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a INTRODUCTION i

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c In 1999 the Government of Macedonia could see that it had an exploding problem of unemployment on its hands. Equipped only with the methods of a centrally planned economic a strategy it was baffled at how to confront the monster. The workforce needed to be mobilized to take a more active role in economic development and to use active labor market measures to adjust to M the upcoming economic changes.

n Macedonia had worked with the United States Department of Labor (USDOL) for many years i making some basic updates to the National Employment Bureau and its local offices, like converting t to computerized data management. It asked USDOL to help the country implement a comprehensive strategy to address workforce adjustment that had given good results in other East European n countries. The USDOL model did not promise a few short-term jobs or quick fixes, but rather an e intensive introduction of new ways of doing business. These are ways of stimulating individual and community initiative to create jobs, assist transition to new jobs, and to help save jobs. m The Macedonia mission of the United States Agency for International Development (USAID) agreed p to fund the project. o l Partners for Economic Development in Macedonia (PRiSMa) was organized with the cooperation e of key social partners from the public, private enterprise and labor sectors. They have worked v together at the national and local level to learn and adopt effective approaches to joint problem e solving. The most critical approach they have learned is collaborative initiative in many forms. The partners now recognize their own responsibility for their own economic futures. D

The pages that follow tell the basics of the story of PRiSMa. Underneath, there are thousands of c i stories of lives that have changed because of the project activities to date. Although American funding is coming to an end, the Partnership for Economic Development in Macedonia belongs to m Macedonia and lives on. o

PRiSMa has built capacity that endures in Macedonia at local, regional and national levels. It has n paved the way for a series of innovations that can bring the economy onto the world stage. Each o partner is to be congratulated for the piece of the larger success he or she has added. Each must c remember that continued success will come only from continuing to collaborate constructively on E innovative solutions.

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a i CONTENTS n

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c Macedonia: an Emerging Economy Needing Better Labor Flexibility . . . . . 8 a

PRiSMa Project Design and Funding ...... 10 Local Economic Development Component (LED) M Rapid Response/Worker Adjustment Component (RR/WA)

Enterprise Competitiveness Component n Steering Committee Sees USA Examples i

t Partners and Structure ...... 13 Local Partners n Steering Committee e The National Team PRiSMa Staff m

p PRiSMa Results ...... 16 o General Results l Results in Local Economic Development e Results in Rapid Response/Worker Adjustment v Results in Enterprise Competitiveness/Quick Start e Training and Reference Materials

PRiSMa Iincluded in the Macroeconomic Policy of Macedonia (2001-2004) D Interim Evaluation

c i Sustainability ...... 26 Regional Teams Institutionalize All Model Components m The Rapid Response Legislation Task Force o Integrated Institutionalization n

Appendix 1 Agreement of Cooperation o

Appendix 2 PRiSMa Community Rounds by Component c Appendix 3 Performance Monitoring Data E Appendix 4 Eastern Europe Task Force Sector Analysis

Appendix 5 MSI Evaluation Executive Summary r

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Macedonia: an Emerging Economy Needing Better Labor Flexibility

Macedonia is a land-locked country, sharing borders with Albania, Serbia and Montenegro, Bulgaria, and Greece. In 1994, ethnic Macedonians (67%) dominated Macedonia's 2,050,000 population; the other nationalities represented: Albanians (23%), Turks (4%), Roma (2%), Serbs (2%) and others (2%). A revised census, in compliance with international standards, has been reported, which may or may not show different proportions. Macedonia's national population growth rate is estimated at 0.43 % per annum (2001), with a net migration of -1.54 migrants per 1,000 people. Life expectancy, at birth, for the total population is 74 years, although lower among some minority groups. Macedonia's GDP is primarily based on trade and services (63%), followed by industry (25%) and agriculture (12%). In general, industries are concentrated on raw material production (coal, metallic chromium, lead, zinc, and ferro-nickel), textiles, wood products, food processing and tobacco.

Macedonia, one of Yugoslavia's poorest republic, produced only 5% of the total output of goods and services. The 1990 breakup of former Yugoslavia had serious economic consequences in both political and economic terms. There was a sharp drop in GDP accompanied by extremely high inflation rates in the early 1990's. Exports stagnated. Imports have grown steadily, leading to an increasingly widening foreign trade deficit. The 1999 deficit was approximately $400 million. By 2002, the country had a trade deficit of $600 million.

Macedonia's economy stabilized in 1996, following a serious economic downturn in the preceding five years. There was accelerated real growth (1.2% in 1996 to 4.3% in 2000) and a corresponding drop in inflation from (600% in 1992-94 to only 0.6 percent in 1997-99). This ended with Kosovo crisis in 1999 and the economy was further impacted by the 2001 conflict within the country. The resulting growth rate was negative, at -4.6% (2001).

The Kosovo crisis bringing an influx of almost 400,000 refugees in 1999, and then an insurgency launched by ethnic Albanians in 2001, significantly damaged the macro-economic prospects of the country. Reforms stagnated; foreign direct investment fled. The Gross domestic product averaged 1.05% during the 1997 to 2001 period and dropped to -4.60% during the crisis year 2001. It was up to 3.00% in 2002.

Doors Open in Gostivar

In the first half of 2001 the Local PRiSMa Team in Gostivar selected the LED project "Wood Doors and Windows Production Line". Because of the civil unrest at that time, the project was delayed. However the team and the investor, Mazraca Enterprise, did later implement the project idea successfully. In September 2003 work began in the production line. The machine park was gradually completed and the job openings estimated for the project began to be filled. Mazraca Enterprise went on to help found an association established for the support of the Construction and Construction Materials Production organized by the PRiSMa Regional Team in Western Macedonia. Through this association business leakage will be strengthened and more jobs created 9

a Nearly half the population lives in households with at least one unemployed labor force member. i The majority of the unemployed are young new entrants to the labor force. Unlike many countries n in the region, layoffs have comprised a small portion of the unemployed due to slow privatizations. o As privatization finally comes about with more aggressive government action following the 2002 d election, older worker make up a larger share of the unemployment rolls. Unemployment has been e above 30% since 1998, with a surge above 40% during 2001. Gradually, the unemployed population c is becoming one containing more redundant workers than new entrants to the labor force. The duration of unemployment is long in comparison to most European countries, although the maximum a benefit period was reduced from 18 to 14 months in March 2003.

M At present, Macedonia's primary economic concerns are

typical of a poor and less developed country. The continued political uncertainty and extensive corruption, n i regional as well as internal, are substantive factors

impinging on its development. According to the draft- t version of the macro-economic policy of the country for the n past several years, key operational objectives are to: e increase employment, stimulate greater flexibility of the labor market, and adopt support measures for the export- m oriented companies. p

o A World Bank Poverty Analysis of 1999 describes Macedonia, at the time the PRiSMa Project was l launched, as having had a weak entry into statehood, and as one of the poorest Yugoslav Republics. e It was burdened by a cradle-to-grave social protection system that provided individuals with full v protection against income loss and other lifetime risks: guaranteed employment, child allowances, e free education and health care, and pensions upon retirement. However, unemployment was high compared with regional norms, and was concentrated among new entrants to the labor force. The D socialist worker management system gave the employed (or insiders) extensive powers to push up wages, restrict hiring and termination practices, out younger and less skilled workers. All of this had c been supported by remittances from Belgrade, or internal commerce within Yugoslavia. i

Upon dissolution of Yugoslavia, expectations remained the same despite the fact that traditional m supports had been gutted. Inflation rates soared; real wages declined; unemployment increased. o Not surprisingly, poverty increased from 4 percent of the population in 1991 to approximately 20 percent in 1996. And despite real declines in wages, labor costs (gross wages/GDP as well n hiring/firing restrictions, etc.) remain higher than in neighboring countries with similar levels of o income. c

In this context Macedonia's Ministry of Labor and Social Policy (MOL) established a relationship E with the United States Department of Labor (USDOL) for assistance in modernizing its National r Employment Bureau. Material and technical assistance led to automation of the enrollment system's data processing. Additional Technical assistance improved the Vocational Guidance services offered. o f Realizing that a more comprehensive approach would be needed to dislodge the dependent ways of thinking that perpetuated high unemployment, MOL embraced USDOL's Integrated Worker s Adjustment Model. r

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PRiSMa Project Design and Funding

Transition economies, especially those moving out of a centrally planned model, require a focus on local level measures to help communities assume responsibility to: (1) build on local assets creating or expanding new enterprises and jobs; (2) facilitate the transition of at risk workers into new jobs within their company or into the local labor market through training or placement assistance; and (3) provide job specific skill upgrades, to help jump start stagnant firms into becoming more competitive. The United States Department of Labor (USDOL) has developed a model of comprehensive labor redeployment techniques to establish at the local level the methods for implementing a three-component, integrated approach. The methods are derived from a series of best practices that have evolved in the United Sates, Canada and Eastern Europe.

Earlier efforts to develop an integrated workforce adjustment model in Eastern Europe led to a USDOL conclusion,"…a comprehensive strategy, rather than narrowly focused or piecemeal adjustment approaches, could achieve more successful worker, community and enterprise adjustments in CEE countries undergoing economic restructuring and privatization, and lay the foundation for a permanent adjustment mechanism to deal with these issues in the future." To date, all three of the model's components have been implemented only in Hungary (the USDOL pilot adjustment country), and in Macedonia. Macedonia's program was funded by the United States Agency for International Development (USAID) under its South-East Europe Development Fund (SEED). The comprehensive strategy is embodied in three technical assistance components:

- Local Economic Development (LED) promotes economic revitalization in communities severely impacted by economic dislocation.

- Rapid Response/Worker Adjustment (RR/WA), implemented through Labor Management Adjustment Committees (LMAC), promotes cooperative relationships between labor and management representatives in downsizing enterprises, in order to address the employment needs of redundant workers.

- Enterprise Competitiveness (EC) provides training to workers and managers in new technologies in order to assist "I would like to express my gratitude to the PRiSMa project for providing me with an firms in adjusting to smaller workforces while maintaining opportunity to obtain a truck driving license and productivity. One of the six activities under this component start working as a self employed driver." is worker training/retraining using job site analysis, known as Tome Jovanovski, previously employed in Dimko Mitrev Ltd., Veles Quick Start (QS). Another is Human Resource Analysis.

Local Economic Development Component (LED)

The Local Economic Development Component (LED) of the USDOL Adjustment Model helps communities experiencing restructuring, downsizing and enterprise closures to develop and use a systematic business growth and job creation strategy to begin or expand local economic development efforts. The objectives of the four workshop series are:

Workshop 0, Team Building, Participants organize into a team, which will use a process of brainstorming and consensus decision making to design and implement selected project ideas. 11

a Workshop A, Analyze Local Business Factors. Participants analyze the factors (e.g., i access to capital, business environment, infrastructure, human resources and quality of life) that n affect business conditions in their communities. o

Workshop B, Analyze Economic Renewal Principles, helps the participants understand d the use of four proven economic renewal principles to revitalize their local communities: (1) plug the e leaks, (2) support existing businesses, (3) encourage new enterprise creation; and (4) recruit c compatible new businesses. a Workshop C, Generate Project Ideas. Participants generate several specific economic development project ideas. Four potential and equally achievable project ideas are selected for further M feasibility study.

Workshop D, Evaluate Project Ideas. Participants evaluate the high priority project ideas n i and choose, by consensus, one project to implement in their community to best increase local employment opportunities and to teach them implementationskills. t Workshop E, Project Implementation. The output is a project implementation plan to n be carried out by an action team selected from the larger team. e Workshop F, Sustainable Economic Development. Participants examine the success of the selected project and explore local options to develop a plan for continued economic development m work in their community or region. p

o The first four of the seven workshops produce a "Blueprint for Action" for one or more specific l economic renewal projects that the community can implement. In the process, the team learns how e to work together to form a vision and a plan for local economic development. In the fifth workshop they expand the use of the skills they have learned. Between workshops the real work is done as v teams do homework, learn more about their community, form expended partnerships and make their e plans into action. D

c i Zdenka from Negotino Planned to Employ 10, but employed 20 m In the community of Negotino the Enterprise Competitiveness Component was conducted in the cable producing Zdenka DOOL Company. This is what the general director said after the Quick Start training o was organized in his company: n "When the training began we agreed to train twenty young, inexperienced workers registered as unemployed at the employment office. We received a list of 20 for our selection. The young people o went through training and successfully finished it in a very short time. We were planning to make a c selection of the best 10. They all proved to be trained very well, there was even some kind of competition among them. So in the end, we decided to hire them all. This kind of fast and efficient E training was very important for the company because we needed to employ staff and were obliged to meet the production deadlines in the contracts we had signed with our partners. The work quality is so good we have enough orders to hire 15 more workers. r Zdenka, Negotino, 11 September 2003 o f

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Rapid Response/ Worker Adjustment Component (RR/WA)

A Rapid Response Worker Adjustment Component provides employment services prior to actual layoff. In Macedonia, the program was implemented under the leadership of the National Employment Bureau, through its nation-wide network of Efficient Training is Winner local employment offices. In Extract from the Report written by the Ograzden Company Director on each labor office, an industrial implementing the Quick Start in his company: adjustment specialist (IAS) "Eight workers were included in the training. They went through training successfully and coped with all the tasks set by trainers. The training was leads a local team organized on-site by our experienced workers. The theoretical part was implementing the Rapid organized and conducted by the vocational school teachers with whom we have very good cooperation. The practical training was conducted in our production Response PRiSMa components plant. The evaluation was prepared and conducted by the Local PRiSMa Team. in enterprises throughout the The tests were successfully passed and the workers were trained for construction local area. The local IAS is wood steaming and drying process managers. This project, fully provided well trained work force immediately able to start production work." backed up by a regional Kosta Bugarinovski, Ograzden Construction Wood Producer, Berovo and/or national team. The PRiSMa local teams tested the effectiveness of such services before a Macedonian Rapid Response Law was adopted in 2003.

To demonstrate this approach, Labor-Management Adjustment Committees (LMACs) were organized to facilitate worker adjustment in restructuring enterprises. The LMAC is an ad hoc in-plant group of workers and managers that organizes and coordinates the delivery of adjustment services with the help of an IAS and local team.

Enterprise Competitiveness Component

The Enterprise Competitiveness (EC) Component helps business enterprises to become more productive and competitive in a global economy. Along with national partners many strategies can be promoted to improve the competitive advantage of small enterprises. The technique introduced to local teams in Macedonia included: improving labor management relations with interest-based problem-solving, increasing productivity and reducing costs with new technology, improving human resource utilization by assessing training needs and quickly training workers in new technology and work processes as needed by employers.

Steering Committee Sees USA Examples

In July 1999 a Macedonian delegation traveled to the United States on a study tour organized by the USDOL under the USAID-sponsored World Learning Program. The delegation was able to see on-site implementation of the Rapid Response/Worker Adjustment and Local Economic Development Programs in the state of Ohio. They witnessed delivery of other active measure services to dislocated workers in that state. The delegation comprised the Steering Committee members from labor, public services and private sector. Their increased understanding broadened the base of support for the project. Partners and Structure

Local Partners

The strength of Integrated Model institutionalization depends on the local skill base created through demonstration training. In each of the 30 communities, a core PRiSMa team was established: the IAS from the Employment Office, a representative of the local government, a representative of the local Unions, a representative of the local Ministry of Economy, and a representative of local private entrepreneurs. The local teams were essential in implementing all three components and were actively involved in all activities. Look to the PRiSMa website to see details about the 30 local teams' efforts. See Appendix 2 to understand the order of component implementation in communities.

There are over 3000 local partners implementing components of the model at the local level. They present a powerful structure able to continue variations of the Integrated Model to meet the future needs of Macedonia. They come from all sectors. At every step of activity team building programs were used to train partners unaccustomed to working together.

Steering Committee

A Steering Committee, made up of representatives of the National Partners, advised and promoted the project. A National Team was composed of experts at the National Employment Office, trained to implement all activities of the Integrated Worker Adjustment Model. They worked in close cooperation with the local PRiSMa teams "This is an exceptional experience which the employees established in each of the 30 communities acquired. The project implementation helped the management in training and provided a step forward to throughout Macedonia that have national human resource policy design. We hope that a large government local infrastructure. Local partners, numbers of companies around Macedonia will be able to have this positive experience and that we will have the representing the national partners as well as opportunity to use this method when we hire new local businesses, contribute to the organized workers again." implementation of the PRiSMa Worker Zoran Mangovski, Adjustment methods in each community. TERA TELEVIZIJA

The first Steering Committee, composed of partners from: the Ministry of Labor and Social Policy, the National Employment Bureau (NEB), the Chamber of Commerce and the Federation of Trade Unions, signed a Charter of Cooperation on July 1 1999. The following representatives signed the Charter on behalf of their respective institutions:

Sydney E. Smith The Department of Labor of the United States Stojan Trajanov The Ministry of Labor of Macedonia Slave Ivanovski The Ministry of Economy of Macedonia Strahil Arsovski The National Employment Office Jursit Rifat The Confederation of Trade Unions of Macedonia Aco Spasovski The Chamber of Economy of Macedonia 14

The agreement included obligations on part of the Macedonian partners to support local application of the model; funding came from the South East European Development (SEED) Fund of the United States Agency for International Development (USAID). The NEB was to take up a lead responsibility of learning the three component activities so as to facilitate implementation in the future. A delegation of Steering Committee Members visited United States programs designed to address worker adjustment issues in July 1999 and identified approaches desirable for Macedonia.

As the project evolved, additional members were invited to join the Steering Committee to reflect broadening of responsibilities for the complex model. Local Economic Development became a local responsibility after the passage of a law on Local Self Government in 2002. Business support was reflected in the National Enterprise Promotion Agency. Financing Macedonian application is directed to the Ministry of Finance. The final Steering Committee included the following members representing the institutions and partners taking up aspects of the integrated model in Macedonia:

Stojan Trajanov Undersecretary, Ministry of Labor and Social Policy Efka Indova Head of Department for Personnel, Legal, Financial and Administration Issues, Ministry of Labor and Social Policy, Sasa Sindilovski Head of Small and Medium Size Enterprise Department, Ministry of Economy Margarita Nikolovska Advisor to the Minister on Vocational Education Head of Unit for Strategy and Policy Development, Ministry of Education Goran Angelov President of the Association of Self Government Units (ZELS) Mile Stojmenkovic Director, National Employment Bureau Jursit Rifat Undersecretary, Federation of Trade Unions Aco Spasovski Secretary of the Economic Policy and Development Sector, Chamber of Commerce Ljubisa Nikolovski National Enterprise Promotion Agency (NEPA), Nikica Mojsoska Blazevski Assistant Head, Macroeconomic Policy Sector Ministry of Finance Amy Ramm Director, PRiSMa Project Elizabeta Markovic Project Management Specialist, USAID

They signed a new Agreement of Cooperation. (See Appendix 1)

Throughout the life of the project the need for cooperation among the social partners became increasingly apparent. By the midpoint the Steering Committee was able to identify spheres of interdependent responsibility with the goal of institutionalization of the entire integrated model.

Also sitting in the Steering Committee for periods of time were: Caroline Brearly, USAID (until "Even though we are aware that the project's mandate is something else and LED funds are awarded to a July 2001); Kiril Todorovski, NEB Manager (January community team that selected our project idea, we 2001 to March 2002) and Svetlana Jakimovska, believe that the effects would not have been as high if it wasn't for the professionalism, support and trust that NEB Manager (March to November 2002), and PRiSMa representatives have given us during all of this Marija Zarezankova, PhD, Head of Small and time." Medium Size Enterprise Department at the Ministry Mrs. Lence Gorgievska, of Economy (until June 2002). Graphical engineer at AD Kiro Dandaro 15

a The National Team i

n At the beginning of the project the Ministry of Labor and Social Policy and its National o Employment Office were the lead PRiSMa partners. A National Team was established at the National d Employment Bureau immediately upon the signing of the Initial Charter of Cooperation. The National e Team was trained in all three components of the USDOL Integrated Worker Adjustment Model and c repeated training upgraded their knowledge. In September, 1999 the National Team members and pilot community IASs attended training in neighboring Bulgaria and Hungary where similar programs a were already in progress. M In 2001 changes in the National Employment Bureau administrative structure led to de-emphasis

of the National Team's role. Local teams took up responsibility for coordinating implementation. In 2003 the National Team was n i New Radio Skills in Tetovo reconstituted by NEB management, and was made t "Radio Tetovo used Quick Start training to train eight employees. After the up of regional leaders as well training all the new trainees will be given the opportunity to get permanent n employment at Radio Tetovo. This training was very important for the existing as the national team e staff at Radio Tetovo since these trainees were professionally upgraded, lear- members. It is now taking ned new methods that they are practically implementing in their jobs." responsibility for Rapid m Abdilnaser Sanani, Director, Radio Tetovo Response implementation December 23, 2002 p over the long term. o l PRiSMa Staff e

A staff team trained by US experts guided the USDOL Model implementation. This professional v team gave training and technical assistance on all model components to the Macedonian partners. e Gradually, the local partners have assumed greater control. The staff at the PRiSMa Office included an American director and nine professional Macedonia staff. In the demonstration and D

implementation of the integrated model a team of US technical assistance experts assisted them. c i

Amy Ramm, Director 2000-2004 m Theresa Holdren, Director 1999-2000 o

Agron Alimi, Program Consultant, Western Region n

Filip Pashu, Program Consultant, Southern Region o

Goran Ivanov, Program Consultant, Eastern Region c Maja Blazev, Program Consultant, Northern Region E Lence Cadlovska, Communications Coordinator

Nevenka Rosomanova, Office Manager r Igor Cvetanovski, Logistics Specialist o Romela Popovic Trajkova, Enterprise Competitiveness Coordinator f Slavco Kujumdziev, Enterprise Competitiveness Assistant, Logistics Specialist

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Private Television Becomes More Competitive

I would like to extend our appreciation for all the training for TV presenters, TV masters and mix technicians organized in December. Employees from TV Kiss Tetovo attended the training. Having in mind our training needs related to some very specific segments of TV production, after the training we have come to the conclusion that what has been done was of great importance for their further professional engagement and careers. The TV presenter training gave the trainees new knowledge for the work before the camera, the way of presenting the news, the most important parts of every TV production. The TV master training was evaluated very positively by the participants. They believe that the experience and the methods learned from more experienced colleagues have extended their knowledge in this responsible and challenging job. We would like to emphasize that the training for mix technicians was also very beneficial and will help improve our competitiveness in the field of media. Dragan Stojanovski TV KISS Tetovo, Editor in Chief

PRiSMa Results General Results

- All local teams gained experience in community participation through democratic decision- making and synergy. - Citizens participated for the first time in designing the future of their community. - Multiple social partnerships were forged to include the private sector, the public sector and organized labor. - Decentralization was emphasized because all employment occurs in the context of a local economy. - Dependence on central authority was reduced as local initiative took hold. - PRiSMa launched and implemented the full Integrated Worker Adjustment Model in 30 communities in Macedonia - The Local Economic Development Component was implemented in an additional 16 ethnically mixed and rural communities

Results in Local Economic Development

One aspect of Labor Redeployment is stimulating economic activity to create new jobs. The LED component teaches teams how to approach this and gives seed funds for one demonstration project. Each project creates some new jobs and often indirectly stimulates additional economic activity, which creates still more jobs. Teams are able to work together in other ways to stimulate further growth.

The following is a list of Local Economic Development projects selected by each community team to be a first step toward enhancing the local employment picture:

K. Palanka: Milk and dairy production, Males Company Ohrid: Tourism and Economy Promotional Center Stip: BEAS-S Textile Company Extension Tetovo: Fish Pond Construction in Lesok village Probistip: Shoe Industry Extension, MAKO Stil Kisela Voda: Graphic Industry Svetlost Grafika 17

a Sv. Nikole: LION Chocolate and Candy Producer i Strumica: Expansion of Kemadono Textiles n Debar: Restart carpet plant at Novost Company o Krusevo: Briquette factory d Kavadarci: Center for growing vine stems e Struga: Town morgue c Delcevo: Extend Idnina textile facility Bitola: Restart part of a Graphic Industry production facility a Veles: Expand the production of Mi-Goteks textile producer Gostivar: Improve the wood processing and furniture production M Kumanovo: Shoe Production Line for soles and heels, Tusevski Company

Radovis: Support the etheric oil production from forest plants n Demir Hisar: Small hydroelectric power station i Gevgelija: Extension line for drop-by-drop irrigation pipe production t Kicevo: Becaton tiles production; Honey production Kratovo: Floor and wall wood furnishings, parquet and floor wood n Mak.Brod: Town market e Negotino: Extension of a textile plant Berovo: Agriculture, cattle breeding and food processing m Kocani: Textile expansion p

Prilep: Electricity power station for industrial zone o Resen: Apple packaging l Valandovo: Snack food bakery production e Vinica: Multi-purpose municipal vehicle v Rankovce: Textile production & Silos and Grain Mill. e K. Palanka Metal parts and tools production and goat breeding center.

Jegunovce Textile production D Brvenica: Bread, grain mill and bakery production Konce: Milk and dairy production c Podares: Sewing plant i Centar, Skopje Testing equipment for food and manufacturing quality assurance m Karpos, Skopje Wrought iron industry o Vasilevo: Morello cherry orchard modernization Bogdanci: Center for gathering and selecting agricultural products n Dolneni: Metal processing and access road to the market o

Krivogastani: Textile production c Topolcani: Purchase of a municipal garbage E collection vehicle

Vitolista: Milk and dairy production r Zelino: Sand separation plant o Tetovo: Heavy textile production f

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A Task Force of similar projects throughout East Europe compared the outcomes of LED activities. They did an analysis of the business sectors chosen for all projects. The sector analysis shows that most LED projects implemented in Macedonia were in manufacturing (27), construction (7), agriculture production and processing (5), services (5) and tourism (2). For the full East European sector analysis, see Appendix 4.

Macedonia's LED results include participation by 1340 partners in the Community Economic Development effort in their communities. These partners have devoted nearly 29,945 hours of work to develop ideas prior to implementation. An equivalent investment of time has gone into project implementation. There is no way to count the time they now spend on improving their local economies. A total of 260 LED workshops were conducted in which citizens analyzed their local economy. Over 2,500 permanent, temporary, and seasonal jobs have been created. As a result of the community analysis, at least 16 project ideas have been generated in each community. As of December 2003 a total of 736 project ideas have been discussed and analyzed. Eighty three percent of the communities now have long range strategies for economic development.

Through regional networking activity, economic development attention has moved to a regional and national basis. The interdependence of clusters of businesses has led to this approach. Read more about this in the Sustainability Section of this report. 12 new businesses have been opened, 30 expanded. 80% of the project carriers have provided matching funds for the implementation of the project.

Cooperation with other donor projects

Several USAID projects have had active collaboration in the local economic development sector. The local Government Reform Project (LGRP), the Community Self Help Initiative (CSHI) Project and the PRiSMa project joined together in a number of new ventures, each bringing their unique resources and expertise to the partnership.

Construction Materials Producers Organize

The regional activities and networking simultaneously done with other PRiSMa activities resulted into the establishment of the Regional Team which has been active in the filed of analyzing the regional economy. The task of the Regional Team is to select three or more industrial clusters with potentials to develop in the region contribute to the realization of the Regional Team's vision and help resolve problems in the region. In this initial stage of cluster development the priority in the western region of Macedonia was given to the construction industry or more precisely to construction materials production. The priority to this industry was also given by the local economic development teams in the region. In all communities in the region to most LED projects were in the construction field. It took a very short time to establish the association of these entities in support of the construction cluster because the founders already understood the benefit of cooperation. Now the team is designing the strategy for this cluster development. 19

a LGRP and PRiSMa formed a Local Economic Development Partnership, to help municipalities i create strategic plans for their respective economic futures and implement them. LGRP brought its n strong working relationships with mayors, and other municipal officials and offices to the effort; o PRiSMa brought its extensive field experience and training expertise in local economic development, d as well as the ability to interface with the local teams responsible for implementing the Local e Economic Development and Rapid Response activities. In the 12 pilot communities where LGRP c worked in cooperation with PRiSMa, the municipalities signed agreements to recognize PRiSMa's local team as a core resource for its official Municipal Economic Development Board. This promoted a sustainability of the local team and encouraged a collaborative effort with the municipal government recently given much greater responsibility for LED. The outcome of this pilot project was an economic M development strategic plan in each of the municipalities, as well as the beginnings of participatory

strategic planning. n i The USAID project Community Self Help Initiative (CSHI) worked with PRiSMa in sixteen rural and

mixed communities: Jegunovce, Brvenica, Zelino, Tetovo, Centar, Karpos, German, Rankovce, t Podares, Konce, Bogdanci, Vasilevo, Dolneni, Vitoliste, Topolcani and Krivogastani (for detailed n information see Appendix 2). e "I am especially happy and proud to be part of a team that works for the a benefit of workers. In keeping PRiSMa has offered me an opportunity when I had lost any chances for employment. I am with its m graduated dentist and I was without a job. I had a wife and a son to support. I cannot mandate to describe how happy I was when I was selected to be a neutral chair for PRiSMa in Kriva p Palanka. I now have totally new view of the world and things around, totally new way of assist such o thinking and understanding. PRiSMa helped me to gain self-confidence, to believe again and communities to l have faith in life. My increased self esteem then helped me to get a job as a dentist. But resolve PRiSMa did not only help me. It has also changed the way workers think and has dramatically e changed their lifes. As a neutral chair I am a witness of this change. Workers have infrastructure v opportunities to be trained or retrained and to believe in better future. By upgrading their and quality of skills, they feel more secure, self-confident and have an optimistic view towards life. It is a e special feeling to see that workers are happy when they have such an opportunity to acquire life issues, new skills, new job placements and not to be afraid for their future. CSHI funded D Goranco Kolevski, Neutral Chair, Kriva Palanka LED projects in

these c communities; PRiSMa provided technical assistance for training in local economic development. In i other existing PRiSMa communities, CSHI made a commitment to provide funding in support of infrastructure requirements. In Krusevo, for example, this allowed the community LED team to m allocate PRiSMa funds to the second identified project idea, a briquette factory which would create o

jobs, while CSHI funded the snow plow to enable the community to remain productive during the n

harsh winter months. In Ohrid, CSHI provided financial support to the community for hardware o

required to set up the tourism association financed through PRiSMa. CSHI staff learned principles of c LED and its youth volunteer project MAC Action received training in community organizing. E European donors have become increasingly active in vocational education and economic

development. PRiSMa teams have engaged in many projects in which they could apply their skills. r

At the close of the project the most significant European Agency for Reconstruction (EAR) project is o building on the PRiSMa foundation as it helps Macedonia develop a National Action Plan for f Employment that is consistent with European Union standards. s

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Shoe Producers Cooperate

The LED project of Kumanovo is the opening of a new sole and counter production, line in the shoe industry. The carrier is the production and trade company "Tusevski" dooel - Kumanovo, which is also a producer of children's, women's and men's shoes for export, working mainly for the German wholesaler "TRETAL". The community benefited from this project with 40 new jobs. The creation of a production line that will mean all shoe producers can obtain soles and counters locally instead of importing them, was an idea supported by everyone. The shoe production industry has organized itself to better research markets, sources and technology in order to become even more competitive. This business cluster is a focus of support from the North-East Regional Team because of the potential it has for job creation.

Results in Rapid Response/Worker Adjustment

Rapid Response/Worker Adjustment interventions were viewed as "just-in-time-miracles" wherever they were done. This is the typical reaction in the U.S., as well. The Steering Committee was especially interested in adopting this component.

The institutionalization of Rapid Response/Worker Adjustment component, with the passing of the amendment to the Worker Relations Law (Article 127a) providing pre lay-off services, ensures a climate in which to respond immediately to enterprise lay-offs caused by the economic restructuring and privatization, to respond to market driven lay offs, to enable workers' proactive transition to new jobs and to reduce unemployment in the community.

The following list includes companies selected by 30 local teams to demonstrate Rapid Response/Worker Adjustment active measures:

Probistip Zletovo Mines Demir Hisar Toplica Mine, Sacmara Factory Tetovo Nemetali Gevgelija 7-mi Noemvri Kisela Voda Rade Koncar Kicevo Screw producer Tane Canevski Stip Metalna Mak.i Brod Silika - Mineral Kriva Palanka Bentomak Pelagonija Negotino Fruit and vegetable processing, Ohrid Ezerka wine production Makedonija, Delcevo Frotirka & Godel Povardarie, Venec Radovis Beton Gostivar Ohis-Ges Bitola Plam Bit Veles Dimko Mitrev Kumanovo Iskra Debar Deplast Struga Zito Struga Strumica Edinstvo Kavadarci Metaleks Krusevo Hotel Montana Sveti Nikole 14ti Septemvri Berovo Ishrana 21

a Pehcevo Mleko-Mes i Kocani Ruen n Prilep Makstoun & Metalec & Nemetali o Resen Prespateks d Valandovo 6 Noemvri e Vinica Zemjodelska Mehanizacija c Total results point to: 1676 workers were identified as facing lay-off from the firms; 206 labor- a management representatives worked to help these workers keep their jobs or find new ones; 4,322 threatened workers were surveyed (more were surveyed than were the threatened layoff numbers M because no one knew who would actually be let go). Worker-driven action plans were made based

on survey results. A variety of training courses were organized for welders, argon welders, professional drivers, computer operators, metal workers, construction machine operators, steam n i boiler operators, tile workers, sewing machine operators, carpenters, languages, accounting,

electricians, hair dressers, cooks, administration workers, forwarders, fabric cutters and more. Nearly t all who accepted assistance found new jobs. n

The LMACs devoted a total of 18,098 hours work to this intervention. As a result 2,432 workers e retained their jobs and 204 transitioned to new jobs. 2,762 workers were provided with transition services, 38 enterprises received transition services and 176 companies were directly or indirectly m

assisted. Most important, 30 local teams learned the method. They are now organized into regional p

resource units ready to respond, when funding permits, to mass lay-off notices. o Aiming to strengthen capacities of the local Union leaders in the negotiations with the l

Government and in their relationships with the employers, PRiSMa organized a study tour to Seattle, e USA, from January 13 to February 3, 2001. This was done with support from World Learning/USAID- v Macedonia. The study tour was arranged as Training for Local Union Leaders. e The local Union leaders from Macedonia had the opportunity to meet their colleagues from the USA and compare union involvement in pre-layoff services. They also learned about activities of large D company unions in Seattle, for example the largest aircraft producer Boeing. They saw the Seattle Workers' Center programs. The activities of the local management in King County and the State of c i

"I first learned about PRiSMa at a meeting organized by the Employment Bureau in Berovo in March 2000 when we decided m to nominate the communities of Berovo and Pehcevo to be included in the PRiSMa Project activities in the expansion phase. o I was invited to attend the meeting on behalf of the business community. However, it turned out that the nomination of the neighboring community of Delcevo was more successful than the one of my community. n My husband and I own a garment production company called Fromisan D.O.O, based in Pehcevo. Our permanent interest is to expand our business and be supplied with a qualified and well trained labor force. Therefore I decided to contact the o Local Employment Bureau of Berovo for assistance and advice. I wanted to get information on the services for using state c budget funds for training and retraining. The experience was rather traumatic. I almost blamed myself for even asking the questions. I was told that little can be done. They did not even ask what my needs were. E . Yet, I did not feel discouraged at all. I told myself : …Well Froska, you create new jobs and want to create more…I'm sure there must be someone on this earth that cares about it! I did remember that PRiSMa had initiated the process in the r neighboring community of Delcevo and decided to call them. There was a tremendous difference in the tone and the interest in my needs. I finally felt that someone is listening and paying attention to what I am talking about. I got the information o I needed and I thanked the Employment Bureau of Delcevo for their support. Despite the troubles and the strikes in that f community I could see that it improved the services for both workers and employers. The Manager was eager to help. He was motivated, agile and focused. I could clearly see the difference PRiSMa made in Delcevo. Pehcevo does not have its s own Employment Bureau. Our people are using the services from the Berovo Employment Bureau. Therefore I am hoping to see change in the way this bureau does business too.” r

Froska Karakutovska, Employment Office, Pehcevo e

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Washington were a successful example of active Union/Management cooperation programs on issues of mutual interest and enterprise competitiveness improvement. The group expressed their interest in negotiations as a method of solving disputes. The visit to the Federal Mediation and Conciliation Service was evaluated as very beneficial negotiation training for participants.

Results in Enterprise Competitiveness/Quick Start

Enterprise Competitiveness teams surveyed local labor supply and demand in 30 communities. They assessed local training needs and selected one firm to demonstrate the Quick Start method. The most important result of this work was 30 trained teams with practice in social partner cooperation to meet workforce training needs. Equally important was demonstration of a cost effective demand- driven method.

NEB has had a system of training, which involves the subsidized placement of a new worker in a job for three months. It is the only training service available in Macedonia directed at meeting employer needs. The subsidized work is largely undirected; if the worker picks up the skills he or she needs, he is kept on. By contrast, the Quick Start training is highly structured and job-specific. Comparing costs of the NEB existing training system and the examples of Quick Start training, we see that with the latter method costs are reduced by 56%. Training time is I have worked at Svetlost since 1978 on a linotype machine in the reduced by 50%. Employers were typesetting department, where lead is melted in the old-fashioned way even more likely to be satisfied and every day. I was exposed to the harmful effect of the lead fumes which affected my health. I am the breadwinner in the family. It is very hard retain Quick Start trained employees, to find another job. I was very happy when I learned that the Local retaining more than 95% of the PRiSMa Economic Development decided to invest in an upgrade of trainees as compared to 80% retained printing techniques in Svetlost. The department for type setting changed and now I have been retrained and work as an editor using by the wage-subsidy method (which computerized text preparation. My present work is in a healthy contains an agreement that the environment with increased production, increased productivity, better quality of products and services and better salaries. employee will be kept on, an assurance Kimovski Mile, worker in Svetlost-Grafika, Skopje that does not hold 20% of the time).

The component was introduced to 30 communities; 31 companies received training needs assessments, job analyses and trainer training services; 594 workers were trained in new technologies. The partners representing the NEB, vocational schools and private firms committed 20,840 hours of work. 137 citizens were trained in the Quick Start method. 22 businesses were expanded; 93 workers retained their jobs and 500 new jobs were created. 113 trainers were trained. 39 curricula were developed. Quick Start method was implemented in the following companies (spreadsheet by community)

Ohrid AGP Zastava, seat belts production Skopje Vest , newspaper, medium Struga Kimiko, textile Tetovo Kiss and TV and Radio Tetovo, media Gostivar Radio Gostivar, medium and S-Petrol, restaurant Debar Veterinarna stanica and slaughter house Medika Krusevo Zito Krusevo, bakery and AD Ilinden Krusevo, tourizam Kavadarci Urban Invest, construction industry Radovis Markos, textile 23

PRiSMa Project Starts a Growing Cycle a i

The Sveti Nikole team chose to support expansion of the "Lion Company", chocolate and n candy producer in November 2000. It was an inspiring choice for the community as the company is constantly achieving successes. During the past three years the company has o given back the trust that it was given by the community team in numerous ways such as d a donation for the children in the kindergarten, earning awards at the Sarajevo Agrofood 2002 Fair, investing in new technology and following the trends on the market. It is now e working closely with World Bank group and International Finance Corporation (IFC) in c order to apply the new quality system HACCP (Hazardous Analysis of Critical Control Points). The introduction of this new quality system is a prerequisite for competing on the a foreign markets. This demonstrates that the Lion company is taking all necessary steps to expand not only on the domestic market but on the international markets as well. M

Stip Gamateks, textile n Delcevo Idnina, textile and Biljana, bakery i Palanka Vanila, bakery

Kumanovo Nas Vesnik, medium t Bitola TV Tera, medium n Sveti Nikole Milko Ovce Pole, dairy e Veles Dinamo Hit, metal industry

Probistip SAP Probistip, automobile spare parts production m Strumica Suppera, shoe production p Gevgelija Nikol Fert, s. Nikolic, construction industry o Vinica Stefani company, textile l Resen Zito - Resen, e Prilep Turbo Impeks, food processing Kisevo K-Union, catering v D. Hisar Pruzini and tekstil, textile e Valandovo Farma Agripro, food D Negotino Zdenka, electric cable production

Berovo Ograzden, food production c Veles Dinamo Hit, metal industry i

The results for the three components are presented as of September 2003. m

Performance Monitoring Data can be seen in Appendix 3. o

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Vinica Improves Business Climate

The LED project in Vinica is the purchase of a special multipurpose vehicle to improve the living and working conditions of the citizens of Vinica. The purpose of this vehicle is: - washing the town streets; - maintaining the existing sewage system of the town by sewage pipe wash out; - supplying the suburban parts and villages with clean water during the summer period when water supply problems occur. The project is of exceptional importance for the whole community and the direct beneficiaries are the citizens themselves. The project carriers the are the local government in Vinica and Solidarnost Public Enterprise from Vinica. However, in process of its implementation the selected project idea involves many social partners. It will be a good practice for the community of Vinica to bring together the trained LED PRiSMa team and local self government to work on project implementation. The local authorities are expected and have been empowered to play an increasingly prominent role in local economic development and employment creation. Their central responsibility is to work together with local communities to find sustainable ways to meet their needs and improve the quality of their lives. This is especially critical since the Local Self Government Law now has a full section on local economic development and they can work together with trained PRiSMa LED team on this issue. For the LED process it is the continuation of the community strengthening on their own after PRiSMa withdraws.

Training and Reference Materials

Since the beginning of the PRiSMa project, constant effort has been made to provide adequate training materials for the partners so they can continue to conduct activities following the end of US assistance. This is a list of manuals published and distributed: Plan, Organize and Implement Local Economic Development Programs Entrepreneurial Initiatives for Local Economic Development Implementing LED Programs LED Workbook Team Building Rapid Response/Worker Adjustment ToT for Rapid Response/Worker Adjustment Quick Start Improve Enterprise Competitiveness Through Custom Fit Training Labor Market Survey Using the O*NET Database Public Relations Vocational Guidance ToT for Vocational Guidance Counseling Program Assistance and Assessment

For the purpose of information sharing a newsletter was published and a website designed. The newsletter is posted on the website. (See website: )

PRiSMa included in the Macroeconomic Policy of Macedonia (2001-2004)

When adopting the Macroeconomic Strategy for 2001, 2002 and 2003, the Government of the Republic of Macedonia decided to reference PRiSMa activities and endorse government involvement in them in those years. Here is an extract from the 2002 Macroeconomic Strategy, which is typical of those references: 25

a "The USAID PRiSMa Project will continue its realization; it is the project that provides local economic i development and inclusion of the unemployed in the process of job transition." At this point the n reference is vague and does no more than agree to let the USAID funded project operate with o government cooperation. d By agreeing to this cooperation, however, Macedonia agreed to commit staff to learn the model e components. Over time, local implementation capacity has been built. Now local teams have the c capacity to conduct component activities on their own. a The figure below shows the spread of skills the team members have acquired and have now become part of their job duties. It illustrates the local capacity built during the life of the PRiSMa M project. It is this capacity that Macedonia will rely upon as it carries through on its plans for employment and economic growth. n i

Number of trained and designated staff asigned to t

integrated WA model components n

e

m 400 p

300 o 200 l e 100 v 0 LED - 304 LMAC - 160 QS - 129 e trained staff trained staff trained staff D

By 2004 the Steering Committee had defined a division of labor for institutionalization and c conveyed these recommendations to the government. The 2004 Macroeconomic Policy is specific and i the responsibilities are taken up by Macedonia. m

o

" When I go back in time for only one year, I must say that at that time PRiSMa was a big n puzzle for all of us. However the first couple of workshops were like magic we could not resist. o That magic is nowadays a reality owing to our personal engagement. c PRiSMa introduced a new way of doing business, teamwork, organization and community planning. It's a great encouragement when you see the support by the whole community. As E a result, my team and I were highly motivated to foster further development of BEAS Company. Each meeting was a new and challenging experience. The Stip LED Team went r through a process of designing and implementing a large number of project ideas. It was an exciting moment when in a fair and well organized process the team selected to implement o the project in my company. The PRiSMa staff and the Stip Local Employment Office assisted f the implementation process. The PRiSMa seed funds were used for the expansion of the heavy men's garment facility in BEAS, thus creating 120 new jobs. I see our team going on to s implement many more projects that stimulate job creation and community development for the benefit of our citizens." r

Beti Saneva, Manager of BEAS-S Company, Stip e

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The policy supports adoption by Macedonia of the activities PRiSMa and its partners have introduced. The 2004 Macroeconomic Strategy has just been adopted with the recommendations by the Steering Committee taken seriously into consideration and included in the appropriate places.

Interim Evaluation

To monitor the progress and achievements of the PRiSMa Project as well as to provide good guidelines for further implementation, the PRiSMa Project was subjected to an independent evaluation performed by Management Systems International (MSI). In February and March 2002 USDOL commissioned this independent evaluation at the midpoint of the project. MSI's findings were positive. It found the methods PRiSMa introduced to be highly cost-effective. It also found wide national support for the project activities. (see Appendix 5: MSI Executive Summary)

"My company has gone through quite a lot of problems as a result of the loss of markets. Understanding the serious situation, I decided to volunteer for retraining. At the very beginning of the PRiSMa Project I was doubtful, but as the project entered more defined activities, I was convinced that it would be unreasonable to waste this opportunity. Some of my peers in the office did not understand my taking up production work. They were still denying the fact that they were facing redundancy. It was pretty difficult for me, too. I volunteered to be trained for welding skills because I was aware that this was an occupation of high demand on the labor market, including Metalna. The project being implemented by PRiSMa in Metalna will certainly have multiple benefit for the workers, the company and the community. Firstly, the level of skills of the trained workers will be increased. Secondly, the company will get rid of the redundant administration and enable the trained workers to be more competitive on the labor market by using their new skills. Finally, the community will benefit from preventing another potential strike." Joco Arsovski, Administration staff at Metalna A.D in Stip

Sustainability

Regional Teams Institutionalize All Model Components

The interdependent nature of the economy made it important to develop opportunities for regional networking that integrates workforce development in neighboring areas. Networking days were held three times a year to give participants a forum for sharing experience and results. Setting up a networking process was a basic step in establishing sustainable services for Quick Start and Rapid Response. It is critical to maximizing resources for economic development.

As the participants began to learn about one another's adaptations and innovations, the network days resulted in building knowledge and skills for continued activity. Discussions in those meetings covered a wide range of topics: public affairs, local media relations, program monitoring and evaluation, developing local and regional business centers, and alternative forms of financing, etc. PRiSMa partners were trained to enhance their public communication skills. Training was organized in public speaking, interviewing and press release writing.

Networking days provided the opportunity for the participants to evolve into regional resource teams. Recognizing that job creation remains the most pressing issues in Macedonia, each regional team centered its efforts on a promising economic sector hoping to build prosperous networks. 27

a In 2002, frameworks were developed for regional organization of the Integrated Model i implementation. The National Employment Bureau organized regional support teams upon passage n of the Rapid Response provision in the Worker Relations Law in March 2003. Then during the 2003 o networking days, regional integrated model development plans were drafted. At the same time the d National Steering Committee defined ways to institutionalize the Integrated Model, through a series e of legal and policy reforms in the ministries and local government. c

a Background of Regional Cluster Development

The Regional cluster development process began in October 2003 with the formation of the M regional teams in the four regions. The regional teams were selected according to the criteria jointly decided by the PRiSMa program consultants. The regional team members are hardworking n professionals and have shown results in the LED process in their communities. They used their i understanding of the complete model to decide on the intervention to best address unemployment needs. t

During the analysis the regional teams decided n that cluster based economic development was the most e suitable solution for building competitive edge in the m regions. The task of the regional teams was to select clusters which have the potential to grow, enable to p reach the preferred vision for the region based on its o natural and comparative advantages. Industries with l members previously involved with LED were at an e

advantage because they were part of the development v

process and have had experience with in. The analysis e primarily focused on research and determining a type of industry with sufficient concentration of businesses in the region. All regional teams selected an D industry cluster ready organize and work together. c As a result of the constant networking, economic development strategies based on business i clusters came about to focus the Integrated Model strategic plans. Business clusters for initial emphasis based on readiness and potential were selected in the four regions: North Region: Shoe m Production, East Region: Textile Production, South-West Region: Construction Materials Production o and building. n

Additional business clusters should receive future emphasis according to developing priorities in o

Macedonia: c

• The regional networks have led "By developing a Quick Start curriculum, including the E to a vision of the future in specially examined conditions when working with the sewing machines in KIMIKO 46 new workers were trained in Macedonia that applies what they r the first group, and then another 40 new trainees. The local have learned. NEB office was helped by PriSMa to find new ways to recruit o • Cross sector partners throughout the workers we needed. We continue to use the training f method as it most efficiently meets the criteria for assuring Macedonia will work together on quality work. s developing local economies to Tena Dimitrievska, Production Engineer at Kimiko, Struga produce more jobs r • They will base their activities on a vision they share of the future for their communities e

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• They will work with their local governments to make local laws, regulations, infrastructure and services that support their vision for local economic development • They will bring the interest of labor, private sector, management and the public sector into proactive collaboration • A service structure will exist in every community to help workers adapt to the shifting labor market demands of a free economy. • A training capacity will exist in every community to respond to market driven labor force needs.

The Rapid Response Legislation Task Force

In January 2003 the Steering Committee decided to establish a Legislation Task Force to explore the possibilities of incorporating a provision on pre-lay off services in the Worker Relations Law, which was soon to be adopted by the government. The Task Force included:

Efka Indova, Ministry of Labor and Social Policy Mihaela Stojkoska, Ministry of Education Goce Milosevski, Legal Department, National Employment Office Sasa Sindilovski, Head of Small and Medium Size Enterprise Department, Ministry of Economy Branko Trajcevski, Association of local Government Units

The Legislation Task Force analyzed the existing Worker Relations Law, compared it to the neighboring countries' laws and the US Worker Adjustment Act and proposed a possible amendment to the government. In March 2003 a new provision was added to the Worker Relations Law, which provides pre-lay off services possible and required by employers who give notice of large lay-offs:

Article 9

After Article 127 in the Workers Relations Law, Article 127-a is added which reads:

"The employer, prior to reaching a decision on the termination of a worker's relation due to changes in Article 125 of this Law, from the time when the workers and unions are informed and until the workers relation termination of over 50 workers is decided, may require from the employment office assistance and services for employment mediation, according to the law.

To provide services of the previous paragraph of this Article, if the employer requires, the employment office is obliged to establish a special committee with representatives from the employment office, the employer, the company unions and the local government."

Integrated Institutionalization

Sustainability means the ability of communities to " I and the others people who have been or continue job creation, transition and retention activities will be hired in our company will be highly in ways suitable to the local economic and social appreciative and confirm the confidence of conditions after the project closes. Such sustainable the team. Budmir Apostolski, Fish Pond owner, activities are supported by national and local Tetovo institutionalization of practices derived from the experience introduced by PRiSMa. 29

a Training and facilitation provided by PRiSMa established a set of institutional capacities and i assured their distribution throughout the 30 service center communities of Macedonia. n Unprecedented multi-sector collaboration was instituted. The experience of the demonstration o activities of the three components created a broad base of popular support. The support attracted d the attention of political decision-makers, encouraging institutional change. e

By the spring of 2002 the Steering Committee c "…I would never have been so free to speak had determined that it wanted to pursue in front of the camera had there been no a training of this kind by PRiSMa." institutionalization of the entire model in Macedonia. Snezana Marolova, That would mean dividing responsibility for different M Stip Employment Office component activities according to Ministry or agency

mission and also ensuring coordination among the implementing partners. Following is the itemization of responsibilities set forth in the revised charter n i or agreement of cooperation signed by the steering committee members upon approval by their

various agencies and ministries on May 20, 2002 (See Agreement of Cooperation in Appendix 1). t

PRiSMa continually emphasized to its partners that it was only demonstrating an Integrated Model n

and expected the partners to adopt the most beneficial and successful parts of their choosing in e Macedonia. The members of the Steering Committee worked on a strategy for designing

institutionalization in the Macedonian legislation. They compared the practices and legislation in the m

United States, Western Europe and Eastern Europe implementing similar worker adjustment programs p and looked for the best practices. To supported this research, a study tour to Hungary was organized o for the governmental members of the Steering l

Committee. The tour was organized in the fall of 2003 e under the auspices of USAID/World Learning. v During the five-day study tour, the participants e had an opportunity to learn about the integrated

model in full and the related activities of the ministries D and institutions that use the model. The program was presented by the State Secretary of the Hungarian c i Ministry of Labor (MOL), its representative on finances, Deputy Director of the National Employment m Services (NES), a representative of the Ministry of Education responsible for vocational education, o NES Director of Adult Training, Head of a sector at the Ministry of Economy and Secretary of the Labor Market Fund, directors of local and regional employment offices, directors and instructors of regional n training centers (Miskolc, Sekesfehervar, Bekescaba), employment advisors, and consulting o companies in labor market research. c

The group visited two regional training centers and employment centers. They also had meetings E with the Mayors of Budapest, Miskolc and Sekesfehervar, and a representative from the Ministry of Interior, responsible for local government in Hungary. r

o The committee determined a general strategy. It proposed that the Government of Macedonia, f consistent with the Macroeconomic Policy to be implemented through a series of legal means

including, but not limited to: the Law on Worker Relations, the Law on Local Self Government, the s Law on Employment and Insurance in case of Unemployment, the National Action Plan for r Employment, and the Law on Vocational Education and Training. The group recommends taking more e active measures for overall future improvement. n

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Over the remaining months of the project "I express my great appreciation to the PRiSMa project partners cooperated at the national level to for helping me enroll for lessons and pass my driver's coordinate a concerted effort to put these exam. This allowed me to become a distribution officer within Dimko Mitrev Ltd and make better earnings to promises into concrete action in the support my children." Macroeconomic Policy that determines resource Slavica Januseva, previously a tailoring department allocation each year, in specific enabling controller in Dimko Mitrev Ltd., Veles legislation, where it is required, and in administrative and program policies that put activities in place. Their conclusions have also substantially informed the draft National Action Plan for Employment of January 2004, prepared under EAR guidance.

"What Macedonia has in place now that could accelerate the general process are the Regional Centers of Excellence, the Regional centers for entrepreneurship and the regional employment offices. All of these should coordinate in functions. Plans for decentralization are under way. However, there are no firm plans for coordination, despite EU recommendations for organizing the country. It has been the experience of Hungary and PRiSMa that employment and economic crises are dealt with on local and regional levels. Material support exists, but activities are to be developed and taken. What Macedonia lacks, is overiding policy to legitimize coordination designed at local level. Aside from the regional centers, the NEB is rethinking to use its resources to employ active measures (development sector, labor market, and sector for training preparation, mediation and retraining) in terms of: - Support the unemployed to gain work experience through encouraging entrepreneurship and volunteer work. Thus, the unemployed will contact employers and integrate them into the " world of work" and their opportunities to find regular jobs. - Providing pecuniary and technical support for the unemployed who want to start new businesses. - Assist the transition processes and job retention for workers from companies with financial difficulty.

- Participation in employer's expenses for on-the-job training of their employees to provide continuing education of the workforce. This policy is part of a broader policy on encouraging life long learning. Initial ideas about financing such efforts already exist; further elaboration of the ideas is necessary. According to the Hungarian experience adjusted to Macedonian conditions, we propose forming Education and Training Fund (in terms of financial resources, not an institution) to be managed by the Minister of Labor and Social Policy, and the Minister of Education, the Minister of Finance, the Minister of Economy, representatives of the Chamber of Commerce and the Unions as members. The Council will decide upon distribution of funds for the above-mentioned needs based on applications of interested parties, in cooperation with the sectors of the employment office responsible for this part.

The initial estimate is that this Fund could be financed from contribution of the employees' net salary for the purpose of education and training in order not to burden 31

a employers. However, we find it necessary to further analyze this part in order to reach and determine i the best solution. n

High expenses of employers related to laying off workers in terms of severance pay and similar o tools, as well as the inability to get a pertinent information about opportunities for workers, make the d employers indecisive and unsure when making a decision to lay off workers during poor economic e conditions. Also when employing new workers when there is economic growth. Therefore, the c economy shows signs of rigidity and inaptitude for rapid response and adjustment to the newly a created conditions. One of the possible solutions to overcome such a problem is returning the institute of trial work with maximum duration of 60 days in the Worker Relations Law. This regulation will enable employers, the legal way, not the black market way, learn better about the workers abilities M

and more easily decide if they meet the needs of the job. At the same time, employers will become less skeptical when making a decision whether to employ new workers because unless the workers n i are eligible for the job, employers will not have any sanctions when laying off workers after the period

of 60 days. t There are other alternatives, of course, such as broader implementation of the institute beginning n worker, contracts for part-time job, or temporary job, etc. e Successful functioning of a market economy implies existence of a "modern" Employment Office. It means that beside benefits for the unemployed, the Employment Office will constantly do labor m

market research, learn which are the future needs of certain professions, design and conduct active p

measures (in cooperation with other educational institutions and training providers), i.e. training for o the unemployed. In this respect, the Employment Office, based on prior analyses and contacts with l

employers, should start offering training for unknown employer, i.e. according to the needs and e trends in the economy. v To help enable the Employment Office to do this, we suggest re-establishing a policy requiring e employers to announce planned need of workers (available jobs). Based on these announcements,

NEB will be able to monitor the future labor needs and can timely act in terms of retraining and D additional training of the unemployed to fill those predicted needs. c The preparation of an employment program by the Ministry of Labor, NEB and the Ministry of i Finance in order to plan additional funds.

In addition to what is in the existing Article 9 of the Worker Relations Law, and organizational m support of active measures, more can be taken from the significant experience of USA, Canada, Great o Britain, and Hungary. In these countries there are local Rapid Response teams (within NEB) consisting n of one member from the local employment office, the national employment office and union o representative. This three-member team acts preventively in companies showing certain signs of c difficulties or undergo change. Based on these needs, the local team submits a proposal to the Workforce Board. Their role is to approve the proposal and oversee the funds if granted by the E

Ministry of Labor or other government institution in order to put the Rapid Response team into r motion. "I would like to show my gratitude to the PRiSMa project o for providing me with an opportunity to obtain a driver's The Workforce Board consists of many f license and start working as a cab driver and apply for a loan to buy my own car" partners and participants in the overall s Ljubomir Temelkov previously slippers production development: the private sector, 50%, unions, controller in Dimko Mitrev Ltd., Veles 17%, vocational education, local government, r NGOs, chamber of commerce, and consulting e

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companies. The tendency is to increase the participation of the private sector. The Ministry of Labor funds approved for Rapid Response implementation is up to 4,000 Euro per company per year in Hungary, and $7,000 per Workforce Board per year in USA. One of the possible solutions for Macedonia is to organize Workforce Boards within the local government, consistent with the new decentralization law and the establishment of the economic development sector within the local government. The Ministry of Economy is taking more active support of SMEs with the Entrepreneurship Agency, EURO Info Centers, the Competitiveness Council, and the Agency for attracting foreign direct investments. Currently, attention should be focused on developing plans to increase incentives both for domestic and foreign investment. National and local development plans should be turned to human resources development in coordination with the education and employment services At this point the local government units are not thinking clearly about human resources. Strategic plans of municipalities are important and should be developed not only within the local government unit but in coordination with other institutions. With the development plan, the municipality will invest accordingly and it will establish priorities for improvement in order to attract investors. In addition, the promotional aspect is quite significant. Awareness of responsibility of local government and individuals is also necessary to assume responsibility for it. There is much to be done. It is obvious that everything can not be done with the existing resources. Careful prioritization of the issues will help allocate the resources appropriately. As the Macroeconomic Policy for 2004 was finalized, most of these considerations were incorporated. This is a tremendous victory for the PRiSMa partners at all levels. In January 2004 Jovan Manasievski, Minister of Labor and Social Policy announced key features of the newly drafted National Action Plan for Employment. A press summary states:

"For over 15 years I worked as a leather and fur cutter in the protection garment production unit at the MM Brico, in Delcevo. In the last two years our company has had the same problems which have affected the majority of state enterprises: reduced production, financing problems, overemployment and recently a split from the mother company Godel- Skopje. Everyone in my village Bigla depended on MM Brico for their livelihood. It looked to be closing down. This was a serious warning sign; I was on the redundancy list. When all hopes were lost, some light came from PriSMa. A Labor-Management Committee was established together with another troubled company Frotirka in Delcevo. A worker survey was conducted in November 2000. The LMAC proposed retraining programs for the workers facing lay-off. 30 workers, including myself, from MM Brico are currently being trained to acquire skills in protection shoe production in the neighboring community of Stip at Ma-Ko Style Company. Now I have a long working day with the travel for this training, but I also now have hope. I know it is worthwhile because we now have again true possibilities to continue our work. These new skills open new markets. We will be able to stay with our families in our home town and develop our small rural and peaceful community." Zvonko Iliev, Worker in MM Brico, Delcevo

No Miracles In Dealing With Unemployment

In conditions of deep socio-economic crisis in the country, Jovan Manasievski from a position of the most responsible in the sector solving problems of poverty and unemployment, admits that this Government has not done much on the economic plan. However, he promises serious fight to improve the welfare of citizens. Nevertheless, he does not believe in miracles in dealing with the unemployment. He is optimist that the government cabinet has capacity and knowledge to attract investments, to realize the forgotten budget capital assets, to open new jobs to alleviate the problem of high unemployment. Q: Macedonia has now a record in unemployment of 390,000 persons. Does the government have a clear idea for the cause and effect of this problem as it increases the poverty rate? 33

a A: The Government, experts and opposition agree that i unemployment results from insufficient investment n and lack of economic growth. There is consensus about the solution, too. The most efficient is the fight o against the cause of unemployment. It implies more d

investments and bigger economic growth. Analyses e

show that efficient management of unemployment c requires GDP growth of at least 5% and far higher rate a of investments than the one we have. The next steps of the government are directed towards improving the conditions for both domestic and foreign investors and M realization of public investments through utilization of 6 billion MKD from the budget. If plans are realized, reduction of unemployment will follow by itself. For example, in the third quarter of last n year, the GDP increased by 5.2%, which is a good result. This means that the planned growth i by 3% for 2003 will be corrected. The period of economic contraction that happened during the

first half of last year ended. 2004 projections say we will have an increase in employment by t 3%, i.e. 10,000 new jobs. Perhaps this sounds modest, but in economy there are no miracles and spectacular advances. In n 2002, for instance, NEB registered 34,000 new jobs, out of which 22,000 full-time, 12,000 part- e time. Last year, 40,000 were employed, out of which 29,500 full-time. This shows that compared to 2002, in 2003 7,500 new jobs were created. It is very important that last year almost all m

employees were hired in the private sector. In 2002, 5-6,000 were employed in public institutions. p

Q: However, there is increase of layoffs? o A: Exactly that is the reason of the unemployment increase. The former government in the election l year did not sign an arrangement with IMF in order not to implement structural reforms that e implied laying off workers. In 2003, this government had to do the reforms and finally close the file on loss-makers. The structural reforms related to the arrangements with international institu v

tions caused loss of over 15,000 jobs. In other transition economies, this had happened much e earlier and caused less problems.

Q: Other transition economies treated unemployment with developmental economic policy we lack. Does the D macroeconomic policy 2004 encourage the economy to anticipate part of the high unemployment?

A: The highest economic growth in independent Macedonia was 4.5%. Therefore we have constant c unemployment increase. I already said that spectacular moves could not be expected. If the i growth was 3% in 2003, this year it will be between 4 and 5%, and next year we expect it over 5%. Unreal leaps are impossible. This year we expect lighter hit from the structural reforms as m

we have finished with the biggest loss-makers. We can even expect reactivation of most of them. o Q: Yes, but the public administration reform is coming, a reduction of 4% employees, layoffs in n Telecom, and the framework agreement obligations? A: Nevertheless, it won't be the same as the hit in 2003. The problem is the structure of employ o ees. Out of 330,000 employees, 130,000 are in the public sector. That is the big structural prob c lem in the country.The previous government increased the public sector employees from 94,000 E to 128,000.Our obli gation is to increase the total employment and change its structure at the same time. The best way to do it, planned in the government public administration reform pro r gram, is separation of non-important activities. Q: Last year, the World Bank showed precise analysis of unemployment in Macedonia. Neither the o government nor other state institutions have done that. Is this problem addressed seri ously? f

A: The World Bank study is very good, and domestic experts took part in it. This year we start with National Action Plan for Employment. It consists of all activities, projects, budgets of many min s stries and institutions that work on this issue. The Plan was made according to European r method ology with the help of many European experts. Similar plans have been implemented in e

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Romania, Bulgaria and other countries 4 years ago. The total budget of the Plan is over 10 million Euros, 2 million from EU, 8 million Euro from the budget. NEB will have available 250 million MKD (approx. 5 mill.US$) to implement active measures for employment. The Bureau for underdevel oped areas will receive 40 million MKD (800,000USD). The Ministry of Economy will receive 100 million MKD (2 mill USD) to encourage entrepreneurship and attract foreign direct investments. In the implementation of this Plan, social part ners will take part - the Federation of Unions, employers, and local government units. One of the directions of this plan recommends using instruments to subsidize job creation. It is similar to the Law on encouraging employment that was implemented in 2003. The realization of the plan will start with ten pilot projects whose individual budget will not exceed 50,000 USD. The government has an obligation to incorporate the meas ures that will give positive results as policy in the budget for the coming years. Q: Branko's Law neither solved nor alleviated unemployment? A: The government decided on this measure as it knew that last year was going to be problematic from economic aspect and that employers would need additional incentive to open new jobs. Such or similar law has been implemented by almost all European countries, especially the ones in transition. The plan was to open 17-20,000 new jobs. The outcome was 14,730 jobs. It is under the expectations, but still is a good result. Q: Is this figure real? Are the new jobs effective? A: The Law had quite strict control mechanisms, and we were criticized for that. The intensive employment at the end of the year was due to the mentality of citizens to react in the last moment. By Dec 1, there were 7,000 employees, and in a month there were over 7,500. In the last five days, there were over 1,000 new jobs every day. Many people considered this law to be pure economic measure, which is not. It is a socio-economic law. From social aspect, I am satis fied as among the employees 5,500 were redundancy, bankruptcy layoffs, or social cases. Their average age is over 41. If it hadn't been for this law, most of them would have been left on the street. There were remarks that this law cost a lot. The cost per job was 85,000 MKD. In four years, as the obligation lasts to retain those workers, the government will subsidize the employ er with 1,800 MKD per month per job. It's far less than the average social benefits. Q: Have you succeeded with the agricultural reform to turn part of the unemployed into farmers? A: This year we started with a pilot project as the National Plan requires. EU experts are satisfied with this measure. This program in NAP is referent and required by the government more inten sively to approach its realization. So far, 200 families near S.Nikole have received their own land. The government gave these people approx. 6 million MKD in cash. This year the reform will con tinue in Stip, Strumica, Gevgelija. Q: Will you finally turn the NEB into real labor exchange? A: By May, we'll finish the reform of NEB. It is a sterile institution that does not do brokering on the labor market, but is simply a distributor of various benefits. From 2002 budget, they spent 3% on active measures that actually create jobs. In 2003, only 6.3%, in 2004, 10% should be spent on active measures. In order to justify its role, NEB should spend between 20 and 30% of the budget on active measures, as in other countries. NEB will be renamed into Employment Agency and will undergo complete change in the internal organization. (Source: Dnevnik, 17 January 2004) The National Action Plan for Employment brings active measures to the forefront. In combination with government strategies to promote small and medium enterprises it reflects attention to the components of the model introduced by PRiSMa. If there is parallel attention to encouraging local level integration of these measures, the steps the Government announces will be the natural continuation of an institutionalized Partnership for Economic Development in Macedonia organized to:

GET MACEDONIA BACK TO WORK. 35

a Appendix 1 i

AGREEMENT OF COOPERATION n

o Of the Steering Committee of National Partners in PRiSMa, Partners for Economic Development in Macedonia d e Introduction c

This Agreement of Cooperation lays out the terms of reference for the Steering Committee of PRiSMa, a Partners for Economic Development In Macedonia. PRiSMa is a technical cooperation program initiated in July 1999 bringing United States know how and resources to strengthen the capacity M within Macedonia for local economic development, worker adjustment and enterprise competitiveness. The activities of the partnership to date have resulted from the Charter signed by n the original Macedonian and United States partners in July 1999. i Previous Charter t In that agreement The United States department of Labor, with the sponsorship of the United States Agency for International Development, agreed to introduce an integrated worker adjustment model n through the PRiSMa project. Project implementation was to have been accomplished through the e National Employment Bureau and its network of local offices with advice and training from the PRiSMa project staff. m p Members of the Steering Committee, then termed the Advisory Commission, signing the original o charter were: The United States Department of Labor, The Ministry of Labor and Social Policy of l Macedonia, The Ministry of Economy of Macedonia, The National Employment Bureau of Macedonia, e The Confederation of Trade Unions of Macedonia, and the Chamber of Economy of Macedonia. All agreed to provide national level leadership and support for the PRiSMa initiative. v

e To accomplish this, the Steering Committee agreed to review reports of progress, participate in meetings, produce recommendations to solve problems in implementation, and help develop and D disseminate public information regarding the project.

The PRiSMa Project office agreed to organize and convene regular meetings of the steering c i committee, produce reports of progress, develop the agenda, inform the committee of issues encountered in implementation, advise the committee regarding policy and funding issues related to m implementation, utilize the committees expertise in developing an implementation strategy and o support public relations activities. No funds were obligated on either side through this agreement. n Current Commitments o

All partners confirmed commitment to the terms of the original Charter supporting continued c implementation and promotion of the integrated worker adjustment model in Macedonia. They cite E positive results from the three program components, the building of partnerships, the training of local and national experts, and cost effectiveness, as important positive effects. They note a need to r coordinate efforts among many national partners to adopt the integrated model. o At this time each national partner is able to describe a sphere of responsibility was to concentrate on f in the near future, as the partners further refine their respective long- term responsibilities for s institutionalization. r

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The Ministry of Labor and Social Policy is committed to supporting national policy that will directly implement active labor market measures, as introduced by the integrated model of PRiSMa, at the local level throughout Macedonia. This includes continuous job creation and job transition activities in the offices of the National Employment Bureau, providing market-driven training, and developing action plans for special and vulnerable populations according to local needs, utilizing local economic development teams, in cooperation with other relevant ministries.

The Ministry of Economy is committed to implementing the integrated model throughout Macedonia. It has taken specific responsibility for leading future Local Economic Development in communities. It is also committed to contributing to the Rapid Response/Worker Adjustment components implementation, with special emphasis on transition services for employees of loss- making enterprises threatened with dislocation. As a principal agent for encouraging small and medium enterprise development in Macedonia, it is committed to institutionalization of enterprise competitiveness initiatives.

The Ministry of Education and Science will concentrate on vocational training for young people and adults. It will seek to develop market driven post-secondary courses for adults in the formal and informal labor market. In this regard it will utilize curriculum design methods from the Enterprise Competitiveness component of the PRiSMa model. It will continue to seek ways to collaborate with the National Employment Bureau to provide training, and to maximize training capacity in Macedonia using all available resources.

The National Employment Bureau (NEB) commits its staff at the local office level to participate on local PRiSMa teams, to serve as specialists on those teams and to be trained to assume those responsibilities in all components over the long term. It will focus national capacity building on the Rapid Response/Worker Adjustment component. It will continue to develop active measure interventions like the job clubs it now operates, and increasingly efficient short term requalification training for unemployed members of the labor force moving into new jobs. It will explore methods like the Quick Start training method to improve training cost effectiveness and will collaborate with the Ministry of Education to optimize use of resources for lifelong learning.

The National Enterprise Promotion Agency (NEPA) is committed to supporting development of small and medium enterprises in Macedonia through its regional offices. It will cooperate with PRiSMa to define services promoting enterprise competitiveness and to institutionalize those services appropriate for delivery through the regional NEPA offices. PRiSMa will provide technical support and input on concrete needs through its network of local economic development teams.

The Association of Units of Local Self-Government agrees to promote professional municipal involvement in local economic development and active labor market measures. It will move toward providing an ongoing training and coordination of a network of professional economic development officers, committed to working with local citizen economic development bodies.

The Federation of Trade Unions of Macedonia commits to continue its work on behalf of organized labor in Macedonia, while supporting use of techniques of labor/management cooperation in dealing with problems of worker dislocation. It will assign staff, trained in these techniques, to lead and facilitate organization of labor/management committees to provide rapid response/early intervention where dislocation of workers is threatened. 37

a The Chamber of Economy of Macedonia will continue to represent the interests of the private i sector. It agrees to provide informing to private sector of the benefits of constructive labor n management relations and the cost effectiveness of using enterprise competitiveness methods that o upgrade the value added by labor through efficient skill improvement. d

All partners recognize that they have entered into an agreement that will depend upon the good faith e contribution of each toward the common end to c

Get Macedonia Back to Work. a

The Agreement was signed in March 2002 by: M Stojan Trajanov Ministry of Labor and Social Affairs Efka Indova Ministry of Labor and Social Affairs n Marija Zarezankova Ministry of Economy i Margarita Nikolovska Ministry of Education

Goran Angelov Association of Local Government Units t Svetlana Jakimovska National Employment Office n Jursit Rifat Federation of the Trade Unions of Macedonia e Aco Spasovski Chamber of Commerce

Ljubisa Nikolovski National Enterprise Promotion Agency NEPA m Amy Ramm, PhD PRiSMa p Elizabeta Markovic USAID o l

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PiSa ounity ounds y oponent

Start ate LE LA E uralixed 11.99 Round 1: Round 1: Kriva PalankaLGRP Tetovo Ohrid Probistip Stip K. Voda 05.00 Round 2: Round 2: Tetovo LGRP Kriva Palanka Probistip Ohrid K. Voda Stip S. Nikole LGRP Delcevo Strumica Bitola Debar LGRP Veles Krusevo LGRP Gostivar Kavadarci Kumanovo Struga LGRP Radovis Round 1, 09.00 Skopje 02.01 Round 3: Round 3: Ohrid Delcevo Sv. Nikole Struga Bitola LGRP Strumica Veles Debar Strumica Gostivar Krusevo Probistip Kumanovo Kavadarci Radovis Struga 11.01 Round 4: Round 4 Round 2, 09.01 Demir Hisar Berovo Tetovo Jegunovce NW Gevgelija Kocani Gostivar Brvenica NW Kicevo Prilep Debar Zelino NW Kratovo Resen Krusevo Tetovo NW Mak. Brod Valandovo Kumanovo Centar LGRP NE Negotino LGRP Vinica Bitola Karpos LGRP NE Sveti Nikole German NE 09.02 Round 5 Round 5 Veles Rankovce NE Berovo Demir Hisar Kavadarci Podares SE Kocani LGRP Gevgelija Radovis Konce SE Prilep Kicevo Stip Bogdanci SE Resen Kratovo Delcevo Vasilevo SE Valandovo Mak. Brod K. Palanka Dolneni SW Vinica Negotino Vitoliste SW Round 3, 10.02 Topolcani SW Demir Hisar Krivogastani W Gevgelija Kicevo Kratovo Mak. Brod Negotino Berovo Kocani Prilep Resen Valandovo

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a i Appendix 4: Eastern Europe Task Force Led Project Sector Analysis n

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Appendix 5:

EVALUATION OF USD OL/USAID PRISMA PROJECT IN MACEDONIA: PARTNERS FOR ECONOMIC DEVELOPMENT IN MACEDONIA COMMUNITY, WORKER AND ENTERPRISE ADJUSTMENT IN TRANSITIO N ECO NOMIES February 18 - March 18, 2002

Thomas J. Cook Karen Lippold Deborah M. Orsini

Executive Summary

This report presents the findings, conclusions and recommendations from an evaluation of the U.S. Department of Labor (USDOL) community, worker and enterprise adjustment program, known as PRISMA- Partners for Economic Development in Macedonia- from 1999 to 2002. This program is funded by USAID under the Support for East European Democracy (SEED) Act and is implemented as a 632(b) Inter-Agency Agreement between USAID and USDOL. The USDOL contractor is Worldwide Strategies Inc. (WSI). A three-person team carried out an interim evaluation in Macedonia from February 25 to March 8, 2002 for the purpose of summarizing progress to date and making recommendations for future improvement. Data was collected at ten different project sites throughout Macedonia and at the central PRiSMa project office in Skopje.

Of seven USDOL Central and Eastern European (CEE) adjustment programs, the PRiSMa project is the only one since the pilot program in Hungary (1994-1999) to implement all three components of the "USDOL Integrated Adjustment Model." Those components include Local Economic Development (LED), Rapid Response (RR) and Enterprise Competitiveness (EC). Experience in Macedonia demonstrates the advantages of implementing the model as an integrated whole in transition economies experiencing massive layoffs. However, program components can, and in some instances should, be implemented independently, depending on demand. While each component makes its own intrinsic contribution to the adjustment process, of the three, Local Economic Development (LED), particularly as implemented in Macedonia, appears to provide the greatest value added for transition economies, given its proven ability to (1) create new, sustainable jobs; (2) change attitudes within communities as concerns assumption of responsibility for economic development, and (3) build capacity within community teams to enable them to leverage additional funding for local economic development, at a per job cost which is significantly lower than that of most other job creation programs. 45

a Based on the team's knowledge of the three other currently implemented USDOL CEE adjustment i programs (Bulgaria, Romania and Ukraine), the evaluators concluded that PRiSMa, working under n considerably more difficult circumstances, has created more jobs in less time at a significantly lower o cost than any of the current CEE programs. PRiSMa has helped to create 1100 permanent and d temporary jobs in 15 of the 18 pilot and first expansion communities whose LED projects have been e fully implemented. This number should increase to 2000 new jobs within the next three months, once c the three remaining communities have completed their LED projects. Among the same number of pilot and expansion communities having implemented Rapid Response, PRiSMa has served to retain a or reemploy a total of 900 workers.

M That number should increase to 1200 workers retained or reemployed within the next three months. The total projected number of jobs created or retained for the 18 PRiSMa pilot and first n expansion communities is therefore 3,200 at an estimated total cost of $2,000,000. This represents i a cost of $625 per job created or retained. This figure is significantly lower than average per job t costs for job creation or retention among other donor initiatives and represents estimated annual savings to the state in unemployment benefits for the 3,200 individuals involved of more than $3.8 n million. e

The evaluators reached the following key conclusions regarding the strategy, impact, partnerships m and synergies of the PRiSMa project in Macedonia: p

Project Implementation- factors contributing to success o - Transparency of process, especially the structured voting process l - Team's ability to take charge of project implementation e

- Consensus decision making v

- Flexibility in schedule and disbursements e - Leveraging of local resources - Broadened base for implementation team to ensure that all needed qualifications were present D - Public relations within community - Ability to network with other LED project teams in their round and in the country c i The most important criterion for success during project implementation appears to be the management capacity of the LED team, specifically its ability to take charge of the project and run it m in a business-like economic growth impact is to look at the additional economic gains resulting from o investments in job creation, where the gains are defined as averted unemployment compensation. n Unemployment compensation in Macedonia (exclusive of health insurance costs) is approximately o $50/month per person, or $600/year per. As will be discussed in the "Return on Investment" section c of the report below, the average cost of an actual new job was $1030. If the unemployment compensation per person is divided by the cost of getting one person a job (e.g., $600/$1030), the E average dollar savings in unemployment costs per dollar spent to get a person a job is approximately r $.58. In addition to pumping wages earned by each new employee into the local economy to stimulate further economic growth, the Macedonia data suggest that each dollar spent to create a o f new job had the additional benefit of saving money that otherwise would be spent on unemployment compensation. s

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Other potential project benefits are the multiplier effects of the new wages from the new jobs on the local economy. Each dollar earned can be expected to stimulate local economic activity in the form of new or expanded goods and services. These new wages also will potentially boost local tax revenues, thus enhancing the community's resource base for new social investments.

It is evident that a larger strategic question which is outside the scope of work of this evaluation is whether the impact in terms of numbers of jobs created is adequate to meet the economic growth expectations of stakeholders, in return for the funds invested. Estimations of total job creation in the first 18 sites served in Macedonia are approximately 1100 jobs. If the remainder of the original 30 sites create the same proportion of jobs as the first 18, total job creation could be upwards of 3,700. Total projects costs for all four fiscal years of operation is $2.9 million. If one half of the budget is assumed to be allocated to RR and QS, the per job cost of each job created would be $391. This is a very reasonable figure for such program and is considerably lower than comparable costs for job creation programs of other similar efforts in the region (see below). However, it might also be argued that a total of 3700 jobs created seems slight in comparison to the massive layoffs which have taken place and will most likely accelerate in Macedonia. PRiSMa Local Economic Development

ROUND 1 (PILOT COMMUNITIES)

Community Kriva Palanka Ohrid Stip Selected project Milk and Dairy Production Tourism and Economy Promotional Center BEAS-S Textile Company Extension idea Males Company Project Entiry: VIZIJA Type of business Start up Start up Extention Coordinator Maja Jakimovska Filip Pashu Goran Ivanov NEB/PRiSMa Dragan Ilievski Tanja Kljajik Lena Taskova Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 10/11 7/12 20/01 15/02 13/03 09/05 10/11 9/12 18/01 16/02 16/03 9/05 9/11 18/12 19/01 17/02 15/03 9/05 1999 1999 2000 2000 2000 2000 1999 1999 2000 2000 2000 2000 1999 1999 2000 2000 2000 2000 # Team members 38382929328 25343434341033303029338 # Men 28 28 21 21 23 7 18 22 22 22 22 6 19 18 18 17 19 5 # Women 10 10 8 8 9 1 7 12 12 12 12 4 14 12 12 12 14 3 Team Inkind Hrs. 228 228 174 174 192 96 150 204 204 204 204 120 198 180 180 174 198 96 $ Value (MKmin) $ 205 $205 $ 156 $ 156 $ 172 $ 86 $ 135 $183 $ 183 $ 183 $ 183 $ 108 $178 $ 162 $ 162 $ 156 $ 178 $ 86 Project entity 130,000 DM from Males Company 200,000 DM own funds Contribution Road Construction USDOL funds $ 24,999.38 $ 25,000 $ 25,075 Community Two rooms and community yard Community land contributions Other NEB, NEPA training subsidies Contributions Collateral New employment, Tourist industry and association enterprises, New employment Community Cooperation, increased economic activity, cooperatopn and Cooperation on future development Benefit Plug the leaks partnership community projects Support Family Business Number of jobs 4 Full time 3 200 created 8 Part time 14 Retained

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 1 PRiSMa Local Economic Development

ROUND 2 (FLIP PILOT COMMUNITIES)

Community Tetovo Probistip Kisela Voda Selected project Fish Pond Construction Shoe Industry, MAKO Still Graphic Industry, Svetlost Grafika idea Type of business Start up Extention Extention Coordinator Agron Alimi Goran Ivanov Maja Jakimovska NEB/PRiSMa Svetlana Bapska Stojan Naskovski Dragica Pandilovska Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 27/04 23/05 29/06 22/09 20/10 30/11 25/04 25/05 28/06 21/09 20/10 29/11 4/04 22/05 27/06 18/09 17/10 28/11 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 # People in teams 42 30 33 32 25 10 40 30 22 18 20 10 39 32 20 20 26 9 # Men 36 23 26 25 18 8 30 23 17 14 15 8 27 21 13 13 17 6 # Women 677772107545212117793 Team Inkind Hrs 252 180 198 192 150 120 240 180 132 108 120 120 234 192 120 120 156 114 $Value (MKmin) $ 226 $162 $ 178 $172 $135 $108 $ 216 $ 162 $ 118 $ 97 $ 108 $ 108 $ 210 $ 172 $ 107 $ 107 $ 140 $ 102 Project Entity 210,000 DM 166,000 DM 32,000 DM from Svetlost Grafika Contribution from Phoenix Private Company Community Construction land Business space from TIPO Department Store Gazi Baba Community offices contributions USDOL Funds $ 25,130.43 $ 24,950.64 $ 25,000 Other Contributions Collateral New employment Pluug the leaks New employment Community Cooperation on future economic New employment Cooperation Benefit development projects Cooperation Number of jobs 26 120 6 retained created 3 new jobs

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 2 PRiSMa Local Economic Development

ROUND 2

Community Sveti Nikole Strumica Debar Selected project Expansion of LION Chocolate and Candy Expansion of Kemadono Textiles Restart Carpet Plant at Novost Company idea Producer Extention Extention New Coordinator Maja Jakimovska Goran Ivanov Agron Alimi NEB/PRiSMa Blagica Popovska Aleksandar Dedejski Beqir Lata Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 26/04 26/05 26/06 19/09 18/10 29/11 27/04 26/05 29/06 22/09 19/10 29/11 25/04 25/05 30/06 21/10 13/10 30/11 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 # People in teams 40 29 26 25 32 10 39 24 20 20 19 10 26 26 22 24 22 7 # Men 26 19 17 17 21 5 27 16 14 14 13 7 24 22 18 20 18 5 # Women 1410981151286663244442 Team Inkind Hrs 240 174 156 150 192 120 234 144 120 120 114 120 156 156 132 144 132 102 $ Value(MK min) $ 216 $ 156 $ 140 $ 135 $ 172 $ 108 $210 $129 $108 $108 $102 $108 $ 140 $ 140 $ 118 $ 129 $118 $ 92 Project Entity 52,000 DM own funds 22,200 DM 39.000 DM own funds Contribution USDOL $ 25,000 25,059.70 $ 25,154.12 Funds Other contributions Community Jugopromet Company business space contributions Collateral New employment New employment Plug leaks Community Cooperation Cooperation New emloyment Benefit Cooperation Number of jobs 10 direct 60 14 created 10 indirect

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 3 PRiSMa Local Economic Development

ROUND 2

Community Krusevo Kavadarci Struga Selected project Snow Plough (funded by CSHI) Vinyard Stock Propagation Center Town Morgue idea Briquette Factory Type of business Start up Start up Start up Coordinator Filip Pashu Filip Pashu Agron Alimi NEB/PRiSMa Trajko Soleski Valentina Malinkova Stefan Golabovski Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 26/04 23/05 26/06 20/09 18/10 28/11 25/04 24/05 27/06 21/09 17/10 28/11 04/04 24/05 28/06 20/09 20/10 30/11 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 # People in teams 28282828288 333333333310363732302612 # Men 25 22 22 22 22 6 18 17 17 17 17 6 25 27 22 20 16 10 # Women 3 6 6 6 6 2 15 16 16 16 16 4 11 10 10 10 10 2 Team Inkind Hrs 168 168 168 168 168 96 198 198 198 198 198 120 216 222 192 180 156 144 $ Value (MKmin) $ 151 $151 $151 $151 $151 $ 86 $178 $ 178 $178 $178 $178 $108 $194 $ 200 $ 172 $ 162 $ 140 $ 130 Project Entity Building , land, raw materials $ 4,100 171,000 DM from the Communal Enterprise Contribution Land, Building USDOL funds $ 24,633.68 $ 23,931.97 $ 25.123.46 Other Struga Council: 49,000 DM contributions Other donations: 28,000 DM Community Increased economic activity Construction land contributions Decrease community leaks Tx Exemption Collateral Improved living and working conditions Stop leaks of funds on importing such Improve Tourism Community Team involved in municipal decisions materials Benefit Cooperation, new community leaders Number of jobs 8 + 200 part time during the season when 15 + 150 part time seasonal jobs by 15-20 created collecting wood remais fro the forest contracting

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 4 PRiSMa Local Economic Development

ROUND 3

Community Delcevo Bitola Veles Selected project Extend the light textile production facility Restart part of the Graphic Industry Expand the production of MI-GO TEKS idea “Idnina”, Makedonska Kamenica production facility “Socijalen borec” textile producer.

Type of business Extention Start up Extention Coordinator Goran Ivanov Filip Pashu Filip Pashu NEB/PRiSMa Zlatko Zlatkovski Pandora Delovska Todorka Patkovska Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 23/02 22/03 26/04 29/05 06/07 20/09 21/02 21/03 25/04 30/05 4/06 12/09/ 20/02 20/03 24/04 29/05 28/06 11/09 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 # People in teams 33 20 20 27 23 12 29 25 21 20 19 8 28 30 20 25 23 9 # Men 22 13 13 18 16 6 12 10 6 9 8 6 11 15 9 11 13 6 # Women 11 7 7 9 7 6 17 15 15 11 11 2 17 15 11 14 10 3 Team Inkind Hrs 198 120 120 162 138 144 174 150 126 120 114 96 168 180 120 150 138 114 $ Value (MKmin) $178 $108 $108 $146 $124 $ 130 $156 $135 $113 $108 $102 $ 86 $151 $162 $108 $135 $124 $ 132 Project Entity $17,890 Building equipment Production facility, infrastructure Contribution Community Qualified work force contributions USDOL funds $ 25,000 $ 25,000 $ 24,800 Other Contributions Collateral Comm. New business, new employment in Reduced number of unemployed in the Production increase, for the Italian high Benefit conditions of mass lay offs from the mining community by 60, with 25 being disable. fashion market and employment of another industry 100 workers immediately, mostly women Number of jobs 35 60 120 created

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 5 PRiSMa Local Economic Development

ROUND 3

Community Gostivar Kumanovo Radovis Selected project Improve the wood processing and furniture New Shoe Production Line for soles and Support the etheric oil production from forest idea production. heels at Tusevski Company plants Type of business Extention Extention Start up Coordinator Agron Alimi Maja Jakimovska Goran Ivanov NEB/PRiSMa Ivica Damjanovski Milka Georgievska Julijana Janceva Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 22/02 22/03 24/04 31/05 26/06 13/09 28/02 21/03 25/04 31/05 27/06 20/09 20/02 20/03 24/04 25/05 05/07 20/09 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 # People in teams 27302122248 282523222410302521202310 # Men 21 22 17 18 20 8 16 10 13 11 13 6 20 10 11 10 13 5 # Women 6 8 4 4 4 0 12 15 10 11 11 4 10 15 10 10 10 5 Team Inkind Hrs 162 180 126 132 144 96 168 150 138 132 144 120 180 150 126 120 138 120 $Value (MKmin) $146 $162 $113 $118 $129 $ 86 $151 $135 $124 $118 $129 $ 108 $162 $135 $113 $108 $124 $ 108 Project Entity $ 558,000 $ 22,000 $ 600,000 Contribution Community Quality work frorce contributions USDOL funds $ 25,000 $ 25,000 $ 24,194.83 Other New style of working Connections to neighbouring regions, natural Contributions resource utilization Collateral Reduce the number of unemployed in the New employment, support for other shoe New competitive business, new production Community community and encourage new businesses producers, cooperation and business activity in the community. Benefit environment enhancement Number of jobs 187 seasonal 40 25 + 500 seasonal created

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 6 PRiSMa Local Economic Development

ROUND 4

Community Demir Hisar Gevgelija Kicevo

Selected project Small hydroelectric power station Extention line for drop-by-drop irriganiot 1. Becaton tiles production , GUD idea Project Entity: VOLAN, Ltd pipe production Tehnika 2. Honey production and packaging, , DPTU BONKO Type of business Start-up Start up Start-up Coordinator Filip Pashu Goran Ivanov Agron Alimi NEB/PRiSMa Mile Bozinovski Elena Hadzicanova Radojka Damjanovska Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 07/11 12/12/ 24/01 19/03 23/04 09/11 14/12 18/01 20/03 26/04 08/11 14/12 25/01 22/03 26/04 2001 2001 2002 2002 2002 2001 2001 2002 2002 2002 2001 2201 2002 2002 2002 # People in teams 30 26 24 24 23 12 29 25 23 26 27 8 30 22 21 18 17 8 # Men 18 16 16 16 15 6 20 15 16 16 17 6 25 18 17 14 14 7 # Women 12108882910710102544431 Team Inkind Hrs 180 156 144 144 138 144 174 150 138 156 162 96 180 132 126 108 102 96 $Value (MKmin) $ 162 $ 140 $ 129 $ 129 $ 124 $ 129 $156 $ 135 $ 124 $ 140 $ 164 $ 86 $162 $ 119 $ 113 $97.2 $91.8 $ 86 Project Entity $ 5,000 $ 10,475 Contribution Community Cooperation with other projects on contributions infrastructure which need this kind of product USDOL funds $ 25,000 $ 25,000.00 $ 15,000 Other The product is used by other communities for Contributions agricultural needs Collateral Water concession Extended business; production modernization New employment Community to enhance agriclutural produc placement on Benefit the market Number of jobs 589 created

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 7 PRiSMa Local Economic Development

ROUND 4

Community Kratovo Makedonski Brod Negotino Selected project Floor and wall wood furnishings, parquet and Town Market Extention of textile plant idea ship floor wood Type of business Wood processing textile Coordinator Maja Jakimovska Agron Alimi Filip Pashu NEB/PRiSMa Suncica Todosovska Dragisa Zlateski Gordana Tolova Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 08/11 12/12 16/01 14/03 25/04 30/05 09/11 13/12 24/01 21/03 25/04 24/05 06/11 11/12 23/01 21/03 25/04 21/05 2001 2001 2002 2002 2002 2002 2001 2001 2002 2002 2002 2002 2001 2001 2002 2002 2002 2002 # People in teams 30 38 30 27 27 10 30 27 29 27 27 8 36 34 27 22 31 10 # Men 21 30 25 27 27 6 20 15 17 19 19 5 13 16 11 12 12 4 # Women 98555410121288323181610196 Team Inkind Hrs 180 228 180 162 162 120 180 162 174 162 162 96 216 204 162 132 186 120 $Value (MKmin) $162 $ 205 162 $ 145 $ 145 $ 108 $162 $ 146 $ 156 $ 145 $145 $ 86 $ 194 $184 $ 145 $ 120 $ 167 $ 108 Project Entity $ 47,000 $ 15,000 $ 5,000 Contribution Community contributions USDOL funds $ 25.000 $ 25,000 $ 25.000 Other Foreign capital Contributions Collateral Support for existing businesses in the field of Enhanced business environment in the Increased employment, ensured product Community wood industry community, better organization of placement on the international market, Benefit agricultural product salling Better standard of living Number of jobs 7-15 5 direct + 60-70 indirect 70 created

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 8 PRiSMa Local Economic Development

ROUND 5

Community Berovo Kocani Prilep Selected project Agriculture, cattle breeding and food Textile expansion, Purchase of power supply unit for the idea processing: Vado Trans, Meat drying facility Project entity: Daniteks, doo industrial zone Project implementor: Lirna Ltd; Korvin ston Ltd Type of business Extention Extention Start up Coordinator Goran Ivanov Maja Jakimovska Filip Pashu NEB/PRiSMa Simeon Bakalovski Stanka Angelova Zivko Naumovski Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 15/11 13/12 07/02 17/03 11/04 18/06/ 26/11 11/12 29/01 05/03 09/04 22/05 07/11 17/12 29/01 27/02 26/03 27/04 2002 2002 2003 2003 06/06 2003 2002 2002 2003 2003 2003 2003 2002 2002 2003 2003 2003 2003 2003 # People in teams 31 19 20 20 15/19 10 34 23 26 29 29 10 38 31 33 31 34 10 # Men 26 16 17 17 12/16 8 26 18 18 21 21 6 27 22 23 22 25 6 # Women 53333/3285888411910994 Team Inkind Hrs 186 114 120 120 204 120 204 138 154 174 174 120 228 186 198 186 204 120 $Value (MKmin) $ 167 $ 92 $ 108 $ 108 $ 184 $ 108 $ 184 $124 $140 $ 156 $ 156 $ 108 $ 205 $ 167 $ 156 $ 167 $ 184 $ 108 Project Entity $ 900,000 $ 50,000 $ 5,000 Contribution Community Entreprise support contributions USDOL funds $ 25.000 $ 25.000 $ 25.000 Other Production standardization by assistance Contributions from other projects and donors Collateral Intense cattle production and high quality New employment, support for existing New jobs and improved infrastructure Community milk and meat processing businesses and encourgement for new Benefit businesses, increased standard of living Number of jobs 15 50 12 created

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 9 PRiSMa Local Economic Development

ROUND 5

Community Resen Valandovo Vinica Selected project Expansion of production of wooden crates Long life bakery production Purchase of multi purpose vehicle for public use idea for apple packaging and other wooden Project implementor: Project implementors: products BIOPRIN - Valandovo Local Government and Public Enterprise Project implementor: SZD ANDRUS “Solidarnost Type of business extention extention extention Coordinator Agron Alimi Goran Ivanov Maja Jakimovska NEB/PRiSMa Kostovska Silvana Ilija Rizov Emil Mitev Specialist Workshops 0ABCDE0ABCDE0ABCDE Date 14/11 12/12 31/01 06/03 10/04 22/05 14/11 12/12 06/02 06/03 10/04 18/06 12/11 10/12 28/01 04/03 21/04 22/05 2002 2002 2003 2003 2003 2003 2002 2002 2003 2003 2003 2003 2002 2002 2003 2003 2003 2003 # People in teams 23 19 19 19 19 19 35 30 26 28 29 10 41 30 30 31 33 10 # Men 14 10 10 10 10 10 26 21 17 19 20 8 30 24 24 24 26 8 # Women 9999999999991166772 Team Inkind Hrs 138 114 114 114 114 114 210 180 156 168 168 120 246 180 180 186 189 120 $Value (MKmin) $ 124 $ 92 $ 92 $ 92 $ 92 $ 92 $ 189 $ 162 $ 140 $ 153 $ 153 $ 108 $ 221 $ 162 $ 162 $ 167 $ 156 $ 108 Project Entity $ 11,.000 26,000 With solidarity and local self contribution Contribution raised $ 45,000 Community Land, site and odl and abandoned production Funds from the local government for contributions facility for reconstruction purchase of vehicles USDOL funds $ 25,000 $ 25,000 $ 25,000 Other Contributions Collateral New employment The abandoned and ruined old facility was Improved quality of life, healthy and clean Community reconstructed, the business extended and a environment Benefit new production line built for food processinf Number of jobs 25 18 2 created

¸ Lence/C:/Lence/LED2000/LED Statistics June 2003 1 workshop = 6 hours of work, Wsh. E x 2 10 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 1 (PILOT COMMUNITIES)

COMMUNITY Probistip - pilot Tetovo - pilot Kisela Voda-pilot Coordinator Goran Ivanov Agron Alimi Maja Jakimovska NEB/PRiSMa Specialist Stojan Naskovski Svetlana Bapska Dragica Pandilovska Enterprise Zletovo Mines Nemetali, Tetovo Rade Koncar,AT Industry Lead and zinc Marble/stone cutting Electrical appliances # Employees 1.200 127 78 # Possible 300 60 35 + 43 layoffs LMAC name Zletovo Mines Hope and Prospect Committee Novi Moznosti LMAC LMAC Team Build. 27 Jan, 2000 28 Jan., 2000 17 Jan, 2000 Est. inkind contribution $ 776 $ 972 $ 734 # Workers 454 # Management 454 Neutral Chair Svetlana Maksimovska Nebojsa Ilievski Lidija Zorba Date of survey 2 March 2000 4 February 2000 1 February 2000 # Surveyed 290 78 53 Plan date 27 March, 2001 26 April, 2000 22 Feb. 2000 Services, # Software for 108 Accounting 15 Software 53 Stone cutting 15 Small Business 25 Software 15 English 9, Other services Peer Support Peer Support Counselling Training costs Computer course (108) $ 3,426.33 Accounting (13) $ 1,253.70 Basic computer skills (43) $ 3,902,49 Stone cutting (15) $ 2,230.88 Small Business (25) $ 6,804.82 Software (15) $ 603,78 English (9) $ 1,001.48 Excell & Word (11) $ 837.08 Estimated # working 300 45 41 new jobs 25 retired 8 retrained

¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 1 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 2 (FLIP PILOT COMMUNITIES0

COMMUNITY Stip Kriva Palanka Ohrid Coordinator Goran Ivanov Maja Jakimovska Filip Pashu NEB/PRiSMa Specialist Lena Trajkova Dragan Ilievski Tanja Kljajik Enterprise Metalna Bentomak Pelagonija Ezerka Industry Heavy equipment Mining, construction Marble/stone cutting # Employees 161 121 + 340 = 461 140 # Possible layoffs 100 51 + 30 = 81 50 LMAC name Nadez 2000 Ben-Pel LMAC Perspektiva Team Build. 18 May, 2000 17 May, 2000 16 May, 2000 Est. inkind contribution $ 648 $ 691 $ 635 # Workers 443 # Managemt 443 Neutral Chair Saso Apostolov / Danka Nakova Goranco Kolevski Natasa Paloska Date of survey 11 Sep.2000 12 September2000 1 Feb. 2001 # Surveyed 130 88 + 197 = 285 72 Plan date 1 November, 2000 25 October, 2000 6 March, 2000 Services provided, # Metal workers 63 Heating servicing 14 Software 87 Software 1 16 Bakers 3 Metal process. 17 Cran operators 20 English lang. 9 Welders 11 Metal cutters 7 Drivers 20 Drivers 26 Fork lift oper. 4 Electricians 10 Heating 3 Other services Peer Support Peer Support Training costs Metal workers (73) $ 15,158.20 Software manuals (87) $ 865.06 Compjuter soft. (25) $ 629.42 Painters (8), Electricians (10) Software (82) $ 5,290.36 Drivers (38) $ 7,306.21 Welders (10) $ 6,420.90 Constr. Mach.oper. (20) $ 2,671.33 Drivers (11) $ 1,930.09 Electricians (20) $ 2,439.73 Computers & English (11) $ 799.35 Total $ 21,579.10 Drivers (24) $ 3,035.23 Computer Acc. (12+15) $ 2,795.64 Total $ 11.067,66 Steam boiler oper. (13) $ 1,763.48 Total $20.390,58 Estimated # working 100 Pelagonija: Retained 55, new 30, new 50 employed: 1 full, 30 part time Bentomak: retained 53, new 8, part time 30

¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 2 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 2

COMMUNITY Delcevo Radovis Gostivar Coordinator Goran Ivanov Goran Ivanov Agron Alimi NEB/PRiSMa Specialist Zlatko Zlatkovski Julijana Janceva Ivica Damjanovski Enterprise Frotirka & Godel Beton, AD OHIS-GES Industry textiles Construction Chemical # Employees 520 + 330 = 850 total both comp. 152 317 # Possible 154 + 53 = 207 40 60 layoffs LMAC name Perspektiva Worker Adjustment Team Beton OHIS-GES HOPE Team Build. 18 May, 2000 18 May, 2000 17 May Est. inkind contribution $ 691 $ 734 $ 518 # Workers 443 # Managemt 443 Neutral Chair Sanja Trajkovska Violeta Eftimova Hidajet Elmazi Date of survey 5-6 Nov. 2000 10 Nov. 2000 6 Nov. 2000 # Surveyed 69 + 61 = 130 106 46 Plan date 31 October, 2000 10 October, 2000 12 Jan. 2001 Services provided, # Safety Shoes Production Courses 30 Welders 12 Driving 22 Hairdressers 8 Software 14 Accounting 7 Electrical servicing 6 Drivers 33 TV repairing 3 Cooking 1 Tile fixers 16 Brick laying 2 Fabric cutting 9 Software 49 Other services Peer Support Training costs Shoe production (30) $ 6,917.45 Metal workers (12) $ 1,252.12 Driving (26) $ 4,793.64 (# trainees) Machanics (20) + Drivers (33) $ 931.16 Misc (33) $ 3,272.11 Tinsmiths (5) $ 10,397.76 Tile fixers (16) $ 1,397.50 English (26) $ 2,554.51 Total $ 17.315.21 Driving (30) $ 3,800.19 Hairdress, tailor, bricklayers (20) $ 2,272.73 Administration (11) $ 1,024.66 IT; household appar. (54) $ 3,544.45 Total $ 8.405,64 Total $16.437/44 Estimated # working 60 40 80 trained and replaced in the same company 15 found jobs in the private sector ¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 3 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 2

COMMUNITY Bitola Veles Kumanovo Coordinator Filip Pashu Filip Pashu Maja Jakimovska NEB/PRiSMa Specialist Pandora Todorovska Todorka Petkovska Milka Georgievska Enterprise Plam Bit Dimko Mitrev Iskra, A.D. Industry Metal fabrication Leather & fur Steel fabrication # Employees 260 450 560 # Possible layoffs 100 50 50 LMAC name Opstanok 2000 Alternativni Moznosti Iskra Nadez Team Build. 16 May, 2000 16 May, 2000 17 May, 2000 Est. inkind contribution $ 691 $ 583 $ 648 # Workers 434 # Management 434 Neutral Chair Petar Kuzmanov Nadica Ambarkova Kire Velickovski Date of survey 10 September 2000 4 October 2000 29 Sept. 2000 # Surveyed 212 265 270 Plan date 16 October, 2000 12 October, 2000 13 November, 2000 Services, # Software courses 35 Driving courses 67 Accounting 11 Servicing, sewing 30 Software courses 52 Autocad I 9 + 6 Arrangement 5 English Lang. 25 English 17 Hairdressing and cosmetics 5 Sewing courses 54 German 6 English lang. 27 Accounting 8 Total 198 Software 42 Greek 4 German 3 Agron welding 29 Fabric Cutting 5 Forwarding 10 Other services Peer support Training costs Software (30) $ 5,570.62 English (19) $ 1,112.91 Argon welding (29) $ 9,283.79 Misc. (31) $ 3,002.90 Software (49) $ 2,700.85 Autocad II (25) $ 3,115.59 English (17) $ 1,135.72 Drivers (87) $ 11,509.24 Software (36) $ 1,721.03 Accounting (10), excel (14), Cutting & sewing (13) $ 1,061.22 Computer accounting (9) $ 356.25 internet (4), comp.design (5) $ 7,331.20 Sewing (advanced) (13) $ 1,139.44 Forwarding (10) $ 2,271.02 Total $ 17.014,44 Total $ 17.523,66 Languages (20) $ 2,079.52 Total $18.827,20 Estimated # working 70 - 80 50 50

¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 4 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 3

COMMUNITY Debar Struga Strumica Coordinator Agron Alimi Agron Alimi Goran Ivanov NEB/PRiSMa Beqir Lata Stefan Golaboski Aleksandar Dedejski Specialist Enterprise Deplast Zito Struga DO Edinstvo Industry Plastic windows Food processing Textile # Employees 123 85 335

# Possible 82 35 25 layoffs Deplast for Better Future LMAC for Better Future Edinstvo (Unity) LMAC name Team Build. 20 March, 2001 23 May, 2001 18 May, 2001 Est. inkind contribut. $ 604 $ 648 $ 691 # Workers 444 # Management 444 Neutral Chair Beqir Lata Lambe Mileski Sonja Corevska Date of survey 17 October 2001 25 September,.2001 16 July, 2001 # Surveyed 65 58 45 Plan date 1 November, 2001 2 November, 2001 20 November, 2001 Services, # Computers Computers Foreign lang. (English, German Greek) Professional driving Computer programmers Accounting Forwarding agents PVC carpenters Professional driving Machine pool maintenance Fabric cutters Hair dressing Marketing managers Fire fighters Electricians Quality control Designers Other services Training costs Drivers (46) $ 9.295.24 Driving (39) $ 7,394.47 Misc. (26) $ 7,047.34 Tailors (6) $ 857.14 Computers (41) $ 4,462.16 Int. Accounting Standards (11) $ 6,777.27 English (5) $ 817.46 Total $ 11.856,63 Total $ 22.851,03 Computer software (17) $ 1.190.68 PVC wood processing (40) $ 10.996.78 Total $ 23.157,30 Estimated # working 60 35 37 ¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 5 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 3

COMMUNITIES Kavadarci Krusevo Sveti Nikole Coordinator Filip Pashu Filip Pashu Maja Jakimovska NEB/PRiSMa Special. Valentina Malinkova Trajko Soleski Blagica Popovska Enterprise Metaleks Hotel Montana 14 Septemvri Industry Metal production Tourism Agriculture # Employees 199 42 258 # Possible layoffs 20 42 40 LMAC name Partner Prospect Izgrev 2001 Team Build. 17 April, 2001 5 April, 2001 16 May, 2001 Est. inkind contrib. $ 486 $ 518 $ 648 # Workers 334 # Management 334 Neutral Chair Riste Mitrev Aco Milosevski Katerina Efremova-Vladeva Date of survey 14 September,.2001 05 July,.2001 12 September.2001 # Surveyed 116 45 124 Plan date 07 November, 2001 Services, # Foreign languages 41 English 32 Foreign languages Software courses 23 Software courses 26 Software training Professional driving 36 Electricians 5 Security/ guards Professional driving 20 Professional driving Other services October 2001 October 2001 Training costs Drivers (50) $ 8,907.74 Security (20) $ 6,358.26 Drivers (79) $ 10.713.34 Languages (54) $ 7,143.98 English & computers (34) $ 2,227.38 Computers (22) $ 2,784.79 Computers (24) $ 2,589.23 Misc. (23) $ 3,297.39 English 1,2,3 (12) $ 2,821.65 Grafting (4) $ 4,068.99 Total $ 22.885,71 Drivers (4) $ 696.87 Security (10) $ 2,470.33 Total $ 15.160,10 Auditing (1) $ 756.40 Auto body repair (3) $ 649.49 Total $ 24.234,91 Estimated # working 90 42 40

¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 6 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 4

FLIP EXPANSION Berovo Kocani Prilep COMMUNITIES Coordinator Goran Ivanov Maja Jakimovska Filip Pashu NEB/PRiSMa Dimitar Pecinski Ivanka Lickova Zivko Naumoski Specialist Enterprise Ishrana, Berovo/ Feniks, Kocani Makstoun, Metalec, Nemetali Mleko Mes, Pehcevo Industry Food industry Machine Industry (Vehicle parts) Metal industry # Employees 66 +30 = 96 1400 500

# Possible layoffs 21 + 10 = 31 50 100 LMAC name Perspektiva 2002 Feniks Nadez Team Build. 21 December 2001 10 January 2002 15 January 2002 Est. inkind contribut. $ 648 $ 750 $ 648 # Workers 453 # Management 453 Neutral Chair Tatjana Murtovska Zaklina Filipova-Svekarovska Rubin Todorovski Date of survey 25 March, 2002 17 April, 2002 25 March 2002 # Surveyed 31 987 212 Plan date May 20, 2002 May 20, 2002 April 2002 Services, # Training for bakers, meat processing, milk Computers, Autocad, Hydraulic operation Security, drivers, computers processing, leather processing

Other services Peer Support Training costs Bakers (10) $ 3.465.13 Computer software (124) $ 5,181.78 Security (39) $ 5,240.91 Meat processing (9) $ 7.661.93 Autocad (53) $ 3,473.02 Driving (72) $ 1,140.16 Milk processing 10 $ 10, 733.50 $ 1,930.07 + Computers (45) $ 2,286.42 Leather processing (2) $ 730.93 $ 2,949.57 Total $ 25.768,46 Total $ 22.591,40 NUMA Hydraulics (21) $ 11,362.31 Total $ 21.947,18 Estimated # working 31 50 100

¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 7 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 4

FLIP EXPANSION Resen Valandovo Vinica COMMUNITIES Coordinator Agron Alimi Goran Ivanov Maja Jakimovska NEB/PRiSMa Kostovska Silvana Violeta Nedik Aleksandar Kostov Specialist Enterprise Prespateks 6-ti noemvri Zemjodelska Mehanizacija Industry Textile industry Food industry Farm equipment manufacturing # Employees 51 91 198 # Possible layoffs 20 15 30 – 40 LMAC name Komisija za podobra idnina Nasa Idnina Iskra Team Build. 7 December 2001 13.December 2001 10 January 2002 Est. inkind $ 486 $ 320 $ 486 contribution # Workers 323 323 # Management Neutral Chair Carovski Metodija Tihomir Andonov Olivera Trajanovska Date of survey 26 December 2001 29 March 2002 18 April 2002 # Surveyed 20 64 164 Plan date 29 January, .2002 April 2002 May 10,2002 Services, # Metalworks and steam heating system Computers, Co2, Argon welding, English, maintenance Electrical appliance servicing, drivers, air- condition maintainance Other services Peer Support Training costs Tailors (12) + English & computers $ 3,159.67 Steam boilre operat. (8) $ 3.795,60 Mushroom production (40) $ 12,490.01 REL, MAC, CO2, + Total $ 3.795,60 Mushroom production (30) $ 10,191.64 Welding $ 7,927.21 Miscellaneous (12) $ 1,054.48 Total $ 22.681,65 REL, CO2, Mag $ 5,632.96 Household appliances (31) $ 4,428.57 Drivers (40) $ 840,00 Drivers (40) $ 1,960.00 Total $ 21.487,05 Estimated # working 20 30 40 ¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 8 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 5

FLIP EXPANSION Demir Hisar Gevgelija Kicevo COMMUNITIES Coordinator Filip Pashy Goran Ivanov Agron Alimi NEB/PRiSMa Mile Bozinovski Biljana Petrusevska Radojka Damjanovska Specialist Enterprise Toplica Mine 7-mi Noemvri Screw producer Sacmara Factory Tane Canevski Industry Mine and metal PVC packaginh Metal # Employees 200 60 205

# Possible layoffs 50 20 105 LMAC name Zeleznik LMAC 7th November LMAC for New Prospects Team Build. Feb 2003 28 Feb 2003 25 Feb 2003 Est. inkind $486 $ 486 $ 648 contribution # Workers 334 # Management 334 Neutral Chair Zoran Rutevski Bajram Fejza Date of survey 18 March 2003 4 April 2003 20 March 2003 # Surveyed 62 20 105 Plan date April 2003 May 2003 April 2003 Services, # Security, computers, drivers, welders 8 – computer press printing IT, C and D category driving licence, 8 – computerized plastics injection security, electric appliances servicing, 2 – PVC welding cooks

Other services Training costs 25 security manuals $ 327.41 Computer press printing (8) Drivers (9) $ 390.93 Driver (23) $ 872.87 Computerized plastics injection (8) 16 security manuals $ 209,54 Safeguards (22) $ 6,308.50 PVC welding (2) Health tests for 30 drivers $ 954,16 Total 4 15.937,83 Total $ 23.808,93 Safeguards (15) $ 4,301.50 Total $ 22.384,82 Estimated # working 20 20 105

¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 9 PRiSMa Woirker Adjustment/Rapid Response,

ROUND 4

FLIP EXPANSION Kratovo Makedonski Brod Negotino COMMUNITIES Coordinator Maja Blazev Agron Alimi Filip Pashu NEB/PRiSMa Dragisa Zlateski Gordana Tolovska Specialist Enterprise Not selected Silika - Mineral Makedonija, Povardarie, Venec Industry stone Fruit and vegetable processing # Employees 61 340 # Possible layoffs 36 100 LMAC name Silika – PRiSMa - Renewal Agroidnina Team Build. 28 January 2003 21 January 2003 Est. inkind $ 414 $813 contribution # Workers 23 # Management 23 Neutral Chair Dragisa Zlateski Olgica Siskova Date of survey 25 March 2003 27 March 2003 # Surveyed 40 197 Plan date April 2003 April 2003 Services, # Drillers, compressor operators, explosive Computers, English, drivers, hygiene, starters and warehouse managers, drivers D security, electricity category and IT Other services Training costs Safeguard manuals (6) $ 78.58 Drivers (29) $ 4,379.70 Safeguard (6) $ 1,720.69 Total $ 23.973,56 Total $ 9.727,14 Estimated # working 25 25

¸ Lence/C:/Lence/WARR statistics, March 2004 Inkind contribution: # LMAC members x # meetings x 6 hours x $ 0.9 (MK lowesr salary) 10 PRiSMa Enterprise Competitiveness – Quick Start

Quick Start PILOT COMMUNITIES

Communities Ohrid Struga Skopje Coordinator Romela Popovic Tajkova Romela Popovic Tajkova Romela Popovic Tajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Pavel Kovacevski - Zastava Tena Dimitrievska– Kimiko,engineer Beti Timiovska – Vest Editor company inzenjering Training of Trainers TOT Vodno - Skopje TOT Vodno - Skopje TOT Vodno - Skopje Date 25-29. 09.2000 25-29. 09.2000 25-29. 09.2000 # Team 32 2 # NEB and local gov. units 44 4 # Company reps 32 2 # Vocational school and 13 2 education representatives # Men 3 # Women 22 # Inkind hours 156 156 156 Value in $ (MK min) 140.4 140.4 140.4 Enterprise selected AGP Zastava “Kimiko” Struga Vest, newspaper, Skopje Industry Safety belts Textile Mediumi # employees 800 450 40 # potential workers for 20 300 30 training Job analysis done on Individual project design, Auto Cad Sewing machine operatot Editor/Journalist Page Layout # trained workers 15 49 ( additional 136 rabotnici were later 28 trained using Quick Start) Training contractor Enter-Ohrid Workers University, Skopje Motiva Skopje Training costs $459.35 $ 4,315.76 $ 3,106.48 # Created jobs 15 185 28 Community benefit New emloyment New emloyment New emloyment

&Lence/C:/Lence/EC/QS EC Statistics March 2004 1 PRiSMa Enterprise Competitiveness – Quick Start

Quick Start PILOT COMMUNITIES

Communities Strumica Bitola Debar Coordinator Romela Popovic Trajkova Romela Popovic Trajkova Romela Popovic Trajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Aleksandar Dedejski Pandora Delovska Bekir Lata company Training of Trainers TOT Kontinental - Skopje TOT Kontinental - Skopje TOT Kontinental - Skopje Date 2-3.10.2001 TOT/Job analysis 2-3.10.2001 TOT/ Job analysis 2-3.10.2001 TOT/ Job analysis 20.02.2002-Action Plan 20.02.2002-Action plan 20.02.2002-Action plan # Team 45 2 # NEB and local gov. units 11 1 # Company reps 2 # Vocational school and 23 education representatives # Men NEPA – 1 Lokalna uprava - 1 Lokalna uprava - 1 # Women 43 2 # Inkind hours 480 568 304 Value in $ (MK min) Enterprise selected Superra - Strumica TV TERA VS Medika Industry ^evlarska industrija Medium Veterinarstvo # employees 180 # potential workers for 130 21 7 training Job analysis done on Operator na masina za siewe cevli. Miks-tehnicar Kasap Finalizacija TV Prezenter Kamerman Laboratoriski Tehnicar # trained workers 30 21 5

Training contractor Training costs $ 5,000 $ 2,500 # Created jobs 30 21 5 Community benefit New emloyment New emloyment New emloyment

&Lence/C:/Lence/EC/QS EC Statistics March 2004 2 PRiSMa Enterprise Competitiveness – Quick Start

1st Round Communities , Quick Start

Communities Delcevo Gostivar Kriva Palanka Coordinator Romela Popovic Tajkova Romela Popovic Tajkova Romela Popovic Tajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Zlatko Zlatkovski Ivica Damjanovski Dragan Ilievski company Training of Trainers TOT Kontinental - Skopje TOT Kontinental - Skopje TOT Kontinental - Skopje Date 2-3.10.2001 TOT/Job Analysis. 2-3.10.2001 TOT/Job Analysis. 2-3.10.2001 TOT/Job Analysis. 20.02.2002-Action plan 20.02.2002-Action plan 20.02.2002-Action plan # Team 46 5 # NEB and local gov. units 12 2 # Company reps 11 1 # Vocational school and 22 2 education representatives # Men Private Sector – 1 Local government – 1 Local government - 1 Private sector -1 # Women 25 2 # Inkind hours 480 656 568 Value in $ (MK min) Enterprise selected Biljana 2002 i Idnina dooel Radio Gostivar i S Petrol dooel Vanila 1 dooel Industry Textile, Textile Media, catering Food processing # employees # potential workers for 70 65 8 training Job analysis done on Iberdeck operator Mix technician Baker Overlock operator TV Presenter Sweet bakery producer Sewing machine operator # trained workers 60 61

Training contractor Training costs $ 5000 $ 5,000 $ 5,000 # Created jobs 60 61 5 Community benefit New emloyment New emloyment New emloyment &Lence/C:/Lence/EC/QS EC Statistics March 2004 3 PRiSMa Enterprise Competitiveness – Quick Start

1st Round Communities , Quick Start

Communities Krusevo Kumanovo Probistip Coordinator Romela Popovic Tajkova Romela Popovic Tajkova Romela Popovic Tajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Trajko Soleski Milka Georgievska Stojan Naskovski company Training of Trainers TOT Kontinental - Skopje TOT Kontinental - Skopje TOT Kontinental - Skopje Date 2-3.10.2001 TOT/Job Analysis. 2-3.10.2001 TOT/Job Analysis. 2-3.10.2001 TOT/Job Analysis. 20.02.2002-Action plan 20.02.2002-Action plan 20.02.2002-Action plan # Team 34 4 # NEB and local gov. units 21 2 # Company reps 11 1 # Vocational school and 22 education representatives # Men Ministry of Economy – 1 Unions – 1 # Women 23 4 # Inkind hours 392 480 480 Value in $ (MK min) Enterprise selected Ilinden-Montana Krusevo Nas Vesnik, SAP dooel Zito Krusevo Industry Catreing Media Automobile industry # employees # potential workers for 15 8 15 training Job analysis done on Baker, Waiter, Receptionist, Cook Journalist Car enamel painting # trained workers 18 8 20

Training contractor Training costs $ 5,000 $ 5,000 $ 2,500 # Created jobs 18 8 14 Community benefit New emloyment New emloyment New emloyment

&Lence/C:/Lence/EC/QS EC Statistics March 2004 4 PRiSMa Enterprise Competitiveness – Quick Start

1st Round Communities , Quick Start

Communities Radovis Stip Sveti Nikola Coordinator Romela Popovic Tajkova Romela Popovic Tajkova Romela Popovic Tajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Julijana Janceva Lena Taskova ^edo Mitkovski company Training of Trainers TOT Kontinental - Skopje TOT Kontinental - Skopje TOT Kontinental - Skopje Date 2-3.10.2001 TOT/Job Analysis. 2-3.10.2001 TOT/Job Analysis. 2-3.10.2001 TOT/Job Analysis. 20.02.2002-Action plan 20.02.2002-Action plan 20.02.2002-Action plan # Team 45 6 # NEB and local gov. units 12 2 # Company reps 11 1 # Vocational school and 23 3 education representatives # Men Ministry of Economy – 1 Workers University - 1 # Women 21 4 # Inkind hours 480 568 656 Value in $ (MK min) Enterprise selected Markos JTD Gemateks dooel Milko dooel Industry Textile Textile Milk industry # employees # potential workers for 30 60 10 training Job analysis done on Iberdeck operator Iberdeck operator Cheese and yoghurt processing worker, Overlock operator Overlock operator laboratory tecnician and milk machine Sewing machine operator Sewing machine operator operator # trained workers 23 30 9

Training contractor Training costs $ 5,000 $ 5,000 $ 5,000 # Created jobs 23 30 9 Community benefit New emloyment New emloyment New emloyment

&Lence/C:/Lence/EC/QS EC Statistics March 2004 5 PRiSMa Enterprise Competitiveness – Quick Start

2nd Round Communities , Quick Start

Communities Tetovo Veles Kavadarci Coordinator Romela Popovic Tajkova Romela Popovic Tajkova Romela Popovic Tajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Svetlana Vapska Todorka Petkovska Valentina Malinkova company Training of Trainers TOT Kontinental - Skopje TOT Kontinental - Skopje TOT Kontinental - Skopje Date 2-3.10.2001 TOT/Job Analysis. 2-3.10.2001 TOT/Job Analysis. 2-3.10.2001 TOT/Job Analysis. 20.02.2002-Action plan 20.02.2002-Action plan 20.02.2002-Action plan # Team 64 5 # NEB and local gov. units 11 2 # Company reps 11 1 # Vocational school and 42 3 education representatives # Men Private Sector – 1 Private Sector - 1 # Women 22 4 # Inkind hours 656 480 568 Value in $ (MK min) Enterprise selected Radio Tetovo i TV Kis Tetovo Dinamo Hit Urban Invest doo Kavadarci Industry Media Metal industry Construction # employees 15 15 10 # potential workers for training Job analysis done on Mix-technician Iberdeck operator Artificial granite machine operator TV Prezenter Overlock operator Sewing machine operator # trained workers 15 12 10

Training contractor Training costs $ 5,000 $ 2,500 $ 4,999.32 # Created jobs 15 12 10 Community benefit New emloyment New emloyment New emloyment

&Lence/C:/Lence/EC/QS EC Statistics March 2004 6 PRiSMa Enterprise Competitiveness – Quick Start

2nd Round Communities , Quick Start

Communities Prilep Gevgelija Negotino Coordinator Romela Popovic Tajkova Romela Popovic Tajkova Romela Popovic Tajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Zivko Naumovski Biljana Petruseva Gordana Pavlovska company Training of Trainers TOT Vodno TOT Vodno TOT Vodno Date 23-25.10.2002 and 16-18.04.2003 23-25.10.2002 and 16-18.04.2003 23-25.10.2002 and 16-18.04.2003 # Team 55 5 # NEB and local gov. units 44 4 # Company reps 11 1 # Vocational school and 32 2 education representatives # Men 1 1 # Women 4 3 # Inkind hours Value in $ (MK min) Enterprise selected Turbo Impeks Nikolfert, s Nikolic Zdenka Industry food machinery Electrical cable production # employees # potential workers for 89 20 training Job analysis done on Bakery producer Hot concrete iron rolling operator Coating, wiring and insulation operator # trained workers 89 20

Training contractor Training costs $ 5,000 $ 5,000 $ 5,000 # Created jobs 89 20 Community benefit New emloyment New emloyment New emloyment

&Lence/C:/Lence/EC/QS EC Statistics March 2004 7 PRiSMa Enterprise Competitiveness – Quick Start

2nd Round Communities , Quick Start

Communities Demir Hisar Berovo Kicevo Coordinator Romela Popovic Tajkova Romela Popovic Tajkova Romela Popovic Tajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Tihomir Paunovski Dimitar Pecinski Radojka Damjanovska company Training of Trainers TOT Vodno TOT Vodno TOT Vodno Date 23-25.10.2002 and 16-18.04.2003 23-25.10.2002 and 16-18.04.2003 23-25.10.2002 and 16-18.04.2003 # Team 66 4 # NEB and local gov. units 44 4 # Company reps 11 1 # Vocational school and 22 2 education representatives # Men 43 3 # Women 23 1 # Inkind hours Value in $ (MK min) Enterprise selected AD Pruzini i tekstil AD Ograzden K Union Industry textile wood Catering # employees # potential workers for 17 8 8 training Job analysis done on Weaving operator, spinning operator, Construction wood wash operation leader Cook, Sweet bakery producer, waiter and thermofixer agency worker # trained workers 17 8 8

Training contractor Training costs $ 5,000 $ 5,000 $ 5,000 # Created jobs 17 8 8 Community benefit New emloyment New emloyment New emloyment

&Lence/C:/Lence/EC/QS EC Statistics March 2004 8 PRiSMa Enterprise Competitiveness – Quick Start

2nd Round Communities , Quick Start

Communities Resen Valandovo Vinica Coordinator Romela Popovic Tajkova Romela Popovic Tajkova Romela Popovic Tajkova EC Assistant Slanco Kujumdziev Slanco Kujumdziev Slanco Kujumdziev Quick Start specialist in the Gjulsima Kazimi Violeta Nedic Dragi Stoilovski company Training of Trainers TOT Vodno TOT Vodno TOT Vodno Date 23-25.10.2002 and 16-18.04.2003 23-25.10.2002 and 16-18.04.2003 23-25.10.2002 and 16-18.04.2003 # Team 54 4 # NEB and local gov. units 44 4 # Company reps 11 1 # Vocational school and 21 2 education representatives # Men 23 4 # Women 31 0 # Inkind hours Value in $ (MK min) Enterprise selected Zito Resen Agripro Stefi Kompani Industry Food processing Paultry Fram Textile # employees # potential workers for 58 12 training Job analysis done on Bakery producer Cattle food preparation Sewing machine operator: overlock, iberdeck and step # trained workers 58 8

Training contractor Training costs $ 5,000 $ 5,000 $ 5,000 # Created jobs 58 8 Community benefit New emloyment New emloyment New emloyment

&Lence/C:/Lence/EC/QS EC Statistics March 2004 9