Despite some democratic reform since the change in political power in 2017, North Macedonia still faces important governance challenges. State capture, corruption in the judiciary and an ineffective public administration are among the key obstacles to a successful democratic and economic transformation. The rule of law, fulfilment of human rights, environmental sustainability and inclusive economic development are threatened by systemic features of the political sphere. These include the capture of institutions by political parties and politically connected businesses, persistent clientelist practices with regards to employment in public administration and the continuing politicisation of ethnicity. To assist the country to respond to these challenges, international partners could look to support judicial reforms and the modernisation of public administration employment practices to tackle widespread clientelism, nepotism and cronyism in North Macedonia.