inostrani kapital kao faktor razvoja zemalja - Ekonomski fakultet u ...

Institutions responsible for creating market economy – the condition these
institutions are in is extremely unfavorable, especially when it comes to the
condition the judicial system is in. As main problems for this one can consider the
following ones:
♦ Weak protection of property rights and slow process of distinguishing
property rights in some of the enterprises in the post-privatization period;
♦ Slow process of restarting of some of the production facilities in which
huge capital was invested in the past;
♦ Long duration of insolvency proceedings;
♦ Inefficient contracts’ implementation;
♦ Maintaining the interest rates at a high level;
♦ Corruptive behavior;
♦ The citizens loosing faith in the institutions of the system;
♦ De-motivating domestic and foreign investors when it comes to their
investing in Macedonian economy. 26
There are existing problems also in the functioning of the institutions responsible
for regulation which are mitigating the domains of market failure (securities commission,
direction for banks supervision, commissions for regulating the domains with
characteristics of a natural monopoly). The operation of these institutions is accompanied
by large number of problems and irregularities, and it is because of the fact that institutions
do not completely achieve the objective they have been established for. With regard to this,
it is necessary that:
• These institutions get better treatment by the Government;
• Тhey become equipped with young, well-educated and capable staff that
speaks foreign languages and is willing to learn through its work, and also
through acquiring permanent education in the country and abroad;
• There is established cooperation with the appropriate institutions in the
developed countries, which is always possible to be done through the
constant processes of providing technical assistance on bilateral grounds;
• There is initiative for aplicative scientific projects that would be realized
by our institutions in cooperation with institutions from the developed
countries. 27
Institutions responsible for market stabilization are responsible for maintaining
macroeconomic stability as a basic pre-condition for achieving economic development. In
this case, especially important are the National Bank and the Ministry of Finance. The
decision made by these two institutions influence the favorability of business climate, the
amount of investments, the overall production, the rate of inflation, the value of domestic
currency, the value of the foreign trade exchange etc.
26 Taki Fiti, ibid., p. 99.
27 Taki Fiti, ibid., p. 101.
43