The former Yugoslav Republic of Macedonia (FYRM) is landlocked in southeastern Europe. Despite the signing of an accord in 1995, Greece remains suspicious that it harbors ambitions about absorbing northern Greece – also called Macedonia – in a "Greater Macedonia." A militant movement among ethnic Albanians erupted into violent conflict in March–September 2001, but a peace agreement was reached after the involvement of a NATO force.

Slav Macedonians, speaking a language akin to Bulgarian, are in the majority. The large Albanian minority claims to amount to over one-third of the population. They maintain strong links with Albanians in neighboring states. Months of violent conflict sparked by ethnic Albanian insurgents seeking greater rights resulted in a new constitution in 2001 guaranteeing equality.

Macedonians are mostly Orthodox Christians, but there are a substantial number of Slavic Muslims (Pomaks), whose ancestors converted during the Ottoman occupation. Ethnic Albanians are mostly Muslim.

Strengths

Growth in private sector and foreign investment. Mineral resources.

Weaknesses

Poorest of former Yugoslav republics. Loss of trade in mid-1990s due to Greek embargo and sanctions on Yugoslavia. Dependence on oil, gas, and machinery imports. Disruption caused by Kosovo conflict and 2001 violence.

Political parties are largely fragmented along nationalist lines. The right-wing VMRO–DPMNE and the DPA are the relatively moderate representatives of the ethnic Slav and Albanian communities respectively.

VMRO–DPMNE Prime Minister Ljubco Georgievski led a pan-ethnic coalition, including the DPA, after the defeat of reformed communist parties in 1998. Although hounded by the opposition, this government survived into 2001, when an insurrection by Albanian rebels (UCK) prompted the creation of a government of "national unity." The fragile grouping survived long enough to conclude a peace deal in August with the UCK, drafting a new, more equal constitution and guaranteeing Albanian rights. However, once peace was secured at the end of 2001, the coalition fractured.

Relations with Greece were normalized in 1995. Macedonia's hosting of NATO troops in the Kosovo war in 1999 placed it firmly in the Western fold. Nationalists resented Western pressure to compromise with Albanian militants.

The army relies heavily on officer training in NATO countries. A major overhaul was announced to tackle weaknesses revealed by the 2001 conflict.

Minerals remain underexploited. South-facing fertile plains produce early fruit and vegetables for EU markets.

Industrial pollution affects water quality. The Titov Veles lead and zinc smelter is the worst culprit for toxic waste.

A proposed east–west road and rail route from Tirana in Albania through Macedonia to Sofia in Bulgaria is to reduce reliance on Serbian routes.

In theory, the state guarantees universal health care, but effective and speedy treatment is increasingly only available in the private sector.

A new university at Tetovo, with teaching in Albanian as well as Macedonian, officially opened in 2001.

Cigarette smuggling is dominated by Albanian gangs also involved in the illegal arms trade and heroin trafficking.

Incomes have fallen by more than two-thirds since 1990, although smuggling and organized crime have made a few people conspicuously wealthy.

The major attraction is the ecclesiastical center of Ohrid, situated on Europe's deepest lake, with Roman and Byzantine ruins. Other lake resorts and skiing in the Sara mountains in the northwest, have potential once stability is restored.

The end of Ottoman rule saw historic Macedonia divided between Serbia, Bulgaria, and Greece in 1912–1913. What is now FYRM was incorporated into Serbia.

• 1944 Tito establishes republic, stressing Macedonian identity.
• 1989–1990 Multiparty elections.
• 1991 Independence declared. EU recognition delayed by Greeks.
• 1995 Accord with Greece.
• 1998–1999 Right-wing VMRO– DPMNE coalition wins elections.
• 1999 Upheaval over Kosovo conflict.
• 2001 Peace agreement and new constitution after NATO involvement to end conflict with ethnic Albanian militants.