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Governmental Reshuffle in North Macedonia: Streamlining for Growth

Issue 11.10
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North Macedonia has undergone a significant governmental reshuffle following its recent elections. Joanidis Founding Partner Biljana Joanidis-Velichkovska discusses these changes and their implications for the country.

Streamlining Government for Effective Policy Making

The government’s restructuring centers on creating more streamlined and condensed departments to enhance efficiency. Joanidis-Velichkovska explains that the new governmental structure now comprises 20 ministries, an increase from the previous 17.

“The objective behind the government restructure was creating more streamlined and condensed departments,” Joanidis-Velichkovska points out. Key changes involve the reorganization of existing ministries to better align sectors with their appropriate fields of competence. For instance, the Ministry of Economy underwent substantial changes, with Joanidis-Velichkovska reporting that it “had the biggest restructuring. The Foreign Trade sector of the Ministry of Economy was separated and added to the Ministry of Foreign Affairs forming the Ministry of Foreign Affairs and Foreign Trade. The Tourism sector of the Ministry of Economy was separated and added to the Ministry of Culture forming the Ministry of Culture and Tourism.” Finally, the “sectors responsible for managing the policies related with energy, mining and mineral resources of the Ministry of Economy were separated and fused together, forming the Ministry of Energy, Mining and Mineral Resources,” she explains.

Furthermore, the government also undertook significant restructuring of other ministries to improve efficiency and reflect modern priorities. “The Ministry of Labor and Social Policy and The Ministry of Youth and Sports were dissolved,” Joanidis-Velichkovska goes on to say. “The Labor sector was added to the Ministry of Economy forming the Ministry of Economy and Labor. The Youth sector was added to the Social Policy sector forming the Ministry of Social Policy, Demography and Youth, and the Sports sector became the Ministry of Sports.”

Joanidis-Velichkovska goes on to report that “the Ministry of Informatic Society and Administration was dissolved. The Informatic Society sector became the Ministry of Digital Transformation, while the Administration sector became the Ministry of Public Administration.” Additionally, “the Ministry of Political System and Relations between Communities was dissolved – the Political System sector was added to the Ministry of Public Administration, while the Relations between Communities became the Ministry of Inter-Community Relations.” Finally, Joanidis-Velichkovska reports that “the Ministry of Transport and Communications became the Ministry of Transport, with the Communication sector being allocated to different ministries according to their competences.”

Expected Impact

These alterations are expected to have a significant impact on policy-making processes, economic development, and North Macedonia’s international relations. “These structural changes should streamline the legislative agenda and policy-making processes and lead to more specific decisions and solutions, as a result of the clear, condensed, and structured distribution of powers and responsibilities between the departments,” Joanidis-Velichkovska argues. “With such changes, emphasis is placed on better management and resolution of issues related to foreign policy and trade, management of national resources (energy sources and ore and mineral deposits), etc.”

While Joanidis-Velichkovska says “it is too early to do proper market research and measure and determine relevant parameters, based on which we could make an accurate analysis and give an appropriate expert opinion,” she believes that certain aspects of the reshuffle will have a long-term impact: “we believe that the greatest impact will be caused by the separation of certain sectors from the Ministry of Economy, and their annexation to ministries that have a more appropriate field of competence and authority.”

Moreover, Joanidis-Velichkovska believes “that the merger of the departments in the field of economy and labor, as well as the departments in the field of foreign policy and foreign trade, complemented with the separation and independence of the departments in the field of European integration and departments in the field of national resource management, will result in improved and increased foreign investment, international relations, and integration into broader economic communities.”

Ultimately, Joanidis-Velichkovska feels that North Macedonia’s governmental restructuring represents a “strategic initiative to create a more efficient and focused administration. By aligning ministries more closely with their core competencies and establishing new departments to address contemporary challenges, the government aims to enhance policy-making, boost economic development, and strengthen international relations.”

This article was originally published in Issue 11.10 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.