Publication: North Macedonia Climate - Public Finance Review: Integrating Climate Change Perspectives into Fiscal Policy
Loading...
Other Files
14 downloads
Published
2024-07-08
ISSN
Date
2024-07-08
Author(s)
Editor(s)
Abstract
North Macedonia’s economy is expected to show moderate growth in the medium term, with public finances continuing to be stretched. Although the country anticipates positive medium-term economic prospects, economic headwinds like geopolitical tensions and conflicts, and energy supply and price uncertainties pose significant challenges. Increasing expenditures and slowing revenue growth has seen fiscal space tighten, with public debt reaching 62 percent of GDP, with further increases ahead. The progressive impact of a changing climate brings new challenges and makes the achievement of North Macedonia’s development goals much more difficult. This may complicate the country’s ability to achieve its climate goals while preserving fiscal sustainability given climate change presents additional strains on public finances. This report aims to highlight the links between climate and government finances - identifying the relevant risks and opportunities, while explaining how fiscal policy can help achieve climate objectives while also delivering economic, fiscal, and social outcomes.
Link to Data Set
Citation
“World Bank. 2024. North Macedonia Climate - Public Finance Review: Integrating Climate Change Perspectives into Fiscal Policy. © World Bank. http://hdl.handle.net/10986/41834 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Implementing the Agenda of the Namibian Ministry of Environment and Tourism : A Rapid Country Environmental Analysis with a Public Expenditure Review for Aligning Policy, Institutional and Financing Priorities(Washington, DC, 2008-12)This report is organized around three thematic chapters. Chapter one looks at the contribution of the environment and tourism sector to the Namibian economy as well as at some key achievements and challenges. Chapter two describes the policy and legislative framework, and the institutional analysis of the environment and tourism sector. Chapter three examines the financing of the sector and some key budget management issues. And finally in chapter four of volume one, a set of recommendations and short- and medium-term actions are proposed that aim to assist the Ministry in the implementation of its up-coming work programs as well as the strategic plan. Chapter four of volume two includes the assessment of the financing of the sector at the local level using the example of the Erongo Region.Publication Accessing International Climate Change Related Finance in Latin America and the Caribbean(Washington, DC, 2013-06-14)Financing projects and programs to mitigate impacts of, and adapt to, the climate change is a matter of necessity not choice. This green expenditure policy note looks at factors facilitating the access to international financial instruments for Latin America and the Caribbean (LAC) countries that support mitigation of and adaptation to climate change. This policy note explores two questions: (i) does the quality of government institutions matter for enabling action aimed at mitigation or adaptation to the climate change?; and (ii) what financial instruments are available to governments in addition to own resources to address climate change challenges? This policy note aims to present them with advice on how to achieve greater access to international financing or co-financing of projects supporting renewable and alternative energy generation for transport, agriculture, housing, preservation of unique ecosystems, and other projects supporting sustainable development. This policy note describes the climate challenges facing the LAC region and then discusses the various climate financing flows. It discusses the factors affecting LAC countries' access to climate financing, and how countries can apply to several of the principal global and regional climate funds. The objective is to disseminate knowledge that will help governments of all LAC countries, and particularly finance ministries, understand and access new climate funds and financing mechanisms. The policy note consists of three parts: part one reviews the global landscape of the climate change financing for mitigation and adaptation and emerging trends, identifies various financial instruments, and presents an overview of the LAC's share of available finances from several public financing sources, both bilateral and multilateral. Part two reviews two case studies for Bolivia and El Salvador that demonstrate how each of these countries addresses environmental challenges through its policies, institutional systems and involvement of the civil society. Part three includes technical annexes, which represent a compilation of technical information presenting main climate change financial instruments. A list of global and specialized climate funds of possible interest to LAC countries appear in annex one. A complementary list of climate finance instruments appears in annex two, in which climate funds as well as financial tools are named, described, and categorized according to their primary purpose. A more detailed description of several of the largest climate funds including when such funds were founded, their purpose, and eligibility requirements are presented in annex three. Annex four provides a step-by-step description of how to apply to the largest climate funds. Annex five lists the LAC projects that have been supported by Global Environment Facility (GEF) by country.Publication Monitoring Climate Finance and ODA(Washington, DC, 2010-01)The first major part of this paper focuses on tracking, monitoring, and reporting various types of flows, primarily from ODA (Official Development Assistance) and other public sources but also from private sources. It briefly reviews available information on various current and upcoming financial and investment flows to support climate action in developing countries as a first step in assessing the challenges associated with monitoring such flows. It considers both climate finance (the amount of additional resources required to catalyze the shift of a much larger volume of public and private development investments to climate friendlier options) and underlying finance (the almost 10 to 20 times larger amount of financial and investment flows in developing countries that must increasingly focus on climate action). The next part of the paper focuses on possible ways of tracking additionality in ODA flows, with the aim of stimulating a discussion within the World Bank Group (WBG) and its partners on this issue. It describes the various perceptions of different groups of countries as well as possible baselines, benchmarks, and tools for tracking progress. Increasingly reliable, comprehensive, and transparent reporting is needed to demonstrate that new climate finance instruments are not introduced at the expense of those targeting other objectives. The final section provides proposals for further action by industrial and developing countries, the U.N. system and multilateral development banks (MDBs).Publication FYR of Macedonia : Public Expenditure and Institutional Review(Washington, DC, 2002-04-02)The review was undertaken, and completed against a background of substantial political economic disruption: the Kosovo crisis of 1999 threatened to undermine the country's accomplishments in building macroeconomic, and fiscal stability; and, the security crisis of 2001, tested once again Macedonia's political, and economic integrity. Both instances were successfully surpassed, showing significant steps towards becoming a market oriented state within the European context, and, in its willingness to accept, and ratify the Peace Agreement of November 2001. But, expenditure pressures rose, leading to additional spending, while revenues declined owing to economic weakness, and decreased tax enforcement; clearly, fiscal stability stands on the balance. Not surprising, the quality of expenditures became an important issue, for although acceptable aggregate targets were being achieved, the budget's economic composition was not suited for promoting economic growth. Institutional aspects show that budget preparation, and processes provide no link between policy commitments, and available resources, aggravated by unfounded credibility on the budget, as an instrument for policy formation. Recommendations call for improved resource allocation within fiscal constraints, i.e., reducing public resources, and, laying the foundation for a budget process legal framework. In addition, reforms should be institutionalized through accountability, and capacity building.Publication Funding Development Through Results-Based Climate Finance(Washington, DC: World Bank, 2025-08-26)Development outcomes such as job creation, clean energy access, and sustainable agriculture drive a global effort to bolster growth along sustainable and climate-resilient pathways, but significant funding gaps are hampering progress. Results-based climate finance (RBCF) can play an important role in closing these funding gaps and incentivizing the development of high-integrity emission reductions programs and their monetization on carbon markets.
Users also downloaded
Showing related downloaded files
Publication World Development Report 2018(Washington, DC: World Bank, 2018)Every year, the World Bank's World Development Report takes on a topic of central importance to global development. The 2018 Report, Learning to Realize Education's Promise, is the first ever devoted entirely to education. Now is an excellent time for it: education has long been critical for human welfare, but is even more so in a time of rapid economic change. The Report explores four main themes. First, education's promise: Education is a powerful instrument for eradicating poverty and promoting shared prosperity, but fulfilling its potential requires better policies - both within and outside the education system. Second, the learning crisis: Despite gains in education access, recent learning assessments show that many young people around the world, especially from poor families, are leaving school unequipped with even the most foundational skills they need for life. At the same time, internationally comparable learning assessments show that skills in many middle-income countries lag far behind what those countries aspire to. Third, promising interventions to improve learning: Research from areas such as brain science, pedagogical innovations, or school management have identified interventions that promote learning by ensuring that learners are prepared, that teachers are skilled as well as motivated, and that other inputs support the teacher-learner relationship. Fourth, learning at scale: Achieving learning throughout an education system will require more than just scaling up effective interventions. Change requires overcoming technical and political barriers by deploying salient metrics for mobilizing actors and tracking progress, building coalitions for learning, and being adaptive when implementing programs.Publication World Development Report 2023: Migrants, Refugees, and Societies(Washington, DC : World Bank, 2023-04-25)Migration is a development challenge. About 184 million people—2.3 percent of the world’s population—live outside of their country of nationality. Almost half of them are in low- and middle-income countries. But what lies ahead? As the world struggles to cope with global economic imbalances, diverging demographic trends, and climate change, migration will become a necessity in the decades to come for countries at all levels of income. If managed well, migration can be a force for prosperity and can help achieve the United Nations’ Sustainable Development Goals. World Development Report 2023 proposes an innovative approach to maximize the development impacts of cross-border movements on both destination and origin countries and on migrants and refugees themselves. The framework it offers, drawn from labor economics and international law, rests on a “Match and Motive Matrix” that focuses on two factors: how closely migrants’ skills and attributes match the needs of destination countries and what motives underlie their movements. This approach enables policy makers to distinguish between different types of movements and to design migration policies for each. International cooperation will be critical to the effective management of migration.Publication World Development Report 2004(World Bank, 2003)Too often, services fail poor people in access, in quality, and in affordability. But the fact that there are striking examples where basic services such as water, sanitation, health, education, and electricity do work for poor people means that governments and citizens can do a better job of providing them. Learning from success and understanding the sources of failure, this year’s World Development Report, argues that services can be improved by putting poor people at the center of service provision. How? By enabling the poor to monitor and discipline service providers, by amplifying their voice in policymaking, and by strengthening the incentives for providers to serve the poor. Freedom from illness and freedom from illiteracy are two of the most important ways poor people can escape from poverty. To achieve these goals, economic growth and financial resources are of course necessary, but they are not enough. The World Development Report provides a practical framework for making the services that contribute to human development work for poor people. With this framework, citizens, governments, and donors can take action and accelerate progress toward the common objective of poverty reduction, as specified in the Millennium Development Goals.Publication World Development Report 2024(Washington, DC: World Bank, 2024-08-01)Middle-income countries are in a race against time. Many of them have done well since the 1990s to escape low-income levels and eradicate extreme poverty, leading to the perception that the last three decades have been great for development. But the ambition of the more than 100 economies with incomes per capita between US$1,100 and US$14,000 is to reach high-income status within the next generation. When assessed against this goal, their record is discouraging. Since the 1970s, income per capita in the median middle-income country has stagnated at less than a tenth of the US level. With aging populations, growing protectionism, and escalating pressures to speed up the energy transition, today’s middle-income economies face ever more daunting odds. To become advanced economies despite the growing headwinds, they will have to make miracles. Drawing on the development experience and advances in economic analysis since the 1950s, World Development Report 2024 identifies pathways for developing economies to avoid the “middle-income trap.” It points to the need for not one but two transitions for those at the middle-income level: the first from investment to infusion and the second from infusion to innovation. Governments in lower-middle-income countries must drop the habit of repeating the same investment-driven strategies and work instead to infuse modern technologies and successful business processes from around the world into their economies. This requires reshaping large swaths of those economies into globally competitive suppliers of goods and services. Upper-middle-income countries that have mastered infusion can accelerate the shift to innovation—not just borrowing ideas from the global frontiers of technology but also beginning to push the frontiers outward. This requires restructuring enterprise, work, and energy use once again, with an even greater emphasis on economic freedom, social mobility, and political contestability. Neither transition is automatic. The handful of economies that made speedy transitions from middle- to high-income status have encouraged enterprise by disciplining powerful incumbents, developed talent by rewarding merit, and capitalized on crises to alter policies and institutions that no longer suit the purposes they were once designed to serve. Today’s middle-income countries will have to do the same.Publication Western Balkans 6 Country Climate and Development Report(Washington, DC: World Bank Group, 2024-07-16)This Regional Western Balkans Countries Climate and Development Report (CCDR) stands out in several ways. In a region that often lacks cohesive regional alliances, this report emphasizes how the challenges faced across countries are often common and interconnected, and, importantly, that climate action requires coordination on multiple fronts. Simultaneously, it illustrates the differences across countries, places, and people that require targeted strategies and interventions. This report demonstrates how shocks and stressors re intensifying and how investments in adaptation could bring significant benefits in the form of avoided losses, accelerated economic potential, and amplified social and economic spillovers. Given the region’s high emission and energy intensity and the limitations of its current fossil fuel-based development model, the report articulates a path to greener and more resilient growth, a path that is more consistent with the aspiration of accession to the EU. The report finds that the net zero transition can be undertaken without compromising the economic potential of the Western Balkans and that it could lead to higher growth than under the Reference Scenario (RS) with appropriate structural reforms.