Increasing the welfare effect of the agricultural subsidy program for food crops in Macedonia - Policymaker’s perspective - Dr. Nikica Mojsoska Blazevski Adviser Ministry of Labour and Social Policyof the former Yugoslav Republic of Macedonia UNCTAD Vi seminar on trade and poverty 8-10 September, 2014 Geneva, 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