Since it declared its independence in 1991, the Republic of Macedonia has faced several problems of key importance. Apart from the economic underdevelopment, this country has been characterised by bad ethnic relations between the two most numerous communities in the country - the Macedonian and Albanian ones. The Albanian community, which makes approximately one fourth of the total population in Macedonia, has tended to define itself as a "constitutive nation" within the newly formed and independent Macedonia. The outstanding ethnic tensions present in 1990s turned into open armed conflicts in the February-August 2001 period. More than 200 people were killed, while 100,000 people were displaced from their homes in the conflicts between the Albanian militia and regular Macedonian police and armed forces. After the USA and EU had made pressures on the conflicting parties, they adopted the Framework Agreement on 13 August 2001 in Ohrid. It proposed the amendments to the 1991 Constitution of the Republic of Macedonia. The amendments have brought out changes in the constitutional and political system of Macedonia - "double majority" in the Parliament, increased number of members of ethnic communities in the police and administration, Albanian language as an official, strengthening of the local self-rule, etc. Apart from the Macedonian people as a holder of sovereignty, the preamble of the Constitution of Macedonia includes the Albanians, Turks, Vlachs, Serbs, Romans and members of other peoples who live in Macedonia. In September 2002, parliamentary elections took place in Macedonia. The coalition For Macedonia Together headed by the Social Democratic Alliance of Macedonia won half of the seats in the Macedonian parliament. Then were defeated the nationalistic parties VMRO-DPMNE and Democratic Party of Albanians that had been in power during the ethnic conflicts. The Democratic Union for Integration (established in 2002) won almost 70 per cent of the Albanian votes while the Party for Democratic Prosperity and People's Democratic Party were defeated at the elections. After the September elections, the new government was forded and it embraced the members of the coalition For Macedonia Together and Democratic Union for Integration - with five Albanian ministers. The Ohrid Agreement is a step forward in settling the ethnic relations in Macedonia. Apart from the fact that it was adopted under the pressure of the international community, it is a basis for constitutional and political reforms, improving the position of the Albanians as the most numerous non-Macedonian community. However, it should be said that even today there are two parallel "societies" - Macedonian and Albanian ones, with no common touch between them, living separately from each other. In spite of all obstacles, it is necessary to insist on building of confidence and reconciliation between the Albanians and Macedonians. This can be achieved by repatriation of refugees and displaced persons to their homes, by implementation of the law that includes the provisions on the positive discrimination of the Albanian community and by strengthening of security and stability in the region. As the author assesses, the bad economic situation in Macedonia could set new priorities to the government and it would include improvement of living conditions for its citizens. On the other hand, the greatest danger to the peaceful development of Macedonia is the Albanian National Army (ANA) whose substantial aim is to achieve unification of the "Albanian" territories in Western Macedonia with Kosovo and "Albanian parts" of Montenegro and southern Serbia.
Comparison of Fiscal Reforms in Some South and East European Transition Economies