INSTITUTIONS' CAPACITY FOR GOVERNANCE AND ITS IMPACT ON THE GROWTH PERSPECTIVES IN REPUBLIC OF MACEDONIA

Abstract

The theory and practice have confirmed the importance of good governance and quality institutions for the economic growth. The issue of building well-functioning market economy and institutions supporting it is a rather pressing issue in Macedonia whose long term persistence of negative growth rates is largely due to the weaknesses of the institutional framework. This paper presents the functioning of the current institutional framework in Macedonia that significantly influences the growth dynamics and also gives some guidelines for reforms in selected areas of great importance for the growth (judicial system, public administration, protection of the property rights and e-governance).