Increasing the welfare effect of the agricultural subsidy program

for food crops in Macedonia- Policymaker’s perspective -

Dr. Nikica Mojsoska BlazevskiAdviser

Ministry of Labour and Social Policyof the former Yugoslav Republic of Macedonia

UNCTAD Vi seminar on trade and poverty8-10 September, 2014Geneva, Switzerland

Policy recommendations from the study• Policymakers should put particular emphasis/increase

subsidies on poor female-headed rural households for both wheat and rice production; • Policymakers should increase the subsidy for rice

production due to the large investments required to initiate this new activity; and• Policymakers should offer the usufruct of state-owned

land and start-off grants for poor urban households to get them into the production of wheat and maize

Usefulness of recommendations• The Subsidy Program in Agriculture has been designed back in

2006/07• No special obstacle to changing its structure• However, its administration and monitoring may become cumbersome

and costly

• Perspective of the Ministry of Agriculture• Increase agricultural production, keeping an eye on price reactions

(forced production may deteriorate the price)

• Perspective of the Ministry of Labor and Social Policy• Reduce poverty• Hence, recommendations may be more relevant for the MLSP’s

perspective, but the implementation lies with MA• Coordination may be needed to fully reap the effects

Cooperation

• Policymaker-researcher cooperation – a scarce ‘resource’ in Macedonia• Researchers of economic/development issues are few• Policymakers have limited awareness of research usefulness

• This particular case• Encouraging: the policymaker followed the research all the way

through• May have affected thinking in direction which is different than the

official policy• May lay ground for policy changes (or, better, adjustments)

• Cooperation should be encouraged (conditioned?) by donors