69285 THE WORLD BANK Macedonia BEEPS-at-a-Glance Introduction Contents The EBRD-World Bank Business Environment and Sampling page 2 Enterprise Performance Survey (BEEPS) is a joint initiative Problems Doing Business page 3 of the European Bank for Reconstruction and Development Unofficial Payments and Corruption page 4 and the World Bank. The BEEPS has been carried out in Crime page 5 three rounds in 1999, 2002, and 2005 and covers virtually Regulations and Red Tape page 6 all of the countries of Central and Eastern Europe and the Customs and Taxes page 8 former Soviet Union, as well as Turkey. (It has not been Labor Issues page 10 possible to implement this survey in Turkmenistan.) Firm Financing page 11 Legal and Judicial Issues page 13 The BEEPS covers a broad range of issues about the Infrastructure page 14 business environment, and this note presents some simple indicators for key areas. Definitions Data Notes The 2005 round of the BEEPS consisted of two parts: This note focuses exclusively on the Main BEEPS for The Main BEEPS sample was drawn from the universe 2002 and 2005 and presents simple averages over all of firms in a broad range of economic activities, with the firms with non-missing data. Regional aggregates are split between services and industry roughly proportional computed using firm-level data. to the contribution to GDP in each country. The Main Many of the apparent changes over time and difference BEEPS sampling approach was the same in all three between countries may not be statistically significant. rounds of the BEEPS. The Manufacturing Overlay refers to additional manufacturing firms that were added, above and beyond the Main BEEPS sample, in selected countries. The Manufacturing Overlay focused on a small number of narrowly defined manufacturing sectors, and a select number of geographical areas. Citation Please refer to the data in all uses as the “EBRD-World Bank Business Environment and Enterprise Performance Survey (BEEPS).� Standard practice is to use this lengthy citation the first time the BEEPS is referenced in the document and the shorthand “BEEPS� thereafter. Within the World Bank, both the Europe and Central Asia – Poverty Reduction and Economic Management Unit and the Investment Climate Unit contributed to the BEEPS. For more information on this document, contact James Anderson (janderson2@worldbank.org) or Laura Lanteri (llanteri@worldbank.org). Revised.February-7-2006. Macedonia 2 Sample Summary The BEEPS used an identical sampling approach in all years. • Sector: In each country, the sectoral composition of the sample in terms of manufacturing (including agro- processing) versus services (including commerce) was determined by their relative contribution to GDP. Firms that operate in sectors subject to government price regulation and prudential supervision, such as banking, electric power, rail transport, and water and waste water, were excluded from the design of the sample • Size: At least 10% of the sample was to be in the small (2-49 employees) and 10% in the large (250-9,999 employees) categories. Firms with only one employee or more than 10,000 employees were excluded • Ownership: At least 10% of the firms were to have foreign control and 10% state control • Exporters: At least 10% of the firms were to be exporters (firms that exports 20% or more of total sales) • Location: At least 10% of firms were to be in the category “small city/countryside� (i.e., population under 50,000) • Age: Enterprises which began operations in the three years prior to the survey were excluded. No. of interviews City/Town Sector Main activity Size of enterprise Foreign Export owned Country Target Completed Large Medium Small Private State Industry Services Small Medium Large Albania 200 204 38.7% 40.2% 21.1% 91.2% 8.8% 49.5% 50.5% 74.0% 18.6% 7.4% 10.8% 20.1% Armenia 200 201 51.2% 26.4% 22.4% 90.0% 10.0% 46.8% 53.2% 75.1% 13.9% 10.9% 11.4% 12.9% Azerbaijan 200 200 64.5% 21.5% 14.0% 90.0% 10.0% 48.5% 51.5% 74.0% 18.0% 8.0% 11.0% 11.5% Belarus 300 325 32.0% 52.0% 16.0% 88.6% 11.4% 42.2% 57.8% 71.4% 17.8% 10.8% 10.2% 16.3% Bosnia 200 200 34.5% 49.0% 16.5% 90.0% 10.0% 45.5% 54.5% 61.0% 29.0% 10.0% 12.0% 18.0% Bulgaria 300 300 23.7% 39.0% 37.3% 90.0% 10.0% 28.3% 71.7% 74.0% 16.0% 10.0% 10.3% 15.0% Croatia 200 236 29.7% 31.8% 38.6% 89.0% 11.0% 44.9% 55.1% 64.8% 21.2% 14.0% 8.9% 19.1% Czech Republic 300 343 21.9% 31.2% 46.9% 91.3% 8.7% 38.5% 61.5% 76.1% 16.0% 7.9% 9.0% 14.6% Estonia 200 219 51.6% 21.0% 27.4% 90.9% 9.1% 32.4% 67.6% 74.4% 16.0% 9.6% 15.1% 14.2% FR Yugoslavia 300 300 45.0% 35.3% 19.7% 86.3% 13.7% 37.3% 62.7% 65.7% 20.7% 13.7% 11.0% 16.3% FYROM 200 200 60.5% 23.0% 16.5% 91.5% 8.5% 36.0% 64.0% 73.5% 16.5% 10.0% 10.5% 17.0% Georgia 200 200 50.5% 32.5% 17.0% 88.0% 12.0% 30.0% 70.0% 74.5% 17.5% 8.0% 13.0% 13.5% Hungary 300 312 34.6% 43.6% 21.8% 94.2% 5.8% 35.3% 64.7% 74.0% 16.3% 9.6% 13.8% 17.0% Kazakhstan 300 300 40.3% 45.7% 14.0% 90.3% 9.7% 43.7% 56.3% 73.3% 16.0% 10.7% 11.0% 5.0% Kyrgyzstan 200 202 32.3% 39.6% 28.2% 89.1% 10.9% 43.6% 56.4% 63.4% 26.2% 10.4% 14.4% 13.4% Latvia 200 205 55.6% 10.7% 33.7% 88.8% 11.2% 22.9% 77.1% 74.1% 15.6% 10.2% 9.8% 12.2% Lithuania 200 205 30.7% 37.6% 31.7% 87.8% 12.2% 36.1% 63.9% 68.3% 22.0% 9.8% 10.7% 19.0% Moldova 200 200 44.0% 25.0% 31.0% 90.5% 9.5% 31.5% 68.5% 69.0% 21.5% 9.5% 10.5% 12.5% Poland 550 580 14.1% 62.2% 23.6% 89.3% 10.7% 37.9% 62.1% 68.4% 21.9% 9.7% 9.5% 15.3% Romania 300 315 19.0% 49.2% 31.7% 88.9% 11.1% 41.3% 58.7% 62.5% 27.0% 10.5% 11.7% 11.7% Russia 550 599 56.9% 28.0% 15.0% 90.0% 10.0% 40.9% 59.1% 66.3% 21.9% 11.9% 10.0% 9.7% Slovak Republic 200 220 41.4% 40.9% 17.7% 89.1% 10.9% 26.8% 73.2% 67.7% 22.3% 10.0% 11.8% 17.7% Slovenia 200 223 21.1% 22.0% 57.0% 89.2% 10.8% 39.0% 61.0% 70.9% 16.6% 12.6% 7.6% 29.6% Tajikistan 200 200 37.0% 41.0% 22.0% 90.5% 9.5% 44.0% 56.0% 61.5% 28.5% 10.0% 10.0% 12.5% Turkey 550 559 54.4% 27.0% 18.6% 90.2% 9.8% 36.5% 63.5% 71.6% 18.8% 9.7% 9.8% 15.7% Ukraine 550 594 36.5% 47.5% 16.0% 90.2% 9.8% 42.8% 57.2% 70.9% 19.0% 10.1% 10.9% 10.1% Uzbekistan 300 300 29.0% 39.3% 31.7% 89.7% 10.3% 37.7% 62.3% 73.0% 17.0% 10.0% 11.0% 9.7% Total 7600 7942 Sample in 2002 for Macedonia Sample in 2005 for Macedonia Other Service Mining Other Service Mining Construction 4% 1% Construction 6% 1% Hotels/Rest 7% 8% 8% Hotels/Rest 8% Real Estate 6% Real Estate 7% Manufacturing Manufacturing 28% 28% W&R Trade 37% W&R Trade Transport Transport 36% 7% 8% Mining Mining and quarrying W&R Trade Wholesale and retail trade Construction Construction Real Estate Real estate, renting and business services Manufacturing Manufacturing Hotels/Rest Hotels and restaurants Transport Transport, storage and communication Other Service Other services BEEPS-at-a-Glance Macedonia 3 Problems Doing Business Problems Doing Business—Over Time Problems Doing Business—Across Countries Percent of firms indicating a problem Percent of firms indicating a problem Contract violations Contract violations Anti-competitive Anti-competitive practices of others practices of others Organised Organised crime/mafia crime/mafia Street crime, theft Street crime, theft and disorder and disorder Corruption Corruption Functioning of the Functioning of the judiciary judiciary Macroeconomic Macroeconomic instability instability Uncertainty about Uncertainty about regulatory policies regulatory policies Skills and education Skills and education of workers of workers Labour regulations Labour regulations Business licensing Business licensing and permits and permits Customs and trade Customs and trade regulations regulations Tax administration Tax administration Tax rates Tax rates Title or leasing of Title or leasing of land land Access to land Access to land Transportation Transportation Electricity Electricity Telecommunications Telecommunications Cost of financing Cost of financing Access to financing Access to financing 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% Mac-2005 Mac-2002 SEE-2005 Mac-2005 ECA-2005 BEEPS-at-a-Glance Macedonia 4 Unofficial Payments and Corruption Bribe Tax Bribe Frequency Bribes as a share of annual sales Percent of firms saying unofficial payments are frequent 1.8 1.6 30% 1.4 1.2 20% 1.0 2002 2002 0.8 2005 2005 0.6 10% 0.4 0.2 0% 0.0 Mac SEE ECA Mac SEE ECA Unofficial Payments in Sectors—Over Time Unofficial Payments in Sectors—Across Countries Percent of firms saying bribery is frequent Percent of firms saying bribery is frequent To obtain government contracts To obtain government contracts To obtain business licenses and permits To obtain business licenses and permits To influence the content of new To influence the content of new legislation rules decrees etc. legislation rules decrees etc. To get connected to and maintain public To get connected to and maintain public services (electricity and telephone) services (electricity and telephone) To deal with taxes and tax collection To deal with taxes and tax collection To deal with occupational health and To deal with occupational health and safety inspections safety inspections To deal with fire and building inspections To deal with fire and building inspections To deal with environmental inspections To deal with environmental inspections To deal with customs/imports To deal with customs/imports To deal with courts Mac - 2005 To deal with courts Mac - 2002 SEE-2005 Mac - 2005 0% 5% 10% 15% 20% 25% 30% ECA-2005 0% 5% 10% 15% 20% 25% Corruption as a Problem Doing Business Percent of firms indicating corruption as a problem doing business 60% 50% 40% 30% 2002 2005 20% 10% 0% Mac SEE ECA BEEPS-at-a-Glance Macedonia 5 Crime Street Crime as a Problem Doing Business Organized Crime as a Problem Doing Business Percent of firms indicating street crime, theft and disorder Percent of firms indicating organized crime/mafia as a as a problem doing business problem doing business 40% 2002 45% 2002 35% 2005 40% 2005 30% 35% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Mac SEE ECA Mac SEE ECA Protection Payments Protection Payments as a percent of annual sales Percent of firms that pay for protection payments, e.g. to Percent of annual sales used for protection payments, for organized crime, to prevent violence or property damage all firms 20% 2005 0.3 2005 0.3 15% 0.2 10% 0.2 0.1 5% 0.1 0% 0.0 Mac SEE ECA Mac SEE ECA Losses as a consequence of crime Losses as a percentage of annual sales Percent of firms that suffered from losses as a result of Estimated losses over the previous 12 months as a theft, robbery, vandalism or arson against the firm over the percentage of annual sales, for all firms previous 12 months 30% 2002 1 2002 25% 2005 2005 0.8 20% 0.6 15% 0.4 10% 5% 0.2 0% 0 Mac SEE ECA Mac SEE ECA Security Security payments as a percentage of annual sales Percent of firms that pay for security, e.g. equipment, Payments for security as a percent of annual sales only for personnel, or professional security services all firms 80% 2002 3.0 2002 70% 2005 2.5 2005 60% 50% 2.0 40% 1.5 30% 1.0 20% 10% 0.5 0% 0.0 Mac SEE ECA Mac SEE ECA BEEPS-at-a-Glance Macedonia 6 Regulations and Red Tape Time Tax Lack of Recourse Percent of senior management's time over the last 12 Percent of firms that stated that this statement is NEVER months spent in dealing with public officials about the true: “If a government agent acts against the rules I can application and interpretation of laws and regulations and to usually go to another official or to his superior and get the get or to maintain access to public services correct treatment without recourse to unofficial payments/gifts.� 10 2002 30% 2002 2005 25% 2005 8 20% 6 15% 4 10% 2 5% 0 0% Mac SEE ECA Mac SEE ECA Regulatory Policies as a Problem Doing Business Business Licenses as a Problem Doing Business Percent of firms indicating uncertainty about regulatory Percent of firms indicating business licensing and permits policies as a problem doing business as a problem doing business 80% 2002 50% 2002 70% 2005 2005 40% 60% 50% 30% 40% 30% 20% 20% 10% 10% 0% 0% Mac SEE ECA Mac SEE ECA Unofficial Payments for business licensing Unofficial Payments for occupational health and Percent of firms that stated that bribery is frequent for safety inspections business licensing Percent of firms that stated that bribery is frequent for occupational health and safety inspections 30% 2002 25% 2002 25% 2005 2005 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Mac SEE ECA Mac SEE ECA Unofficial Payments for fire and building inspections Unofficial Payments for environmental inspections Percent of firms that stated that bribery is frequent for fire Percent of firms that stated that bribery is frequent for and building inspections environmental inspections 14% 2002 10% 2002 12% 2005 2005 8% 10% 8% 6% 6% 4% 4% 2% 2% 0% 0% Mac SEE ECA Mac SEE ECA BEEPS-at-a-Glance Macedonia 7 Regulations and Red Tape Number of Inspections – Fire and Building Safety Duration of Inspections – Fire and Building Safety How many times in the last 12 months was your What was the average duration of these establishment inspected by this agency? inspections/meetings? (hours/visit) 1.4 1.7 1.2 1.7 1.0 1.6 0.8 1.6 0.6 1.5 0.4 0.2 1.5 0.0 1.4 Mac-2005 SEE-2005 ECA-2005 Mac-2005 SEE-2005 ECA-2005 Fire & building safety Fire & building safety Number of Inspections – Sanitation/Epidemiology Duration of Inspections – Sanitation/Epidemiology How many times in the last 12 months was your What was the average duration of these establishment inspected by this agency? inspections/meetings? (hours/visit) 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Mac-2005 SEE-2005 ECA-2005 Mac-2005 SEE-2005 ECA-2005 Sanitation/ Epidemiology Sanitation/ Epidemiology Number of Inspections – Municipal Police Duration of Inspections – Municipal Police How many times in the last 12 months was your What was the average duration of these establishment inspected by this agency? inspections/meetings? (hours/visit) 3.0 1.2 2.5 1.0 2.0 0.8 1.5 0.6 1.0 0.4 0.5 0.2 0.0 0.0 Mac-2005 SEE-2005 ECA-2005 Mac-2005 SEE-2005 ECA-2005 Municipal police Municipal police Number of Inspections - Environment Duration of Inspections - Environment How many times in the last 12 months was your What was the average duration of these establishment inspected by this agency? inspections/meetings? (hours/visit) 0.7 1.0 0.6 0.8 0.5 0.4 0.6 0.3 0.4 0.2 0.2 0.1 0.0 0.0 Mac-2005 SEE-2005 ECA-2005 Mac-2005 SEE-2005 ECA-2005 Environmental Environmental BEEPS-at-a-Glance Macedonia 8 Customs and Taxes Custom Regulations as a Problem Doing Business Unofficial Payments for Customs Percent of firms indicating custom regulations as a problem Percent of firms that stated that bribery is frequent for doing business customs 45% 2002 25% 2002 40% 2005 2005 35% 20% 30% 15% 25% 20% 10% 15% 10% 5% 5% 0% 0% Mac SEE ECA Mac SEE ECA Tax Rates as a Problem Doing Business Tax Administration as a Problem Doing Business Percent of firms indicating tax rates as a problem doing Percent of firms indicating tax administration as a problem business doing business 70% 2002 60% 2002 60% 2005 2005 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Mac SEE ECA Mac SEE ECA Annual Sales Reported for Tax Purposes Unofficial Payments for Tax Collection Percentage of total annual sales estimated to be reported Percent of firms that stated that bribery is frequent for tax for tax purposes collection purposes 100 2002 20% 2002 2005 2005 80 15% 60 10% 40 5% 20 0 0% Mac SEE ECA Mac SEE ECA BEEPS-at-a-Glance Macedonia 9 Customs and Taxes Number of Inspections – Taxes Duration of Inspections – Taxes How many times in the last 12 months was your What was the average duration of these establishment inspected by this agency? inspections/meetings? (hours/visit) 3.0 10.0 2.5 8.0 2.0 6.0 1.5 4.0 1.0 0.5 2.0 0.0 0.0 Mac-2005 SEE-2005 ECA-2005 Mac-2005 SEE-2005 ECA-2005 Tax inspectorate Tax inspectorate Number of Inspections – Customs Duration of Inspections – Customs How many times in the last 12 months was your What was the average duration of these establishment inspected by this agency? inspections/meetings? (hours/visit) 1.2 0.6 1.0 0.5 0.8 0.4 0.6 0.3 0.4 0.2 0.2 0.1 0.0 0.0 Mac-2005 SEE-2005 ECA-2005 Mac-2005 SEE-2005 ECA-2005 Customs agency Customs agency BEEPS-at-a-Glance Macedonia 10 Labor Issues Labor Costs and Taxes Labor Regulations as a Problem Doing Business Percent of workforce reported for tax purposes and Percent of firms indicating labor regulations as a problem percent of wage bill reported for tax purposes (2005) doing business 90 30% 2002 25% 2005 85 20% 80 15% 10% 75 5% 70 0% Mac SEE ECA Mac SEE ECA Percent of workforce reported for tax purposes Workers’ Education as a Problem Doing Business Percent of firms indicating skills and education of available 90 workers as a problem doing business 85 2002 30% 80 25% 2005 75 20% 15% 70 10% 65 5% Mac SEE ECA 0% Percent of wage bill reported for tax purposes Mac SEE ECA Number of Inspections – Labor Duration of Inspections - Labor How many times in the last 12 months was your What was the average duration of these establishment inspected by this agency? inspections/meetings? (hours/visit) 2.0 4.0 1.5 3.0 1.0 2.0 0.5 1.0 0.0 0.0 Mac-2005 SEE-2005 ECA-2005 Mac-2005 SEE-2005 ECA-2005 Labor and social security Labor and social security Days lost as a consequence of strikes Underemployment due to Labor Regulations How many working days did your firm lose over the last If you didn’t have any restrictions (i.e. you didn’t have to seek 12 months due to strikes or labor disputes? permission, make severance payments, etc.), and you could increase the number of regular full-time workers your firm currently employs, by how much would you increase your number of employees as a percent of your existing workforce? 0.90 10 2002 2002 9 0.80 2005 2005 8 0.70 7 0.60 6 5 0.50 4 0.40 3 2 0.30 1 0.20 0 0.10 Mac SEE ECA 0.00 Mac SEE ECA BEEPS-at-a-Glance Macedonia 11 Firm Financing Sources of Financing—Over Time Sources of Financing—Across Countries Percent of new investments financed by: Percent of new investments financed by: Mac-2002 Mac-2005 Other Sources Other Sources Mac-2005 SEE-2005 ECA-2005 Trade Credit Trade Credit Informal Borrowing Informal Borrowing Formal Borrowing Formal Borrowing Equity Equity Internal funds/Retained earnings Internal funds/Retained earnings 0 10 20 30 40 50 60 70 80 0 10 20 30 40 50 60 70 80 Access to Financing as a Problem Doing Business — Cost of Financing as a Problem Doing Business — Over Time Over Time Percent of firms indicating access to financing (collateral Percent of firms indicating cost of financing (e.g., interest required or financing not available from banks) as a rates and charges) as a problem doing business problem doing business 50% 70% 60% 40% 50% 30% 40% 2002 2002 2005 30% 2005 20% 20% 10% 10% 0% 0% Mac SEE ECA Mac SEE ECA Type of Collateral - Across Countries What kind of collateral was required when you asked for a loan, (only for firms that asked for a loan and were required collateral)? Multiple answers were allowed. 70% 60% 50% 40% 30% 20% 10% 0% Land Buildings Machinery Accounts Inventories Personal assets Other receivable Mac-2005 SEE-2005 ECA-2005 BEEPS-at-a-Glance Macedonia 12 Firm financing Loan Application – Across Countries Time required to negotiate a loan – Across Time If a firm did not apply for a loan, it was mainly because… Average number of days required to agree on a loan with a (Multiple answers were allowed). bank from the date of the application Mac-2005 2002 Others 35 SEE-2005 2005 ECA-2005 Did not think it would be approved 30 It is necessary to make informal payments 25 to get bank loans 20 Interest rates are too high 15 Strict collateral requirement 10 Burdensome application procedures 5 Does not need a loan 0 Mac SEE ECA 0% 10% 20% 30% 40% 50% 60% 70% 80% Subsidies – Across Countries Subsidies – Across Time* Amount of subsidies received during the last three years as a Amount of subsidies received during the last three years as a percent of the total annual sales percent of the total annual sales *Note: There was no EU category for the 2002 question in the survey 0.3 2.0 Mac-2005 Mac-2002 Max for ECA SEE-2005 1.8 Mac-2005 ECA-2005 1.6 1.4 0.2 1.2 1.0 0.8 0.1 0.6 0.4 0.2 0.0 0.0 National Gov. Regional Gov. EU Other National Gov. Regional Gov. EU Other Payments overdue – Across Countries Payments overdue – Across Time Amount of the overdue payments (by more then 90 days) as a Amount of the overdue payments (by more then 90 days) as a % of total annual sales % of total annual sales 1.8 1.8 1.6 1.6 1.4 1.4 1.2 1.2 1.0 1.0 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.2 0.0 0.0 Utilities Taxes Employees Material input Mac-2002 Utilities Taxes Employees Material input Mac-2005 SEE-2005 ECA-2005 suppliers Mac-2005 suppliers BEEPS-at-a-Glance Macedonia 13 Legal and Judicial Issues Use of Courts Legal Framework Summary Assessments Percent of firms that have been to court in Percent of firms stating that information on Percent saying the functioning of the the past three years laws is easy to obtain judiciary is a problem doing business 50% 70% 60% 60% 50% 40% 50% 40% 30% 40% 2002 2002 30% 2002 20% 30% 2005 2005 2005 20% 20% 10% 10% 10% 0% 0% 0% Mac SEE ECA Mac SEE ECA Mac SEE ECA Percent of firms that have used courts to Percent of firms stating that Percent saying they are confident the legal solve an overdue payment (of those firms implementation of laws is consistent and system will uphold property and contract with overdue payments) predictable rights 44% 70% 100% 42% 60% 50% 75% 40% 40% 38% 2002 50% 2002 2005 30% 2005 2005 36% 20% 25% 34% 10% 32% 0% 0% Mac SEE ECA Mac SEE ECA Mac SEE ECA Judicial Assessments—Over Time Judicial Assessments—Across Countries Percent of firms agreeing that … Percent of firms agreeing that … All Firms All Firms able to enforce its able to enforce its decisions decisions affordable affordable quick quick honest/uncorrupted honest/uncorrupted fair and impartial fair and impartial Mac-2005 Mac-2002 SEE-2005 0% 25% 50% 75% 100% Mac-2005 0% 25% 50% 75% 100% ECA-2005 Firms that Use Courts Firms that Use Courts able to enforce its able to enforce its decisions decisions affordable affordable quick quick honest/uncorrupted honest/uncorrupted fair and impartial fair and impartial Mac-2005 Mac-2002 0% 25% 50% 75% 100% SEE-2005 0% 25% 50% 75% 100% Mac-2005 ECA-2005 BEEPS-at-a-Glance Macedonia 14 Infrastructure Telecommunications as a Problem Electricity as a Problem Doing Transportation as a Problem Doing Doing Business Business Business Percent of firms stating that the Percent of firms stating that the provision Percent of firms stating that functioning of the telecommunication of electricity is a problem doing business transportation is a problem doing system is a problem doing business business 25% 25% 20% 18% 20% 20% 16% 14% 15% 15% 12% 2002 2002 10% 2002 2005 2005 2005 10% 10% 8% 6% 5% 5% 4% 2% 0% 0% 0% Mac SEE ECA Mac SEE ECA Mac SEE ECA Sales lost as a consequence of service interruption Unofficial Payments for services Losses as a consequence of service interruption as a percent Percent of firms that stated that bribery is frequent to get of total annual sales, for all firms connected to and maintain public services (electricity and telephone) 10% 2002 Mac-2005 2005 9% Unavailable SEE-2005 telephone service 8% ECA-2005 7% 6% Insufficient water supply 5% 4% 3% Power outages 2% 1% 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 0% Mac SEE ECA BEEPS-at-a-glance FINAL.doc BEEPS-at-a-Glance Macedonia