VOLUNTARY NATIONAL REVIEW North Macedonia July 2020 North Macedonia ACKNOWLEDGMENTS: Coordination of the process of the National Voluntary Review and contribution to the Review was provided by Ana Jovanovska - Head of unit for Sustainable Development Unit from the Cabinet of Deputy President of the Government in Charge for Economic Affairs and Coordination of Economic Departments. Coordination of data collection and contribution to the Statistical Annex was provided by Snezana Sipovikj - Head of Unit for structural business statistics, business demography and FATS statistics, from the State Statistical Office. Acknowledgments for the contribution to the review: Office of the Prime minister Refet Hajdari The National Academy of Dushko Uzunoski Elena Ivanovska Science and arts Lura Pollozhani Ministry of Economy Chamber of commerce of Ivanna Hadjievska Macedonia Dane Taleski Marina Arsova Ilija Zupanovski Biljana Stojanovska Union of Chambers of Jasmina Majstorovska Commerce Cabinet of the Deputy Bekim Hadziu President in charge for Sofket Hazari MASIT economic affairs Blerim Zlarku Eva Bakalova Ministry of Health The process was supported by: Elena Trpeska Sandra Andovska Biljana Celevska Ksenija Nikolova Elena Kosevska Daniel Josifovski Mihajlo Kostovski Dane Josifovski Ministy of Education Viktor Andonov Filip Iliev Nadica Kostoska Bojan Atanasovski Ministry of Transport and General Secretariat of the Connections Government – Unit for Jasminka Kirkova collaboration with the Civil Society Organizations Ministry of Agriculture, Forestry and Water Economy Suzana Nikodijevic Nikica Bachovski Secretariat for European Affairs Ministry of Local Self- government Evgenija Kirkovski Serafimovska Ljubica Gerasimova Monika Zajkova Cvetanka Kuzmanovska Aneta Stojanovska Hristina Koneska Berovska Zuica Zmejkova Ministry of Justice Dragan Tilev Tatjana Vasic Ministry of Labour and Social Irena Shekutkoska Janakieska Policy Ministry of Finance Sanela Skrijelj Magdalena Simonovska Gjulten Mustafova Vesna Cvetanova Mabera Kamberi Sofija Spasovska Ministry of Culture Darko Docinski Biljana Prentoska Dushan Tomisik Ministry of Information Ministry of Environment and Society and Administration Physical Planning Elena Manceva Ana Petrovska Edita Zekjirovikj Fund for Innovation and Teodora Obradovic- technological development Grncarovska Lindita DIka Tanja Ilijevska Ljupka Dimoska-Zajkov City of Skopje Ana Mazneva Vesna Indova Aleksandar Bogoevski Ministry of Foreign Affairs Svetlana Geleva Sanja Zoografska-Krstevska Tanja Dinevska Burim Bilali Toni Pavlovski Kire Delov Table of Contents Acknowledgments 1 Forward 6 Key Messages 7 Introduction 9 Process for the Development of the Voluntary National Review 10 Policy and Enabling Environment 12 Rapid Integrated Assesment 16 SDG 1 – No Poverty 20 SDG 2 – Zero Hunger 24 SDG 3 – Good Health and Well-Being 27 SDG 4 – Quality Education 31 SDG 5 – Gender Equality 36 SDG 6 – Clean Water and Sanitation 41 SDG 7 – Affordable and Clean Energy 45 SDG 8 – Decent Work and Economic Growth 49 SDG 9 – Industry, Innovation and Infrastructure 56 SDG 10 – Reduced Inequality 61 SDG 11 – Sustainable Cities and Communities 65 SDG 12 – Responsible Consumption and Production 70 SDG 13 – Climate Action 74 SDG 15 – Life on Land 78 SDG 16 – Peace, Justice and Strong Institutions 82 SDG 17 – Partnerships for the Goals 89 Means of Implementation 93 Youth on the Road to Agenda 2030 and the SDGs 100 Voices of Civil Society Organizations 105 Voices from the Business Sector 112 North Macedonia’s Response to the COVID-19 Crisis 117 Looking Forward 119 Statsitical Annex 120 Multiple Indicator Cluster Survey 2018/2019 140 Figures Figure 1: People, planet, partnership, peace and prosperity 13 Figure 2: Overall alignment with national SDGs and Agenda 2030 profile in North Macedonia 16 Figure 3: Alignment of national policies and international obligations (combined) with Agenda 2030 17 Figure 4: Alignment with Agenda 2030 and SDGs of over 800 projects implemented by 13 key development donors in North Macedonia 18 Figure 5: North Macedonia: Shares of potential SDG finance from all sources (annual averages, 2008-2017) 18 Figure 6: North Macedonia: Potential per-capita SDG finance (2008-2030) 18 Figure 7: ODA by 13 development partners (total for 2016-2020) 19 Figure 8: Percent of population living below the national poverty line (percent) 20 Figure 9: Percent of employed persons at risk of poverty (18 years of age and older) 22 Figure 10: Area under organic farming (percent of utilised agricultural area) 24 Figure 11: Mortality rate for non-communicable deceases per 100,000 individuals 28 Figure 12: Participation rate in organized learning one year before official primary entry age (percent) 31 Figure 13: Employment rate of recent graduates (percent) 32 Figure 14: Gender employment gap for ages 20 to 64 (percent) 37 Figure 15: Inactive population due to caring responsibilities (percent of inactive population aged 20 to 64) 39 Figure 16: River basins and river basin districts 41 Figure 17: River basin districts by percent of total basin area 41 Figure 18: Waste water treatment plants by population equivalent 42 Figure 19: Renewable energy share in total final energy consumption (percent) 45 Figure 20: Energy dependence (percent of imports in total energy consumption) 47 Figure 21: GDP per capita in Euros (at current exchange rate) 49 Figure 22: Unemployment rate for those ages 15 to 74 (percent) 49 Figure 23: Structure of employment by sector (percent) 50 Figure 24: Structure of employment by sector and gender (percent) 50 Figure 25: Proportion of informal employment in total employment (percent) 51 Figure 26: Percent of youth not in education, employment or training (ages 15 to 29) 52 Figure 27: Manufacturing value added as a proportion of GDP (percent) 56 Figure 28: Research and development expenditure as a proportion of GDP (percent) 56 Figure 29: Fund for innovation and technology development: Number of beneficiaries per support instrument 60 Voluntary National Review | 2 Figure 30: Proportion of people living below 50 per cent of median income (percent) 62 Figure 31: Percent of population living in a dwelling with a leaking roof, damp walls, floors or foundation or rot in window frames of floor (by median income) 65 Figure 32: Annual mean levels of fine particulate matter in cities (µg/m3) 65 Figure 33: Hazardous waste generated per capita and proportion of hazardous waste treated (KG per capita) 71 Figure 34: GHG emissions in energy sector, by category (in Gg CO2-eq) 74 Figure 35: GHG emissions in energy sector, by gas (in Gg of CO2-eq) 75 Figure 36: Forest area as a proportion of total land area (percent) 79 Figure 37: Number of victims of intentional homicide per 100,000 individuals 83 Figure 38: Corruption perceptions index (score between 0-100) 84 Figure 39: Foreign direct investment (in Million Euros) 89 Figure 40: Percentage share of financing of the CSO sector from the state budget 90 Figure 41: Estimated Likelihood of Achieving SDGs by 2030 (based on data for 2018) 93 Figure 42: Policy Interventions in Reform Package #1 (Governance) 94 Figure 43: Policy Interventions in Reform Package #2 (Economic Governance) 95 Figure 44: Policy Interventions in Reform Package #3 (Human Capital) 95 Figure 45: Policy Interventions in Reform Package #4 (Green Energy) 96 Figure 46: Impact on Key Outcome Variables until 2035 97 Figure 47: Impact on Key Outcome Variables until 2050 97 Figure 48: The impact of different reform packages on GDP per capita (2019-2035) 98 Figure 49: Income Convergence with EU28 as a Moving Target (In thousand U.S. dollars, 2019-2050) 98 Figure 50: Income Convergence with EU28 and Western Balkans in 2035 99 Figure 51: The impact of different reform packages on the progress of North Macedonia in achieving the sustainable development goals (cumulative improvement in percent, 2019-2035) 99 Boxes Box 1: Alignment of Key Strategic Documents 14 Box 2: The Social Financial Assistance and Guaranteed Minimum Assistance Programs 21 Box 3: Success Story: A Challenge for Innovative Solutions to Provide #MealsforAll 25 Box 4: Success Story - Sustainable Development School by CSO “Eco Logic” 34 Box 5: Success Story – The Kocani Wastewater Treatment Plant 43 Box 6: Success Story: “Face to face” Initiative 54 Box 7: Success Story - Generation Unlimited 59 Box 8: Success Story – Skopje Lab 68 Box 9: Success Story: Composting of Biodegradable Waste 72 Box 10: Success Story – MY VAT 92 Tables Table 1: Vaccination Rates (percent) 30 Table 2: Summary of feedback provided by civil society organizations in North Macedonia 106 Voluntary National Review | 3 Abbreviations ACMIS Court Case Management System ADKOM Association of Providers of Public Services CDM Clean Development Mechanism CEFTA Central European Free Trade Agreement CFSP Common Foreign and Security Policy CMS Case Management System CPF Country Partnership Framework CSO Civil Society Organizations DES Directorate for Execution of Sanctions EA Energy Agency EADRCC Euro-Atlantic Disaster Response Coordination Centre EBRD European Bank for Development and Reconstruction EC European Commission ECOSOC Socio-Economic Council EFTA European Free Trade Association EPR Environmental Performance Review ERC Energy Regulatory Commission ERI SEE Education Reform Initiative of South Eastern Europe ESA Employment Service Agency ESRP Employment and Social Reform Programme EU European Union EUROJUST Eurojust Cooperation Agreement FAO Food and Agriculture Organization of United Nations FDI Foreign
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