Business and Economics
 Before World War II, Bulgaria was a traditional
agricultural country. After the war, as in other Eastern
European countries, a rapid industrialization took place,
with a focus on, among other things, the heavy industry. Two
leading industrial zones were established: Sofia-Pernik area
and Maritsa's upper valley around Plovdiv. In addition, as
the first "new socialist" city in Eastern Europe,
Dimitrovgrad was added to the Marbas lignite field. Here, an
important chemical industry center was gradually developed.
By the end of the 1980s, the Bulgarian economy had
deteriorated sharply; production decreased, inflation rose
and unemployment was high. Furthermore, in the early 1990s,
the country was severely affected by UN sanctions on what
was then Yugoslavia through non-export earnings.
To clean up the economy, privatization programs and
austerity measures were planned. The economy recovered and
many new small businesses were started. In 2003, about 75
percent of the economic activity was conducted under private
management. Similarly, unemployment fell during the first
half of the 1990s. Foremost, it was the services and
services sector, with the tourism industry as an important
element, that developed. The country was hit hard by the
international financial crisis of 2008–09, which coincided
with the EU having a structural support of EUR 500 million
as a result of Bulgaria not being able to cope with
widespread corruption and a growing informal sector. The
latter still accounts for over 30 percent of the country's
economy.
Agriculture, forestry and fishing
According to
COUNTRYAAH, Bulgaria has fertile soils. About half of the country's
area is usable land. The areas with the most intensive
agriculture, with extensive production of maize, wheat,
barley and sugar beet, are the plateau at the far north
(predominantly black soil) and the east drumel lowland
around the river Maritsa (brown and black soil). Vineyards,
often privately owned, are found in both the northern and
southern parts of the country, and wine exports have
increased significantly in recent years. In the middle of
the country, between the Balkans and Sredna mountains, roses
are grown for perfume production. Furthermore, there is
considerable cultivation of tobacco, sunflowers, soybeans
and cotton. Yogurt and sheep cheese are well-known products
from Bulgaria. Agriculture, which was the dominant industry
before the Second World War, today, together with fishing
and forestry, employs only 7 percent of the labor force.
Intensive livestock management with cattle and pigs
occurs mainly in the plains areas in the south, sheep
farming in the mountainous and arid areas.
Forests cover 1/3 of Bulgaria's area (with the most
important forest areas in the Rila – Rodopi massif, the
Pirin mountains and the Balkan mountains), but deforestation
with consequent soil erosion has led to the import of raw
material for the timber and pulp industry.
Most of the Bulgarian fishing takes place in the Black
Sea, but if you look at the quantity, catches made in the
Atlantic dominate. But both forestry and fishing are
economically insignificant for Bulgaria.
The Bulgarian agriculture of the Middle Ages was
characterized by small units (63 percent of users in the
mid-1930s had less than 5 ha and only 1.4 percent more than
20 ha), low productivity and simple tools. After the
socialist takeover of power, as in other parts of Eastern
Europe, a careful collectivization first took place. The big
change came for Bulgaria in 1950. During this year, 1/3 of
the cultivated land went into collective operation. Over the
years, the units have grown larger, and since 1970 almost
300 so-called agro-industrial complexes have been created,
which also include mills, dairies, slaughterhouses and
canning industries. In 1979, an Agro-Industrial Union took
over the role of the Ministry of Agriculture as responsible
for agriculture, the food industry and the production of
agricultural machinery. Private grants of up to 1 ha per
household were allowed. These covered a total of 600,000 ha
and account for about 1/4 of the country's entire
agricultural production. Following the fall of communism, a
slow privatization and restructuring occurred with a return
to market economy during the 1990s. But ownership issues
have slowed down this process, and agriculture is still
characterized by a number of overly small and unprofitable
farming units. As a result, agricultural production has
fallen sharply. and agriculture is still characterized by a
plethora of too small and unprofitable farming units. As a
result, agricultural production has fallen sharply. and
agriculture is still characterized by a plethora of too
small and unprofitable farming units. As a result,
agricultural production has fallen sharply.
Commodity Funds
Bulgaria produces a large number of minerals but to an
extent that is of only domestic or regional importance.
Domestic minerals account for 70 percent of the raw
materials for the metal industry. Iron ore mining with mines
in the Sofiabäckenet and Sredna mountains was significant
until 2008. Lead and zinc ore is mined in the eastern part
of the Rodopi Mountain and manganese near Varna. Copper ore
is found in the Pazardzhik district and in the Balkan
mountains. Relatively large amounts of rock salt are also
extracted.
Bulgaria has some limited quantities of most energy raw
materials. Coal is the most important domestic fuel, but for
the most part it is relatively low-grade lignite in the
eastern Maritsa basin and the Sofia – Pernik area. Small
quantities of oil are found in the Pleven area and in the
Black Sea and natural gas on the Danube plain and in the
Black Sea.
Energy supply
Domestic energy sources cover about half of the country's
needs and are mainly coal and nuclear energy. About 10
percent (2009) of electricity generation comes from the
almost 100 hydropower plants. Thermal power plants
(primarily coal-fired) account for just over 50 percent of
electricity. Fossil fuels account for about 2/3 of energy
production, nuclear energy for 20 percent and renewable
fuels for about 14 percent. Wind power is under strong
expansion with the aim of reaching 16 per cent of energy
production from renewable sources by 2020. Bulgaria is a net
exporter of electricity equivalent to about 10 percent of
production.
The country's only nuclear power plant is located in
Kozloduj on the Danube and accounts for about 1/3 of
electricity production. Four of its six reactors were taken
out of service for safety reasons upon entry into the EU.
The construction of a second nuclear power plant in Belene,
also at the Danube, has been completed due to funding
problems and the reactor started is planned to be relocated
to Kozloduj.
Less than 1 percent of the total need for natural gas and
oil is produced domestically. Bulgaria is connected to the
Russian oil pipeline network and is an important transit
country for Russian oil from the Black Sea to the
Mediterranean. It is also an important transit country for
Russian gas to Turkey, Greece and Northern Macedonia. A
number of gas and oil pipelines have been designed to meet
the need, including a gas pipeline from Turkey with the aim
of reducing European dependence on Russian gas.
Industry
Before World War II, Bulgaria was little industrialized.
The food and textile industry accounted for just over 3/4 of
total industrial production. During the communist era, an
investment was made in the engineering, metallurgical and
chemical/petrochemical industries and in the 1970s and
1980s also in the electrical and electronic sectors. Among
the products of the engineering industry should be mentioned
mainly machines for various industrial branches and for
agriculture, vessels (in Varna) and components for Soviet
and Czechoslovak cars (assembly plant in Plovdiv).
The chemical and petrochemical industries are mainly
concentrated in the oil fields at Pleven and Burgas and in
the "new socialist" city of Dimitrovgrad. They manufacture
here, among other things. artificial fertilizers, artificial
fibers and plastics. The electronic industry comprises the
manufacture of, inter alia, industrial robots and TV sets.
The food (mainly canning) and textile industries (with
Gabrovo as the center) are of great importance. After the
fall of communism, production has decreased. Bulgarian
products find it difficult to find sales in the free market.
As in other former eastern states, attempts have been made
to convert the defense industry to civilian production.
Foreign trade
Bulgaria is heavily dependent on its foreign trade,
mainly oil and gas imports. Goods exports do not outweigh
imports, but in recent years tourism has increasingly
contributed to income. However, despite the growth of the
tourism industry, the country has for a long time had a
deficit in foreign trade.
During the 1980s, foreign trade was three-quarters
directed toward the socialist countries, and the Soviet
Union accounted for just over half of the trade exchange.
The most important export goods were machinery and
equipment, vessels, agricultural products, metals, minerals,
fuels and chemical products.
During the 1990s, foreign trade changed as Bulgaria
gained more trade with the EU; this development was
accentuated after EU membership in 2007. The export
composition also changed somewhat as textile exports
increased sharply during the 00s. Imports are still
dominated by oil, gas and raw materials. The main trading
partners are the Russian Federation, Germany, Italy and
Romania.
Tourism and gastronomy
An extensive expansion of the tourism industry began in
the 1960s and today, about 6 million foreign tourists are
visited annually in Bulgaria. The Black Sea coast is a
popular tourist destination for mainly the residents of
Eastern and South Eastern Europe, and since the 1980s also
for other Europeans. Other popular tourist destinations are
the Rila Monastery, founded in the 9th century and located
high up in the Rila mountains in western Bulgaria, and the
picturesque little town and the Nesebăr rock island, which
has several Byzantine churches. The capital has a rich
cultural life and many interesting buildings, including. The
Sofia Church (Hagia Sofia) from the 500s, now the Art
Museum, and the Aleksandăr Nevski Cathedral (completed in
1912).
Influence of Venetian, Hungarian, Austrian but above all
Turkish cuisine has left clear traces on the Bulgarian
plates. The fertile soils and the abundant supply of game
provide a kitchen rich in vegetables (consumed year-round,
out of season in pickled, tart form) and meat stew with wild
boar and deer. Raw onions are used as accessories for most
things, dairy products such as goat cheese and yogurt are
included in both appetizers, main courses and desserts as
well as bread. Constantly recurring everyday food is the
soup tjorba, with chicken, lamb and vegetables. In
general, the Bulgarians are very fond of the intestinal
food, sheep or lamb intestines are included in many
traditional recipes. All over the Balkans, charcoal grilled,
elongated meatballs are common; in Bulgaria they are called
kebaptjand is made on a mixture of lamb and veal.
Turkey is reminded of the pastry-baked meat pies, and the
pastry returns to the rich dessert culture, where powerful
cakes with fruits and nuts also make the ubiquitous plum
brandy a necessity for digestion.
See also Bulgarian wines.
|
