Annual Report 2020

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Luj Paster No. 1-2 office@macedonia2025.com + 389 23 161 015



MACEDONIA 2025

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ABOUT MACEDONIA 2025

An international, independent, nonpartisan, non-profit ‘think & do’ tank founded in 2007 by Macedonian expatriates who envision a proactive way of contributing to the economic and democratic development of Macedonia. With headquarters in Skopje and supporters around the globe, we encompass a wide array of programs that enable expatriates to give back to their homeland. We are dedicated to helping create a prosperous economic climate and a ‘stronger nation’ that will improve opportunities for citizens, companies, and foreign investors. We promote sustainable economic growth through fostering competitiveness, entrepreneurship, innovation and value based leadership.

We are driven by the following core values:

ENVISION

EVOLVE

ETHICAL

We envision programs, advocacy and research facilitating creation of an advanced knowledge and transformation of Macedonia into a vibrant economy.

We evolve the leadership, managerial and entrepreneurial capacities of the Macedonian leaders of tomorrow globally through leadership development programs.

We promote an ethical approach to business as a fundamental pillar of a healthy and prosperous society.

ENERGIZE

EXCEL

We energize the Macedonian citizens, businesses, academia and Diaspora through collaboration, networking and social engagements.

We excel in efficient execution of all programs and maximize the leverage of our donors’ support.

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MESSAGE FROM THE CHAIRWOMAN & CEO

Dear friends and partners of Macedonia2025, Although 2020 has been a challenging year for everyone, it has also presented unforeseen opportunities, made us more creative, but also reminded us of the important values in life. That being said, it would please us greatly to talk about successes, while accepting failures, to talk about long-term plans, progress and to highlight successful practices. Unfortunately, many of the planned annual Macedonia2025 activities and programs have been postponed. The programs for which the organization is known for, such as the Zafirovski Executive Education Program for training of executive directors, the Leader Project for training young entrepreneurs, and the Bitove Family Entrepreneurship Program were postponed or shifted to an online forum. Nevertheless, the crisis has shown that we can function in a different way, and take advantage of the opportunities offered by digitalization. We are proud to be able to say that Macedonia2025 managed to adapt to the new situation. The team accomplished a great deal. Macedonia2025 became a constructive partner to economic policy makers in this difficult period, provided support for our stressed health system, analyzed and lobbied for the needs of companies, all while continuing to support talented Macedonian students. Please allow us to highlight and snapshot what we have accomplished so far in 2020. Starting already in March we began a series of online trainings, webinars for knowledge transfer by world-renowned business professionals to our companies, using the rich potential of the Diaspora. We organized an online donation campaign where we donated intubation boxes, disinfectants, visors and protective masks for health workers at a time when the healthcare system was still preparing to meet the challenge presented by the crisis. For the first time in Macedonia, we calculated the Bureaucracy Index whose main goal is to measure the bureaucratic burden on companies, and to propose measures and reforms for

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its reduction. We were among the first organizations to prepare analyses on the impact of Covid-19 crisis on companies in Macedonia, with guidelines and ideas for designing more effective measures to support companies. We are happy that some of our ideas were accepted and translated into policies and measures. We have provided support for the development of domestic businesses through various programs, especially the Bitove Family Entrepreneurship Program through which domestic enterprises receive free expert assistance by top Canadian experts. Recently, together with five partner organizations and the President Pendarovski, we established the Presidential Center for Political Education. The main goal of the Center is to promote the culture of dialogue in the spirit of democratic values, encourage active citizenship and inclusion of political education in the education system. Together with our other programs targeted for youth, we believe that in this way we will influence the creation and formation of future leaders and young people with strong values. This year we also provided scholarships for 10 successful young people. We are proud of their success. Our goal is to expand the program, with more scholarships, but also greater support. We remain committed to supporting foreign investors who are interested in investing in Macedonia, as well as to attracting new investors. One of the main strategic goals of the organization is creating partnerships, as we are aware that only in this way we can achieve greater results. This year we signed additional Memoranda of Understanding with several key institutions. We enjoyed the fruits of our labor too. After the Lifetime Achievement Award by the President of the country that we received in 2019, this year Macedonia2025 won the prestigious international Small Business Awards, where it has been awarded as the Best Leadership and Economic Support Organization in Southeast Europe. These awards are indeed a confirmation that we are on the right track, while also serving as a motivation to achieve more.


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Nevertheless, as our most notable achievements in 2020, we would single out the two Platforms: First is the Connect2MK platform and the second is the Platform for Prosperous Future. These are two completely different initiatives, though they have the same goal: faster development and prosperity. One of the main principles of Macedonia2025 is using the potential of the Diaspora for economic development and business growth. So far, we have connected many businesses and helped many Macedonian companies become international brands. However, in order to increase the impact and support for companies, it is necessary to take advantage of the digital tools. Hence the idea for developing an online platform for connecting Macedonian businesses with diaspora experts, called Connect2MK. Our Country Dashboard is built around some key areas, which we believe will help us reach the goal of Macedonia becoming a leading economy and the most prosperous country in the region. Unfortunately, what the Dashboard currently shows is an absence of progress in most of the key areas and indicators. While we are certainly aware that an NGO cannot directly affect these indicators, we can stimulate partnerships; we can encourage unification of all major stakeholders around the future of our loved country. It is in that spirit that we decided to create the Platform for Prosperous Future. The Platform identifies seven key priorities for a fast progress of our country: education (human capital), competitiveness, rule of law and corruption, democratic society, environment, public governance, digitalization and digital skills. We strongly believe that these are the areas, where the country needs to advance, in order to swiftly converge to the living standard of the EU. We appeal to and call the political parties and leaders, as well the citizens in general to accept this Platform as an informal agreement that will bring a better future.

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Macedonia by promoting sustainable economic growth. Our strategic plan (2021-2025) seeks to multiply that impact, positioning Macedonia2025 as a strong economic and policy partner domestically, regionally and globally. We will continue to represent a strong organizational body of which Macedonians all around the world can be very proud. This is the right time and place to thank Vera Stavroff, who served as Chair of the Board of Directors at Macedonia2025 for two years. She provided consistent and thoughtful guidance and leadership through her term. We are all grateful for her insights, ideas, dedication and advocacy for our organization. It is with great pleasure that we would like to congratulate and welcome Michael Cklamovski as the new Chair of the Board, on behalf of all the members. We are all happy and excited about his inputs and contributions! We would like to end along the lines with something that has become the motto of our organization and we hope that it also becomes the motto of the Macedonian leaders: it does not matter if we move left or right, but whether we go UP or DOWN.

In short, we are satisfied with our results and achievements this year and remain committed to achieving our mission: shaping the future of

Vera Stavroff

Chairwoman of the Board Macedonia2025

Prof. Dr. Nikica Mojsoska-Blazhevski Chief Executive Officer Macedonia2025

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BOARD OF DIRECTORS )2020(

We truly acknowledge the leadership, commitment and support of our Board of Directors.

Michael Cklamovski

Mike Zafirovski (Co-Founder),

(Co-Founder),

Managing Director at CIBC, USA

Founder and President of the Zaf Group, USA

Chairman and CEO of Obelysk, Canada

Chris Pavlovski,

Peter Simeon,

Jim Nikopoulos,

Founder and CEO at Rumble Inc., Canada

Partner at Gowling WLG, Canada

President at ECN Capital, Canada

Nevenka Dimitrova,

Alek Icev,

PhD in Computer Science, USA

Engineering Manager at Google, USA

Kati Iceva, Principal Software Engineering Manager at Microsoft, USA

Jana Marin, Board Member at Macedonia2025, Macedonia

Viktor Mizo,

Vasko Kronevski,

Borko Handjiski,

Vera Stavroff (Chairwoman of the Board),

President and CEO of Herbal Science LLC, USA

Mitre Kutanovski (Co-Founder),

President and CEO of Mak International Shipping LLC, USA

Mihail Mateski,

CEO at Greentech DOO, Serbia ANNUAL REPORT 2020

(Vice-Chairman of the Board),

Managing Director at KOSTAL, Macedonia

CEO at Nextsense, Macedonia

John I. Bitove

Associate Partner at McKinsey & Company, UAE


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MACEDONIA2025 MAIN STRATEGIC PILLARS

We accomplish our mission by implementing programs and activities in four strategic pillars, which are developed and designed in consultation with the business community in Macedonia, our expatriates around the globe, the international economic and diplomatic institutions, as well as our own research, insights and observations. Below we present our strategic pillars, as well as the major programs, initiatives and activities that we implemented within each pillar in 2020.

1. Accelerate the growth and competitiveness of Macedonian Businesses We are dedicated to supporting the competitiveness of Macedonian companies, attracting foreign investment and stimulating export development. We work on supporting the steady development of entrepreneurs, start-up companies and growth in foreign markets. 1.1. Supporting growth and internationalization of businesses: The Virtual Bitove Family Entrepreneurship Program in partnership with CESO SACO 1.2. Connecting Macedonian businesses with professional expatriates from around the world: Launching the brand new platform Connect2MK 1.3. Focusing on the post Covid-19 period and the recovery of the economy: Successful Hybrid/ Virtual Macedonia2025 Summit 1.4. The Bureaucracy Index for Macedonia calculated for the first time: Proposing measures for reducing the

bureaucratic burden on Macedonian businesses 1.5. International growth support for all entrepreneurs: Interactive workshop on the EIT Digital Venture Program 1.6. Accelerated knowledge transfer to domestic businesses through our MK2025 Growth Webinar Series 1.7. Supporting and mentoring entrepreneurs in developing business applications related to climate change: O2 Challenge 2 – Action for Climate Positive Change 1.8. Supporting the online business community: Gold sponsor at the Startup Weekend Skopje – Covid-19 Edition 1.9. Advocacy for Equivalency of EU/US certificates for organic production of Macedonian products: Increasing competitiveness and boosting product export

2. Accelerate leadership development and support young talents We evolve the leadership, managerial and entrepreneurial capacities of top Macedonian leaders of tomorrow, supporting promising young talents to reach their full potential and become successful professionals. 2.1. Scholarships awarded to the best young talent – The leaders of tomorrow! 2.2. Macedonia2025 representatives provided a virtual

career counselling to the high-school students in Macedonia 2.3. Improving the quality of primary education across the Western Balkans through critical thinking, problem solving and coding skills for students: London School of Economics (LSE) and British Council 2.4. Raising awareness about innovations and coding among youth in Macedonia: Special event with President Pendarovski

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2.5. Supporting youth leadership and engagement: Partners to the newly established Presidential Center for Political Education 2.6. Helping the youth in Macedonia have a better chance for success: Online donation campaign ‘No

Child Left Offline’ 2.7. Engaging our education and leadership development programs participants: High-impact Alumni activities

3. Build strong partnerships and linkages worldwide We are dedicated to building strong partnerships and working together towards building a stronger nation. We represent a platform for all Macedonians around the globe to unite, help and join our efforts in supporting the economic and democratic growth of Macedonia.

3.2. Macedonia2025 Intensifies its International Cooperation: Memoranda of Cooperation (MoC) with INESS Slovakia and LinkAcross 3.3. Promoting our Successful Members: Youth Diaspora Voices

Young

Diaspora

3.1. Increased Diaspora Engagement and Growing Body of Supporters: Central Park Picnic in New York

4. Advocate to improve the Macedonian business environment We advocate for a transparent and corruption-free society by providing expert guidance and research on key economic challenges. From here, we improve the business environment and utilize the support from our expatriates for economic progress of the country. 4.1. Macedonia2025 Winner of the 2020 Small Business Awards for Best Leadership & Economic Support Organization in Southeast Europe 4.2. Analyses on the impact of Covid-19 crisis on companies in Macedonia: Policy Contributions 4.3. Supporting the Macedonian healthcare system through our online donation campaign for frontline healthcare workers

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4.4. Improved and updated version Macedonia2025 Country Dashboard

of

the

4.5. Macedonia2025’s Platform for Prosperous Future discussed with leading policymakers 4.6. Authoring High-Quality Analyses, Research Articles and Leading Publications 4.7. Improved Public Visibility: Macedonia2025 Annual Media Outreach 4.8. Positioning Macedonia2025 as a strong economic and policy partner: Strategic Plan (2021-2025)


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1. ACCELERATE THE GROWTH AND COMPETITIVENESS OF MACEDONIAN BUSINESSES

1.1. Supporting growth and internationalization of businesses: The Virtual Bitove Family Entrepreneurship Program in partnership with CESO SACO 11 companies supported Macedonia2025 and the Bitove Family Foundation have a joint mission with CESO SACO to enhance the competitiveness of Macedonian companies. CESO SACO is dedicated to sustainably reducing poverty and fostering economic growth in Canada and globally. The aim of the Bitove Family Entrepreneurship Program in partnership with CESO SACO is to support the growth of the private sector in the country and help businesses to internationalize, thus contributing to the overall economic development. CESO SACO provides senior Advisers, with experience in diverse sectors and industries to assist small entrepreneurs/MSMEs in improving their business operations by providing skills development and related best practices, processes and systems. The Advisers work on specific challenges that Macedonian companies face, by delivering indepth mentorship and training, for improving their

operations, production, marketing processes, market expansion challenges, etc. They are passionate about sharing the wealth of knowledge and expertise they have accumulated over their careers in meaningful ways. Due to the circumstances with the Covid-19 pandemic, we offered a unique opportunity for a virtual continuation of the program. 11 companies have been supported through the program. Prior the pandemic, we had one very successful assignment in Skopje, then five companies agreed for a virtual mentorship, three applications were postponed for 2021 (having a strong preference for an in-person experience) and two are to be matched soon. ‘I am very thankful to the Bitove Family Foundation for the given opportunity to learn from a widely recognized senior expert and integrate the transferred knowledge in my company. I highly recommend this program to all Macedonian companies who need additional support.’

1.2. Connecting Macedonian businesses with professional expatriates from around the world: Launching the brand new platform Connect2MK Macedonia2025 has connected many businesses and helped many Macedonian companies to become international. We are aware that in order to increase the impact and support for companies, it is necessary to take advantage of digital tools. Hence the idea for​developing an online platform for connecting Macedonian businesses with diaspora experts, called Connect2MK.

companies of dominantly Macedonian ownership, of any size (micro, small, medium and large enterprises), who seek support from experts and (2) successful business professionals of Macedonian origin around the world, who will provide of support to Macedonian businesses. Both parties of the platform will have the

During the Macedonia2025 Summit we officially launched and promoted our brand new platform that connects Macedonian businesses with professional expatriates from around the world, therefore helping them grow and prosper in an international environment. The web platform provides connection and communication between: (1) Nela Joleska, CEO of EQ Excellence, Skopje.

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opportunity to choose between several types of support and services: mentoring, meeting foreign partners, seeking foreign investors, selling products / services, etc. So far, 17 experts and 18 companies have created a profile on the platform. In this way, Macedonia2025 and our community of supporters in the diaspora aim to support competitiveness of Macedonian companies and stimulate export development, thus contributing to faster economic growth and better living standard.

1.3. Focusing on the post Covid-19 period and the recovery of the economy: Successful Hybrid/ Virtual Macedonia2025 Summit The annual ninth Macedonia2025 Summit took place in a hybrid format for the first time, on 1-3 December 2020 through the online conference platform hopin. com. Having some of the greatest minds in business, science, and technology as our speakers, we shape the present into a tomorrow in a parallel step with the world’s leading countries.

300+ participants 130+ B2B meetings 200+ media announcements 3-day live stream on Macedonian Radio Television 15.000+ page views The Macedonia2025 Virtual/ Hybrid Summit 2020 is a premier regional gathering that serves as a platform for sharing knowledge, connecting organizations, and inspiring change in Southeast Europe. The Summit discussion revolved around three main topics – ‘The World in Crisis-Mode: Economic Reforms and Global Relations in SEE’, ‘Same Rules – Different Countries: How to Start, Build and Succeed in Business’ and ‘Valuing Our Most Valuable Asset – People’, offering great insights and best practices from leading countries.

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This year’s Summit successfully gathered a total number of 300+ online participants and offered a three-day program focused on the post Covid-19 period and the recovery of the economy. What is more, many viewers watched the event’s live stream on the national TV station, Macedonian Radio Television, significantly enlarging the overall scope of the Summit audience. In addition, the event was supported by 20+ national and international media partners, leading to 200+ media announcements over the three days of the Summit in domestic and major regional media outlets. During the Virtual/ Hybrid Summit 2020 attendees also had access to many networking opportunities, sponsors’ expo booths and chance for active participation. Our Summit Satisfaction Survey findings show that 84% of the audience were very satisfied and satisfied with the Summit and 14% were neutral. Their main reasons for attending the event were learning new things, supporting the organization and networking. Regarding the digital presence of the Summit, the Summit webpage counts around 12.000 page views, and it will remain active throughout the whole year. Our social media post engagement for the Summit amounts to more than 5.000 people.


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1.4 .The Bureaucracy Index for Macedonia calculated for the first time: Proposing measures for reducing the bureaucratic burden on Macedonian businesses Enterprises are the basic cell of the economy, and the state, thus state regulation should give ‘oxygen’ and necessary conditions for it to develop independently, instead of suffocating and limiting it. The project ‘Towards Reducing the Bureaucratic Burden’* aims to measure the bureaucratic burden on Macedonian companies and propose measures and reforms for reducing it. During the International Bureaucracy Day, the methodology for calculating the Bureaucracy Index for the Republic of N. Macedonia was publicly presented for the first time. The event featured Nikica Mojsoska Blazhevski, CEO of Macedonia2025, Fatmir Bytyqi, Deputy Prime Minister in Charge of Economic Affairs, Economic Sectors and Investments at the Government of the Republic of N. Macedonia, Sasho Klekovski, Analyst and Expert Associate and Filip Ivanovski, Managing Director of PAKOMAK as speakers. They all gave a personal overview of the topic and useful recommendations for policymakers. The “Bureaucracy Index” is a simple and transparent quantification of the term ”red tape”, which is mentioned in the media every day, but rarely in any quantitative terms. Globally, there are a variety of indexes and competitiveness rankings methods that comprehensively assess the quality of law enforcement, infrastructure and tax law from a business environment perspective. The Bureaucracy Index was established in 2016 by the Institute of Economic and Social Studies (INESS) in Slovakia. The Index indicates that one enterprise in Macedonia spends 154 hours and goes through 45 procedures and steps per year, to be fully compliant with the domestic legislation. Short, fast, and fair administrative procedures and requirements are the basis for a favorable business environment that provides conditions for the establishment and rapid growth of enterprises. Thereby, the enterprises in N. Macedonia face the least bureaucracy among the countries where the Index is calculated, which is in line with the findings of the Doing Business report. For

example, an enterprise in Slovakia spends 240 hours per year, Italy – 312 hours, and Spain up to 370 hours. We are grateful that through the partnership with Civica Mobilitas, INESS Slovakia and Friedrich Naumann Foundation, regional office for Central Europe and the Baltic Stateswe will contribute to the improvement of the business environment with a concrete plan for reducing the bureaucratic burden, in cooperation with the business sector and the state institutions. Through this project, Macedonia2025 strengthens its activities and programs for improving the competitiveness and growth of Macedonian companies. This Index is calculated for several EU member states, such as Slovakia, the Czech Republic, Italy, Spain and Lithuania. Serbia and other countries in the region are expected to join next year. In the next phase of the project, consultations will be conducted with representatives of businesses and state institutions, in order to prepare a concrete plan and proposals for reducing bureaucratic procedures and costs for enterprises. * The project is supported by Civica Mobilitas. Civica Mobilitas is a project of the Swiss Agency for Development and Cooperation (SDC) implemented by NIRAS from Denmark, the Macedonian Center for International Cooperation (MCIC) and the Swedish Institute for Public Administration (SIPU).

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1.5. International growth support for all entrepreneurs: Interactive workshop on the EIT Digital Venture Program 60 +attendees Supporting the steady development of entrepreneurs, start-up companies and growth in foreign markets is one of Macedonia2025’s main strategic pillars. The interactive workshop on the EIT Digital Venture Program was an excellent opportunity for all Macedonian entrepreneurs with deep tech business concepts to become better acquainted with the program’s specifics and motivated to apply for international growth support. Numerous successful Macedonian entrepreneurs, business owners, startup community representatives and students have shown great interest in the EIT Digital programs presented by Jasmina Popovska, Arise Country Lead at EIT Digital. The EIT Digital Venture program offers financial assistance of up to EUR 15,000, support in developing minimum viable product, establishing deep tech venture, getting business development help from top international experts, and joining Europe’s leading innovation ecosystem. The workshop was organized together with our partners from Startup Macedonia.

organization driving Europe’s digital transformation. Its way of working embodies the future of innovation through a pan-European ecosystem of over 200 top European corporations, SMEs, startups, universities and research institutes, where students, researchers, engineers, business developers and entrepreneurs collaborate in an open innovation setting. This panEuropean ecosystem is located in Amsterdam, Berlin, Braga, Budapest, Brussels, Eindhoven, Edinburgh, Helsinki, London, Madrid, Milano, Munich, Nice, Paris, Rennes, Stockholm, Trento, and San Francisco.

EIT Digital is a leading European digital innovation and entrepreneurial education

1.6. Accelerated knowledge transfer to domestic businesses through our MK2025 Growth Webinar Series 8 webinars/ 1200+ registered participants In these difficult times as Covid-19 filled with uncertainly, we wanted to support Macedonian companies to overcome their challenges and come out of the crisis stronger, with enhanced professional skills and expertise. That is why we began to organize a series of online workshops/ training sessions titled ‘MK2025 Growth Series: Utilizing Diaspora’s Know-How for Support of Domestic Business’. The aim was to bring about an accelerated knowledge transfer to domestic businesses and/or employees from our renowned diaspora members and share experiences on how world-renowned companies cope with the ongoing global crisis. We organized a total of 8 webinars with ‘Best Practices Related to Operations Exposure and Risk Mitigation: Lessons Learned from one of the Most Affected Industries – Aptiv’, Borijan Borozanov, Plant Manager/Managing Director of Aptiv Services Macedonia

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1000+ registered participants and 800+ views on our YouTube channel. These were the topics covered:

'Leadership and People Engagement in Times of Crisis', Biljana Nikolova, PhD - Customer Executive at National Australia Bank ‘Health Control Global – MSc.

and Wellbeing: Taking of Your Life in Times of Crisis’, Lily Stojanovska PhD. Professor at United

Arab Emirates University, UAE and Emeritus Professor at Victoria University, Melbourne, Australia. 'Developing Innovation Capability through an Entrepreneurial Mindset', Professor Milé Terziovski, PhD (Melb), MBA, MEng (Hons), BEng (Hons), Dip. Mgmt.


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‘Consumer Expectations and Behavioral Marketing during Crisis’, Prof. Dr. Ilijana Petrovska, Head of Training & Development at Stenden University Qatar. Moderated by Dimitar Kovacevski, Associate Professor and Head of the Marketing Department at the School of Business Economics and Management at UACS. 'When to fight and when not to fight? The role of strategic forbearance in competitive rivalry', Goce Andrevski, PhD, Associate

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Professor and Distinguished Faculty Fellow of Strategy at Smith School of Business, Queen’s University. Moderated by Zoran Jovanovski, Advisor to the Management Board of the Economic Chamber of Macedonia. ‘Leadership Challenges and Opportunities during the Current Pandemic Crisis’, Mike Zafirovski, Co-Founder and Board Member at Macedonia2025, Founder and President of the Zaf Group. Мoderated by Marta Naumovska

Grnarova, Owner and General Manager of Zavar Company. ‘Entrepreneurism – Do You Have What It Takes?’, John I. Bitove, Chairman & CEO of Obelysk, CoFounder and Board Member at Macedonia2025 and Chris Pavlovski, Founder & CEO at Rumble Inc., Board Member at Macedonia2025. Moderated by Marta Arsovska Tomovska, Advisor to the Prime Minister at the Government of the Republic of Serbia.

1.7. Supporting and mentoring entrepreneurs in developing business applications related to climate change: O2 Challenge 2 – Action for Climate Positive Change 5 Kellogg Alumni mentors, 1 Kellogg Alumni part of the selection committee Given that climate change is a global problem, there is a need for additional effort and attention as to promote adaptation of positive examples and best practices and support the development of concrete measures to overcome these problems through innovative ideas and actions, thus stimulating resolution of the problem. The Fund for Innovations and Technology Development organized ‘O2 Challenge 2 – Action for Climate Positive Change’, which was intended for micro, small and medium-sized companies seeking to develop an innovative product, service or process, independently or in cooperation with an institution from the country or the region of the Western Balkans (WB6).

behavior, were engaged as mentors for the challenge. In this way, Macedonia2025 supports start-ups and young entrepreneurs, thus improving entrepreneurship in the country. What is more, three finalists from the ‘O2 Challenge 2 – Action for Climate Positive Change’, were winners of the Special Award by Macedonia 2025. These were the three start-ups: CSP TECH - Fotonika (Skopje), Bionovel Plus Doo - Egg shell waste management and production of food supplements (Skopje) and Agro Solar - Solar heater and air purifier (Shtip). The

Macedonia2025 provided mentoring program/ assistance to participants in preparing of their applications. Ten mentors from Macedonia2025’s Kellogg Alumni, Council of Experts and Ambassador Clubnetworks, who work in the field of climate change, environment, sustainability, business development and innovation, market and consumer

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special award consisted of free consulting services by renowned Canadian experts as part of the Bitove Family Entrepreneurship Program in partnership with CESO SACO Canada. Aleksandar Dimeski, Frosina Meshkova and Filip Andonovski expressed great satisfaction for the opportunity to gain top mentoring by foreign experts who will offer a different perspective for the development of their businesses. The regional

public call ‘O2 Challenge 2 - Action for Climate Positive Change’ was implemented in cooperation with UNDP MK, the Ministry for Environment and Physical Planning, Macedonia 2025, the Embassy of Israel, Kayama -the Center for Sustainable Development of Israel and H.E. the Ambassador Dan Oryan, together with other partner organizations.

The winners of Macedonia2025 Special Award within ‘O2 Challenge 2’

Free consulting services by renowned Canadian experts as part of the Bitove Family Entrepreneurship Program in partnership with CESO SACO Canada

CSP TECH - Fotonika (Skopje) Bionovel Plus Doo (Skopje) Agro Solar (Shtip)

1.8. Supporting the online business community: Gold sponsor at the Startup Weekend Skopje – Covid-19 Edition The first-of-its-kind Online Startup Weekend Skopje focused on the possible solutions to the emerging challenges and consequences from the Covid-19 pandemic. Numerous innovators, startup representatives and all those with a passion to tackle societal issues joined and contributed. The event provided a unique opportunity to participants by enabling them to form a team, get a full expert support, and develop the idea in just 54 hours. Aspiring entrepreneurs, students and enthusiasts from all over the country attended joined the initiative as attendees. Macedonia2025 was also engaged in the online

business community by being one of the gold sponsors to the competition. Our Chief Executive Officer – Nikica Mojsoska Blazhevski was one of the judges to the event, whereas two Ambassadors Club members – Mitko Andonov and Alan Castillo were in the role of mentors of the teams. The three winning ideas were ‘Ways2Help’ (first place), ‘Neighbors’ (second place) and ‘QR Crew’ (third place). Congratulations to the winning teams and much success in the future! We look forward to further supporting these great business ideas. Solveo, a strategic design and innovation consultancy based in Skopje, successfully organized the event.

1.9. Advocacy for Equivalency of EU/US certificates for organic production of Macedonian products: Increasing competitiveness and boosting product export Macedonia2025 took the leading role in advocacy for Equivalency of EU/US certificates for organic production of Macedonian products. The main point for the entire organic production eco-system in North Macedonia was initiated by Macedonian producers of organic products, who are exporters for both the EU and US market. Therefore, in the past several months, Macedonia2025 has been working on developing arguments and building a case for Petition for Equivalence and recognition of EU certificates for USDA Organic certificates for Macedonian products. The main goal of the Petition is to reduce the unnecessary certification costs for Macedonian organic producers, thus increasing their competitiveness and boosting exports to the EU and US market. We are thrilled that we managed to gather the most relevant institutions and actors in this area around the Petition. These include: Ministry of Agriculture, Forestry and Water Economy in North Macedonia, University ‘Ss. Cyril and Methodius’ Skopje, Faculty ANNUAL REPORT 2020

of Agricultural Sciences and Food; Companies with Organic food production: Alkaloid and Seed of Life and Chamber of Organic Producers with over 150 members. This in itself shows the importance of the issue and the potential positive effect to the sector. By the end of 2020, the Petition for Equivalence and recognition of EU certificates for USDA Organic certificates for Macedonian products was officially submitted to the Ministry of agriculture, forestry and water economy and by Ministry of foreign affairs (Directorate for economic and public diplomacy) will be convey through official diplomatic correspondence as Petition to USDA. We are staying in the following period fully committed to this issue.

Online Startup Weekend Skopje Winning Ideas 1st place: Ways2Help 2nd place: Neighbors 3rd place: QR Crew


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2. ACCELERATE LEADERSHIP DEVELOPMENT AND SUPPORT YOUNG TALENTS

Macedonia2025 was also affected by the changing circumstances as a result of the situation with the Covid-19 pandemic. This applies to our widely known leadership development programs – Zafirovski Executive Education Program (Kellogg School of Management), Executive Study Program in Toronto (Schulich School of Business) and the Leader Project (Richard Ivey School of Business), that were all postponed for 2021. During the first quarter, we conducted the evaluation and selection of candidates for the Zafirovski Executive Education Program, whereby nine scholarships were awarded – 5 scholarships for the Executive Development Program (EDP) and 4 scholarships for the Enterprise Leadership Program (ELP). Over the course of the year, the newly selected candidates have been engaged in the working webinar for formalization of the Kellogg Alumni Club and the Zafirovski Executive Education Program 2.0. Moreover, the same procedure applied to the Executive Study Program in Toronto. 4 scholarships were awarded for this program. Two alumni were engaged in the evaluation process, together with some of the Ambassadors Club members. When it comes to the Leader Project, the promotion started, however the Richard Ivery School of Business, due to the Covid-19 crisis, postponed the program. We are currently undergoing a process of intensive communication with the Richard Ivey School of Business and signed a Memorandum of Cooperation for 2021. Congratulations to the selected candidates! We are looking forward to all programs being successfully delivered in 2021!

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2.1. Scholarships awarded to the best young talent – THE LEADERS OF TOMORROW! 10 scholarships awarded to talented youth During 2020, we have selected the 10 best young talents within the Support Fund for Talented Students ‘Talents Today – Leaders Tomorrow’. The Fund continues to provide financial means as support for talented youth from the country. With this project, we help talented youths reach their potential and lift the financial constraints on their path towards progress and success. We established the Fund with tremendous support from our Ambassadors Club members, companies, individuals and Rotary Club Skopje Centar. We received 45 applications received in total. The financial support for each candidate amounts to 60 000 denars (app 1,000 EUR) per year (June 2020 – June 2021, except July and August). These scholarships provide the selected ten students with the opportunity for continuous talent and skills development through mentoring, participation in international competitions, trainings, and internships in prominent companies. Our heartfelt congratulations go to these ten amazing individuals: Alma Usein, Angela Busheska, Angela Zdravkovska, David Atanasoski, David Lazaroski, Dimitar Dzorlev, Filip Jovanov, Marko Ingilizov, Martin Dinev, and Sibela Mamudoska. We would like to thank our selection committee that consisted of both internal and external organizational members, those being - Angelka Peeva Laurencic – Managing Director of Image PR, Maja Canacevic - Professional Musician at the Macedonian Philharmonic Orchestra and Marta Arsovska Tomovska - Advisor to the Prime Minister at the Government of the Republic of Serbia. Our sincerest gratitude to all Ambassadors Club members, Rotary Club Skopje Centar and other corporate, individual donors who donated towards the Fund, thus enabling the development of these young talents – future leaders of Macedonia. In this way, Macedonia2025 actively contributes to a more inclusive society and realizes its mission – supporting the economic development of the country and improving the living standard of the citizens. We would warmly welcome new donations for the program ,and we look forward to expanding the support from only monetary to also include technical equipment and other forms of assistance. We are so proud of our young talents’ wonderful achievements and their passion for excellence. Among our talents we have:

An exceptional talent in mathematics and physics, who received Gold Honor at the International Youth Math Challenge and won 1st prize at the International Astronomy and Astrophysics Competition. A recipient of the President Pendarovski State Recognition ‘Successful Youth’ in the category Young Talent intended for high school students in Macedonia. A nine-time state champion in robotics, programming and informatics, who designed the Smart Wheelchair – which can be controlled by eye movement.

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2.2. Macedonia2025 representatives provided a virtual career counselling to the high-school students in Macedonia Professional orientation is important for properly managing future career and choices, especially among youth. Students must understand their own interests, skills, competencies and aspirations. In this regard, the traditional conference for professional orientation organized by the Rotary Club ‘Kamen Most – Skopje’, in cooperation with NOVA International Schools was virtually held for the first time due to the Covid-19 pandemic, under the motto ‘My future, my decision’. The event targeted all high-school students in Macedonia. Its aim was to support young and talented people in realizing their full potential, as well as counsel them in choosing their future professional careers. Nevenka Dimitrova, Member of Macedonia2025 Board of Directors, Adjunct Professor at the New York Medical College and Nikica Mojsoska Blazhevski, CEO of Macedonia2025 were eminent speakers at the online conference titled ‘My Career, My Decision’. We are extremely happy and proud that our organizational representatives volunteered their time, energy, knowledge and experience for helping the youngest members of the community in making the right choices for the future. More than 900 high school students have attended this traditional event over the past eight years. High-school students have assessed it as successful and extremely useful in determining their professional path.

2.3. Improving the quality of primary education across the Western Balkans through critical thinking, problem solving and coding skills for students: London School of Economics (LSE) and British Council Macedonia2025 is partnering with the British Council and London School of Economics (LSE) in implementation of the project titled ‘21st Century Schools Programme’. The British Council is the main partner in this project, which aims to equip students aged 10-15 years across the Western Balkan region with critical thinking, problem solving, and ICT skills. Apart from learning critical thinking and problem solving, children learn practical programming and have the opportunity to practice their skills through physical computing. To compete in the global job market, skills such as problem solving, critical thinking, digital literacy and creativity are key to success. As part of the program, each school in the Western Balkans is provided with a number of micro:bit devices – pocket sized computers which children can programme onto and use across subjects to solve every day problems. It allows students to learn in a fun, interactive and innovative way. The three-year education programme is designed and implemented by the British Council and funded by the UK Government. Macedonia2025, together with LSE, is responsible for the evaluation of the impact of this Programme, regarding the improvement of the learning process and the development of CTPS skills of young people. For that purpose, we are providing a baseline and ex-post analysis/report through conducting in-depth-interviews and questionnaires with the relevant stakeholders, i.e. policy makers, school leaders, teachers and pupils. The implementation of the program is done in cycles - thus far, Macedonia2025 successfully completed the evaluation of two cycles , and it will continue to evaluate the British Council’s ’21 Century Schools Programme’ until 2021, for one more cycle.

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2.4. Raising awareness about innovations and coding among youth in Macedonia: Special event with President Pendarovski The most profitable investment is the investment in education. Young scientists, engineers and innovators are the backbone of the development of any economy. Proper conditions need to be developed for young professionals to thrive in education, institutions and companies. President Stevo Pendarovski participated at the hybrid/ virtual Macedonia 2025 Summit at the panel titled ‘The President and Successful Youth: Innovation and Coding’. As President Pendarovski highlighted, the Macedonia 2025 Summit is a contribution to strengthening the partnership between state, science, business community and civil society. Three beneficiaries of the Support Fund for Talented Students ‘Talents Today, Leaders Tomorrow’ and three teams from the British Council’s ’21 Century Schools Programme’ presented their innovative ideas. It is in this way that Macedonia2025 encourages youth scientific and research work. During the Summit, Macedonia2025 proudly announced the brand new program Ohrid High-Tech Excellence Camp (Coding and Robotics Diaspora Camp) whose aim is to boost the high-tech skills among young people and help establish connections and networks between young Macedonians living in North Macedonia and young diaspora members. Other goals include strengthening the connection of young diaspora members with their homeland, developing their sense of giving back to homeland/community, as well as promoting Macedonian culture and language in the diaspora. The program will be implemented under the Patronage of the President of North Macedonia H.E. Stevo Pendarovski. Other supporters of the program are the Chamber of Commerce for Information and Communication Technologies – MASIT (program support) and Ohrid Summer Festival (cultural promotion). Additional donors are welcomed to support the program.

2.5. Supporting youth leadership and engagement: Partners to the newly established Presidential Center for Political Education Living in a democratic political order is a privilege that is still inaccessible to billions of people around the world. However, democracy cannot survive if we do not invest in building democratic awareness, educating about democratic procedures and values, and civic tolerance and reconciliation. Guided by the vision of strengthening democratic political values, promotion and protection of human rights and freedoms, political pluralism, mutual tolerance, unity and solidarity, with the decision of President Stevo Pendarovski, a Presidential Center for Political Education was established. Macedonia 2025 representative is one of the members of the Program Council together with other foundations and associations – Friedrich Ebert Foundation – branch in Skopje, the Westminster Foundation for Democracy, branch office in the Republic of North Macedonia, the Konrad Adenauer Foundation, branch in Skopje, the National Democratic Institute for International Affairs (NDI), office in North Macedonia and the International Republican Institute (IRI). The aim is to stimulate young people’s interest in politics and to motivate them to get involved, better understand and practice politics in the best possible way. An inaugural event was held, where the CEO of ANNUAL REPORT 2020


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Macedonia2025 also gave an inspiring speech. At the inaugural event for the Presidential Center for Political Education, a debate was алсо held on “The Future of Democracy – Young People in Politics and Society”, which was attended by young people from the civil sector. In the following period, educational events are planned, debates on important socialeconomic issues, scientific conferences, expert discussions, as well as a School of Politics with eminent lecturers and coaches from the country and abroad. We believe that the work of the Center will contribute to the promotion of culture of dialogue and will influence the reform of education through comprehensive inclusion of political education in our formal and informal education system.

2.6. Helping the youth in Macedonia have a better chance for success: Online donation campaign ‘No Child Left Offline’ Targeted 10,000 CAD$ Planned 40 tablets Education is one of the most serious investments for a better future and a basis for community growth and development. We represent a platform for all Macedonians around the globe to unite, help and join our efforts, thus triggering positive changes in the society. It is in this spirit that Macedonia2025 decided to help the youth in Macedonia have a better chance for success. Our supporters around the globe helped us in improving opportunities for citizens in the country. The Covid-19 pandemic has accelerated the need for connectivity and digitalization more than ever. 8000 kids in Macedonia do not have computers or access to Internet. Though our online fundraising campaign ‘No Child Left Offline’ we managed to successfully collect funds in the amount of 12,000 CAD $, overshooting our target. With these funds we plan to supply approximately 40 tablets to those most in need, in coordination with the Ministry of Education and Science. It is in this way that we helped children in Macedonia stay connected and able to continue learning! We made a huge difference by providing computers and internet access to young people. Our heartfelt thanks to all people who donated towards this cause and demonstrated a common vision in helping the youth in our country.

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2.7. Engaging our education and leadership development programs participants: High-impact Alumni activities We take great pride in continuously engaging our education and leadership development programs alumni. Alumni are encouraged to demonstrate initiative and take part in various high-impact activities. Over the course of 2020, we organized several events with 70% participation. »

1 tête-à-tête meeting with Macedonia2025 Kellogg Alumni and interested candidates for Kellogg Programs (Zafirovski Executive Education Program) getting informed about questions / dilemmas related to the program concept, how to apply, selection, as well as recommendations on how to better prepare and participate in the Program.

»

1 online meeting with Special Guest - Ms. Dusa Barbara Vidanovic - Lecturer and Diplomatic Protocol Consultant

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1 Interview Session on the Hybrid Summit 2020 was organized and evaluated by Kellogg Alumni

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Online workshop for formalizing the Kellogg Alumni Club - procedures and steps

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Book promotion “Your 168 – Finding Purpose and Satisfaction in a Value-based Life” and discussion with Kellogg Alumni, Harry Kraemer and Mike Zafirovski

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5 online meetings of the Kellogg Alumni Presidency Body

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‘O2 challenge 2’ mentorship on-line program (5 Kellogg Alumni mentors) + 1 Kellogg Alumni as member of the FITD selection committee

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1 online meeting of the Kellogg Alumni Presidency body with initiative for officialization and registration of the Zafirovski Kellogg Alumni Club in Macedonia

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Submitted request to Kellogg Alumni Administration for formalization of the Zafirovski Kellogg Alumni Club in Macedonia

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Start developing concept idea for elevating the Zafirovski Education Executive Program 2.0

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3. BUILD STRONG PARTNERSHIPS AND LINKAGES WORLDWIDE

3.1. Increased Diaspora Engagement and Growing Body of Supporters: Central Park Picnic in New York 700 +new partnerships One of our main goals is to connect professional diaspora around the globe to support the economic growth of Macedonia. Macedonia2025 is always committed to developing a wide network of business professionals with Macedonian origin that can help the country prosper. Over the course of 2020, our Board Member – Nevenka Dimitrova, organized an informal gathering – Macedonia 2025 Central Park Picnic in New York. The aim of the event was to engage our diaspora based in New York, inform them about the mission, vision of the organization, the current, and future activities. The attendees were also greatly inspired for establishing new mutual initiatives, especially connected to cultural and educational activities for kids, as well as support for young professionals and aspiring entrepreneurs. We believe that in this way Macedonia2025 provides the diaspora numerous opportunities to strengthen and improve linkages worldwide, thus contributing to the economic and democratic development of the country. Throughout 2020, Macedonia2025 worked on increasing its diaspora engagement by establishing a growing body of supporters and friends among Macedonian expatriates, mainly digitally on LinkedIn. We are proud to say that we established over 700 partnerships on this platform, whereby marking a 25% increase in the number of follows by renowned

diaspora representatives from USA, Australia, Germany, Austria. We also welcomed several new members in our membership bodies - Ambassadors Club (AC) and Council of Experts (CE). Members of the Macedonian Diaspora also attended the Hybrid/Virtual Macedonia2025 Summit and participated in the formal

and informal B2B Summit meetings, which intended to provide support and networking opportunities for Macedonian businesses or startups. Macedonia2025 would like to extend sincere gratitude to all members for being engaged, involved and supporting the mission of Macedonia2025.

3.2. Macedonia2025 Intensifies its International Cooperation: Memoranda of Cooperation (MoC) with INESS Slovakia and LinkAcross We strongly believe in partnerships. Partnerships, domestic and international, are key for increasing our impact and reaching our vision for Macedonia to become the leading economy and most prosperous country in the region.

On that note, Macedonia2025 signed a Memorandum of Cooperation with INESS - Institute of Economic and Social Studies, which is a non-governmental and apolitical civic association founded by concerned individuals and financed by private donations and

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revenues from its own activities. As an independent think tank, INESS monitors the functioning and financing of the public sector, evaluates the effects of legislative changes on the economy and society and comments on current economic and social issues. The joint cooperation with Macedonia2025 is in the field of addressing the opportunities and exchanging experiences between Slovakia and Macedonia, in order to contribute to improving the business environment by reducing the bureaucratic burden on companies and initiating reforms in that direction. In the upcoming period, the two institutions will establish intensive cooperation to share experiences for the project ‘Towards Reducing the Bureaucracy Burden (Bureaucracy Index)’, whose aim is to develop methodology and recommendations for reducing the bureaucratic burden on MSMEs. The ‘Bureaucracy Index’ was founded and designed by INESS in 2016. For the introduction and calculation of the ‘Bureaucracy Index’ in our country, as part of a larger scope Project, Macedonia2025 won an action grant by Civica Mobilitas.

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a Memorandum of Cooperation with LinkAcross, an association that believes that development challenges must be addressed at a values-level that gets to the ‘heart’ of the matter with business, healthcare services, and community initiatives that are consistently led by positive, life-giving values will result in transformed lives and greater flourishing of society. The MoC was mainly referring towards the cooperation related to GrowBiz, which is an exciting new initiative implemented by LinkAcross and co-funded by USAID’s Economic Development, Governance and Enterprise Growth Project to help tourism, agriculture, or manufacturing business in North Macedonia or Albania grow and increase sales. The primary goal of this program is to help create and implement a business growth plan.

What is more, we also signed

3.3. Promoting our Successful Young Diaspora Members: Youth Diaspora Voices Last year we developed a new online campaign called ‘Youth Diaspora Voices’. This initiative promotes the successful Macedonian Youth Diaspora worldwide and gives them an opportunity to strengthen their linkages with the homeland. It highlights our young diaspora members’ achievements and success stories that serve as a positive promotion of our country. The campaign also aims to inspire other young people of Macedonian origin to be better acquainted with our organization and the different ways of future involvement. Some of the participants include

» Kristina Nedelkova, IFC World Bank Group Professional with remarkable academic achievements » Stefan Petrevski, Mathematics student at the University of Oxford in the United Kingdom, awarded with first-class honors » Ivan Lukaroski, Successful real estate professional living in Ontario, Canada » Tea Pesheva, Successful professional working at the Ministry of Environment, Conservation and Parks in Canada » Yavuz Selim Topbas, Exceptional individual with numerous worthwhile experiences and achievements

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4. ADVOCATE TO IMPROVE THE MACEDONIAN BUSINESS ENVIRONMENT

4.1. Macedonia2025 Winner of the 2020 Small Business Awards for Best Leadership & Economic Support Organization in Southeast Europe

Following our recent nomination for the 2020 Small Business Awards, the judging panel has made their final decisions and it brings us great pleasure to inform that Macedonia 2025 has been awarded – Best Leadership & Economic Support Organization in South East Europe. Each year, Corporate Vision Magazine proudly seeks out the very best that the small business community has to offer on a global basis. For the 2020 Small Business Awards they left no stone unturned when establishing those who truly represent the sheer determination and dedication it takes to establish, run, and grow a small business successfully! What is so special about a small business or organization, is that their success is not measured by size, number of employees… not even annual turnover! Instead, its success is demonstrated through innovative

products and services, an exemplary reputation within their industry and client/customer satisfaction across the board! At this point, we would like to thank all our sponsors, organizational members and corporate partners who make this work possible. We will remain dedicated to our main strategic objectives of improving the competitiveness of Macedonian companies, strengthening the linkages with the professional diaspora, and accelerating leadership development. We will also acquire stronger voice in providing relevant input to the Macedonian policy makers with our cutting-edge research and analysis activities.

Wholeheartedly, thank you!

4.2. Analyses on the impact of Covid-19 crisis on companies in Macedonia: Policy Contributions As elsewhere, Macedonian economy was significantly affected by the ongoing health crisis and the restrictions imposed on economic activities and the movement of people. While it is still difficult to assess the effects of the crisis on the economy, it is clear that major interventions by governments will be necessary to maintain at least a certain level of economic activity, avoiding mass layoffs and attack on the social systems. The Government of the Republic of Macedonia ANNUAL REPORT 2020


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has also undertaken certain anti-crisis measures, in response to the shocks on the Macedonian economy and businesses. So far, the Government announced and implemented four anti-crisis packages, with the fifth one being currently prepared in consultation with the business community. Being a constructive partner to the Government and businesses in the country, Macedonia2025 prepared and published a series of policy contributions named ‘Covid-19 Anti-Crisis Measures’. These contributions came at a right timing, at the outset of the Covid-19 and

aimed at contributing to the comparative knowledge in the country, among policymakers and businesses on the policy responses around the globe, with a focus on EU countries. In addition, the policy contributions provided an assessment of the current situation in the country and recommendations to policy makers in Macedonia on what the “optimal” response should be. We believe that these policy contributions assisted the government in designing better and more effective measures for overcoming the current economic slowdown.

4.3. Supporting the Macedonian healthcare system through our online donation campaign for frontline healthcare workers 9.811$ raised 1.750 KN95 masks donated 1.200 visor masks donated 700 liters of disinfectants donated 20 intubation boxes donated In order to help protect the medical personnel in the country, in the period April-May, Macedonia2025 organized an online donation campaign entitled ‘Let us Unite to Support Macedonian Frontline Healthcare Workers’. The number of people infected with the coronavirus in Macedonia marked an exponential growth. Out of the total number of people infected, it was estimated that around 12% are health-care workers. As part of the fundraising campaign, Macedonia2025 managed to raise 9.811 $ and donate 1,750 KN95 masks, 20 intubation boxes, 1,200 visor masks and 700 liters of disinfectants to those most in need. As part of the campaign, 20 intubation boxes were donated to DPPU Honor and 700 liters of disinfectants to PHI Health Center Skopje. 1750 KN95 protective masks were delivered to several health institutions across the country, including: PHI Health Center Kumanovo (320), Polyclinic Idadija (130), City General Hospital 8th September (450), Private Practice Dr. Hristina (110), PHI Health Center Skopje (30), Polyclinic Bucharest(50), PHI Dr. Maer (30), Association of Residents and Junior Doctors (250), PHI UC Toaricec (120), PHI Specialized Hospital for Geriatric and Palliative Medicine ‘13th November’ - Skopje (30), Polyclinic Gjorce Petrov (130) and PHI University Clinic for Radiotherapy and Oncology (100). We also raised funds for 1,200 visors, which were donated to the Association of Residents and Junior Doctors.

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Through the support of our members, associates, individual partners and conscientious citizens, we have contributed to the safety of those who risk their lives for us on a daily basis. We once again express our gratitude to all who donated as part of the online fundraising campaign. The lack of protective health equipment is still significant, and the recent jump in the number of positive cases shows a high need for increased conscientious civic participation. Through this activity, Macedonia2025 realizes one of its strategic goals, which is to represent the ideals of a transparent, democratic and inclusive society, which is good for the citizens, economic development and the country.


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4.4. Improved and updated version of the Macedonia2025 Country Dashboard The idea behind the Dashboard was born at one of Macedonia2025 annual Board meetings when thinking about our purpose and mission, a simple question was raised – ‘What do we mean by a ‘stronger’ nation?’ And can we prepare a related strategic plan?’ That is why, complementary to our programs, partnerships and initiatives, we led the effort for establishing the Dashboard, with the aim of monitoring the progress towards a ‘stronger nation’, and consequently positively influencing the government and other stakeholders through peer countries’ experiences and best practices. Our efforts were also professionally supported by McKinsey & Company, which provided a synthesis of country dashboard best practices and peer country dashboard examples. After 5 years of using the Dashboard, in 2020 we conducted a process of revision, with an aim to make it even more relevant and in line with the recent developments and the anticipated future of the country (mainly the EU accession). The revision consisted of two main processes: i) careful revision of the most meaningful economic and growth indicators while still aiming at as shortest possible list of indicators and keeping the simplicity, and ii) rethinking which are the ‘true’ peer countries of Macedonia. The process was conducted by the Growth Committee of Macedonia2025, which involves top-notch domestic and foreign experts. Slight changes were made in the indicators as to reflect changing economic and social environment and key

areas of focus and in need of improvement. Regarding the peer countries, a list of 19 peer ranking countries was developed, which are used as an anchor to assess the country’s progress. They are divided in two subgroups. The first group, the so-called ‘Aspirational Peers’, are the ‘New EU Member States’: Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovenia and Slovakia. The second group of countries is the so-called ‘Structural Peers’, i.e. the Western Balkan countries comprised of Albania, Bosnia and Herzegovina, Kosovo, Montenegro and Serbia. The Country Dashboard is fully aligned with our mission and strategic objectives. Our vision is to assist the creation of a prosperous economic climate and a ‘stronger nation’ that will improve opportunities for citizens, domestic companies and foreign investors. We seek to shape Macedonia’s future by promoting sustainable economic growth that will improve opportunities for citizens, companies, and foreign investors. With that thought in mind, we have started an initiative to develop a more interactive and an in-depth approach for exploring the renewed Dashboard, alongside an additional explanation and in-depth metrics for each constituent part of the interactive platform. Stay tuned!

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4.5. Macedonia2025’s Platform for Prosperous Future discussed with leading policymakers Education, human capital, innovations, investments, improvement of the business environment, democratic society, fight against corruption and better environment were the main topics of the virtual meeting with Prime Minister Zaev and members of the Macedonia2025 Board of Directors. These pillars constitute the foundations of our newly established Platform for Prosperous Future. The meeting discussed the importance of long-term economic development and a predictable business environment, as well as uniting all stakeholders in terms of key priorities that should improve the country's future. The meeting featured the Deputy Prime Minister in charge of Economic Affairs, Fatmir Bytyqi, the Chairwoman of the Board, Vera Stavrof, Mike Zafirovski, Co-founder and Board Member at Macedonia2025 and Nikica Mojsoska Blazevski, CEO of Macedonia2025. The Platform has also been discussed

with the leader of the major opposition party VMRODPMNE, Mr. Hristijan Mickovski, as well as with the U.S. Ambassador to Macedonia, H.E. Ambassador Byrnes. Macedonia2025 will continue its efforts in 2021 to bring together all stakeholders in Macedonia and to foster alignment on the key priorities for long-term growth, i.e. prosperous future.

4.6. Authoring High-Quality Analyses, Research Articles and Leading Publications High-Quality Analyses

Research Articles

Over the course of 2020 we prepared several highquality economic analysis, which are part of our regular activities, with quarterly dynamics. The quarterly Country Dashboard provides analysis on those indicators for which quarterly data are available, this mainly being macroeconomic indicators. The Dashboard provides a relatively simple, but informative view on the economic conditions and progress made over time, by them being put in a comparative perspective.

We strive to raise our voice and to advocate for positive changes in areas, which we believe are crucial for the economic prosperity of Macedonia. In this respect, in 2020 our organization developed several research articles on the following topics related to the core

This high-quality economic analysis were also featured in one of the most prominent monthly business magazines in the country ‘Economy & Business’. The magazine offers top quality analyses on domestic and global events, as well as forecasts for the future. » Country Dashboard – 2019 Q4 Update » Quarterly Economic Monitor – Projections Q1 2020 » Economic Growth and Employment in Q1, 2020 » Quarterly Economic Monitor – Projections Q2 2020 » Country Dashboard Q1 2020 » Quarterly Economic Monitor – Projections Q3 2020 (Macedonia2025 Accurate Forecast: The Decline in GDP in Q3 2020 will be between 4.5% and 6.5%) » Country Dashboard Q3 2020

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challenges of Macedonia: » Macedonia’s Ranking in World Banks’ Doing Business Reports 2019 – 2020 » Export Dynamics and Opportunities for Export Growth » The EU and Western Balkan Economies in the second quarter of 2020 – In the Midst of the Biggest Economic Crisis » TIMSS Results 2019 Analysis of Macedonia vs. Comparative Countries

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» Barriers for Access to Finance for MSMEs in North Macedonia » COVID-19 and the World of Work: Rapid Assessment of the Employment Impacts and Policy Responses. North Macedonia » The impact of the COVID-19 pandemic on enterprises in North Macedonia Policy Paper: Barriers for Access to Finance for MSMEs in North Macedonia The organization conducted an online survey, assessing the impact of Covid-19 crisis on companies in Macedonia, as well as an analysis for identifying the main reasons why access to finance remains a key challenge for companies in Macedonia, especially for MSMEs. This activity is part of the ILO’s (International Labour Organization) project titled ‘Barriers for Access to Finance of Macedonian MSMEs’. The output of this assignment was a policy paper under the same name for the Economic and Social Council with suggested actions to be discussed in the Council and be presented to the Government. COVID 19-and the World of Work :Rapid Assessment of the Employment Impacts and Policy Responses .North Macedonia The ILO Office for Central and Eastern Europe and the European Bank for Reconstruction and Development (EBRD) established a joint task force to assess the impact of the coronavirus crisis on the region’s economies. The Task Force published its Rapid Assessment Report on

the impact of COVID-19 on employment and the labor market in Macedonia. Macedonia2025 is proud to have participated and contributed to the team, which prepared the report. The Report is titled ‘COVID-19 and the World of Work: Rapid Assessment of the Employment Impacts and Policy Responses. Case of Macedonia’. The impact of the COVID-19 pandemic on enterprises in North Macedonia Macedonia2025 authored the latest report of the International Labour Organization (ILO) which assessed the impact of the Covid19 pandemic on the Macedonian business, and provides recommendations for policymakers for designing effective anti-crises measures. Main recommendations include: further increase in available liquidity loans; expansion and higher inclusion of wage subsidy schemes; acceleration of the return to normalcy in terms of services and administrative functions that institutions need to provide support for business (which may also require investments in digital solutions); as well as more diverse and decisive government measures to support the economy. Finally, companies reiterated their prepandemic requirements for better general business environment. Examples include fair, functional systems with effective public administration, rule of law, and further lowering and reassessment of the need for many parafiscal charges.

4.7. Improved Public Visibility: Macedonia2025 Annual Media Outreach We always strive for the optimal media coverage by spreading our message and results to a wider audience. We are grateful for the rising number of trusted media partners who always step forward to help spread the word about what we do by covering our events, programs and research activities. This also goes for our long-term communications partner Image PR – the first independent specialized public relations agency in the country. Thank you for your continuous support! » 500+ articles, media mentions, numerous TV and written interviews

statements,

» 20+ domestic, regional and international media partners. » Improved social media presence, reach and engagement: 21.500+ followers on social media with more than 25% growth of online brand audience (Facebook/ LinkedIn/ Twitter/ Instagram). » During 2020, our official webpage marked around 110.000 page views with 33.000+ active users. » We started reporting our results/ activities on a

monthly basis by developing the monthly newsletter ‘Macedonia2025 Monthly Digest’ thus increasing our level of continuous public information and transparency among the donors, members, partners and supporters. » We introduced a better visual representation of our economic projections and analyses by creating simple and effective infographic visuals. » Three-day live stream of this year’s Virtual/ Hybrid Macedonia2025 Summit on the Macedonian Radio Television, which boosted our audience and impact. » We increased the use and publicity of the Country Dashboard. Our Dashboard updates and Quarterly Economic Monitor analyses were published on a monthly basis at one of the most prominent business magazines in the country ‘Economy & Business’. The Dashboard was quoted 15 times in the media and discussed with leading policymakers in the country. » After 5 years of using the Dashboard, in 2020 we conducted a process of revision of the Dashboard, with an aim to make it even more relevant and in line with the recent developments and the anticipated future of the country. The updated version of the

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Dashboard is available on our website and through Microsoft PowerBI. » Macedonia2025’s CEO was a speaker at a conference titled ‘Building Bridges towards a Common Future: The Western Balkans on the Path towards the European Union’, where she presented the updated version of the Country Dashboard in front of an international audience. » Macedonia2025’s CEO was a speaker at the conference ‘Performance of the Labor Market: In between the Expectations of Employers and Job Seekers (Employees)’ » Macedonia2025’s CEO participated in several media appearances (TV debates) discussing the policy contributions and the economic effects of Covid-19.

» Hosts to the official meeting of the Sector Committee on Economy, Law and Trade within the Ministry of Education and Science for providing consultancy on the development of a National Qualifications Framework. » Hosts to the informal meeting with representatives from ‘Rotary Club Skopje Centar’ and the scholarship recipients of our Support Fund for Talented Students ‘Talents Today - Leaders Tomorrow’. » Our vision, mission, goals and results were presented to the Macedonian Diaspora through a written interview in ‘Vezilka’ magazine, which is widely read by many expatriates in Australia, USA, Canada and Germany.

» Macedonia2025’s CEO participated at the highly acclaimed TV debate show ‘Top Tema’ analyzing the economic programs of the political parties within the 2020 Macedonian parliamentary election campaigns. » Macedonia2025 signed Memoranda of Cooperation (MoC) with the following institutions and organizations: INESS Slovakia, LinkAcross, Chamber of Organic Producers » Macedonia2025 was a key partner to Emerging Europe’s debate on sustainable future relations between Emerging Europe and the United States: Towards 2030.

4.8. Positioning Macedonia2025 as a strong economic and policy partner: Strategic Plan (2021-2025) Up until now, we have witnessed the organization generating opportunities and building capacities for economic growth. Macedonia2025’s strategic plan for 2021-2025 seeks to multiply that impact, positioning Macedonia2025 as a strong economic and policy partner domestically, regionally and globally. We believe this is important not only because it reflects our organizational values, but also because we are all better off when we live in a transparent, democratic and inclusive society – good for the citizens, good for economic development and good for the country. This plan’s strong focus on building prosperous economic climate and a stronger nation, speaks loudly to our long-term mission and vision. It is also a winning proposition for Macedonia, as

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the relationships we establish through our programs and activities last long into the future. This plan spells development for Macedonia2025 perhaps most significantly that the organization will focus on reinforcing its great reputation, incorporating internal processes and standards, becoming a broker of truth and establishing strong partnerships with the domestic and diaspora business community, the Government, academia and top-notch think tanks. We are confident that this approach will position Macedonia2025 as a strong organizational body of which Macedonians all around the world can continue to be very proud. We look forward to the successes we will be able to celebrate.


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MACEDONIA2025 COUNTRY DASHBOARD: UPDATE FOR 2020

Several years after the introduction of the Country Dashboard, in 2020 we undertook a revision process to make it even more relevant in the current global and domestic economic and social context, and to better reflect the desired future of the country (mainly accession to the EU). The revision consisted of two main processes: (i) a careful review of the economic growth indicators used for monitoring progress, with the aim of keeping the list of indicators as short as possible and maintaining simplicity, and (ii) identifying the right peer countries for comparison. The Growth Committee of Macedonia2025, which is made up of experienced domestic and foreign experts, oversaw the Dashboard revision process. Minor changes were made in the indicators to reflect changes in the economic and social environment and key areas where increased focus and improvement are needed. In relation to peer countries, a ranking of 19 countries has been prepared, which is used as a starting point for assessing the country’s progress.

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I. Key Indicators of Economic Growth

Gross domestic product The COVID-19 pandemic hit the Macedonian economy after a longer period of constant, albeit moderate, growth in real GDP (since 2013). The containment measures in relation to the pandemic led to a lockdown (restaurants, education institution, tourism and transport), travel restrictions, curfews, etc., which negatively impacted economic activity. The average GDP growth in the first three quarters of 2020 was -5.8% (Graph 1). Graph 1: Real GDP growth, quarterly data for Q3 2015 – Q3 2020

Source :State Statistical Office

Government intervened in the economy (and the health system) in an attempt to mitigate the effects of the recession and to maintain a certain level of economic activity, avoiding mass layoffs and attack on the social systems. Until mid-December 2020, the Government adopted and implemented four anti-crisis packages containing 70 measures.1 The total value of the four packages was 1 billion EUR or 9.2% of GDP in 2020.2 The prolonged effects of the crisis are yet to be seen in the short to medium-term. The recovery is expected to last a longer period of time because of the systemic nature and the global reach of the pandemic on the world economies. In terms of production (Graph 2), as expected, almost all sectors recorded negative growth in 2020 (average growth for Q1-Q3). The sectors that were hit hardest were the Mining and Quarrying, Manufacturing and Trade sectors with 13.2%, 14.5% and 10.8% negative growth, respectively. The sectors which showed most resilience and adaptability to the shocks were the Agriculture and Information and Communication sectors.

1 At the time of finalising this report, the Government had announced a fifth package of measures to fight the negative impact of the COVID-19 pandemic. At that time, the fifth package was under preparation and discussions were being held with social partners and business associations. 2 The Government opened a dedicated website for the COVID-10 vaccine as well as for economic measures related to COVID-19. All measures are explained here https://vlada.mk/ekonomski-merki-COVID19.

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Graph 2: Real GDP growth rates by sector/industry Q1-Q3 2020 – production side -16% -14% -12% -10% -8% Overall growth

-6%

-4%

-2%

0%

2%

4%

6%

-5,9%

Agriculture, forestry and fishing Mining and quarrying; Manufacturing; Electricity, gas, steam and air condi�oning supply; Water supply; sewerage, waste management and remedia�on ac�vi�es Manufacturing

4,1% -13,2% -14,5%

Construc�on "Wholesale and retail trade; repair of motor vehicles and motorcycles; Transporta�on and storage; Accommoda�on and food service ac�vi�es"

-2,5% -10,8%

Informa�on and communica�on 4,0% Financial and insurance ac�vi�es

-2,5%

Real estate ac�vi�es Professional, scien�fic and technical ac�vi�es; Administra�ve and support service ac�vi�es Public administra�on and defence;compulsory social security; Educa�on; Human health and social work ac�vi�es Arts, entertainment and recrea�on; Other service ac�vi�es; Ac�vi�es of households as employers; undifferen�ated goods and services producing c�vi�es of households for own use

0,7% -2,7% -1,2% 1,8%

Source: State Statistical Office

All GDP components from expenditure side (Graph 3), show negative growth. The exception is Government spending, which increased by 11.3% in the pеriod Q1-Q3 2020, compared to the same period in 2019. This mainly stems from increased government spending in the form of stimulus packages to help businesses and households overcome the delcines in income during the Covid-19 pandemic. Graph 3: Real GDP growth rates by component Q1-Q3 2020 – expenditure side

Source: State Statistical Office

Labour market (15 to 64 years) Labor market data shows mixed results in 2020, though in general the labor market has shown some resilience to the pandemic. The employment rate in the first two quarters in 2020 was still increasing, on an annual level, but declined in Q3 2020 to 54.1% (down from 54.8% in Q3, 2019) (Graph 4). Overall, 13,800 jobs were lost on a yearly level in Q3 of 2020, or around 1.7 per cent of total employment in Q3 of 2019. The unemployment rate has been declining in the first three quarters of the year, reaching 16.7% in Q3 2020, lower than the rate of unemployment in 2019 (17.3%). This slower drop of unemployment, compared to decreased economic activity, is attributed to the time lag which is present between the slowdown of the economy and the effect of the lower economic activity on worker layoffs. The time lag is related to the overall labor legislation and protection of workers’ rights, as well as the government anti-crisis measures which preserved job losses by reducing labor costs of employers. Most

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employers reverted to shorter working hours, paid annual leave and ‘urgency leave’, rather than layoffs. Within this same time period, youth unemployment rate was also declining. The average youth unemployment rate for the period Q1-Q3 2020 was 34.7 per cent which is a decrease of 1.2 percentage points-pp compared to the same period last year, though still being very high. However, it must be noted that, in the same period, the participation rate of youth noted a decrease of 1.2 percentage points, showing that some young people decided to stay out of the labor market due to the reduced likelihood of finding a job during a pandemic. Graph 4: Unemployment and employment rates, quarterly data 2015 - 2020

Source: State Statistical Office

Labor Force Survey (LFS) data showed some positive developments for women in the labor market. More specifically, the number of jobs held by women in Q3 of 2020 increased by around 3,300 compared to the same quarter in 2019. On the other hand, the number of jobs held by males decreased by 17,000. Hence, the female employment rate in Q3 of 2020 was higher than the previous year, whereas the employment rate for men declined (see Graph 5). Graph 5. Employment men vs. women Q1 of 2019 - Q3 of 2020 (age 15-64)

Source: State Statistical Office, LFS.

Disaggregated data by sex also shows that women experienced decline in unemployment rate, whereas the unemployment rate of men increased. Still, part of this “success” of women in the labor market during the pandemic can be attributed to a reduced economic activity of women (increasing inactivity in the labor market).

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Graph 6. Unemployment rates men vs. women Q1 of 2019 - Q3 of 2020 (age 15-64)

Source: State Statistical Office LFS.

Consumer prices The consumer prices index in 2020 increased by 1.2% in comparison to 2019.

Credit rating The credit rating agency Standard & Poor’s has confirmed the BB-rating of Macedonia with a stable outlook, meaning that the country has had a stable position in regards to investor outlook and international borrowing costs when entering the global financial markets.

FDI – Foreign Direct Investment FDI inflows in 2020 (Graph 7) have reached the lowest point since the period when the country started with a more aggressive policy and campaign of attracting FDIs (around 2007 and 2008). In 2020, there were two consecutive quarters where FDI recorded negative growth in inflows. These FDI movements are in line with global financial flows and the general reservations of existing and new potential investors entering into new investments or reinvestments. Given the uncertainty prevailing in global financial markets, and the inability of major economic players to secure a restart of supply and demand, a longer recovery period can be expected. Graph 7: Foreign direct investment inflows (EUR million)

Source: National Bank of the Republic of North Macedonia

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II. Growth Enablers

PISA (Program for International Student Assessment) The Programme for International Student Assessment (PISA) is an assessment of the extent to which 15-year-old students, at the end of their compulsory education, have acquired the key knowledge and skills essential for full participation in society. The assessment focuses on proficiency in reading, mathematics, science and an innovative domain (in 2018, the innovative domain was global competence), and on students’ well-being. In the 2018 study (latest available data), students from Macedonia scored lower than the OECD average in reading, mathematics and science. Compared to the OECD average, a smaller proportion of students in Macedonia performed at the highest levels of proficiency (Level 5 or 6) in at least one subject; at the same time a smaller proportion of students achieved a minimum level of proficiency (Level 2 or higher) in at least one subject. In Macedonia, 45% of students attained at least Level 2 proficiency in reading compared to the OECD average of 77%. A negligible percentage of students in Macedonia (0.5%) were top performers in reading, meaning that they attained Level 5 or 6 in the PISA reading test (OECD average: 9%). Thirty nine percent of students in Macedonia attained Level 2 or higher in mathematics (OECD average: 76%), whereas only 1% of students scored at Level 5 or higher in mathematics (OECD average: 11%). Similar results were also observed in science where 51% of students in Macedonia attained Level 2 or higher in science relative to the OECD average of 78%. Despite this low performance of Macedonian students, still there is some improvement in the results in all three subjects since 2015. In particular, the percentage of low performers in each subject shrank by at least nine percentage points. Improvements were observed throughout the performance distribution, as both the lowest and highest achieving students improved their proficiency between 2015 and 2018. In Macedonia, girls scored higher than boys in mathematics by seven score points (398 average score points of girls vs. 391 score points of boys). On the other hand, across OECD countries, boys outperformed girls by five score points, still girls being better performers in science than boys. In Macedonia, girls outperformed boys in science by 19 score points (423 score points of girls vs. 404 score points of boys). By far the largest difference between genders is in reading, where girls outperform boys by a solid difference of 52 score points (420 score points for girls vs. 368 score points for boys). 3Amongst high-performing students in mathematics and science, one in seven boys in Macedonia expects to work as an engineer or science professional at the age of 30, while one in five girls expects to do so (the difference is not statistically significant). One in seven high-performing girls expects to work in health-related professions, while less than one in ten high-performing boys expects to do so (the difference is not statistically significant). Approximately 10% of boys and 3% of girls in Macedonia expect to work in ICT-related professions.4

STEM Graduates The newest addition to the Dashboard (see Table 1), is an indicator that measures graduates in tertiary education in science, math, engineering and mathematics (STEM) per 1000 population (aged 20 – 29). With the latest available data for Macedonia from 2018, the country sits at the bottom of the peer country rating with the lowest share of graduates in the STEM fields. In 2018, there were 7.7 STEM graduates per 1000 population in Macedonia, which is well below the peer countries’ average of 15.7 STEM graduates per 1000 population.

Skills of Current Workforce This indicator measures a set of sub-indexes which tracks the extent of staff training, quality of vocational training, skillset of graduates, digital skills and ease of finding skilled employees. The indicator’ value for Macedonia of 39.6 points in 2019 puts the country at the 17th place from a total of 18 peers.

Investments (as % of GDP) As expected, the share of investments in GDP for 2020 (an average of the first three quarters) declined compared to the previous year by 1.1 p.p.5 This negative result is due to the health and economic shocks stemming from the Covid-19 pandemic, which discouraged businesses to pursue investments, whereas the government decreased the capital expenditures to leave more funds for the anti-crisis measures.

3 https://gpseducation.oecd.org/CountryProfile?primaryCountry=MKD&treshold=10&topic=PI#:~:text=In%20reading%20literacy%2C%20the%20 main,30%20points%20higher%20for%20girls). 4 https://www.oecd.org/pisa/publications/PISA2018_CN_MKD.pdf 5 This value is calculated from the preliminary quarterly data for Q1-Q3 2020 from the State Statistical Office of North Macedonia, instead of from Eurostat (as our main source). The indicator value for Q1-Q3 2019 is 33% and 31.9% for Q1-Q3 2020. It is calculated as gross capital formation with changes in inventories taken into account, while the Eurostat indicator is calculated as gross fixed capital formation which does not include data for changes in inventories, hence the big discrepancy of the indicator between data for 2019 and 2020.

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Research and Development (% of GDP) In 2019, Macedonia spent 0.37% of GDP on R&D. This result places Macedonia at the bottom of the ranking relative to its peers (data available for 14 peer countries).

Democratic Freedom (from Freedom House) Macedonia’s score for democratic freedom is unchanged from 2019. Macedonia is rated as ‘Partly Free’, as the country continues to struggle with corruption on a systemic level and journalists facing pressure and intimidation listed as the main negatives.

Corruption perceptions index In 2020, Macedonia has reached its lowest ranking since the start of the country’s inclusion in the index. Macedonia fell 5 places from the rank in 2019 and now sits at 111th place and is at the bottom of the list of all of its peer countries as the most corrupt and least efficient. This sends a strong signal to Macedonian authorities that the need for reform is dire and immediate if the goal is for the country to be on the right path to becoming a developed nation.

Rule of Law (World Justice Project) In 2020, Macedonia achieved a score of 0.53 on a scale from 0 to 1. This has triggered a decline in the peer country ranking from 8th to 9th position of the 13 peer countries for which data is available. This decline is related to the deterioration of the assessment of dealing with systemic corruption and fair implementation of laws in court proceedings.

Environmental Performance Index (EPI) The rank of Macedonia in the Environmental Performance Index in 2020 was 43rd from the 180 countries included in this index. Namely, Macedonia’s score for 2018 was 61.06 points (on a scale of 0-100), and deteriorated to 55.4 points in 2020. This places Macedonia on the 14th place of the 18 peer countries. The ranking of Macedonia among the peer countries slightly improved between 2018 and 2020 which is not a result of an improved situation in the country, but of a larger setback of other countries in the peer group.

Table 1: Country Dashboard

MACEDONIA2025 COUNTRY DASHBOARD MEASURING THE ECONOMIC GROWTH

2018

2019

2020*

∆ on Prev. Year/ Period

2019 Peer Rank

Target

2.9%

2.8%

2.8%

-5.9%

0.0%

19/19

4%, 1st QTL

22.5%

21.0%

17.4%

16.7%

-3.6 p.p.

16/16

<12%, 3rd QTL

2.7%

2.0%

5.4%

-0.2%

3.4 p.p.

2/16

2.5%

13.2%

17.1%

9.4%

-15.1%

-7.7 p.p.

3/17

>10%

BB-

BB-

BB-

BB-

no change

15/18

BBB, 1st QTL

3.4%

5.1%

3.8%

1.2%

-1.4 p.p.

10/19

>5%, 1st QTL

:

369

400

/

31

18/19

Top Half

7.6

7.7

:

/

0.1

15/15

10

2017

KEY INDICATORS OF ECONOMIC GROWTH GDP growth 5 Yr average (in %) Unemployment rate - 15-64 years Employment growth (in % from previous year) Exports growth (in % - current prices) Credit rating (S&P) FDI (as % of GDP) Growth Enablers Education (PISA Scores) STEM graduates, per 1000 population

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MACEDONIA2025 COUNTRY DASHBOARD MEASURING THE ECONOMIC GROWTH Skills of Current Workforce (score from 1-100)

:

38.3

39.6

/

1.3

17/18

45

22.5%

19.8%

21.2%

31.9% 2)

1.4 p.p.

10/18

Top Half

0.36

0.36

0.37

/

0.0

14/14

1st QTL

Democratic freedom (score from 1 to 7-not free)1

3.5

3.5

3

/

0.5

13/19

Top Half

Rule of law (score from 0 to 1-good rule of law)

0.53

0.53

0.54

0.53

0.01

9/13

Top Half

n/a

84

82

/

2

17/18

Top Half

50

68

43

43

25

14/18

Top Half

Investments (as % of GDP) R&D (as % of GDP)

Global competitiveness index (Rank) Environmental performance index (Rank)

Note: There are in total 19 peer ranking countries which are used as an anchor to assess the country progress. They are divided in two subgroups. The first group, the so-called "Aspirational Peers", are the "New EU Member States": Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovenia and Slovakia. The second group of countries are the so-called "Structural Peers", i.e. the Western Balkan countries comprised of Albania, Bosnia and Herzegovina, Kosovo, Montenegro and Serbia. If data are lacking for some country or a specific indicator, then the rank is shown using the group of countries for which data are available (i.e. less than 19 countries). 1) Score of 1-2.5 means Free, 3-5 Partly free and 5.5-7, Not free. 2) The difference between the amount from 2020 and the value for 2019 is due to the inclusion of expenditures for additions to the fixed assets in the economy plus net changes in the level of inventories for 2020, and those changes in the amount for 2019 are not included. In addition this data is calculated up to Q3 2020 * For the econometric indicators, the data for 2020 is up to Q3 of the same year, data and rank for Rule of law and EPI is for 2020

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FINANCIAL SUMMARY (TBD) Financial Statement, Executive Office Skopje (in 000 MKD)

2020

2019

2018

Membership dues, donations and dedicated revenues for programs

7,635

10,572

13,160

Revenues from services

1,399

2,129

984

453

-

-

31

28

8

9,518

12,729

14,152

Salaries

5,142

5,415

5,375

Professional and administrative services

1,425

1,811

3,318

Rent

1,252

1,528

1,534

Covid 19 donations Positive exchange rate and other Expenses

Other operating expenses

950

3,550

3,367

Scholarships for talented youth

671

353

250

Covid 19 donations

524

-

-

2

32

175

Expenses

9,966

12,689

14,019

Net income before taxes

-448

40

133

Negative exchange rate

Profit tax

)11( 29

133

2020

2019

2018

100,895

100,172

110,983

Revenues Dedicated to Programs

67,597

130,981

122,961

Donations and Corporate Partnerships

15,845

78,562

116,016

184,338

309,716

349,959

-123,177

-134,274

-145,860

-86,879

-86,172

-79,554

Leadership and Education Programs

-29,380

-98,401

-77,903

Economic Development and Business Support

-47,097

-97,585

-98,895

-4,278

-12,051

-19,316

Total expenses

-203,932

-342,311

-341,974

Income/Loss

-19,594

-32,595

7,985

Net income from operations

(448)

Financial Statement, Consolidated (in EUR) Membership Dues and Other Contributions

Total Revenue

Operational Expenses of which, Salaries Administrative Staff

Other

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OUR GLOBAL NETWORK (2020)

We thank our global network of exceptional individuals who contribute with their ideas and assist the implementation of our projects and events, thus promoting and supporting the mission of Macedonia2025.

Ambassadors Club Borche Ilioski

Kiril Savovski

Mirco Krsteski

Filip Popov

Pero Jolevski

Sadat Alimi

Mitko Andonov

Oliver Petkovski

Petar Kajevski

Vladimir Robevski

Bozhanka Vitanova

Vahit Alili

Aleksandar Stamboliev

Aleksandra Miloseska

Ivan Naumovski

Alan Castillo

Aleksandar Orovcanec

Nick Lazarevski

Petar Spaseski

Margarita Minceva

Bojana Kiseloski

Aleksandar Celeski

Ilija Maurovski

Vasja Petrovska

Nikola Kjurciski

Dimitar Siljanovski

Dejan Velichkov

Stevan Ivanovski

Zlate Koviloski

Nikola Nakov

Lou Naumovski

Borijan Panovski

Izaac Trpeski

Mile Terziovski

Lily Stojanovska

Valentin Gjorgjievski

Slavica Waite

Ichak Adizes

Biljana Nikolova

Vlado Dimovski

Ada Gavrilovska

Rachel Shelly Levy-Drummer

Vlaho Kostov

Dejan Kalinikov

Dragana Ognenovska

Ivan Skenderoski

Viktor Nelepa

Dejan Krstevski

Vanja Josifovski

Russ Trpkovski

Jatin Thakrar

Borijan Borozanov

Sanja Lazarova Molnar (prospective member)

Bruno van Pottelsberghe

Ivo Boskoski

Marta Arsovska Tomovska

Igor Tulevski

Council of Experts

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Ljiljana Kocoska-Maras (prospective member)


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Our heartfelt thanks to everyone who donated towards our two online fundraising campaigns ‘Let us Unite to Support Macedonian Frontline Healthcare Workers’ and ‘No Child Left Offline’ Aleksandar Orovcanec

Pero Jolevski

Diana Durtanoski

Aleksandra Murgoska

Petar Kajevski

Magdalena Krstevska

Aneta Palevska

Thomas Bitove

Margarita Minceva

Bojana Kiseloski

Vonna Bitove

Metodija Papazoski

Dejan Krstevski

Aleksandar Celeski

Peter Atanasovski

Jennifer Cklamovski

Aleksandra Miloseska

Thomas Bitove

Metodija Papazoski

Aleksandar Orovcanec

Mile Terziovski

Amiti Banavar

Nick Bitove

Bojana Kiseloski

Last but not least, our sincerest gratitude to those that also donate towards our causes, but would like to stay anonymous.

Your Support is invaluable to us!

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HOW CAN YOU SUPPORT OUR MISSION?

Macedonia2025 is dedicated to helping create a prosperous economic climate and a ‘stronger nation’ that will improve opportunities for citizens, companies, and foreign investors. We promote sustainable economic growth through fostering competitiveness, entrepreneurship, innovation and values-based leadership. Creating the desired impact requires a significant amount of resources – which we rely on our donors to provide. We are aware that our efforts and commitments need to increase further, now more than ever. Renowned professionals from around the world are welcomed to give back to the homeland with their time, network, knowledge and support. Your financial support is crucial for achieving our vision, mission and main strategic objectives. Donations can also be directed to a specific project or program. Please note that Macedonia2025 is a registered non-profit organization under the United States Internal Revenue Code Section 501 (c) (3), and has been confirmed as a Charitable Foundation in Canada (Decision No. 3061947), meeting the requirements for tax-exempt status as a registered charity under the Income Tax Act. Contributions to the foundation are deductible against Macedonian taxes..

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MACEDONIA2025 TEAM (2020)

A special thanks to the Macedonia2025 team for their hard work and efforts in the realization of our mission and vision. Nikica Mojsoska-Blazhevski, Chief Executive Officer

Gordana Klincharova, Financial Advisor

Nena Manchev, Leadership & Education Programs Manager

Katerina Kolarova, Project Assistant

Ema Jakimovska, Communications & Policy Specialist

Stefan Ivanovski, Multimedia Production & Web Design

Galena Cunningham, Diaspora Relations & Events Specialist Petar Trendafilov, Economic Analyst/ Researcher

ORGANIZATIONAL ADDRESS

Email: office@macedonia2025.com Address: St. Luj Paster No.1 – 2, 1000 Skopje, Macedonia Office phone: +389 23 161 015 North America phone: +1 646 491 6808

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WE THANK OUR PARTNERS FOR THEIR SUPPORT

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MACEDONIA2025 IN THE MEDIA

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KEEP IN TOUCH, FOLLOW US ON OUR SOCIAL MEDIA

@MACEDONIA2025

Luj Paster No. 1-2

office@macedonia2025.com

+ 389 23 161 015 ANNUAL REPORT 2020



Luj Paster No. 1-2 office@macedonia2025.com + 389 23 161 015