BUSINESS CLIMATE IN THE TRANSITION PERIOD IN MACEDONIAN ECONOMY
BUSINESS CLIMATE IN THE TRANSITION PERIOD IN MACEDONIAN ECONOMY

Summary/Abstract: It is well-known that in the early 1990's, in the real socialist states, revolutionary changes took place both in the political and the economic spheres. Totalitarian systems were abandoned and replaced with pluralist systems, in which different political parties competed, increasing competitions with different ideas for a better future. Analogous to pluralistic systems, competition was opened in the economic sphere. State or social property was replaced by different property but with a pronounced dominance of that private property. Private property is the first element for the sound functioning of the market economy. In such developments the state played a decisive role in regulating political and economic flows. All of the socialist states went through the transition economies followed by radical reforms. Some states in implementing the reforms were successful and some did not. States that built sound economic programs and democratized the society realized their goal of being included as equal members of the EU and NATO (Poland, Romania, Bulgaria, Slovenia, the Slovak Republic, the Czech Republic, Estonia, Hungary, Croatia), on the contrary inefficient reforms lasted too long for the transition period and are still awaiting the opportunity to join NATO (Macedonia) or the EU (Macedonia, Albania)The state has always been special in the preparation of the business climate, but its head still rises in radical changes when the economy is undergoing strong shocks. The state's objective in the early stages of transition was economic and social stability. The legal framework for the privatization of state capital was prepared and on the other hand, social programs were prepared to help the dismissed workers because privatization recognizes only productive employment. Insufficient privatizations resulted in massive job closures and low development rates of that period and the following periods (Macedonia), on the contrary, states with sound privatization programs resulted in underperforming jobs reductions and high growth rates of the period in question and the following (Slovenia, Poland, etc.).In the paper, the successes of the implemented transition reforms are presented with the progress of the main economic indicators. They accelerated economic growth by open the way for market mechanisms. To complete the practical part by applying the correlation median. The correlation is presented by concrete data of the Macedonian economy for the period 2006/2016 and it reveals the correlation between investment, GDP and employment

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