Figure 1.--.This is a scene from Macedonia in the early-20th century, probanly just bfore or during World War I. Most of macedonia at the time was the southern portion of Sebia. It was a poor agricultural region and extremely backward as a result of centuries of Ottoman control which cut it off from mainstream European civilization and economic development.

Macedonia throughout most of its historty has had an agrciculturan economy. The relatively poor rocky soil and mountenous terraine has meant that it has been a poor country. This is why the explosionnof culture known as the Greek Golden Age was to the south of Macedonia. Maccedonia did, however, generate the military power to conquer Greece. The limited economic resources, however, ome Alexander's E,pire collapsed maenth atit could not resist the empires that formed around it. The Macedonian Empire fell to Rome (148 AD). Since then Macedonia has been a province of larger more powerful neighboring states. This has meant Rome, the Byzantines, and the Ottomans. Ottoman control meant that like other Balakan ststs, Macedonia did not experience the major cultural and economic developments sweepoing Europe. Innthe aftermath of the GrenchbRevolution, ideas of nationalism and the desires for independennce swept through the Ottoman-controlled Balkans (19th century). Unlike the surrounding states (Greece, Bulgaria, Serbia, and Albania, Macedonia failed to gain independenceas these states emerged from Ottoman control and rather became a province these states fought over in a series of Balkan wars. Throughout all of this. Macedonia remained a poor agriculturaL area. Much of it became souther Serbia which expanded into Yugoslavia after World War I (1914-18). As part of Yugoslavia there was some industrial development, especially during the Communist era (1945-91), although much of tgis was ineffucent, uncompetitive satate-owned enterprises. Macedonia gained independence from the former Yugoslavia (1991). This ended Communist rule, but Macedonia hardly embraced free market capitalism. . Fiscal policy has been weak with continued unproductive public expenditures, including substantial subsidies and pension increases. In addition there have been expensive and rising guarantees for the debt of state-owned enterprises. Informal economic activity appears to be generatimg a substantial share of GDP. Government corruption and a bloated bureaucracy continue to be major priblems. The overall legal framework is sound, but enforcement isseen as slow and weak. The center-right VMRO-DPMNE won the most seats in parliamentary elections but failed to win a majority (2016). Zoran Zaev of the center-left Social Democratic Union became prime minister (2017). He forgd a coalition with two ethnic Albanian parties. The European Union (EU) is Macedonia’s principal trade and investment partner, and their economies are now intertwined. This relationship has been complicated by Greek insistence that Macedonia is part of Greece. Voters approved a referendum changing the country’s name to the Republic of North Macedonia (2018). It was hoped that this would end a long-running dispute with Greece which had been blocking membership in both the EU and NATO. Pro-Russia President Gjorge Ivanov sided with opponents who called the change a betrayal of Macedonian identity

Created: 2:34 PM 1/18/2020
Last updated: 2:34 PM 1/18/2020