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A Policy Proposal for Promoting Inter-ethnic Stakeholder Enterprises in Macedonia

Annual Call for Projects 2001

Summary

Prof. Norman Scott of the Graduate Institute of International Studies (GIIS) passed away on 10 March 2004. Professor Scott was former Director of the International Trade Division at the United Nations Economic Commission for Europe (UNECE) and Associate Professor of Eastern European and Soviet economics at GIIS. Since 1999, he was Director of the Diplomatic Studies Programme at GIIS, and a highly-respected member of the faculty.

The GIAN deeply regrets his passing and extends the sympathy and condolences of its members and staff to his family, friends and colleagues.

The GIAN project that Prof. Scott was coordinating at the time of his death will be finalised in the upcoming months.

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The primary aim of the proposed research project is to ascertain what policies and policy instruments, both national and international, could be most effective in promoting the sustainable development of inter-ethnic enterprise partnerships in Macedonia and then to incorporate them in a programme proposal for submission to the government.

The primary challenges facing Macedonia are the restoration of peaceful inter-ethnic relations, which have deteriorated sharply in the recent past, and the launch of a programme of economic development that will be both sustainable and participatory in the sense that ethnic minorities will be enabled and encouraged to play a full and equal part.

The members of the team who have received support from the GIAN are convinced that the creation of successful small and medium-sized enterprises in which the partners are from different ethnic groups (chiefly Slavs and Albanians, but also others including Turks and Vlachs) could make a signal contribution to economic progress and social harmony by demonstrating that stakeholders in successful enterprises become ipso facto stakeholders in a society at peace with itself. This is in accord with GIAN's chosen thematic areas of sustainable development, social equity and intercultural relations and dialogue.

The team is aware that inter-ethnic joint enterprises have existed in the region for many decades and were even a quite common feature of Macedonian society while the Ottoman Empire held sway until 1912, when the last Turkish garrison withdrew from the capital, Skopje. It is also aware, however, that this promising tradition, which could serve as a point of departure for a broadly based programme of policy encouragement for a critically important sector of the economy, is now at risk of being swept away in a flood of inter-ethnic mistrust. Indeed, in the past few months there have been indications that inter-ethnic intolerance and tension has obliged some such joint enterprises to scale down their operation or even to close down.

Research methods

The research team will undertake detailed surveys of the following:

(a) a selection of inter-ethnic joint enterprises which have been successful as judged by a set of conventional economic and financial performance criteria.

(b) a selection of such joint enterprises which have failed.

On the basis of the results an attempt will be made to identify those characteristics of successful joint enterprises which could, if generalized and made better known, generate by demonstration effect a significant increase in the number of successful joint enterprises.

Amongst the characteristics to be studied, particular attention will be paid to the demonstrable results of governmental promotional measures, including those provided by a number of international bilateral and multilateral small and medium sized enterprises (SME) programmes - some of these being non-governmental.

To the extent that they can be identified, an assessment will also be attempted of those elements of social context which may contribute to successful inter-ethnic undertakings, such as mutual understanding or ties of friendship attributable in some degree to common schooling or joint obligatory army service, or to membership of sports clubs, youth organizations or other manifestations of joint civil society.

It should be stressed that a comparative survey of the aims and accomplishments of international assistance in this field will be part and parcel of the research plan. Here, the purpose would be, first, to ascertain which programmes and programme elements have been effective in respect of the general aim of the project; and then to suggest that best practice be generalized and incorporated in government sponsored or supported future programmes.

The questionnaire plus interview approach to be used for the detailed survey of the characteristics of joint enterprises would also be utilized for identifying the policy lessons to be obtained from the experience of governmental and non-governmental programmes in favour of small and medium-sized enterprises (particularly in respect of local micro-credit schemes), although desk research and scanning of library sources would also be undertaken.

The grant provided by the GIAN for this project totals SFr 35,000

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Project Team

Dr. Lucas Assunciao , Principal Member, University for Peace (UPEACE) .

Mr Branislav Gosovic , Principal Member, South Center , South Centre .

Dr. Dimitar Vlahov , Principal Member, Regional Institute for Development Studies (RIDS).

Dr. Kiro Gligorov , Associated Member, Regional Institute for Development Studies (RIDS).

Prof. Norman Scott , Former Coordinator, Graduate Institute of International Studies (GIIS) .