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                                                                                                              January 30, 2012




FYR Macedonia: Cash Transfers Keep Students in School
Denis Boskovski, Communications Officer in the World Bank
Skopje Office, offers this story.
                                                                    Photo Gallery
Kristina Donevska and Zulejla Abdulova are no different from
their schoolmates at "Boro Petrusevski" secondary vocational
school in the former Yugoslav Republic of Macedonia. The
future flight controller and freight forwarder come to school
every day with the same hopes and dreams as other
youngsters their age. They work hard for good grades and
hope for the best. The difference between them and other
students is they've had to work harder to get here and do
well, because money at home was so tight. Paying for
                                                                    Related Links
textbooks and notepads, clothes, and transportation has been
difficult. Fortunately, obtaining the basics is now somewhat
                                                                    The World Bank in FYR Macedonia
easier thanks to a conditional cash transfer program.
                                                                    Conditional Cash Transfers Project
Kristina and Zulejla are not alone. Families of approximately     Ministry of Labor and Social Policy
9,000 students throughout the country struggle to make ends
                                                                  Country Program Snapshot
meet and educate their children. All of those students now
receive conditional cash transfers through a program              Project Snapshot
supported by the World Bank, which provides small sums of
money to poor families as long as they keep their children in secondary school.

                         "These are the funds that I use for notebooks and transportation to and from my
                         home town. It greatly relieves the strain on my family's budget and facilitates my
                         education," says Kristina, the secondary school student who came from
                         Kumanovo to study in Skopje.

                         "Besides the financial assistance," Zulejla adds, "the program also inspired two
                         very important notions: the self-initiative to apply and receive it, and regular
                         attendance at the classes, which is a pre-condition to receive the assistance,
Kristina Donevska        both of which contribute to our development as students and future
                         professionals."

                         The connection between poverty and education has a long history. While FYR
                         Macedonia has demonstrated solid economic growth, poverty has not
                         decreased since 2002, and remains a major development challenge. An
                         estimated 20% of the population lives below the absolute poverty line, unable to
                         buy enough food or meet basic needs.

                         Different studies have shown that poverty is driven by unemployment, which is
                         directly related to low education attainments. Indeed, the country's National
Zulejla Abdulova         Employment Strategy diagnoses a lack of skills as a key determinant of
                         individual unemployment: almost 70% of those with primary education or less
are poor.
The government recognized the need to act fast and carefully target the root of the problem. To break
the cycle of poverty, it needed to increase access to education. With the support from the World Bank,
the Conditional Cash Transfer project was designed, and began paying out in 2009. The program
provides EUR 200 annually to families receiving social assistance whose children regularly attend
secondary schools.

                        "Boro Petrusevski" high school has long served as an example of an institution
                        that inspires the best in its students and teachers. It has a practical curriculum
                        and offers international competitions for students. It cares for needy students by
                        connecting them with private companies that have a demand for skilled labor
                        and are willing to hire students before they graduate, and let them work flexible
                        schedules so they can stay in school while working.

                       "The conditional cash transfer program comes at the right time and
Sonja Ristovska        complements the activities our school already had with an aim of making it
                       possible for the students to have brighter and more secure futures, with
adequate education," says school principal Sonja Ristovska.

                        Looking ahead, Kristina and Zulejla's ambitions have a greater chance to be
                        fulfilled than ever before. The old saying says that "sometimes it takes a little to
                        make a lot." This program may be just the thing to do it. As Amanda Arifovska,
                        future student of Business and Logistics at the Skopje University, puts it:
                        "Besides its financial benefits, the program has also brought a bit more optimism
                        among the students. And optimism is contagious."


Amanda Arifovska