Usaid/Oti Macedonia Support Initiative Semi-Annual Report May 1, 2017 – October 31, 2017

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USAID/OTI MACEDONIA SUPPORT INITIATIVE SEMI-ANNUAL REPORT MAY 1, 2017 – OCTOBER 31, 2017

OCTOBER 2017 This publication was produced for review by the United States Agency for International Development. And prepared by AECOM International Development

USAID/OTI MACEDONIA SUPPORT INITIATIVE SEMI-ANNUAL REPORT MAY 1, 2017 – OCTOBER 31, 2017

Submitted to: USAID Office of Transition Initiatives

Prepared by: AECOM International Development

DISCLAIMER: The authors’ views expressed in this document do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

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TABLE OF CONTENTS Table of Contents ...... ii Introduction ...... 1 Political context...... 1 Program strategy ...... 3 DEBATE PROGRAM REPRESENTS DIVERSE POLITICAL PERSPECTIVES ...... 4 CREATIVE CIVIC INITIATIVE TRIGGERS CHANGE ...... 5 Grants Summary ...... 5 Conclusion ...... 5

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INTRODUCTION In 2015, Macedonia’s four major political parties requested the European Union (EU) and the United States Government (USG) help Macedonia resolve its political crisis. To assist with this process, USAID launched the USAID/OTI Macedonia Support Initiative (MSI) in September 2015 to support the key reform processes outlined in the Przino Agreement. In December 2015, USAID increased its support to Macedonia by expanding this initiative to a full program, implemented by AECOM International Development. MSI is a three-year program with an activated contract ceiling of approximately US$16,200,000.

From May 2017 to November 2017, the program worked to: • Support urgent priorities outlined in the reform process, • Expand civic engagement, and • Increase media outlets’ willingness to produce diverse, balanced, and/or fact-based content

Through the implementation of MSI, USAID/OTI works closely with civil society organizations, media groups, and government institutions to increase access to reliable information, promote civic engagement, and support democratic reforms.

POLITICAL CONTEXT In May 2017, a new coalition government composed of the Social Democratic Union of Macedonia (SDSM) and the Democratic Union for Integration (DUI) formed. The transition came after four months of political deadlock and protest following the failure of the former ruling party, the Internal Macedonian Revolutionary Organization – Democratic Party for Macedonian National Unity (VMRO-DPMNE), to win a clear majority or form a coalition and President Gjorge Ivanov’s refusal to give SDSM the mandate to form a government. On April 27, a majority in Parliament paved the way for SDSM to assume governance after a majority elected Talat Xhaferi as speaker. Moments after the decision, approximately 200 people stormed Parliament in violent protest that left over 100 people injured. 1 The incident prompted widespread condemnation and increased pressure from citizens and the international community to resolve the crisis by formally recognizing the coalition formed between SDSM and DUI and the new speaker.2 On May 17, President Ivanov granted a mandate to SDSM leader Zoran Zaev to form a new government. On May 31, Parliament officially voted in the new SDSM and DUI coalition government.

On July 4, the new government released the “3-6-9 Plan”, which outlines key reform priorities to improve governance and reorient the country’s trajectory towards Euro-Atlantic integration.3 The plan integrates recommendations from the Przino Agreement, the 2015 Priebe Report, and the EU Commission to put forth a reform agenda over nine months. The plan sets specific reforms to be

1 Hopkins, Valerie. “What Happened in Macedonia, and Why.” The Atlantic, 28 Apr. 2017, www.theatlantic.com/international/archive/2017/04/macedonia-parliament-zaev-nationalist-violence-eu-europe/524733/. 2 Gjukovikj, Danilo, and Sarah Wilson Sokhey. “This Is Why the West Should Pay Attention to the Drama in Macedonia.” The Washington Post, 29 May 2017, www.washingtonpost.com/news/monkey-cage/wp/2017/05/29/this-is-why-the-west-should-pay-attention-to-the-drama-in- macedonia/?utm_term=.2a3a45c28560. 3 Macedonia, The Government of the Republic of Macedonia, “3-6-9 Plan.” 3-6-9 Plan, The Government of the Republic of Macedonia Secretariat for European Affairs, 4 July 2017. www.sep.gov.mk/data/file/Dokumenti/Plan%203-6-9%20ENG.pdf.

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implemented in the areas of elections, parliamentary procedures, cooperation with the President, civil society, the Ohrid Framework, public administration, the judicial system, intelligence and security services, corruption, migration, and media.

The IREX Media Sustainability Index found Macedonia’s media landscape to have an “unsustainable, mixed system” with some forces opposing free media and other positive developments in professional journalism, and commitments to free press as too recent to assess.4 The ‘3-6-9 Plan’ highlights a number of critical reforms to support a more professional and independent media. The proposed reforms include ending government financing for commercial advertisements, professionalizing the public broadcasting service, drafting amendments for key media laws, adopting a code of ethics for media reporting, and establishing regular consultations between the media, government, and civil society.5 While the new government has identified a robust plan, it faces institutional capacity challenges that may limit its ability to deliver on reforms.

Despite these limitations, the new change in government has improved citizens’ perceptions of the country’s outlook following the lengthy political crisis. Public opinion polling conducted by the International Republican Institute (IRI) in August 2017 revealed a dramatic uptick in optimism about the country’s trajectory following the change in government.6 Forty-four percent of citizens reported the country is “peaceful and stable” compared to just five percent in March 2017. The number of respondents who felt Macedonia was headed in the wrong direction dropped to its lowest level in three years. Ahead of local elections, 74 percent of citizens believed conditions were in place for them to be free and fair, compared to just 57 percent in March.

On October 15, the country held the first round of local elections to select mayors and municipal council members. Of 81 municipalities, 46 elected a mayor in the first round with the remaining being elected in second round runoffs on October 29. In its Statement of Preliminary Findings and Conclusions, the OSCE/ODIHR determined media coverage of the contestants was balanced, though campaign advertising was overall negative. They found that “only eight debates were hosted by the public channel, MTV1, and the private channel, Kanal 5, between SDSM and VMRO-DPMNE candidates; no debates took place featuring ethnic Albanian and independent candidates.” 7 While local elections generally prompted media outlets to focus on local issues, access to high-quality, well-researched information remains a systemic challenge for citizens in rural communities and those without access to the internet as they can access only a limited number of television stations.

Voter turnout was 59.51 percent in the first round and 51.92 in the second round.8 SDSM-supported candidates won in 57 municipalities up from four in the 2013, DUI in ten down from 14, and VMRO- DPMNE in five down from 56. Newly-formed Albanian parties, the Besa Movement and the Alliance for Albanians (AA), won in one and three municipalities respectively. VMRO-DPMNE, AA and Besa all

4 Georgievski, Dejan. “Macedonia Media Sustainability Index 2017.” IREX, IREX, www.irex.org/sites/default/files/pdf/media-sustainability-index- europe-eurasia-2017-macedonia.pdf. 5 Macedonia, The Government of the Republic of Macedonia, “3-6-9 Plan.” 3-6-9 Plan, The Government of the Republic of Macedonia Secretariat for European Affairs, 4 July 2017. www.sep.gov.mk/data/file/Dokumenti/Plan%203-6-9%20ENG.pdf. 6 “Public Opinion in Macedonia August 4-21 2017.” International Republican Institute, International Republican Institute, 18 Sept. 2017, www.iri.org/sites/default/files/2017-9-18_macedonia_poll.pdf. 7 Election Observation Mission. “The former Yugoslav Republic of Macedonia – Municipal Elections, Second Round, 29 October 2017 Statement of Preliminary Findings and Conclusions.” OSCE/ODIHR 30 Oct 2017. http://www.osce.org/odihr/elections/fyrom/353276?download=true 8 “Local Elections 2017.” State Election commission – Republic of Macedonia. http://www.sec.mk/en/

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declared that they would not recognize the election results and called for snap parliamentary elections.9 Former Prime Minister and leader of VMRO-DPMNE, Nikola Gruevski cited “election violence, raping of democracy...threats, pressure, [and] massive bribes” in his party’s decision.10

The OSCE/ODIHR positively assessed voting at 97 percent of polling stations observed.11 Their preliminary monitoring report found that, “while shortcomings remain, second round local elections [were] competitive and held in [an] environment respecting fundamental freedoms.”12

PROGRAM STRATEGY The Macedonia Support Initiative works closely with Macedonian civil society organizations, media groups and government institutions in implementing key components of the reform agenda. Through this goal, the program seeks to directly contribute to U.S. foreign policy interests to strengthen Macedonia’s democratic reform process and resume the country’s trajectory to EU and NATO membership. MSI utilizes an iterative model to continually refine its strategic approach within an evolving political context through an on-going learning process. With small awards, both grants and contracts, MSI supports local partners to implement short-term projects to contribute to MSI’s programmatic objectives.

Following the political transition, a window of opportunity emerged to renew support for urgent reform priorities outlined in the Przino Agreement, Priebe Report, and ‘3-6-9 Plan.’ The new government requested MSI’s support to build the capacity of key government institutions to more effectively implement reforms. In line with this new window of opportunity, MSI refined its strategy to include three programmatic objectives:

• Increase media outlets’ willingness to produce diverse, balanced, and/or fact-based content. The media landscape lacks professional, balanced content to inform the citizens about critical issues. MSI supports a broad selection of media content and products that increase exposure to a diversity of perspectives and expand access to a diversified, robust media landscape.

• Activities that foster civic engagement at the regional and local levels. To fight a prevailing sense of apathy among citizens, and provide opportunities for citizens to address concerns in their communities, MSI supports key civic actors to organize activities to address key issues and expand local level civic action.

• Support urgent reform priorities to strengthen democratic institutions. Government ministries and offices in the new government lack basic infrastructure and technically capable staff.

9 Pajaziti, Naser. “SDSM announces its victory in the local government elections, VMRO-DPMNE doesn’t recognize the results.” IBNA, 30 Oct 2017, http://www.balkaneu.com/sdsm-announces-its-victory-in-the-local-government-elections-vmro-dpmne-doesnt-recognize-the-results/ 10 Casule, Kole. “Macedonia’s opposition rejects results of municipal vote.” Reuters, 29 Oct 2017. https://uk.reuters.com/article/uk-macedonia- election/macedonias-opposition-rejects-results-of-municipal-vote-idUKKBN1CY0UX 11 Election Observation Mission. OSCE/ODIHR 12 "While Shortcomings Remain, Second round Local Elections Competitive and Held in Environment Respecting Fundamental Freedoms, OSCE/ODIHR Election Observers Say in Skopje." OSCE. OSCE/ODIHR, 30 Oct. 2017. Web. 31 Oct. 2017.

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MSI supports building the capacity of key institutions by providing technical assistance and equipment to implement urgent reform priorities.

Figure 1. Distribution across objectives of MSI activities cleared during the reporting period

Civic Actions Diversified Media Urgent Reforms Unassigned

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DEBATE PROGRAM REPRESENTS DIVERSE POLITICAL PERSPECTIVES For the better part of ten years, Macedonia has lacked debate programs that represent opposing viewpoints on critical issues. There has been a notable lack of public discussions and dialogue between prominent politicians across the political spectrum. Recently there has been a resurgence of debate programs on television, social media, and radio; however, many of the programs are perceived to be partisan sources that do not represent a diversity of perspectives.

In April 2016, MSI partnered with Kanal 77 to produce the ground-breaking “Night Express” program featuring guests from across the political divide. Building off of the success of the format and recognizing the opportunity to support debate programming on a primetime station, MSI partnered with Kanal 5, the second most-watched TV network, to produce the debate series “Only the Truth.” The new program leveraged the Kanal 5 brand and audience to feature guests with diverse political perspectives engaging in constructive dialogue about critical issues. The show began airing in May 2017, and quickly attracted a significant audience made up of viewers from all sides of the political spectrum.

By representing diverse perspectives, and facilitating substantive debates between guests, “Only the Truth” became recognized as a balanced, non-partisan media voice amidst a highly polarized environment. The show successfully attracted participation from representatives of Macedonia’s two largest political parties. On June 21, high-ranking officials Muhamed Zekiri, Vice President of SDSM, and Vlatko Gjorchev, MP of VMRO-DPMNE appeared on the program. The episode marked a shift in policy from both political parties to agree to appear together on a debate program. The participants discussed Macedonia’s path to integration in the EU and NATO. While the discussion was tense at times, the conversation proved to be more productive and professional than previous debate appearances by both parties.

Focus group research found that the show’s representation of different viewpoints provoked thoughtful discussions between citizens about issues. Participants expressed their desire for civil, factual debate between diverse guests. This research was incorporated into the design of the show’s second season to ensure improvement in production quality and optimize performance.

In its second season, the show continues to feature guests representing diverse political perspectives to foster constructive debate and inform Macedonian citizens about critical issues. The show is also utilizing social media to invite the audience to participate in the live debates. By incorporating this new element,

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the show encourages citizens to be more active participants in public debate, as a key cornerstone of a healthy democratic society.

CREATIVE CIVIC INITIATIVE ELICITS CHANGE Citizens in Macedonia lack opportunities to constructively and publicly discuss issues of importance or take active steps to address them, either by demanding accountability or directly acting towards addressing social challenges.

To encourage active citizenry, MSI partnered with the Center for Balkan Cooperation (LOJA) in November 2016 to train and mentor local actors to coordinate non-partisan initiatives aimed at exposing citizens to, and generating public discourse about, a range of social and political issues. Over two months, LOJA and the group of trained “Transformers” carried out 13 actions that utilized arts for social change.

On several occasions, the engagement of the community in these actions prompted authorities to take direct action to address the issues raised. In Stip, the Transformers organized an art installation to prompt discussion on local government’s responsibility to care for public spaces, using chronically out- of-order drinking fountains as an example of where service delivery was failing. Citing an influx of phone calls from citizens demanding accountability, the Public Utility Office fixed the fountains. This response was documented by a number of social media posts from across the political spectrum. In Tetovo, the Transformers held a mimed basketball match to call attention of the lack of functional sports equipment and fields in the city. While negotiating with a local, public school to use their non-functional courts for the performance, the school learned of the aim and immediately addressed the problem, installing hoops in their playground.

Through these non-partisan actions, citizens were given an opportunity to constructively and publicly discuss issues important to their communities and actively address them and demand accountability from their local institutions.

GRANTS SUMMARY Between April and October 2017, MSI cleared 20 activities. The median activity size during this period was approximately $96,166 and the largest was $246,269. In September, MSI cleared the highest number of activities since the program’s inception. The program cleared the fewest activities and obligated the least funds in June. In the following month, it disbursed the most funds since inception.

CONCLUSION Between May and October 2017, the Macedonia Support Initiative and its partners capitalized on a widening political environment and an optimistic citizenry to implement activities that have utilized creative media formats to inform the public and feature diverse perspectives and provide opportunities for meaningful civic engagement and advocacy.

As of April 2017, MSI has 24 ongoing activities that aim to engage citizens on issues of importance and support public institutions to address key reform priorities. Over the next six months and as the program enters its final year, MSI will continue to work with and build the resiliency of a diverse set of local actors and institutions to increase access to reliable information, promote civic engagement, and support democratic reforms.

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U.S. Agency for International Development /Office of Transition Initiatives www.usaid.gov

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