Competitiveness DPL

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This program document describes the programmatic Development Policy Loan (DPL) to the Former Yugoslav Republic of Macedonia (FYR Macedonia) to support the government's program for improving competitiveness of the economy. The DPL will support the government's program aimed at strengthening competitiveness, which is prioritizing the development of a stronger export-oriented enterprise sector. The program will support reforms that incentivize productive investment and technology upgrading in the manufacturing, agribusiness and trade logistics sectors; and put in place enabling conditions that can progressively increase labor market flexibility and skills development. The medium-long term objective is to create better job opportunities and increase the economic growth potential. The DPL will support reforms that incentivize investment and technology upgrading in manufacturing, agribusiness and trade logistics. In parallel, the DPL policy actions will lay the groundwork to increase labor market flexibility and the development of job-relevant skills. This operation is an important element of the 2010 country partnership strategy, directly advancing the outcomes under the Competitiveness pillar. The DPL will also contribute to the inclusive growth pillar in regards to improving employability by reducing impediments to hiring and to the green growth pillar in regards to aligning the agriculture sector with European Union (EU) requirements. The operation will contribute to deepening reforms for improved competitiveness, one of the main strategic priorities in the 2012 Europe and Central Asia (ECA) regional strategy, particularly by establishing good governance for improved business climate, and making education and training systems more accountable for relevant skills.