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In 1946 macedonia became an autonomous republic within the Federation of Yugoslavia. Forty-five years later, independence was peacefully obtained, but problems with neighboring Greece followed when the Greek government insisted that the name Macedonia was Hellenic in nature. Briefly known as the Former Yugoslav Republic of Macedonia, the country's name was shortened over Greek objections. Economic relations between the two countries have resumed, but the relationship remains tenuous. Although Macedonia is landlocked, it shares Lake Ohrid with Albania and Lakes Prespa and Dyran with Greece. The Vardar River runs through much of Macedonia. Summers and autumns are warm and dry in Macedonia, followed by cold winters and heavy snow. The land is generally mountainous with deep basins and valleys, and the country is vulnerable to high seismic activity.

Due to its strategic location, Macedonia serves as a major transportation corridor from western and central Europe to the Aegean Sea and between southern and western Europe. Despite rich natural resources of low-grade iron ore, copper, lead, zinc, chromite, manganese, nickel, tungsten, gold, silver, asbestos, gypsum, timber, and arable land, the Macedonian economy remains weak. Economic woes have been influenced by outside factors, which include the breakup of Yugoslavia, the fragile relationship with Greece, and civil strife in Albania.

With a population of 2,045,262, Macedonia has a per capita income of $7,400. An accurate picture of the Macedonian economy is virtually impossible because of the large informal sector that employs around one-fifth of the population. Unemployment is estimated at 38 percent, and over 30 percent of Macedonians live below the poverty line. The United Nations Development Programme Human Development Reports rank Macedonia 59th in the world in overall quality-of-life issues.

Environmental Issues

Macedonia's major environmental problems are air pollution from numerous metallurgical plants and a lack of waste management facilities. Nearly 60 percent of the people live in urban areas such as the capital city of Skipje. Like the capital, other areas experience severe problems from industrial pollution. Mining and energy plants in Bitola are responsible for the release of sulfur dioxide, carbon monoxide, nitrogen oxides, and dust. In Veles, metallurgical and chemical plants release gases and heavy metals into the air. Such companies are also responsible for the pollution of groundwater and waterways.

Approximately 36 percent of Macedonia's land is forested, and the government has protected 7.1 percent of the land area. National parks have been established in Mavrovo, Galicica, and Pelister. National reserves on Prespa Lake and Crna Reka Gorge are strictly protected. Macedonia's unique geography, which is derived from the three tectonic lakes and over 30 glacial lakes, merits special care. Consequently, specific sections of lakes and swamps are under natural protection to oversee the rich variety of flora, fauna, and fungi that flourish in these areas. Of 78 mammal species endemic to Macedonia, 11 are endangered; however, only three of the 199 species of birds are endangered.

Environmental compliance has been difficult in Macedonia because monitoring mechanisms have not been in place to enforce existing laws. In response to renewed commitment to environmentalism, parliament passed the Act on Environment and Nature. Under the Ministry of Environment, the Inspectorate for Environment and Nature Protection and Promotion has been given the authority to oversee compliance with the law in the areas of air and water pollution, protection of natural resources, soil degradation and pollution, hazardous noise, and radiation. Violators face a fine of 200,000 to 300,000 denars.

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