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Government Policy for Reducing Poverty and Unemployment

Government Policy for Reducing Poverty and Unemployment. Nikica Mojsoska-Blazevski Ministry of Finance Supported by Sasho Kosev Faculty of Economics. Content of the Presentation. PRSP for Macedonia Labor Market Review Government Policy for Tackling Unemployment - NAPE. PRSP for Macedonia.

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Government Policy for Reducing Poverty and Unemployment

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  1. Government Policy for Reducing Poverty and Unemployment Nikica Mojsoska-Blazevski Ministry of Finance Supported by Sasho Kosev Faculty of Economics

  2. Content of the Presentation • PRSP for Macedonia • Labor Market Review • Government Policy for Tackling Unemployment - NAPE

  3. PRSP for Macedonia • The national poverty line in 2002 was 30.2%, an increase from 23.3% in 1999 • Main areas within the 2002 PRSP were: - Macroeconomic framework; - Poverty profiles and indicators; - Urban, Rural Poverty; - Labor market and unemployment; - Access to services and decentralization; - Civil participation and stakeholder consultation.

  4. PRSP for Macedonia (cont.) • Caveats: • Lack of concrete measures and policy recommendations • Unclear responsibility for the implementation • No financial resources assigned Implementation failure A need for a new or revised strategy

  5. Labor Market Review • Relatively low participation rate – 61.3% in 2003 (EU15- 70%, NMS- 65.5%) • Employment rate - 38.5% (EU15- 64.3%, NMS- 55.9%) - female employment rate of 31.3% • Unemployment rate in 2004 was 37.6% - youth unemployment – 65.7% - LTU around 85%

  6. Government Policy for Tackling Unemployment - NAPE • Primary responsibility for employment policy rests with the Ministry of Labour and Social Policy (MoLSP) • NAPE 2004-2005 is a first step towards having a coherent government employment policy coordinated with other areas of government activity • Prepared with the EU assistance through EAR • It takes explicit account of the Government’s broader economic policy objectives

  7. Government policy for tackling unemployment – NAPE (cont.) • Coordination between ministries: - A range of measures to be undertaken by the Ministry of Education, including plans for the development of regional training centres to support skills development - Actions by the Ministry of Economy and its constituent agencies in the fields of support for entrepreneurship and promotion of FDI - Possible fiscal measures under the responsibility of the Ministry of Finance

  8. Government policy for tackling unemployment – NAPE (cont.) • Institutional arrangements: - The working group that prepared the NAPE will remain in existence to monitor its implementation - A Joint Ministerial Committee has also been established made up of Deputy Ministers of the relevant ministries as well as from social partner representatives - Co-ordinated by the MoLSP, the committee’s purpose will be “to supply the necessary political guidance and to exercise overall supervision of the implementation of the plan”

  9. Future Challenges • WB is involved in poverty assessment process in Macedonia • Lack of public (and government) awareness for the need for a new PRSP • A new policy-centered approach is also required with clear measures both on short and medium run, division of responsibilities, deadlines and allocation of funds for each activity

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