Macedonia has come a long way in its transition process since the disintegration of Yugoslavia. Important reforms have been launched, setting the country on the path of successful transition towards a democratic society and a free market economy. The country managed to resolve the armed conflict between the main ethnic communities in 2001 with the exemplary Ohrid Framework Agreement, which led to a consistent decentralisation process. Nevertheless, rule of law and democratic election processes still fall short of meeting European standards. Economic reforms have started to gain momentum since mid-2000, but the recent global economic crisis has started to hit Macedonia severely. The unemployment rate is among the highest in Europe, and reforms have not yet succeeded in alleviating the widespread poverty. The driving force behind the country's development agenda is the prospect of integration into the European Union and the NATO.

Switzerland has been providing support to Macedonia since 1992. Initially this covered a wide range of topics: contributions to settle Macedonia's arrears with the World Bank, policy development with the Macedonian government, projects on conflict resolution, infrastructure programmes in the fields of hydroelectricity, water and sanitation, trade facilitation and investment support. Alongside the Swiss Agency for Development and Cooperation SDC and the State Secretariat for Economic Affairs SECO, Political Division IV plays an important role. The activities of the agencies are closely coordinated so as to optimise the effectiveness and visibility of Swiss contributions.

In the period from 2005 to 2008, the Swiss Cooperation Programme was built on three domains of interventions: Democratic Governance, Sound Economic Development and Basic Infrastructure/Social Services. As a continuation and reflection of the country development, the SDC and SECO Cooperation Strategy 2009 - 2012 is aligned to Macedonia's strategic orientation and documents and has been designed to focus and consolidate Swiss cooperation in Macedonia. The strategy draws on acquired sector and country expertise and leverages related networks. It benefits from past investments and strategic assets accumulated, while also opening up promising avenues. The overall aim is to support the Macedonian transition and European integration process by contributing to improvements in the following areas:
• Further development of a democratic state, with parliament effectively formulating laws and controlling policies, local government delivering European-standard services to citizens, and civil society holding public services and the private sector accountable;
• Establishing the sustainable use of natural resources, i.e. facilitating the implementation of an integrated water resource management system, and the long-term enforcement of environmental policies.

The thematic portfolio focuses on two domains and related sub-domains:
1 Rule of Law and Democracy, implemented by SDC, with the sub-domains Facilitating Decentralisation, Strengthening Civil Society and Mainstreaming Democratic Lawmaking.
2 Water and Environment, implemented by SECO & SDC, with the sub-domains: Water and Wastewater Management and Protection of Biodiversity.
Regional cooperation is an essential element of the Cooperation Strategy in terms of solving region-specific problems through cooperation between countries, improving relations and enhancing mutual trust.
In addition, Gender and Good Governance have been selected as transversal themes for all projects and programmes. In order to increase its aid effectiveness, the strategy adheres to the principles of interventions, i.e. country-specific adaptations of the principles of the Paris Declaration.