Nikola Gruevski. Demotix/Toni Arsovski. All rights reserved.For nearly two decades, Macedonia has been a pressure cooker of public anger at corruption, deteriorating governance and chronic unemployment. Now the valve has blown. This year, union-organised strikes were followed by student protests against flawed education reforms. Then the opposition party released recordings of conversations that exposed government wire-tapping of more than 20,000 citizens. Quickly dubbed “bombs”, these recordings were released over the last three months by the main opposition party leader at press conferences. On them appear the voices of Prime Minister Nikola Gruevski, senior officials, journalists, judges and security officials conspiring in electoral and judicial fraud, and organising systemic corruption. On the latest, released on 4 May, the prime minister discusses with interior ministry officials a cover-up of the murder in June 2011 by one of his bodyguards of 21-year old Martin Neshkovski, a student who supported the ruling party.
These revelations have led to a new wave of protests, led by grassroots networks of civil society rather than the opposition party. The young activists have become more radical in their demands under sustained attacks by riot police and government infiltrators, who provoked the protestors for five nights in a row. Last Friday, they pledged to come back to demand the resignation of the prime minister. Then the population awoke on Saturday morning to news of what the government called a “terrorist attack” in an ethnically mixed neighbourhood in Kumanovo, a town near the Serbia/Kosovo border. The results were the deaths of police officers and arrests of alleged terrorists. The government-controlled media called for unquestioning support for the government, and labelled as a traitor anyone who disputed the official interpretation of events. What is going on? Is this a security crisis or a consolidation of power by the ruling party in the face of mounting opposition?
High stakes – but for security or politics?
The shootings in Kumanovo have woken up the rest of the world because they are reminiscent of the security crisis fifteen years ago, when ethnic Albanians took to the hills with their guns to demand rights, representation and jobs. The country narrowly escaped a full-blown civil war thanks to the Ohrid Agreement, which gave the Albanians greater political and economic inclusion, including quotas for public-sector jobs and parliamentary seats.
It was NATO and the EU that took responsibility for Macedonia’s security in 2001, with Javier Solana, as EU High Representative for Foreign Policy at the time, and George Robertson, then NATO Secretary-General, as the main negotiators at Ohrid. But the current crisis is not primarily driven by ethnic tensions. The security framing by the government obscures a much deeper crisis in the body politic, and a looming one for the economy.
After 24 years of independence, Macedonia’s model is crumbling. The ruling party has held onto power by controlling the state and media, and borrowing on international markets to keep the economy going. This has undermined the country’s fragile democracy – despite the promises made at Ohrid, which are still not fully implemented – and failed to build rule of law and a sustainable economy. Prime Minister Gruevski won power nearly a decade ago on promises of clean government and economic development. But he then perfected the system of clientelism and state capture begun by Branko Crvenkovski, his predecessor as opposition leader and prime minister, and later president. Gruevski has used snap elections twice to keep his party in power, and his leadership has become increasingly coercive. The wiretap recordings have confirmed that his VMRO-DPMNE party has captured all vital areas of the economy and established complete control over media, even imprisoning critical journalists. Macedonia’s ranking has fallen from 36 to 136 in the freedom of media index produced by Reporters Without Borders.
The government dispensed with parliamentary debate at the end of 2013. Faced with a short deadline to approve the next loan to pay pensions before the Christmas and New Year holidays, they forcibly expelled the opposition and media from the parliament during a debate over the state budget rather than find an agreement.
The public is scared. More than half of Macedonians believe they cannot freely express their opinions. A staggering 81 percent believe that fear of consequences for them and their families prevent them and others from speaking out. Their political fears are heightened by their economic vulnerability.
The chronic economic malaise underlying acute political crisis
The Macedonian economy appears to be financially stable. The government nurtures an image of business promoter and responsible borrower. Until recently, it was the region’s poster child for the International Monetary Fund and the World Bank. European banks were happy to earn good returns on Macedonian state bonds. Macedonia’s average GDP growth of 3% in the last three years is the highest in the region, completing this picture of prosperity.
But the economy is not sustainable. The government has used debt financing to invest in grandiose infrastructure projects, including the flagship “Skopje 2014” project, which erected statues and faux-classical buildings in the capital at a cost of over 600 million euro. Between 2008 and 2014, Macedonia’s public debt quadrupled, rising from 23% of GDP in 2008 to around 46% in 2014. Debt is projected to reach the 60% ceiling prescribed by the international financial institutions by 2019. The state budget increased by a third over the same period (from roughly 2 to 3 billion euro). Inflows of foreign direct investment averaged only 2.8% of GDP per year between 2009 and 2014, low even by regional standards.
Life for citizens has become more precarious. Around a third of the workforce is unemployed, the second highest rate in Europe after Kosovo. Without the heavy borrowing, the fragile economy could not sustain more than 300,000 pensioners, who rely on the state budget for half of their needs. Nor could it afford to pay the huge number of state employees. The last official number was 140,000 in 2008, and latest estimates range from 200,000 to 255,000. The total number of people employed in Macedonia is 700,000 – meaning that the state employs nearly a third of the workforce. No wonder people are leaving to seek better prospects abroad. A census has been postponed by the government, but Gallup estimates that more than 300,000 people have left the country. According to Deutsche Welle, most of the 120,000 Macedonians who acquired Bulgarian passports have already emigrated to the EU or elsewhere. Macedonia seems to have more registered voters (at 1,780,128) than residents.
VMRO-DPMNE has kept its hold on power in this unhappy state by resorting to strident nationalism and intimidation of its opponents, increasing the divisions in a multi-ethnic country. Ethnic Macedonians are understandably aggrieved by the lack of a solution to the dispute with Greece over the country’s name, which already blocked entry to NATO – and Gruevski has adroitly used the issue to rally nationalism in support of the government. Meanwhile, the ethnic Albanian political parties have been co-opted by their share in the spoils of mis-governance, even though their people remain even more alienated and poorer than the rest of the population.
The divisions are deepening right across society. Three-quarters of ethnic Albanians still firmly believe in EU and NATO accession as the way to a better future, but by now over 62 percent of other Macedonians think badly of joining the EU. Three-quarters of the ruling party’s supporters see the name dispute with Greece as the key reason for Macedonia’s now bleak EU accession prospects; but only 20% of opposition supporters agree. The biggest divide is between rich and poor, especially along party lines. The poor are undoubtedly getting poorer: resources available to the poorest fifth of citizens fell by 38% between 2008 and 2012. But business profits have grown by almost two and a half times since the year 2000. Nearly 80% of all Macedonians believe it is unfair that employment in state institutions and general prosperity is based on political party membership.
The way forward: a unity government with EU and NATO support
Macedonia is once again becoming a security threat on the EU’s borders. But this time it’s different: a non-partisan civic movement has taken to the streets for the first time to change the country. There is a real opportunity to use this energy to build democracy and a market economy in this multi-ethnic state.
No party is doing well in Macedonia: the secret recordings have lost the government all credibility, but the public has little faith in the leaders of the opposition and ethnic Albanian parties either. The immediate solution lies in collective action first by all those who have created the problem.
Now that three of the prime minister’s key allies have tendered their resignations, Macedonia should turn again to the solution that averted the civil war in 2001: a unity government composed of the four main parties. To foster the necessary compromises and offer a fresh start. it would not include the current prime minister, public prosecutor or speaker of the parliament – but opposition parties must be involved in open and credible oversight of the intelligence agencies, and take responsibility for the discredited interior ministry.
The most promising scenario is a government of national unity that lasts for 12-18 months, to prepare the country for free and fair elections, and create an independent commission to investigate all the events since the opposition was violently ejected from the parliament in 2013. And it should agree on a common negotiating platform on the name dispute with Greece. Macedonia’s newly reinvigorated civil society should also contribute to the work of the parliamentary commissions and monitor the new government’s progress in restoring the accountability of public institutions. The country must avoid just replacing the driver in the seat of the captured state machinery, by increasing inclusion and pluralism in governance.
As so often in the Balkans, such a scenario will be impossible without EU and NATO assistance. The default position among EU foreign ministers is to expect sovereign countries to sort out their own political problems through democratic institutions. But after a decade of unconsolidated democracy and state capture, Macedonia does not possess those institutions. Therefore, other levers of influence are needed. NATO could offer a tangible incentive to all parties by offering a possibility to re-open membership talks. EU accession negotiations are far off because so much time has been lost on necessary reforms, but the enlargement process is vital to offer hope, especially to the ethnic Albanians, and guidance to reformers who are seeking to take back captured parts of the state. The support of EU institutions, member-states and banks is vital for the country’s macroeconomic stability. Neighbouring governments could also exert more pressure, as their own security is at stake. Bulgarian Prime Minister Borisov was the first to request Gruevski to step down.
The EU can no longer afford to indulge a model of governance in Macedonia that has been far more aggressive in its authoritarian zeal than nearby Montenegro or Turkey. The European People’s Party has a particular responsibility to get involved, having accepted and protected VMRO-DPMNE as a sister party for all these years. Now it must act to uphold the standards of democracy on which it was founded, by putting pressure on VMRO-DPMNE to relinquish its grip on power and join a unity government. The time to move is now, as the costs of inaction will continue to rise.