Politics and Macroeconomics in Southeastern Europe
On Sunday, September 30, a small country in southeastern Europe held a referendum to change its name. Many may wonder why a country would take such an action. In this case, the Republic of Macedonia is in the process of changing its name so that it can eventually join the North Atlantic Treaty Organization (NATO) and the European Union. The modern Republic of Macedonia came into existence in 1991, when it peacefully seceded from Yugoslavia. However, by adapting the name of Republic of Macedonia, the new country encountered resistance from its southern neighbor, Greece, whose Northern provinces are also called Macedonia. Greece’s government claimed that by assuming the name (Republic of Macedonia), the new country was claiming part of Greece’s heritage, history, and even territory. Therefore, a first compromise was struck by which the new country would be officially referred to as the Former Yugoslav Republic of Macedonia (FYRM or FYROM).
Nevertheless, now that the Republic of Macedonia (FYRM) has advanced into a free-market economy with democratic institutions and is seeking to join the multilateral institutions of the West, notably NATO and the EU, Greece is using its veto power as a member to halt the application process. As a result, the governments of Greece and the Republic of Macedonia sat down earlier this year to negotiate the Prespa Agreement. According to the terms of this agreement, Greece will support the FYRM’s bid for NATO and EU membership after the country officially changes its name to the Republic of North Macedonia. This official name change is currently an ongoing debate in the Republic of Macedonia given that it needs a two-third majority in parliament to be approved.
Politics and Macroeconomics in Southeastern Europe
Today, with a total of 25.713 square kilometers, the Republic of (North) Macedonia is somewhat larger than Vermont. Located in the Balkans, the country is landlocked and dominated by mountains as well as valleys and lakes. Likewise, the Republic of (North) Macedonia has a temperate seasonal climate. Currently, the country has a total population of approximately 2.1 million citizens, with an average age of 38 years. Furthermore, about 58% of the Macedonian population lives in an urban setting, notably the capital city of Skopje with some 584.000 inhabitants.
The country’s national annual gross domestic product (GDP) is US$31 billion (PPP) and has experienced positive economic growth in recent years. The economy of the Republic of (North) Macedonia is divided into 10% agriculture, 30% manufacturing, and 60% services. Meanwhile, the national labor force is divided into 16% working in the agriculture industry, 29% working in the industrial sector, and 55% working in services. Similarly, the national agriculture industry utilizes about 44% of the national territory, while another 40% is forested. In terms of natural resources, the Republic of (North) Macedonia has iron ore, copper, lead, zinc, chromite, manganese, nickel, tungsten, gold, silver, asbestos, gypsum, and timber. Within manufacturing, the national industry is focused on food processing, beverages, textiles, chemicals, metallurgy, cement, energy production, pharmaceuticals, and automotive parts. Simultaneously, the country’s agricultural industry has as main products grapes, tobacco, vegetables, fruits, milk, and eggs.
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