National strategy for reduction of poverty and social exclusion in the republic of macedonia

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The exchange of experiences about the development and promotion of entrepreneurship, management, negotiation techniques, new marketing strategies, sales methods, modern techniques for conquering new markets and other activities create opportunities for new jobs and greater social inclusion.

  • Result 8Engagement of socially unsecured people in the agricultural sector

  1. Increase the number and scope of people that can use state owned agricultural lands (the measure is being implemented successfully and certain categories of people that benefit from social financial assistance have the opportunity to find employment for themselves or members of their families, as well as other persons)

  2. Simplify the procedure for issuance of certificates by CSW and appropriate documentation by the Real Estate Cadaster Agencyto the socially unsecured persons so that they can apply for the opportunity to use state owned agricultural land.

  3. The Ministry of Agriculture, Forestry and Water Economy as well as the Agriculture Extension Agency will provide support for the primary agricultural production phase, as well as for the phases of processing and selling the agricultural products, to people receiving social financial assistance benefits.

  4. Considering the possibility to apply the above measure in other areas, activities and fields where state owned lands can be given to socially unsecured persons to use, and in return the users will have the obligation to employ people from vulnerable categories.

  5. Strengthen the financial and other support to socially unsecured person by advising them on implementing their agricultural business, improving their skills in order to strengthen their competitiveness and the market position.

  • Result 9 Formalization of the informal economy

  1. Transformation of the informal economy into the formal economy with active measures and policies compatible and acceptable for market economies.

  2. Strengthen the capabilities of the state (and the municipalities) to collect taxes and other public revenues. This will create multiple opportunities for creating new jobs and help those excluded from the market, through social protection programs.

  3. Apply the experiences from certain countries on the various models and methods of transformation of the informal into the formal economy that have yielded results.

  4. Provide opportunities to people dealing in the informal or the gray economy, to work in the official economy, as well as opportunities to register their business activities by paying certain minimal taxes or lump sums. These individuals would have greater security, not only with respect to their present status, but also in respect to their future revenues, such as pensions, insurance in case of unemployment, social benefits, etc.

  5. Conduct a comprehensive study that will provide precise systematization of the job categories that exist on the informal market; the characteristics of the “formally unemployed” according to their position on the labor market, level of education completed, ethnicity, place of living, etc.

  6. Implement policies and measures to gradually register the “gray” businesses in the formal market, including phases that are necessary for the “new” market participant to get accustomed to dealing with the financial burdens, i.e. with the real costs of the formal market. This may include: gradual payments, deferral of obligations for a certain period of time, providing loans at “state – fixed” rates, providing subsidized grants for special purposes related to formalizing the businesses, etc.

  7. For certain businesses related to vulnerable categories, one can apply the model involving quick and cheap registration (using special, lowest and even symbolic tariffs) of the unregistered small businesses. These businesses will be registered in the so called “open incubator” where they could receive support from the central and the local government for a period of three years, after which they would become legal businesses.

  8. The regular “formal” businesses that already exist, should not be unprivileged and “stigmatized” and without any compensation, just because of the fact that they are “regular payers”. To show appreciation for those businesses that regularly pay taxes, the state should undertake certain “financially – sustainable” measures to “reward” them and get them on board as supporters of the overall market formalization strategy.

  9. Implement the measures from the Agricultural Financial Support Program (direct payments) for specific agricultural holdings that have the legal status of “individual farmer”, in order to reduce the gray economy in agriculture.
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