Foreign Aid and Foreign Investment (MK0074)

Foreign aid and foreign investment

XIV. Transparency: Foreign Aid

Commitment 5.3: Foreign Aid and Foreign Investment

Commitment Text: 5.3. Foreign aid and foreign investment: a. Publication of documents on foreign investment in the country; b. Publication of data on obtained and planned foreign assistance (bilateral aid and EU funds).

Responsible institution(s): Ministry of Finance; Secretariat for European Affairs (SEA) 

Supporting institution(s): Agency for Foreign Investments

Start Date: 1/1/2014     End Date: 31/12/2016

Commitment aim

This commitment sought to increase transparency by proactively publishing data on foreign investments in Macedonia and foreign aid (bilateral and EU funds) received.

Status

Midterm: Not started

According to the midterm self-assessment report as well as information received from the Secretariat for European Affairs (SEA), no progress was made in improving the database on foreign donor assistance. The IRM researcher’s search of the Internet found that information was last released in October 2014, and that data from the Central Donor Assistance Database (CDAD) was not reusable.

For more information, please see the 2014-2016 IRM midterm report.

End of term: Not started

The government did not report progress on the commitment. Its self-assessment report noted the preparatory activities and meetings held between the Agency for Foreign Investments, the SEA, and civil society. Its conclusion was that information was not released because there was no consensus on the data asked to be made public. Civil society representatives submitted their list of preferred data, and filed for access to the documents. The documents released did not contain information on the level of state subsidies or tax incentives.^{[Note 122: Interview with Darko Antic, Association for Solidarity and Equality of Women.]} Additionally, the government reported two barriers to releasing this data. First, not all public institutions register their foreign funds, so their data are incomplete. Second, some of the contracts cannot be released without the prior consent of the other party. Considering that there was no proactive disclosure made, the IRM researcher concluded that there was no progress.

Did it open government?

Access to information: Did not change

Public Accountability: Did not change

Before OGP, the Agency for Foreign Investments did not provide data on foreign investments in the country.^{[Note 123: http://www.investinmacedonia.com/.]} However, the Secretariat for European Affairs had, for a decade, been maintaining a Central Donor Assistance Database.^{[Note 124: http://cdad.sep.gov.mk/. ]} This commitment sought to improve the proactive release of information on foreign aid (donors’ assistance), and allow access to information on foreign investments. In particular, it intended to improve fiscal transparency by publishing information on state subsidies or tax incentives for foreign investments. However, the lack of implementation caused data not to be released and, so, the commitment did not enhance access to information or create opportunities for holding officials accountable.

Carried forward?

Two new commitments have been included in the new action plan to address access to information on foreign aid (new commitment 5.3) and state subsidies (new commitment 5.9).

The commitment on foreign aid is limited in scope, as it refers only to Dutch aid given through their Facility for Infrastructure Development (ORIO). It is not clear how the commitment will build on the information already made available by the Netherlands.^{[Note 125: https://aiddata.rvo.nl/programmes/NL-KVK-27378529-19390/?tab=countries. ]}

The commitment on state subsidies reflects IRM recommendations, and should ensure access to data on tax incentives and state subsidies by category.