By 1982 economists and the party leadership admitted that the
NEM had not led to the anticipated upturn in overall productivity
and efficiency. Even upwardly skewed official statistics indicated
that aggregate economic growth had dropped to its lowest postwar
level. Under the NEM, enterprises could still get approval from
state pricing authorities for price increases with marginal or
nonexistent quality improvement--an important factor in evaluating
official figures.
The Bulgarian response to declining growth rates under NEM was
to initiate a second set of NEM reforms. Measures in 1982 and 1983
concentrated almost exclusively on financial incentives and prices.
Net income was identified as the major basis for judging plan
fulfillment. The only other targets were tax payments, domestic and
imported input limits, and minimum export levels. The emphasis on
self-supporting net income was extended downward to the brigade and
upward to the associations. Guarantees of a minimum wage were
removed for workers and all levels of management. Ministers
themselves now were subject to salary reductions if their
industrial association failed to meet the streamlined list of
targets. Ministry access to budgetary subsidies for new investment
was drastically cut and limited to a fixed term. Most investment
capital outside net income had to be procured from the BNB. The
bank's increasingly independent guidelines included the
authorization to hold regional competitions for investment funds.
Interest rates remained low however, ranging between 2.5 and 8
percent.
All these reforms did little to invigorate economic growth. In
the Eighth Five-Year Plan (1981-5), the NMP growth rate dropped to
3.7 percent, its lowest postwar level. Officially, industry grew at
a rate of 7 percent and construction at 5.4 percent, but
agriculture declined by 3.9 percent per year.
In 1985 Mikhail S. Gorbachev visited Bulgaria and reportedly
pressured Zhivkov to make the country more competitive
economically. This led to a Bulgarian version of the Soviet
perestroika program (see Glossary).
New Regulations on
Economic Activity took effect in January 1987. These directives,
intended to stimulate "socialist competition," allowed enterprises
to retain a much greater share of their profits and also required
them to compete for investment capital from newly formed commercial
banks. In June 1987, in response to widespread dissatisfaction and
confusion over the measures, a decree on collective and individual
labor activities made it possible for state economic organizations
to lease small trading and catering facilities to private
individuals by offering contracts at public auctions. The auctions
were an abject failure, however, because of high taxes, high rents,
restricted access to capital, uncertain supplies, the short
duration of the contracts, and legal insecurity. The idea was
quietly abandoned.
Finally, in January 1989, the party issued Decree Number 56.
This decree established "firms" as the primary unit of economic
management. Theoretically, four types of firm could be created:
joint-stock firms, firms with limited responsibility, firms with
unlimited responsibility, and citizens' firms. The differences
among the first three types of firms were small. But citizens'
firms offered the potential of individual, collective, and
associative ownership arrangements. In a fundamental departure from
the socialist prohibition of private citizens hiring labor, as many
as ten people could now be hired permanently, and an unlimited
number could be hired on temporary contracts. A wave of
reorganizations produced new, larger firms, depriving numerous
enterprises of their self-management status. Nonetheless, hundreds
of private and cooperative firms were authorized by Decree Number
56.
Other elements of the decree allowed firms to issue shares and
bonds and pay dividends, with a number of restrictions. Other
clauses sought to encourage foreign investment in the country.
State-owned enterprises that were transformed into joint-stock
firms now could have foreign shareholders. Although tax incentives
and legal guarantees were provided for joint ventures, little
foreign investment was stimulated. In 1989 and 1990, only 117 joint
ventures were consummated, totaling US$10 million in Western
capital. In all probability, low labor costs were not enough to
attract foreign investment given remaining organizational
disadvantages, poor infrastructure, low political credibility, the
nonconvertability of the lev, and close economic ties to the Soviet
Union.
This last round of reforms by the Zhivkov regime confused
rather than improved economic performance. Statistics on growth for
1986-88 indicated a 5.5 percent annual rate, up from the 3.7
percent rate achieved during the previous five-year plan. However,
these statistics were internally inconsistent and widely disputed
in the press. Expert observers speculated that they were the
minimum growth the regime could tolerate given the 6 percent target
rate in the five-year plan.
Ultimately, the reforms failed to radically change the economic
conditions in the country. Public discontent increased and finally,
emboldened by revolutions throughout Eastern Europe, a popular
revolt ousted Todor Zhivkov in November 1989. By early 1990, the
first attempts were being made to establish a market-based economy.
Background | | The Bulgars, a Central Asian Turkic tribe, merged with the local Slavic inhabitants in the late 7th century to form the first Bulgarian state. In succeeding centuries, Bulgaria struggled with the Byzantine Empire to assert its place in the Balkans, but by the end of the 14th century the country was overrun by the Ottoman Turks. Northern Bulgaria attained autonomy in 1878 and all of Bulgaria became independent from the Ottoman Empire in 1908. Having fought on the losing side in both World Wars, Bulgaria fell within the Soviet sphere of influence and became a People's Republic in 1946. Communist domination ended in 1990, when Bulgaria held its first multiparty election since World War II and began the contentious process of moving toward political democracy and a market economy while combating inflation, unemployment, corruption, and crime. The country joined NATO in 2004 and the EU in 2007.
|
Location | | Southeastern Europe, bordering the Black Sea, between Romania and Turkey
|
Area(sq km) | | total: 110,879 sq km land: 108,489 sq km water: 2,390 sq km
|
Geographic coordinates | | 43 00 N, 25 00 E
|
Land boundaries(km) | | total: 1,808 km border countries: Greece 494 km, Macedonia 148 km, Romania 608 km, Serbia 318 km, Turkey 240 km
|
Coastline(km) | | 354 km
|
Climate | | temperate; cold, damp winters; hot, dry summers
|
Elevation extremes(m) | | lowest point: Black Sea 0 m highest point: Musala 2,925 m
|
Natural resources | | bauxite, copper, lead, zinc, coal, timber, arable land
|
Land use(%) | | arable land: 29.94% permanent crops: 1.9% other: 68.16% (2005)
|
Irrigated land(sq km) | | 5,880 sq km (2003)
|
Total renewable water resources(cu km) | | 19.4 cu km (2005)
|
Freshwater withdrawal (domestic/industrial/agricultural) | | total: 6.92 cu km/yr (3%/78%/19%) per capita: 895 cu m/yr (2003)
|
Natural hazards | | earthquakes; landslides
|
Environment - current issues | | air pollution from industrial emissions; rivers polluted from raw sewage, heavy metals, detergents; deforestation; forest damage from air pollution and resulting acid rain; soil contamination from heavy metals from metallurgical plants and industrial wastes
|
Environment - international agreements | | party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Wetlands signed, but not ratified: none of the selected agreements
|
Geography - note | | strategic location near Turkish Straits; controls key land routes from Europe to Middle East and Asia
|
Population | | 7,204,687 (July 2009 est.)
|
Age structure(%) | | 0-14 years: 13.8% (male 509,544/female 484,816) 15-64 years: 68.5% (male 2,426,060/female 2,508,772) 65 years and over: 17.7% (male 518,711/female 756,784) (2009 est.)
|
Median age(years) | | total: 41.4 years male: 39.2 years female: 43.6 years (2009 est.)
|
Population growth rate(%) | | -0.79% (2009 est.)
|
Birth rate(births/1,000 population) | | 9.51 births/1,000 population (2009 est.)
|
Death rate(deaths/1,000 population) | | 14.31 deaths/1,000 population (July 2009 est.)
|
Net migration rate(migrant(s)/1,000 population) | | -3.11 migrant(s)/1,000 population (2009 est.)
|
Urbanization(%) | | urban population: 71% of total population (2008) rate of urbanization: -0.3% annual rate of change (2005-10 est.)
|
Sex ratio(male(s)/female) | | at birth: 1.06 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 0.97 male(s)/female 65 years and over: 0.68 male(s)/female total population: 0.92 male(s)/female (2009 est.)
|
Infant mortality rate(deaths/1,000 live births) | | total: 17.87 deaths/1,000 live births male: 21.28 deaths/1,000 live births female: 14.25 deaths/1,000 live births (2009 est.)
|
Life expectancy at birth(years) | | total population: 73.09 years male: 69.48 years female: 76.91 years (2009 est.)
|
Total fertility rate(children born/woman) | | 1.41 children born/woman (2009 est.)
|
Nationality | | noun: Bulgarian(s) adjective: Bulgarian
|
Ethnic groups(%) | | Bulgarian 83.9%, Turk 9.4%, Roma 4.7%, other 2% (including Macedonian, Armenian, Tatar, Circassian) (2001 census)
|
Religions(%) | | Bulgarian Orthodox 82.6%, Muslim 12.2%, other Christian 1.2%, other 4% (2001 census)
|
Languages(%) | | Bulgarian 84.5%, Turkish 9.6%, Roma 4.1%, other and unspecified 1.8% (2001 census)
|
Country name | | conventional long form: Republic of Bulgaria conventional short form: Bulgaria local long form: Republika Balgariya local short form: Balgariya
|
Government type | | parliamentary democracy
|
Capital | | name: Sofia geographic coordinates: 42 41 N, 23 19 E time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time) daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
|
Administrative divisions | | 28 provinces (oblasti, singular - oblast); Blagoevgrad, Burgas, Dobrich, Gabrovo, Khaskovo, Kurdzhali, Kyustendil, Lovech, Montana, Pazardzhik, Pernik, Pleven, Plovdiv, Razgrad, Ruse, Shumen, Silistra, Sliven, Smolyan, Sofiya, Sofiya-Grad, Stara Zagora, Turgovishte, Varna, Veliko Turnovo, Vidin, Vratsa, Yambol
|
Constitution | | adopted 12 July 1991
|
Legal system | | civil and criminal law based on Roman law; accepts compulsory ICJ jurisdiction with reservations
|
Suffrage | | 18 years of age; universal
|
Executive branch | | chief of state: President Georgi PARVANOV (since 22 January 2002); Vice President Angel MARIN (since 22 January 2002) head of government: Prime Minister Boyko BORISSOV (since 27 July 2009); Deputy Prime Ministers Simeon DJANKOV and Tsvetan TSVETANOV (since 27 July 2009); cabinet: Council of Ministers nominated by the prime minister and elected by the National Assembly elections: president and vice president elected on the same ticket by popular vote for a five-year term (eligible for a second term); election last held 22 and 29 October 2006 (next to be held in 2011); chairman of the Council of Ministers (prime minister) elected by the National Assembly; deputy prime ministers nominated by the prime minister and elected by the National Assembly election results: Georgi PARVANOV reelected president; percent of vote - Georgi PARVANOV 77.3%, Volen SIDEROV 22.7%; Boyko BORISSOV elected prime minister, result of legislative vote - 162 to 77 with 1 abstension
|
Legislative branch | | unicameral National Assembly or Narodno Sabranie (240 seats; members elected by popular vote to serve four-year terms) elections: last held 5 July 2009 (next to be held mid-2013) election results: percent of vote by party - GERB 39.7%, BSP 17.7%, MRF 14.4%, ATAKA 9.4%, Blue Coalition 6.8%, RZS 4.1%, other 7.9%; seats by party - GERB 116, BSP 40, MRF 38, ATAKA 21, Blue Coalition 15, RZS 10
|
Judicial branch | | independent judiciary comprised of judges, prosecutors and investigating magistrates who are appointed, promoted, demoted, and dismissed by a 25-member Supreme Judicial Council (consists of the chairmen of the two Supreme Courts, the Chief Prosecutor, and 22 members, half of whom are elected by the National Assembly and the other half by the bodies of the judiciary for a 5-year term in office); three levels of case review; 182 courts of which two Supreme Courts act as the last instance on civil and criminal cases (the Supreme Court of Cassation) and appeals of government decisions (the Supreme Administrative Court)
|
Political pressure groups and leaders | | Confederation of Independent Trade Unions of Bulgaria or CITUB; Podkrepa Labor Confederation other: numerous regional, ethnic, and national interest groups with various agendas
|
International organization participation | | ACCT, Australia Group, BIS, BSEC, CE, CEI, CERN, EAPC, EBRD, EIB, EU, FAO, G- 9, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, NATO, NSG, OAS (observer), OIF, OPCW, OSCE, PCA, SECI, UN, UNCTAD, UNESCO, UNIDO, UNMIL, UNMIS, UNWTO, UPU, WCL, WCO, WEU (associate affiliate), WFTU, WHO, WIPO, WMO, WTO, ZC
|
Flag description | | three equal horizontal bands of white (top), green, and red; the pan-Slavic white-blue-red colors were modified by substituting a green band (representing freedom) for the blue note: the national emblem, formerly on the hoist side of the white stripe, has been removed
|
Economy - overview | | Bulgaria, a former Communist country that entered the EU on 1 January 2007, has experienced strong growth since a major economic downturn in 1996. Successive governments have demonstrated a commitment to economic reforms and responsible fiscal planning, but have failed so far to rein in rising inflation and large current account deficits. Bulgaria has averaged more than 6% growth since 2004, attracting significant amounts of foreign direct investment, but corruption in the public administration, a weak judiciary, and the presence of organized crime remain significant challenges.
|
GDP (purchasing power parity) | | $93.98 billion (2008 est.) $88.66 billion (2007 est.) $83.48 billion (2006 est.) note: data are in 2008 US dollars
|
GDP (official exchange rate) | | $49.9 billion (2008)
|
GDP - real growth rate(%) | | 6% (2008 est.) 6.2% (2007 est.) 6.3% (2006 est.)
|
GDP - per capita (PPP) | | $12,900 (2008 est.) $12,100 (2007 est.) $11,300 (2006 est.) note: data are in 2008 US dollars
|
GDP - composition by sector(%) | | agriculture: 7.3% industry: 30.5% services: 62.2% (2008 est.)
|
Labor force | | 2.67 million (2008 est.)
|
Labor force - by occupation(%) | | agriculture: 7.5% industry: 35.5% services: 57% (2007 est.)
|
Unemployment rate(%) | | 6.3% (2008 est.) 7.7% (2007 est.)
|
Population below poverty line(%) | | 14.1% (2003 est.)
|
Household income or consumption by percentage share(%) | | lowest 10%: 3% highest 10%: 25.5% (2007)
|
Distribution of family income - Gini index | | 30.7 (2007) 26.4 (2001)
|
Investment (gross fixed)(% of GDP) | | 33.4% of GDP (2008 est.)
|
Budget | | revenues: $22.24 billion expenditures: $20.74 billion (2008 est.)
|
Inflation rate (consumer prices)(%) | | 12.3% (2008 est.) 9.8% (2007 est.)
|
Stock of money | | $14.29 billion (31 December 2008) $15.58 billion (31 December 2007)
|
Stock of quasi money | | $19.67 billion (31 December 2008) $17.03 billion (31 December 2007)
|
Stock of domestic credit | | $32.04 billion (31 December 2008) $25.18 billion (31 December 2007)
|
Market value of publicly traded shares | | $8.858 billion (31 December 2008) $21.79 billion (31 December 2007) $10.32 billion (31 December 2006)
|
Economic aid - recipient | | $742 million (2005-06 est.)
|
Public debt(% of GDP) | | 14.1% of GDP (2008 est.) 41.9% of GDP (2004 est.)
|
Agriculture - products | | vegetables, fruits, tobacco, wine, wheat, barley, sunflowers, sugar beets; livestock
|
Industries | | electricity, gas, water; food, beverages, tobacco; machinery and equipment, base metals, chemical products, coke, refined petroleum, nuclear fuel
|
Industrial production growth rate(%) | | 1.5% (2008 est.)
|
Current account balance | | -$12.65 billion (2008 est.) -$8.716 billion (2007 est.)
|
Exports | | $22.71 billion (2008 est.) $18.58 billion (2007 est.)
|
Exports - commodities(%) | | clothing, footwear, iron and steel, machinery and equipment, fuels
|
Exports - partners(%) | | Greece 9.9%, Germany 9.2%, Turkey 8.9%, Italy 8.5%, Romania 7.2%, Belgium 5.9%, France 4.1% (2008)
|
Imports | | $35.64 billion (2008 est.) $28.65 billion (2007 est.)
|
Imports - commodities(%) | | machinery and equipment; metals and ores; chemicals and plastics; fuels, minerals, and raw materials
|
Imports - partners(%) | | Russia 14.6%, Germany 11.8%, Italy 7.9%, Ukraine 7.3%, Romania 5.6%, Turkey 5.5%, Greece 5.4%, Austria 4.1% (2008)
|
Reserves of foreign exchange and gold | | $17.93 billion (31 December 2008 est.) $17.54 billion (31 December 2007 est.)
|
Debt - external | | $51.46 billion (31 December 2008 est.) $42.62 billion (31 December 2007)
|
Stock of direct foreign investment - at home | | $42.91 billion (31 December 2008 est.) $33.91 billion (31 December 2007 est.)
|
Stock of direct foreign investment - abroad | | $1.292 billion (31 December 2008 est.) $559 million (31 December 2007 est.)
|
Exchange rates | | leva (BGN) per US dollar - 1.3171 (2008 est.), 1.4366 (2007), 1.5576 (2006), 1.5741 (2005), 1.5751 (2004)
|
Currency (code) | | lev (BGN)
|
Telephones - main lines in use | | 2.258 million (2008)
|
Telephones - mobile cellular | | 10.633 million (2008)
|
Telephone system | | general assessment: an extensive but antiquated telecommunications network inherited from the Soviet era; quality has improved; the Bulgaria Telecommunications Company's fixed-line monopoly terminated in 2005 when alternative fixed-line operators were given access to its network; a drop in fixed-line connections in recent years has been more than offset by a sharp increase in mobile-cellular telephone use fostered by multiple service providers; the number of cellular telephone subscriptions now greatly exceeds the population domestic: a fairly modern digital cable trunk line now connects switching centers in most of the regions; the others are connected by digital microwave radio relay international: country code - 359; submarine cable provides connectivity to Ukraine and Russia; a combination submarine cable and land fiber-optic system provides connectivity to Italy, Albania, and Macedonia; satellite earth stations - 3 (1 Intersputnik in the Atlantic Ocean region, 2 Intelsat in the Atlantic and Indian Ocean regions) (2008)
|
Internet country code | | .bg
|
Internet users | | 2.647 million (2008)
|
Airports | | 212 (2009)
|
Pipelines(km) | | gas 2,926 km; oil 339 km; refined products 156 km (2008)
|
Roadways(km) | | total: 40,231 km paved: 39,587 km (includes 331 km of expressways) unpaved: 644 km (2005)
|
Ports and terminals | | Burgas, Varna
|
Military branches | | Bulgarian Armed Forces: Ground Forces, Naval Forces, Bulgarian Air Forces (Bulgarski Voennovazdyshni Sily, BVVS) (2009)
|
Military service age and obligation(years of age) | | 18-27 years of age for voluntary military service; as of May 2006, 67% of the Bulgarian Army comprised of professional soldiers; conscription ended January 2008; Air Forces and Naval Forces became fully professional at the end of 2006 (2008)
|
Manpower available for military service | | males age 16-49: 1,701,979 females age 16-49: 1,691,092 (2008 est.)
|
Manpower fit for military service | | males age 16-49: 1,351,312 females age 16-49: 1,381,017 (2009 est.)
|
Manpower reaching militarily significant age annually | | male: 38,263 female: 36,374 (2009 est.)
|
Military expenditures(% of GDP) | | 2.6% of GDP (2005 est.)
|
Disputes - international | | none
|
Electricity - production(kWh) | | 40.25 billion kWh (2007 est.)
|
Electricity - production by source(%) | | fossil fuel: 47.8% hydro: 8.1% nuclear: 44.1% other: 0% (2001)
|
Electricity - consumption(kWh) | | 31.08 billion kWh (2007 est.)
|
Electricity - exports(kWh) | | 8.441 billion kWh (2008 est.)
|
Electricity - imports(kWh) | | 3.097 billion kWh (2008 est.)
|
Oil - production(bbl/day) | | 3,357 bbl/day (2008 est.)
|
Oil - consumption(bbl/day) | | 124,000 bbl/day (2008 est.)
|
Oil - exports(bbl/day) | | 76,570 bbl/day (2007 est.)
|
Oil - imports(bbl/day) | | 189,000 bbl/day (2007 est.)
|
Oil - proved reserves(bbl) | | 15 million bbl (1 January 2009 est.)
|
Natural gas - production(cu m) | | 300 million cu m (2008 est.)
|
Natural gas - consumption(cu m) | | 3.4 billion cu m (2008 est.)
|
Natural gas - exports(cu m) | | 0 cu m (2008)
|
Natural gas - proved reserves(cu m) | | 5.663 billion cu m (1 January 2009 est.)
|
HIV/AIDS - adult prevalence rate(%) | | less than 0.1% (2001 est.)
|
HIV/AIDS - people living with HIV/AIDS | | 346 (2001 est.)
|
HIV/AIDS - deaths | | 100 (2001 est.)
|
Literacy(%) | | definition: age 15 and over can read and write total population: 98.2% male: 98.7% female: 97.7% (2001 census)
|
School life expectancy (primary to tertiary education)(years) | | total: 14 years male: 13 years female: 14 years (2006)
|
Education expenditures(% of GDP) | | 4.5% of GDP (2005)
|