain a serious challenge in the current political climate. The patri archal structures and traditional social norms are still perpetuated, evident in low employment rate of women, the low proportion of women property owners especially in rural areas, and lack of women in decision making. 4 The most traditional social norms ar e visible in rural areas , and rural women , who have a hard life, limited offer in terms of public services and are living in poor conditions, are likely to leave the village , unless new economic opportunities and possibilities for employment are offered . Overview of the political and institutional development Politics in the Republic of Macedonia occur within the framework of a parliamentary representative democratic republic , with the Prime Minister as the head of the G overnment , and of a multi - party system . Executive power is exercised by the G overnment. Legislative power is vested in the P arliament . The j udiciary is independent of the executive and the legislature . At the moment , the c reators of the politic al life in the Republic of Macedonia are the biggest Macedonian parties : Social Democratic Union of Mace donia (SDSM) and Internal Macedonian Revolutionary Organization – Democratic Party for Macedonian National Unity (VMRO – DPMNE), and 4 Albanian parties : Democratic Union for Integration (DUI), Democratic Party o f Albanians
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