Multi-dimensional Review of the Western Balkans
From Analysis to Action
The Western Balkans region has come a long way over the last two decades in achieving economic and social progress. Its people are the region’s greatest asset. Yet faced with a lack of opportunities many, particularly the young, decide to emigrate. To make the most of its future the region must invest in its attractiveness as a place to live, work and invest in.
This report comes as a follow-up to the earlier publication Multi-dimensional Review of the Western Balkans: Assessing Opportunities and Constraints. It builds on an extensive peer-learning process that brought together experts from across the region and beyond. The report provides suggestions and recommendations for three strategic priorities that can help create opportunities and boost the quality of life. First, better education and more competencies are the basis for raising productivity, creating jobs, encouraging civic participation and making the region an attractive destination. Second, social cohesion is the bedrock of resilient societies and requires stronger labour market policies and effective social protection that can cushion people’s hardship and provide them with new opportunities. Third, cleaner air and more sustainable energy are indispensable for boosting the region’s quality of life and economic opportunities.
Fostering social cohesion in North Macedonia
Over the past decades, North Macedonia has achieved great progress in building a socially cohesive society. With income per capita almost doubling in real terms between 1995 and 2020, extreme poverty was reduced and living standards increased. In recent years, North Macedonia has undertaken important social protection reforms. To sustain this progress, this chapter provides key policy priorities to foster social cohesion through labour market and social protection policies. As creating more jobs is a top priority, growth-enhancing policies need to be complemented by solid active labour market policies that boost participation of many unemployed and vulnerable citizens. This requires solid capacities in the Employment Service Agency (ESA) and broad-based collaboration among the ESA, the private sector, education institutions, social care services and non-governmental organisations. While the social protection system in North Macedonia has benefited from various recent reforms, including the introduction of guaranteed minimum assistance in 2019, existing gaps in adequacy and coverage still need to be addressed. A shift towards community-integrated social services, provided locally, can create pathways by which people in need integrate into society and the labour market.
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