The report is structured to allowreaders familiar with Macedonia s agriculture sector toquickly grasp the essentials needed to improve the sector,as well as to inform a general audience on how to addressthe challenges of a modern European Union (EU)-aspiringstate. Chapter two provides an in-depth analysis of thesectoral background, illustrating the main characteristicsand challenges of Macedonia s agriculture sector. Theillustration takes an integrated approach to the sector,covering a vast range of inter-related topics including theprominence of the sector not only in terms of its economicand social contribution but also its implications for trade,the urban-rural poverty gap and shared prosperity, farmstructure, climate adaptation, and capacity building.Chapter three draws on lessons from the European Union (EU)and provides a framework to analyze Macedonia s agriculturalsupport programs. Further, the chapter provides a primer onthe EU s Common Agricultural Policy (CAP) and its measuresto support agriculture. Chapter four presents conciseempirical evidence of the coverage and institutionalcapacity of the agricultural programs in Macedonia underboth pillar one and pillar two measures. Chapter five thenbuilds on the primary diagnostic set out in the previouschapters and critically examines the alignment ofMacedonia s agricultural programs with the government sstated objectives of poverty reduction, competitiveness, andsustainable development. The results are at best mixed,suggesting substantial pathways for scaling up andexploiting untapped opportunities. Finally, chapter sixsynthesizes the overall evidence and presents policyimplications and recommendations.
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