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Home ECONOMY

Businesses in the region see ‘Open Balkan’ initiative as opportunity for economic growth

February 10, 2022
in ECONOMY, INTEGRATION, NEWSROOM
Open Balkans: On the right path or dead-end street (1)
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For the majority of the export-oriented companies in the countries in the region, i.e. 96.4 percent of them, the ‘Open Balkan’ initiative could open up opportunities to improve their work and economic growth, according to the first quantitative and qualitative research “Perception of Export-Oriented Companies in North Macedonia on the ‘Open Balkan’ Initiative”, conducted by the Analytica think tank. Of the companies, 89.3 percent don’t see any obstacles to economic cooperation.

However, 10.7 percent said there are certain obstacles related to long waits at the borders, a lot of fees, and too many administrative documents, and they believe it’s something that needs to be changed in the future. Analytica’s CEO, Tamara Mijovikj Spasova, pointed out that almost seven out of ten companies said export conditions are constantly promoted, whereas three said they are in stagnation.

The perception of many of them is that the procedure when exporting to the EU is simpler and faster, and they expect the same when exporting to the region in order to enable greater economic cooperation in the interest of all countries.

“Almost 80 percent of the respondents believe the ‘Open Balkan’ initiative will completely facilitate movement of people, whereas 17.2 percent said it will largely facilitate it. Only 3.4 percent of the companies believe the initiative won’t change anything,” said Mijovikj Spasova.

She noted the research has shown that most of the respondents believe that in terms of movement of capital, direct investments need most facilitation with 41.7 percent. Prime Minister Dimitar Kovachevski who attended the beginning of the presentation believes the ‘Open Balkan’ initiative opens up an opportunity to remove borders as administrative barriers, and enables the four European freedoms of movement – free movement of persons, free movement of goods, freedom to establish and provide services, and free movement of capital.

Therefore, he added, he expects that in addition to North Macedonia, Albania and Serbia, the other countries will also join the initiative.

“The initiative could lead to the consolidation of the market to which countries in the region will have access. In this way, we’re connecting the economies, we become more competitive, and even more ready for further development,” Kovachevski said. According to him, the initiative means economic connection with a clear intention for the citizens in the countries to have direct economic benefits.

The ‘Open Balkan’, he stressed, is not an alternative to EU membership, but a complementary activity to practice European values at a regional level. Foundation Open Society – Macedonia CEO, Fani Karanfilova-Panovska, the organization with whose support the research was carried out, pointed out that the ‘Open Balkan’ initiative was, above all, about overcoming obstacles to economy and trade, however, he added, social obstacles as well which impede growth in general, particularly economic growth in the region.

“The implementation of the four freedoms and the establishment of a single regional market based on the EU market, has a huge potential to stimulate trade and exchange, stimulate and increase employment, increase and economize the use of resources in the region, as well as increase investments. That is, increase economic development and thus, not only facilitate the life of the citizens, but improve it in the medium and long term,” Karanfilova-Panovska said.

She added that as an initiative for cooperation the ‘Open Balkan’ is an initiative for a better common future that not only offers a better living standard for all, but also security and peace, and an initiative that will leave behind misunderstanding between neighboring countries in the region.

According to the Analytica think tank, the main goal of the analyses presented on Wednesday is a comprehensive mapping of key actors and their positions and draft-proposals to improve and strengthen cooperation as part of the ‘Open Balkan’ initiative.

Source: MIA
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