Transcript Center for Research and Policy Making

Center for Research and Policy Making
Local Economic Development
of Gostivar municipalityCollapse of the industry,
emigrants key for surviving
10 December 2005
NGO Fair- Skopje
History of Gostivar
•
•
•
•
Gostivar is mentioned for the first time in Middle Ages
In XVII century Gostivar became center of Gorni Polog
In 1904 Gostivar had 3 400 inhabitants.
Today the municipality of Gostivar has 35 inhabited places
with the population of:
- the municipality of Gostivar 81035 inhabitants
- the town of Gostivar 35 847 inhabitants
Historical Overview: Population
Year
# of inhabitants
1874
2000
1900
4000
1921
4885
1931
5952
Inhabitants in Municipality Gostivar
Year
Total
Macedonians
Albanians
Turks
Roma
Serbs
Others
1953
14928
4134
8213
1932
353
137
148
1961
18870
6641
7282
4473
…
255
219
1971
27214
9262
12539
4504
219
268
422
1981
39306
11429
20773
4426
1384
232
1053
1991
20608
13594
…
4038
1977
225
740
1994
45740
13514
25186
4477
1884
261
400
2002
49545
13149
29326
4564
1904
149
528
2005
81035
15870
54038
7991
2237
160
685
Inhabitants in the Town of Gostivar
Year
Total
Macedonians
Albanians
Turks
Roma
Serbs
Others
1953
9505
2637
4313
1924
353
133
138
1961
12787
5092
2904
4349
…
249
193
1971
19467
8109
6044
4449
219
254
392
1981
27726
10127
10791
4378
1254
223
947
1991
18734
11946
…
4023
1842
208
681
1994
32926
12084
14128
4475
1609
231
381
2002
35847
11885
16890
4559
1899
146
419
Developments in Socialist Times
Internal migration
• The rural population from the mountains
descended to the Polog valley; many people
from the villages moved to the town of Gostivar.
• In 1954 the Turkish “left”. Macedonians and
Albanians moved in from the surrounded
villages.
• Gorni Polog is highly fertile land – key economic
activities crafts and agriculture.
• But! Incoming peasants are being employed in
Industry.
Developments in Socialist Times
Rapid Industrialization
• Dekon (clothing manufacturing) founded in
1948
• Silika (fire proof materials) in 1954
• Mermeri c.1955 (industry for decorative stone
-industrija za ukrasen kamen)
• Goteks founded in 1958
• Gorni Polog Slaughterhouse 1960
Developments in Socialist Times
Decline of Agriculture, Old Crafts
• In 1971 agriculture sector provides only 20% of
total revenues of the municipality whereas the
industry makes 41% of the revenues.
• But! Many still work in agriculture- in 1973, 4720
households employed in agriculture and cattlebreeding, 98% of cultivation area (obrabotliva
povrsina) private .
• Old craft is dying the younger craftsmen do not
show any interest. Turks “left.”
The Story of “Silika” Before Transformation
• Giant in ex-Yu consists of Alumosilikatna,
Dolomitna and Chajle mine
• Selling all over Europe, 70% of production.
• In 1980 exported 8882 tons.
• In 1989, total turnover USD 100 mil, out of which
USD 63 mil. profit.
The Story of “Silika” Before Transformation
• Major employer - total of 1900 employees
Alumosilikatna worked in 5 shifts; Dolomitna in 4
shifts the mines in 2 shifts.
• The average salary was DEM 750.
• Equipped with top technology, imported from
Europe, staff trained abroad.
Factors For Fall of “Silika” After 89
• Break Down of Traditional Markets
• Transport Costs Increase (x-Yu Wars)
• Over- employment (450 employees as
technological surplus).
• Increasing debts
• Problems with enforcement of payments
• Government policy stimulating SME based
economy
The leftovers of “Silika”
In 1995, RIOM”SILIKA” started bankruptcy
procedure. SILIKA was divided in three business
units:
1.
2.
3.
•
•
AD “ALUMO SILIKAT”
AD ”REMONT”
AD “DOLOMIT”
The mines “Chajle” Chajle and “Minerals Silika” Makedonski
Brod, as well as the brick-plant “Ciglana” had been separated.
Nowadays only AD”DOLOMIT” works- bought in 2003 by
“HAZNEDAR” - exports 45.000 tones fireproof materials
annually to Bulgaria
Aftermaths of Gostivar’s transition
• The big industrial capacities have collapsed
• Number of active enterprises in 2004: 4352
enterprises (99.1% SMEs)
Wholesale and retail trade
Manufacturing
Transport and storage
Social and personal services
Hotels and restaurants
Real estate and renting
Construction
Agri. hunting and forestry
51.6%
12.0%
9.0%
7.1%
4.7%
4.5%
4.4%
2.8%
Type of ownership
Private
no defined
socially
mixed
co-operative
state
89.8%
4.5%
3.3%
1.1%
1.0%
0.3%
Main employers in today's Gostivar economy
• Only 37 of registered companies have more
than 10 employees
• Only 5 of them have more than 100 employees
(DEKON, OHIM Ges, Komunalec, Zito Sar, Getro)
• ESM branch Gostivar is a major employer, but
recorded in Skopje
• The rest are dominated by companies dealing
with trade and production of furniture and
construction materials
Unemployment in Gostivar
• Number of unemployed (1992-2005) - 31.03.05 :
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
No. of unemployed
6975
7273
8212
9375
10552
9707
10671
11832
12321
13417
15397
16373
16764
16773
• Number of unemployed in 2005 in urban areas – 8985; and in
rural areas 7788
• Employed are 7195
Emigrants – key for survival
• CRPM estimation on basis of its research is that the number
of emigrants from Gostivar is between 15.000-20.000
• The vast majority of migrants- for economic reasons, guest
workers
• 54.60% of remittances for family needs, home investments
- 15.30%, renovations of the family houses - 13%, buying
house/apartment - 9.20%, savings - 3.10%, and other
reasons - 4.80%.
• From 1993 until 2004 the Macedonian economic emigrants
brought to the country 3 billion dollars
Effect of Remittances on town’s dynamics
• The town becomes lively when the guest workers arrive /
summer and New Years /
• This summer 1000 weddings some worth of 20.000 euros
• Construction of houses main activity in the summer period
• Belvicica street – the housing and furniture paradise
• Trade and services booming in summer
New trends in emigration
With negative impact on economy
• In recent years emigrants come in
smaller numbers
• Spend less time and money
• They take the entire family
• Buy apartments rather than houses
With positive impact on economy
• Home comers bringing in investment and
know-how (Gudalat, Fejzi, Fatina)
Decentralization and municipal good governance
• Dynamic new mayor
• 800.000 euro invested in municipal
infrastructure in the last 6 months (parking,
improvement of the water supply, park,
street, organization of traffic, waste depot)
• One stop shop
• Removal of illegally built houses
• Gradual payment of the municipal debts
CRPM basic findings
• 80 companies and individuals were interviewed in the
period April-December 2005
• Highlight – decent / fair inter ethnic relations
• Most of them identified the same issues of concern:
- unfaithful competition
- problems with enforcing payments
- limited access to finance (bad loan criteria)
- no state aid
- high dependence on emigrant’s financial assistance
- lack of industrial capacities in the town and employment
- predominance of petty trade
- high level of corruption and nepotism
- lack of FDI
- too many seasonal jobs / no stable employment
Recommendations and conclusions
Discussion paper on CRPM’s Gostivar research
– coming soon -
Thanks to our Partners and Donors
European Stability Initiative
The German Marshall Fund of the United
States of America
Libertas Institute
Olof Palme International Center
Foundation Open Society Institute Macedonia
Journal of Southeast European Politics
CRPM
Your comments and suggestions are welcomed at [email protected]