Bulgaria
Bulgaria is still in the process of transition to a market economy after 45 years as a socialist economy. Since the onset of reforms in 1989 Bulgarian society has undergone profound political, economic and social changes. After years of deep economic crisis, relative macro-economic stability was achieved due to the introduction of a Currency Board in 1997. Nevertheless, a number of acute economic and social problems remain unresolved, and this along with the political instability has had a negative impact on labour-market developments. The government keeps applying a firm policy on income and public spending using the Currency Board and pressure from the International Monetary Fund (IMF) and the World Bank as both an excuse and a threat. An additional harmful factor is the existence of a foreign debt (approximately 11.8 billions USD as of August 2003), which is significant for the size of the country, inherited from the socialist period and increased as a result of inefficient government in the transitional years. The standby agreements with the IMF on one hand facilitate management of the foreign debt but on the other hand have also had a strong restrictive influence on the internal budget policy, and in practice has made all governments of the country highly dependent on the IMF and the World Bank. The economic growth reported in recent years (over 4%) has not lead to the creation of new jobs or higher incomes. The real wage level continued to be half what it was in the beginning of the transition period. The trend of having irregular and delayed payment of wages in many enterprises continues, with the result that a substantial army of "working poor" has been created.
- To read a detailed labor market
analysis for Bulgaria, download one of the following:
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- For economic statistics on Bulgaria, download one of the following:
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Submitted by:
ISTUR– Institute for Social and Trade Union Research
1 Macedonia Square
1000 Sofia
Bulgaria
Tel: + 359 2 9170 528
Fax: + 359 2 9170 668
E-mail: istur@mail.com
Data updated April 27, 2004.
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