Private/Public Forum Created To Support Macedonian Entrepreneurs
A Public/Private/Civil Society Partnership of the Republic of Macedonia
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| Members of the Council |
The NECC was created in 2002 to provide a forum for constructive dialogue between the public and private sectors as a response to the obvious need to provide a place where serious issues facing business and the economy could be identified and discussed and appropriate actions could be recommended and/or implemented.
The National Competitiveness Council model has been tested and proved in several countries around the world. The most prominent and successful example is in Ireland where, due to close cooperation between the private and public sectors, Ireland has achieved real GDP growth of 45 percent (1997 – 2002), more than double the growth rate of the second ranking EU economy (Finland). Other countries that have established successful Competitiveness Councils are US, Switzerland and Singapore.
Macedonia ’s challenge
Macedonia is at a critical juncture. Multiple economic challenges face Macedonian public and private sector leaders in the next few years in improving the national infrastructure, preparing for European Union integration, and building a vital national economy. There is a critical need for all Macedonians, particularly those in public and private sector leadership positions, to engage in constructive and meaningful dialogue and to take focused, effective, collaborative, and timely actions that produce sustainable results.
There is little precedent in Macedonia for this kind of constructive dialogue between public and private sectors and, until the formation of the National Entrepreneurship and Competitiveness Council, no forum existed where effective dialogue took place. The private sector, a relatively recent development in Macedonia , is still struggling to move away from paternalism and to find its voice. The Macedonian government, for its part, has continually been criticized for lacking an economic strategy and is searching to better define its role and take the necessary steps for sustainable economic growth. This already complex situation is compounded by an historical lack of trust between and among virtually all sectors of Macedonian society.
Mission and Purpose
The main purpose of the NECC is to transfer primary leadership of the nation’s entrepreneurship and competitiveness agenda from the public to the private sector. The NECC is a forum for leaders from the public, private and civil sectors to jointly define national priorities, take strategic action and monitor results.
Key events and results
- June 2003 – Inaugural meeting of the NECC
- July 2003 – NECC defines priorities for action
- Increasing FDI
- Increasing exports of competitive and organized industry groups
- Improving human capital – focus on management capabilities
- August 2003 –Radisson negotiations begin for developing 2 hotels in Macedonia
- October 2003 – Council hosts first National Summit on Competitiveness and Street Fair
- November 2003 – Three government ministers, including the public sector co-chair, changed due to a government reshuffle
- December 2003 – Cheese manufacturer signs first contract for exporting cheese to the US . Since then, companies have signed additional contracts for the US , Europe and the region
- February 2004 – Council working group launches new specialized training for managers
- Request for support for the removal of tariffs and duties on imported raw materials used in apparel production. Ministers of Economy and Finance begin negotiations (still ongoing)
- April 2004 – Council members request country credit rating to support increased FDI flows
- April 2004 - 13 tour operators visit Macedonia on a familiarization trip
- Six tour operators confirm interest for 2004/5. Preparation in progress for follow up trip in spring 2005 to include 8 journalists and six tour operators
- May 2004 – Radisson signs first contract for developing a hotel in Ohrid – to be opened in 2006
- May 2004 – NECC working group meets with tourism representatives
- Minister of Economy commits $30,000 for promotion
- Action agreed for low cost carriers and improving visa regime
- May/July 2004 – Swiss packaging manufacturer considers MK
- July 2004 – Annual retreat – review of year to date and planning for the next 12 months
- August 2004 – Country rating announced BB+
Next Steps
Macedonia Competitiveness Activity (MCA) currently provides professional and administrative support for the NECC. (MCA is a USAID-administered project of duration 2002 – 2006, with a primary objective to increase the competitiveness of Macedonian enterprises.) The intent is to transition NECC support to an independent, separately funded, permanent Advisory Group in the near term.
The strategy for the sustainability of the Advisory Group is heavily dependent on the sustainability of the NECC. Elements of the strategy to insure the continued increasing effectiveness of the NECC and its staff group include:
- Create a charter for both the NECC and the Advisory Group that documents the structure, stakeholders, mission, operating agreements, goals and objectives, and deliverables of the organization.
- Develop and implement a process that mitigates the effect on the NECC of changes in the public sector membership.
- Provide leadership on economic issues that is truly and visibly for the benefit of all of Macedonia and not on narrow special interests.
- Seek, develop, and recruit the most respected and competent members for the NECC from all economic sectors to insure that fresh, diverse, and important economic interests continue to be addressed.
- Insure that unimpeachable standards of ethical and transparent operation are upheld and that a strict process of accountability is in place and observed.
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