BULGARIA

Republic of Bulgaria

Republika Bulgariya

CAPITAL: Sofia (Sofiya)

FLAG: The flag is a tricolor of white, green, and red horizontal stripes.

ANTHEM: Bulgariya mila, zemya na geroi (Dear Bulgaria, Land of Heroes).

MONETARY UNIT: The lev (lv) of 100 stotinki has coins of 1, 2, 5, 10, 20, and 50 stotinki and 1 and 2 leva, and notes of 1, 2, 5, 10, 20, 50, and 100 leva. lv1 = $0.64103 (or $1 = lv1.56) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; Labor Days, 1–2 May; Education and Culture Day, 24 May; Christmas, 24–25 December.

TIME: 2 pm=noon GMT.

LOCATION, SIZE, AND EXTENT

Part of the Balkan Peninsula, Bulgaria has an area of 110,910 sq km (42,822 sq mi), and extends 330 km (205 mi) n–s and 520 km (323 mi) e–w. Comparatively, the area occupied by Bulgaria is slightly larger than the state of Tennessee. Bulgaria is bounded on the n by Romania, on the e by the Black Sea, on the se by Turkey, on the s by Greece, and on the w by Macedonia and Serbia, with a total boundary length of 1,808 km (1,123 mi).

Bulgaria's capital city, Sofia, is located in the west central part of the country.

TOPOGRAPHY

Bulgaria consists of a number of roughly parallel east–west zones. They are the Danubian tableland in the north, the Balkan Mountains (Stara Planina) in the center, and the Thracian Plain, drained by the Maritsa River, in the south. The Rhodope, Rila, and Pirin mountains lie in the southwestern part of the country. The average elevation is 480 m (1,575 ft), and the highest point, in the Rila Mountains, is the Musala, at 2,925 m (9,596 ft). The Danube (Dunav), Bulgaria's only navigable river, forms most of the northern boundary with Romania. Located along the Eurasian Tectonic Plate, the country does experience some low-level magnitude earthquakes.

CLIMATE

Bulgaria lies along the southern margins of the continental climate of Central and Eastern Europe. Regional climatic differences occur in the Danubian tableland, exposed to cold winter winds from the north, and the Thracian Plain, which has a modified Mediterranean climate and is protected by the Balkan Mountains against the northern frosts. January temperatures are between 0° and 2°c (32–36°f) in the lowlands but colder in the mountains; July temperatures average about 22° to 24°c (72–75°f). Precipitation is fairly regularly distributed throughout the year and amounts to an average of 64 cm (25 in).

FLORA AND FAUNA

As of 2002, there were at least 81 species of mammals, 248 species of birds, and over 3,500 species of plants in the country. In the northeast lies the typical steppe grassland zone of the Dobrudja, merging into the wooded steppe of the Danubian tableland. Most trees in this area have been cut down to make room for cultivated land. The Balkan Mountains are covered by broadleaf forests at lower altitudes and by needle-leaf conifers at higher elevations. The vegetation of the Thracian Plain is a mixture of the middlelatitude forest of the north and Mediterranean flora. Deforestation has reduced the amount of wildlife, which includes bears, foxes, squirrels, elks, wildcats, and rodents of various types. Fish resources in the Black Sea are not extensive.

ENVIRONMENT

Bulgaria's air pollution problem results from the combined influence of industry and transportation. In the mid-1990s, Bulgaria was among the 50 countries with the highest industrial emissions of carbon dioxide, producing 54.3 million metric tons, or 6.08 metric tons per capita. In 1996, the total was 55.2 million metric tons. Industrial pollutants, especially from metallurgical plants, are responsible for damage to 115 sq mi of land in Bulgaria. Bulgaria's rivers and the Black Sea are seriously affected by industrial and chemical pollutants, raw sewage, heavy metals, and detergents. However, nearly 100% of the population have access to safe drinking water.

Twenty-five percent of Bulgaria's forests have been significantly damaged by airborne pollutants. In 2000, about 33.4% of the total land area was forested. Only 4.5% of the country's total land area is protected, including the Pirin National Park and the Srebarna Nature Reserve, which are both natural UNESCO World Heritage Sites. There are 10 Ramsar wetland sites.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 12 types of mammals, 11 species of birds, 2 types of reptiles, 10 species of fish, and 11 other invertebrates. Endangered species in Bulgaria include the Rosalia longhorn, Atlantic sturgeon, and slender-billed curlew.

POPULATION

The population of Bulgaria in 2005 was estimated by the United Nations (UN) at 7,741,000, which placed it at number 94 in population among the 193 nations of the world. In 2005, approximately 17% of the population was over 65 years of age, with another 14% of the population under 15 years of age. There were 94 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be -0.5%, a rate the government viewed as too low. With one of the lowest fertility rates in the world, Bulgaria has experience population declines since 1990. The projected population for the year 2025 was 6,565,000. The population density was 70 per sq km (181 per sq mi).

The UN estimated that 70% of the population lived in urban areas in 2005, and that urban areas were declining in population at an annual rate of -0.31%. The capital city, Sofia (Sofiya), had a population of 1,076,000 in that year. Other large cities include Plovdiv, 715,904; Varna, 320,668; Burgas, 259,985; Ruse, 266,213; and Stara Zagora, 167,708.

MIGRATION

Emigration between 1948 and 1951 consisted mainly of Jews going to Israel and Turks going to Turkey. A high of 99,477 (of whom 98,341 were Turks) was reached in 1951. Most of the emigrants since the 1950s have been Turks bound for Turkey or other Balkan countries. A total of 313,894 emigrated to Turkey in 1989 because of government persecution. More than 100,000 had returned to Bulgaria by February 1990. Meanwhile, about 150,000 ethnic Bulgarians also emigrated. In 1991 about three million Bulgarians were living abroad. Of those emigrating 85% were under age 30.

According to Migration News, due to low fertility and emigration, Bulgaria's population is shrinking faster than any other nation in Europe. The majority of those leaving Bulgaria are moving to Germany, Spain, the Netherlands, and North America. The net migration rate, estimated for 2005, was -4.3 migrants per 1,000 population. Once the European Union (EU) lifted visa requirements for Bulgarians in 2001, Bulgarians illegally migrated to Western countries. Between April 2001 and October 2002, about 6,561 Bulgarians were arrested and expelled from EU counties, the United States, and Canada. The number of illegal foreigners in Bulgaria is low. Due to the high unemployment rate (12% in 2004), there are serious restrictions on foreign workers.

As of 2004, there were 4,684 refugees and about 920 registered asylum seekers in Bulgaria. Most of the refugees and asylum seekers were from Afghanistan, Iraq, Serbia, Montenegro, and Armenia.

ETHNIC GROUPS

In 2001, Bulgarians accounted for an estimated 83.9% of the total population. The Turks, who constituted about 9.4% of the total, are settled mainly in the southern Dobrudja and in the eastern Rhodope Mountains. Romas account for about 4.7% of the population. Other groups, including Macedonians, Armenians, Tatars, and Circassians, make up the remaining 2% of the populace.

Macedonians live mainly in the Pirin region of southwestern Bulgaria. Romanian-speaking Vlachs live in the towns and countryside of northwestern Bulgaria. Greek-speaking Karakatchans are nomadic mountain shepherds of Romanian origin. The Gagauzi of northeastern Bulgaria are a Turkish-speaking group of Christian Orthodox religion. Bulgaria's cities have small minorities of Russians, Jews, Armenians, Tatars, and Greeks.

LANGUAGES

Bulgarian is classified as a Slavic language of the southern group, which also includes Macedonian, Serbo-Croatian, and Slovenian. Old Bulgarian, also known as Old Church Slavonic, was the first Slavic language fixed in writing (9th century). For this purpose, two Bulgarian monks, Cyril and Methodius, created a new alphabet, based partly on the Greek, that became known as the Cyrillic alphabet. Both the grammar and the vocabulary of modern Bulgarian show Turkish, Greek, Romanian, and Albanian influences.

According to a 2001 census, 84.5% of the population speak Bulgarian, 9.6% speak Turkish, 4.1% speak Roma, and 1.8% speak other languages or did not specify a primary language.

RELIGIONS

According to a 2004 report, about 82.6% of the population belonged at least nominally to the Bulgarian (Eastern) Orthodox Church. There were also an estimated 12.2% who were Muslims. Other religious groups include Roman Catholics, Jews, Uniate Catholics, Protestants, and Gregorian-Armenians.

After seizing power in 1946, the Communist regime, whose aim was eventually to establish an atheistic society, sought during the ensuing period to replace all religious rites and rituals with civil ceremonies. The new constitution of 1991 guaranteed freedom of religion to all, but named the Bulgarian Orthodox Church as a "traditional" religion of state. Under a 2002 Confessions Act, all religious groups except for the Bulgarian Orthodox Church must register with the Sofia Municipal Court in order to offer public worship. The registration process tends to be long and selective.

TRANSPORTATION

The Bulgarian Railway Company (BDZ) oversees Bulgaria's railway system. Railroads are still the basic means of freight transportation in Bulgaria. Of the 4,294 km (2,671 mi) of railroad lines in use in 2004, about 94% were standard gauge. A total of 245 km (152 mi) of narrow gauge right of way accounted for the remainder.

In 2003, roadways extended for 102,016 km (63,453 mi), of which 93,855 km (58,378 mi) were paved, including 328 km (204 mi) of expressways. Road transportation has grown steadily in recent years. Bulgaria has many highway projects underway, including portions of the Trans-European Motorway (TEM), a route connecting Budapest with Athens via Vidin and Sofia and with Istanbul via eastern Bulgaria. As of 2003, there were 2,309,300 passenger cars and 337,200 commercial vehicles registered for use.

Water transportation is also significant. As of 2005, Bulgaria's maritime fleet was comprised of 64 ships with a total capacity of 757,972 GRT, as compared with 97,800 GRT in 1961. The major seaports are Burgas and Varna. Principal river ports are Ruse, Lom, and Vidin. In addition, the country as of 2004 had 470 km of navigable internal waterways.

In 2004 there were an estimated 213 airports. As of 2005 a total of 128 had paved runways, and there was also a single heliport. Sofia's Vrazhdebna Airport is the major air center, but there are also international airports at Varna and Burgas, as well as seven domestic airports. Initially a joint Soviet-Bulgarian concern, Bulgarian Airlines (BALKAN) passed into Bulgarian hands in 1954. Civilian airlines in Bulgaria carried about 75,000 passengers on scheduled domestic and international airline flights in 2003.

HISTORY

Ancient Thrace and Moesia, the areas that modern Bulgaria occupies, were settled in the 6th century ad by Southern Slavs migrating from the area north of the Carpathian Mountains (modern-day Ukraine and Romania). The Thracian tribes, which had populated that territory since the middle of the 2nd century bc, were displaced or conquered. In the 7th century ad, the Bulgars, a Central Asian Turkic tribe, crossed the Danube River to settle permanently in the Balkans. In alliance with the overpowered Slavs, the Bulgars formed the Bulgarian state, which was recognized by the Byzantine Empire in 681 ad. The name and initial political framework of the new state were taken from the Bulgars, but the language and the culture remained predominantly Slavic.

In the late 9th century, Bulgaria became an arena for political and cultural rivalry between the Byzantine Empire centered in Constantinople and the Roman Empire. The Bulgarians adopted Christianity from the Byzantine Empire and embraced the Cyrillic alphabet, named for St. Cyril. As a result, the integration of the disparate tribes into a Bulgarian people was more or less complete by the end of the 9th century.

The early Bulgarian state reached its territorial and cultural height under Simeon I (r.893–927). In 1018, Bulgaria, which had struggled to assert itself against Constantinople since its foundation, fell under Byzantine dominance. The country rose again as a major Balkan power in the 12th and 13th centuries, especially under Ivan Asen II (r.1218–41) whose rule extended over nearly the whole Balkan Peninsula except the Greek islands. However, by the end of the 14th century, Bulgaria was overrun by the Ottoman Turks, who ruled the country for nearly five centuries.

The Ottoman rule was often oppressive and sought to assimilate Bulgarian Christianity, culture, and language. Rebellions were frequent but sporadic and unorganized. However, in the early 19th century, under the influence of Western ideas such as liberalism and nationalism, a well-organized national liberation movement emerged. Its efforts culminated in the April uprising of 1876, which was brutally crushed. Russia, a rival of the Ottoman Empire at the time, insisted on a peaceful solution to the Bulgarian question. When diplomacy failed, Russia declared war on Turkey. The Bulgarian state was restored in the aftermath of the Russian-Turkish War of 1877–1878.

Apprehensive of the existence of a big Bulgarian state under Russian influence, the Congress of Berlin (June–July 1878) divided the Bulgarian territories into three parts. Northern Bulgaria was given the status of an independent principality under Turkish suzerainty, with its capital at Sofia. Southern Bulgaria (then known as Eastern Rumelia) remained under Turkish rule as an autonomous province. Lastly, ethnic Bulgarians in the regions of Macedonia and Thrace were unconditionally returned to the Ottoman Empire. The decisions of the Congress triggered first the Kresna–Razlog uprising (1878–1879), which sought to unify the Principality of Bulgaria and Eastern Rumelia; and the Ilinden–Preobrazhenie Uprising (1903), which demanded the liberation of Macedonia. Neither rebellion was immediately successful.

In 1879 the First Grand National Assembly adopted the first Constitution of Bulgaria and elected the German prince Alexander Battenberg as the prince of Bulgaria. In 1885, the continuing unrest in Eastern Rumelia culminated in a military coup, which annexed the province to Bulgaria. Stefan Stambolov, premier from 1887 to 1894, consolidated the country's administration and economy. In 1908 Bulgaria declared itself a kingdom completely independent of Turkey.

Striving to unite "all Bulgarians," the country took part in the First Balkan War (October 1912–May 1913) and fought with the anti-Turkish coalition (Greece, Serbia, and Montenegro) against the Ottomans. Bulgaria gained most of Thrace including a long-desired outlet to the Aegean Sea. But as a result of a dispute over Macedonia, Bulgaria became pitted against Greece and Serbia. Turkey joined the Greece-Serbia coalition in the hope of winning back some of its territories. Romania also sided against Bulgaria in the Second Balkan War (June–July 1913), and Bulgaria was defeated. As a result, Bulgaria lost southern Dobrudja to Romania, a large part of Macedonia to Serbia, western Thrace to Greece and southeastern Thrace to Turkey. Having sided with the Central Powers in World War I in an attempt to recoup its losses, Bulgaria also lost its outlet to the Aegean Sea and additional parts of Macedonia and Dobrudja through the Treaty of Neuilly (27 November 1919).

At the end of World War I, Bulgarian ruler Tsar Ferdinand of Saxe-Coburg-Gotha abdicated in favor of his son, Boris III, who ruled Bulgaria until his death in 1943. After an early period of stability and initial progressive reform under the leadership of Premier Alexander Stamboliski (assassinated in 1923 after agreeing to recognize Yugoslav sovereignty in Macedonia), growing political rivalries allowed Tsar Boris to establish a military government in 1934 and then to personally assume dictatorial powers in 1935.

When World War II broke out, Bulgaria moved toward an alliance with Germany in the hope of recovering lost territories. In 1940, Romania was forced to return southern Dobrudja, and during the war, Bulgaria occupied Macedonia and western Thrace. By 1943, some 20,000 Jews were deported but protests from political and clerical leaders stopped further cooperation, thus saving all of the remaining 50,000 Jews in the country. Bulgaria did, however, actively deport Jews in all areas it conquered.

After Tsar Boris's sudden death in 1943, a cabinet, which was in most respects a German puppet, assumed power. Coordinated mainly by Communists, resistance to the Germans and the authoritarian Bulgarian regime was widespread by 1943. In September 1944, Soviet troops entered the country. At that time, the Bulgarian government withdrew from the occupied territories, severed relations with Germany, and intended to sign an armistice with the Western Allies. But Moscow declared war on Bulgaria and proceeded with the occupation of the country. A coalition government—the Fatherland Front (Otechestven Front)—was established, which, with the assistance of the Soviet army, came under the domination of the Communist Party. Subsequently, anti-Communist political activists were purged.

A plebiscite in September 1946 replaced the monarchy with the People's Republic of Bulgaria and the Communists openly took power. The 1947 peace treaty formally ending Bulgaria's role in World War II allowed the nation to keep southern Dobrudja but limited the size of its armed forces.

Shortly after coming to power, the Bulgarian Communist Party fell under increasing pressure from Moscow to demonstrate its loyalty by stepping up the "socialist transformation" in the country. The Bulgarian leadership moved to ascertain its effective monopoly on political power by eliminating political opposition in the country and "nationalist" elements within the party and to emulate the Soviet economic experience through the introduction of a planned economy. A new constitution in 1947 instituted the nationalization of industry, banking, and public utilities and the collectivization of agriculture. Centralized planning was introduced for the development of the national economy through a series of five-year plans, which stressed the expansion of heavy industry at the expense of agriculture and light industry. Subsequently, Bulgaria joined the Warsaw Pact and CMEA, thus placing itself firmly within the Soviet bloc.

Under Todor Zhivkov, first secretary of the Communist Party since 1954 and president since 1971, the Bulgarian government remained unquestionably loyal to the Soviet Union. This continued even after Soviet leader Joseph Stalin's death in 1953. While some freedom of expression was gradually restored, labor camps closed, and persecution of the Christian church ended, upheavals like those in Poland and Hungary in 1956 or in Czechoslovakiain 1968 were not allowed in Bulgaria. Still, a cultural "thaw" took place in the late 1970s under the leadership of Zhivkov's daughter, Lyudmila Zhivkova. To further strengthen support for the regime, the party leadership devoted enormous resources to the celebration of the national past and culture. However, the period of the so-called "revival process" (with two peaks in 1972–1974 and 1984–1985) was marked by a campaign to assimilate members of Bulgaria's Turkish minority by forcing them to take Slavic names, prohibiting them from speaking Turkish in public, and subjecting them to other forms of harassment; more than 300,000 Bulgarian Turks crossed the border into Turkey to escape persecution.

The Communist regime drew its legitimacy by preserving the strong egalitarian and statist political traditions in the country. Additionally, the relatively good economic performance and impressive set of social policy achievements generated a considerable level of popular support. The developmental rise in mechanization, technical sophistication, and productivity was remarkable especially given the lack of natural resources and energy endowment and the very low initial material and cultural levels. However, despite these accomplishments, Bulgaria remained one of the countries with the lowest living standards in both Western and Eastern Europe. Moreover, the many and generous social policies were secured at the expense of economic efficiency.

Thus the radical changes introduced in the Soviet Union by Mikhail Gorbachev were welcomed and readily replicated in Bulgaria. A program of far-reaching political and economic changes was announced in July 1987, including an administrative overhaul meant to reduce the number of Communist Party functionaries by as much as two-thirds, the introduction of self-management for individual enterprises, and liberalization of rules for joint ventures with foreign investors. Economic and political restructuring throughout the Soviet Bloc empowered reformist elements within the Bulgarian Communist Party, which were growing increasingly restive under Zhivkov.

Although Zhivkov was never a despot in the Stalinist mold, by the early 1980s his regime was growing increasingly corrupt, autocratic, and erratic. The long-time ruler resisted attempts to change and moved into a pattern of direct confrontation with reformists, led by his foreign minister, Petar Mladenov. Mladenov, who had close ties to Gorbachev, wanted to change Bulgaria's image, which had been tarnished by Zhivkov's intensifying efforts to "assimilate" the country's ethnic Turks. Finally, in November 1989, Mladenov, backed by other reformists within the party, was able to take advantage of an international environmental conference convened in Sofia to press for Zhivkov's resignation. Mladenov was also successful in winning support from Defense Minister Dobri Dzhurov, thus leaving Zhivkov without resort to the military. Zhivkov had no choice but to resign.

Mladenov had intended to reform the Communist Party, not remove it from power. However, demonstrations on ecological issues in the streets of Sofia in November 1989 soon broadened into a general campaign for political reform. However, as the newly emergent opposition groups signaled their entry into the political arena by organizing the Union of Democratic Forces (UDF), the Communist leaders invited opposition leaders to roundtable negotiations meant to provide the elite with a safe channel against the anticipated popular backlash against communism. A new democratic constitution was negotiated and multiparty elections held in June 1990.

In something of a surprise, the Socialists led by Mladenov received nearly 53% of the 1990 vote, while the UDF got only about a third; the rest of the votes went to the Movement for Rights and Freedoms (MRF), which had emerged to represent the interests of the country's one million ethnic Turks. Popular hostility to Mladenov forced him to resign about a month after the election. Since the Socialists remained generally in charge of the government, there was little tangible progress with economic reform, and Bulgaria's economy, left in poor condition by Zhivkov, continued to decline. In addition, a great deal of effort was devoted to the attempt to prosecute Zhivkov and his prominent cronies for malfeasance, incompetence, and other failings. Zhivkov fought back vigorously, exposing the sins of former colleagues who had remained in power.

Although convictions were eventually obtained (in 1992, with additional charges brought in 1993), the exercise served to undermine public sympathy for the Socialists. That opened the way for the National Assembly to appoint the leader of the UDF and famous dissident, Zhelyu Zhelev, as a president. Moreover, the first Socialist government, led by Prime Minister Andrei Lukanov, a Mladenov ally, collapsed after a few months of its coming to power; in December 1990, the replacement government of Dimitar Popov, an unaffiliated technocrat, outlined an ambitious program of economic reform.

The National Assembly passed a new constitution in July 1991, making Bulgaria the first of the Eastern Bloc countries to adopt a new basic law. Among other things, this document called for new parliamentary elections to be held in October 1991. The UDF received 34%, the Socialists, 33%, and the MRF, 8%. The UDF adamantly refused to cooperate with the former Communists, instead taking the MRF as their coalition partner. Filip Dimitrov of the UDF led Bulgaria's first non-Communist government since World War II; however, most of his ministers were chosen for technical expertise rather than party affiliation and 60% of them were drawn from outside the National Assembly. In January 1992, there were direct presidential elections. Zhelev received 45% of the votes while his Socialist opponent, Velko Vulkanov, received 30%.

Dimitrov undertook an ambitious program of economic and political transformation: he invested his administration in returning property confiscated by the Communists and in the privatization of industry by issuing shares in government enterprises to all citizens. However, Bulgaria's economy continued to deteriorate and unemployment continued to grow as uncompetitive industries failed, exposing strains within the ruling coalition. In late 1992 the Dimitrov government was replaced by a minority coalition of the Socialists, the MRF, and some defecting UDF deputies. Widely seen only as a caretaker prime minister, Lyuben Berov defied predictions, remaining in power for more than 15 months.

The UDF was unrelenting in its hostility to Berov, accusing Berov of trying to "re–communize" Bulgaria; they submitted as many as six votes of no-confidence in a single year. This increasing political deadlock and the continued deterioration of Bulgaria's economy led to new parliamentary elections in 1994.

Pledging to defend ordinary citizens against the excesses of the free market, the Bulgarian Socialist Party and its two nominal coalition partners won an absolute majority in the 1994 elections. The BSP government, headed by Zhan Videnov, failed to move forward with economic reforms and by the end of 1996, Bulgaria had become the poorest country in Europe with average wages at only $30 a month. In the November 1996 presidential elections, Petar Stoyanov of the UDF was elected president by a wide margin over Socialist party candidate Ivan Marazov.

Fueled by a slow pace of structural reforms, rampant corruption, and a failure to establish market discipline, Bulgaria's problems culminated in a severe economic crisis in 1996–1997. Without a stable government and with their economy in free fall, Bulgarians demonstrated in the capital for new parliamentary elections. After a few months of chaos and hyperinflation, a major foreign exchange crisis, and the collapse of the banking sector, Bulgaria adopted a Currency Board Arrangement with the International Monetary Fund in July 1997. A conservative fiscal policy and a significant acceleration of structural reforms have underpinned the Currency Board Arrangement.

The elections held in April 1997 were won by a four-party alliance, United Democratic Forces (UtDF), anchored by the UDF. The new prime minister Ivan Kostov quickly instituted economic reforms, passed a tough budget, and clamped down on crime and corruption. The economy began to stabilize and popular discontent began to subside. New IMF loans were approved, and the government embarked on a campaign to attract foreign investment and speed up privatization. The battle against entrenched political corruption continued through 1999 and 2000 and included the dismissal of top government officials. The government increasingly embraced the West, declaring its interest in NATO membership and allowing access to its airspace during the NATO bombing of Serbia in the spring of 1999.

In 1999 Bulgaria also started the accession negotiations to become a member of the European Union (EU). Despite much economic and political progress achieved by the Kostov cabinet, the citizenry was nevertheless disillusion with the party's corruption and its inability to address the high unemployment in the country.

In April 2001, Simeon Saxe-Coburg-Gotha, the exiled son of Tsar Boris, established a political party, the National Movement for Simeon II (NMS2), pledging to fight corruption, to improve Bulgaria's chances for EU membership, and to better the economy (through deregulation, privatization, and investment). Saxe-Coburg-Gotha was accused (both by the left and the right) of being an opportunist and a populist without competence and political experience, but he claimed his party's intent was not to restore the monarchy but to move ahead with reforms. And as the elections came closer, Saxe-Coburg-Gotha's popularity kept growing. His NMS2 party won 120 of 240 parliament seats in the 2001 elections. Having failed to win an absolute majority, the NMS2 signed a coalition agreement with the Movement for Rights and Freedoms. Saxe-Coburg-Gotha's cabinet included two MRF and two BSP ministers.

However, only 100 days after Saxe-Coburg-Gotha came to power, workers (including miners, power engineers, health professionals, transport, construction, railway and metal workers, and teachers) took to the streets of Sofia to protest the lack of progress in improving the economy and their living standards.

Saxe-Coburg-Gotha pursued a strongly pro-Western course. Bulgaria sent a nearly 500-strong stabilization force patrol to Iraq. In November 2002, NATO officially invited Bulgaria to join the organization in 2004. Also in 2002, the EU announced that Bulgaria was not ready to become a member in 2004, but was expected to join the EU in 2007. In Luxembourg on 25 April 2005, the Treaty of Accession of Republic of Bulgaria to the European Union was signed. At the time, support for Bulgaria's integration in the EU was about 65%.

Four years after Saxe-Coburg-Gotha came to power, the government reported significant economic growth (5.3 %) but corruption and organized crime continued to plague the country, and high unemployment, low standard of living, and increasing inequality continue to face Bulgarians. Moreover, for the first time in Bulgaria's post-Communist history, ethnic tensions escalated into riots between the Bulgarian and Roma communities in several Bulgarian cities, including Sofia. Hopes for better social protection, disillusionment with Saxe-Coburg-Gotha's policies, and heightened ethnic tensions were all reflected in the results of the 25 June 2005 parliamentary elections. The Coalition for Bulgaria (CfB) won the elections but failed to muster majority. The NMS2 came second but received only half of the votes it got in the 2001 elections. The right was in disarray, as the conservative votes were divided among three parties. Lastly, the rising support for the MRF, the third-largest parliamentary group, was paralleled by the emergence of an ultranationalist coalition, Attack Coalition (ATAKA). After the elections, ATAKA was largely marginalized by other parties and soon began to crumble as its representatives began to defect.

In the political maneuvering that followed the elections, the Socialist bid for forming a government was immediately supported by the MRF but was blocked by the NMS2. The stumbling blocks in the negotiations process seem to be the distribution of key posts and the head of the future cabinet. As negotiations dragged on, the EU urged a rapid resolution of the situation so the country could continue implementing the reforms required for accession in 2007. Ending weeks of postelection deadlock, the new Bulgarian government formally took office on 17 August, after parliament approved the nominations of Prime Minister Sergey Stanishev of the Bulgarian Socialist Party and his 17 cabinet members. The new cabinet was finally elected following a coalition deal among the three leading parties—the BSP, the NMS2, and the MRF—that jointly control 169 out of 240 seats in the legislature.

Prime Minister Stanishev maintained that EU membership was his government's top priority and pledged to make up for lost time. He also promised to intensify the campaign against corruption and organized crime and confirmed that the 400 remaining Bulgarian troops deployed in Iraq will be withdrawn before the end of 2006.

GOVERNMENT

The Bulgarian constitution of July 1991 provides for a multiparty presidential–parliamentary form of republican government, in which all the citizens of the Republic of Bulgaria take part with the right to vote. The document provides clear distinctions among the legislative, executive, and judicial branches of government.

The Council of Ministers is the main executive body, headed by the prime minister. The Council of Ministers conducts the internal and foreign policy of the state, secures public order and national security, and exercises control over the public administration and the military forces. The president, who is chief of state, is popularly elected to a five-year term, and may serve a maximum of two terms. The president serves as commander-in-chief of the armed forces and appoints and dismisses their senior command. Among the president's duties is also setting the date for national referenda, scheduling parliamentary elections and naming of the prime minister, who must be confirmed by the National Assembly. Together with the prime minister or the respective minister, the president countersigns decrees to promulgate newly adopted laws. The emerging tradition is that the president sets the overall direction of policy, while the prime minister and his cabinet, presently 14 people, are responsible for day-to-day implementation.

The legislative branch of government is the National Assembly, with 240 members elected to four-year terms. Deputies are elected on a proportional voting basis in a mixed proportional/majoritarian system of elections, in which parties must receive at least 4% of the total national vote in order to receive seats. The largest parliamentary group constructs the cabinet. A simple majority is required to approve the Council of Ministers and to adopt regular legal acts. Amendments to the constitution, however, require approval by a three-quarters majority. Members of parliament represent not only their electoral regions but also the whole nation. The National Assembly elects temporary and permanent commissions, where parliamentarians participate. Members of the National Assembly, as well as member of the Council of Ministers, have the right to introduce draft laws, but only the Council of Ministers develop draft laws on the state budget.

POLITICAL PARTIES

Bulgaria did not develop the welter (confusing array) of political parties that most of the other post-Communist societies enjoyed—or suffered.

The Bulgarian Socialist Party (BSP) is the successor of the former Bulgarian Communist Party and combines various leftist factions. Some are of social democratic orientation while others remain attached to communism. The 1989 internal coup left the party with strong public support—53% of the vote in the 1991 elections. In 1994 the socialists won a majority in the parliamentary elections for the second time after the fall of state socialism but fell out of favor after two years of particularly disastrous economic policies, which had reduced their popular support to 10% by the end of 1996. The reputation of the BSP is still tied to its inability to deal with the problems of 1996 in the minds of the populace. The BSP remained in opposition after the 1997, 2001, and 2005 elections. In 2000, the socialists remaining in the BSP also made a significant break with the past by changing their former negative attitude towards NATO membership (without however cooling down support for good relations with Russia). In December 2001, Sergey Stanishev was elected as the new party leader with a mission to not only redefine and reform the BSP but also to rejuvenate it by trying to attract younger supporters. In addition, BSP became a full member of the Socialist International. In its campaign for the 2005 parliamentary elections, the party chose to focus on the neglected social rights of the Bulgarian citizens.

The Union of Democratic Forces (UDF) was created in the final days of the Communist regime (1989) as a platform movement uniting 15 different formerly dissident political groups. When the UDF came to power in 1992, the divisions between these factions weakened the government, which lost a vote of confidence in parliament in 1994. Under the leadership of Ivan Kostov in early 1997, the UDF was transformed into a single party with liberal ideology. During the 1996–1997 political and parliamentary crisis, the UDF dominated the a conservative coalition, United Democratic Forces (UtDF), which became the main opposition force to the Bulgarian Socialist Party and won a majority in the 1997 parliamentary elections. Kostov stepped down after the party lost in the 2001 parliamentary elections and was succeeded by his former foreign minister Nadezhda Mikhailova in June 2002. However, despite the party losing the 2003 local elections, Mihailova was reelected as UDF chairwoman.

In February 2004, Ivan Kostov, together with about 2,000 party members (among them 29 members of parliament), left the party. In May 2004, the group around Kostov established a new rightwing party named Democrats for Strong Bulgaria (DSB), which vows to work for a country with strong democracy, capable state institutions, and wealthy society. The party won about 6% of the vote in the 2005 elections.

The Union of Free Democrats (UFD) is one of the smaller rightist parties in Bulgaria. It was founded by Stefan Sofiyanski in December 2001 as a split-off of the Union of Democratic Forces. The party's main goals are economic prosperity, political stability, and integration in the EU and NATO.

The Movement for Rights and Freedoms (MRF) primarily represents the interests of Bulgaria's large Turkish minority (about 10% of the population), which was harshly repressed during the Zhivkov years. In economic issues the MRF advocates neoliberal policies. Even though the party did not participate in Dimitrov's cabinet, the MRF initially supported the UDF and later was the pivot on which the Berov cabinet hinged; then, however, the party switched to being an informal coalition partner of the Socialists. Nevertheless, it supported the UtDF government during its tenure in office. For the 2001 parliamentary elections the MRF formed a coalition with two small parties and got in power together with the NMS2. Yet, nationalist antipathy among many Bulgarians towards the country's large Turkish minority makes the MRF an unpopular coalition partner for most political parties. In fact in 1991 the MRF was accused of "being an ethnic party" and has proven a costly partner in the majority of post-1989 governments.

While ethnic Turks have been represented in parliament since 1990, parties have included very few members of the Roma national minority. Still, compared with Roma in Slovakia and Romania for example, Bulgarian Roma are relatively successful in exercising influence on the government through the formation of an umbrella coalition. Nonetheless, Roma efforts are hampered by corruption and the lack of focused agendas among Roma organizations. Discrimination, unwillingness of mainstream political parties to encourage Roma participation, and the lack of political engagement within the Roma community itself are all obstacles to the political inclusion of the Roma.

The National Movement Simeon II (NMS2) is a coalition of the unregistered movement Simeon II and two registered parties—Bulgarian Party of Women (led by Vessela Draganova-Dencheva) and the Movement for National Revival (headed by Tosho Peikov). Registered as a party in April 2002, it was founded by Simeon Saxe-Coburg-Gotha, the exiled son of Tsar Boris. Simeon SaxeCoburg-Gotha's advisors and top ministers were young Bulgarian emigrants who, having built careers abroad mostly in Western finance, returned to their homeland to affect economic change. The NMS2 proposed to bring about change to Bulgaria's economic and political outlook "within 800 days." Thousands of Bulgarians hastened to join the NMS2 in what many saw as a protest against those who ruled Bulgaria since the collapse of communism. In the 2001 elections, the NMS2 took the lead in forming a new government but the popularity of the party quickly declined. The movement places NATO and EU integration high on the political agenda. After the 2005 elections, the party received only half of the seats it had in the previous assembly.

In the 25 June 2005 parliamentary elections, the Coalition for Bulgaria (dominated by the Bulgarian Socialist Party) was backed by 31.1% of votes and received a total of 83 seats in the 240-seat Assembly. The National Movement Simeon II (NMS2) garnered 19.9%, and 53 seats. The Movement for Rights and Freedoms (MRF) ranked third with 12.7% and 33 seats. The surprise in the 2005 elections, the nationalist coalition ATAKA received 8.2% and 17 seats. The United Democratic Forces (UDF), which was supported by 7.7% of the voters, received 20 seats, whereas the other rightist party Democrats for Strong Bulgaria (DSB) won 6.5% and 17 seats. Lastly, the Bulgarian People's Union (BPU), a coalition of the Union of Free Democrats (SSD) and the Agrarian Party of Anastasia Mozer (BZNS), won 5.2% and 13 seats.

LOCAL GOVERNMENT

Bulgaria is divided into 262 municipalities (obshtini). The municipality is the main administrative territorial unit for local government and is governed by a mayor and an elected municipal council. Municipal councils determine the policy of every municipality, including economic development, environmental, and educational policies, as well as cultural activities. Mayors are in charge of the whole executive activity of their municipality, of keeping the public order, and of organizing distribution of the municipal budget.

Bulgaria is also divided into 28 provinces (oblasti), which are larger administrative territorial units through which the government decentralizes its policies. The Council of Ministers appoints the regional governor for each province.

In preparation for EU accession, six planning regions were created in 1999 to fulfill the requirements for receiving cohesion funds. However, as of mid-2006, those regions existed on paper only.

JUDICIAL SYSTEM

Bulgaria has an independent judicial system. The 1991 constitution provides for regional courts, district courts, a Supreme Court of Cassation, which rules on decisions by the lower courts, and a Supreme Administrative Court, which rules on the legality of actions by institutions of government. A Constitutional Court is responsible for judicial review of legislation and for resolving issues of competency of the other branches of government as well as impeachments and election law. Judges are appointed by the Supreme Judicial Council, which organizes and administers the judiciary. The Constitutional Court has 12 judges appointed to a nine-year term by the National Assembly, the president, and judicial authorities.

Military courts handle cases involving military personnel and national security issues. Under the 1991 constitution, the judiciary is independent of the legislative and executive branches. The trials are public. Criminal defendants have the right to confront witnesses, the right to counsel, and the right to know the charges against them to prepare their defense. The constitution prohibits arbitrary interference with privacy, home, or correspondence.

Bulgaria accepts compulsory jurisdiction of the International Court of Justice.

ARMED FORCES

As of 2005, the armed forces of Bulgaria consisted of 51,000 active personnel with reserves numbering 303,000. For that year, the army numbered 25,000 active members, while the navy had 4,370 active personnel and the air force 13,100 active members. The army that year had 1,474 main battle tanks, 18 reconnaissance vehicles, 214 armored infantry fighting vehicles, 1,643 armored personnel carriers, and 1,774 artillery pieces. The navy's major units consisted of one tactical submarine, one frigate, seven corvettes, 16 patrol/coastal vessels, and 20 mine warfare ships. The air force had 137 combat capable aircraft, including 35 fighters and 94 fighter ground attack aircraft. There were also a 34,000-member paramilitary force that included 12,000 border guards, 4,000 security police, and 18,000 railway and construction troops. Bulgaria participated in six missions abroad, including Afghanistan and Iraq. The defense budget for 2005 totaled $630 million.

INTERNATIONAL COOPERATION

Bulgaria joined the United Nations on 14 December 1955 and participates in the ECE and all the nonregional specialized agencies. It belongs to the WTO (1996) and is a candidate for membership in the European Union. The nation also belongs to NATO (2004), the Council of Europe, the Central European Initiative, G-9, the Central European Free Trade Agreement (CEFTA), and the OSCE, and has observer status in the OAS. Bulgaria is part of the Australia Group, the Zangger Committee, the European Organization for Nuclear Research (CERN), and the Nuclear Suppliers Group (London Group). It is a guest in the Nonaligned Movement. In environmental cooperation, Bulgaria is part of the Antarctic Treaty, the Basel Convention, Conventions on Biological Diversity and Air Pollution, Ramsar, CITES, the Kyoto Protocol, the Montréal Protocol, MARPOL, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Before World War II, Bulgaria was an agricultural country, consisting mainly of small peasant farms; farming provided a livelihood for about 80% of the population. After the war, the Communist regime initiated an industrialization program. By 1947, a sizable portion of the economy was nationalized, and collectivization of agriculture followed during the 1950s. Until 1990, the country had a centrally planned economy, along Soviet lines, and its sequence of five-year economic plans, beginning in 1949, emphasized industrial production. In 1956, according to official Bulgarian statistics, industry contributed 36.5% of national income, and agriculture and forestry, 32.9%; in 1992, the respective contributions were 42.5% and 12%.

Although Bulgaria has brown coal and lignite, iron ore, copper lead, zinc, and manganese, it lacks other important natural resources and must export in order to pay for needed commodities. Because it relied on the USSR and other CMEA countries for essential imports and as the major market for its exports, and lacks foreign exchange, the Bulgarian economy was greatly influenced by the breakup of the Soviet bloc and the switch to hard-currency foreign trade. In the 1970s, the economic growth rate was quite high (6.8% annually), but the pace of growth slowed in the 1980s, mainly because of energy shortages. The average annual growth rate was only 2% in that decade.

With the disintegration of Soviet-bloc trade and payments arrangements, GDP declined by about 10% in 1990, 13% in 1991, 8% in 1992, and an estimated 4% in 1993. Meanwhile, Bulgaria began an economic reform program supported by the World Bank and IMF. But the economy remained largely state controlled, although there was progress in privatizing many smaller enterprises. The private sector accounted for only about 20% of GDP in 1993 and 45% in 1996. Efforts at economic reform stalled in 1994 as the Socialist government again failed to privatize state-owned industries and institute structural reforms aimed at creating a market economy. The economy was further plagued by wide-scale corruption among businessmen from the former Communist Party who stripped state enterprises of their assets and transferred the funds out of the country. By 1997, the Bulgarian economy was at the brink of collapse with inflation at 300%, the banking system in chaos, and the government on the verge of bankruptcy. Bulgaria became the poorest country in Europe with average monthly wages of $30 a month.

Angry with the governing Socialists, tens of thousands of Bulgarians demonstrated in the capital calling for early elections. In April of 1997 a new government took power and instituted structural reforms designed to bring order to the economy. The government of Prime Minister Ivan Kostov quickly moved to implement market reforms. While operating under the direction of an IMF currency board, Bulgaria pegged the lev to the deutschmark (and now also to the euro), and reduced inflation to 1%. In 1997, the private sector accounted for 65% of GDP. This milestone marked the first time in the post-Communist era that the private sector outperformed the public sector in production. In addition to structural reforms, the Kostov government also moved to combat corruption by becoming the first non-OECD country to ratify the anti-bribery convention.

As of 2003, industry increasingly was being privatized, and agriculture was almost completely privatized. Bulgaria started accession talks with the EU in 2000, but was not one of 10 new countries formally invited to join the body in December 2002. If Bulgaria completes its accession requirements, it is expected to join the EU in 2007, along with Romania. Bulgaria's laws are being harmonized with EU laws, and customs barriers between them are breaking down. By the end of 1999, more than 50% of Bulgaria's exports went to EU nations.

Following the 2001 elections that brought Simeon Saxe-Coburg-Gotha to office as prime minister, the stock market soared 100%, but the government in 2002 was unable to live up to its pledge to improve living standards. Foreign direct investment rose modestly in 2002, and although economic growth slowed that year from its 5.8% high in 2000, it was higher than that of many other European countries. Tourism was strong in 2002, and although the weather was poor that year, Bulgaria's agricultural sector performed well. Taxes were lowered, and there is a zero percent capital gains tax on stock market investments.

Bulgaria's overall economic performance has been positive in the last couple of years. In 2004, the GDP grew by 5.7%, and was expected to expand by 6% in 2005, and 4.5% in 2006. This growth was fueled by an increase in domestic demand (encouraged by higher real wages and remittances from abroad), a more dynamic job market, and bank credits. Inflation was rather high in 2004, peaking at 6.2%, but was expected to regress to 4% in 2005. At 12%, unemployment was on a downward path in 2004, and was expected to drop even further by 2006, to 10%. This was the result of a more dynamic private job market, and government policies geared towards unemployment reduction. Corruption, however, remains a stumbling block to Bulgaria's economic success, and a challenge that has to be addressed before the 2007 EU accession deadline.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Bulgaria's gross domestic product (GDP) was estimated at $67.0 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $9,000. The annual growth rate of GDP was estimated at 5.4%. The average inflation rate in 2005 was 4.5%. It was estimated that agriculture accounted for 9.3% of GDP, industry 30.4%, and services 60.3% in 2005.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $67 million or about $9 per capita and accounted for approximately 0.3% of GDP. Foreign aid receipts amounted to $414 million or about $53 per capita and accounted for approximately 2.1% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Bulgaria totaled $13.72 billion or about $1,754 per capita based on a GDP of $19.9 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of -0.4%. In 2001 it was estimated that approximately 30% of household consumption was spent on food, 17% on fuel, 8% on health care, and 11% on education. It was estimated that in 2002 about 13.4% of the population had incomes below the poverty line.

LABOR

In 2005, Bulgaria's workforce totaled an estimated 3.34 million. As of third quarter 2004, an estimated 11% of workers were in agriculture, with 32.7% in industry and the remaining 56.3% in the service sector. Unemployment was estimated at 11.5% in 2005.

The constitution guarantees the right of all to form or join trade unions of their own choosing. The labor code recognizes the right to strike when all other means of conflict resolution have been exhausted. Essential employees, mainly military and law enforcement personnel, are forbidden to strike and political strikes are prohibited as well. Although the law forbids discrimination against union members and union organizing activities, there are reports of union members and organizers being harassed, demoted, dismissed or relocated. There are also reports that some newly hired workers are being forced to sign "yellow dog" contracts, namely agreements that they would not join a union or help organize one. About 18% of Bulgaria's workforce is unionized, although that percentage has been decreasing.

Minimum age for employment is 16 years, with 18 years the minimum for hazardous work. In the formal sector these regulations are generally observed, but in certain industries, family operations, and illegal businesses, children are exploited. The law establishes a standard workweek of 40 hours with at least one 24hour rest period per week. Overtime rates of no less than 150% during weekdays, 175% during weekends, and 200% during official holidays are mandated by law. The minimum wage was about $94 per month as of 2005, but is inadequate to support a worker and a family with a decent standard of living. Minimum health and safety standards exist and are effectively enforced in the public sector, but not effectively enforced in the largely unregulated and often informal private sector.

AGRICULTURE

In 2002, the total arable land area covered 3,583,000 hectares (8,834,000 acres). The average annual agricultural growth rate was -2.1% for 1980–90 and -0.4% for 1990–2000. By 2000, agricultural output was only two-thirds of what it was in 1990. However, during 2002–04, crop production averaged 2.9% higher than during 1999–2001. In 2005, agriculture accounted for 9.3% of GDP. In 2004, agriculture (including fishing and forestry) engaged about 11% of the economically active population.

Collectivized agriculture became the norm under the Communist government after 1958. In March 1991, the government adopted a land law which restored ownership rights to former owners of expropriated land. These owners were to receive 20–30 hectares (49–74 acres) each of land approximating the type and location of the former holdings, regardless of whether or not the owner cultivates that land. After February 1991, full price liberalization for producers and consumers was to occur. However, the agricultural sector was still shrinking due to the lack of progress in the implementation of privatization and property restitution. A grain crisis developed when Bulgaria exported a million tons of wheat in 1995. Currency depreciations, increased taxes, and lack of funds exacerbated the disintegration of the agricultural sector in the mid-1990s.

The principal grain-growing areas are the Danube tableland and southern Dobrudja. The production of major crops in 2004 (in thousands of tons) was wheat, 3,961; corn, 2,123; barley, 1,181; sunflower seeds, 1,079; and rapeseed, 22.

Bulgaria is a major supplier of grapes, apples, and tomatoes to Europe and the former Soviet Union. Potatoes and paprika are also important crops. Production in 2004 included (in thousands of tons): grapes, 400; apples, 30; tomatoes, 400; and potatoes, 574. About 60,000 tons of tobacco were also produced that year.

Machinery available to agriculture has increased significantly. Tractors rose from 25,800 units in 1960 to 53,800 units in 1985, before falling to 32,100 in 2002; combines increased from 7,000 to 16,000 in 1985, but by 2002 numbered only 9,000 in use. About 16% of the cultivated area is irrigated.

ANIMAL HUSBANDRY

Meadows and pastures make up about 18% of the total land area. Bulgaria had 2,100,000 sheep, 18,000,000 chickens, 1,000,000 hogs, 750,000 goats, 668,000 cattle, 200,000 donkeys, and 150,000 horses in 2004. Meat production (in carcass weight) in 2004 amounted to 479,000 tons. In the same year, the country produced 1,590,000 million tons of milk and 92,000 tons of eggs.

FISHING

Fishing resources in the Black Sea are less than abundant. Before 1960, the annual catch was slightly above 5,000 tons. Fishing output reached a high of 167,100 tons in 1976, then fell to 115,607 tons in 1982. Prior to 1989, Bulgaria used to produce about 20,000 tons of fish from freshwater aquaculture. The fish farms and fish processing industries went through major restructuring and privatization during the 1990s. Only after 2000 did the fish industry register some growth. In 2003, the total catch was 16,498 tons, about 80% from inland waters. Fishing vessels are based at the ports of Varna and Burgas. The most popular river fish is sturgeon. Due to environmental limitations, the government sets an annual sturgeon quota; for 2003 it was 22 tons. The beluga caviar quota set that year was 1,720 kg (3,780 lb).

FORESTRY

Forests cover 3,700,000 hectares (9,143,000 acres), or 33.4% of Bulgaria's territory. About 80% of the total forest area is wooded forest land. Forests are about 34% coniferous and 66% deciduous, and mainly occupy regions of higher altitudes. Over half of the forests in Bulgaria are situated on slopes of over 20°, making harvesting and reforestation very difficult. The principal lumbering areas are the Rila and western Rhodope Mountains in the southwest and the northern slopes of the Balkan Mountains in the center. Forestry and the forest industry contribute about 2% to the GDP.

Intensive exploitation and neglect before and during World War II (1939–45) and even more intensive exploitation following the war contributed to the deterioration of the forests. So during 1945–65, 860,000 hectares (2,125,000 acres) were reforested; the 20-year plan (1961–80) called for the planting of 1.4 million hectares (3.5 million acres). During the 1980s, annual reforestation averaged 50,000 hectares (123,500 acres). Despite the intensive harvesting during 1950–73 (which exceeded the government's Forest Management Plan—FMP), the total timber volume has increased from 165 million cu m (5.8 billion cu ft) in 1934 to 404 million cu m (14 billion cu ft) in 1995. The FMP decreased the amount of timber permitted to be cut from 6.8 million cu m (240 million cu ft) in 1955 to 6.2 million cu m (219 million cu ft) of roundwood in 1995 because fewer large trees are available. Roundwood production has decreased from 8.6 million cu m (304 million cu ft) in 1960 to 4.8 million cu m (522 million cu ft) in 2003. Forestry exports in 2003 totaled $139.3 million. Bulgaria exports logs to Turkey, Greece, Italy, and Macedonia; veneer to Greece and Syria; and particleboard to Greece, Macedonia, and Egypt. The main problems prohibiting greater roundwood production are diseases, drying of trees, and pests. Acid rain and heavy metals have not hurt the local forests. In 1998, the government began a forestry restitution and privatization program covering 3.6 million hectares (8.9 million acres). The average annual reforestation rate was 0.6% during 1990–2000.

MINING

Bulgaria was an important regional producer of nonferrous metal ores and concentrates, and was mostly self-sufficient in mineral requirements. Mining and metalworking in the region was well documented by Roman times, when Bulgaria and Romania, known respectively as Thrace and Dacia, were important sources of base and precious metals. Small quantities of bismuth, chromite, copper, gold, iron, lead, magnesite, manganese, molybdenum, palladium, platinum, silver, tellurium, tin, uranium, and zinc were mined, as well as the industrial minerals anhydrite, asbestos fiber, barite, bentonite, common clays, refractory clays, dolomite, feldspar, fluorspar, gypsum, kaolin, industrial lime, limestone, nitrogen (in ammonia), perlite, pyrites, salt (all types), sand and gravel, silica (quartz sand), calcined sodium carbonate, dimension stone, sulfur (content of pyrite), sulfuric acid, and crushed stone. Most of the copper deposits were within a roughly 50 km-wide (30 mi) swath from Burgas in the east, to the former Yugoslavia in the west, and almost all was produced by two enterprises, Asarel-Medet, at Panagurishte, and Elatzite-Med, at Srednogorie; copper was also mined at Burgas and Malko Turnovo. Lead and zinc were mined chiefly in the Rhodope Mountains, at Madan and Rudozem. Production outputs for 2003 were: gold, 2,142 kg; gross copper, 26,415,000 tons; barite ore (run of mine), 637,000 metric tons; limestone and dolomite, 11,000,000 tons; industrial lime, 2,902,000 tons; and silica, 610,000 tons. Manganese ore production was zero in 1999 and 2000, but totaled 1,516 metric tons in 2001 and 4 metric tons each in 2002 and 2003.

In 1998, the National Program for Sustainable Development of Mining in Bulgaria was drafted and approved, and the Underground Resources Act was enacted. The latter, which aimed to promote private enterprise and foreign investment, stipulated that underground mineral wealth was the property of the state, and provided for claims by domestic and foreign companies for the development and operation of mineral deposits for up to 35 years with potential 15-year extensions. Improved economic performance at the end of the 1990s, the significant shift away from economic uncertainties during the transition from central economic planning, improving political stability in the Balkans, and greater investor confidence in the legal underpinnings of the growing privatization process combined to contribute to the $1 billion net foreign investment in 2000, one-third more than in 1999.

ENERGY AND POWER

Bulgaria has only modest reserves of oil and natural gas, but somewhat larger recoverable reserves of coal. But it is nuclear power that allows Bulgaria to be an exporter of electricity.

In 2002 Bulgaria's output of electrical power was estimated at between 40.9 and 43.1 billion kWh, of which: around 43% came from fossil fuels; 5% from hydropower; 49% from nuclear energy; and the remainder from geothermal and other sources. In the same year, consumption of electricity is estimated at 31.797 billion kWh to 32.7 billion kWh. Total installed capacity is estimated at about 11.8 GW in 2002, of which: hydropower accounts for 1.672 million kW; nuclear for 3.782 million kW; and thermal for 6.326 million kW.

As previously noted, Bulgaria's nuclear power generating capability accounts for a major portion of the country's electrical power output, as well as allowing Bulgaria to be a power exporter. That capability is based upon its Kozloduy facility, which has six reactors, of which only four are working. In 2002, Bulgaria exported 8.335 billion kWh of electricity. In 2001, it earned $150 million from exports of electric power to Serbia and Montenegro, Kosovo, Greece, Turkey, and Macedonia.

Bulgaria is heavily reliant on petroleum product imports. The country's proven oil reserves, as of 1 January 2005, were estimated at 15 million barrels, with production and consumption estimated in 2004 at 1,000 barrels per day and 86,000 barrels per day, respectively. Exploration for oil and natural gas is primarily centered in the Black Sea and in the northern part of the country. Bulgaria's sole refinery is located at Burgas, the country's main port. In 2002, refinery output was put at 123,140 barrels per day, but according to an Energy Information Administration analysis brief, updated as of March 2005, actual refining capacity was estimated at 115,000 barrels per day.

Bulgaria's consumption of natural gas far exceeds its proven reserves and production, and it must rely on imports to meet almost its entire natural gas needs. As of 1 January 2005, Bulgaria's proven reserves of natural gas were estimated at 0.2 trillion cu f. Output in 2002 was estimated at only 0.1 billion cu ft. Imports and consumption were both estimated at 174 billion cu ft. for that same year

Coal is the most important mineral fuel, with lignite accounting for nearly 90% and brown coal for around 10%. Bulgaria was estimated in 2002 to have recoverable coal reserves of 2,988 million short tons. Production, consumption and imports of coal are estimated at: 28.4 million short tons; 32.4 million short tons; and 4.0 million short tons, respectively

INDUSTRY

Before World War II, Bulgarian industry, construction, mining, and handicrafts contributed only 17% to the net national income and accounted for only 8% of employment. Handicrafts in 1939 contributed almost half the net industrial output, followed by textiles and food processing. In the postwar period, the Communist regime nationalized industry and, through economic planning, emphasized a heavy industrialization program that resulted in a substantial increase in the metalworking and chemical industries. Between 1950 and 1960, the annual rate of growth of output in industry (including mining and power production) was 14.8%, according to the official index of gross output. Official statistics indicate that industrial output grew by 1,100% between 1956 and 1980, with the production of capital goods increasing by 1,500% and the production of consumer goods by 658%. Industrial output increased by 9.1% annually during 1971–75, 6% during 1976–80, 6.8% during 1980–85, and 2.7% during 1985–90. Ferrous metallurgy was given special emphasis in the 1960s, machine-building and chemicals in the 1970s and early 1980s, and high technology in the mid-1980s.

Even before the collapse of communism, industrial and agricultural production fell annually until 1997 and 1998, respectively, when the Kostov reforms took effect. Although traditional industries remain the foundation of the industrial sector, Bulgaria expects high-technology production to post gains in the future as high-tech companies establish operation there.

Industry accounted for 29% of GDP in 2001. The privatization of Bulgaria's industries was largely complete as of 2002, with the exception of a few large companies, such as Bulgartabac. The construction sector should realize strong growth due to the need to undertake major infrastructure projects. Growth in 2003 was expected in light industry, including electronics, textiles, and food processing.

In 2004, industry accounted for 30.1% of the GDP (and 32.7% of the labor force); agriculture made up 11.5% of the GDP (and 11% of the labor force), while services came in first with a 58.4% representation in the economic output, and 56.3% of the workforce.

Primary industries included electricity, gas and water, food, beverages and tobacco, machinery and equipment, base metals, chemical products, coke, refined petroleum, and nuclear fuel. Bulgaria also produces electrical components and computers. The industrial production growth rate reached 5.2% in 2004.

SCIENCE AND TECHNOLOGY

In 1996, Bulgaria had 25 agricultural, medical, scientific, and technological learned societies and 117 research institutes. The Bulgarian Academy of Sciences (founded in 1869) is the main research organization. The Academy of Medicine (founded in 1972) has five higher medical institutes. Total expenditures on research and development (R&D) in 2002 totaled $278.313 million or 0.5% of GDP. Of that amount, 69.8% came from the government, while 24.8% came from business. Higher education and nonprofit sources each accounted for 0.2% in 2002. The remainder came from foreign sources. In that same year there were 1,158 researchers and 466 technicians per million people, actively engaged in R&D. High technology exports in 2002 totaled $85 million, accounting for 3% of the country's manufactured exports. A large-scale program of scientific and technological cooperation of CMEA countries was adopted at the end of 1985.

Bulgaria has 18 universities and colleges offering degrees in basic and applied sciences. In Sofia are the National Natural History Museum (founded in 1889) and the National Polytechnical Museum (founded in 1968). In 1987–97, science and engineering students accounted for 27% of university enrollment.

DOMESTIC TRADE

Private shops and small supermarkets are open in many cities and local farmer's markets are still active. A few warehouse stores have opened in Sofia. The government has remained committed to privatization efforts. By the end of 1999, 71% of state-owned assets had been privatized. Bulgaria has also attracted a number of foreign investors, including US companies such as American Standard, McDonald's, Kraft Foods, and Hilton International. However, Germany is the top foreign investor.

Newspapers and magazines are the important means of advertising to the population at large. Radio advertisements are permitted for half an hour each day.

Offices are open from 8:30 am to 12:30 pm and from 1:30 to 5:30 pm, Monday through Friday. Normal banking hours are 8 am to 12 noon, Monday–Friday, and 8 to 11 am on Saturday.

FOREIGN TRADE

The principal imports were crude oil, natural gas, diesel fuel, fuel oil, coal, textiles, and machinery and equipment.

Geographic distribution of trade has changed radically twice: since World War II and the collapse of the Soviet bloc. Whereas before the war Bulgaria traded mainly with the countries of Western and Central Europe, after the war, trade shifted almost entirely to the countries of the Communist bloc. In 1991, 49.8% of all exports still went to the former USSR and 43.2% of all imports still came from the former USSR.

By the mid-1990s, weak demand in the former Soviet bloc markets led to an increase in exports to European Union countries which now take about 56% of Bulgaria's exports. Other important export areas include Central and Eastern European, and other OECD countries. Principal export markets in 2004 included Italy (with 13.1% of all exports), Germany (11.6%), Turkey (9.3%), Belgium (6.1%), Greece (5.6%), US (5.3%), and France (4.9%). The main import partners were Germany (with 15.1% of all imports), Italy (10.2%), Russia (7.9%), Greece (7.5%), Turkey (6.9%), and France (4.4%). Exports totaled $9.1 billion (FOB—Free on Board) in 2004; imports grew to $12.2 billion (FOB); the trade deficit was $3.1 billion.

BALANCE OF PAYMENTS

During the postwar industrialization program, Bulgaria had a trade imbalance, made up largely by credits, particularly from the former USSR. From 1952 to 1958, the country had visible export surpluses, but another industrialization drive resulted in a trade imbalance during 1959–61, and there were persistent imbalances during the latter part of the 1960s. In the early 1970s, export surpluses were reported for most years; there were also small surpluses in 1979, 1980, and 1984. With the collapse of COMECON trade, Bulgaria began exporting agricultural products and light manufactured products in exchange for consumer goods. During the first nine months of 1992, Bulgaria recorded its first surplus in many years. Failure of the government to institute economic reforms, however, led to severe economic hardship and trade deficits of $1.4 billion in 1993 and $1.6 billion in 1994. In 1994, the

deficit was partially financed by almost $1.1 billion in aid from other countries and international financial institutions. In 2000, the current account deficit was financed by $1 billion in foreign direct investment and additional funding from international financial institutions.

The US Central Intelligence Agency (CIA) reported that in 2002 the purchasing power parity of Bulgaria's exports was $5.3 billion while imports totaled $6.9 billion resulting in a trade deficit of $1.6 billion.

The International Monetary Fund (IMF) reported that in 2001 Bulgaria had exports of goods totaling $5.11 billion and imports totaling $6.7 billion. The services credit totaled $2.42 billion and debit $1.88 billion. By 2004, the exports of goods and services grew to $14 billion, while the imports totaled $16.5 billion. The resulting resource balance was thus -$2.5 billion, while the current account balance hit -$1.8 billion. Bulgaria's total reserves (including gold) amounted to $9.2 billion in 2004.

BANKING AND SECURITIES

All banks were nationalized in 1947 in accord with Soviet banking policies. Until 1969, the Bulgarian National Bank (BNB) was the chief banking institution handling deposits of state and local governments and national enterprises. It was the bank of issue and was authorized to credit enterprises with funds for facilities and activities not covered by the capital investment plan. In 1969 it was renamed the Bulgarian Central Bank and remained the bank of issue. Two new banks—the Industrial Bank and the Agricultural and Trade Bank—assumed the functions of providing credit for industry and for agriculture and individuals, respectively. In 1968, the Bulgarian Foreign Trade Bank was established as a joint-stock company. The State Savings Bank was the chief savings institution.

In 1996, the Bulgarian National Bank, lacking reserves, virtually gave up attempts to stabilize the exchange rate and contain inflation. However, the outlines of future economic policy under a new government appear to be decided, given that all parties agreed that a currency board was the linchpin of economic stabilization. The IMF opened negotiations with the caretaker government on the introduction of a currency board, which it made a condition of further funding. When Bulgaria achieved independence in 1991, a two-tier banking system was formed. The Bulgarian National Bank became the country's central bank. The country has a state savings bank with 491 branches. There are about 80 commercial banks in Bulgaria. Some of the commercial banks are cross-border banks that are involved in the foreign exchange market. Some of the banks licensed for cross-border foreign exchange include: Agricultural and Co-operative Bank (1987), Balkenbank (1987), Biochim Commercial Bank (1987), Bulgarian Post-Office Bank, Economic Bank (1991), Hemus Commercial Bank, and the Bank for Economic Enterprise (December 1991).

In a related move that was also seen as a step towards the restrictive regime of a currency board, the central bank announced in late January of 1997 that it would no longer be fixing a base interest rate. Instead, the BNB would set an indicative rate defined by the interest on short-term government bonds. Banks themselves would be able to set their own rates according to market principles, without interference from the central bank. In 2001, the exchange rate to the dollar was 2.1847 leva. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $2.2 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $5.5 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 3.74%.

The First Bulgarian Stock Exchange was established in Sofia on 8 November, 1991 as a joint stock company with capital of Lv10,000,000 divided into 10,000 shares of Lv1,000 each. Designated as SOFIX, it is managed by a Board of Directors and by a Chief Executive. The exchange currently trades mainly in unlisted securities. As of 2004, there were 332 companies listed on the SOFIX. Market capitalization as of December 2004 stood at $2.804 billion, with the SOFIX Index up 37.6% from the previous year at 625.3.

INSURANCE

Private insurance companies were nationalized in 1947 and absorbed into the State Insurance Institute. Property insurance and life insurance are compulsory for collective farms and voluntary for cooperatives, social organizations, and the population in general. Insurance policies and premiums have increased steadily for both. Third-party automobile liability and workers' compensation are also compulsory insurances. The Insurance Regulatory body is the Ministry of Finance. Since March of 1998, foreigners have been permitted to own a Bulgarian insurer. In 2003, total direct premiums written totaled $387 million, of which nonlife premiums accounted for $343 million. Bulgaria's top nonlife insurer was Bulstrad, with $58.9 million of gross nonlife premiums written in 2003. That same year, DZI was the country's top life insurer with $18.1 million of gross life premiums written.

PUBLIC FINANCE

An annual budget for all levels of government, becoming effective on 1 January, is voted by the National Assembly, after having been prepared by the Ministry of Finance. The disintegration of the Communist system in November 1989 and the subsequent collapse of the Soviet trade bloc caused severe economic disruption, pushing the government's budget deficit to 8.5% of GDP in 1990 (not including interest payments on commercial foreign debt). However, by the late 90s the country was seeing unprecedented growth (5.8% in 2000), due to aggressive market reforms put in place by the government during the prior decade.

The US Central Intelligence Agency (CIA) estimated that in 2005 Bulgaria's central government took in revenues of approximately $1.1 trillion and had expenditures of $1 trillion. Revenues minus expenditures totaled approximately $0.1 trillion. Public debt in 2005 amounted to 32.4% of GDP. Total external debt was $15.46 billion.

The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were lv12,484 million and expenditures were lv12,417 million. The value of revenues was us$7,092 million and expenditures us$7,054 million, based on an exchange rate for 2003 of us$1 = lv1.7604 as reported by the IMF. Government outlays by function were as follows: general public services, 17.1%; defense, 6.6%; public order and safety, 7.6%; economic affairs, 11.9%; housing and community amenities, 0.7%; health, 11.9%; recreation, culture, and religion, 1.6%; education, 5.2%; and social protection, 37.3%.

TAXATION

Bulgaria revised much of its tax system in 1996. One of the changes states that foreign persons receiving remuneration as lecturers and consultants, royalties, license payments, and remuneration for technical services, are charged with a 32% tax at the time of payment. The personal income tax is progressively rated up to 24%. As of 1 January 2005, the standard corporate or profit tax rate is 15%. A withholding tax of 7% is assessed on dividends. Employers are required to contribute 37% of employees' gross salaries for social security insurance while the employees contribute an additional 2%. The value-added tax covers all goods, services and imports at a standard rate of 20%. However, exemptions include insurance and financial services, the transfer of or the renting of land, and educational and health related services. Other taxes include a property tax at a rate of 2–4%.

CUSTOMS AND DUTIES

Most imports are subject only to declaration and registration. However, special licenses are required for imports of tobacco, alcoholic beverages, oils, military hardware, radioactive materials, jewelry, precious metals, pharmaceutical items, and narcotics. The Ministry of Foreign Trade supervises the collection of customs duties. The amount collected is not published.

Goods arriving from foreign points to be unloaded in Bulgaria must have customs manifests and other shipping documents as specified by law. Customs duties are paid ad valorem at a rate of

5–40% on industrial products and 5–70% on agricultural products. Goods from EU nations receive preferential tariff rates. Duty must be paid on all goods except those specifically exempt, such as many foods products, farm machinery, toiletries, fertilizer and pesticide, mining equipment, and medical and dental supplies. In August 1987, the national assembly adopted a law to establish tariff-free zones to attract foreign investment beginning in January 1988. Taxes on imports include a value-added tax of 20%, a 0.5% customs clearance fee, and a 3% import surcharge.

FOREIGN INVESTMENT

Bulgaria has realized the need to attract foreign investment and has one of the most liberal foreign investment laws in the region. The 1997 Foreign Investment Law set up the Foreign Investment Agency (FIA) to administer the regime. In 1999, currency laws were liberalized to conform with IMF Article VIII obligations. Foreign investors can enter into joint ventures, start new (greenfield) ventures, purchase companies in Bulgaria's privatization process, or acquire portfolio shares. The law governing privatizations is the 1992 Law on the Transformation and Privatization of State and Municipal Enterprises. In November 2000, amendments were made to enhance the transparency and efficiency of the privatization process and to bring it under parliamentary control, but domestic political turmoil and austerity under an IMF stand-by program combined with the external economic slowdown to bring foreign investment in privatization to a low of less than $20 million in 2001. By 2000, about 78% of the state enterprises slated for privatization had been sold off with foreign investors participating mainly through direct cash purchases. The government encourages the use of Brady bonds (debt-for-equity swaps) in payment instruments. Bulgarian bad debt bonds (zunks) can be purchased on the local market at a 30–35% discount on the face value and are accepted at a 40% premium in privatization sales.

Under legislation from 1987 and since revised, Bulgaria has six free zones where companies with foreign participation can receive equal or preferential treatment. The most profitable free zone is the one at Plovdin. Others are on the Danube (at Ruse and Vidin), near the Turkish border (at Svilengrad), near the Serbia border (Dragomen), and on the Black Sea (at Burgas, which has the most advanced warehousing and transshipment facilities).

In 1992, foreign direct investment (FDI) was $34.4 million, mostly from Austria and Hungary. In 1993, FDI jumped to $102.4 million, $22 million from privatization and over half ($56 million) from Germany. By 1997, FDI inflow had risen to $636.2 million. Most ($421.4 million) came from privatization sales and the largest source was Belgium ($264 million). In 1998, the effects of the Russian financial crisis helped produce the first postindependence decline to $620 million; $155.8 million was from privatization and Cyprus was the largest source ($109 million), mainly from Stambouli Enterprises. In 1999, FDI inflow recovered to $818 million, with $226.7 million coming from privatization sales and with Germany, Cyprus, and Russia each the source of over $100 million FDI. FDI inflow peaked in 2000 at $1 billion, with $366 million from privatization. The largest sources were Italy ($339.7 million) and Greece ($241million). The global economic slowdown beginning in 2001 reduced FDI inflow to $812.9 million in 2001 and to an estimated $478.7 million in 2002. Contributions from privatization reached a low of $19.2 million, recovering to an estimated $135.6 million in 2002. In 2001, Greece ($240.2 million) and Italy ($146.5 million) were the sources of the largest investments, and in 2002, the only FDI inflow over $100 million was from Austria ($137.7 million). A main source of disinvestments was Korea (Daewoo and Hyundai), with negative flows of -$9.2 million in 2001 and -$41.3 million in 2002.

From 1992 to 2002, total FDI inflow was $5.14 billion, $1.58 billion from privatization sales. Sources include at least 25 countries, with the top five being Greece (12.4%), Germany (12.2%), Italy (10.5%), Belgium (9.4%), and Austria (8.7%). The sectors receiving the most net FDI 1998 to 2002 were banks and other financial activities (23.5%); trade and repair services (14.1%); telecommunications (9.1%); petroleum, chemicals, rubber and plastics (7.2%); and mineral products including cement and glass (6.8%). In 2004, FDI reached a record high of $2.5 billion (the equivalent of 9.2% of the GDP), and was expected to remain high in 2005 at around $2.1 billion. The main source of FDI has been the EU, with around 67% of total investments.

Capital markets are small and underdeveloped in Bulgaria. The new Bulgaria Stock Exchange opened in 1998 with 998 companies and a total market valuation of $992 million. In December 2001, there were 399 listed companies with a market capitalization of $505 million. However, Bulgaria offers a favorable investment climate, boasting strong economic growth, political stability, a well educated workforce and competitive costs. It is a good springboard to other markets in Europe and the Middle East, and as EU accession candidate in 2007 it can serve as an entry point to otherwise well protected markets.

ECONOMIC DEVELOPMENT

Until 1990 when the post-Communist government began a program of privatization, the economy was almost entirely nationalized or cooperatively owned and operated on the basis of state plans. These were designed to expand the economy as a whole, with emphasis on the growth of heavy industry (fuels, metals, machinery, chemicals) and on the development of export goods. In 1971, productive enterprises were grouped into more than 60 state concerns responsible for almost all nonagricultural production.

Bulgaria's first five-year plan (1949–53) emphasized capital investment in industry. The period was marked by a slow pace in agricultural production (owing largely to collectivization and small investment), an inadequate supply of consumer goods, and a poor livestock output. The 1953–57 plan provided for a decrease in industrial investment, with a resultant improvement in agriculture, housing, and living conditions. The food-processing industry, important for export, began to receive greater attention in 1958, as did textiles and clothing. The lagging rate of growth during the early 1960s was due mainly to poor agricultural output and to a slower industrial pace. The third five-year plan (1958–62), with its "big leap forward" (1959–60), was claimed to have reached its goals by the end of 1960, but definite shortcomings remained. The fourth plan (1961–65) devoted 70% of total investment to industry, while agriculture received only 6.5%. Investments directed by the fifth plan (1966–70) adhered essentially to precedent, with some shift toward agriculture, and this trend continued under the sixth plan (1971–75). Of total investment during 1971–73, over 40% went to industry and 15% to agriculture. The 1976–80 plan resulted in a 35% increase in industrial output and a 20% increase in agricultural output. The overall growth rate began to slow down in the late 1970s, and the 1981–85 plan reflected the concept of a more gradual economic growth. Under the 1986–90 plan, it was projected that national income would grow by 22–25%, industrial output by 25–30%, and agricultural production by 10–12%. Priority was to be given to the development of high technology.

In the 1990s, the post-Communist government began a program to reform of the nation's economy. It rescheduled the foreign debt, abolished price controls, and became a member of the International Monetary Fund (IMF) and IBRD. The reforms, however, were not embraced by the Socialist government that took power in 1994 and by 1996 the economy was in a tailspin. The government led by Prime Minister Ivan Kostov that took power in 1997 laid the financial groundwork for a market economy by selling off state firms, strengthening the currency (lev), and doing away with price controls, state subsidies, monopolies, and trade restrictions. As a result of its successful stabilization of the lev and inflation, Bulgaria is viewed favorably by investors and is a candidate for membership in the European Union (EU). Membership in that body was expected for 2007 if accession requirements are met, including progress on privatization.

The government of Prime Minister Simeon Saxe-Coburg-Gotha, which came to power in 2001, took steps to reduce taxes, rein in corruption, and encourage foreign investment. Bulgaria nevertheless suffers from high unemployment and low standards of living. A $337 million stand-by arrangement with the IMF, approved in February 2002, expired in February 2004. The government, while pledging to the IMF that it would adhere to sound macroeconomic policies (including controlling spending, strengthening tax administration, curbing inflation, balancing the budget, and strengthening the country's external financing position), stated the improvement of Bulgarians' living standards was central to the country's economic development.

Although Bulgaria has registered some of the highest GDP growth rates in Europe, the real income of the population (and subsequently their living standards) have failed to develop as quickly. Policy makers in Bulgaria are therefore looking to match the macroeconomic boom with similar improvements at the population level, particularly in terms of lower unemployment and more job opportunities. The national elections from June 2005 were followed by political turmoil, none of the parties being able to gain a clear majority. Eventually, the socialist party managed to form a government around Prime Minister Sergei Stanishev and promised to continue economic reforms and market restructuring. Together with Romania, Bulgaria is seeking to meet the EU accession date of 2007. Corruption remains the main point of contention for both countries, and is an issue that needs to be addressed promptly in the coming period.

SOCIAL DEVELOPMENT

The code for compulsory social insurance was revised in 2000. It provides for dual coverage by a social insurance system and mandatory private insurance. The program covers all employees, selfemployed persons, farmers, artists, and craftsman. Old age benefits begin at age 61 and 6 months for men and 56 and 6 months for women; these will be increased incrementally until 2009 when retirement age will be 63 for men and 60 for women. Survivors' and disability pensions are also provided, as well as work injury and unemployment benefits. Maternity benefits amount to 90% of earnings for 135 days. The government provides family allowance benefits based on the age and number of children.

Although women have equal rights under the constitution, they have not had the same employment opportunities as men. Although many women attend university, they have a higher rate of unemployment, and are likely to work in low paid jobs. Violence against women remains a serious problem, and domestic violence is considered a family problem and not a criminal matter. The government provides no shelter or counseling for women. There exists societal stigma against rape victims, and no laws prohibit sexual harassment. Trafficking in women remains a huge problem.

A significant problem of discrimination against the Roma minority continued in 2004. Although freedom of speech is provided for by the constitution, the government maintains influence over the media and libel is a criminal offense. The government and public have limited tolerance for religious freedom.

HEALTH

The Ministry of Health is the controlling and policy-making agency for the health system in Bulgaria. An estimated 4% of GDP went to health expenditure. The Bulgarian government passed a bill restoring the right of the private sector to practice medicine and permitting the establishment of private pharmacies, dentists, and opticians. Bulgarian citizens resident in the country still have use of the free national health service. Bulgaria is in the process of restructuring its health care system from one based on command and control to one founded on pluralism. Medical care has never been well funded, but the shift from a centrally planned to a private enterprise system has left the medical sector in disarray. Doctors continue to receive low wages and operate inadequate and outdated machinery and patients on the whole receive minimal health services. In 1993, the World Bank assessed the country's problems and recommended numerous changes and improvements. The Ministry of Health sought funding for 19–21 additional health centers and the rehabilitation of 67 secondary centers served by 283 emergency medical teams. Utilization of health care services, including hospitalization, outpatient treatment, and preventive care, declined throughout the 1990s.

Bulgaria has 98 municipal hospitals with an average of 227 beds apiece, and 32 general district hospitals with an average of 874 beds. In addition there were 12 university hospitals in Sofia. As of 2004, there were an estimated 338 physicians, 443 nurses, 81 dentists, and 16 pharmacists per 100,000 people. Mortality in 2000 was 13 per 1,000, compared with 8.1 in 1960.

Stroke mortality is among the highest in Europe and circulatory diseases account for more than half of all deaths. Smoking is on the increase; alcohol consumption is high; physical activity is low; and obesity is common. Bulgarians have a high intake of fats, sugars, and salt. One out of eight people has high blood pressure. Improved maternal and child care lowered infant mortality from 108.2 per 1,000 in 1951 to 13 per 1,000 in 2000. However, by 2005 the infant mortality rate increased to an estimated 20.55 per 1,000 live births. In 1999, there were 46 cases of tuberculosis per 100,000 people despite high immunizations for this disease. In the same year Bulgaria immunized children up to one year old as follows: diphtheria, pertussis, and tetanus, 96%, and measles, 96%. An estimated 76% of married women (ages 15 to 49) used contraception. The fertility rate has deceased from 2.2 per woman in 1960 to 1.3 per woman in 2000. Bulgaria's maternal mortality rate is below the average for countries of medium human development. Approximately 99% of the population had access to safe drinking water. Life expectancy in 2005 was 72 years on average.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 346 people living with HIV/AIDS in the country. There were an estimated 100 deaths from AIDS in 2003.

HOUSING

There are two main types of housing environments in the country: street district and housing complexes. Most of the street district housing was built before World War II and consists of private lots built to follow a street regulation plan. Beginning in the 1950s, housing complexes were built on public property, though the homes themselves are privately owned. Over 120 complexes have been built in the last 50 years, with a large number of prefab homes. Capital investment for housing construction during the period 1976–80 amounted to Lv3.5 billion. At the end of 1985 there were 3,092,000 dwelling units in the country, 24% more than in 1975; by 1991, this figure had risen to 3,406,000. In 2004 there were an estimated 3,704,798 dwellings; about 477 per 1,000 population. The average number of people per household was 2.09. About 11% of all housing stock are one-room dwellings; about 65% are two or three-room units. About 63% of all dwellings are in urban areas.

Although housing construction during the period 1976–85 averaged about 60,000 units per year, the housing shortage continues, especially in the larger cities, because of the influx into urban areas of new workers and because of the emphasis placed on capital construction. In 1975, to curb urban growth, the government instituted tight restrictions on new permits for residences in major cities. In December 1982, the Communist Party decreed that, in order to halt the growth of Sofia, a number of enterprises in the capital would be closed or moved elsewhere.

EDUCATION

Education is free and compulsory for eight years between the ages of 7 and 19. Primary education is divided into two stages of four years in each stage. Secondary students then choose either a general studies or vocational training program, each of which lasts for four years. The Academic year runs from September to June. The language of instruction is Bulgarian.

In 2001, about 70% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 90% of age-eligible students. The same year, secondary school enrollment was about 87% of age-eligible students. It is estimated that about 97% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 17:1 in 2003; the ratio for secondary school was about 12:1.

There are over 30 higher education institutions, including four universities. The most important is the University of Sofia, founded in 1888. The others include the University of Plovdiv (founded 1961), the University of Veliko Tarnovo (founded 1971), and the American University in Bulgaria (founded 1991). All higher level institutions had a total of 262,757 students and 26,303 teaching staff in 1997. In 2003, about 39% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2004 was estimated at about 98%, with fairly even rates for men and women.

As of 2003, public expenditure on education was estimated at 3.6% of GDP.

LIBRARIES AND MUSEUMS

The St. Cyril and St. Methodius National Library, established in 1878 in Sofia, is the largest in Bulgaria (2.52 million volumes); since 1964, the Elin Pelin Bulgarian Bibliographic Institute has been attached to it. Other important libraries are the Central Library of the Scientific Information Center (with 740,000 volumes), the Bulgarian Academy of Sciences library (1.74 million volumes), the Sofia University Library (1,500,000 volumes), and the Ivan Vazov National Library in Plovdiv (with 1,300,000 volumes). The Pencho Slaveykov Public library in Varna has over 800,000 volumes. The Union of Librarians and Information Services Officers was established in Bulgaria in 1990.

Bulgaria has some 200 museums, of which the most important include the National Archaeological Museum (attached to the Academy of Sciences) and the National Art Gallery (with a collection of national and foreign art), both in Sofia. Other museums are devoted to history, science, and the revolutionary movement, and include the Bojana Church Museum in Sofia, the Museum of Wood Carvings and Mural Painting in Trjauna, with an important collection of artifacts from the Bulgarian National Revival Period in the 18th and 19th centuries, and the Open-Air Museum of Ethnography in Gabrovo.

MEDIA

Telecommunications systems are owned and operated by the state. In 2003, there were an estimated 380 mainline telephones for every 1,000 people; about 114,600 people were on a waiting list for telephone service installation. The same year, there were approximately 466 mobile phones in use for every 1,000 people.

In Spring 2000, the government awarded a license for the first privately owned television station with nationwide coverage to the Balkan News Corporation; in 2003, Nova TV became the second national commercial station. All other national television stations are state-owned, though there are a number of privately operated regional stations. In 2003, there were an estimated 543 radios for every 1,000 people; the number of television sets was not available in the same survey. It is estimated that about 133 of every 1,000 people subscribe to cable television services. In 2003, there were 51.9 personal computers for every 1,000 people and 206 of every 1,000 people had access to the Internet. There were 46 secure Internet servers in the country in 2004.

The principal Sofia papers, with their publishers and estimated daily circulations (2002), are: 24 Chasa, Vest Publishing House, 330,000; Bulgarska Armiya, Ministry of Defense, 30,000; Demokratsiya, Union of Democratic Forces, 45,000; Duma, Socialist Party, 130,000; Trud, Confederation of Independent Trade Unions, 200,000; Zemedelsko Zname, Agrarian People's Union, 178,000; and Zemya, Socialist Party, 53,000.

The constitution of Bulgaria ensures freedom of speech and of the press, and the government is said to generally respect these rights. National television and radio broadcasting remain under supervision of the Council for Electronic Media and the Communications Regulation Commission.

ORGANIZATIONS

Bulgaria's important economic organizations include the Bulgarian Chamber of Commerce and Industry (1985) and organizations dedicated to promoting Bulgaria's exports in world markets. There are trade unions representing a wide variety of vocations. The Confederation of Independent Trade Unions of Bulgaria was founded in 1901 and taken over by the Communists after World War II. In 1990, it became an independent organization. It has about 75 member federations and four association members. There are professional and trade organizations representing a variety of fields.

The Bulgarian Medical Association serves as a national organization promoting high standards of healthcare, advancement in medical research, and the free dissemination of health information. There are also several similar medical organizations dedicated to promoting research and education concerning specific conditions and diseases.

There are several associations promoting a wide range of sports and leisure activities, including bobsledding, badminton, baseball, chess, yoga, and amateur radio. The National Federation of Sports in Schools was established in 1993 to promote and coordinate sport activities through the schools. There are national branches of the Olympic Committee, the Special Olympics, and the Paralympic Committee.

The Bulgaria Academy of Science promotes scientific study and advancement, conducts research projects, and maintains a museum. The Institute of Art Studies is cosponsored by the Academy of Science as an organization dedicated to promoting Bulgarian art and culture.

Since 1990, a number of youth organizations have developed throughout the country. The Bulgarian Democratic Youth, with about 90,000 members, became the successor to the Dimitrov Young Communist League. The group serves to advance civic enterprise and control and promote a social environment for enterprising youth. Student groups include the Federation of Independent Student Associations, the Bulgarian Association of University Women, the Independent Student Trade Union, and the Student League of Beliko Turnovo. There is an Organization of Bulgarian Scouts and active branches of YMCA/YWCA.

There are national chapters of the Red Cross Society, UNICEF, Habitat for Humanity, and Caritas.

TOURISM, TRAVEL, AND RECREATION

Bulgaria is rich in mineral waters and has numerous tourist spas. Visitors are attracted to the Black Sea resorts and the archaeological monuments. There are three national parks—Pirin, Rila, and Central Balkan—all rich in historic sites and self-regulating ecosystems. Lying between the slopes of the Balkan and the Sredna Gora mountain range is the Valley of Roses. Foreign visitors to Bulgaria must have a passport. Visas are not required for stays of up to 30 days.

In 2003, about 6.2 million tourists visited Bulgaria, a 12% increase from 2002. In that same year, tourist receipts totaled $2.1 billion. There were 143,960 beds available in hotels and other establishments, with an occupancy rate of 34%. Visitors stayed in Bulgaria an average of four nights.

In 2004, the US Department of State estimated the cost of staying in Sofia at $221 per day. In smaller towns the daily costs were approximately $87.

FAMOUS BULGARIANS

The founders of modern Bulgarian literature, writing before the end of Turkish rule, were Georgi Rakovski (1821–67), Petko Slaveikov (1827–95), Lyuben Karavelov (1835–79), and Kristo Botev (1848–76), who was one of Bulgaria's greatest poets. The most significant writer after the liberation of 1878 was Ivan Vazov (1850–1921), whose Under the Yoke gives an impressive picture of the struggle against the Turks. Pentcho Slaveikov (1866–1912), the son of Petko, infused Bulgarian literature with philosophical content and subject matter of universal appeal; his epic poem A Song of Blood recalls an insurrection suppressed by the Turks in 1876. In the period between the two world wars, Nikolai Liliyev (1885–1960) and Todor Trayanov (1882–1945) were leaders of a symbolist school of poetry. Elin Pelin (1878–1949) and Iordan Iovkov (1884–1939) wrote popular short stories on regional themes. More recent writers and poets include Nikola Vaptzarov, Christo Shirvenski, Dimiter Dimov, Orlin Vassilev, and Georgi Karaslavov. Elias Canetti (1905–94), Bulgarian born but lived from 1938 until his death in the United Kingdom, received the Nobel Prize for literature in 1981. Tzvetan Todorov (b.1939), is a Bulgarian philosopher and literary theorist living in France; he is the author of The Conquest of America (1982). Ivan Mrkvicka (1856–1938), a distinguished Czech painter who took up residence in Bulgaria, founded the Academy of Fine Arts in Sofia.

A prominent Bulgarian statesman was Alexander Stamboliski (1879–1923), Peasant Party leader who was premier and virtual dictator of Bulgaria from 1920 until his assassination. The best known modern Bulgarian, Georgi Dimitrov (1882–1949), was falsely charged in 1933 with burning the Reichstag building in Berlin; he became general secretary of the Comintern until its dissolution and prime minister of Bulgaria in 1946. Traicho Kostov (1897–1949), an early revolutionary leader, was a principal architect of Bulgaria's postwar economic expansion. Caught up in the Tito-Stalin rift, he was expelled from the Politburo and executed in December 1949. Todor Zhivkov (1911–1998) was first secretary of the Bulgarian Communist Party between 1954 and 1989, the longest tenure of any Warsaw Pact leader. His was marked by ardent and steadfast support of Soviet policies and ideological positions. Zhivkov's daughter Lyudmila Zhivkova (1942–81), a Politburo member since 1979, was regarded by Western observers as second only to her father in power and influence. Zhivkov was replaced by Dimitar Popov as premier of a coalition government headed by the Socialist Party (formerly the Communist Party). Simeon II (b.1937) was the last tsar of Bulgaria from 1943–46, and was prime minister from 2001–05. He is also known as Simeon of Saxe-Coburg-Gotha.

DEPENDENCIES

Bulgaria has no territories or colonies.

BIBLIOGRAPHY

Anguelov, Zlatko. Communism and the Remorse of an Innocent Victimizer. College Station, Tex.: Texas A&M University Press, 2002.

Detrez, Raymond. Historical Dictionary of Bulgaria. 2nd ed. Lanham, Md.: Scarecrow, 2006.

Dimitrov, Georgi. The Diary of Georgi Dimitrov, 1933–1949. New Haven: Yale University Press, 2003.

The Fragility of Goodness: Why Bulgaria's Jews Survived the Holocaust: A Collection of Texts. Princeton, N.J.: Princeton University Press, 2001.

Frucht, Richard (ed.). Eastern Europe: An Introduction to the People, Lands, and Culture. Santa Barbara, Calif.: ABC-CLIO, 2005.

International Smoking Statistics: A Collection of Historical Data from 30 Economically Developed Countries. New York: Oxford University Press, 2002.

McElrath, Karen (ed.). HIV and AIDS: A Global View. Westport, Conn.: Greenwood Press, 2002.

Otfinoski, Steven. Bulgaria. 2nd ed. New York: Facts On File, 2004.

Petkov, Petko. The United States and Bulgaria in World War I. Boulder, Colo.: East European Monographs, 1991.

Bulgaria

History & Background

Bulgaria is a South East European country situated in the heartland of the Balkan Peninsula. With a territory of 110,993 square kilometers, it ranks among the smaller states of Europe. Bulgaria borders Romania to the north, Yugoslavia and the Former Yugoslav Republic of Macedonia to the west, Greece to the south, Turkey to the southeast, and has a Black Sea coast line to the east. Demographic trends in the 1990s led to the decline of a population of roughly eight million. An estimated one million Bulgarians reside abroad, primarily in North America and Western Europe. Turks constitute the largest ethnic minority (about 10 percent), followed by the Roma or Gypsies, a group elusive to statistics. There are also Russian, Jewish, Armenian, Tatar, Pomak (Bulgarian Muslim), and Greek populations in Bulgaria. Bulgarian is the official language and the language of education, although most minority groups also use their mother tongues.

Bulgarian is written in the Cyrillic alphabet, a choice made in the ninth century at the time of conversion to Eastern Orthodox Christianity. Bulgarian is a Slavic language, akin to Macedonian, Serbo-Croatian, and Russian. Compulsory education was widespread for most of the twentieth century, causing literacy rates to be as high as ninety-nine percent and to be almost equal for both genders. The capital city Sofia is a major center of culture and education and boasts some of the nation's most prestigious schools of higher learning. Otherwise, educational facilities are evenly distributed throughout the country and available to both urban and rural citizens.

Bulgarian traditions in education go back to the Middle Ages when the First Bulgarian Kingdom (893-1018) provided the conditions for a blossoming of early Slavic literature and culture based on the Cyrillic alphabet. The Bulgarian Tsar Simeon The Great (893-927) welcomed the disciples of the "Apostles of the Slavs," St. Cyril and Methodius and furthered their effort. A court school was established in the Bulgarian capital of Preslav. St. Clement, founded a school on the shores of Lake Ohrid in Macedonia. Thus Bulgaria became the "cradle of Slavic civilization", where an estimated 3,500 priest-teachers were trained, large-scale translation of service books was carried out, and original works of theology, philosophy, literature, and art were created. This legacy later enriched other Slavic Eastern Orthodox nations, including Serbia, Russia, and Ukraine. The Bulgarians celebrated May 24th, the day of the Slavic alphabet and culture, as one of the most cherished national holidays.

The Ottoman conquest (1396-1878) brought education and culture to a standstill. The nation had lost the institutions that previously sponsored it: the state was defeated and the autocephalous church submitted to the control of the Greek-dominated Orthodox millet in Constantinople. The only Bulgarian schools during this period were kiliini (cell) schools at monasteries which taught basic literacy. The Greek schools available at the time were not Bulgarian in spirit and were not trusted by the local population. The national revival was stirred by a "Slav-Bulgarian History," a book written in 1762 by the monk Paisii from the Hilendar Monastery in Mount Athos. It revived the memory of past glory and had enormous impact on the nation. Other books followed and generated a popular movement for secular education, which was at the mainstream of the Bulgarian national renaissance. In 1824, the distinguished Bulgarian scientist Dr. Peter Beron published the "Fish Primer," titled after the illustration on the front page. This textbook taught the essentials of arithmetic, geography, biology, and hygiene. In its forward, the author gave valuable pedagogical advice to teachers and promoted the concepts of secular education. The first fully secular Bulgarian school, known as the Aprilov Gymnasium, was established in the town of Gabrovo in 1835. Secular education quickly gathered momentum and by the middle of the nineteenth century, a real system of schools existed throughout the entire territory of the country.

State education dates back to 1878 when independence was restored with the decisive help of Russia. However, the first Ministry of Education did not have to start from nothing; a system of 1,479 primary schools, 50 secondary institutions, and 130 reading clubs was already in existence. The young modern nation-state pursued vigorous policies in the field of education. The legal foundations for these were laid out in the Turnovo Constitution of 1879, which sanctioned free and secular primary education, compulsory for all children regardless of gender, age, nationality, or faith. A law adopted in 1921, during the rule of the Bulgarian Agrarian National Union, extended the period of compulsory education to seven years. The establishment of the first institution of higher learning, St. Clement Ohridski University of Sofia, occurred in 1888. During the period 1878-1912 a fine arts and a music academy, teacher-training institutes, vocational schools, theological institutions, and the Bulgarian Academy of Sciences was established. Educational development was slowed down during the period of the Balkan Wars (1912-13) and the First and Second World Wars.

The advent of communism's rise to power, shortly after the end of the Second World War, had a decisive impact on education. During the period 1944-89, education in Bulgaria was heavily centralized and placed under the rigid control of the Communist Party. Religious influences, previously quite strong in the schools, were replaced by heavy obedience to the atheistic doctrine of Marxism-Leninism. Private schools were abolished. In the meantime, the education system was expanded and new schools were founded at all levels. A law passed in 1948 made education compulsory until the age of 16. The curriculum was rigorous and comprehensive, with very few elective subjects, and placed special emphasis on math and the sciences. Education was free at all levels, including higher education and post-graduate studies. Many new universities, mostly with technical profile, opened new opportunities for professional growth to previously underprivileged groups of society and to women. A typical characteristic of academia was the separation of higher teaching from research, institutionalized in the parallel existence of universities and research institutes. Under communism, education bred sophisticated urban elites, whose covert opposition to the system undermined its very foundations and facilitated its fall in the "tender" revolution of 1989. The freedom of travel after the fall of communism enabled many Bulgarian professionals to look for employment on the world labor market. Many found white-collar jobs in North America and Western Europe during the 1990s—a testimony to the quality of Bulgarian education in this period.

Since 1989, the nation has lived through a transition period, which has encompassed thorough changes of the economy, from command to market-oriented and the polity from totalitarianism to pluralist democracy. These changes affected education in a variety of ways. Some of the immediate positive effects included freeing of the education system from ideological constraints, its decentralization, and the restoration of private schools as an alternative in education. Nonetheless, the transition brought about an acute economic crisis. The state economy could no longer continue as the only source to fund education. The cuts in the state appropriations for science and education were extremely severe in the beginning of the 1990s. For example, in 1990 the resources provided by the Bulgarian government for higher education and research were reduced 2.5 times compared to the level of 1989, after corrections for inflation. This underscored the need for introducing paid tuition in higher schools. The economic crisis reached unprecedented official rates of 15 to 17 percent and families in which one or both parents were unemployed were struggling to keep their children in school or college. Despite the crisis, the best traditions in education were preserved and enrollment in higher schools increased. This fact underscores the value that Bulgarians placed on education.

Constitutional & Legal Foundations

Education was in a state of reform and had been subject to intense legislative activity throughout the 1990s. The Bulgarian Constitution adopted by the Great National Assembly in 1991 and promulgated in The State Newspaper No. 56 on July 13, 1991 laid out the basic principles of education. Article 53 guaranteed the right to education for all citizens as well as the right to free primary and secondary education in state and municipal schools. Higher education was also free under conditions specified by law. Education was compulsory until the age of sixteen. The constitution placed all schools under the control of the state; however, it provided for the academic autonomy of institutions of higher learning.

The Public Education Act of 1991, amended and supplemented several times since, gave substance to the constitutional provisions and enhanced the democratic character of changes in the education system. It established the secular character of education; however, it also authorized the establishment of religious schools and the equality of religious education. The Act sanctioned the restoration of private schools as an alternative to state and municipal schools, and allowed the establishment of schools with foreign participation. The Act specified the compulsory age and the official language of instruction. The law guaranteed the right to choice of school and type of education based on personal preference and ability. It ruled out corporal punishment and guaranteed students the right to dignified treatment. The Act detailed the rights and obligations of both teachers and students. It further laid out the structure of the education system, comprising of basic, secondary, and higher education and outlined the system of administration and finance of education.

The Higher Education Act of 1995 describes the goal of higher education; the training of highly qualified specialists and promoting the progress of science and culture. The Act legalized many changes that were made in the sphere of higher education during the period of 1990-1995. The state allowed higher schools to initiate their reform and sanctioned the results, which included the introduction of new system of academic degrees—specialist, bachelor, master, doctor; the initiation of the process of accreditation; and the principle of academic autonomy. The latter gives expression to the intellectual freedom of the academic community and provides for academic freedoms, academic self-government, and the inviolability of the higher school's territory. The law also strictly lessens the functions of the state in the management of higher education, reducing considerably its role of supervisor and sponsor of higher learning. The Act has been amended several times since its adoption in 1995.

A Law on the Level of Schooling, the General Educational Minimum, and the Curriculum was adopted in 1999. It aimed at establishing uniform requirements for all schools in the country, guaranteeing equivalency of certificates issued for the completion of a particular grade and level of schooling. The law regulated the first two levels of schooling, basic and secondary. It provided the basis for curriculum development and grading.

The Vocational Education and Training Act of 1999 sanctioned a large variety of educational programs guaranteeing professional education to all citizens who were older than thirteen and had completed at least sixth grade of general education. It established uniform requirements for certification of the acquired professional skills, comprising six degrees of proficiency. The law also sanctioned the establishment of a network of centers for professional orientation.

Educational System—Overview

Education in Bulgaria is compulsory between the ages of 7 and 16. Parents have legal responsibility to secure the school attendance of their child. All schools in the country are co-educational, admitting students of both genders. The official language of instruction is Bulgarian. Schoolchildren who have a different first language, besides the compulsory study of the Bulgarian language may study their mother tongue in municipal schools under the protection and control of the state.

The educational system (prior to higher education) comprises 12 grades, organized in two major levels: basic and secondary. Basic education (grades first through eighth) is subdivided into two sub-levels: elementary (grades first through fourth) and presecondary (grades fifth through eighth). Secondary education normally encompasses grades eighth through twelfth, but can start earlier depending on the type of school. There are two major kinds of secondary schools: secondary comprehensive, usually called gymnasia (high school) and secondary vocational, most often referred to as tehnikum (vocational school.) Special schools at all educational levels accommodate students with impaired health. Private schools constitute a new element in the structure of the education system.

Special schools accommodate students in need of special care because of learning disabilities, health, or emotional problems. There is a wide variety of special schools, catering to children who are chronically ill, mentally retarded, blind or visually impaired, hearing and speech impaired, or who have behavioral problems bordering on juvenile delinquency. In 1999-2000, there were 146 special schools at all levels of the education system with 16,000 students enrolled. A significant number of the special schools function as internati (boarding schools).

Private schools are still relatively few in numbers. By January 1999, there were only 52 private schools. Six of the private schools were elementary, twenty-three basic, two presecondary, seventeen high schools, and four general comprehensive including all levels. There were 4,382 students enrolled in all private schools, or only 0.5 percent of the whole student population. Private schools are subject to social controversy because of widespread concerns that they undermine the nation's democratic traditions in education. Despite that, their numbers slowly increase: in comparison with 1998, there were eight more private schools and student enrollment enlarged by 389.

The curriculum is structured into three components: compulsory, elective, and optional; the correlation between those varies at different types of schools. Subjects fall into the following eight major areas of content: Bulgarian language and literature, foreign languages, mathematics, information technologies, social sciences and civics, natural sciences and ecology, music and art, physical culture and sports.

Schools operate on a five-day week schedule. September 15 or the workday closest to it marks the beginning of the school year. This is a festive occasion. Many students go to school carrying bouquets of flowers for their teachers and may be accompanied by their families. The duration of the school year varies by the school level and grade and depends on the quantity of material that needs to be covered. It ends on May 24 for grades 1 and 12 (in the latter case, the intention is to provide time for the matriculation examination). The school year continues until May 31 for grades 2 through 4, until June 15 for grades 5 through 8, June 30 for grades 9 through 11. The school year is divided into two sroka (terms, singular is srok ); the first term begins on September 15 and ends on February 4, the second one starts on February 9. There is a Christmas break (December 24 through January 6), an inter-term break (February 7-8), a spring break (April 1-10), and a two-day break before Eastern Orthodox Easter. In addition, first graders only have a short break in the fall (November 11-13). Setting school vacations in relation to religious holidays is a departure from the practices of the communist regime, which did everything possible to discourage religion and banish it from the public sphere. The summer vacation spans from the end of the school year until September 15. If schools are to be closed due to inclement weather or fuel shortage, the days missed are compensated at the expense of vacation time.

Students from grades 1 through 12 normally spend half a day in school; the other half is dedicated to homework and independent study at home. In elementary school and sometimes in presecondary school there exists an option called zanimalnya (extended care) for students to spend the other half of the day in school working on their lessons under the control of a teacher. This is done upon the explicit request of the parents. Schools in big cities operate according to a two-shift scheme (morning and afternoon) because of shortage of school premises. In small cities and villages the one-shift scheme is prevalent.

The grading system is based on numerals, where 6 is otlichen (excellent), 5 is mnogo dobar (very good), 4 is dobar (good), 3 is sreden (satisfactory), and 2 is slab (poor). Passing grades are 3 through 6; 2 denotes a failure. Very rarely applied, 1 (very poor) is sometimes given for academic misconduct. This grading system is used at all levels of schooling. Grading is based on written and oral testing, homework, and in-class participation. Students do not pass automatically to a higher grade level. Students who have poor grades in more than three subjects repeat the year. In case of three or less poor grades the student has the right to take a supplementary examination, a failure in which also results in repeating the grade. There is no passing to a higher grade on probation. Students are not allowed to repeat grades more than twice in their school career.

Textbooks are subject to contest-based writing, publication, and distribution. All Bulgarian publishing houses that meet the criteria set by the Ministry of Education and Science can compete. The textbooks suitable for use in a particular subject are selected under conditions of real competition with respect to content, artistic layout, and price. On those terms, the Ministry works with more than thirty state and private publishing houses, which print and distribute over 480 textbooks for comprehensive and 800 textbooks for vocational instruction. The schools then place their orders directly with the publishers. The introduction of the contest principle in the publication of textbooks raised professional standards and resulted in improved quality of textbooks.

Bulgarian schools are well equipped with traditional audiovisual aids, such as maps, charts, and globes. Simple technical appliances (like overhead projectors, TV sets, cassette-recorders, and slide-projectors) are also widespread, but the instructional materials that go with them are often obsolete and not in compliance with the new content of study. Office equipment, copiers, and printers are generally lacking in classrooms. But schools face grave problems in securing contemporary computer hardware, software, and communications. The need to update information technologies is well recognized and guidelines have been developed for their introduction.

Bulgarian educators are generally quite open to new instructional techniques and methods. The problems stem from a poor material base. Relatively few computers are available, and those tend to be outdated models with inadequate performance. The existing computers in 1995 were IBM (about 30 percent), Macintosh (2 percent), and the archaic Bulgarian Pravets-8 (67 percent). Due to financial difficulties, very few funds have been allocated for purchase of new computers and any contributions in this field come primarily from donors. Despite all these difficulties, many Bulgarian schools are on-line and teachers and students partake in the information exchange.

Bulgaria has significant minority populations whose first language is not Bulgarian. Under the circumstances, it is very important that schools breed a public spirit of tolerance and dialogue. Traditionally, minorities have enjoyed all rights to education as Bulgarian citizens and have been well integrated in the education system. After the fall of communism in 1989, many former Eastern Bloc nations lived through a process of redefining of national identity, nation-states and citizenship that led to the eruption of conflicts and civil wars. Bulgaria constituted a fortunate exception from this pattern and the education system was entitled to some credit for preserving the national peace. Though, a significant deficiency is the lack of methods for teaching Bulgarian as a foreign language to schoolchildren who speak another language at home. An alarming symptom of alienation is the increasing dropout rate among Roma children who are of compulsory education age.

Education in Bulgaria, although fundamentally national in character, has significant foreign influences. Russian impact was most pronounced during the period of the national revival in the nineteenth century and stemmed the ideas of Slavophilism and pan-Orthodoxy. Many young Bulgarians went to pursue their education in St. Petersburg and Odessa. Immediately after the liberation from Ottoman domination in 1878, achieved with decisive help from Russia, Russian experts remained in Bulgaria to assist with the establishment of the administrative structure of the young nation-state. After the end of the World War II, Bulgaria became a satellite state of the Soviet Union and was heavily subjected to Russian influence in the sphere of culture and education. The model of the entire education system, and particularly that of higher education, was designed to emulate the Soviet education system. Russian language became a compulsory subject as early as fifth grade and intensified at every subsequent school level. The generations of Bulgarians educated under communist rule have command of Russian which provided immediate access to a much larger scope of publications. Russian was promoted as a lingua franca among professional circles of the Eastern Bloc nations. Many Bulgarians received their higher education in Soviet institutions of higher learning, particularly in the technical fields. Although, after 1989, Russian influences on Bulgarian education were on the decline.

Western European and American influences are also evident. German impact, channeled through the Bulgarian royal house which was of German dynastic descent and facilitated by German economic interests in the Balkans, was considerable during the two World Wars that Bulgaria entered as an ally of Germany. French cultural and educational influences infiltrated through the efforts of Jesuit priests in the nineteenth century and the francophone programs of the French government throughout the twentieth century. The first exposure to American educational influence began with the work of Protestant missionaries in the middle of the nineteenth century, remained in the country until the communist regime expelled them in 1945. Meanwhile, they opened some of the first nurseries in Bulgaria, as well as teacher training institutes, vocational schools, and a college in Sofia. The latter was restored in the early 1990s; despite its name, it is in fact one of the most prestigious high schools in the Bulgarian capital. The most significant embodiment of American presence in the Bulgarian education system is the American University in Blagoevgrad, which attracts students from all Balkan nations. Well-educated strata of the population normally speak at least one Western language. Until the 1970s, choices were almost evenly split between German, French and English; younger generations, especially after 1990, overwhelmingly opted for English.

A major goal of the reform of Bulgaria's education system was to bring standards in line with the European context and to harmonize the educational process with that of Western Europe. This was expected to assist the nation's accession to the European Union. In December 1999 Bulgaria was invited to begin negotiations to that effect with practical discussion that begun in March 2000 on six topics, the first two of which were "education and training" and "science and research." Of primary importance is the impact of educational programs and initiatives sponsored by international organizations: UNESCO, the Council of Europe, the European Union, the World Bank. Joint initiatives in education, such as the programs PHARE, TEMPUS, COPERNICUS in the 1990s vastly improved Bulgaria's structure and content of its education.

Preprimary & Primary Education

Preprimary and primary education in Bulgaria consists of two levels—detski yasli (nurseries) for children through the age of three and detski gradini (kindergartens) for children ages three to seven. These age limits are not absolute, since kindergartens often accept children who are two and a half years old, and elementary schools enroll six-year-olds. Attendance in both cases is voluntary and fees are charged. The nurseries are under the jurisdiction of the Ministry of Health and are not considered part of the education system.

Bulgaria's traditions in preprimary education go back 120 years. An education act in 1891 introduced compulsory kindergarten attendance in the cities. While preschool education is not a requirement, there exist impressive facilities, sufficient to enroll the entire children population in all-day kindergartens. However, attendance is on the decline. The major reason for that are the high unemployment rates and the economic difficulties encountered by many families. In 1990-1991, about 312,000 of 595,448 children ages two through seven attended kindergartens (52.4 percent). The percentages slightly differ between cities (53.13 percent), and villages (50.78 percent), and are lowest in Sofia (49.78 percent). The number of children in this age rapidly decreases as well, due to falling birth rates. This explains why relative numbers increased, and absolute enrollment in kindergartens fell. For instance, in 1998-1999 nearly 230,330, or 58 percent, of the children in this age group, attended kindergarten. In consequence to declining enrollment, preprimary education enhances the intellectual and social development of youngsters and prepares them for a smooth transition to grade school. Kindergarten attendance is socially desirable; most of the children who are not enrolled in preprimary education come from low-income families where one or both parents are unemployed.

Grades 1 through 4 comprise the first sub-level of basic education or nachalno uchilishte (elementary school). According to a 1998 amendment of the Public Education Act, children start school at the age of seven; they are supposed to have turned or are going to turn seven in the year they join first grade. Six-year-olds may be enrolled in case their physical and mental development allows for such a step, a decision left to the discretion of their parents or guardians. The curriculum for grades 1 through 4 includes eight compulsory subjects: Bulgarian language, mathematics, introductory Bulgarian history and geography, natural science, fine art, music, and physical education. Minimum comprehensive instruction includes 22-25 hours per week. The curriculum also provides for three to four hours of optional subjects per week. Primary education is completed without exam. Svidetelstvo (certificate) of primary education is issued on the basis of the grades earned in fourth grade. In 1999-2000, there were 385,000 students enrolled in elementary education.

The second sub-level of the basic school, called progimnaziya (pre-high school) covers grades 5 through 8. The curriculum at this level includes 12 compulsory subjects: Bulgarian language and literature, mathematics, history, geography, physics, chemistry, biology, fine arts, music, technical education, physical education, and one foreign language. A second foreign language may be included in the seventh grade. The minimum instruction time includes 27-30 hours per week; another four hours per week are allowed for optional subjects. A Svidetelstvo (certificate) for completed basic education is issued on the basis of the grades earned in eighth grade without a final exam. In 1999-2000, there were 357,000 students enrolled at this school level.

Secondary Education

Secondary education normally covers grades 8 through 12 and is regarded as a preparation for higher education. There exist several types of schools, usually called gymnaziya (high school). Most common is the secondary comprehensive school, which is the third and completing level of general comprehensive school, following the elementary and presecondary levels. In 1999-2000 there were 398 secondary schools. Socially more prestigious and widely preferred are the profile-oriented secondary schools, of which there are two kinds. The first one comprises secondary schools with intensive instruction in a foreign language (most often English, but also French, German, Spanish, and Italian). A peculiarity of this foreign-language gymnaziya is that admission takes place after the completion of seventh grade and is based on competitive entrance examination in mathematics and the Bulgarian language. The first year of instruction, called preparatory class, is dedicated to an in-depth study of a respective foreign language. This is followed by grades 8 through 12, which complete the general curriculum. The second kind of profile-oriented secondary schools, with entrance after eighth grade and competitive admission, are those specializing in math and science, the humanities, sports, and the arts. In 1999-2000, there were 69 foreign language, 14 sports, 15 humanities, and 34 math and science profile-oriented secondary schools.

The course of study ends with a compulsory matriculation examination, which comprises three exams: Bulgarian language and literature, social sciences and civics, and a subject corresponding to the profile of the school. Those who complete a secondary comprehensive school successfully are awarded a diploma, which qualifies them to apply to institutions of higher learning. In 1999-2000, there were 177,000 students enrolled in all secondary comprehensive schools.

Traditions in the secondary education field go more than 120 years back in history. In the 1990s, vocational education was given special attention resulting in the Vocational Education and Training Act of 1999. Secondary vocational education combines the goals of providing professional qualification with broadening the general comprehensive education of the students. There are several types of schools: tehnikum (technical school) with admission after completed eighth grade and a four-year course of instruction; technical schools with admission after completed seventh grade with intensive foreign language studies and a five-year course of instruction; secondary vocational-technical schools with admission after eighth grade and a three-year course of instruction; vocational schools with admission after sixth, seventh, and eighth grade; and vocational classes within the framework of the secondary comprehensive school. This is practiced in small settlements lacking a developed network of vocational schools. The fields and degrees of qualification are in accordance with standards established by the International Labor Organization.

Forms of instruction include daytime, evening, extramural, correspondence, individual, and self-instruction. This flexibility allows for the inclusion of adults in vocational education. Studies are completed after matriculation exams and result in a diploma, which entitles graduates to continue their education on a higher level or to enter the workforce. Statistics showed a trend towards increase in the percentage of students who pursue higher or semi-higher education after graduating from secondary vocational schools. In 1999-2000, there were 189,000 students enrolled in secondary vocational schools, six percent more than the students in secondary comprehensive schools.

Higher Education

Vische obrazovanie (higher education) is the sector of the education system that experienced most intensive growth during the 1990s, despite unfavorable economic conditions and diminishing state funds. This tendency indicates that Bulgarian society in times of economic duress and social crisis resorts to higher education as a reliable investment. The pace of reform and the changes introduced in higher education are also more considerable than those in preprimary, basic, and secondary education. Some major outcomes of this reform are the abolition of ideological subjects and content; the reshaping of study programs, curricula, and syllabi; the abolition of research institutes and ensuing unemployment among researchers; the introduction of tuition fees in public universities; the increase of the number of universities as a result of the transformation of many higher institutes into universities; and the establishment of private universities and colleges.

The total number of higher schools in Bulgaria is 88. There exist three types of higher schools: universities, specialized higher schools (academies and institutes), and independent colleges. There are 26 universities, belonging to one of the following two kinds: traditional universities with faculties of law, history, education, philosophy, economics, philology, chemistry, biology, physics, mathematics, and geography; and specialized universities of medicine, technology, agriculture, and economics. The number of specialized high schools is 15. Some of them are institutes (of technological sciences), others are academies (of fine arts, music, sport, theology, theater and cinema, and the military). Because universities and specialized high schools have an equal status, it is often said that there are altogether 41 universities. There are also 47 colleges specializing in technology, teacher-training, nursing, tourism, and telecommunications. Although, there are slightly more colleges than universities, the latter are more prestigious because of the quality of education offered and the employment possibilities after graduation. Despite the fact that most colleges exist within the structure of a university, the 'functional bridges' between them are not well constructed. Ten of the higher schools in Bulgaria are private: four of them are universities and specialized high schools and six are colleges.

Higher schools offer study programs that result in the following types of degrees: a specialist diploma awarded for completion of a three-year program; a bachelor's diploma awarded for completion of a four-year program; a master's diploma awarded for the completion of a five-year program, or one year after the bachelor's degree; doctoral degree awarded for completion of a three-year research program after the master's diploma. A necessary prerequisite for enrollment in a higher school is a diploma for completed secondary education. Otherwise, rules of admission are left to the discretion of the particular school and vary considerably, being lower in the newly established private institutions of higher learning. The most prestigious universities apply a formula, which combines results from written admission exams with grades from the high school diploma.

During the 1990s student enrollment in institutions of higher learning increased considerably. In 1988-1989, there were 160,000 students pursuing higher education. By way of comparison, the number for 1992-1993 was 192,000; in 1994-1995, about 221,000; in 1996-1997, about 263,000; and in 1999-2000, about 258,000. Taking into consideration that the country's population as a whole and the numbers of university-aged individuals is on the decline, this trend is even more pronounced. According to Popov, the main reasons for this lie in the expansion of public universities and the opening of private ones, the attraction of students from medium-sized towns to newly established university branches outside the major urban centers, the introduction of paid tuition and the subsequent lowering admission requirements for paid education, as well as the option for adult college graduates to obtain bachelor's and master's degrees in part-time, short-term university programs. This boom reached a peak in 1996-97, coinciding with the deepest financial, economic, and social crisis of the 1990s. The number of enrolled students is slightly declining, reflecting the decline of university In 1999-2000, there were 258,000 students of higher education, 57 percent of whom are women. Highest enrollment was in the economics and business programs, followed by the technological sciences. Some fields of the humanities and the social sciences, and particularly law, are also considered prestigious fields of study. An surprising fact is the large number of students enrolled in teacher training programs. Colleges experience a markedly low rate of enrollment: in 1999-2000, they had only 18,500 students. In the same year, the private higher schools had 27,500 students, or 10 percent of the total enrollment.

The faculty ranks consist of professor (full professor), docent (associate professor), assistant (assistant professor), and prepodavatel (lecturer). The total number of teaching faculty in 1999-2000 was 26,735, approximately 42 percent of which are women; there were 2,447 full professors, 19 percent of whom were women.

Higher education in Bulgaria is managed at two levels: national and institutional. The entities supervising higher education at the national level are the parliament (the National Assembly), the cabinet (Council of Ministers), and the Ministry of Education and Science. The parliament acts as the decision-making authority on the establishment, transformation, and the closing of public and private higher schools. It also annually allocates subsidies to public higher schools on the basis of the State Budget Act. The main actor in managing higher education on the national level is the Council of Ministers, which has wide-ranging prerogatives; the Ministry of Education and Science plays a more limited role. A National Evaluation and Accreditation Agency is established by the Council of Ministers as the specialized government authority for quality assessment and accreditation of higher school activities. The institutional level of management has acquired significant importance according to the principle of academic autonomy. The general assembly, the academic council, and the rector (president) are the main figures of importance.

Financing of higher education has been a most controversial issue of public discourse since 1989. Under communism, the general public was accustomed to the nearly egalitarian character of higher education, and grew to perceive it as a kind of social service. The popular expectation that the government should be the main source of funding higher education is still widespread and made it very difficult for those in power to renounce the government's function. The introduction of student paid education, parallel with the limited state funded enrollment, was met with considerable social and political resistance, despite the apparent need for additional sources of university revenue. The government continues to sponsor a limited number of students enrolled through the system of darzhavna porachka (state quota), a quantity of specialists perceived as necessary to sustain the continuity of manpower in every professional field. These spots are highly contested in the enrollment process and only the best candidates qualify for these positions. In addition, the schools of higher learning admit a great number of students who pay for their own tuition.

Administration, Finance, & Educational Research

Under the communist regime, education was strongly centralized and placed entirely under the control of the state and the communist party. Since the early 1990s, an on-going process of decentralization has brought about considerable changes in this respect. Administration of basic and secondary education is effected on four levels: national, regional, municipal and school level.

The Ministry of Education and Science is a specialized body of the Council of Ministers for the administration of education on the national level. It determines and carries out the government policy in the field of education. The ministry plans activities related to the development of education in long-term programs and operation plans, organizes and coordinates the work of all administrative units and education establishments, and exercises control over all levels and types of schools in the country, including kindergartens and private schools. It interacts with other ministries and state departments in connection with the administration of schools which train specialists in respective spheres (e.g., engineering, mining, agriculture) and also conducts international activities in the field of education. There are 28 school inspectorates set up on a regional level which act as specialized territorial bodies of the Ministry of Education and Science. They exercise planning, coordination, and control functions over the work of the schools on the territory of a particular region. The staff of a regional inspectorate comprises experts in school administration as well as specialists in various academic subjects.

The municipal education bodies have a broad range of prerogatives to further educational policies on the territory of a city. According to article 36 of the Public Education Act, municipalities are responsible for the compulsory school education of children up to the age of 16; the health care and safety of schools and kindergartens; the funds for maintenance, construction, furnishing, and repair of schools, kindergartens, and servicing units; the funds for meeting the annual cost per schoolchild, remuneration of teachers, as well as for financial back-up of all sections of the syllabus of municipal kindergartens, schools, and servicing units; the appropriate conditions in canteens, boarding houses, recreation and sports facilities; for transportation for preschoolers, schoolchildren, and teachers; and for scholarships and grants for students. This makes the municipal level a very important part of the system of the administration of education. The school is a legal entity. During the 1990s, its autonomy in pedagogical, organizational, methodological, administrative, and managerial matters had been considerably extended. Schools are headed by a director (principal), who continues to teach on a reduced workload and has the status of a head-teacher. They are not purely a manager. The director and the pedagogicheski savet (pedagogical council) are the administrative bodies of the school. Since 1995-1996, an old Bulgarian tradition of establishing boards of school trustees as a link with the community has been restored. The boards of trustees comprise the school principal, teachers, parents, public figures, businessmen, among others. The National Assembly discussed a special law to regulate the functions of the school boards of trustees. Most schools also have a parents council, a students council, and a class councils which act in accordance with the age of the student body and the administrative needs of the school.

Education is funded from two major sources: the state budget through the Ministry of Education and Science and the local budgets through the municipal administrations. Funding is appropriated according to the level of education and type of school. Other sources of funding, such as donations and contributions from private companies and government entities are permitted by law. The government does not subsidize private schools. The relative share of expenditures for education in the gross domestic project has been steadily on the decline since the beginning of the 1990s. It reached 3.20 percent in 1998, which is half from the relative weight of educational expenses in 1992 (6.06 percent). Though, there was a modest increase of capital investment in education, for instance investment in repairs of existing school facilities and building new ones. The chronic deficit in the education budget made the practice of distributing free textbooks impossible to all students from first to eighth grade. Distribution of textbooks was then abandoned. Scientific research in the field of education is carried out at the Institute for Education as well as some other higher education institutions, universities, and the Bulgarian Academy of Sciences.

Nonformal Education

Under communism, formal classroom education was complemented by an extensive system of children and youth organizations and establishments. Since 1989, non-formal education has been gravely destabilized, owing this to ideological considerations, acute shortage of material and financial resources, and a lack of a strategy on the part of the education administration. There exists municipal children's centers, sports, art, and music schools, young technicians and agrobiologists labs, and centers for works with children, in Bulgaria. However, their number and capacity is considerably lower than the actual needs. There is an acute shortage of summer schools and activities for schoolchildren.

Legislation adopted in 1998 specified that distance education is a legitimate mode of study for obtaining a university degree. Approximately 85,000 students of higher education are enrolled in extra-mural courses. These students constitute a significant potential market for high quality distance education programs. Distance learning is institutionalized and operates within the framework of the National Center for Distance Education, established in 1994 by the Ministry of Education and Science. This is a consortium of 20 universities, with representatives of the Ministry of Education and Science, the Bulgarian National Television, and the Bulgarian National Radio. It is chaired by a representative of the PHARE program for Bulgaria. The role of the center includes development of distance learning strategy, research, development of materials, dissemination of information, promotion of contacts with external entities, and co-ordination of the implementation of the PHARE Multi-Country Program for Distance Learning.

Teaching Profession

A total of 68,482 teachers taught in all Bulgarian schools in 1999-2000: 23,820 in elementary schools (first through fourth grade); 32,479 in presecondary schools (fifth through eighth grade); and 12,283 in secondary schools (ninth through twelfth grade). Women constituted 82 percent of the overall number of teachers, which indicated a marked feminization of the teaching profession. The percentage of the teachers who possessed the necessary formal qualifications for teaching at a particular school level was higher than 98 percent. Elementary school teachers are required to have a specialist or a bachelor degree in the field nachalna uchilishtna pedagodika (elementary school pedagogy). There are six schools of higher learning in the country that train elementary school teachers.

There was a marked increase during the 1990s of the numbers of teachers at this level who hold advanced university degrees. In 1999-2000, some 14,948 (63 percent) of all elementary school teachers held higher than a specialist degree. The student-teacher ratio, which in the 1990s fluctuated between 14:1 and 18:1, is much higher in the cities. In the remote countryside it may drop as low as 6:1, but still the prevalent policy is to keep the schools open and hire teachers, thus preventing villages from depopulation.

Teachers at the presecondary and secondary level are required to have professional qualification in the subject(s) they teach accompanied by pedagogical qualification. A specialist, bachelor, or a master degree can establish these. There are specific demands for hiring teachers in vocation schools, including previous practice and specific training in the subject they teach. In 1999-2000, some 23,132 teachers (71 percent) at the pre-secondary school held bachelor and master degrees. The student-teacher ratio at this level is thirteen-fourteen. During the same year, the number of secondary school teachers holding bachelor and master degrees was 11,652 (94 percent) and the student-teacher ratio was 16:1 or 17:1. There is a well-established system of continuing education, and teachers are motivated to improve their qualifications by higher salaries.

Despite the fact that teachers' salaries had been relatively low for many years, the education system of Bulgaria managed under the stress of acute economic crisis to maintain professional integrity and prestige of the profession, and preserve the continuity of teaching. The overall number of teachers increased slightly in comparison with previous years and so did the numbers of students enrolled in teacher-training programs. There was a minimal decrease of the number of elementary school teachers, which corresponds to the demographic decline. There was a marked trend of improving teachers' qualifications.

Summary

Bulgaria has established democratic traditions in modern secular education, which date back to the middle of the nineteenth century. During the 1990s, the education system was subject to a thorough transformation running parallel to the nation's post-communist transition. The success of the education reform will shape the future of the nation in profound ways. Schools are expected to be an agent of democratization, grooming generations with better skills for critical thinking and public discourse. Transformed and modernized education is regarded as a vehicle of Bulgaria's integration in the European context.

The educational reform is an on-going process and more changes are bound to occur in the foreseeable future, while some of those that have been introduced have not come to fruition. Private schools at all levels, which have a considerably lower enrollment than the public ones and often face unfavorable attitudes, are yet to prove themselves as a viable alternative in education. Higher education is disconnected from secondary education; there is no system of pre-university establishments. The education system does not correspond to the needs of the labor market. Because of the shrinking of the latter, the schools overproduce specialists. The worst problem is the general lack of facilities to meet the challenges of a technology-based society and foster the qualifications that the nation needs in a high-tech environment.

Despite all difficulties, in the 1990s Bulgaria sustained the integrity of its education system and introduced considerable improvements. This positive trend is bound to continue because Bulgarian national psyche relates education closely to the ideas of progress and personal betterment.

Bibliography

Avramova, Bistra. Education in Bulgaria. Sofia: Sofia Press, 1971.

"The Balkans—Ethnic and Cultural Crossroads: Educational and Cultural Aspects: Sofia" (Bulgaria), 27-30 May 1995. Strasbourg: Council of Europe Publishing, 1997.

Bulgaria. Ministry of Education, Science and Technologies. Institute for Education and Science. Development of Education in 1994-1996: National Report of the Republic of Bulgaria. Sofia: 1996.

Georgeoff, John P. The Social Education of Bulgarian Youth. Minneapolis: University of Minnesota Press, 1968.

Heath, Roy E. The Establishment of the Bulgarian Ministry of Public Instruction and its Role in the Development of Modern Bulgaria, 1878-1885. New York and London: Garland Publishing, 1978.

Kyuchkov, Hristo. Romany Children and Their Preparation for Literacy: a Case Study. Tilburg, the Netherlands: Tilburg University Press, 1995.

Makariev, Plamen. Interkulturnoto obrazovanie v Bulgaria: ideali I realnost. Sofia: AKSES/IPIS, 1999.

Ministry of Education and Science. Administration. Governments Priorities. Legislations. Educational Institutions. Networks and Projects. Publications. Statistics. Available from http://www.minedu.govern.bg/.

Ministry of Education and Science. Publications. National Education Strategy for Information and Communication Technologies (abstract), 1998. Available from http://www.minedu.govrn.bg/english.html.

Nikolov, Ivan P. "Tempus I in Bulgaria: Institutional Impact of the European Community assistance Program in Higher Education During 1990-1994." Ph.D. diss., Southern Illinois University at Carbondale, 1996.

Obshto I profesionalno obrazovanie: 1999/2000 uchebna godina. Sofia: Natsionalen statisticheski institut, 2000.

Obrazovanie za vsichki: natsionalna otsenka—2000 g. Sofia: Ministerstvo na obrazovanieto i naukata - Natsionalen institut po obrazovanie, 1999.

Popov, Nikolay. A Review of the System of Higher Education in Bulgaria. Budapest, Hungary; New Haven, CT: Civic Education Project, 2000.

Republic of Bulgaria: Laws for Education. Sofia: St. Kliment Ohridski University Press, 1999.

Russell, William F. Schools in Bulgaria: With Special Reference to the Influence of the Agrarian Party on Elementary and Secondary Education. New York City: Teachers' College, Columbia University, 1924.

Slantcheva, Snejana. "The introduction of the bachelor-master-doctor degree system in Bulgarian universities: a case study." Ph.D. diss., University of Massachusetts at Amherst, 2000.

Stefanov, Michael. New Technologies, Labour Organization, Qualification, Structures and Vocational Training in Bulgaria. Berlin: European Centre for the Development of Vocational Training, 1990.

Tzokova, Diana, and Zlatko Dobrev. "Bulgaria: Gypsy Children and Changing Social Concepts of Special Education." In Inclusive Education, edited by Harry Daniels and Philip Garner; series editor: Crispin Jones. London: Kogan Page; Sterling, VA: Stylus Publishing, 1999.

Vische obrazovanie: 1999/2000 uchebna godina. Sofia: Natsionalen statisticenski institut, 2000.

The World Bank Group. World Development Series. Bulgaria—Education Modernization Project, 7 August 2000. Available from http://www-wds.worldbank.org/.

—Petya Nitzova

BULGARIA

Republic of Bulgaria

Republika Bulgaria

COUNTRY OVERVIEW

LOCATION AND SIZE.

The Republic of Bulgaria shares its borders with 5 other countries in southeastern Europe and has a coastline on the Black Sea. Romania lies to the north, Turkey to the southeast, Greece to the south, the former Yugoslav Republic of Macedonia to the southwest, and Serbia (with Montenegro part of the Federal Republic of Yugoslavia) to the west. The eastern coastline on the Black Sea is 354 kilometers (220 miles) long, and the total area of the country is 110,910 square kilometers (42,823 square miles), making it slightly larger than the state of Tennessee. The capital, Sofia, is situated at the foot of the Balkan and Vitosha Mountains in western Bulgaria; other principal cities are Plovdiv in south-central Bulgaria, the coastal cities of Varna and Burgas, and Ruse on the Danube River.

POPULATION.

The Bulgarian population recorded in the 1985 census was 8,948,649, but by July 2000, largely due to emigration , the population was estimated to have decreased to 7,796,694. In 2000, the birth rate stood at 8.06 and the death rate at 14.63 per 1,000 population, but this downward trend should be halted as the economy improves, emigrants return, and the country joins the European Union (EU) in 2007. By 2010, the population is projected to reach 7.26 million. Population density is about 70 persons per square kilometer (181 per square mile).

Ethnic Bulgarians account for 85 percent of the population, Turks 9 percent, and Roma (Gypsies) 3.7 percent. Other small, miscellaneous groups round out the total. Bulgarian, a Slavic language with a written tradition da ting back to the 9th century, is the principal language, with other languages spoken corresponding to the ethnic breakdown. Religions include Orthodox Christian (83 percent), Muslim (13 percent), and Roman Catholic (1.5 percent), with Jewish, Protestant, and other groups making up the rest. The population of Bulgaria is aging, with 16 percent below the age of 14 and 16 percent older than 65. The median age is expected to increase from 37.5 years in 1995 to nearly 41 in 2005. A majority of the population, 69 percent, lives in urban areas, and Sofia and its suburbs are home to the largest number.

Prior to 1989, the government encouraged population growth by providing maternity benefits, free health care, affordable pre-school day care, and reasonably adequate pensions. Emigration was negligible due to government restrictions on travel. Since then, however, deteriorating living standards, the opening of the economy, and freedom to travel have generated emigration, mostly of young people, to Western Europe and North America, and of ethnic Turks to their neighboring home-land. Many of the latter, however, return or maintain households in both countries.

OVERVIEW OF ECONOMY

Until 1944, Bulgaria was a predominantly agricultural country. Under the socialist regime introduced after World War II, industry and infrastructure were nationalized and operated in line with central government economic planning. Most farming was collectivized (organized into government-run units), and the development of heavy industry was made a priority. From the 1970s until 1989, Bulgaria enjoyed one of the most prosperous economies in Eastern Europe, with good health, education, and living standards. Considered by many to be the "Red Silicon Valley" (denoting its role as the communist equivalent of the U.S. technology breeding ground), it became the sixth nation to fly in space.

The socialist economy, however, was dependent on the imports of subsidized Soviet fuels (some re-exported to obtain hard currency ) and the extensive but straightforward Soviet (and other socialist) markets for most exports of machinery, computers and peripherals, clothing, tobacco, beverages, and food. With the disintegration of the Soviet Union in 1989, the Yugoslav wars of the 1990s, economic sanctions , and the Persian Gulf crisis of 1990-91, Bulgaria lost many of its markets, its cheap energy sources, and hard currency revenues. As a result, living standards declined significantly in the 1990s. Bulgaria has become a poor European country and, like most its neighbors and near-neighbors, except Poland and Slovenia, it is a long way from improving on its 1989 real level of output. The Yugoslav wars interrupted both road and river (the Danube) trade routes to Western Europe and hurt the economy, but the Stability Pact, a regional initiative for economic development, democratization, and security devised in the late 1990s and backed by the United States and the EU, should facilitate future recovery.

Despite these many problems, Bulgaria earned a reputation for economic and political stability during the 1990s. The government followed a slow but sure path towards a market economy and expanded its commercial ties with Western Europe and the United States. TheEuropean Union (EU) currently accounts for 52 percent of its exports and nearly half of its imports, and the United States is among the top foreign investors. Bulgaria aspires to join the North Atlantic Treaty Organization (NATO) in the first decade of the 21st century and is on course to join the EU.

In 1997, the government imposed tight monetary policies and strict financial discipline, stabilizing the banking system and cutting government spending. Triple-digit inflation gave way to moderate price increases, but growth and foreign investment have remained low. Ongoing market reforms include privatization or liquida tion of state-owned enterprises and liberalization of agriculture and the creation of a land market. Privatization is seen as the only efficient way to restructure the economy, create jobs, and introduce new technology. It is also crucial for attracting foreign investment, stopping the slide in output, increasing exports, and generating cash for current needs. But the government has been criticized for relying heavily on controversial management-employee buyouts for smaller enterprises. New social policy measures include reforming social insurance and addressing the issues of crime and corruption.

The external debt —estimated at over $10.4 billion in 2000 and accumulated as a result of foreign trade deficits throughout the 1980s—is considered high but not unduly so. Although the balance of payments situation had stabilized by 2000, the debt has caused a negative long-term impact on economic growth and living standards. Another problem arises from the depreciation of the euro (the common currency of the EU), since most revenue is measured in euros while the debt is calculated mostly in dollars. There are attempts to encourage debt-for- equity swaps (transforming bank debt into foreign direct investment ) which, along with the expected growth over the next few years, might alleviate the debt burden.

POLITICS, GOVERNMENT, AND TAXATION

In 1990, communist rule in Bulgaria gave way to a multiparty parliamentary democracy, with executive power vested in the Council of Ministers. Although political life has been active, Bulgaria has sound policies regarding minorities and is regarded as an oasis of stability in the tinderbox of the Balkans. In the 1997 parliamentary elections, the United Democratic Forces, an alliance of the reformist Union of Democratic Forces (SDS) and the People's Union, won 137 of 240 National Assembly seats. The Bulgarian Socialist Party (BSP), reformed communists, was reduced to 58 seats, which reflected the BSP responsibility for the 1996-97 financial meltdown, from which the SDS was perceived as a deliverer. The remaining seats were shared between the Movement for Rights and Freedoms (MRF); a centrist, predominantly ethnic Turkish party; the Euroleft; and the Business Block. The Bulgarian Agrarian People's Union and the Democratic Party form the People's Union coalition. The local elections in 1999 gave the BSP control over most local governments and signaled decreasing SDS popularity due to persistent economic hardship and corruption charges. All major parties currently support market reforms and membership in the EU and NATO. During the 1999 Kosovo crisis, the government cooperated fully with NATO.

The government aims to privatize all state-owned firms except for utilities, strategic railroads, natural gas, postal services, education and sciences, environmental protection, geology, and cartography. The law requires that the state retain at least a 51 percent interest in merchant shipping and passenger fleets, major ports and airports, transport, and highway construction companies. By June 1999, about 40 percent of state enterprises had been privatized, while the public sector accounted for 36 percent of the GDP. The private sector contributed 25-30 percent of the GDP in 1995; 35-40 percent in 1996; approximately 65 percent in 1997 and 1998, and 64 percent in 1999, and is expected to increase further.

Privatization processes were particularly dynamic in 1999 and 2000, with priority given to tourism, food processing, agriculture, heavy industry, engineering, textiles, and construction materials. The privatization program is being carried out through capital market offerings, mass privatization, and cash deals. The offerings on the capital market (through corporate stocks and bonds sales) are insignificant, and the local stock exchange is still in its infancy. In the mass privatization program, all citizens and company employees were made eligible to receive free vouchers for company (or privatization fund) shares. More significant for foreign investors is cash privatization, which allows investors to buy smaller enterprises from central government ministries, larger ones from the privatization agency, or municipal assets from local government. The privatization agency hires foreign consultancy firms to assess the value of important enterprises and to advise on marketing, but the process has often been described as slow and challenging. Potential investors have been frustrated by the difficulties of investing, and others are unhappy with inflexible procedures. Complex criteria for determining which buyers are eligible to invest has caused concern about corruption.

Taxes are a major source of government revenue. Personal income tax rates are progressive, from 20 percent to 40 percent. The profit tax rate is 20 percent for large firms and 15 percent for small firms. Value-added tax (VAT) is levied at a rate of 20 percent. All firms pay 10 percent on profits in municipal tax. Investors in high unemployment areas get a 10 percent reduction on government profit tax. The tax system is still perceived by many as unfriendly to business, and tax cuts are being debated within the government.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Bulgaria's transportation infrastructure includes railroads, with 3,979 kilometers (2,472 miles) of track in use, and about 36,724 kilometers (22,819 miles) of paved roads, although some of these are unsatisfactory. There are only about 250 kilometers (160 miles) of 4-lane highway. Back in the 1980s, Somat, the state trucking company, was among the largest in Europe. However, political troubles involving Serbia made the road route to Western Europe across Serbian territory problematic. The result was greater traffic via Romania across the only existing bridge with a ferry crossing on the Danube. Bulgaria recognized the need for a second bridge, but mixed signals from Romania have held up the project. However, the reopening of traffic through Yugoslavia following the ousting of Yugoslav leader Slobodan Milosevic in 2000 may rule out bridge construction.

Bulgaria has many highway projects under construction, notably portions of the Trans-European motor-way connecting Budapest, Hungary, with Athens, Greece, via Sofia, and with Istanbul, Turkey, via eastern Bulgaria. International investors and the state budget are the main sources for financing road network improvements. Completion and modernization of portions of the Trakia, Cherno More, and Hemus expressways are being given out to contractors, and there are plans for a north-south tunnel under Mount Shipka.

The Danube River is an important artery, and much of the freight traffic uses the Black Sea. There is a sizeable merchant marine fleet operated by the Navibulgar shipping company. Two major seaports and east-west transport corridor gateways, in Varna and Burgas, are planned for rehabilitation. Balkan, the national airline, serves major cities and international destinations, although it has suffered after its recent sale to the Israeli Zeevi group in a questionable privatization deal. Smaller airlines also operate, and 3 major international airports, in Sofia, Varna, and Burgas, are currently undergoing modernization. There are 129 airports with paved runways.

Bulgaria's energy sector is state-owned and derives most of its output from thermal plants burning fossil fuels, mostly coal and natural gas (52 percent), nuclear plants (41 percent), and hydroelectric facilities (7 percent). Newer units of the Kozloduy nuclear plant will be upgraded under a contract between the National Electric Company and the U.S. company, Westinghouse. Bulgaria exports energy, primarily to Turkey and Yugoslavia. The country produced 38.423 billion kilowatt hours (kWh) of energy in 1998, a slight decrease from the previous year, and electricity consumption stood at 35.493 billion kWh. Studies to determine the feasibility of oil pipelines carrying oil from the Caspian Sea through Bulgaria to the Greek Aegean Sea coast or the Albanian Adriatic Sea coast could bring future opportunities for expansion. There are extensive networks of pipelines carrying natural gas throughout the country.

Bulgaria has the highest penetration of telephone service in Eastern Europe, at 38.47 percent. The network is operated by the state-owned Bulgarian Telecommunications Company (BTC). In 1998, it replaced antiquated facilities with up-to-date equipment and connected major cities with digital exchanges, satellite ground stations, fiber-optic lines, and digital microwave networks in a $300 million project funded by international investors. Residential telephone development will reach EU standards by 2008. There is analog cellular telephone network operated by the Mobifon company, created as a joint venture between Cable & Wireless (49 percent), BTC (39 percent), and the Bulgarian company Radio Electronic Systems (12 percent). The Bulgarian company, Mobiltel, operates a digital cellular telephone network,

and the country has many small, unregulated, Internet service providers. Privatization of 51 percent of the BTC, worth more than $500 million, will be the largest privatization deal in Bulgaria, and was being prepared in 2001, while the Greek telecommunications company, OTE, was granted a license for a second national digital cellular phone network.

ECONOMIC SECTORS

Since the late 1980s, manufacturing, mining, transport, construction, and agriculture have been declining in Bulgaria, while the service sector has been growing, particularly in retail business and finance. Energy, communications, and tourism have also become high-profile if turbulent industries. The World Factbook estimated that by 2000 agriculture accounted for 15 percent of gross domestic product (GDP), industry 29 percent, and services 56 percent. Estimates for the division of the labor force were from 1998, when 26 percent of the labor force was employed by the agriculture sector, 31 percent by the industry sector, and 43 percent by the services sector.

Much of Bulgaria's earlier economic strength lay in heavy industry powered, until the early 1990s, by subsidized energy from the Soviet Union. With the collapse of centrally planned Eastern European economies, manufacturing suffered a downturn. Major state-owned chemical, oil-refining, and metallurgical plants were targeted for privatization and examined to determine whether they could compete effectively in international markets. The largest privatization deal in heavy industry was the sale of the Sodi Devnia chemical plant to the Belgian company, Solvey, in 1999 for $160 million. Many other major assets, including oil refineries and chemical, metallurgical, and cement plants were privatized, while some were reduced to a shambles.

Food processing, textiles and apparel, and other consumer goods manufacturers have performed comparatively better, often attracting investment from renowned companies such as Kraft Jacobs Suchard or Danone. Future growth looks probable in light industry, led by electronics, textiles, and food processing. A small percentage of new private companies are involved in manufacturing. Private sector growth is greatest in the construction and food industries, maintenance and repair of electronic tools and equipment, household appliances, and automobiles.

AGRICULTURE

Bulgaria is renowned for sheep's milk cheese, oriental tobacco, wine, rose attar (used in perfumery), vegetables, fruit, medicinal herbs, and, particularly, natural yogurt. The temperate climate, abundant arable land, and soil conditions support the farming of both livestock and crops (grains, oil seeds, sugar beets, vegetables, grapes, fruit), but the country was affected by drought in the late 1990s and into 2000. Tobacco is among the most important of Bulgaria's crops, contributing nearly 20 percent to the value of agricultural goods. The principal timber areas are in the Rila, Rhodope, and Balkan Mountains. The fishing industry, which in the 1980s operated a large ocean fleet, is currently depressed. All told, the agricultural sector was estimated to account for 21 percent of the GDP in 1999 and to employ 26 percent of the workforce. Although estimations for the labor force were not available, the percentage of the GDP the sector contributed dropped slightly by 2000 to 15 percent.

Although historically a surplus food producer, Bulgarian agriculture was facing a downturn at the turn of the century. Cropland, livestock population, and yields were declining (limited use of fertilizers, however, has led to cleaner rivers and sea water). Animal feed is imported and its shortage has led to distress slaughtering, the killing of livestock in the face of a shortage of feed. The price of agricultural goods is not rising in line with inflation. Imported subsidized vegetables, fruit, dairy products, and meat from the EU adversely affect local producers. Restitution of collective farmland to private owners has been complicated and considerable collective farm assets were lost in the process. New private holdings are too small and can only be serviced with technical equipment or irrigated if their owners band together, but such efforts are proving slow to develop.

Price liberalization should encourage more output, especially as income gradually rises. Agriculture has the potential to make Bulgaria again basically self-sufficient in grains, and prospects are excellent for further increases in hard currency earnings from wine and dairy products, particularly cheese.

INDUSTRY

Before 1989, heavy industry dominated the Bulgarian economy. Metallurgy was largely dependent on iron ore imports, while locally mined copper, zinc, and lead ores were smelted in Bulgaria. The chemical industry produced fuels, plastics, rubbers, soda ash, and fertilizers. Engineering was well developed, especially in the production of electrical equipment, electric and motor trucks, heavy machinery, machine tools, electronics, and shipbuilding. Since the transition to a market economy, with a few exceptions that have attracted major foreign investment or serve sizeable international demand, the remaining heavy industry companies have struggled under management-employee privatization schemes. By 1999 industry contributed 29 percent to the GDP and employed 31 percent of the workforce. More recent labor force estimations were not available, but the percentage of GDP the sector contributed by 2000 remained the same.

Computer and software industries grew spectacularly in the 1980s, but, since then, many hi-tech players have been severely hit. DZU, a modern data storage equipment manufacturer in 1989, later leased out its production facilities to dubious firms that made Bulgaria the world's second largest producer of pirated compact discs (CDs). A government crackdown then all but ruined DZU, whose chances of survival currently lie with Hungary's Videoton, which acquired it for a nominal price. At best, it will function as a cheap assembly plant, but other companies will not even be this lucky. Bulgaria lost more than 50,000 computer programmers and engineers to developed countries over the 1990s, and this drain on a skilled workforce showed no sign of slowing down.

Textiles, the oldest industry in Bulgaria, together with apparel, leather goods, and footwear manufacturers, use largely domestic raw materials. The manufacture of building materials—cement, bricks, and glass—is well established. Pharmaceuticals and beauty products, food processing, including wine and other beverages, and tobacco processing, were once major revenue sources and show prospects for future growth.

Industries whose market prospects show promise in the 21st century include the manufacture of electrical equipment; telecommunications equipment and services; computers, software, and information technology; medical equipment; automotive parts and service equipment; agricultural equipment; building materials; chemicals; and, to some extent, metallurgy. All these enterprises, however, require massive restructuring and investment for their revitalization.

SERVICES

The service sector, generating approximately half of Bulgaria's GDP in 1999 and employing 43 percent of the workforce, continues to experience the highest growth of any sector. Most private sector activity involves some form of trade or retail, and financial services such as insurance and lending, health-care services, and tourism are well regarded by private companies.

FINANCIAL SERVICES.

With the breakup of the rigid socialist banking system, the 1990s witnessed expansion of the banking and financial services sector. In 1996, however, many state-owned and some private banks collapsed under the burden of bad debts accumulated by state factories that had become obsolete and by the now infamous "credit millionaires." In 1997, the government focused on achieving stabilization and financial discipline, forcing the banks to avoid new lending and to maintain very high liquidity rates (a measure of how much cash is kept on hand). Bulgaria's low inflation is accompanied by low interest rates, but the level of lending is a third of that in most central European countries and is a major barrier to investment. The economy is heavily reliant on cash payments, which is detrimental to efficiency and conducive to corruption and tax evasion. Savings have been declining since 1999 due to generally low income levels.

The government is privatizing remaining state banks, and there were plans to sell in 2001 the largest, Bulbank, to a consortium made up of UniCredito (Italy) and Allianz (Germany), and the Bulgarian State Savings Bank. The large Post Bank was sold in 1998 to a consortium of Greek banks and AIG (U.S.), which also bought a stake in the United Bulgarian Bank in 1999. Most hard-won loans are now going to private companies. Consumer credit is developing, although slowly, with banks actively encouraging car and home loans to the tune of $400 million. Credit card companies have also started operations in this formerly virgin market.

TOURISM.

Tourism plays a significant but not crucial role in the economy. While its competitors, Spain, Greece, and Turkey, have the advantage of aggressive and expensive marketing campaigns and decades of exposure to the market, Bulgaria has been unable to capitalize on its popular image as a land with a rich folklore tradition. The country offers extensive beach resorts along the Black Sea coast, several alpine skiing resorts in the Vitosha, Rila, Pirin, and Rhodope Mountains, and natural mineral water health spas. Nevertheless, the number of Western tourists fell by a third between 1994 and 1996, and the total revenue from the tourist industry in 1996 was $669 million. Attracted by low prices, cultural similarities, the lack of visa formalities, and a Russian-friendly population, former Soviet nationals spent 130 percent more overnight stays in Bulgaria in 1996 than in 1985, and 63 percent more than in 1993. Former East Germans are also frequent visitors. In 1996, overnight stays by Russians and Germans were around 2 million each, but the number of British and Scandinavian visitors is low. Poles, Czechs, Slovaks and Hungarians, among the top tourists to Bulgaria in the 1980s, now prefer other destinations. Foreign-acquired tourist hotels on the coast are mainly Russian-owned, while others have been leased to tour operators such as Germany's Neck-ermann who carry out renovation. However, it is 5-star business hotels that most attract foreign investors.

RETAIL.

Growing quickly during the 1990s, the retail sector was energized by the privatization of state and municipality-owned stores, the emergence of many small private firms, and the import of cheap foreign consumer goods. Major foreign retailers, such as the German Metro, the Turkish Koc Holding, and others from Austria and France, began developing a network of large hypermarkets. The choice of goods has widened impressively, but low-income Bulgarians are generally reluctant or unable to pay more for better-looking products, often leaving consumers reliant on traditional domestic suppliers. The lower price of subsidized agricultural goods from the EU make them popular with buyers but detrimental to local producers. Direct and network marketing, which became popular in Eastern Europe after Oriflame (Sweden) made a success of it, is taking root, but only gradually, due to low levels of disposable income .

INTERNATIONAL TRADE

As a consequence of the foreign debt incurred in the late 1980s, Bulgaria suffered from declining markets and negative trade balances during the early 1990s. Although dependent on imports as heavily as ever, Bulgaria showed improvement after 1994 as the lev weakened, making exports more affordable in foreign markets; trade with former Soviet republics was revived, and trade with the EU increased. However, after 1997, the Yugoslav embargo , together with the government's restrictive policies aimed at financial stabilization,

brought a downturn in the balance of trade. In 1998, exports of goods stood at $4.293 billion and imports at $4.609 billion, generating a current account deficit of $316 million. This trade deficit mushroomed to $1.5 billion in 1999, when Bulgaria imported $5.3 billion in goods while exporting just $3.8 billion.

An accumulating trade deficit would badly affect Bulgaria's ability to meet its financial obligations in the future, but June 2000 was the tenth month in succession to see an increase in exports. Exports for that month reached $393.6 million, an increase of 21.8 percent over 1999, attributed to the recovery of EU economies in general and the rise in the international price of Bulgarian exports. Exports to the United Kingdom (UK) rose by 40 percent, due to the strong pound against the weak euro, which is linked to the lev. Export to other Organization for Economic Cooperation and Development (OECD) countries rose by almost 45 percent, with most going to Turkey. Exports to Balkan countries, mainly Serbia and Macedonia, boomed after the Kosovo war in 1999, but those to other member countries of the Central European Free Trade Agreement (CEFTA) rose by less than 6 percent and those to the former Soviet Union fell by 17 percent, with exports to Russia falling by one-third.

Imports increased by 23 percent over the previous year, to $511.2 million in June 2000. Over 50 percent of the rise was due to higher oil prices. Imports of industrial raw materials rose by more than 8 percent and imports associated with the recovering metallurgical sector grew, while those required by the food sector fell. Investment also rose in 2000, but the greatest growth, 56 percent, was in energy, mainly imported from Russia. The EU is now the main supplier of consumer and investment goods to Bulgaria. Imports from Balkan countries expanded impressively a year after the Kosovo war.

A fairly active trade-show calendar attracts firms from many countries. Major export commodities included textiles, clothing and footwear; base metals and metal products; minerals and fuels; food, beverages, and tobacco; machinery and equipment; chemicals and plastics; furniture and household appliances. Italy accounted for 14 percent of exports in 1998. Germany (10 percent), Greece (9 percent), Turkey (8 percent), and Russia (5 percent) were other major partners. Together, EU countries accounted for 52 percent of exports.

Major import commodities included fuels, minerals, and raw materials; metals and ores; textiles and apparel; machinery and equipment; automobiles; chemicals and plastics; and food. Major import partners were Russia, accounting for more than 20 percent of all imports in 1998, Germany (15 percent), Italy (9 percent), Greece (6 percent), France (5 percent), and the United States (4 percent). Together, EU countries accounted for more than 48 percent of imports.

MONEY

The Bulgarian National Bank (BNB) is the bank of issue . It controls government funds and state-owned enterprises. All banks were nationalized in 1947, but since 1990, private banks have been established and international banks allowed to enter the market. The banking sector has been consolidated, and complete privatization of the remaining state-owned commercial banks was expected by 2001.

The Bulgarian currency plunged dramatically in late 1996 and early 1997, reaching a low of approximately 3,000 leva per US$1. Many banks that had extended loans to failing concerns, both state-owned and private, were forced into insolvency. By early 1997, most banking institutions were bankrupt or had closed doors to depositors. The new government that took office in May of 1997 committed itself to stringent financial and structural policies for dealing with this drastic situation and received the encouragement of backing from international financial institutions.

Since July 1997, as required by the International Monetary Fund (IMF), the Bulgarian government has been operating under the control of a currency board . This body rules that the BNB must hold hard currency reserves in leva to cover circulation and banking reserves. Further, the currency board dictates that the BNB cannot refinance commercial banks except in an emergency and restricts the government's freedom to take on new financial liabilities or provide sovereign guarantees. The lev was tied to the German mark and later to the euro at a fixed rate, and in 1999 the currency was redenominated (new bills and coins were issued and the exchange rate was fixed at 1 lev to 1 German mark).

Under IMF conditions for strict financial discipline, the government was pledged to close loss-making enterprises and speed privatization, bank reform, and restructuring. It issued an isolation list of loss-making state enterprises, that is, companies denied access to commercial

credit unless they privatize. These accounted for half of the public sector, but by 1999 the government succeeded in privatizing, or beginning liquidation of, all such companies. In the early 1990s, there were 30-40 virtually unregulated stock markets in Bulgaria, most of whose listed firms turned out to be dealing in pyramid schemes . A national stock exchange opened in October 1997, but daily turnover has seldom been more than $200,000, and rarely exceeded $1 million, even in 1998.

POVERTY AND WEALTH

Before 1989, Bulgaria was arguably a land of economic equality. Almost no private initiative was allowed, but the vast majority of the population was employed by the state, and large government funds were allocated to free health care, free higher education, maternity and disability benefits, and pensions. Most Bulgarians owned their houses, and many had small country "villas" and motor cars. Traditionally, even the poorest Bulgarians, the ethnic Roma, held jobs, received social security payments, and enjoyed a decent standard of living, particularly in rural areas. The only exceptions to this modest yet guaranteed standard of living were the nomenklatura and the informal economy players, whose privileges inflamed discontent among the population.

The market reforms of the 1990s created both new poverty and new wealth. Unemployment, hitherto almost unknown, skyrocketed, inflation all but wiped out most social benefits, and the cooperative farms that were the livelihood of many formerly landless villagers were disbanded. Many entrepreneurs, corrupt politicians and officials, and mobsters amassed spectacular fortunes, which most people resented. Restitution of urban real estate, and particularly of farmland and woodland, was controversial and failed to generate much wealth. Mass privatization also failed in this respect.

For all its problems, Bulgaria was in 1995 still more egalitarian than neighboring Greece or the wealthy United States. The poorest 20 percent were responsible for 8.5 percent of the nation's consumption (compared to 7.5 percent in Greece and 5.2 percent in the United

States), while the wealthiest 20 percent consumed 37 percent (40.3 percent in Greece, 46.4 percent in the United States). Bulgaria's Gini index —which rates a country's level of equality with 1 representing perfect equality and 100 representing perfect inequality—was 28.3 in 1995, while Greece's was 32.7, and the United States' was 40.8. Polarization increased between 1995 and 2000, but it is believed that economic growth over the next decade and the accession to the EU will gradually increase living standards for all Bulgarians.

By 2001 most of the population was enduring hardship. The growth of wages and pensions lagged behind the index of consumer prices and unemployment is officially estimated at 15 percent, although it is believed to be much higher. The prospects for many small businesses seem bleak, due to the unavailability of loans, weak demand, crime, and corruption. Agriculture is struggling to provide a sustainable livelihood for small farmers. While many professionals and business owners make a good living, thousands of Bulgarians can afford only the bare necessities. Numerous chronically ill people suffer from an inadequate supply of life-supporting medicines, and many children, particularly those of Roma families, are unable to attend school because of the growing cost of textbooks and clothing. Many people who live in small towns and villages with high unemployment rates, as well as single parents, pensioners , persons in state social homes, disabled people, and others face considerable personal distress.

According to the United Nations Development Programme (UNDP), Bulgaria is currently behind Hungary and Poland, but ahead of neighboring Turkey and Romania, in terms of its human development index. In 1998, Bulgaria still had a smaller population per physician and per hospital bed than the EU average, but health-care spending per head was much lower. Food constituted 33.1 percent of household spending (but was believed to be rising), while the EU average was 14.1 percent. Cars in use per 1,000 population were 219.9 for Bulgaria and 399.7 for the EU. Houses with piped water constituted 83.4 percent of households in Bulgaria and 99 percent in the EU, and houses with flush toilets were 57.7 percent in Bulgaria against 96.3 percent in the EU.

WORKING CONDITIONS

Bulgaria is a party to all relevant major universal as well as regional legal instruments, such as the International Covenant on Economic, Social and Cultural Rights, the Convention on the Elimination of Discrimination Against Women, and the Convention on the Rights of the Child. It is also a signatory to treaties on the right to equal compensation and collective bargaining and against employment discrimination. Market reforms, though, made Bulgarians aware of unemployment and job insecurity problems. Before 1989, the economy was plagued by the sustained labor deficit for blue-collar workers, but labor disputes were virtually non-existent since the Communist Party supervised trade unions. Nevertheless, over the decades after World War II, working conditions improved in both urban and rural areas with the introduction of new technology and progressive legislation and the development of health-care and social-security systems. At the same time, safety at work and environmental protection, particularly in the mining, energy, and chemical industries, were often inadequate.

Bulgaria did not develop independent labor unions as such before democratic reforms took root. The only exception was the Podkrepa Labor Confederacy, now one of the major national unions. Along with the Confederacy of Independent Syndicates of Bulgaria and other groups, the Podkrepa participates in collective bargaining, and the unions' role is growing as many Bulgarians face unemployment and deteriorating working conditions. Conditions are notably bad in clothing sweatshops set up by foreign investors in rural areas severely afflicted by unemployment. Women have traditionally participated on an equal footing in the economy but are now suffering heavily from unemployment, job-related stress, and unsafe labor conditions. Over the 1990s, hundreds of thousands of educated young Bulgarians left the country, and it is expected that the forthcoming waiver of visa requirements for most EU countries will encourage others to seek short-term employment. EU membership is likely to intensify the mobility of workers between countries until a balance is reached.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

550 A.D. Slavs settle into present-day Bulgarian (then Byzantine) lands, comprising the ancient Roman provinces of Moesia, Thrace, and Macedonia.

681. Khan Asparuh founds the first Bulgarian state as a union between Slavs and newcomer Bulgars, militant people from the steppes of the northern Caucasus. They are to be assimilated by the Slavs but leave their name and statehood tradition to the nation.

863. Bulgaria converts to Christianity under Prince Boris I and embraces Byzantine civilization as a feudal agrarian economy takes root.

893. The Cyrillic alphabet and Old Bulgarian (Slavonic) are adopted as the official language (instead of Greek).

893-927. The territory expands under Prince (later Tsar) Simeon. A rich medieval culture spreads its influence to other Slavs in Serbia, Walachia, Kievan Rus, and later Muscovy.

927. Bulgarian rulers recognize the title of tsar (emperor); Bulgarian Orthodox Church is elevated to patriarchy.

1018. The First Bulgarian Empire is violently subdued by Byzantium.

1185. The brothers, Asen and Peter, take over an uprising to liberate the Bulgarian lands and restore the state known as the Second Bulgarian Empire.

1230. There is territorial and commercial expansion under Tsar Ivan Asen II. Bulgaria becomes a major grain supplier to Byzantium, actively trading with Venice, Genoa, and Ragusa (Dubrovnik).

1371. Commercial and cultural development accompanies political crisis under Tsar Ivan Alexander. Bulgaria is divided into several lesser kingdoms and principalities.

1396. Bulgaria is violently conquered by the rising Ottoman Empire and remains under its rule for nearly 500 years.

1762-1876. A national revival develops new Bulgarian culture and pride. Agriculture and home industries thrive, benefitting from large Ottoman markets. Merchants and industrialists emerge and benefit the economy. The national liberation movement gains momentum.

1871. An independent Bulgarian church is restored.

1876. There are mass uprisings against Ottoman rule.

1878. Bulgaria is liberated from Ottoman rule as an outcome of the 1877-78 Russo-Turkish war.

1879. The first Bulgarian constitution establishes a democracy, modeled after the Belgian constitution.

1885. North and South Bulgaria unite after being separated since 1878 by the European powers. A sizable ethnic Bulgarian population remains under the Ottoman Empire.

1887-12. Democratic statehood develops as well as a market economy that remains largely agrarian and a national culture.

1903. There are mass uprisings of Bulgarians in the Ottoman lands (Macedonia and Adrianople area).

1912-18. Bulgaria participates in the Balkan Wars and World War I, which is aimed at liberating ethnic Bulgarians outside Bulgaria's borders. The war ends in defeat and brings an influx of refugees.

1923-41. Political life is troubled by violence as democracy gives way to bitter partisanship and is finally supplanted by a pro-Nazi Germany regime. The economy grows with the influence of German investors.

1944-56. Communist rule takes over. Central economic planning is introduced, focusing on heavy industries, and farms are collectivized. Economic cooperation with the Socialist bloc develops.

1946. Bulgaria is proclaimed a people's republic.

1955. Bulgaria joins the United Nations.

1956-80. Bulgaria exhausts the extensive socialist growth model and reaches stagnation.

1985-89. Economic and political crisis occurs as perestroika unfolds in the Soviet Union. The Bulgarian regime desperately seeks methods of market reform, while cracking down on dissenters and the Turkish minority.

1989. Communist leader Todor Zhivkov resigns as the transition to multiparty democracy and a market economy begins. Bulgaria shifts its loyalties to the EU and NATO.

1991. A new democratic constitution of the Republic of Bulgaria is adopted, and elections bring the reformist Union of Democratic Forces (UDF) to power.

1995. Bulgaria is admitted as an associate member of the EU and applies for full membership.

1997. IMF-sponsored program for financial stabilization is implemented by the second UDF government.

1998. Effective IMF membership is established.

1999. Negotiations for full membership of the EU get underway.

FUTURE TRENDS

Bulgaria's economic policy after 2000 will be determined by the success of its preparations for EU membership. The EU opinion on its progress is favorable, but negotiations will become more difficult as they move from administrative to economic issues, such as the restructuring of the energy sector and agriculture. Bulgaria's market economy and its competitiveness within the single European market still require significant further improvement. Public expenditure will focus on investment in roads, natural gas, electricity, agriculture, and the environment. The government claims investment of some $9 billion is enough to fuel growth over the next years, but, all too optimistically, it relies on the private sector to provide most of the funds.

With Bulgarian privatization completed by the end of 2001, the IMF envisages strong annual growth of 4 percent to 5 percent over the next several years and single-digit inflation. However, slow and allegedly corrupt privatization processes are a potential obstacle to economic transformation, and corruption charges combined with insufficient growth, unemployment, poverty, and deteriorating health care and education, could bring about a change of government in 2001. This outcome would not mean any long-term changes in policy.

The end of Slobodan Milosevic's government in Serbia could prove beneficial by decreasing the risk of war on Bulgaria's borders. The reopening of land routes and river traffic on the Danube will facilitate trade with the EU, Bulgaria's largest export market, whose growth will have a positive impact on the economy.

DEPENDENCIES

Bulgaria has no territories or colonies.

BIBLIOGRAPHY

Crampton, R. J. A Concise History of Bulgaria. Cambridge and New York: Cambridge University Press, 1997.

Economist Intelligence Unit. Country Report: Bulgaria. London: 2000.

U.S. Central Intelligence Agency. World Factbook 2001. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed October 2001.

U.S. Department of State. FY 2000 Country Commercial Guide: Bulgaria. <http://www.state.gov/www/about_state/business/com_guides/2000/europe/index.html>. Accessed December 2000.

—Valentin Hadjiyski

CAPITAL:

Sofia.

MONETARY UNIT:

Lev (plural Leva). One lev equals 100 stotinki. There are coins of 1, 2, 5, 10, 20 and 50 stotinki.

CHIEF EXPORTS:

Machinery and equipment; metals, minerals, and fuels; chemicals and plastics; food, tobacco, and clothing.

CHIEF IMPORTS:

Fuels, minerals, and raw materials; machinery and equipment; metals and ores; chemicals and plastics; food and textiles.

GROSS DOMESTIC PRODUCT:

US$48 billion (purchasing power parity, 2000 est.).

BALANCE OF TRADE:

Exports: US$4.8 billion (f.o.b., 2000 est.). Imports: US$5.9 billion (f.o.b., 2000 est.).

BULGARIA

Republic of Bulgaria

Major Cities:
Sofia, Plovdiv, Varna

Other Cities:
Burgas, Pleven, Ruse, Shumen, Sliven, Stara Zagora, Tolbukhin

EDITOR'S NOTE

This chapter was adapted from the Department of State Post Report 2000 for Bulgaria. Supplemental material has been added to increase coverage of minor cities, facts have been updated, and some material has been condensed. Readers are encouraged to visit the Department of State's web site at http://travel.state.gov/ for the most recent information available on travel to this country.

INTRODUCTION

The Bulgarian lands are an historic crossroads that to this day preserve evidence of many ancient civilizations and peoples: bronze and iron spears and arrows, ruins of classical temples, palaces, and cities, wise words carved on rocks and stone columns or written on parchment and leather. In the mid-17th century, early Slavic tribes came from the north, crossing the Danube river and reaching as far as the Black Sea and the Adriatic. They were followed by the Bulgars of Khan Asparuh. The first Bulgar state was founded in 681 A.D. as an alliance between the Bulgars and the Slavs.

In 862 the Saints Cyril and Methodius created the first Slavic alphabet-the Glagolitsa. At the end of the 9th century another Bulgarian alphabet was created-the Cyrillic alphabet, which later was spread beyond the boundaries of Bulgaria. The Cyrillic script is still used in Bulgaria, Serbia, Ukraine, Russia, and other Slavic nations.

In 865, under the reign of Prince Boris I, the Bulgarians converted to Orthodox Christianity, which consolidated the country. The first Bulgarian kingdom reached its height during the reign of Tsar Simeon 1 (893-927). This era is known as the "Golden Age of Bulgaria" and is associated with the flourishing of literature, arts, and handicrafts. After a period of 167 years under Byzantine control (11th-12th centuries), Bulgaria reestablished itself as a state under the reign of Tsar Peter. During the 13th century, the Bulgarian state stabilized and its boundaries expanded to the Black, White, and Adriatic seas. In the middle of the 14th century, armies of the Ottoman Empire began raids into Bulgaria and finally conquered it in 1396. For the next five centuries Bulgaria remained under Ottoman rule. During this period over 400 uprisings broke out across the country, but all were suppressed.

The second half of the 18th century marked the beginning of a Bulgarian national renaissance, which extended through the next century. Numerous schools were opened, textbooks in Bulgarian were printed, and teachers were trained. The Bulgarian Church regained its independence from the Greek Orthodox Church, replaced the clergy, and established an independent exarchate. The revolutionary movement organized across Bulgaria culminated in an uprising in 1876. The subsequent Russo-Turkish war led to the liberation of Bulgaria and the signing of the San Stefano Peace Treaty on March 3, 1878. Bulgaria became a principality which was nominally under Ottoman control, but in fact acted as an independent state. The Berlin Congress of the Great Powers, held in June-July 1878, annulled the San Stefano Peace Treaty and split up Bulgaria. The northern region (Principality of Bulgaria) and southern region (East Rumalia) were unified in 1885 by Prince Alexander Batenberg.

In 1908 Bulgaria became a fully independent constitutional monarchy, which survived to the end of WW II. Bulgaria fell under the Soviet sphere of influence, became a People's Republic, and a loyal Soviet satellite beginning in 1946. Communist domination ended in 1989. In the early 1990s, Bulgaria began the contentious process of moving toward political democracy and a market economy.

MAJOR CITIES

Sofia

Sofia, the political, economic, cultural, and administrative center of the country, is a city where large parks and attractive older buildings blend with modern high-rises. Sofia is situated on a plain 1,830 feet high. Ten miles to the north lie the Balkan Mountains (Stara Planina), and just to the south is Mount Vitosha (7,000 feet), which is a national park and a popular hiking and skiing area. Behind Mt. Vitosha, near the resort town of Borovetz, lies Mt. Musala, the highest peak in Bulgaria (9,650 feet).

Utilities

Electricity is 220v, 50-cycle, single phase. The current is erratic, with frequent voltage fluctuations (as much as 10%) and occasional breaks in service. When repairs are taking place at the power station, regular power breaks occur, which are announced in advance. The city water supply, to which all apartments are connected, has frequent interruptions. Water pressure often fluctuates or is low on upper floors. Many buildings have an insufficient or inconsistent hot water supply that is centrally controlled. Each summer for about 3 weeks, sometimes less in the diplomatic apartments, the hot water is turned off to clean the water pipes. This is announced in advance. Heating is supplied through a centralized citywide system, which means that one cannot regulate one's own apartment temperatures.

Food

There has been a great improvement in food availability in Bulgaria following economic liberalization. Seasonal fruits and vegetables are always offered at the markets, as well as some hardy, less seasonal imports. Meat and poultry are always available but are not cut and prepackaged American-style. Frozen vegetables on the local market do not look particularly appetizing, but American and Turkish brands are available at the commissary. Finding good fresh or frozen fish is still a problem, but some people report that they have found sources.

The present exchange rate makes local produce reasonable for foreigners, and the sources of supply have increased. Many private shops and small supermarkets have opened recently, stocking a good variety of imported items as well as local products. There are now two "Metro" stores in Sofia that are of the size and variety of a Price Club-type store. These stores are more like warehouses and sell everything from wine to lawn furniture. This is pretty close to a one-stop-shop, since you can buy food, household appliances and furnishing, clothing, diapers, products for your office, and even automotive supplies.

Open or covered farmers' markets offer a rich assortment of local and imported produce all year around, although you may not be able to find your favorite fruits or vegetables. The larger vegetable markets are open every day of the week. Local dairy products, meats, and dry goods are found in corner groceries.

Clothing

You will need approximately the same kinds of clothing here as for the U.S. Winters are generally long and cold while summers are shorter, cooler, and dry. You should bring warm winter clothing, especially if you intend to take advantage of the winter sports opportunities available here.

The cobblestone streets can be hard on shoes. For women, closed-toe shoes with low or moderate heels are better than sandals or high-heeled shoes for most of the year, although many young Bulgarian women wear the latest platform high heels even on the cobblestones. Bulgarians are quite proud of their locally made shoes and boots, which are available all over town, and imported shoes and boots are also easy to find for adults. For children's shoes and boots most people still either shop in Greece or Turkey or buy from American catalogs.

Office clothing is similar to that of the U.S., though those who regularly use public transportation may dress slightly less formally. More and more upscale sports and fashion shops are opening, and the Bulgarian clothing industry produces many attractive items. But in general it is still difficult to find what you want with regards to style and fabric in the size you want, so most people buy clothing at home or from catalogs.

In the last few years it has become much easier to find baby clothing, but parents with 10-12-year-olds report that

Domestic Help

Both full-time and part-time Bulgarian servants are available. All live out, and few speak English well. Normal work hours are Monday through Friday, with special arrangements made for weekends and holidays. Rates vary widely depending on the contract, 36.7% of that amount is given in addition for social security, unemployment and health insurance. It is also customary to give servants a gift at the end of the year; an extra month's wages is expected. For extra help at cocktails, lunches, and dinner parties, you can hire cooks, bartenders, and waiters. Evening babysitters cost about $2 an hour, plus taxi fare.

Religious Activities

Most churches in Bulgaria are Bulgarian Orthodox. Anyone may attend services at these churches, including the

Alexander Nevski Cathedral, to hear the famous unaccompanied choir. This is especially interesting at Christmas and Easter. The former regime encouraged atheism; this is no longer the case, and now many foreign missionary groups are active.

There is a resident chaplain at the British Embassy in Bucharest who holds Episcopal services periodically in the Fox Club, in the British Embassy residence building. The papal nunciature holds Roman Catholic services in English Sundays at 11:00 am, and St. Joseph's Catholic Church holds services in Polish, Bulgarian, and Latin at different times on Sundays. The International Baptist Church holds English services Sunday at 11:00 am in the basement of the World Trade Center; Sunday School at 10:00 am; and Bible study and prayer group meetings, as well as nursery service, during the 11:00 am service. Branches of the Church of Jesus Christ of the Latter Day Saints and a Sephardic Jewish Synagogue with worship are also present in Sofia.

Education

The Anglo-American School in Sofia (AAS), a PK-8 school established by the American and British to the south of Sofia. Embassies in 1967, takes children primarily of the two embassies; other international children and a limited number of Bulgarians are given places as space permits. The school is accredited by the New England Association of Schools and Colleges and the European Council of International Schools. The school has a specific commitment to focus on curricula, resources, and methodologies that relate to the mainstreams of education in the U.S. and the United Kingdom. The director is British, and the teachers are mostly American or British.

The AAS of Sofia is governed by a Board of Directors, consisting of nine members; four members are appointed by the British Ambassador, and four by the American Ambassador, with the PTO president serving as a full board member. The AAS is located on the campus of the American College of Sofia in Mladost. At present, about 140 children from 30 different countries are enrolled.

The school operates a preschool for children who are already 4 years old; it also offers an intensive ESL program, remedial reading and writing, a study skills program, a standardized testing program, French, music, art, after-school activities, field trips inside and outside Bulgaria, and an annual ski week on Mount Vitosha. There are classroom computers and an extensive library. The school does not have any special separate provision for children designated as gifted and talented or as learning-disabled beyond what is listed above. Provision is made for individual differences by the teachers within the normal favorable classroom situation. Classes on average have 20 or fewer pupils. The annual educational allowance covers tuition and bus service. Classes begin in late August and end in mid-June.

Places are limited, so if you wish to enter a child, write as early as possible. The school will hold seats open. The address is: The Director, The Anglo-American School of Sofia American Embassy Sofia Department of State, 5740 Sofia Place Washington, DC 20521-5740.

The American College of Sofia, a private high school blending aspects of the Bulgarian and American educational systems, graduated its first class in 1997 after being shut down for 50 years under the Communist government. Most students are Bulgarian, with a minority of Americans and other internationals. A preparatory year, equivalent to the 8th grade, is used almost entirely to teach the entering Bulgarians English. In subsequent years students are taught math, philosophy, four sciences, including computer science, and languages and arts.

American teens have attended ACS and have received an excellent education there. Also, in the past, a few American teenagers have studied in the Bulgarian special-language high schools, where the language of instruction is either English, French, Russian, or German. Not all classes are held in the designated language and, of those classes given in English, the level is naturally most suitable for ESL students. Students beyond the 8th grade also have taken the University of Nebraska home study program. This requires active parent participation.

Special Educational Opportunities

Besides the Anglo-American School of Sofia, there are other opportunities for young children. The International Children's Creativity Centre (ICCC) is open to children aged 2 to 4, who attend the Centre two, three, or five mornings a week to play and learn using the English language. The ICCC Board is made up of five members, some of whom are parents of children registered at the Centre. The Centre has enjoyed a good reputation since its inception.

The American English Academy offers courses in English for prekindergarten through 12th grade. The academy is accredited by ACSI in Colorado Springs, and the parents of children attending the academy are very pleased with the education their children are receiving. There is a religious affiliation, but no religion is taught. The textbooks and curriculum are American, and the president and at least half the teachers are American.

The American University of Bulgari is located just 100 kilometers south of the capital city of Sofia. All instruction is in English, and the faculty is over 60% American. The University of Maine, the U.S. partner, provides accreditation and assists with curriculum development.

There is a French Government Lycee which welcomes children of all nationalities. Its students are eligible to specialize in baccalaureates in the sciences, literature, or social sciences. The program is rigorous and highly valued at American Universities, which often offer 1 year or more of advanced credit to holders of the Baccalaureate.

Sports

Skiing is a very popular winter sport, and prices for rental equipment and lift tickets are well below those in Western Europe. Sledding and winter hiking are also popular, with Vitosha Mountain right at the doorstep. There is a Hash House Harrier group, which organizes regular weekend runs and walks. Hiking on the Vitosha Mountain is popular. For the more adventurous sports enthusiasts, Bulgaria has a selection of mountain ranges from which to choose. Hiking, spelunking, hang gliding, kayaking and rock climbing opportunities exist.

Fitness centers are becoming more popular and there are several indoor and outdoor swimming pools in the city. There are several reputable good stables on the outskirts of Sofia.

Good locally produced and imported sports equipment and clothing is becoming more available in shops all over Sofia, although for the newest styles and equipment you may still have to shop elsewhere.

Touring and Outdoor Activities

Within the city there are many fascinating museums to visit as well as several buildings of historical and cultural significance. Organized tours are available from Sofia to visit the many delightful points of interest in the country, including the nearby Rila Monastery and the town of Koprivshitsa, one of 14 designated museum towns. The Boyana Church, one site not to be missed, is located just outside of Sofia. This church contains frescoes that date from the 12th and 13th centuries and are of unusual interest to art in-and out-of-country travel opportunities. Many families drive fairly regularly to the Greek and Turkish coastal resorts and/or to Thessaloniki and Istanbul for shopping and pleasure. Bucharest is an eight-hour drive from Sofia via the Bulgarian city of Ruse on the Danube.

Entertainment

Several movie theaters in Sofia show American and European films. American films are usually shown in English with Bulgarian subtitles. The English titles are published weekly in the private newspaper, The Sophia Echo.

There are many theaters in Sofia offering a rich variety of performances from the classical to avant garde, with performances in Bulgarian. In the last couple of years there has been an English play performed by volunteers from the English-speaking community. Children's puppet theaters occasionally have pantomime shows, and there is a musical theater, which frequently performs musicals such as "Hello, Dolly."

The Sofia Philharmonic runs several cycles of performances at reasonable prices.

Sofia also boasts a young private orchestra, the New Symphony Orchestra, whose director is Rossen Milanov, also the director of the Chicago Youth Orchestra.

Numerous other musical events take place in the National Palace of Culture, a monstrosity of a building left from the days of communism. Pop, rock, jazz, and classical groups perform there.

The many and ever-changing assortment of restaurants, cafes, and pubs offer varied opportunities for exploration. Most restaurants are fairly inexpensive by American standards but have improved considerably in the last few years. Food and service are greatly improved, and excellent Bulgarian wines with dinner are well within an FS officer's budget. Besides a variety of international restaurants-Korean, Chinese, Indonesian, French, Spanish, Indian, and Italian-there are folkloric restaurants with floor-shows, a restaurant that sells the antiques surrounding your table, restaurants with a view, and the usual assortment of American fast food restaurants.

Plovdiv

Plovdiv, rich in both ancient and modern history, is Bulgaria's second largest city, with a population of about 375,000. Situated on the cliffs overlooking the Maritsa River, it is about 100 miles east of Sofia, on the international highway to Istanbul. For more than 2,000 years, it has been a crossroads for east-west trade, and today is the site of the Plovdiv International Sample Fair, where tradespeople from both capitalist and communist countries gather each September to show their wares.

The ancient city was known as Philippolis, for Philip II of Macedon, father of Alexander the Great, who made it a military post in 341 B.C. Under the Romans, who took the city in 46 B.C., it was the capital of Thrace (or Thracia), and known as Trimontium. It was razed by the Goths, but recovered after Constantine V of Byzantine settled the Armenian Paulicians here. Again destroyed in the 13th century by Bulgarian raids, it revived as a center of the Bogomils, who were part of a religious movement of the Middle Ages. The Greeks retook the city in 1262, then lost it to the Turks in 1364. It became the capital of Eastern Rumelia when it passed to Russia in 1877. It was not until 1885 that it became part of Bulgaria.

The Plovdiv of today retains the color of its history in the town walls and gate, the old quarter, the Eastern Orthodox churches, and the Roman architecture. Many places of historical interest are a short drive from Plovdiv, most notably the Bachkovo monastery, second only to Rila in interest and beauty. Plovdiv has a 4,000-student university and several other institutions of higher learning, as well as a number of notable museums.

Varna

Varna is Bulgaria's principal seaport, and is also a beautiful resort with fine beaches on the western shores of the Black Sea. It has a thriving tourist industry, and its museums, galleries, and good theaters contribute to the economic health of the city. Varna supports its own symphony orchestra and also an opera house. During the resort season, its hotels are both busy and expensive. One of the major attractions of this city of more than 311,000 residents is its international music festival. Every three years, a ballet competition is also held here. From Varna, throngs of visitors take excursion boats up and down the coast.

Varna was founded in 580 B.C. as Odessus, a Greek colony. It passed to the Roman Empire in the first century A.D., and remained part of the Byzantine Empire until the Bulgarians defeated Constantine IV here in the year 679. Captured by the Turks in 1391, it became an important seaport and, in the 19th century, a crucial railroad terminus. The Turks used Varna for almost five centuries as an outpost against the Christian Crusaders. In a turn-about, the British and the French made it their naval base in the Crimean War. The city was ceded to Bulgaria in 1878 by the Treaty of Berlin.

For eight years after World War II (1949-1957), Varna was known as Stalin.

OTHER CITIES

BURGAS , situated on the Gulf of Burgas, an inlet of the Black Sea, is one of the country's major ports. A city of about 200,000 people, it has several industries, including fish canneries, an oil refinery, and engineering plants. It also is the site of an institute of chemical technology. Burgas (also spelled Bourgas) was founded in the 18th century on the site of a fortified town which had existed four centuries earlier.

PLEVEN , with a population of about 140,400, is located 80 miles northeast of Sofia in north-central Bulgaria. The city lies near the Vit River in a small agricultural region surrounded by limestone hills. Pleven is a trading hub for the nearby farm districts and vineyards. Industries include those producing rubber goods, ceramic articles, tobacco, and cloth. A historical city since pre-Roman times, there are a number of museums and a school of viticulture here. A major battle of the Russo-Turkish War of 1877-78 was fought in Pleven, and a mausoleum commemorating the Turkish surrender in December 1877 is in the center of the city.

RUSE (sometimes spelled Roussé), a city of close to 185,500, lies in northeast Bulgaria on the Danube, across from the Romanian city of Giurgiu (Giurgevo). It is Bulgaria's chief river port and an industrial and communications center which developed after 1878. Founded in the second century B.C. as Prista, it later became a Roman naval base. The Turks ruled the city from the 15th to the 19th centuries, called it Ruschuk, and made it a military base. Ruse, noted for its old churches and mosques, houses a large technical university, Angel Kancev.

Founded in 927, SHUMEN is located in northeastern Bulgaria, about 500 miles west of Varna. Under Turkish rule during the 15th through 19th centuries, the city was strategically an important stronghold during the Turkish wars in the 18th and 19th centuries. Today, Shumen is a manufacturing city whose chief industries include flour milling, brewing, canning, and motor vehicle assembling. It is also a railway junction and a market for grains and other agricultural products. The city was originally called Shumen or Shumla, but was renamed Kolarovgrad in 1950 in honor of the communist leader Kolarov, who was born here. It reverted to Shumen in 1965. The current population is about 104,000.

SLIVEN (also called Slivno) is situated 155 miles east of Sofia at the foot of the Balkan Mountains in east-central Bulgaria. The city has long been considered strategically important due to its location at the entrance to the Balkan passes and has, consequently, been the center of conflict—in medieval times between Bulgaria and the Byzantine Empire, and between the Russians and the Turks in the 19th century. Today, Sliven is a textile center that also produces foodstuffs, wine, machinery, glass, and electrical goods. Coal is mined in the nearby region. Several churches and mosques, and the ruins of a medieval fortress may be found in Sliven. The capital of Sliven Province, the city has a population of 102,000.

STARA ZAGORA is the capital of the district with the same name; it is approximately 110 miles southeast of Sofia and 50 miles northeast of Plovdiv. The city, with a population of about 145,000, is near the famous Shipka Pass in the Balkan Mountains. Stara Zagora produces furniture, chemicals, textiles, and tobacco, and is known particularly for its vast fields of roses which provide oils for the perfume industry. It had to be rebuilt after the Russo-Turkish War and, as a result, several Roman and Turkish antiquities were found. A spa called Stara Zagora is located near the city.

TOLBUKHIN is a cultural and commercial center located 25 miles north of Varna in northeastern Bulgaria. The capital of the province of the same name, Tolbukhin produces cotton textiles, farm machinery, metal goods, and foodstuffs. Tolbukhin was formally called Dobrich; when it was occupied by Romania, from 1913-40, it was called Bazargic. It was officially renamed Tolbukhin in 1949 to honor the Soviet marshal who had liberated the city in 1944. Tolbhukin's population is about 102,300.

COUNTRY PROFILE

Geography and Climate

Bulgaria is a country of mountains, plains, and seacoast, occupying 110,000 square kilometers (43,000 square miles) of the Balkan Peninsula. It measures roughly 260 miles from east to west and about 150 miles from north to south. Much of the country is rugged and mountainous, and only about 40 percent is cultivated. The Danube River, Black Sea, and Pirin-Rhodope Mountains provide natural borders on the north, east, and south. Flowing south into Greece are the non-navigable Struma, Maritsa, Mesta, and Arda Rivers, important sources of water for irrigation. The Balkan range extends across the north-central part of the country, separating the wheat-growing Dobrudzha region from the Thracian plain, where vegetables, fruits, grapes, and tobacco are cultivated.

The climate is usually designated as "continental, with many microclimates." From May to November, the climate is pleasantly warm and sunny. Sofia, though approximately on the same latitude as Rome, is about 1,500 feet up; it therefore, has a climate similar to, for example, Frankfurt. All plants, flowers, and fruits common in Britain and France grow well here, and the climate is too cold for citruses. November through April are cold, with snow and temperatures hovering near 32°F (0°C) but often falling lower, sometimes to 5°F (-15°C) in Sofia. Summer temperatures rarely exceed 90°F, and humidity is moderate. During July, the mean temperature is 68.7°F (20.4°C); during January, 30.6°F (-8°C). Mildew and insects are not significant factors.

Sofia's main climatic problem is winter smog, which is caused by industrial air pollution, soft-coal smoke, vehicle exhaust emissions, fog, and surrounding mountains that keep winds from blowing the smog away. Gray-brown dirt or coal-dust, as well as sand, is scattered on Sofia's snow-covered streets in winter. In Sofia, winters may often be gray, but they are quite beautiful in the nearby mountains. Mount Vitosha (altitude 2,290 m.), with its ski resorts and runs and walking paths, overlooks the city. Abundant trees and flowers make Sofia a more colorful city the rest of the year. Rainfall is moderate, averaging 25 inches a year.

Population

Bulgaria's National Statistics Institute reported the 1996 population at just over 8 million. Roughly 1.2 million, or 13%, live in and around Sofia, the nation's capital. Plovdiv, the second largest city and cultural center, has a population of about 350,000, while the Black Sea coast town of Varna, the third largest, has just over 300,000. Few of the other cities have populations greater than 100,000.

Recent years have seen a negative growth in the population, a condition also present in the early 1980s. The number of abortions exceeds live births, and in 1996 the country had an infant mortality rate of 15.6 deaths per 1,000 live births. Death and illness rates have increased since the early 1980s. The "squared" population profile is projected to lead to a population of 6 million by the year 2030. The population is aging, with nearly 30% of the people over the retirement age of 55; 48% representing those of working age (20-54 years); and a relative few remaining to address the needs of a hoped for economic expansion. A doubling of the percentage of severely handicapped further complicates this condition.

About 85% of the population is Bulgarian-a designation that includes people with numerous regional folklore traditions-and 9% is of ethnic Turkish origin. About 6% of the population is Roma, some of whom claim to be of Turkish descent. The country also has small numbers of Armenian, Jewish, Greek, and other minorities. The Bulgarian Orthodox Church, which belongs to the family of Eastern Churches that also includes Greek, Serbian, Romanian, and Russian Orthodoxy, is the principal religious denomination. Today, Bulgaria has one of the highest levels of true literacy in the world.

The Bulgarian language, like Russian and Serbian, is based on the Cyrillic alphabet, the founders of which were two Greek brothers, Cyril and Methodius, who worked among the Slavs, and is a source of great pride for Bulgarians. The Cyrillic alphabet spread from Bulgaria to Russia. Knowledge of other Slavic languages (particularly Russian) is helpful in learning Bulgarian, in spite of significant differences in vocabulary, grammar, and pronunciation. Learning foreign languages has always been stressed in Bulgaria, and the systems developed for learning language are quite effective. The levels of fluency in languages such as English, French, and German, often without the benefit of travel, is noteworthy.

Public Institutions

The 1991 constitution includes the following provisions: that there be separation of powers, political pluralism, free economic enterprise, inviolability of private property, and protection of the investments and businesses of Bulgarians and of foreigners. Human rights are generally well protected, and Bulgarian domestic laws are being brought into conformity with international agreements.

The President is commander-in-chief of the army and appoints and dismisses ambassadors. He has a staff of advisers. When in office, he officially relinquishes partisan allegiances and is the leader of all the Bulgarian people. He cannot initiate legislation, but has a qualified veto. Elected by direct popular election for five-year term, he can be reelected once.

The Narodno Sobranie, or National Assembly, consists of 240 members, each elected for a 4-year term with no term limit. They have public sittings that are extensively broadcast and televised. Both the Assembly and the Council of Ministers initiate legislation. The executive function rests with the Prime Minister and the Council of Ministers, including chairmen of functional committees. They are responsible for internal and foreign affairs. The judiciary does not check the actions of the executive or legislative sections; however, the new constitution provides for an independent judiciary.

A two-tier local government system is specified: regions and municipalities. Regional governors are appointed by the council of ministers, and the municipalities elect councils and mayors. Bulgaria became a member of the UN in 1955 and belongs to most UN-related agencies. It is a member of the World Bank, the IMF, and is a candidate for membership of the European Community and NATO.

Arts, Science, and Education

Full state support for the arts ended with the fall of the communist regime; however, the art scene remains vibrant, and one can pick from a rich variety of offerings: art and craft galleries; museums; theater (for those whose Bulgarian is good enough); opera; and classical, jazz, rock, and folk concerts.

Sofia has six full-time theaters whose offerings range from Bulgarian and European classics to modern works of world drama. The Sofia Opera features standards of classic grand opera as well as ballet, while operettas and musicals can be seen at the Musical Theater. There are three full symphonic orchestras, the Sofia Philharmonic, the National Radio Orchestra, and the New Symphony Orchestra, which exists and performs completely without subsidy from the state. Fans of popular music can enjoy live bands at many of the clubs around town and at the several commercial concerts throughout the year. Bulgaria also has international festivals of dance, classical music, folk, jazz, and rock during the spring, summer, and fall. By U.S. standards, tickets to all cultural events are inexpensive and are readily available.

There are excellent state museums of Bulgarian and foreign art, an historical museum, an ethnographic museum, and a natural history museum, all with interesting exhibits. In addition, private art galleries have proliferated in recent years, and one can see (and purchase) works ranging from icons through modern abstract work.

For those interested in folk culture, Bulgaria offers a wealth of possibilities. Throughout the year one can see festivals of dance and folk music, and there are opportunities to attend traditional events such as the parades of mummers (kukeri). Several world-renowned troupes perform on occasion (when not traveling abroad), and the chance to hear troupes such as the Pirin Ensemble, the Filip Koutev Ensemble, and the famous part-singing women's choir, "Les Mysteres des Voix Bulgares," should not be passed up.

Bulgaria has had an excellent reputation in the world of science and education for years, and the recent economic troubles notwithstanding, it continues to educate students, particularly in math and science, whose test scores rank among the best in the world. Compulsory schooling ends at age 15, but more than 80% of students go farther. Bulgaria's literacy rate is greater than 98%, considerably higher than that in the U.S. With the political reforms of the last several years has come educational reform as well, and the entire educational system from primary school through graduate school is being reconstituted along Western lines.

The Ministry of Education has overall responsibility for maintaining standards and prescribing curricula for all public schools and any private educational institutions qualified to offer recognized diplomas. Secondary education in Bulgaria, despite serious economic problems, continues to offer a large variety of educational choices ranging from vocational programs (often closely associated with factories) to special science and math high schools. Very popular also are the foreign-language high schools, which like the math and science schools, are "entrance by examination" institutions.

Bulgaria has 43 universities and other institutes of higher education and 45 colleges and technical schools. ("College" refers to semi-higher learning institutions for nursing, paramedical training, teaching, and technical education.) A new feature on the Bulgarian educational scene are the recently (re)established private schools. While these are governed by the various laws on education and are subject to a greater or lesser amount of oversight by the Ministry of Education, they receive no financial support from the state budget. Most notable among these private institutions are the American University of Bulgaria in Blagoevgrad, an American liberal arts college with a strong business school; the New Bulgarian University in Sofia; and the American College of Sofia, an English-language high school that was founded in the middle of the last century and reopened in 1992 after being closed for nearly 50 years. There is also a private English-language primary through middle school with American accreditation, the Anglo-American School of Sofia.

Unlike the situation in America, most basic research is not carried out in universities but rather in one of the more than 160 institutes and laboratories of the Bulgarian Academies of Science, Medicine and Agriculture. The Academies, which are not teaching institutions, have suffered even more than the school system from the economic hardships of the last years, and this has inhibited the exploitation of Bulgaria's scientific talent.

All educational and scientific institutions are eagerly seeking partnerships with Western institutions, and American programs sponsored by the Fulbright Commission and IREX have contributed significantly to linking Bulgarian scholars and scientists with their counterparts in the U.S.

Commerce and Industry

Following a severe economic crisis, the newly elected Union of Democratic Forces (UDF) Government adopted a currency board arrangement (CBA) in 1997. The CBA and its associated IMF program have provided the framework for cutting inflation from nearly 600% in 1997 to 6.2% in 1999. Fiscal discipline has kept budget deficits small and led to successive increases in Bulgaria's credit ratings. Despite the conflict in Kosovo, GDP grew by 2.4% in 1999 and is projected to grow by 4% in 2000. However, in the wake of large-scale restructuring of state-owned enterprises (SOEs), unemployment increased to 19% of the labor force in April 2000.

The UDF Government made considerable progress in privatizing SOEs last year. As of the end of 1999, about 71% of state-owned assets destined for privatization had actually been sold. The privatization process was to have been substantially completed in 2000, but difficulties in some sales make it increasingly likely that several large state-owned companies will not be sold until 2001.

Bulgaria joined the World Trade Organization (WTO) in December 1996 and became a full member of the Central European Free Trade Agreement (CEFTA) in July 1998. Bulgaria trades with European countries under preferential terms according to the European Union Association Agreement, effective February 1, 1995, and an agreement with the European Free Trade Association (EFTA), effective 1993. Bulgaria signed free-trade agreements with Turkey (effective January 1, 1999) and Macedonia (effective January 1, 2000).

In 1999, according to preliminary estimates, Bulgaria attracted $755.3 million in foreign direct investment; during the period 1992-1999; foreign direct investment totaled $2.8 billion. The U.S. is the fourth largest source of foreign direct investment ($198.4 million, or 7% of the total). Among the largest foreign investors are the following U.S. companies: American Standard, AIG/ALICO,

McDonald's, Entergy Power Group, Hilton International, Seaboard Overseas, World Trade Company, Kraft Foods International, Bulgarian-American Enterprise Fund (BASF), Caresbac, DTS, Investments Corporation, Eurotech, Kontrako, and Eagle.

Germany is the top foreign investor, with $425.9 million, or 15% of total foreign investment, followed by Belgium, with $373 million, or 13% of total foreign investment, and Cyprus, with $249 million, or 9% of total foreign investment.

The government seeks to improve the country's infrastructure. Many roads and railways have been reconstructed by the Phare Cross Border Program, but much remains to be done. Despite the ongoing modernization of the telephone system, the quality is below international standards. There are two cellular radiotelephone networks-one analogue and one digital. A second GSM (the Global System for Mobile communications) license will be issued later this year; the Bulgarian Telecommunication Company (BTC) is also to be privatized in the near future.

Transportation

Automobiles

Road conditions in Bulgaria can be poor, especially in winter, as only the major roads are cleared of ice and snow. Four-wheel or all-wheel-drive vehicles are recommended. Shell gas stations can be found in larger cities and along most major highways.

In Sofia and along the main highways, super (96 octane), and regular (91 octane) and unleaded (95H) gasoline is available. Diesel fuel is available at major gas stations only.

An International Driver's License is recommended, but not required, and can be obtained through AAA or an equivalent organization.

Traffic moves on the right as in the U.S. The following rules may be unfamiliar to people new to Europe: You must stop 3 meters behind and to the right of a tramway car stopping to discharge or pick up passengers. Speed limits are 120 kph on divided highways; 90 kph on regular main roads; and 50 kph in populated areas, unless there are signs to the contrary. Priority is given to the driver entering from the right on any equal junction.

You should strictly observe the priority of a pedestrian who has stepped onto a painted pedestrian crossing. It is illegal to drive with more than 0.05 parts per thousand of alcohol in the blood or when alcohol in any quantity has been consumed immediately before taking the wheel. If you have an accident, you must call the police, and both drivers should wait at the scene, even if there has been no personal injury. The police will issue a protokol za proizshestivie (police protocol). Without this piece of paper, you cannot make a claim on your insurance.

"Green Card" short-term, the overseas third-party liability, is mandatory for auto travel in Europe. When you arrive in Bulgaria, take out this policy for Bulgaria and for all of Europe through the local Insurance Corporation. It has also recently become possible to obtain this policy from Clements & Co. and other American firms.

Local

Sofia is served by a network of tram, trolley bus, and auto lines. A one-month pass cost $14 (August 2000). Vehicles are often crowded but are handy, frequent, and very cheap-an important point now that parking is very tight around the center of town. Taxis are legion. There are many taxi stands; taxis cruise, and you can also get taxi service by telephone.

Frequent air and railway service link Sofia with the Black Sea resorts of Varna and Burgas, as well as with other major Bulgarian cities.

Regional

No American air carrier serves Sofia. The Western European cities with frequent service by American carriers are Frankfurt, Paris, London, Zurich, Munich, and Vienna, but connections to and from Sofia vary in convenience according to the day of the week. The Bulgarian airline, Balkan, and other foreign carriers provide regular service between Sofia and Western European cities. In late fall and winter, fog or heavy snow may occasionally close Sofia Airport for several days at a time.

There are many rail and bus lines to/from major European cities, and to resort areas in Greece and Turkey. Travelers should be cautious about theft, especially when crossing borders on land transportation. The preferred route for coming to Sofia from Europe by car is via Vidin/Kalafat.

Communications

Telephone and Telegraph

Direct dialing is available from the U.S. to Bulgaria. International connections with the U.S. vary from quick and clear to slow and unsatisfactory. The cost of calling the U.S. in early 1999 was about $1.50 per minute when using the Bulgarian Telecommunications Company and dialing direct. Telephone charges begin when the connection is made with the U.S. operator, not with your party. From your home, you may dial direct to most Eastern and Western countries. Some people have had success with Internet telephony.

Several service providers offer connection to the Internet and also permit the use of American-based services. Prices are relatively reasonable in comparison to telephone costs and assist in maintaining contact with other Internet users on a considerably faster basis than "snail mail."

Radio and TV

Bulgarian TV broadcasts nationwide on two channels, Channel 1, which is broadcast in SECAM, and Channel 2, which broadcasts in PAL. Local broadcast stations exist in many cities. In Sofia the two local (and private) stations are New TV (PAL) and Seven Days TV (SECAM). Currently, there are two stations that have broadcast capability nationwide, one public-Channel 1, and the other private-BTV (Bulgarian TV).

In addition to broadcast TV, satellite reception is possible for those having a dish, and there are a number of cable operations as well. Satellite and cable offerings make available CNN, CNBC, BBC, SKY NEWS, MTV, and SKY SPORTS, and a large variety of other European channels. European-system and Mufti-system television receivers are widely available for sale. Programming runs the gamut of news, entertainment, business news, film, and the like. Broadcast TV is almost exclusively in Bulgarian, while cable and satellite offerings feature programming in English, Spanish, French, German, Portuguese, Greek, and Arabic.

Radio has both private and public (state) stations, with the latter having the only truly nationwide coverage. Deutsche Welle, BBC Radio, Radio France International, and Radio Free Europe have local FM broadcasting arrangements and are easily and clearly received. All but RFE do programs in both Bulgarian and their respective national languages (RFE does Bulgarian language news only). Bulgarian radio of both the private and state varieties offer some very good news, talk show, and music programming; however, a good grasp of Bulgarian is required for all but the music programs.

Newspapers, Magazines, and Technical Journals

Many general-interest publications, including English-, French-, and German-language newspapers and magazines are widely available in Sofia, though they tend to arrive a day late and are quite expensive. These, as well as a large variety of Bulgarian periodicals, are available in hotels and at street kiosks throughout the downtown area in Sofia.

Community Health

Apart from smog, coal dust, and pollen, which particularly affect people with sinus and respiratory problems (asthma sufferers in particular), Sofia has no special health hazards. Water, although deemed generally safe, should be distilled to remove heavy metals, mineral deposits, unusual taste, and color. Fluoride supplements are recommended for children up to age 16. Milk and butter are of uneven quality. Vegetables, fruits, and eggs should be thoroughly washed, but no other special treatment is necessary. Local pottery should not be used for cooking, storing, or serving food, as it may leach lead from local paints and glazes. Municipal services generally collect garbage and trash regularly, and there is a regimen of sweeping the city streets.

NOTES FOR TRAVELERS

Passage, Customs & Duties

Flights on American carriers from the U.S. fly to Frankfurt, Paris, London, Vienna, Zurich, and Munich. From these cities, foreign airlines provide reasonably good connections to Sofia. To avoid possible conflict with the Fly America Act, consider Frankfurt, Munich, Zurich, or Vienna as the nearest points to Sofia served by an American carrier. Note that Sofia time is Greenwich Mean Time (GMT)/Coordinated Universal Time (UTC) + 2, whereas Yugoslavia and the countries of central and Western Europe are on GMT/UTC + 1.

A passport is required. A visa is not required for U.S. citizen visitors using regular passports for stays up to 30 days. Travelers who intend to stay more than 30 days, or travelers using official or diplomatic passports, must obtain a special 30 day visa from a Bulgarian embassy or consulate. Once in Bulgaria, this visa gives them grounds to apply for a residence permit. Travelers who have a 1-year multiple-entry visa for Bulgaria may stay up to 90 days altogether within six months. If a traveler comes to Bulgaria, stays in the country 90 days and then goes out, he or she will not be able to enter the country within the next 90 days.

All travelers are required to register with the regional passport office for foreigners or the police within 48 hours after their arrival in the country and to inform the office about any change in their address. For those staying at a hotel, a private boarding house or an apartment rented through an accommodation company, registration is taken care of by the proprietor. Visitors should carry their passport with them at all times. The Bulgarian authorities do not consider presentation of a copy of one's passport to be sufficient. For further information concerning entry requirements, travelers should contact the Embassy of the Republic of Bulgaria at 1621 22nd St. N.W., Washington, D.C. 20008; Internet http://www.bulgaria-embassy.org, tel. (202) 483-5885 (main switchboard (202) 387-7969) or the Bulgarian Consulate in New York City.

Travelers carrying cash equivalent to 5,000 Bulgarian leva (about $2,200) or more must declare the amount they are carrying on a customs declaration upon arrival or departure. Failure to declare currency and jewelry or improper exit from the customs area through the "green" (nothing to declare) line have resulted in confiscation of the currency or the jewelry and, in some cases, arrest. Travelers who have with them the equivalent of 20,000 Bulgarian leva or more upon departure must have a permit to export the money issued by the Bulgarian National Bank's Headquarters, if they had less than the equivalent of 20,000 Bulgarian leva upon entry in the country. Travelers should also declare jewelry, cameras, computers, and other valuables to avoid difficulties on departure. Please contact the Embassy of Bulgaria in Washington, D.C. or one of Bulgaria's consulates in the United States for specific information regarding customs regulations.

Americans living in or visiting Bulgaria are encouraged to register at the Consular Section of the U.S. Embassy in Bulgaria and obtain updated information on travel and security within Bulgaria. The U.S. Embassy is located in Sofia at 1 Suborna (formerly 1 A. Stamboliyski Boulevard); tel. (359) (2) 937-5100; fax (359) (2) 981-8977. The Consular Section of the Embassy is located at 1 Kapitan Andreev Street in Sofia; tel. (359) (2) 963-2022; fax (359) (2) 963-2859. The Embassy's web site address is http://www.usis.bg. Questions regarding consular services may be directed via e-mail to: niv@usconsulate.bg, iv@usconsulate.bg and acs@usconsulate.bg.

Pets

Dogs and cats are admitted to Bulgaria with proof of current rabies shot and health certificate that should be obtained before arrival. Examination by a Bulgarian veterinarian is required upon arrival. Dogs should be licensed. Satisfactory veterinary care is available in Sofia, as well as most vaccines and medications.

Currency, Banking, and Weights and Measures

The unit of currency is the lev (plural: leva). Currency notes are available in the following denominations: 1, 2, 5, 10, 20, and 50 leva. Coinage includes 1, 2, 5, 10, 20, and 50 stotinki (100 stotinki = 1 lev). The lev is pegged to the euro at 1.956 leva per euro.

Bulgaria is still a largely cash economy. Visitors should exchange cash at banks or Change Bureaus. Some Change Bureaus charge commissions on both cash and travelers' check transactions that are not clearly posted. People on the street who offer high rates of exchange are usually con artists intent on swindling the unwary traveler. Damaged or very worn U.S dollar bank notes are often not accepted at banks or Change Bureaus. Major branches of the following Bulgarian banks will cash travelers' checks on the spot for leva, the Bulgarian currency, or other desired currency: Bulbank, Bulgarian Postbank, Biochim, First Investment Bank and United Bulgarian Bank (UBB). UBB also serves as a Western Union agent and provides direct transfer of money to travelers in need. ATM cash machines are increasing in numbers in Sofia and other major cities. Major credit cards (MC, VISA, AMEX, etc.) can be used at a few establishments in and around Bulgaria (hotels, restaurants, and other tourist establishments), but usage is very low and is not recommended due to the risk of credit card fraud. Credit cards are useful when ordering goods from mail order houses in the States and from overseas duty-free supply companies like Peter Justesen.

LOCAL HOLIDAYS

Jan. 1…New Year's Day

Apr/May.…Orthodox Easter

Apr/May.…Orthodox Easter Monday

May 1…Labor Day

May 24…Sts. Cyril and Methodius Day

Sep. 6 …Unification Day

Dec. 24 …Christmas Eve

Dec. 25 …Christmas Day

Dec 26…Day After Christmas

RECOMMENDED READING

These titles are provided as a general indication of the material published in English about Bulgaria.

American Automobile Association Travel Guides. Tourbook for Eastern Europe.

Ash, David. Essential Bulgaria. 1997. Arie, Gabriel. A Sephardi Life in Southeastern Europe: The Autobiography and Journal of Gabriel Arie, 1863-1939. 1998.

Bar-Zohar, Michael. Beyond Hitter's Grasp, The Heroic Rescue of Bulgaria's Jews. 1998.

Bousfield, Jonathan and Richardson, Dan. The Rough Guide: Bulgaria. Fourth ed. 1999.

Carney, Peter and Anastassova, Mary, Bulgaria: The Black Sea Coast. 1997.

Carney, Peter and Anastassova, Mary. Bulgaria: The Mountain Resorts 1999. Sold in the U.S. by Book Clearing House, tel: 800-431-1579, BOOKCHnaol.com, www.bookclearing-house.com, www.dir.bg, www.gyuvech.bg, www.onlinLbr

Carney, Peter and Anastassova, Mary. Bulgaria: Sofia and Plovdiv. 1998.

Chary, Frederick B. The Bulgarian Jews and the Final Solution, 1940-44. University of Pittsburgh Press: Pittsburgh, 1972.

Constant, Stephen. Foxy Ferdinand, Tsar of Bulgaria. Sidgwick & Jackson, Ltd.: London, 1979.

Crampton, R.J. A Concise History of Bulgaria. Cambridge, 1997.

Danforth, Loring M. The Macedonian Conflict: Ethnic Nationalism in a Transnational World. Princeton, 1995.

Groueff Stephane. Crown of Thorns. Madison Books: Maryland, 1987.

Marazov, Ivan, ed. Ancient Gold: The Wealth of the Thracians: Treasures from the Republic of Bulgaria. 1998.

Markov, Georgi. The Truth that Killed. Ticknor & Fields: New York, 1984.

Norwich, John Julius. Byzantium: The Apogee. New York, 1997.

Thompson, E.P. Beyond the Frontier: The Politics of a Failed Mission; Bulgaria 1944. 1997.

Vazov Ivan. Under the Yoke. Twayne Publishers, Inc.: New York, 1971.

Ware, Timothy. The Orthodox Church. 1993.

Bulgaria

Compiled from the January 2008 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

PROFILE

Geography

Area: 110,910 sq. km. (slightly larger than Tennessee).

Cities: Capital—Sofia 1.2 million. Others: Plovdiv—368,568, Varna—349,482.

Terrain: Bulgaria is located in South Central Europe. The terrain is varied, containing large mountainous areas, fertile valleys, plains and a coastline along the Black Sea.

Climate: Continental—mild summers and cold, snowy winters.

People

Population: (2006) 7,679,290.

Growth rate: (2006) -0.51%.

Ethnic groups: (2001) Bulgarian 83.94%, Turkish 9.42%, Roma 4.68%, and other 2% (including Macedonian, Armenian, Tatar, Circassian).

Religions: (2001) Bulgarian Orthodox 82.6%, Muslim 12.2%, Roman Catholic 0.6%, Protestant 0.5%, others.

Languages: Bulgarian 84.5%, other 15.5%.

Health: Life expectancy (2006)— male 68.68 years; female 76.13 years. Infant mortality rate (2006)—19.85 deaths/1,000 live births.

Work force: (2005 est.) 3.34 million. Agriculture—11%; industry—32.7%; services—32% (3rd qtr. 2004 est.).

Government

Type: Parliamentary democracy. Constitution: Adopted July 12, 1991.

Independence: 1908 (from the Ottoman Empire).

Government branches: Executive—president (chief of state), prime minister (head of government), Council of Ministers (cabinet). Legislative—unicameral National Assembly or Narodno Subranie—240 seats. Members are elected by popular vote of party/coalition lists of candidates for 4-year terms. As of January 2008, seat allocation is as follows: CfB—82, NMSS—36, MRF—34, UDF—16, DSB—16, BND—16, BPU—13, Ataka—11, and independents—16. Judicial—three-tiered system.

Political subdivisions: 28 provinces plus the capital region of Sofia.

Suffrage: Universal at 18 years of age.

Political parties: Coalition of Bulgaria or CfB (coalition of parties dominated by BSP); Bulgarian Socialist Party (BSP); National Movement Simeon II (NMSS); Movement for Rights and Freedoms (MRF); United Democratic Forces (UDF); Democrats for Strong Bulgaria (DSB); Bulgarian Peoples Union (BPU); Bulgarian New Democracy or BND (a parliamentary group formed by NMSS defectors); Attack Coalition (ATAKA); and Citizens for the European Development of Bulgaria (GERB). Results from the June 25, 2005 general election are as follows: CfB 31.1%, NMSS 19.9%, MRF 12.7%, ATAKA 8.2%, UDF 7.7%, DSB 6.5%, BPU 5.2%.

Economy

GDP: (2006) $31.49 billion.

Real GDP growth: 6.1% (2006); 5.5% (2005); 5.7% (2004); 4.3% (2003).

Per capita GDP: (PPP, 2006) $10,700.

Inflation rate: 12.5% (2007), 6.5% (2006); 5% (2005); 6% (2004); 5.6% (2003).

Unemployment rate: 6.62% (November 2007), 9.61% (2006 average); 11.5% (2005); 12.7% (2004 average); 14.25% (2003 average).

Natural resources: Bauxite, copper, lead, zinc, coal, and timber.

Exchange rate: Lev per $1 U.S.=1.42 (2007 average); 1.56 (2006 average); 1.57 (2005 average); 1.58 (2004 average); 1.73 (2003 average).

GEOGRAPHY AND PEOPLE

Bulgaria shares a border with Turkey and Greece to the south, Macedonia and Serbia to the west, Romania to the north, and the Black Sea to the east. The capital, Sofia, lies in the western region of the country. Ethnic groups include Bulgarian, Turkish, Roma, and others. The official language is Bulgarian.

HISTORICAL HIGHLIGHTS

Ancient Thrace was partially located on the territory of modern Bulgaria, and Thracian culture provides a wealth of archeological sites within Bulgaria. In the second century A.D., the Bulgars came to Europe from their old homeland, the Kingdom of Balhara situated in the Mount Imeon area (present Hindu Kush in northern Afghanistan).

The first Bulgarian state was established in 635 A.D., located along the north coast of the Black Sea. In 681 A.D. the first Bulgarian state on the territory of modern Bulgaria was founded. This state consisted of a mixture of Slav and Bulgar peoples. In 864, Bulgaria adopted Orthodox Christianity. The First Bulgarian Kingdom, considered to be Bulgaria's “Golden Age,” emerged under Tsar Simeon I in 893-927. During this time, Bulgarian art and literature flourished. Followers of Saints Cyril and Methodius are believed to have developed the Cyrillic alphabet in Bulgaria in the early 10th century.

In 1018, the Byzantine Empire conquered Bulgaria. In 1185 the Bulgarians broke free of Byzantine rule and established the Second Bulgarian Kingdom. A number of Bulgaria's famous monasteries were founded during this period. Following the 1242 Mongol invasion, this kingdom began losing territory to its neighbors. Ottoman expansion into the Balkan Peninsula eventually reached Bulgaria, and in 1396 Bulgaria became part of the Ottoman Empire. During the five centuries of Ottoman rule, most of Bulgaria's indigenous cultural centers were destroyed. Several Bulgarian uprisings were brutally suppressed and a great many people fled abroad. The April uprising of 1876, the Russo-Turkish War (1877-78), and the Treaty of San Stefano (March 3, 1878, the date of Bulgaria's national holiday), began Bulgaria's liberation from the Ottoman Empire, but complete independence was not recognized until 1908.

During the first half of the 20th century, Bulgaria was marred by social and political unrest. Bulgaria participated in the First and Second Balkan Wars (1912 and 1913) and sided with the Central Powers, and later the Axis Powers, during the two World Wars. Although allied with Germany during World War II, Bulgaria never declared war on the Soviet Union and never sent troops abroad to fight under Nazi command. Near the end of World War II, Bulgaria changed sides to fight the German army all the way to Austria; 30,000 Bulgarian troops were killed.

Bulgaria had a mixed record during World War II, when it was allied with Nazi Germany under a March 1941 agreement. The Law for the Protection of the Nation, enacted in January 1941, divested Jews of property, livelihood, civil rights, and personal security. Despite a February 1943 agreement requiring Bulgaria to transfer Bulgaria's Jews to Nazi extermination camps in Poland, Bulgaria did not actually deport any Bulgarian Jews or Roma to Nazi concentration camps. Under that agreement, however, Bulgarian forces transferred approximately 11,000 Jews from Bulgarian-occupied territory (Thrace and Macedonia) to Nazi concentration camps. In June 1943 the government “re-settled” Sofia's 25,000 Jews to rural areas. Tsar Boris—supported by the parliament (especially its prominent Deputy Speaker, Dimitar Peshev), the Orthodox Church, and the general public—aided the Jewish community and helped its 50,000 members survive the war, despite harsh conditions. The Bulgarian Jews remained safe, and when they were permitted to emigrate to Israel after the war, most of them did.

King Simeon II assumed control of the throne in 1943 at the age of six following the death of his father Boris III. With the entry of Soviet troops into Bulgaria in September 1944 and the defeat of the Axis Powers in World War II, communism emerged as the dominant political force within Bulgaria. Simeon, who later returned and served as Prime Minister, was forced into exile in 1946 and resided primarily in Madrid, Spain. By 1946, Bulgaria had become a satellite of the Soviet Union, remaining so throughout the Cold War period. Todor Zhivkov, the head of the Bulgarian Communist Party, ruled the country for much of this period. During his 27 years as leader of Bulgaria, democratic opposition was crushed; agriculture was collectivized and industry was nationalized; and the Bulgarian Orthodox Church fell under the control of the state.

In 1989, Zhivkov was removed from power, and democratic change began. The first multi-party elections since World War II were held in 1990. The ruling communist party changed its name to the Bulgarian Socialist Party and won the June 1990 elections. Following a period of social unrest and passage of a new constitution, the first fully democratic parliamentary elections were held in 1991 in which the Union of Democratic Forces won. The first direct presidential elections were held the next year.

As Bulgaria emerged from the throes of communism, it experienced a period of social and economic turmoil that culminated in a severe economic and financial crisis in late 1996-early 1997. With the help of the international community, former Prime Minister Ivan Kostov initiated a series of reforms in 1997 that helped stabilize the country's economy and put Bulgaria on the Euro-Atlantic path. Elections in 2001 ushered in a new government and president. In July 2001, Bulgaria's ex-king Simeon Saxe-Coburg-Gotha became the first former monarch in post-communist Eastern Europe to become Prime Minister. His government continued to pursue Euro-Atlantic integration, democratic reform, and development of a market economy. Bulgaria became a member of the North Atlantic Treaty Organization on March 29, 2004, and a member of the European Union on January 1, 2007.

Following June 2005 general elections, Sergei Stanishev of the Bulgarian Socialist Party became the new Prime Minister of a coalition government on August 16, 2005. In October 2006, Georgi Parvanov, the former

leader of the Bulgarian Socialist Party, became the first Bulgarian president to win re-election. Despite his limited constitutional powers, President Parvanov has played an important role in helping to ensure a consistent, pro-Western foreign policy. The Stanishev government has continued Bulgaria's integration with the Euro-Atlantic world and its close partnership with the U.S. Bulgaria is attracting large amounts of American and European investment, and is an active partner in coalition operations in Iraq and Afghanistan as well as in UN-led peacekeeping operations in the Balkans.

GOVERNMENT AND POLITICAL CONDITIONS

Bulgaria is a parliamentary republic. The unicameral National Assembly, or Narodno Subranie, consists of 240 deputies who are elected for 4-year terms through a system of proportional representation in 31 electoral regions. Party or coalition lists, rather than individual candidate names, appear on the ballots. A party or coalition must garner a minimum of 4% of the vote to enter parliament. Parliament selects and dismisses government ministers, including the prime minister, exercises control over the government, and sanctions deployment of troops abroad. It is responsible for enactment of laws, approval of the budget, scheduling of presidential elections, declaration of war, and ratification of international treaties and agreements.

A one-month official campaign period precedes general elections. The voting age is 18. Preliminary results are available within hours of poll closings. Seats in parliament are allocated both by vote and by voter turnout. The votes for parties who did not receive a minimum threshold of votes are redistributed to other parties proportionate to their own share of the vote. The lists of newly elected members of parliament are announced 7 days after the elections. The president must convene the new parliament within one month after the elections, and calls upon parties, coalitions, or political groups to nominate a prime minister and form a government. If the three largest parties, coalitions, or political groups fail to nominate a prime minister, the president can dissolve parliament and schedule new elections. In recent years, it has taken approximately a month for the new government to form.

A general election in Bulgaria was held June 25, 2005. Results are as follows: Coalition for Bulgaria (CfB) 31.1%, National Movement Simeon II (NMSS) 19.9%, Movement for Rights and Freedom (MRF) 12.7%, Ataka 8.2%, United Democratic Forces (UDF) 7.7%, Democrats for Strong Bulgaria (DSB) 6.5%, Bulgarian People's Union (BPU) 5.2%.

In May 2007, Bulgaria held its first elections for members of the European Parliament. The GERB (Citizens for European Development of Bulgaria) party, led by Sofia Mayor Boyko Borisov, won the vote by a narrow margin over the Socialists (BSP) and secured 5 out of 18 seats. The BSP won 5 seats, the MRF won 4 seats, Ataka won 3 seats, and Simeon Saxe-Coburg Gotha's NMSS won 1 seat. The president of Bulgaria is directly elected for a 5-year term with the right to one re-election. The president serves as the head of state and commander in chief of the armed forces. The president is the head of the Consultative Council for National Security and while unable to initiate legislation, the president can return a bill for further debate. Parliament can overturn the president's veto with a simple majority vote. Bulgarian Socialist Party candidate Georgi Parvanov won the November 2001 presidential election and was reelected in October 2006 as an independent candidate in a run-off against Volen Siderov, the leader of extreme nationalist Ataka Party. The prime minister is head of the Council of Ministers, which is the primary component of the executive branch. In addition to the prime minister and deputy prime ministers, the Council is composed of ministers who head the various agencies within the government and usually come from the majority/ruling party or from a member party of the ruling coalition in parliament. The Council is responsible for carrying out state policy, managing the state budget and maintaining law and order. The Council must resign if the National Assembly passes a vote of no confidence in the Council or prime minister.

The Bulgarian judicial system became an independent branch of the government following passage of the 1991 constitution. Reform within this branch has been slow with political influence, widespread corruption, and long delays continuously plaguing the system. In 1994, the National Assembly passed the Judicial Powers Act to further delineate the role of the judiciary. In 2003, Bulgaria adopted amendments to the constitution, which aimed to improve the effectiveness of the judicial system by limiting magistrates’ irremovability and immunity against criminal prosecution.

The trial, appellate, and cassation (highest appellate) courts comprise the three tiers of the judicial system. Military courts (at trial and appeal level) handle cases involving military and Ministry of Interior personnel. Administrative courts, effective since March 2007, specialize in reviewing appeals of government acts.

The Supreme Administrative Court and the Supreme Court of Cassation are the highest courts of appeal and determine the application of all laws.

The Supreme Judicial Council (SJC) is composed of 25 members serving 5-year terms. Those who serve on the council are experienced legal professionals and are either appointed by the National Assembly, selected by the judicial system, or serve on the SJC as a result of their position in government. The SJC manages the judiciary and is responsible for appointing judges. In 2007 parliament revised the Judicial Powers Act to make it compliant with the latest constitutional amendments, which provided for the establishment of the Inspectorate with the Supreme Judicial Council: a standing body with 11 members who investigate complaints of magistrates’ misconduct, with no right to rule on the substance of judicial acts.

The Supreme Court of Administration and Supreme Court of Cassation are the highest courts of appeal and determine the application of all laws.

The Constitutional Court, which is separate from the rest of the judiciary, interprets the constitution and constitutionality of laws and treaties. Its 12 justices serve 9-year terms and are selected by the president, the National Assembly, and the Supreme Courts.

Principal Government Officials

Last Updated: 2/1/2008

Pres.: Georgi PARVANOV

Vice Pres.: Angel MARIN

Prime Min.: Sergei STANISHEV

Dep. Prime Min.: Emel ETEM

Dep. Prime Min.: Ivaylo KALFIN

Dep. Prime Min.: Daniel VULCHEV

Min. of Agriculture & Forestry: Nihat KABIL

Min. of Culture: Stefan DANAILOV

Min. of Defense: Vesselin BLIZNAKOV

Min. of Economy & Energy: Petar DIMITROV

Min. of Education & Science: Daniel VULCHEV

Min. of Environment & Waters: Djevdet CHAKUROV

Min. of European Affairs: Gergana GRANCHAROVA

Min. of Finance: Plamen ORESHARSKI

Min. of Foreign Affairs: Ivaylo KALFIN

Min. of Health: Radoslav GAIDARSKI

Min. of Interior: Rumen PETKOV

Min. of Justice: Miglena TACHEVA

Min. of Labor & Social Policy: Emilia MASLOROVA

Min. of Natural & Manmade Disasters: Emel ETEM

Min. of Public Admin.: Nikolai VASSILEV

Min. of Regional Development & Public Works: Asen GAGAOUZOV

Min. of Transportation: Peter MOUTAFCHIEV

Chmn., Bulgarian National Bank: Ivan Ganchov ISKROV

Ambassador to the US: Elena POPTODOROVA

Charge d’Affaires, Permanent Mission to the UN, New York: Ivan PIPERKOV

Bulgaria maintains an embassy in the United States at 1621 22nd Street, NW, Washington DC 20008 (tel. 202-387-0174; fax: 202-234-7973).

ECONOMY

Bulgaria's economy contracted dramatically after 1989 with the collapse of the COMECON system and the loss of the Soviet market, to which the Bulgarian economy had been closely tied. The standard of living fell by about 40%. In addition, UN sanctions against Yugoslavia and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged when GDP grew in 1994 for the first time since 1988, by 1.4% and then by 2.5% in 1995. Inflation, which surged in 1994 to 122%, fell to 32.9% in 1995. During 1996, however, the economy collapsed due to shortsighted economic reforms and an unstable and de-capitalized banking system.

Under the leadership of former Prime Minister Ivan Kostov (UDF), who came to power in 1997, an ambitious set of reforms were launched, including introduction of a currency board regime, bringing growth and stability to the Bulgarian economy. The currency board contained inflationary pressures and the three-digit inflation in 1997 was cut to only 1% in 1998. Following declines in GDP in both 1996 and 1997, the Bulgarian Government has delivered strong, steady GDP growth in real terms in recent years. Prime Minister Simeon Saxe-Coburg's economic team of young, Western-educated financiers continued to implement measures that helped sustain stable economic growth and curb unemployment. Measures introduced by the government were targeted at reducing corporate and individual taxes, curtailing corruption, and attracting foreign investment. The government also restructured the country's foreign debt, revived the local stock market, and moved ahead with long-delayed privatization of some major state monopolies. As a result of this progress, in October 2002 the European Commission declared Bulgaria had a “Functioning Market Economy.”

Bulgaria's current government has continued these reforms, and in 2007 the country joined the European Union. According to the World Bank, in 2006 Bulgaria attracted the highest levels of foreign direct investment, as a share of GDP, among Eastern European countries. A growing current-account deficit (estimated to have reached 20% of GDP at the end of 2007) and excessive reliance on foreign capital inflow render the economy vulnerable to external shocks. In early 2007, to attract additional foreign investment, the Bulgarian Government lowered corporate tax rates to 10%, reportedly the lowest rate in Europe. A flat-tax rate of 10% for personal income, in place as of January 1, 2008, will further decrease domestic labor costs and help reduce the share of the “gray” economy. In response to local governments’ demand for financial independence in 2006, parliament passed fiscal decentralization of municipalities, granting them authority over collection and administration of some taxes, thus further enhancing local economic stability. Despite Bulgaria's many marked successes, organized crime and corruption remain problems.

DEFENSE

Bulgaria became a member of NATO on March 29, 2004 after depositing its instruments of treaty ratification. Bulgaria's military is currently undergoing an ambitious restructuring program aimed to bring the army up to NATO standards and modernize equipment. In 2007, constitutional amendments annulled military conscription, thus allowing the Bulgarian army's transformation to an all-volunteer force.

Bulgaria has been an active participant in military operations outside its borders. It currently has company-sized units working with coalition forces in Afghanistan and Iraq and has maintained small contingents of troops deployed with international forces in Bosnia and Herzegovina and Kosovo. It deployed a frigate to Lebanon with UNIFIL in late 2006 and has several military observers serving in support of United Nations missions in Ethiopia, Liberia, and Kosovo. Bulgaria has also expressed its intent to send military observers to Chad in support of the European Union mission.

FOREIGN RELATIONS

Bulgaria became a member of the North Atlantic Treaty Organization on March 29, 2004, and a member of the European Union on January 1, 2007. Bulgaria is a member of the United Nations and in 2002-2003 served a 2-year term as a nonpermanent member on the UN Security Council. Bulgaria served as Chair-In-Office of the Organization for Security and Cooperation in Europe (OSCE) in 2004.

Bulgaria joined the World Trade Organization in 1996. In July 1998, Bulgaria became a full member of the Central European Free Trade Agreement (CEFTA), which called for the reduction of tariffs by 2002 on most industrial and agricultural goods traded between CEFTA countries. Bulgaria has initialed free trade agreements with Turkey, Macedonia, Croatia, Lithuania, Estonia, Israel, Albania, and Latvia.

Bulgaria's relationship with its neighbors has generally been good. Bulgaria has proven to be a constructive force in the region and has played an important role in promoting regional security. Pursuing its initiative as a partner in the South-East European regional cooperation, Bulgaria has taken over the chairmanship-in-office of the South-East European Cooperation Process (SEECP) for the period May 2007-May 2008.

U.S.-BULGARIAN RELATIONS

The year 2003 marked the 100th anniversary of diplomatic relations between the United States and Bulgaria. U.S.-Bulgarian relations were severed in 1950 but were restored a decade later. Bilateral relations between the two nations improved dramatically after the fall of communism. The United States moved quickly to encourage development of multi-party democracy and a market economy. The U.S. signed a Bilateral Investment Treaty in 1994 and gave Bulgaria most-favored-nation trade status in October 1996.

In 1989, the U.S. Congress passed the Support for East European Democracies Act (SEED), authorizing financial support to facilitate development of democratic institutions, political pluralism, and free market economies in the Balkan region. Since 1990, Bulgaria has received over $600 million in SEED assistance. In 2007, after its EU accession, Bulgaria graduated from the SEED program.

In May 2005 the United States and the Republic of Bulgaria signed a Defense Cooperation Agreement, which gives the United States military access to and shared use of several Bulgarian military facilities. The United States military intends to use this access to facilitate joint training with the Bulgarian and Romanian militaries. In February 2007, Bulgaria and the United States signed a treaty on avoidance of double taxation that is expected to further promote U.S. investment in Bulgaria.

American citizens traveling on a U.S. passport for business or tourism purposes can enter and stay in Bulgaria for up to 90 days in a 6-month period without requiring issuance of a visa. Bulgaria hosts the only fully American university in the region, the American University of Bulgaria in Blagoevgrad, established in 1991, drawing students from throughout southeast Europe and beyond. As of 2007, the American University of Bulgaria had over 1,000 students.

In June 2007, President Bush visited Sofia following the first visit of a U.S. President, Bill Clinton, in 1999.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

SOFIA (E) 16 Kozyak Street, 1407 Sofia, Bulgaria, APO/FPO Unit 5740, APO/AE 09750, (359) (2) 937-5100, Fax (359) (2)937-5320; 939-5790/GSO 937-5231/HR, INMARSAT Tel 683-13-1345;683-13-1346, Workweek: M-F 07:00–19:00, Website: http://bulgaria.usembassy.gov.

TRAVEL

Consular Information Sheet

September 20, 2007

Country Description: Bulgaria is a quickly developing European nation undergoing significant economic changes. Tourist facilities are widely available, although conditions vary and some facilities may not be up to Western standards. Goods and services taken for granted in other European countries may not be available in many areas of Bulgaria.

Entry Requirements: A United States passport is required for U.S. citizens who are not also Bulgarian nationals. As of September 1, 2006, U.S. citizens who enter the country without a Bulgarian visa are authorized to stay for a total of 90 days within a six-month period. This law is strictly enforced. An application to extend one's stay beyond the original 90 days can be filed for urgent or humanitarian reasons, but must be submitted to regional police authorities no later than five days prior to the end of the original 90-day period. Travelers who have been in the country for 90 days, and then leave, will not be able to reenter Bulgaria before the six-month period expires. Travelers using official or diplomatic passports must secure visas prior to arrival. Upon entering the country, Bulgarian immigration authorities request that all foreigners declare the purpose of their visit and provide their intended address. U.S. citizens intending to live or work in Bulgaria for more than 90 days within six months (or more than six months within a year) must obtain a “D” visa prior to arrival. The practice of switching from tourist status to long-term status when already in Bulgaria is no longer allowed. Those wanting to do so must leave Bulgaria and apply for a “D” visa at a Bulgarian embassy or consulate. This procedure takes from two to four weeks.

American citizens who marry Bulgarian nationals and want to switch to long-term status must also leave the country, present their marriage license at a Bulgarian embassy or consulate in a neighboring country, and apply for a “D” visa.

The Bulgarian authorities do not consider presentation of a copy of the passport sufficient for identification purposes. Visitors should carry their original passports with them at all times.

For further information concerning entry requirements, travelers should contact the Embassy of the Republic of Bulgaria at 1621 22nd St. N.W., Washington, D.C. 20008; http://www.bulgaria-embassy.org; tel. (202) 387-7969 (main switchboard (202) 387-0174), or the Bulgarian Consulate in New York City at 121 East 62nd Street, New York, NY 10021; http://www.consulbulgaria-ny.org; tel. (212) 935-4646.

Visit the Embassy of Bulgaria web site at http://www.bulgaria-embassy.org for the most current visa information.

Traveling with Bulgarian minors: Bulgarian authorities are particularly strict in matters involving the travel of Bulgarian children. Adults, other than a child's parents, departing Bulgaria with a Bulgarian national (including dual or multinational Bulgarian) child, must present to authorities a certified/ legalized declaration signed by the child's parents authorizing custody for travel purposes. This holds true even if the adult is otherwise related to the child. If the declaration is signed in Bulgaria, certification by a Bulgarian notary public is required. If signed in the U.S., the declaration must be certified by a notary public and the court in the jurisdiction where the notary is licensed. The declaration must then be legalized with an apostille issued by the individual state's Department of State or the Governor's office. Please note Bulgarian authorities do not require such documentation for minors who are not Bulgarian.

Safety and Security: Bulgaria's accession to the European Union has enhanced the overall security environment for tourist and business travelers. However, the country still suffers from many of the ills of a former Eastern Bloc country in transition. Organized crime groups and criminals who specialize in petty crimes and credit card fraud are highly prevalent in Bulgaria's largely cash economy. Petty criminals such as pick-pockets and purse snatchers operate in crowded public areas and on public transportation. Also, technology exists in Bulgaria to clone credit cards and trap ATM cards for later retrieval. Suspected organized crime members often travel in convoys of late-model SUVs and luxury sedans, accompanied by armed men, and frequent expensive restaurants, hotels, and nightclubs.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov, where the current Worldwide Caution Travel Alert, Travel Warnings and Travel Alerts can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada, or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: Petty street crime, much of which is directed against persons who appear to have money or to be foreign, continues to be a problem. Pocket picking and purse snatching are frequent occurrences, especially in crowded markets and on shopping streets. Con artists operate on public transportation and in bus and train stations. Credit cards and ATMs should be used with caution. Be wary of people who approach you at an ATM and offer assistance. Do not give your PIN number to anyone under any circumstances. Travelers should be suspicious of “instant friends” and should also require persons claiming to be government officials to show identification. There have been incidents in which tourists have been drugged or assaulted and robbed after accepting offers of coffee or alcoholic beverages from “friendly” individuals met by “chance” at hotels, the airport, or at bus or train stations. Travelers should be wary of unfamiliar individuals who encourage them to drink or eat products, as these may be tainted with strong tranquilizers (such as valium) that can lead rapidly to unconsciousness. Reporting a crime immediately to the police has helped recover money and valuables on more than one occasion and is recommended. To avoid becoming a victim of more serious crimes, one should use the same personal safety precautions that they would use in large urban areas of the United States.

Travelers should pay special attention to the drink prices at high-end bars and nightclubs. There have been instances of travelers being charged exorbitant prices, especially for champagne and hard alcohol. Bills have been as high as several thousand dollars for drinks, and in some establishments the management may use force to assure payment.

On occasion, taxi drivers overcharge unwary travelers, particularly at Sofia Airport and the Central Train Station. We recommend travelers use taxis with meters and clearly marked rates displayed on a sticker on the passenger side of the windshield. Travelers should be aware that there is no official commission that sets taxi cab rates. Taxi drivers are within their full rights to charge passengers any price they want, provided that it corresponds with the price shown on the windshield sticker. At the airport, there is a clearly marked booth within the arrivals terminal, which arranges for metered taxis at a fair rate. Finding reputable taxis at the Central Train Station is more difficult. It is recommended to inquire about the fare first, to avoid excessive payment if a metered taxi cannot be found. Always ensure that you have and account for all luggage, packages and hand-carried items before you pay and release a taxi. The likelihood of retrieving articles left behind in a taxi is remote. Because pilferage of checked baggage may occur at Sofia Airport, travelers should not include items of value in checked luggage.

Automobile theft is a concern, with four-wheel-drive vehicles and late model European sedans the most popular targets. Very few vehicles are recovered. Thieves smash vehicle windows to steal valuables left in sight. Break-ins at residential apartments occur as frequently as in major cities everywhere. Persons who plan to reside in Bulgaria on a long-term basis should take measures to protect their dwellings. Long-term residents should consider installation of window grilles, steel doors with well-functioning locks, and an alarm system that alerts an armed response team.

Travelers should also be cautious about making credit card charges over the Internet to unfamiliar websites. As recent experience has shown, offers for merchandise and services may be scam artists posing as legitimate businesses. A recent example involves Internet credit card payments to alleged tour operators via Bulgaria-based web sites. In several cases, the corresponding businesses did not actually exist.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: While Bulgarian physicians are trained to a very high standard, most hospitals and clinics, especially in village areas, are generally not equipped and maintained to meet U.S. or Western European standards. Basic medical supplies and over-the-counter and prescription medications are widely available, but highly specialized treatment may not be obtainable. Pediatric facilities are in need of funding and lack equipment. Serious medical problems requiring hospitalization and/or medical evacuation to the United States may cost thousands of dollars. Doctors and hospitals often expect immediate cash payment for health services.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's Internet site at http://wwwn.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. All foreign citizens traveling to Bulgaria should be prepared to present valid evidence of health insurance to the Bulgarian border authorities in order to be admitted into the country. The insurance should be valid for the duration of the traveler's stay in Bulgaria.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Bulgaria is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

The Bulgarian road system is largely underdeveloped. There are few sections of limited-access divided highway. Some roads are in poor repair and full of potholes. Rockslides and landslides may be encountered on roads in mountainous areas. Livestock and animal-drawn carts present road hazards throughout the country, especially during the agricultural season. Travel conditions deteriorate during the winter as roads become icy and potholes proliferate. The U.S. Embassy in Sofia advises against driving at night because road conditions are more dangerous in the dark. Some roads lack pavement markings and lights, and motorists often drive with dim or missing headlights.

Driving in Bulgaria is extremely dangerous. Aggressive driving habits, the lack of safe infrastructure, and a mixture of late model and old model cars on the country's highways contribute to a high fatality rate for road accidents. Heavy traffic conditions have led to a significant increase in “road-rage”accidents. Motorists should avoid confrontations with aggressive drivers in Bulgaria. In particular, drivers of late-model sedans (BMW, Mercedes, Audi) are known to speed and drive dangerously. Motorists should exercise caution and avoid altercations with the drivers of such vehicles, which may be driven by armed organized crime figures. In some cities traffic lights late at night blink yellow in all directions, leaving rights-of-way unclear and contributing to frequent accidents.

Heavy truck traffic along the two-lane routes from the Greek border at Kulata to Sofia and from the Turkish border at Kapitan Andre to Plovdiv creates numerous hazards. Motorists should expect long delays at border crossings. A U.S. state driver's license is valid in Bulgaria only when used in conjunction with an International Driving Permit. If pulled over by a police officer, motorists should remember that, under Bulgarian law, police officers may not collect fines on the spot; they may only issue a ticket with the fine to be paid at the motorist's local regional tax office.

Buses, trams, and trolleys are inexpensive, but they are often crowded and of widely varying quality. Passengers on the busiest lines have reported pick pocketing, purse slashing, and pinching. The use of seat belts is mandatory in Bulgaria for all passengers, except pregnant women. Children under 10 years of age may ride in the front seat only if seated in a child car seat. In practice, these rules are often not followed. Speed limits are 50 km/h in the cities/towns, 90 km/h out of town, and 130 km/h on the highways. For motorcycles, speed limits are 50 km/h in the cities/towns, 80 km/h out of town, and 100 km/h on the highways.

Motorcyclists must drive with helmets and with lights on at all times. At crossings that are not regulated, the driver who is on the right has the right-of-way, but this rule, too, is frequently ignored. Drivers may be charged with driving under the influence of alcohol with a blood level as low as 0.05 percent. Right turns on red lights are not permitted unless specifically authorized. The penalties for drivers involved in an accident resulting in injury or death range from a 25 U.S. Dollar fine up to imprisonment for life. A new law requires the use of headlights day and night from November 1st through March 31st.

The most generally encountered local traffic custom is a driver flashing high beams, which usually means that a traffic police post is ahead. In case of emergency, drivers should contact the police at telephone number 166 and/or Roadside Assistance at telephone number 146. For an ambulance, please call 150. The fire department can be reached at 160. For specific information concerning Bulgarian driving permits, vehicle inspection, road tax, and mandatory insurance, please contact the Bulgarian Embassy via the Internet at www.bulgaria-embassy.org. Visit the web site of the country's national tourist office at http://www.bulgariatravel.org.

Note: the latter web site is available in the Bulgarian language only.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Bulgaria's Civil Aviation Authority as not being in compliance with International Civil Aviation Organization (ICAO) aviation safety standards for the oversight of Bulgaria's air carrier operations. For more information, travelers may visit the FAA's Internet web site at http://www.faa.gov.

Special Circumstances: Bulgaria is still largely a cash economy. Due to the potential for fraud and other criminal activity, credit cards should be used sparingly and with extreme caution. There have been reports of false ATM fronts on bona fide machines that capture cards and PINs for later criminal use, including unauthorized charges or withdrawals. In connection with such scams, travelers should be extremely wary of friendly bystanders near ATMs who offer assistance. Any time a card is not returned the traveler should immediately report the card as lost/ stolen to the card-issuing company.

Visitors may exchange cash at banks or Exchange Bureaus, but they should know that Exchange Bureaus sometimes post misleading rate quotations that confuse travelers. People on the street who offer high rates of exchange are usually con artists intent on swindling the unwary traveler. Damaged or very worn U.S dollar bank notes are often not accepted at banks or Exchange Bureaus. Major branches of the following Bulgarian banks will cash travelers’ cheques on the spot for Leva, the Bulgarian currency, or another desired currency: Bulbank, Bulgarian Postbank, Bio-chim, First Investment Bank, and United Bulgarian Bank (UBB). UBB also serves as a Western Union agent and provides direct transfer of money to travelers in need. There are also many Western Union branches in major towns and cities. Most shops, hotels, and restaurants, with the exception of the major hotels, do not accept travelers’ cheques or credit cards. Only some local banks can cash U.S. Treasury checks and the payee may need to wait up to a month to receive funds.

Corruption remains an important concern of the Government. The Commission for Coordinating of the Activity for Combating Corruption manages the efforts of each government agency's internal inspectorate in fighting public corruption and engages in public awareness campaigns. Complaints of public corruption can be made to it at the Ministry of Justice, 2A Knyaz Dondukov Blvd., 1055 Sofia, Bulgaria, email: acc@government.bg, 359-2-980-9213, 359-2-923-7595, 359-2-940-3630 or to the Ministry of Finance hotline: 0800180018.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Bulgaria's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Bulgaria are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living or traveling in Bulgaria are encouraged to register with the U.S. Embassy through the State Department's travel registration web site, and to obtain updated information on travel and security within Bulgaria. Americans without Internet access may use a public computer at the U.S. Embassy to register. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy is located at 16, Kozyak St., Sofia1407; tel.: (+359 2) 937-5100; fax (+359 2) 937-5209; web site: http://sofia.usembassy.gov.

Questions regarding consular services may be directed via email to: niv_sofia @state.gov (for non-immigrant visa matters); iv_sofia@ state.gov (for immigrant visa matters) and acs_sofia@state.gov (for American Citizen Services matters).

International Adoption

March 2006

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Patterns of Immigration: Please review current reports online at http://travel.state.gov/family.

Adoption Authority:
Ministry of Justice
Slavyanska Street # 1, Sofia 1000
Tel: (359 2) 923-7303
(Bulgarian only)
http://www.mjeli.government.bg/
(Bulgarian only)

Eligibility Requirements for Adoptive Parents: Prospective adoptive parents may be married or single. Adoptive parents must be at least fifteen years older than their adoptive children, but no more than forty-five years older.

Residency Requirements: There are no residency requirements to complete an intercountry adoption in Bulgaria. However, prospective adoptive parents are expected to spend five days with their adoptive child before the orphanage director will release the child.

Time Frame: If there is a child available for intercountry adoption, it normally takes several months to complete the adoption process in Bulgaria; however, there are very few children on the waiting list, which means that the adoptive parents may wait many months and even years until the Ministry of Justice offers them a Bulgarian orphan for adoption.

Adoption Agencies and Attorneys: Prospective adoptive parents must use a Bulgarian-licensed U.S. adoption agency or a Bulgarian adoption agency accredited by the Bulgarian Ministry of Justice. The Ministry of Justice is currently reviewing license applications for several U.S.-based adoption agencies. For a complete list of adoption agencies accredited by the Bulgarian Ministry of Justice, please visit the web site of the U.S. Embassy in Sofia, Bulgaria at http://bulgaria.usembassy.gov/adoption3.html.

Adoption Fees: The U.S. Embassy in Sofia is aware of the following Bulgarian fees for adoption. These fees are subject to change. All fees are given in Euros as the Bulgarian currency is linked to the Euro.

• Application fee at the MOJ: 100.00 Euros
• Court fee: 750.00 Euros
• Transcript of the Court Decree: 25.00 Euros
• Passport fee for child under 14: 7.00 Euros
• Passport fee for child over 14: 14.00 Euros
• Birth Certificate fee: 3.00 Euros

In addition to the above, U.S. adoption agencies may charge fees for the services they provide.

Adoption Procedures: U.S. citizens interested in adopting a child from anywhere outside the United States should first contact the U.S. Department of Homeland Security's U.S. Citizenship and Immigration Services (USCIS) division in order to complete the U.S. pre-adoption requirements. U.S. citizens specifically interested in pursuing an adoption from Bulgaria must also contact a Bulgarian or U.S. adoption agency which has been licensed by the Bulgarian Ministry of Justice. All required documents must be deposited at the Ministry of Justice by the accredited agency. If the prospective parent's/parents’ application is accepted, their names are placed on a registry.

Separately, the Bulgarian Ministry of Justice (MOJ) also maintains a registry of Bulgarian children eligible for intercountry adoption. Under Bulgarian law, a child may appear on this registry only if three Bulgarian families have declined to adopt him/her.

Important Note Regarding the Two Registries: Usually, there are more than 1,000 families from Europe and North America on the prospective parents’ registry and only a handful of children available for intercountry adoption. Most of the children have serious medical conditions. The Bulgarian government does not process prospective adoptive parents’ applications in chronological order. Priority is given to persons willing to adopt a handicapped child.

The Adoption Council within the MOJ reviews the registries of prospective parents and available children, including all relevant documentation, and proposes a match. The MOJ provides the adoptive parents through their accredited agency photographs of the child and information about his/her medical condition. If the family declines to adopt a specific child, the Council should be informed within two months and a match with different child will be offered. Once the prospective adoptive parent(s) select a child and the Council approves the application, the case is forwarded to the Minister of Justice for final approval. When the Minister signs the parents’ application, the paperwork is transferred directly to Sofia City Court, which sets a date for a court hearing. The judges take into consideration the MOJ's referral and review the documentation related to the adoption process. If they require additional documents, the court sets a date for a new hearing. After all requirements have been met, the court grants custody of the child to the adoptive parents.

One or both of the adoptive parents should plan on making a trip to Bulgaria, since they must spend at least five days with their adopted son or daughter after the MOJ has offered them a child.

Once the courts rules that custody of the child is given to the adoptive parents, their Bulgarian representative must apply for a new birth certificate. After the new birth certificate has been issued, the representative has to apply for a passport of the child. The process of obtaining a birth certificate and a passport takes 3–4 weeks.

The parents are not required to do anything in order to apply for those two documents. Their accredited adoption agency authorizes an attorney to represent them at court and deposit documents at various government entities.

Required Documents:

• Application (personal data, short family history, financial situation). (The application is a letter prepared by the accredited adoption agency).
• Document certifying that the adoptive parent(s) has/have not been deprived of custody rights.
• Home Study.
• Medical Certificate(signed by a general practitioner).
• Police Certificate.
• Marriage Certificate.
• Approval by the USCIS (I-171H).

All documents should be submitted in the original. They must be translated and apostilled.

Embassy of Bulgaria
1621 22nd Street, N.W.
Washington, D.C. 20008
Tel: 202-387-0174 (main), 202-387-7969 (consular section)
Fax: 202-234-7973
Email: office@Bulgaria-Embassy.org,
Consulate@Bulgaria-Embassy.org
http://www.bulgaria-embassy.org

Bulgaria also has Consulates General in New York City, Chicago and Los Angeles.

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

U.S. Embassy
16 Kozyak Street
Sofia 1407
Bulgaria
Tel: (359 2) 937-5100
e-mail: iv_sofia@state.g

Additional Information: Specific questions about adoption in Bulgaria may be addressed to the U.S. Embassy in Sofia, Bulgaria. General questions regarding intercountry adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.