Statement by Dr Ivan Angelov, Ambassador to FAO-UN Representatives of the Former Yugoslav Republic of Macedonia

Rome, 18-19 February 2004

Mr. President,
Excellencies,
Ladies and Gentlemen,

It is my great pleasure, in the name of the Macedonian Minister for Agriculture, Forestry ad Water Economy, as well as in the name of the Government of the Republic of Macedonia, to express our best wishes for successful work of this Governing Council.

In the beginning of my presentation, I would like to express my special thanks to the President of IFAD and his collaborators for the support that has received the Republic of Macedonia at the times when it was mostly needed. The Republic of Macedonia has already used two credit line of IFAD for the support of agriculture in rural areas in order to reduce poverty of the people who live in those areas.
In the process of harmonization of the agricultural policy, the countries in transition, including Macedonia, need convenient technical, technological and educational assistance. The countries from this group working on the determination for strategic agricultural development have to predetermine measures that will enable connection to the mutual agricultural policy.

Following the independence of the country, the agricultural policy incorporated in the overall changes of the economy of the Republic of Macedonia from centralized to market-oriented model.

The aim of this agricultural policy ion Macedonia is the creation of a market-oriented production, liberalization of agricultural production from the protection of the state and stimulating the individual agricultural sector for increased productivity.

In order to achieve these aims, the Republic of Macedonia primarily started to overcome legal and administrative barriers.

Marketing and sales of our products is currently one of the biggest problems faced by the agricultural sector in the Republic of Macedonia. In order to solve these problems, a lot of activities are undertaken.

In this sense, efforts are made to establish market information system, wholesale markets and exchange of agricultural products. Activities are carried out also to harmonize the legislation of the Republic of Macedonia with the legislation of the European Union related phyto-sanitary, sanitary-veterinary and quality control. In addition to this, we permanently work to improve the quality of our agricultural products, in order to meet the strict standards of the European Union to remain competitive in the markets out of the Republic of Macedonia.

There is a long-term benefit from the rural revitalization, which should be considered. The village has a need to be recognized as socio-economic entity and to be a subject of long-term approach towards its development with sustainable management of its resources. The role of the rural areas from the development point of view of an integrated and balanced economy in Macedonia will be critical, especially in relation with the guaranty for food safety, production of raw material for the industry and protection of the areas from the aspects of economy recreation and tourism.

The establishment of a varied material and financially sustainable agriculture will be the key for the possibilities in the rural areas to make the necessary contribution towards long-term development of the country. The measures necessary for this type of agriculture will involve investment support as well as assistance for improvement of the agricultural infrastructure.
The key element in this strategy will be the coordination of the agricultural development with village revitalization and improvement of the rural infrastructure, convenient education, establishment of commercial services, such as shops, telecommunications, etc.

The basic strategic determinations should be directed towards the following:

• permanent production with the highest possible level of quality and production of cheap food for the population;
• preservation of the rural population in their living places, protection of the land and water from pollution and inadequate utilization;
• permanent increasing of the competitiveness of the agricultural production;
• supply of equal income to the farmers with extraordinary productive results.
  The Republic of Macedonia, with its macro and macro development strategy is determined to introduce reforms and development of agriculture in the rural areas through the following activities:
• transformation of the state to private ownership, especially complete privatization of the agricultural farms, primarily in order to improve competition in the provision of inputs, production and marketing of agricultural products;
• further reduction of the monopoly influence ion the agricultural products markets, additional to the privatization and the development of the supply by inputs and marketing channels;
• establishment of wholesale markets;
• liberalization of prices and trade of agricultural products with gradual withdrawal of:
  a) selective tax and import restrictions
  b) special taxes for import
  c) clear budget subventions
  d) protective prices for key products.
• assisting private sector through the establishment of effective financial services for mediation, by introducing advisory services which are supported by farmers and strengthening the agricultural research;
• strengthening of the Governmental capacity in order to monitor the agricultural sector, to develop sectoral policy and establish appropriate instruments through the modernization of the Ministry of Agriculture, Forestry and Water Economy (MAFWE) and bodies responsible for agricultural research, agricultural statistics and a department for the promotion of the individual farming;
• establishment of consulting procedures and institutions for agricultural development i.e. Agricultural council made up by linked interests of the interested stakeholders from agriculture and agro-business;
• carrying out reforms for rural land; denationalization of the land, establishing new methods for exploiting of the agricultural land, law for protection of the agricultural land and new law for inheriting as well as change of the system for cadastre registration of the land;
• provision of support for the essential rural infrastructure, with special focus on the rehabilitation and updating of the highly-reversible watering activities;
• strategy development and institutional ability for revitalization of the rural areas.

The structural agricultural policy can function in a better way if, with certain measures, the changes of the property and the ownership structure as well as the measures in the productive technological and organizational structure are supported. The agricultural crops demanded in the domestic and foreign market should be supported with special measures. For this aim the policy has on its disposition many mechanisms, starting with investment support, land policy to market organization and know-how transfer. In the frame of the structural agricultural policy special attention will be paid to the young farmers with convenient education.

The adoption of the mechanisms and the types of operations of the EU regional policy offers the following convenient solutions:

• better and more efficient concept of organisation of the agriculture connected with the other developing factors;
• establishment of administrative and project services for the private farmers;
• active role of the local government in the agricultural development and the other factors in the agricultural areas;
• construction of an integral concept of the regional policy with a clear determination of the government, the national assembly (Parliament) and the civil society.

Thank you for your attention