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'''Macedonia''', or the '''Republic of Macedonia''', officially recognised by the UN and most countries as the '''Former Yugoslav Republic of Macedonia''' (FYROM) is an inland country located in the Balkans of southeastern [[Europe]].  The official name of this country is still not recognised due to the name conflict of the word Macedonia, used to describe the ancient Greek territories of Macedonia and the prefecture of Macedonia of modern Greece.

'''Macedonia''', or the '''Republic of Macedonia''', officially recognised by the UN and most countries as the '''Former Yugoslav Republic of Macedonia''' (FYROM) is an inland country located in the Balkans of southeastern [[Europe]].  The official name of this country is still not recognised due to the name conflict of the word Macedonia, used to describe the ancient Greek territories of Macedonia and the prefecture of Macedonia of modern [[Greece]].

==Name==

==Name==

==Geography==

==Geography==

Macedonia is located in the heart of south central Europe. It shares a border with Greece to the south, Bulgaria to the east, Serbia (and Kosovo) to the north, and Albania to the west. The country is 80% mountainous, rising to its highest point at Mt. Korab (peak 2,764 m).  

Macedonia is located in the heart of south central Europe. It shares a border with Greece to the south, [[Bulgaria]] to the east, [[Serbia]] (and [[Kosovo]]) to the north, and [[Albania]] to the west. The country is 80% mountainous, rising to its highest point at Mt. Korab (peak 2,764 m).  

==People==

==People==

Since the end of the Second World War, Macedonia's population has grown steadily, with the greatest increases occurring in the ethnic Albanian community. From 1953 through the time of the latest official census in 2002 (initial official results were released December 2003), the percentage of ethnic Albanians living in Macedonia rose threefold. The western part of the country, where most ethnic Albanians live, is the most heavily populated, with approximately 40% of the total population. As in many countries, people have moved into the cities in search of employment. Macedonia has also experienced sustained high rates of permanent or seasonal emigration.  

Since the end of the [[Second World War]], Macedonia's population has grown steadily, with the greatest increases occurring in the ethnic Albanian community. From 1953 through the time of the latest official census in 2002 (initial official results were released December 2003), the percentage of ethnic Albanians living in Macedonia rose threefold. The western part of the country, where most ethnic Albanians live, is the most heavily populated, with approximately 40% of the total population. As in many countries, people have moved into the cities in search of employment. Macedonia has also experienced sustained high rates of permanent or seasonal emigration.  

*Population (2006 est.): 2,042,894.

*Population (2006 est.): 2,042,894.

*Growth rate (2006 est.): 0.2%.

*Growth rate (2006 est.): 0.2%.

*Ethnic groups (2002): Macedonian 64.18%, Albanian 25.17%, Turkish 3.85%, Roma 2.66%, Serb 1.78%.  

*Ethnic groups (2002): Macedonian 64.18%, Albanian 25.17%, [[Turkey|Turkish]] 3.85%, [[Roma]] 2.66%, Serb 1.78%.  

*Religions: Eastern Orthodox 65%, Muslim 29%, Catholic 4% and others 2%.

*Religions: [[Eastern Orthodox]] 65%, [[Muslim]] 29%, [[Catholic]] 4% and others 2%.

*Languages: Macedonian 70%, Albanian 21%, Turkish 3%, Serbo-Croatian 3%, and others 3%.

*Languages: Macedonian 70%, Albanian 21%, Turkish 3%, Serbo-Croatian 3%, and others 3%.

*Education: Years compulsory--8. Literacy--94.6%.

*Education: Years compulsory--8. Literacy--94.6%.

The stability of the young state was gravely tested during the 1999 Kosovo crisis, when Macedonia temporarily hosted about 360,000 refugees from the violence and ethnic cleansing in Kosovo. The refugee influx put significant stress on Macedonia's weak social infrastructure. With the help of NATO and the international community, Macedonia ultimately was able to accommodate the influx. Following the resolution of the conflict, the overwhelming majority of refugees returned to Kosovo. A small number of Roma refugees from Kosovo remains in Macedonia, most of them housed in the predominantly Roma municipality of Suto Orizari in the Skopje suburbs, and supported by the UNHCR.  

The stability of the young state was gravely tested during the 1999 Kosovo crisis, when Macedonia temporarily hosted about 360,000 refugees from the violence and ethnic cleansing in Kosovo. The refugee influx put significant stress on Macedonia's weak social infrastructure. With the help of NATO and the international community, Macedonia ultimately was able to accommodate the influx. Following the resolution of the conflict, the overwhelming majority of refugees returned to Kosovo. A small number of Roma refugees from Kosovo remains in Macedonia, most of them housed in the predominantly Roma municipality of Suto Orizari in the Skopje suburbs, and supported by the UNHCR.  

Macedonia enjoys good relations with its neighbors. It has strong trade and tourism ties with Greece, and has developed similarly robust political and trade ties with Albania and Bulgaria. Relations between Belgrade and Skopje are good overall, although a dispute between the Macedonian Orthodox Church and the Serb Orthodox Church has strained ties over the past two years. Relations with Kosovo are good, with Macedonia having signed an Interim Free Trade Agreement with UNMIK in 2005 and with regular bilateral political contacts occurring between Pristina and Skopje since 2005.  

Macedonia enjoys good relations with its neighbors. It has strong trade and tourism ties with Greece, and has developed similarly robust political and trade ties with Albania and Bulgaria. Relations between Belgrade and Skopje are good overall, although a dispute between the Macedonian Orthodox Church and the [[Serbian Orthodox Church]] has strained ties over the past two years. Relations with Kosovo are good, with Macedonia having signed an Interim Free Trade Agreement with UNMIK in 2005 and with regular bilateral political contacts occurring between Pristina and Skopje since 2005.  

Macedonia also has made important strides toward Euro-Atlantic integration. Macedonia is an active participant in NATO's Partnership for Peace and Membership Action Plan, the OSCE, and United Nations, and was accepted as a member of the World Trade Organization (WTO) in October 2002. In May 2003, Macedonia, Albania, Croatia, and the U.S. created the Adriatic Charter, modeled on the Baltic Charter, as a mechanism for promoting regional cooperation to advance each country's NATO candidacy. Since then, the Adriatic Charter countries have cooperated closely in regional military exercises, and have deployed a joint medical team to support international coalition operations in Afghanistan. In 1999, the EU agreed to pursue a Stabilization and Association Agreement (SAA) with Macedonia; negotiations with Macedonia were launched April 5, 2000. The SAA was signed April 2001 and came into force in April 2004. Its trade and trade-related provisions have been in force since June 2001. For Macedonia to successfully integrate within the global arena, continued efforts to strengthen its multi-ethnic civil society institutions, to develop measures to promote economic growth and investment, and to foster strong indigenous non-governmental organizations are necessary. On November 9, 2005 the European Commission recommended EU candidate status for the country. It recommended beginning formal accession negotiations after Macedonia had made further progress on a number of reform fronts, including combating corruption; enacting judicial, administrative, and economic reforms; and conducting free and fair parliamentary elections, in accordance with European standards, in 2006. In December 2005, the European Council granted candidate country status to Macedonia, taking into account the "substantial progress made in completing the legislative framework related to the Ohrid Framework Agreement, as well as its track record in implementing the Stabilization and Association Agreement (including its trade-related provisions) since 2001." The Council also noted the need to consider further steps toward membership in light of the debate on the enlargement strategy, and the need for Macedonia to continue strong progress toward meeting the Copenhagen political criteria, as well as Stabilization and Association Agreement requirements.

Macedonia also has made important strides toward Euro-Atlantic integration. Macedonia is an active participant in [[NATO]]'s Partnership for Peace and Membership Action Plan, the OSCE, and [[United Nations]], and was accepted as a member of the [[World Trade Organization]] (WTO) in October 2002. In May 2003, Macedonia, Albania, Croatia, and the U.S. created the [[Adriatic Charter]], modeled on the [[Baltic Charter]], as a mechanism for promoting regional cooperation to advance each country's NATO candidacy. Since then, the Adriatic Charter countries have cooperated closely in regional military exercises, and have deployed a joint medical team to support international coalition operations in [[Afghanistan]]. In 1999, the [[EU]] agreed to pursue a Stabilization and Association Agreement (SAA) with Macedonia; negotiations with Macedonia were launched April 5, 2000. The SAA was signed April 2001 and came into force in April 2004. Its trade and trade-related provisions have been in force since June 2001. For Macedonia to successfully integrate within the global arena, continued efforts to strengthen its multi-ethnic civil society institutions, to develop measures to promote economic growth and investment, and to foster strong indigenous non-governmental organizations are necessary. On November 9, 2005 the European Commission recommended EU candidate status for the country. It recommended beginning formal accession negotiations after Macedonia had made further progress on a number of reform fronts, including combating corruption; enacting judicial, administrative, and economic reforms; and conducting free and fair parliamentary elections, in accordance with European standards, in 2006. In December 2005, the European Council granted candidate country status to Macedonia, taking into account the "substantial progress made in completing the legislative framework related to the Ohrid Framework Agreement, as well as its track record in implementing the Stabilization and Association Agreement (including its trade-related provisions) since 2001." The Council also noted the need to consider further steps toward membership in light of the debate on the enlargement strategy, and the need for Macedonia to continue strong progress toward meeting the Copenhagen political criteria, as well as Stabilization and Association Agreement requirements.

==Defense==

==Defense==

*Official exchange rate (2005 avg.): 49.3 Macedonian denars = U.S.$1; (2006 avg.): 48.8 Macedonian denars = U.S.$1.  

*Official exchange rate (2005 avg.): 49.3 Macedonian denars = U.S.$1; (2006 avg.): 48.8 Macedonian denars = U.S.$1.  

Five years of continuous economic expansion in Macedonia was interrupted by the 2001 conflict, which led to a contraction of 4.5% in 2001. Growth started to pick up in 2003 (2.8%) and continued in 2004 (4.1%), 2005 (3.8%), and 2006 (3.1%). Living standards still lag behind those enjoyed before independence. In 2007, real growth is projected to reach a rather optimistic 6% annually, with inflation of up to 3.2%. The United States is supporting Macedonia's transition to a democratic, secure, market-oriented society with substantial amounts of assistance.  

Five years of continuous economic expansion in Macedonia was interrupted by the 2001 conflict, which led to a contraction of 4.5% in 2001. Growth started to pick up in 2003 (2.8%) and continued in 2004 (4.1%), 2005 (3.8%), and 2006 (3.1%). Living standards still lag behind those enjoyed before independence. In 2007, real growth is projected to reach a rather optimistic 6% annually, with inflation of up to 3.2%. The [[United States]] is supporting Macedonia's transition to a democratic, secure, market-oriented society with substantial amounts of assistance.  

====Background====

====Background====

After the breakup of Yugoslavia in 1991, Macedonia, the former Yugoslavia's poorest republic, faced formidable economic challenges posed by both the transition to a market economy and a difficult regional situation. The breakup deprived Macedonia of key protected markets and large transfer payments from the central Yugoslav government. The war in Bosnia, international sanctions on Serbia, and the 1999 crisis in neighboring Kosovo delivered successive shocks to Macedonia's trade-dependent economy. The government's painful but necessary structural reforms and macroeconomic stabilization program generated additional economic dislocation. Macedonia’s economy was hurt especially by a trade embargo imposed by Greece in February 1994 in a dispute over the country's name, flag, and constitution, and by international trade sanctions against Serbia that were not suspended until a month after conclusion of the Dayton Accords. The impact of the 2001 ethnic Albanian insurgency in Macedonia, decreased international demand for Macedonian products, canceled contracts in the textile and iron and steel industry, and poor restructuring of the private sector affected Macedonia's growth and foreign trade prospects through 2004.  

After the breakup of [[Yugoslavia]] in 1991, Macedonia, the former Yugoslavia's poorest republic, faced formidable economic challenges posed by both the transition to a [[market economy]] and a difficult regional situation. The breakup deprived Macedonia of key protected markets and large transfer payments from the central Yugoslav government. The war in [[Bosnia]], international sanctions on Serbia, and the 1999 crisis in neighboring Kosovo delivered successive shocks to Macedonia's trade-dependent economy. The government's painful but necessary structural reforms and macroeconomic stabilization program generated additional economic dislocation. Macedonia’s economy was hurt especially by a trade embargo imposed by Greece in February 1994 in a dispute over the country's name, flag, and constitution, and by international trade sanctions against Serbia that were not suspended until a month after conclusion of the Dayton Accords. The impact of the 2001 ethnic Albanian insurgency in Macedonia, decreased international demand for Macedonian products, canceled contracts in the textile and iron and steel industry, and poor restructuring of the private sector affected Macedonia's growth and foreign trade prospects through 2004.  

Macedonia's political and security situation is stable. This has allowed the government to refocus energies on domestic reforms, boosting economic growth, and attracting increased levels of foreign investment. In 2004, the government passed a progressive Trade Companies Law aimed at easing impediments to foreign investment, providing tax and investment incentives, and guaranteeing shareholder rights. In 2006, the government began implementing a one-stop procedure for business registration that considerably shortened the time required to register a new business. The government’s fiscal policy, aligned with International Monetary Fund (IMF) and World Bank policies, helped maintain a stable macroeconomic environment. Legislation that would further liberalize the telecommunications market, and completion of the first phase of privatization of the electricity sector, sent promising signals to investors. However, economic growth remained sub-par in 2005 and 2006, due in part to poor government results in combating corruption and a weak judiciary, as well as high domestic finance costs and continued bureaucratic obstacles to doing business. The new Government of Macedonia that took office in August 2006 put the fight against corruption and attracting foreign investors at the very top of its priority list. In 2007, it launched an expensive marketing campaign promoting the country as a good investment destination. It provided business incentives by cutting rates on profit tax and personal income tax, while implementing a “regulatory guillotine”--an activity which aims to significantly reduce procedures and legislative requirements for doing business.  

Macedonia's political and security situation is stable. This has allowed the government to refocus energies on domestic reforms, boosting economic growth, and attracting increased levels of foreign investment. In 2004, the government passed a progressive Trade Companies Law aimed at easing impediments to foreign investment, providing tax and investment incentives, and guaranteeing shareholder rights. In 2006, the government began implementing a one-stop procedure for business registration that considerably shortened the time required to register a new business. The government’s fiscal policy, aligned with International Monetary Fund (IMF) and World Bank policies, helped maintain a stable macroeconomic environment. Legislation that would further liberalize the telecommunications market, and completion of the first phase of privatization of the electricity sector, sent promising signals to investors. However, economic growth remained sub-par in 2005 and 2006, due in part to poor government results in combating corruption and a weak judiciary, as well as high domestic finance costs and continued bureaucratic obstacles to doing business. The new Government of Macedonia that took office in August 2006 put the fight against corruption and attracting foreign investors at the very top of its priority list. In 2007, it launched an expensive marketing campaign promoting the country as a good investment destination. It provided business incentives by cutting rates on profit tax and personal income tax, while implementing a “regulatory guillotine”--an activity which aims to significantly reduce procedures and legislative requirements for doing business.