Macedonia, former Yugoslav Republic of - Poverty, Jobs and Firms : An Assessment for 2002–2006

This poverty assessment report is based
upon pre-crisis data for the period 2002-2006. Though some
may have reservations that this information base is not well
suited to informing public policy choices of today, this
view would be short-sighted. Economic development is not an
overnight occurrence. It is also not something that can be
reversed through an economic shock, no matter how virulent.
The analysis of data from the first half of this decade
reveals small though perceptible shifts in the transmission
channels for poverty reduction, that is, labor markets and
enterprises. Thus, the reform process which began earlier
this decade indeed saw some positive changes emerging in the
real sector. These are captured in this report and provide
an understanding of how the complex issue of poverty can be
addressed in the future. The remainder of this executive
summary provides an overview of the main findings of the
analysis. The following main areas discussed in the poverty
assessment: (i) a description of the extent of poverty, the
characteristics of the poor, trends in non-income and income
dimensions of poverty over 2002-2006, and inequality; (ii)
the role of economic growth, employment changes, and social
transfers in affecting poverty rates; (iii) job dynamics and
the characteristics of firm birth and destruction and its
linkages to job opportunities, labor productivity, and
long-term income growth; and (iv) policy reforms that will
lead to poverty reduction.