Moderate fulfillment of government promises, with substantial variation across sectors

Press Release

KOMPAS: Monitoring of Government Promises (2024-2028)

 

Finance Think, in partnership with the Macedonian Center for Civic Education, the Macedonian Medical Association, and the Youth Educational Forum, presents the upgraded monitoring framework KOMPAS for systematic tracking of the implementation of government promises for the period 2024–2028. This framework builds upon the previous version that mapped economic progress during the period 2020–2024.

The KOMPAS platform (https://kompas.financethink.mk) tracks the implementation of a total of 139 promises, distributed across five priority areas: socio-economy, education, health, youth, and gender equality.

Overall progress: Moderate fulfillment with significant differences across sectors

Of all the promises, 18 (13%) have been fully fulfilled so far, while 51 (37%) are in the direction of being fulfilled. The greatest progress has been made in the field of education, where 24% of the promises have been fulfilled and 70% are in the direction of being fulfilled. Next are socio-economic policies and youth policies, each with 9% of promises fulfilled. Implementation in the health sector shows a more moderate pace, with three promises fulfilled and five in direction of being fulfilled. The least progress has been observed in the area of gender equality, where there is neither an active nor fulfilled promise (Graph 1).

Graph 1: Fulfillment by area

Socio-economic policies: Partial progress, but with potential risks

Out of 43 mapped promises, 4 have been fulfilled and 12 are in direction of fulfillment. The fulfilled ones include: unchanged personal income and profit tax rates, non-taxed reinvested profits, and an increase in pensions by 5,000 denars. Those in direction of fulfillment mostly relate to stable finances contributing to macroeconomic stability such as GDP growth, inflation control, reduction of public debt and unemployment, increased investments, and new job creation.

From a fulfillment perspective, although the number of fully met promises is relatively small, the ones in direction of fulfillment are satisfactory. A greater cause for concern are the promises whose fulfillment is moving in the opposite direction, particularly as they represent key structural reforms. These include promises related to reducing the budget deficit below 3% of GDP, decreasing the grey economy, increasing productivity, supporting exports, and moderate wage growth in the public sector.

An additional challenge lies in aligning government priorities with the real needs and expectations of citizens. According to the latest research “What is key to improving quality of life?”, citizens identify that care services for the elderly and children (nursing homes and kindergartens) are considered insufficiently accessible and often expensive. Meanwhile, the quality of road infrastructure and public transport is rated the poorest. At the same time, the greatest support is given to promises for creating new jobs, capital investments, and expanding childcare capacities. On the other hand, support for increasing wages in public administration is low, with a high percentage expressing negative views, and the 16.8% increase in 2024 even exceeds the promised increase tied to economic growth.

In the upcoming period, it is necessary to maintain focus on the promises in direction of fulfillment, to complete them within a reasonable timeframe. Special attention should be given to promises that started positively by the end of 2024 but show risk of deviation in Q1 2025—such as inflation rate and stronger revenue collection in the state budget—as well as better alignment of government priorities with citizens’ expectations and real needs.

Education: Highest degree of implementation

Of 37 mapped promises, 9 have been fulfilled and 26 are in the direction of fulfillment, indicating strong activity dynamics. Promises that have been fulfilled or are in direction of being fulfilled include increasing the education budget (to 3.79% of GDP), revising the Basic Education Concept, support for successful schools, and expansion of educational inclusion measures. Although initial steps have been taken in higher education reform, implementation in this segment remains the weakest. Some promises, such as introducing the STEM concept and opening a teacher training center, have not yet been fulfilled. Some promises have not been transposed into the strategic documents of the Ministry of Education nor have been revised and reformulated to align with current policies, indicating the need for greater coherence between the Government Program and the system’s actual capacities. Still, the establishment of monitoring indicators is a positive step toward more efficient implementation tracking.

Health: Limited progress with important beginnings

Of 31 promises, 3 have been fulfilled and 5 are in direction of fulfillment. These include: increasing the capitation point for primary care doctors, abolishing economic director positions, and introducing nine new generic medicines to the positive list after a long time. The process of employing around 1,018 healthcare workers previously engaged under service contracts in public health institutions has begun. Although the process is ongoing, it faces some administrative challenges that are slowing it down. Procedures have also begun for employing private specialist doctors in public health. At the same time, projects are being implemented for renovating several health institutions and procuring new medical equipment for diagnostics and treatment in multiple health centers.

However, the challenges remain significant: fundamental reform of primary healthcare and other levels of the health system, regionalization of hospitals, shortage of medical staff, digital transformation, and establishing a sustainable system for long-term care. Additionally, citizen perceptions reveal significant misalignment between expectations and reality. Citizens report limited access to specialist healthcare, inadequate infrastructure quality, and high out-of-pocket costs for medicines and services. These findings suggest that health sector measures must be better aligned with citizens’ real needs, with a focus on improving accessibility, quality, and financial protection. The goal is to establish a modern, efficient, and sustainable health system with clear standards, improved infrastructure, and human resource capacity, which will meet citizens’ expectations and deliver quality healthcare at all levels.

Youth: Institutional progress, insufficient implementation of specific measures

Fifteen promises are being monitored, of which 2 have been fulfilled, 8 are in direction of fulfillment, and 5 have not been fulfilled. Although a new Ministry of Social Policy, Demography, and Youth has been established, along with a Center for Youth Research—representing significant institutional innovation—the announced specific promises, such as 250-euro vouchers for student electronic devices, a youth standard mobile app, or the “Buy a Home for Youth” project, have not yet been fulfilled.

On the other hand, initiatives have begun to renovate student dormitories and increase financial support for young farmers. These results point to the need for clear deadlines and strengthened institutional capacity. Furthermore, prioritization of measures should align with the real needs of citizens and youth, such as 80% support for improved housing conditions, 63% for the “Buy a Home for Youth” measure, and 73% for financial support to young entrepreneurs, among others.

The overall action is supported by the Government of Switzerland through Civica Mobilitas. Civica Mobilitas is a project of the Government of Switzerland, implemented by MCIC, NIRAS, and FCG. The views expressed herein do not necessarily reflect the positions of the Swiss Government, Civica Mobilitas, or the implementing organizations.

A study on productivity at the event of the Employers’ Organization

✅ Today, at the event organized by @Organization of Employers of Macedonia – ORM, we presented the study
📊 “Improving Business Productivity: A Comprehensive Analysis of Productivity and Its Drivers in Firms in North Macedonia” 📖
🔍 The study offers an in-depth insight into the state of firm productivity through an analysis of total factor productivity.
🎯 Key external and internal determinants of productivity have been identified.
The panel discussion enriched the event with views and perspectives from high-level representatives from the government, business sector, and academia:
🔹 Vladanka Trajkoska, President of ORM
🔹 Marjan Risteski, Deputy Minister for Economy and Labor
🔹 Angel Dimitrov, President of the Assembly of ORM
🔹 Assoc. Prof. Dr. Dejan Stankov, Director of the State Statistical Office
🔹 Sasho Klekovski, Director of the Health Insurance Fund of Macedonia
🔹 Dr. Daniela Bojadzieva, Faculty of Economics at UKIM
💡 The goal is to encourage the creation of effective policies and measures to boost productivity.
The study was prepared by Finance Think for the needs of ORM and financially supported by the International Labour Organization, Employment and Social Affairs Platform (ESAP) 3.

The Ambassador of Kazakhstan visits Finance Think

🇰🇿 Today at Finance Think, we had the honor of hosting the Ambassador of the Republic of Kazakhstan, H.E. Satybaldy Burshakov, along with Counselor Mr. Kairat Akhmetalim.

The visit aimed at gaining deeper insights into the Embassy’s activities in the fields of economy and energy, as well as presenting our work and #research focus.

We discussed opportunities for future #collaboration and exchange of experiences, driven by a shared ambition to strengthen the economic ties between the two countries.

#FinanceThink #internationalcooperation #Kazakhstan #economy

Workshop – From Statistical Data to Effective Policies

📊 From Statistical Data to Effective Policies!

Today, we held the workshop “From Statistical Data to Creating Effective Economic and Development Policies”, with a focus on gender statistics, in collaboration with the State Statistical Office (MakStat / MakStat). 👥

🔍 Together with representatives from all relevant institutions, we explored:
✔️ The available data from the State Statistical Office
✔️ Their utilization in research analyses and Finance Think’s models
✔️ The possibilities for integrating findings into policymaking

🎯 Our goal: To ensure that data serve as the foundation for evidence-based policymaking – for more inclusive and equitable development!

Supported by British Embassy Skopje

A special thanks to the Ministry of Finance, Ministry of Labor and Social Policy, Ministry of Education and Science, Ministry of Health, Employment Agency of North Macedonia, Ministry of Energy, Mining, and Mineral Resources, UNICEF MK, and UN Women Skopje for their participation.

#EvidenceBasedPolicies #GenderStatistics #EconomicDevelopment #FinanceThink #MakStat

📸 More photos: https://www.flickr.com/…/fosim/albums/72177720324734083/

Finance Think and University of Dubrovnik’s CREDO Sign Memorandum of Understanding

Skopje/Dubrovnik – Finance Think – Economic Research & Policy Institute, Skopje, and the University of Dubrovnik’s Center for Research of Digital Transformation (CREDO) have signed a Memorandum of Understanding (MoU) to foster collaboration in research, capacity building, and academic exchange.

The MoU, signed on March 18, 2025, by Dr. Blagica Petreski, CEO and Chief Economist of Finance Think, and Prof. Dr. Nebojša Stojčić, Founder of CREDO and Rector of the University of Dubrovnik, establishes a framework for joint initiatives in economics, public policy, and digital transformation.

As two leading institutions recognized for their excellence in economic research and digital transformation, this partnership brings together Finance Think’s expertise in data-driven policy analysis and evidence-based economic solutions with CREDO’s cutting-edge research in digital transformation, business innovation, and economic competitiveness.

Under this agreement, both institutions will join forces in several key areas to advance research and knowledge exchange. A strong emphasis will be placed on joint research projects, where Finance Think and CREDO will collaborate on high-impact studies in economics, public policy, and digital transformation. Recognizing the importance of capacity building, they will design and deliver specialized training programs, workshops, and seminars aimed at equipping researchers, students, and professionals with cutting-edge skills and insights. In addition, the partnership will enhance international collaboration through Erasmus+ and other EU-funded initiatives, facilitating staff exchanges, joint project applications, and coordinated implementation efforts. The two institutions will also prioritize knowledge sharing, ensuring the open exchange of research findings, data, and academic resources to drive innovation and strengthen their respective fields. Finance Think and CREDO will work closely on academic and policy engagement, co-organizing conferences, producing joint publications, and contributing to evidence-based policymaking.

“As a leading research institute dedicated to shaping economic policies through rigorous analysis, Finance Think is excited to collaborate with CREDO. Together, we will advance research and capacity-building efforts that contribute to economic resilience, digital innovation, and sustainable development in the region,” said Dr. Blagica Petreski, CEO of Finance Think.

Echoing this sentiment, Prof. Dr. Nebojša Stojčić, Rector of the University of Dubrovnik, stated, “This partnership marks an important step in enhancing regional cooperation in economic and digital transformation research. Both Finance Think and CREDO have built strong reputations for excellence, and by combining our expertise, we aim to drive meaningful policy impact and support academic development in our respective fields.”

The MoU is effective immediately and will remain in force for three years, with the possibility of renewal. Both institutions are committed to leveraging their strengths to foster innovation, research excellence, and cross-border academic cooperation.