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Republic of Macedonia

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SPOTLIGHT

In this section:
Macedonia Calms Ethnic Rift with U.S. Aid
New Packages Make a Difference for Macedonian Firm
Bosnian Refugees Helped to Expand Wrought Iron Exports


Macedonia Calms Ethnic Rift with U.S. Aid

Photo of Macedonian woman in traditional dress

A girl dances in traditional Macedonian dress at the opening of the visitor center to Stobi, the second largest ancient archaeological site in the country. USAID funded the building of the center.


Kristina Stefanova, USAID

Macedonia, one of five republics that became independent when Yugoslavia disintegrated after 1991, is successfully dealing with conflict between ethnic Albanian and ethnic Macedonian groups, assisted by the USAID mission in Skopje.

The conflict erupted into violence in early 2001 and the mission’s U.S. staff was evacuated for six months. When peace was restored, the staff returned and the mission resumed activities full steam.

“We have moved from being concerned about security to focusing on things like decentralization, court reform, and economic development,” said Mission Director Dick Goldman.

The 12-year-old mission’s budget last year was $35 million. The largest programs are in economic growth and in democracy and governance. One third of the budget goes to education, local economic development, and training.

A program Goldman takes special pride in is outfitting all of Macedonia’s primary and secondary schools with computers and broadband internet access.

“Connectivity gives them the tools they need to participate in the global economy,” he said.

The mission has a staff of 44.


New Packages Make a Difference for Macedonian Firm

Photo of worker at a Macedonian dairy

Worker pours milk at a Macedonian dairy.


Lynn Abbott, USAID

KUMANOVO, Macedonia—In mid-2003, the Buchen Kozyak dairy sold most of its cheese to restaurants and sold its milk and yogurt in plain, unmarked packaging. Now the dairy makes several types of new cheeses, and its products are easily recognized by their colorful new packaging. The dairy has new equipment, and sales have risen by 40 percent.

None of it would have happened this fast if the dairy had not joined Macedonia’s lamb and cheese cluster, said Predrag Cvetkovic, marketing manager of Buchen Kozyak. “We have so many new plans,” he said. “We want to be the leader in Macedonia five years from now.”

The cluster is one of five industry groups receiving help from the Macedonia Competitiveness Activity (MCA), an $11.5 million USAID project that started October 2002 and runs for four years. The other clusters focus on tourism, wine, apparel, and information technology.

“Macedonia, like so many other developing countries, competes on the basis of low wages and cheap products,” said Suzi Kanyr-Hagen, chief of party of the MCA. “What we are aiming for is that people identify high-value products and services that the world wants and that Macedonia can produce. Then we can see the creation of better jobs here, with higher wages.”

Clusters were chosen based on their leadership initiatives and their industry’s potential economic impact. Each cluster has about 60 members and had to identify 10 expansion and competitiveness goals, such as promotion and branding. Members had access to temporary help of volunteer consultants provided by the MCA.

Buchen Kozyak got a Boston dairy marketing manager for two months, who taught the company about shrink-wrapping and better packaging its cheeses.

The dairy joined the lamb and cheese cluster in October 2003. The following summer, it participated in an MCA-organized wine and cheese festival in Ohrid, a popular resort town.

Some 1,600 bottles of wine were sold during the festival. And dairies like Buchen Kozyak sold as much as two tons of cheese; many ran out of products.

“We are steadily heading in the right direction,” said Stoika Stojkovska, the owner of Buchen Kozyak, referring to the changes she’s made to her business based on the recommendations of the cluster advisor.

Before the lamb and cheese cluster started, Macedonia did not export cheese. Today, about 38 tons of feta and various types of yellow cheese, including kashkaval, are being exported to Albania and the United States.

Other industries that have formed clusters are also making progress.

Last year the tourism cluster, with the help of USAID, hosted a dozen foreign tour operators for a five-day trip to cultural and historic sites throughout Macedonia. As a result, a British tour company is including Macedonia in its 2005 catalogue, and a Colorado-based biking tour company expressed an interest in bringing a group in spring.

The biggest challenge to business development is overcoming a distrust in institutions that permeates Macedonian attitudes, said Kanyr-Hagen. But as businesses grow and learn from each other, that attitude will change, she added.


Bosnian Refugees Helped to Expand Wrought Iron Exports

Photo of a Macedonian employee welding at an ironwork firm

A Macedonian employee welds iron work at a firm supported by a U.S.-funded artisans group.


Kristina Stefanova, USAID

VELES, Macedonia—A couple who fled here from Bosnia’s civil wars found U.S. help in marketing their wrought iron fences, doors, and carvings. Anka and Milan Perisic migrated to this central Macedonian town a decade ago and built a house with a large wrought iron workshop downstairs. Milan assembled some machinery and hired four workers to help produce the artisanry he designed.

“With this work we can have success,” said his wife Anka, who is Croatian. “We work very hard all day, almost 24 hours.”

Milan, a Serb, was jailed when the war in Bosnia started. When he was released, the couple fled. Now in the middle of the slow-paced naturalization process, it’s a challenge for the Perisics to expand their company, Hammer Inc.

“When we want to export, we can’t go looking for potential clients,” Anka said. “We have to use representatives.”

Hammer products already sell in Croatia and Germany. But the couple, hoping to expand their business, recently joined the USAID-supported Macedonian Artisans Developing Enterprise (MADE), a program carried out by Aid to Artisans (ATA).

Program participants are assigned a consultant—be it a marketing manager or a designer from Europe or the United States—who examines the way an artisan works and creates some designs to be produced. Those products then go to ATA’s headquarters in Hartford, Conn., from where they are shipped to artisan fairs around the world several times a year.

“We also do trainings, teaching [artisans] how to register their business if they haven’t, about pricing and costing, and how to do local fairs,” said Marija Dimitrijevic from ATA, which works with some 250 artisans.

MADE, a three-year program in which USAID has invested $2.7 million, runs four retail stores throughout Macedonia where artisans can sell their products. It also organizes fairs and festivals.

Last year, artisans through ATA developed a logo for the United Nations Capital Development Fund’s campaign to promote the International Year of Microcredit, 2005. The spiral logo was reproduced on cast sterling and gold pins, scarves, copper bookmarks, and glass coasters.

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Tue, 01 Feb 2005 15:37:43 -0500
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