A new project aimed at detecting and reducing the informal economy was launched in North Macedonia.
It aims to map out the sectors where the informal economy is most prevalent and identify the main causes for its occurrence. The Public Finance Management Reform project was launched by the Ministry of Finance of the Republic of North Macedonia and the United Nations Development Programme (UNDP). Its implementation is made possible thanks to financial and expert support of the Ministry of Finance of the Slovak Republic.
Slovak know-how
Slovakia has made public financial management one of the key areas of its development cooperation, and uses its know-how to help other countries. It has partnered with North Macedonia since 2018 via the regional Public Finance for Development Programme to reinforce the capacities of the Ministry of Finance and the Public Revenue Office. Along with the fight against tax evasion and tax fraud, fiscal decentralization and fiscal efficiency, and the procurement of public goods and services, the programme activities are centred around the informal economy as well.
Project focus
Some 60 percent of the world’s population participates in the informal sector, the International Labour Organization estimates. The informal economy is central to the economic development process, yet difficult to measure. As it is important to try, national and international experts are, within this project, already working on a study outlining the reasons and the indicators to reduce the informal economy. The project focuses on practical actions and developing efficient mechanisms in four priority areas:
- improving the process of measuring, monitoring and detecting the informal economy,
- more effective inspection services,
- improved business environment for growth and development of businesses,
- and public awareness raising.
The project was introduced during a conference held in Skopje at the end of September 2021, entitled Detecting and Reducing the Informal Economy in the Republic of North Macedonia.
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