Hidden Economy in Macedonia Policy Brief 3: Hunting the Shadows – Tax Evasion Dynamics in Macedonia

Author(s): Author Not Specified,Center for Research and Policy Making CRPM / Language(s): English

The Center for the Study of Democracy, in collaboration with the Center for Research and Policy Making (CRPM) elaborated a series of policy briefs analyzing the hidden economy in Macedonia. The topics encompass the issues of countering undeclared labour, tax evasion and fraud, media reporting on hidden economy and corruption, etc. According to estimates in 2013 the European Union lost around 1 trillion EUR in public revenues annually due to tax evasion and fraud. Given that EU's GDP summed up to 12.7 trillion EUR in 2013, tax evasion and fraud represented 7.9% of its annual GDP. The current policy brief stresses that as a middle-income country, which is still reforming its tax authority, tax system and related measures against tax evasion and fraud, one can reasonably assume that Macedonia should expect at least a similar rate to GDP of tax evasion and fraud (7.9%) or at least 700 mln. EUR on an annual basis. On the one hand, it negatively affects the competitive position of the companies that pay their taxes vis-a-vis the ones that evade taxes. On the other hand, it affects all citizens, as it undermines the everyday functioning of public services, (like healthcare, education, security, infrastructure etc.), which otherwise would have had better quality and extent. The authors underline several key points: tax revenues from pension and disability, and healthcare contributions in Macedonia have increased recently despite the lowering of tax rates; according to the Public Revenue Office tax evasion and issuance of cash register receipts were the leading causes for reporting irregularities throughout the period 2006-2013; the hidden economy survey among businesses has shown that half of interviewed companies agree that the tax system is good and stimulating for the development of businesses; but less than half (46.7%) of citizens reported to always receive receipts when buying groceries; and 1/3 of businesses reported that ‘manipulating VAT’ and ‘employing accounting tricks in order to pay lower taxes’ happens in their sectors.

Лов на сенки - динамиката на даночното затајување во Македонија

Author(s): Author Not Specified,Center for Research and Policy Making CRPM / Language(s): Macedonian

The Center for the Study of Democracy, in collaboration with the Center for Research and Policy Making (CRPM) elaborated a series of policy briefs analyzing the hidden economy in Macedonia. The topics encompass the issues of countering undeclared labour, tax evasion and fraud, media reporting on hidden economy and corruption, etc. According to estimates in 2013 the European Union lost around 1 trillion EUR in public revenues annually due to tax evasion and fraud. Given that EU's GDP summed up to 12.7 trillion EUR in 2013, tax evasion and fraud represented 7.9% of its annual GDP. The current policy brief stresses that as a middle-income country, which is still reforming its tax authority, tax system and related measures against tax evasion and fraud, one can reasonably assume that Macedonia should expect at least a similar rate to GDP of tax evasion and fraud (7.9%) or at least 700 mln. EUR on an annual basis. On the one hand, it negatively affects the competitive position of the companies that pay their taxes vis-a-vis the ones that evade taxes. On the other hand, it affects all citizens, as it undermines the everyday functioning of public services, (like healthcare, education, security, infrastructure etc.), which otherwise would have had better quality and extent. The authors underline several key points: tax revenues from pension and disability, and healthcare contributions in Macedonia have increased recently despite the lowering of tax rates; according to the Public Revenue Office tax evasion and issuance of cash register receipts were the leading causes for reporting irregularities throughout the period 2006-2013; the hidden economy survey among businesses has shown that half of interviewed companies agree that the tax system is good and stimulating for the development of businesses; but less than half (46.7%) of citizens reported to always receive receipts when buying groceries; and 1/3 of businesses reported that ‘manipulating VAT’ and ‘employing accounting tricks in order to pay lower taxes’ happens in their sectors.

GREY Working Paper No. 3: Tackling the Undeclared Economy in FYR Macedonia, a Baseline Assessment

Author(s): Rositsa Dzhekova,Josip Franic,Lyubo Mishkov,Colin C. Williams / Language(s): English

This working paper is an output of the European Commission’s FP7 "Marie Curie Industry-Academia Partnerships and Pathways" (IAPP) project entitled "GREY - Out of the shadows: developing capacities and capabilities for tackling undeclared work in Bulgaria, Croatia and FYR Macedonia". Ms Rositsa Dzhekova and Mr. Lyubo Mishkov, Center for the Study of Democracy, and Prof. Colin C. Williams and Mr. Josip Franic, GREY-IAPP, Sheffield University Management School, University of Sheffield elaborated the report in July 2014. This report provides a detailed review of available evidence on the extent and nature of the undeclared economy in the Former Yugoslav Republic of Macedonia (FYROM), as well as on the institutional actors involved in tackling the phenomenon and their policy approach and measures used.

Media note: Budget Revision for 2013: inconsiderate, vague and anti-social?

Author(s): Author Not Specified / Language(s): English

Budget revisions are usually a sign of economic instability and are therefore justified by two main reasons: a serious unexpected economic crisis and/or the introduction of vital new policies. The government’s declaration that the 2013 budget needs to be revised and the Prime minister’s explanation for this proposal in Parliament does not include convincing details related to the aforementioned reasons. The additional instability that this amendment would place on the economy, calls for careful analysis and consideration hasty of the possible scenarios in which a revision is necessary.

Are Bulgarian consumers willing to pay for clean energy?

Author(s): Author Not Specified / Language(s): English

Bulgarian households pay the lowest price of electricity in Europe in absolute terms. Price increases are inevitable to cover costs of new investments in production and transmission. Bulgaria has signed binding agreements within the European Union to achieve 16% of final or energy consumption from renewable energy sources (RES) by 2020, which will bring further pressure on prices for final consumers. Are Bulgarian households ready to foot the bill of more expensive electricity? How much more are they willing to fork out of their budget for green energy? A mere 13% of Bulgarian households are willing to pay extra for clean energy. Of those 82.5% would only bear a modest increase in their electricity bills – with up to 10%. Willingness to pay a ‘green energy premium’ is directly linked to the level of income. Low income households support cheaper although ‘dirtier’ energy. 63% of the population has used wood for heating, which remains the cheapest energy source. This shows that sustainable development through RES is not readily supported by Bulgarian consumers and there is a need of economic stimuli and campaigns to activate people and businesses in that direction. The Bulgarian government needs to balance carefully between new investments and the effects of price increases on socially and energy vulnerable members of society.

Start-Up And Development Of Private Electronic Media In Bulgaria, September 1994

Author(s): Georgi Sarakinov / Language(s): English

The state monopoly on air frequencies first began to crack as early as 1990 and 1991 when the Council of Ministers consented on several occasions to license the experimental rebroadcasting of foreign radio stations, namely the Voice of America, Radio Free Europe (RFE), BBC, Radio France Internationale and Deutsche Welle on designated channels.

Migration and Development in Albania and Macedonia: the effects of remittances on education and health of family members left behind

Author(s): Author Not Specified / Language(s): English

Albania and Macedonia as traditionally migrant sending countries have experienced unprecedented migration and the end of this process is not in sight, it continues unabated. Emigration is reshaping Albania and Macedonia affecting local politics, economies and priorities, including the education and health of the family members left behind. As regards the effect of migration and remittances on education and health outcomes, the focus on Albania and Macedonia is crucial as there has been year on year low schooling and low health outputs in both of these countries. Children’s school attendance rates and literacy rates as well as health status are relatively low, leaving significant room for improvements in educational attainment and healthcare. The education might be publicly provided, however many families cannot afford to pay for it for their members due to several expenses related to school attendance such as transport, textbooks, supplies, or other implicit costs such as losses in family members with the migration. The importance of migration and of remittances for the migrant sending countries is measured also by the well-being of their recipients in terms of improved health status and in particular the health of the children. Remittances in volumes are high, and have become an increasing source of household income. Very interesting question is whether this increasing source of income has an impact on human capital accumulation decisions, including on schooling and healthcare. Many migrant sending families receive considerable financial transfers from their family members living and working abroad. Remittances help the population in migrant sending countries to cope with the distress of poverty, the inefficiencies of local labor markets and the break-down of the social security system.

Mezi péčí a prací: diskriminace na trhu práce a jak se jí bránit

Author(s): Anna Kotková,Jarka Švarcbachová / Language(s): Czech

Na křižovatce pracovního a osobního života: možnosti a bariéry

Author(s): Eva Fialová,Pavlína Jiřkovská,Edita Janečková,Lucie Slauková / Language(s): Czech

№268. In search of symmetry in the eurozone

Author(s): Paul De Grauwe / Language(s): English

One of the major problems of the eurozoneis the divergence of the competitive positions that have built up since the early 2000s. This divergence has led to major imbalances in the eurozone where the countries that have seen their competitive positions deteriorate (mainly the so-called ‘PIIGS’ –Portugal, Ireland, Italy, Greece and Spain) have accumulated large current account deficits and thus external indebtedness, matched by current account surpluses of the countries that have improved their competitive positions (mainly Germany).

Position, Inclusion and Rights of women belonging to minority and marginalized groups in Bosnia and Herzegovina

Author(s): Aida Malkić,Emina Bošnjak / Language(s): English

Although the Law on Prohibition of Discrimination and the Gender Equality Law regulate and offer legal protection from discrimination on grounds that would affect women and girls from minority and marginalized groups (intersection of sex/gender with age, disability, sexual orientation and gender identity, etc.), as well as affirmative measures that would lead to their full inclusion in the all spheres of public life, the women and girls belonging to minority and marginalized groups are rarely, almost never, included in the decision - making processes, public policies, plans, measures and activities particularly in the areas of education, health and labor market, reforms of labor, social and pension system (women with disabilities, women with children with disabilities, returnees and internally displaced women, long-term unemployed women, survivors of gender-based or war time violence, single mothers, women in rural areas, Roma women, LBT women and elderly women). They are even more exposed to rights violations and less aware of the mechanisms to claim them.

Ekonomske Mogućnosti za Žene iz Malih Lokalnih Zajednica u Bosni I Hercegovini

Author(s): Marija Knežević / Language(s): Bosnian

Članice Ujedinjenih naroda su 1979. godine usvojile Konvenciju o eliminaciji svih oblika diskriminacije nad ženama (UN CEDAW) kojom su žene dobile međunarodno-pravni instrument u borbi protiv diskriminacije na osnovu spola i da jure priznavanje jednakih ljudskih prava, ali i njihovo de facto ostvarivanje. Sistem zaštite prava iz Konvencije znatno je ojačan usvajanjem Opcionog protokola koji je postao dodatni međunarodni nadzor zaštite ženskih prava koji provodi Komitet za eliminaciju diskriminacije žena kroz pojedinačne pritužbe i istragu o teškom ili sistemskom kršenju prava žena.

Pozicija, uključenost i prava žena koje pripadaju manjinskim i marginaliziranim grupama u Bosni i Hercegovini

Author(s): Aida Malkić,Emina Bošnjak / Language(s): Bosnian

Iako Zakon o zabrani diskriminacije i Zakon o ravnopravnosti spolova propisuju i nude pravnu zaštitu od diskriminacije na osnovama koje pogađaju žene i djevojčice pripadnice manjinskih ili marginaliziranih grupa (u kontekstu intersekcionalnosti spola/roda sa starošću/godinama, invaliditetom, seksualnom orijentacijom, rodnim identitetom itd.), kao i afirmativne mjere koje bi trebale voditi ka njihovoj punoj uključenosti u sve sfere javnog života, žene i djevojčice koje pripadaju marginaliziranim grupama i manjinama (žene sa invaliditetom, majke djece sa invaliditetom, povratnice i interno raseljene žene, žene koje su nezaposlene duži vremenski period, žene koje su preživjele rodno zasnovano, ratno i porodično nasilje, samohrane majke, žene sa sela, Romkinje, LBT i starije žene) su rijetko, gotovo nikako, uključene u procese donošenja odluka, javne politike, planove, mjere i aktivnosti u oblastima obrazovanja, zdravstva, rada i zapošljavanja te reformi socijalnog i penzionog sistema.

Abordări ale EXCLUZIUNII SOCIALE în Republica Moldova. Aspecte metodologice şi analitice

Author(s): Maria Vremiş,Viorica Craievschi-Toartă,Anatolii Rojco,Diana Cheianu-Andrei / Language(s): Romanian

Creating the conditions for improving the quality of life of the population by developing an economically competitive society, based on knowledge, capable of sustainable economic growth, jobs and high social cohesion is the fundamental objective of the National Development Strategy for 2008 -2011 (SND) of the Republic of Moldova. However, the problems of poverty continue to persist both nationally and globally, prompting experts in the field to investigate the causes and mechanisms that favor this condition in order to reduce the risks of social exclusion. // PUBLISHED BY UNDP (MOLDOVA), UNIFEM UNITED NATIONS DEVELOPMENT FUND FOR WOMEN, NATIONAL BUREAU OF STATISTICS (MOLDOVA)

3.000,00 neto

Author(s): Dejan Ilić / Language(s): Serbian

Ako je „jedini“ put da ponovo živimo normalno, kako to stoji u saopštenju vlade, zašto vakcinacija nije obavezna? Ne samo što se usteže da iskoristi moć i ako treba pod prinudom vakciniše sve žitelje Srbije, vlada očito neće ni barem lekare i druge zdravstvene radnike da obaveže da prime vakcinu. Umesto da prihvati odgovornost za „jedini“ put, čvrsto uverena da je baš tako, da postoji samo taj „jedan“ put, ona se odriče od odgovornost i svaljuje je na leđa žitelja Srbije.

Klimatske promene, kovid i globalna nejednakost

Author(s): Branko Milanović / Language(s): Serbian

U jučerašnjem blogu ponovo sam kritikovao osobeni način mišljenja popularan među zagovornicima ograničavanja ekonomskog rasta koji opisujem kao „magijski“ ili kvazireligijski. Činio sam to i ranije, u prikazu veoma zanimljive, ali sasvim „magijske“ knjige Kate Raworth, kao i u debati sa Jasonom Hickelom. Vreme je da postavimo pitanje: kako bi se o klimatskim promenama moglo razmišljati na ne-magijski način?

Integracja ubezpieczeń środowiskowych i systemów zarządzania środowiskowego według ISO 14001 – raport z badań

Author(s): Malwina Lemkowska / Language(s): Polish Publication Year: 0

The article is a summary of research on the actual and potential integration of environmental insurance and ISO 14001 environmental management systems (EMSs) in Poland. The aim ofthe research is to analyze the relationship of the above-mentioned instruments of environmental risk management and to identify the factors determining the propensity of enterprises to implement such elements of the system that will increase the usefulness of ISO 14001 standards for insurance purposes in the future. The data for the study were obtained through an asynchronous group interview conducted on the Bulletin Board platform among insurance sector experts and through a survey of organizations that implemented the ISO 14001 system in Poland. Template analysis of qualitative data, supported by narrative techniques and statistical analysis based on the chi-square test of independence, U Mann–Whitney test, Kruskal–Wallistest, Spearman’s rank correlation coefficient were used to interpret the data. Environmental management systems according to ISO 14001 are not, in their current form, used in the process of providing insurance cover for environmental risk. Organizations managed according to ISO14001 rarely design and implement solutions useful to insurers. The latter, however, are statistically significantly correlated with the awareness attributes of the organization. Awareness attributes were also strongly related with the variables describing the propensity to implement additional – useful for insurance purposes – EMSs elements. The strongest motivators for the above, however, were of a non-insurance nature (e.g. obtaining tax credit).

Propunere listă de indicatori de performanţă pentru oraşul inteligent

Author(s): Lucian-Marian Pavel / Language(s): Romanian Publication Year: 0

The notion of smart cities has emerged as an essential solution for tackling the significant challenges facing contemporary society, including rapid urbanization, climate change and globalization. Smart cities harness state-of-the-art technologies like the Internet of Things (IoT), Big Data, Artificial Intelligence (AI) and Machine Learning (ML) to enhance various aspects of urban life, spanning from living conditions and work environments to information accessibility, social interactions and environmental sustainability. This technological integration offers numerous benefits, accelerating infrastructure development and improving residents' quality of life. Standardization and the incorporation of international standards, such as ISO 37120, ISO 37122 and ISO 37123 play a crucial role in assessing city performance. Romania's adoption of these standards represents a significant step towards evaluating and improving its cities. However, for efficacious implementation, it is imperative to develop implementation guidelines and provide support and training to local authorities. A comprehensive list of 95 performance indicators, categorized into six domains, can provide cities with essential tools for assessing and monitoring their progress towards becoming smart cities and promoting sustainable development. Customizing these indicators to match the unique characteristics of each city and fostering close collaboration with local communities, organizations and experts are crucial aspects for shaping and overseeing strategic objectives that positively influence the quality of life and sustainable urban development. This personalized approach is vital for the successful realization of smart cities.

IN SOCIALIST YUGOSLAVIA 1945-1990

Author(s): Zdenko Radelić / Language(s): English Publication Year: 0

The KPJ publicly advocated democracy, private property, a just solution to the social and national issues, and freedom and equality for all nations in Yugoslavia. Its leaders claimed that the goal of the partisan movement was liberation and popular democracy. However, contrary to the declared nationwide breadth of the People’s Liberation Movement, the KPJ held the army, the security apparatus, and the propaganda. The agreement between Josip Broz Tito and Ivan Šubašić that the citizens of Yugoslavia would be the ones to decide on the state system after the war was an important precondition for the international recognition of the Democratic Federal Yugoslavia (Demokratska Federalna Jugoslavija, DFJ) by the Allied powers. But the monopoly over the partisan movement enabled the Communists to create the preconditions for imposing their dictatorship. Thus, the KPJ used the struggle for the liberation of Yugoslavia – in Croatia and Bosnia and Herzegovina also for the overthrow of the NDH – and for resolving the national question to seize power and carry out the Communist revolution. It also meant abolishing all other parties and introducing a dictatorship. Part of the HSS leadership and its president Vladko Maček fled the country just before the partisans arrived in Zagreb in 1945. The HSS operated abroad under Maček’s leadership until his death in 1964 in the United States, when he was replaced by the party’s vice president, Juraj Krnjević. August Košutić, the party’s secretary, remained in the country, where after trying to cooperate with the Communists and join the partisans he was interned and completely marginalized by the new government. In addition to the HSS, there were individuals, parties, and organizations from the Ustasha movement who were politically active in exile, including Ante Pavelić, who died in 1959 in Spain of wounds obtained in an assassination attempt.

Strategie firm w obliczu sankcji nałożonych na Rosję

Author(s): Beata Stępień,Szymon Truskolaski / Language(s): Polish Publication Year: 0

Purpose: In this chapter, we analyse how companies responded to sanctions imposed on Russia after its invasion of Ukraine. We examine the impact of selected external (public-legal pressure, the size of sanctions and crisis caused by the war) and internal factors (strategic agility, code of ethics and sustainable conduct) on the degree of compliance with sanctions and the type of adaptation strategies adopted. Design/methodology/approach: The objects of the study are medium-sized companies from countries that have imposed sanctions (here, Poland, Germany and the US). The results come from an electronic questionnaire survey conducted in 2023 among 610 medium-sized companies operating in industries directly or indirectly affected by trade restrictions. Findings: The company’s code of ethics and the perceived severity of the crisis have the greatest impacton the approach to sanctions and respective adaptation strategies. At the same time, external and internal pressure affect companies in opposite directions, with consequences for their adaptation strategies.