ILO: Social dialogue should be improved by creating a favorable business climate

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On April 17, 2019 in h. Thessaloniki was held a tripartite workshop on favorable business climate for the development of sustainable enterprises. Representatives from KSS took part in the workshop.

The workshop was first presented by Severin Debo, Global Coordinator of the International Labor Organization – ILO for a favorable business climate for sustainable enterprises (EESE). He gave an introduction to the concept and methodology of the ILO for Evaluation of Favorable Business Climate and Sustainable Enterprises (EESE).

Later on, Nikica Kisinikova, who is an external associate of the ILO, presented the key findings from the comparative analysis of a favorable business climate for sustainable enterprises for the period 2013/2014 to 2019, where the five key areas were assessed, which are: enabling legal and regulatory environment, rule of law and secured property rights, access to financial conditions, loyal competition and entrepreneurial culture.

  • Findings have shown that doing business in Macedonia is relatively easy, but the companies complain that the quality of the regulation.
  • The country should strengthen the rule of law, which is related to transparency in policy-making, the effectiveness of the legal framework, law enforcement and the operation of the judicial system.
  • The growth of companies is primarily based on self-financing of enterprises, with strong preference for financing the retained profit or with new, private or family capital.
  • Banks are a key source of external financing. The main three obstacles to accessing loans are the following: high interest rates, banks do not want to take risks and banks require too many documents to approve a loan.
  • Unequal treatment of companies and widespread gray economy have a detrimental effect on competitiveness.

Namely, the ILO is currently implementing the project “Strengthening Social Dialogue 2019 – 2021”, funded by the European Commission, with a component for a favorable business climate, as a contribution to strengthening the participation of the Economic and Social Council in creating an agenda for economic and social reforms.

At the end of the workshop, Severin Deborah and Julia Duchea expressed the conclusions for defining the scope and assessment related to (EESE), as well as negotiating new key priorities.

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