91599
                          Former Yugoslav Republic of Macedonia

                       Country Partnership Strategy for FY2015-2018

                                       Chair Summary*

                                       October 16, 2014

        Executive Directors discussed the Joint IBRD/IFC/MIGA Country Partnership Strategy
for the Former Yugoslav Republic of Macedonia for the period of FY2015-2018.

       Directors showed strong support for the strategy and its two pillars: i) Growth and
Competitiveness; and, ii) Skills and Inclusion. They were pleased that the CPS is aligned with
the World Bank Group’s twin goals and introduces elements of the new Country Engagement
Model, particularly the reliance on growth and inclusion diagnostics and heightened selectivity
of the WBG program.

       Directors encouraged the Bank to strengthen the dialogue with authorities on economic
and social inclusion, as past growth has not yet closed all gender, ethnic and geographic gaps.
They also emphasized that data quality, reliability and availability must improve in order to
define effective national strategies and allow the Bank to gauge and modify its strategy in
support of country goals. The importance of energy efficiency, diversification of the energy
supplies, and disaster risk management was also underlined.

         Directors welcomed the strategy’s attention to effective public financial management and
fiscal transparency and urged the staff to use the recommendations of the ongoing Public Finance
Review to underpin future Development Policy Lending. While Directors acknowledged
progress made by the government toward transparency in the public sector, they urged continued
efforts in this regard.

        Directors encouraged close collaboration across the Bank, IFC and MIGA to increase
support for private sector investment, growth, job creation and skills development. They also
emphasized the need for the World Bank Group program to leverage European Union support,
particularly by improving absorption of the Instrument for Pre-Accession funding. This was
seen as an important contribution by the WBG to maintaining momentum of the EU accession
process.

       Finally, Directors encouraged the Bank Group to continue close cooperation with other
development partners active in the Former Yugoslav Republic of Macedonia.




_____________________
*This summary is not an approved record.