Improved governance is a prerequisite for EU and NATO integration and development of the country. The Netherlands embassy therefore decided to highlight both the political and economic aspects of good governance, since they are equally important and closely related. Improved functioning of the state will be addressed by effective and inclusive state and democratic institutions, a functioning judiciary, a critical civil society and respect for transparency and accountability. Economic governance focuses on improved and transparent public finance management – taking into account the needs of specific groups of citizens - which ranges from budget formulation and execution to fiscal decentralisation. This will contribute to diminished corruption.

For several years, the Netherlands has been, in close co-operation with the World Bank, involved in the field of Good Public Finance Governance. The main activities are a Trust Fund at the World Bank to support the Public Sector Management Adjustment Program and PDPL (Program matic Development Policy Loan). Furthermore, the Netherlands has been providing macro support to Macedonia for several years, including  € 7 million provided in 2008.. This support has been and will remain subject to the progress made in the public sector reforms and sound macro economic policies.

The strategic objectives in the field of Good Public Finance Governance are:

• To contribute to a better and more transparent management of public finances.
• To contribute to Macedonia’s sound financial and economic policies.
• To contribute to a well functioning Ministry of Finance, focused on EU accession. 

Main activities

Title	Description activity goals	Project period
Twinning between the Directorate-General of Tax and Customs Administration of the Netherlands and the Macedonian Customs Administration	Provide technical assistance in the area of inward processing, simplified procedures, risk analysis, transit, origin of goods, etc.	2005 - 2009
Twinning between the Dutch Court of Audit and the MacedonianState Audit Office	Provide technical assistance to the State Audit Office in the field of auditing, human resource management, IT, etc	2005 – 2008
Revenue Administration Reform Project (implemented by the IMF and the Dutch Ministry of -Finance	Provide assistance in improving the capacity of Macedonia’s revenue administration at promoting voluntary compliance, providing services to businesses and individuals, and increasing the productivity of tax officers	2006-2009
PDPL Trust Fund	Provide assistance in promoting economic growth and job creation through reforms aimed at improvement of the investment climate and reforms aiming at strengthening governance an efficiency in the public sector.  Specifically, the project will help strengthen capacities within different public and GoM agencies to implement the required reforms	2006-2009
Technical assistance by the Dutch Ministry of  Finance to the Macedonian Ministry of Finance	Provide assistance to the Ministry of Finance in several areas, specifically debt management	2006-
EU CARDS Twinning project – Strengthening Public Internal Financial Control (implemented by the Dutch Ministry of Finance)	Further development of the Public Internal Financial Control system (PIFC) in Macedonia in accordance with the Acquis (Chapter 32) and strengthening of the administrative capacity for financial management and control and internal audit.	2007-2009
Co-operation between the Dutch and Macedonian Ministry of Finance under the MATRA programme	Peer to peer co-operation between experts from the Dutch and Macedonian Ministry of Finance in the field of improving the budget process and revenue forecasting.	2008-
Possible  MATRA Pre-Accession Programme (MPAP) on Strengthening Public Financial Internal Control (implemented by the Dutch Ministry of Finance )	Follow-up on the support for the PIFC in order to further develop the procedures and establish (institutional) capacity to have an EU-proof financial system within the government.	2009-2010
Possible  MATRA Pre-Accession Programme (MPAP) on Strengthening the capacities of the State Audit Office (implemented by the Netherlands Court of Audit )	Technical assistance to the State Audit Office to build and strengthen its capacity in order to be capable to fulfil its role in implementing and enforcing the acquis communitaire (chapter 32)	2009-2010

Mrs. Arlinda Idrizi, Advisor Financial Affairs, e-mail:

 arlinda.idrizi@minbuza.nl

Internet links

 The Macedonian Ministry of Finance 

 The Netherlands Ministry of Finance

 

World Bank in Macedonia

 IMF in Macedonia

Good Governance: Political Priorities

Mr. Martijn Lucassen, Second Secretary, e-mail:

 martijn.lucassen@minbuza.nl

Mrs. Beti Bakovska, Advisor Development Co-operation, e-mail:

 beti.bakovska@minbuza.nl

- NL policy on human rights:

 http://www.minbuza.nl/en/themes,human-rights/human-rights

- NL policy on good governance:

 http://www.minbuza.nl/en/themes,poverty-reduction/good-governance