Cover STORY
Cover STORY
Winter 2018 / Issue 56
The informal ( grey ) economy is a global problem that seriously undermines the stability and development of construction companies . It prevents and disables the process of growth and development of the companies that continuously observe the established value system , and rewards those which build their position on the bypassing of these rules and values , leaving lasting consequences on the sector through unfair competition and distorting the growth potential , as well as through poor quality of construction and impairment of the sector ’ s image and reputation in the country . Construction companies are disadvantaged in the fight against the grey economy , mostly through the failure to combat such unfair competition , so their capacities are reduced and their revenue spent on daily operations rather than invested in research and development . This lack of investment diminishes their competitiveness on both the domestic and the foreign markets . The share of Macedonian construction companies on the foreign markets is minimal , while the percentage of foreign construction companies on the territory of Macedonia is significant , and the main contractors on the largest projects in Macedonia are foreign companies . This is also related to the inability of the Macedonian construction companies to grow and develop and meet the criteria of the tendering procedures for major infrastructure projects .
Therefore , the problem of grey economy needs to be addressed and resolved with activities and incentive measures aimed at domestic companies to help them overcome these conditions and stimulate their growth and development so they can participate in the foreign markets . By expanding on foreign markets and increasing exports , construction companies will help increase of the GDP of the country . This way , the construction industry will become a reliable partner of the country in improving the economy . Hence , a serious analysis of the legislation must be undertaken , changes in terms of overcoming the individual solutions set forth in the provisions of the law shall be implemented , the contradiction of different legal solutions for the same legal matter shall be removed , multiple definitions of notions in the laws shall be eliminated since it creates possibility for arbitrary interpretation and use of the provisions depending on the person applying them , thus eliminating the possibilities for misuse as well as introducing clear unambiguous provisions for application by the inspection authorities . In this way , the application will be harmonized and an appropriate basis for upgrading and establishing a professional and highly qualified inspectorate with clearly defined obligations and right will be developed . By doing so , the relations between the public and private sector will improve in terms of building better trust , respect and complementing goals , and the barriers to co-operation will be overcome .
Inevitably , we need to work towards reducing the negative impact of the grey economy and its adverse consequences by identifying the individuals participating in it , while at the same time stressing the positive results on the tax system , increasing trust , and providing stability and equality for all .
On the other hand , the authorities must be careful not to apply excessively repressive measures because they can send some , especially small new construction companies , back towards the grey economy due to their inability to meet the requirement or survive on the formal market . The new provisions should be mainly focused on incentivized measures for the formalization of business operations and illegal work . These measures require serious analysis so as not to cause the opposite effect of undermining competition , and so their application could be clearly defined , controlled , and protected from manipulation . In that sense Macedonia , as a small country , should see and build its future in assisting and developing the small and medium-sized enterprises in the county and at the same time establishing measures , activities , and subsidies for large companies so they can compete on the global market . Here we have the diagnosis and the solutions ; what we need is a strong and serious will to implement them , not only by the Government , but by all stakeholders in the construction sector .
New Member Highlight
Zegin doo is the first and biggest wholesaler in Macedonia and its basic activity is internal and external trade with pharmaceuticals OTC-Products , food supplements ; medical devices ; dietetic , macrobiotic and cosmetic products . The company is one of the largest and most successful wholesalers of medicines in the country , with the best infrastructure and the widest distribution network . For the past 29 years of experience , the company has become a leader on the Macedonian market , with total of 3.000 employees .
12 AmCham Macedonia Magazine