Bulgaria: Profile - Economy, Geography, History
This provides some general information about Bulgaria, its economy, politics and people.
GENERAL STATISTICS
| Land | Freshwater | Total Area |
|---|---|---|
| 110,631 | 261 | 111,000 |
| Administrative Provinces | Municipalites | Cites and Towns | Villages |
|---|---|---|---|
| 28 | 263 | 24 | 5091 |
Official Language
Bulgarian. Other European languages such as English, French, German, Russian, Spanish are spoken by 40% of the population.
| City | Geographic Position | Population |
|---|---|---|
| Sofia | West Inland | 1,192,031 |
| Plovdiv | Mid-South Inland | 713,060 |
| Varna | Black Sea Cost - North-East | 459,931 |
| Bourgas | Black Sea Coast - South-East | 420,618 |
| Rousse | North Central Danube | 162,128 |
| Total | Average Annual Growth | Urban Population % | Gender Ratio M/F |
|---|---|---|---|
| 7,845,499 | -5.8/1000 | 69.7 | 1000/1056 |
| Labour Force | Employment | Employment, IV quarter |
|---|---|---|
| 3,248,600 | 2,704,400 | 2,825,600 |
| Male | Female | Average | Birth Rate | Death Rate |
|---|---|---|---|---|
| 68.5 | 75.2 | 71.8 | 8.5/1000 | 14.3/1000 |
| Bulgarians | Turks | Roma | Other | Undetermined |
|---|---|---|---|---|
| 83.9 % | 9.4 % | 4.7 % | 0.9 % | 1.1 % |
| Orthodox Christians | Muslims | Others | Not Specified | Undetermined |
|---|---|---|---|---|
| 6,639,870 | 966,978 | 14,937 | 283,309 | 24,807 |
Source: National Statistical Institute
QUALITY OF LIFE
A Stable Political System
Bulgaria is a parliamentary republic where the three main powers - legislative, executive, and judicial - are separated and independent.
According to the Constitution, the President is the head of state. The President embodies the unity of the nation and represents the Republic of Bulgaria in its international relations. He is elected directly by the voters for a term of five years. The President is the Supreme Commander of the armed forces, presides over the Consultative National Security Council and performs a number of other official and representative functions. The incumbent president is Georgi Parvanov.
The National Assembly (the Parliament) is vested with legislative power and exerts parliamentary control. It consists of one chamber and is elected for a period of four years. The total number of deputies is 240. The National Assembly elects the Council of Ministers, which consists of 20 Ministers. The Council of Ministers directs and pursues the domestic and foreign policy of the country, ensures public order and national security, and exercises overall guidance over the state administration and Armed Forces.
Since the parliamentary elections in June 2001 the incumbent Prime Minister is the former King, Simeon Saxe-Coburg Gotha, and the 'National Movement Simeon II' has been ruling the country in a coalition with the Movement for Rights and Freedoms.
The judiciary in Bulgaria is independent. Its system includes investigation, prosecution and the courts. Justice is administered within a framework of civil, penal and administrative cases. Court proceedings are organised in three instances: first instance, appellation and cessation.
Cost of Living
Bulgarian cities consistently score well in cost-of-living surveys compared to other European and international urban centres. Consumer prices in Bulgaria will remain stable with an expected inflation rate of 5% in 2004.
Housing
In 2003 Bulgaria had over 2.8 million households. Over three-quarters of dwellings in Bulgaria are owned by the occupant.
Public Safety
Bulgarian cities are among the safest in Europe. Both homicide and robbery rates are well below those of European cities of comparable size. The region's urban centres strive to maintain their safety record and visitors often comment on the cleanliness of Bulgarian cities and the friendliness of their residents.
GEOGRAPHY
Bulgaria, located in Southeast Europe, on the geographical hub of the Balkan Peninsula, is one of the most dramatically diverse nations in Europe. Its overall area is 111,000 km2 at a median elevation of 470m. The Danube river forms the natural boundary to the north with Romania; the country borders Greece and Turkey to the south, Macedonia and Serbia to the west, and the Black Sea to the east.
The country's environment is varied and picturesque, and is comprised of large plains, rolling hills, seashore, and high mountains dominated by the Stara Planina (the Balkan), Rila, Pirin and the Rhodope ranges.
Bulgaria's climate is temperate continental, milder in the south due to the impact of the Mediterranean. The Black Sea exerts its influence over the eastern regions where summers and winters are moderate compared to the rest of Bulgaria. The four seasons are distinctly differentiated.
Sofia is the capital city of Bulgaria. The other large cities are Plovdiv (Bulgaria's second largest), Varna and Bourgas on the Black Sea, Rousse and Vidin on the Danube, and Blagoevgrad in the southwestern area of the country. The town of Veliko Turnovo is the ancient Capital of Bulgaria.
TERRITORIAL STRUCTURE AND ADMINISTRATIVE DIVISION
The territory of the Republic of Bulgaria is divided into municipalities and regions. Municipalities are the basic administrative and territorial units with effective self-government. The mayors of the municipal councils are elected locally in accordance with a proportional system for terms of four years. The country is divided into 263 municipalities with average population of 32 000 and area of 424 km2. Each municipality is comprised of approximately 20 settlements; the total number of municipal services in 2004 is 3 860.
A region (oblast) is an administrative and territorial unit for the implementation of regional policy and the state government in the area, and for ensuring correspondence between national and local interests. Bulgaria is divided into 28 regions, including the capital city of Sofia, which has the status of a separate region. The average territory of a region is 3 964 km2, and the average population is 296 000. Each region has a governor appointed by the executive authority.
In accordance with commitments assumed during the negotiations for accession of the country to the EU, Bulgaria has assumed a territorial classification complying with the criteria as established in the Nomenclature of Territorial Statistical Units of EUROSTAT. The territory of the country is divided into six regions for the purpose of regional development planning.
HISTORY TIMELINE
The Bulgarian state has more than 1300 years of history.
Key Dates
- 681: Khan Asparukh, of the Dulo clan, established the Bulgarian state.
- 865: Bulgaria's ruler Prince Boris, introduced Christianity in Bulgaria.
- 893-927: The rule of King Simeon, whose reign is referred to as the "Golden age of the Bulgarian state". Bulgaria's boundaries were expanded to three seas: the Black Sea, the Sea of Marmara and the Adriatic Sea. At that time, Bulgaria was among the largest states in Europe.
- 1396: Beginning of Ottoman rule over Bulgaria, which was at that time split into feudal fiefdoms. The period of Ottoman rule continued for almost five centuries.
- 1876: The April uprising broke out and was mercilessly crushed by the Ottoman rulers; the attention of the whole of Europe was focused on the tragic fate of the Bulgarians.
- 1878, March 3: The San Stefano Peace Treaty was signed. Bulgaria was liberated from the Ottoman rule after Russia won the war against Turkey.
- 1879: Adoption of the Bulgarian Constitution, according to which Bulgaria was proclaimed as a parliamentary monarchy.
- 1885: Sept. 6: The Union of Eastern Rumelia with the Bulgarian Principality.
- 1944: A communist regime was established in Bulgaria towards the end of World War Two; two years later Bulgaria was proclaimed a people's republic.
- 1989: Democratic parliamentary rule was restored in Bulgaria. Former parties were resurrected, and new parties and movements were established. A Great National Assembly was convened in Veliko Turnovo, which adopted a new Constitution of the Republic of Bulgaria.
- 1999: Bulgaria was invited to start negotiations on its accession to the European Union.
- 2004: Bulgaria became a member of NATO.
A TREASURY OF ANCIENT CULTURE
Bulgaria is a land blessed with a deeply rich history and culture. Long before the founding of the state of Bulgaria, the country's territory was inhabited by Thracians, Greeks, Romans, Slavs and other ancient tribes. A unique gold treasure dating back to the 4th millennium BC was discovered in the chalcolithic necropolis near the Black Sea city of Varna. Scholars have identified it as one of the oldest gold treasures in the world. Bulgaria has preserved many traces of Thracian culture, including the Kazanluk tomb, the temple at Sveshtari, and a cult centre near Starrossel. Recently, the Thracian sacred city of Perperikon was discovered.
Sofia, Plovdiv, Varna and other cities still preserve monuments of Roman and Hellenic culture. Bulgaria has also conserved over 100 medieval Eastern Orthodox churches and monasteries. During the five century long Ottoman domination, these holy places were centres of Bulgarian literature and culture. The best known among them include the Rila and Bachkovo monasteries: genuine strongholds of Christian faith and Bulgarian spirit, culture and spirituality.
Seven cultural and historical monuments in Bulgaria, including the Madarra Horseman, the town of Nessebar, the rock churches of the village of Ivanovo and the Kazanluk tomb, are listed as UNESCO World Heritage Sites.
Bulgaria is also known for its mysterious folklore and musical traditions. A recording of a Bulgarian folk song from the Rhodope region was included in the Gold Record on board the Voyager space probe.
BULGARIA ON ITS WAY TO THE EU
| Time | Event | Result |
|---|---|---|
| June 2004 | Closure of the negotiations chapters | done |
| 25 April 2005 | Signing the Accession Treaty | done |
| 11 May 2005 | Ratification of Accession Treaty | done |
| 1 January 2007 | Full EU membership |
Bulgaria began negotiation procedures on the 30 chapters of the Accession Treaty in 2002 and completed this in June 2004. Romania completed its negotiations in December 2004. President Georgi Parvanov, Prime Minister Simeon Saxe-Coburg, Foreign Minister Solomon Passy and EU-Affairs Minister Meglena Kuneva signed the EU Accession treaty on 25 April 2005 - Romania signed at the same ceremony. The Bulgarian Parliament ratified the signatures with 231 votes in favour, with 1 vote against and 2 abstentions. It is likely that Bulgaria and Romania will enter the European Union together on 1 January 2007.
According to the regular European Commission reports on Bulgaria's progress towards accession, the country meets the political criteria adopted in Copenhagen and has established a functioning market economy. The European Union has recognised Bulgaria's role as a factor of peace and stability in Southeast Europe. The Commission report for 2003 emphasised that Bulgaria's economy will be capable in the near future to manage any competitive pressure and EU market alignments.
| Gross Domestic Product (GDP) | 2004 | 2003 | 2002 |
|---|---|---|---|
| GDP growth rate: | 5.6% | 4.3% | 4.8% |
| Nominal GDP | 2.41 Trillion USD | 1.98 Trillion USD | 1.55 Trillon USD |
| GDP Per Capita | 3,101 USD | 2,538 USD | 1,970 USD |
| Gross Added Value | |||
| Agriculture | 10.9% | 11.4% | 12.1% |
| Industry | 30.0% | 30.0% | 29.1% |
| Services | 59.1% | 58.6% | 58.8% |
| Major Macroeconomic Indicators | |||
| Industrial Output | 5.3% | 7.1% | 4.6% |
| Consumption | 4.8% | 6.8% | 4.1% |
| Inflation (average annual) | 4.0% | 2.3% | 5.8% |
| Export | [n/a] | 8.0% | 6.2% |
| Import | [n/a] | 14.8% | 4.7% |
| Unemployment | 12.2% | 13.5% | 16.3% |
ECONOMIC PERFORMANCE
Bulgaria has a diversified economy with strength across a range of sectors. This diverse economic base guarantees firms easy access to domestic and neighbouring country supplies and services. The growth of the manufacturing sector is 7.1% and the growth of services -3.5%. The top three manufacturing industries are wood processing, metal products and food processing. In 2004 the Bulgarian economy grew by 5.6%. Real GDP is expected to continue to grow by 5% per annum in 2005, inflation should remain modest and unemployment is likely to continue to fall (see Bulbank economic review).
FDI (Foreign Direct Investment) has been extremely strong (FDI/GDP 10.9% in 2004 - far higher than any EU or an other Balkan country) and is likely to remain so, reflecting the confidence of foreign investors in Bulgaria's continued economic strength (see this report).
Global political and economic uncertainties continue to represent a risk to Bulgaria's outlook. However, the essential conditions for stronger growth are in place and business investment is expected to gain strength in the second half of the year as firmer economic growth takes hold.
Markets
Bulgaria will be an integral part of the European economy allowing easy access to a market of 415.2 million consumers.
International Trade
Bulgaria's exports continue to increase at an average annual rate of 8.0% for 2003. The country has established trade agreements and technical assistance provisions with numerous countries and is committed to significantly increasing trade with the EU and the US as part of its overall export strategy.
Labour Force
Bulgaria's workforce is highly skilled- with internationally recognised aptitudes in science, engineering, mathematics, and finance. In 2002. 50 214 had completed their high education. Most college graduates speak 1-2 European languages.
Industry
Industrial output in 2002 rose by 4.6%, as compared to 2000, and increased dramatically in 2003 by over 7.1% - the highest in SE Europe.
The Government's industrial policy emphasises high-growth by restructuring the industrial sector, improving the overall business environment, creating incentives for the development of high-tech industries, exports, and foreign investments. Major efforts have been invested in stimulating scientific and applied research, innovations and new technologies which will bring Bulgaria's economy closer to the level of the EU member states.
Investments
The amount of investments made in Bulgaria in 2003 amounted to approximately USD 4.6 billion. The bulk of these investments were made by Bulgarian investors -USD 2.3 billion, with 20% of the investments concentrated in the sphere of tourism, according to data released by the Foreign Investment Agency.
The volume of foreign investments in 2002 stood at USD 873.7 million. For the first nine months of 2003 alone, the volume of foreign investments stood at USD 864 million, whereas the Foreign Investment Agency forecasts a total of USD 1.6 billion for the whole of 2003.
The legislative framework for foreign investments is set by the Investment Promotion Act. This instrument lays down the strategy towards supporting investment efforts in this country while guaranteeing equal treatment of both foreign and local investors.
Transferability of Capital
A Free Market & A Secure Currency
Bulgaria has a free market mixed economy and open financial markets. There are no legal constraints on the transfer of profits, royalties or fees from Bulgaria, or on the repatriation of invested capital.
The Bulgarian leva is pegged to the EURO and subject to exchange controls by a Currency Board. Bulgaria's Council of Ministers and Central Bank (BNB) sealed on 25 November 2004 an agreement on the adoption of the Euro as an official currency in 2009/2010, following entry to the European Union in 2007. The agreement signed by Finance Minister Milen Velchev and Ivan Iskrov, Bulgarian National Bank Governor, envisages that the act of euro adoption will automatically make Bulgaria join the Economic and Monetary Union (EMU). Bulgaria will enter the common Euro zone with the current currency rate of BGN 1.95 for EUR 1, the landmark documents says.
Business Incentives
Bulgaria welcomes and encourages foreign investment. Business incentives are, on the whole, available to foreign investors on the same basis as they are to local investors.
Tourism
Bulgaria speaks to the visitor like no other country in Europe. It maintains a magical Old World village charm combined with majestic mountains, white sandy beaches, and a temperate-continental climate.
World-class ski and sea resorts are now attracting record numbers of tourists. The number of foreign visitors in 2003, exceeded 4 million (17.9% increase compared to 2002). In the first two months of 2004, Bulgaria was visited by more than 400 thousand foreigners, representing an increase of over 25% on the same period in 2003.
The number of Bulgarians who travelled abroad in 2003 was 3.4 million, and during the first two months of 2004 was 503,000.
The number of tourists from the EU member states who visited Bulgaria during 2003 stood at 1.6 million, which is 25% more than the same period of 2002. For the first two months of 2004 the rate of EU-tourists rise by 52% compared to the same period of 2003.
The numbers of British tourists visiting Bulgaria has risen from 110,000 in 2002 to 160,000 in 2003 (+43%) and to 260,000 in 2004 (+62%).
Source: WTO/OMT European Travel CommissionICT
After a serious decline in the first years following the transition to a market economy, the ICT sector is gaining considerable strength and now numbers over 4,350 actively operated companies. Although most of the ICT companies are small and medium enterprises, they have managed to harness the talents of many young experts to create high quality products that compete in the global marketplace. The hardware industry is comprised of computer and system assembling, digital and analog printed circuit design, PCB manufacture and analogue engineering. Software development and other services include customised software, internet solutions and applications, multimedia, wireless applications, quality assurance, computer system software, networking software and WEB design. In 2003 ICT sector sales climbed to EUR 2,324 million. A significant portion of this amount, EUR 1,937million, can be. attributed to telecommunication companies.
In 2004, ICT companies worked with the government to elaborate a National ICT Strategy and Action Plan for further improving the international competitiveness of all Bulgarian ICT companies. Future opportunities for the Bulgarian ICT sector are enhanced by the ever-evolving skills of the young technocratic class coupled with direct access to globalised markets as supported by the NATO (2004) and EU (2007) accessions.
NGO SECTOR
There are approximately 1900 active NGOs (non-governmental organisations) in Bulgaria. including economic, educational, political and religious organisations. Most of their services embrace civil society development, social welfare, environmental protection, human rights, economic development and education.
The advocacy capacity and infrastructure of the sector have improved over the past ten years. NGOs have managed to provide greater input in legislative and policy decisions at both national, regional, and local levels. Support networks and centres have strengthened, and information-sharing and training activities have gained considerable momentum, In addition to NGOs, Bulgaria boasts more than 300 professional and branch associations, of which the Bulgarian Chamber of Commerce and Industry and the Bulgarian Industrial Association are the most influential.
BULGARIAN MEDIA
Freedom of expression in Bulgaria is guaranteed by the Constitution. The robust media sector is predominantly private and pluralism is strongly evident. Today 220 private radio stations and 132 private television channels reach the public.
Bulgarian National Television and Bulgarian National Radio are both state managed and enjoy high levels of trust among the population. The Bulgarian News Agency, founded more than l00 years ago, is still the most prestigious and professional information agency in the country.
The importance of the internet as a useful source of information in Bulgaria has been increasing. Over the past few years, new portals and electronic newspapers have emerged in the Bulgarian web-space. The most popular of them are Mediapool.bg, News.bg (for finance news), Netinfo.bg, Novinite.com, Focus-news.net and Dnevnik.bg. Some provide English pages (clickable links):
| Station | Location | Telephone | Website |
|---|---|---|---|
| Bulgarian National Television | Sofia, 29 San Stefano St. | +359 2 /9444999 | www.bnt.bg |
| Bulgarian National Radio | Sofia ,4 D, Tsankov Blvd. | +3592 /93361 | www.bnr.bg |
| bTV Television (Balkan News Corporation) |
Sofia, I Bulgaria Sq. | +3592 /9176800, 9176830 | www.btv.gb |
| Darik Radio AD | Sofia, 82 Knyaz AI, Dondukov Blvd. | +3592 /9849840 | www.darik.net |
| "24 chassa" Newspaper | Sofia, 47 Tsarigradsko Shosse Blvd. | +359 2/9422514 | e-mail: 24h@zgb.bg |
| "Standart" Newspaper | Sofia, 113A Tsarigradsko Shosse Blvd. | +3592/9752535 | e-mail: standart@mobiltelbg |
| "Trud" Newspaper | Sofia. No. 119, Ekz. Yosif St. | +3592/9214100 | e-mail: trud@zgb.bg |
| "Dnevnik" Newspaper | 1000 Sofia. No 16, Ivan Vazov Str. p.box 1316 | +359 2 /9376300 | e-mail: dnevnik@dnevnikg |
| "Pari" Newspaper | Sofia, 11 Industrialna St. | +3592 /9178702 | e-mail: pari@pari.bg www.news.pari.bg |
STATE INSTITUTIONS
Clickable links are to English language websites:
| Name | Location | Telephone | Website |
|---|---|---|---|
| The Office of the President of the Republic of Bulgaria | Sofia, 2 Dondukov Blvd. | +359 2 / 923 9333 | www.president.bg |
| National Assembly of the Republic of Bulgaria | Sofia, 1 Narodno sabranie Square | +359 2 I 93 939 | www.parliament.bg |
| Council of Ministers of the Republic of Bulgaria | Sofia, 1 Dondukov Blvd. | +359 2 /940 2999 | www.government.bg |
| Ministry of Foreign Affairs | 1000 Sofia, 2 Alexander Zhendov St. | +359 2/ 948 22 18 | www.mfa.government.bg |
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