Name of the project: Addressing Corrosive Capital Flows

Donor:  Center for International Private Enterprise (CIPE)

Duration: July 11, 2019 – June 30, 2020

Budget: $32,517.89

Partners: The International and Security Affairs Centre – ISAC Fund (Serbia), Centre for Contemporary Politics (European Western Balkans) (Serbia), Centers for Civil Initiatives (Bosnia and Herzegovina) and Center for Democratic Transition (Montenegro)


The objectives of this project are 1) to strengthen the role of private sector-led initiatives that advance local solutions to economic and governance challenges and 2) to improve governance based on liberal democratic and marker-oriented principles and institutions in authoritarian countries and emerging democracies. Project’s case studies in North Macedonia are the Miladinovci-Shtip and Kichevo-Ohrid highway sections, whose constructions is financed by a loan from the Export-Import Bank of China and led by the Chinese company Sinohydro Corporation Ltd. The project activities entail strategic planning, identification and analysis of high-risk foreign capital inflows and governance gaps, roundtables on the policy papers with the private sector, meetings on the policy papers with public officials, and public policy roundtables and other local outreach on the policy papers.

Настани поврзани со проектот


Podcast: Hustled Into a Dead End Chinese Corrosive Capital in North Macedonia

Podcast: Hustled Into a Dead End Chinese Corrosive Capital in North Macedonia IDSCS · Hustled Into a Dead End: Chinese Corrosive Capital in North Macedonia


Hustled Into a Dead End: The Delusional Belief In Chinese Corrosive Capital for the Construction of North Macedonia’s Highways

This research paper examines trade relations and economic engagement between the People’s Republic of China and Republic of North Macedonia. It includes an assessment of how Chinese investment in the country affects its governance. The corrosive capital intertwined in this investment “undermines trust in institutions, weakens the rule of...


Corrosive capital flows are threat for the fragile democracies in the Western Balkans

The Institute for Democracy organised online conference “Corrosive capital’s threat to democracies in the Western Balkans” where researchers from North Macedonia, Montenegro and Serbia presented their findings addressing corrosive capital flows in these three countries. The president of IDSCS, Marko Troshanovski in his welcoming remarks noted that when we...


Infographic: Public opinion on North Macedonia’s best ally (2017-2019)


Infographic: Chinese and EU 28 cumulative investments in North Macedonia (2010-2018)


Infographic: Foreign direct investments in North Macedonia (2010-2018)


„Quick” and „cheap” loans for expensive and aggravated capital project implementation

Concluding direct agreements on capital infrastructure projects without public bidding, increases the risk of corruption. This could be observed in the agreement concluded by the Macedonian government at that time with the Chinese company “Sinohydro” on construction of the Miladinovci-Shtip and Kichevo-Ohrid highways. Nevertheless, in spite of this risk,...


Addressing Corrosive Capital Flows