Speeches, Remarks & Statements in 2008

Ambassador Reeker’s Remarks for European Business Association Event “Macedonia in Year 2009”

December 18, 2008

I want to thank the European Business Association and Nikolai Beckers for inviting me to join this forum.  I am very pleased to have been invited to join such a distinguished panel – it’s always an honor to join Ambassador Fouere and Ambassador Fillipini.

I particularly appreciate being given the opportunity to share reflections on the past year and even more to assess where we are headed in the coming year.

While 2009 will present serious challenges worldwide, I believe that significant opportunities will still open up to Macedonia.  It is my hope and that of the United States that Macedonia will position itself to make the most out of the opportunities and will continue to join its international partners in meeting the challenges.

The big thing on everyone’s mind right now is the current global economic crisis.  Macedonia ducked harm from the credit crunch largely because of limited links to major financial markets.  However, the global recession has led and will lead to postponed investments and reduced demand for Macedonia’s exports.  We have already seen reports of difficulties in Macedonia’s mining, metals, and textile industries. 

I wish I could present a quick and easy plan to resolve the problem.  I can’t.  But the United States is working together with our partners to coordinate efforts to alleviate the worst effects of the crisis and to promote speedy economic recovery. 

Many challenges lie ahead, but we have taken the necessary steps in our country and in partnership with the international community to put us on the right path to recovery and an eventual return to prosperity.

Excesses in our system have built up over many years, and it will take time to work through them.  But the important fact is that the economy will grow stronger and recover.  The smart money is looking now for places to invest in the future.

The United States remains committed to supporting economic development and institutionalization of reform in Macedonia.  Many of you are familiar with the Declaration of Strategic Partnership and Cooperation between our governments which made clear our support for “a democratic, secure and prosperous Macedonia.”

It was in the spirit of this Declaration that I accepted the invitation to speak to the Government’s Business Forums in the U.S. cities of San Francisco and Chicago last month.  People have asked why I would take part in an event to promote Macedonia, particularly at a time when the economy worldwide is having such difficulties.

The answer is twofold.   First, I believe Macedonia holds excellent opportunities for US businesses seeking opportunities.  Second, U.S. companies investing and doing business in Macedonia help to further our goal of supporting the country as it implements and institutionalizes reform.  Honest and transparent business practices will win out as more companies demand these practices be followed in all arenas of business, including government tenders, the judiciary and methods for dispute resolution, and in regulation.

The Roadshow certainly raised Macedonia’s visibility to U.S. businesspeople and investors.  It was an opportunity to share the country’s accomplishments.  After all, the Government has taken impressive steps to attract investment, including reduction of bureaucracy and simplification of administrative procedures through eliminating red tape and the introduction of flat taxes and one-stop shopping for registration of businesses.

However, today’s economic environment is a tough one, with countries competing strongly to attract foreign investment to their markets.  We acknowledge the efforts of the Macedonian government in attracting foreign investors; Macedonia needs to be attractive not only to investors, but also to businesspeople looking to sell and trade in the market.

Investors and businesspeople need to know that they can work in a predictable business climate, which includes enforcement of the rule of law, stable legislation, prudent and impartial regulatory standards, enforcement of contracts, and full respect for property rights.  These reforms need to be a part of Macedonia’s present, not only its future.

For our part, the United States will continue to work to increase the competitiveness of Macedonian businesses through USAID projects focused on improving market strategies, helping firms to access credit, and identifying opportunities such as niche markets.   We are also working on helping to improve the competitiveness of Macedonia's workforce to meet investors and business' needs, but it will surely need input from the businesses on identifying the demand, and the engagement of the academic institutions in adjusting curriculums to best match the needs of the real sector.

We are also engaged in projects to build efficiency and transparency, including e-Government, which recently received favorable coverage in the International Herald Tribune.

We are also working closely with the government to help it build capacity and develop expertise in the civil service in key areas such as public procurement, information technology skills, and public-private partnership.  It is critical that these professionals are not subject to politically motivated turnover and are able to contribute to the long term success of the country.

In 2009, we hope that the Government will seize opportunities to strengthen reform, even in these difficult economic times.  There is no excuse for delaying or slowing the pace of reform.

The Macedonian government must make sure that there is a level playing field for all businesses, both domestic and international, and ensure that a strong judiciary is in place and that regulatory processes are completely transparent, so that business can flourish. 

The courts are the cornerstone of a democratic society governed by the rule of law.  An independent, fair, transparent, and effective judicial system is essential to Macedonia’s efforts to develop democratic institutions, promote business investment, and fight organized crime and corruption.

The appointment, promotion and removal of judges, as well the hiring and removal of court staff should be merit based and should exclude any political influence in order to ensure independence of the judges and the judiciary as a whole in performing their mandated functions.  This is another area where we and others in the international community have invested in the training of legal personnel.  Their unwarranted removal is both a waste of our resources and a loss for the country. 

An independent, well-functioning judiciary is, after all, what all businesses seek and expect when they search for investment opportunities

As we look forward to the New Year, I recognize that there will be a host of other issues not directly related to the economy.  Although I have chosen to focus on the economy for my discussion today, I recognize that these developments and challenges will also affect Macedonia’s future. 

In terms of the changes in my country, there will, of course, be a new presidential administration in the U.S. beginning in January.   I wish to underscore that despite the change of administration, U.S. policy towards Macedonia remains focused on supporting the country’s efforts toward full integration into Euro-Atlantic organizations.

In terms of NATO, we were all very disappointed that Macedonia did not receive an invitation to join NATO in April of this year.  The United States’ support for Macedonia’s membership remains solid.  I acknowledge that the name issue is difficult and emotional.  But I encourage you as business leaders to think pragmatically and encourage a compromise that is fair and reasonable and that secures the people of Macedonia the best possible future.

Macedonia has met NATO standards, but this should not be taken for granted.  Serious reform is a continuing process, not merely a box to be checked.  It is important to continue on the road of reform so that Macedonia remains an attractive partner and contributor.

March Elections are very important.  We all know that it is a basic right of all citizens of Macedonia to express their democratic will in a free and safe fashion, and to have their votes counted fairly and accurately.  There should be no tolerance for electoral violence, intimidation or irregularities.  

The problematic June elections initially denied some citizens the right to vote in a safe environment.  There were electoral irregularities which denied many citizens the right to have their individual votes counted equally. 

Macedonia must work to implement the recommendations offered in good faith by the Office for Democratic Institutions and Human Rights of the Organization for Security and Cooperation in Europe (ODIHR/OSCE), of which of course the United States is also a member.  Those recommendations were offered following the June elections and can rectify shortcomings ahead of the elections scheduled for March 2009 at the local level and as you elect a new president.  All citizens of Macedonia deserve and expect free and fair elections in March. 

Macedonia is a candidate country for the EU and should be a NATO member; you should have elections worthy of this status.

There’s no question that 2009 will present challenges.  My hope is that the opportunities are not lost, but instead are seized.  The United States will support Macedonia in doing so. But the ultimate arbiters of Macedonia’s progress toward a stronger economy and deeper integration will be the citizens of Macedonia and the leaders they have elected to guide their country forward.