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Investment and Export Promotion Context As part of the former Yugoslavia, Macedonia, with its metal processing and textile and clothing industries, was relatively highly industrialised. After independence, it soon became clear that the industrial sector was not competitive. This contributed to low growth and high unemployment. However, by 2007, growth reached 5.1 percent, and foreign direct investment amounted to EUR 239 million, offering hope of a turn-around. Unemployment remains high at more than a third of the workforce.
Processing industries are making a comeback and now account for 16 percent of gross domestic product and a quarter of the country’s industrial jobs. But these jobs are endangered by low added value and poor productivity, and they depend completely on workers’ acceptance of low wages. Foreign investment is strengthening the automotive component industry, which, however, has yet to find its way into regional and international markets. A small IT/software sector offers jobs that have potential, but it too needs openings to regional and international markets. Objective The competitiveness of Macedonian enterprises in the automotive component, IT/software, and textile and clothing branches improves. Better competitiveness and increasing investment protect employment and create new jobs. Incomes rise to a European level. Approach Economic partners frequently begin by establishing trade relations and only later decide to become involved in investment. The project approach therefore links investment and export promotion. A focus of its industry-wide support is the recruitment of investors from Germany and other European countries. At the same time, it prepares its partners, the Ministry of Economy, the Macedonian investment agency, and municipalities, for the conception and implementation of location marketing in the context of international competition for investments. Export support is offered to industries that have job creation potential, that are attractive to investors, and that are central to Macedonian development strategies, namely, the clothing industry, the automotive components industry and the IT/software industry. An important starting point for investment and export promotion is location marketing. This is supplemented by measures to increase enterprises’ competitive capabilities. Public relations, and working with local associations and advisors complement these activities. In addition, participation in trade fairs and similar measures are planned in order to build a network of contacts. The project supports the Macedonian Ministry of Economy in transforming its investment and export promotion policies into concrete instruments, and in cooperating with other state and private institutions. The project team includes a Macedonian long-term specialist to coordinate measures, as well as national and international experts to advise on particular aspects. Results achieved so far Macedonian municipalities and the Macedonian investment agency took part in the EXPO REAL International Commercial Property Exposition in October 2008 in Munich, as well as the AUTOMECHANIKA International Trade Fair for the Automotive Industry, in Frankfurt am Main |
