Chapter 1
Social policy in the Republic of North Macedonia has been characterized by constant changes that occurred as a result of shifting social and demographic structure, low economic growth and capacity, a permanently high unemployment rate, and increased demand for social protection services. In order to tackle these challenges, numerous legislation revisions have been undertaken, especially in the financing and administering of social services. The aim of this chapter is to give an overview and assessment of the social protection system in the Republic of North Macedonia (in particular its stakeholders) and to offer recommendations for improvement. The study is based on an analysis of secondary data such as research reports, policy documents, public perceptions on social issues, the experiences and perceptions of the beneficiaries of social assistance, and studies conducted by civil associations that work in the field of social work. The study also reviews strategic documents related to social policy such as the National Strategy for the Reduction of Poverty and Social Exclusion in the Republic of Macedonia 2010–2020, the Program for Employment and Social Policy 2020, and the Operational Plan for active employment programs and services. The analysis reveals that social policy in North Macedonia is oriented towards favoring services instead of cash transfers, increased consumer targeting rather than universal access, reduced state service provision at the expense of increased private initiatives, strengthening local government involvement in social protection, conditional cash transfers and reducing the institutional capacity of the state.
Chapter 2
Before gaining independence, the social security system of the Republic of North Macedonia was based on centralized Yugoslav Federation policies. Only after 1991 were concrete measures taken to establish a functional social security system in order to best meet the needs of its citizens. The Stabilization and Association Agreement between Macedonia and the EU requires that social security be adapted to the new social and economic requirements of society and the level of protection of the health and safety of workers be improved. The main rights of citizens regarding the social security system are ensured by the Constitution. The pension and disability system functions on the
Chapter 3
Poverty remains one of the most serious social issues, especially when it afflicts a significant portion of the population over an extended period of time. It has serious consequences both for people living in poverty and for the community where those individuals live. Hence, every society seeks to reduce the number of people that live in poverty through its social policy and the established system of social security. This chapter aims to show the poverty rate in the Republic of North Macedonia, its structure and amplitudes over time, the reasons that cause it, and the measures taken to reduce it. To achieve this objective, secondary analysis of data was carried out, in particular analysis of data obtained from the government agencies that coordinate poverty reduction programs and social policy institutions in the Republic of North Macedonia. The research results indicate that the poverty rate in the Republic of North Macedonia over a long period of time has increased compared to most countries in the region. Although poverty has been reduced over the last few years, it remains at a high level compared to other countries.
Chapter 4
Unemployment is one of the most serious social issues, especially when it has structural characteristics. This chapter presents the evolution of unemployment in the Republic of North Macedonia, the reasons for the manifested amplitudes over time, and the attempts to reduce it and bring it under control through measures taken on the labor market. The research is conducted based on secondary sources of information: analysis of data obtained from the official state institutions in charge of recording unemployment and addressing this significant social challenge, as well as analysis of the most significant
Chapter 5
The pension system in Montenegro, although multi-pillar by law, is largely based on a mandatory public pay-as-you-go system that is operated by Montenegro’s public pension fund and is subsidized by the Government. Since the two reforms in 2003 and 2010, the financial sustainability of the pension fund has been improved, but it still has not achieved its full capacity. Despite growing employment and efforts to reduce the informal economy, the ratio of workers to retirees has only moderately decreased since 2006 due to the aging population. This chapter aims to present recent developments in the Montenegrin pension system and to analyze the sustainability of the system in the future, bearing in mind the continued aging of the population, the mounting public debt and the high fiscal burdens that discourage investment. The framework of the study is based on two key characteristics of the Montenegrin pension system: the unsatisfactory ratio of workers to retirees and the insufficient pension funds and disability insurance. The study employs quantitative methods, and population projections were created by applying the cohort component method. The pension fund’s forecasted expenditures and revenues were estimated by applying the arithmetic approach. Two forecasting scenarios, the aging population and wage growth are presented. The results show that the financial sustainability of the pension system in its current form may be improved by 2056, but it cannot be achieved in full. Although two comprehensive reform packages were implemented to increase the retirement age, introduce a points system in pension calculation, and change the pension adjustment formula, further reforms are recommended. To provide a pension system that is more sustainable from both a fiscal and a social perspective, further reforms may be directed at prolonging labour market participation by strengthening the early retirement policy and revising the early retirement scheme.
The period of transition after 1989 did not introduce radical transformations to the Montenegrin health care system. Gradual reforms started as late as in 2004 and have resulted in the sustained dominance of the public health care system over the private sector. The purpose of this chapter is to explore the effects of the public health care sector reforms after 1989 in Montenegro regarding access to and the quality and sustainability of health care services. The study is based on qualitative analysis and assessment of the provision of health care by various sectors, with an emphasis on the public sector. The chapter starts with alternative roles of the state concerning health care – as a regulator, funder/purchaser and provider/planner, and takes them into consideration further within the Montenegrin context. The research shows the mixed results of health care reform. While coverage of the population by health care services is high, there are certain gaps. There is a failure to maintain high quality, and the funding mechanisms are not sufficient for a sustainable health care system. The progress of the Montenegrin health care reforms, therefore, seems moderate.
Chapter 7
After a decade of isolation from international processes following Yugoslavia’s disintegration, the Republic of Montenegro currently aspires to become a part of the European Union. This comes with many challenges to adopt EU social policy principles and its social protection system including EU standards, requirements and best practices. The aim of this chapter is to scrutinize the social protection system in Montenegro by analysis of the legal framework, organization of institutions, financing mechanism as well as benefits and allowances schema. The study was based on secondary research using data from legal documents, the Statisitcal Office of Montenegro, the Ministry of Labor and Social Welfare of Montenegro and the European Commission. The chapter examines the following topics: legal framework, structure of social protection, financial benefits and allowances, financing system of social protection and strategic reforms. The study indicates the need for a strong continuing reforms process of the social protection system to improve structure and quality of service provision, achieve broader social justice, increase protection of vulnerable groups such as elderly people and create better child protection system.
Montenegro, a small Balkan state, has to grapple with many economic issues. The labor market situation has not improved in recent years. The unemployment rate has remained stubbornly high, especially among young people. What is more, around 20% of the employed in fact work in the informal economy. Large numbers of the unemployed pose a serious challenge not only to the Montenegrin economy, but also to the capacities of social security system. The economic situation and the level of unemployment also have an impact on the scale of emigration. The aim of this chapter is to present two key challenges to the social security of Montenegro – unemployment and emigration. The analytical basis of this research is a review of economic, sociological and security-related literature, including a secondary data analysis of public policy documents, statistics and media reports. Considering the subject of this study, qualitative research seemed necessary while the research topic justifies the application of content analysis and desk research in order to analyze secondary data sources. The chapter begins by presenting briefly the economic situation in Montenegro – what changes have taken place in the economy over the last 30 years. Next, the unemployment level in Montenegro is described. The last part of the analysis presents the problem of emigration resulting from the economic situation in Montenegro and the level of unemployment. Despite efforts to accelerate economic growth and reduce the level of unemployment, economic slowdown is expected, which will in turn further increase migration flows.