Series:CSD Economy Papers

Hidden Economy in Southeast Europe: Building Regional Momentum to Mitigate its Negative Effects

Hidden Economy in Southeast Europe: Building Regional Momentum to Mitigate its Negative Effects

Author(s): Author Not Specified / Language(s): English

Keywords: CSD Policy Briefs; Center for the Study of Democracy; Hidden Economy; Southeast Europe

According to the authors of the policy brief, not declaring in full or partially economic activities in SEE remains widespread in virtually all areas of government – permissions and licenses, labour contracts, social security, taxes and custom duties. It signals a persistent gap between formal and informal institutions and lack of coherent enforcement of rules. Corruption pressure is higher towards those engaged in the hidden economy. At the same time their susceptibility to corruption is also higher, confirming the institutional incongruence. The immense diversity of the scale (from 19 % in Croatia to 81 % in Kosovo), prevailing patterns (no written contracts in Turkey, non-payment of health care contributions in Kosovo, envelope wages in FYR of Macedonia and Bulgaria, non-formalised business in Albania), formal vs informal wage average (higher formal wages in Bosnia and Herzegovina, Albania and Turkey and lower in Kosovo and Bulgaria) requires country specific tailor-made policies and sequencing of reforms.

A Force for Good? Mapping the Private Security Landscape in Southeast Europe

A Force for Good? Mapping the Private Security Landscape in Southeast Europe

Author(s): Arjan Dyrmishi,Rositsa Dzhekova,Donika Emini,Gentiola Madhi,Marko Milošević,Predrag Petrović,Atanas Rusev,Mentor Vrajolli / Language(s): English

The volume explores and assesses the origins and current state of the private security sector in four Southeast European countries (Bulgaria, Serbia, Albania and Kosovo), with specific reference to principles of good governance and the protection of human rights. In particular, the authors examine when and how the first private security companies developed and whether and how PSCs, their clients, and other factors such as relevant legislation determined the services private security offer today, and which companies were established/have survived in the market. The studies look into the economic importance of private security especially as a source of employment. They also explore if PSCs are able to provide quality security services by looking at the background and qualifications of managers and employees. A number of important questions are addressed: who are the people who work for PSCs, what is their level of expertise and professionalism and what are their working conditions? How important are (political) relationships for the success of a PSC and do domestic political considerations have an impact on which PSC receives contracts and how well they work? How is quality defined and enforced by both PSCs and their clients, especially public sector clients? Finally, do PSCs and state security providers coordinate, cooperate or compete with each other?

GREY Working Paper No. 3: Tackling the Undeclared Economy in FYR Macedonia, a Baseline Assessment

GREY Working Paper No. 3: Tackling the Undeclared Economy in FYR Macedonia, a Baseline Assessment

Author(s): Rositsa Dzhekova,Josip Franic,Lyubo Mishkov,Colin C. Williams / Language(s): English

This working paper is an output of the European Commission’s FP7 "Marie Curie Industry-Academia Partnerships and Pathways" (IAPP) project entitled "GREY - Out of the shadows: developing capacities and capabilities for tackling undeclared work in Bulgaria, Croatia and FYR Macedonia". Ms Rositsa Dzhekova and Mr. Lyubo Mishkov, Center for the Study of Democracy, and Prof. Colin C. Williams and Mr. Josip Franic, GREY-IAPP, Sheffield University Management School, University of Sheffield elaborated the report in July 2014. This report provides a detailed review of available evidence on the extent and nature of the undeclared economy in the Former Yugoslav Republic of Macedonia (FYROM), as well as on the institutional actors involved in tackling the phenomenon and their policy approach and measures used.

GREY Working Paper No. 2: Undeclared Work in Croatia: a Baseline Assessment

GREY Working Paper No. 2: Undeclared Work in Croatia: a Baseline Assessment

Author(s): Josip Franic,Colin C. Williams / Language(s): English

This working paper is an output of the European Commission’s FP7 "Marie Curie Industry-Academia Partnerships and Pathways" (IAPP) project entitled "GREY - Out of the shadows: developing capacities and capabilities for tackling undeclared work in Bulgaria, Croatia and FYR Macedonia". Mr. Josip Franic and Pfof. Colin C. Williams, GREY-IAPP Sheffield University Management School, University of Sheffield elaborated the report in April 2014. The aim of this report is to evaluate the extent and nature of undeclared work in Croatia and the policy approaches and measures currently employed to tackle this sphere. The authors note that firms in agriculture and related industries are the most likely to recognise competition from unregistered or informal firms as a serious obstacle to their business. In addition, small and medium-sized firms are far more likely to identify the existence of the unregistered units in their sector than are large firms. Finally, domestic owned and non-exporting businesses more often witness the presence of unregistered firms and the constraints caused by them in comparison with exporters and firms in foreign ownership. A key problem is the weak coordination among ministries and various government departments when pursuing the fight against undeclared work. Each of them defines their own separate targets and this often results in an overlapping and/or awkward division of responsibilities. This raises a need for reorganisation of the existing institutional system in order to achieve better efficiency. One viable option is the establishment of a central coordination body, which would harmonise activities in this field. In that regard, one might argue whether a recent reform in the inspection system was indeed a move in a positive direction, or whether it will result in the deteriorated effectiveness of enforcement. A further problem is the weak social dialogue in Croatia in this context characterised by numerous disputes between the government and trade unions. As such, tripartite social dialogue currently has a limited role in tackling undeclared work, therefore representing a further area for the achievement of a significant improvement.

Policy and Legal Environment for the Growth of the SME Sector in Bulgaria - Draft Policy Paper, November 1996

Policy and Legal Environment for the Growth of the SME Sector in Bulgaria - Draft Policy Paper, November 1996

Author(s): Author Not Specified / Language(s): English

The Policy Forum aims to identify those factors that will improve the economic and legal environment for the growth of the small and medium sized enterprise ("SME") sector in Bulgaria. The forum is designed to bring together some of the countries most influential individuals, representing various institutional and independent bodies, to discuss the constraints that are hindering the development of the SME sector and to propose and review various recommendations to overcome these obstacles.

Price Reform and Pricing in the Transition to Market Economy, August 1994

Price Reform and Pricing in the Transition to Market Economy, August 1994

Author(s): Vesselin Passev / Language(s): English

As a result of factors, characteristic of centralized planned economy and particularly pronounced in Bulgaria due to the lack of a significant private sector as had been preserved in Poland, Hungary, GDR, and Czechoslovakia, the economic reform in Bulgaria began with a liberalization of prices and dismantling of the monopolistic structures in industry and the services. The shock liberalization of prices was the only way to a speedy overcoming of the huge disproportion between the supply and demand. It is our view that if the liberalization of prices had begun already in the first year of the reform - 1990, their rise might have been more moderate and would not have had such a strong negative impact on the standard of living of the population. Unfortunately, the liberalization of 40 per cent of the prices of goods and services included in the government's program was not introduced and that for purely political reasons, as the government of the ruling Communist Party was driven by populist considerations. In February 1991 the first government with the participation of ministers from outside the Communist Party undertook a liberalization of about 80 per cent of the prices of goods and services. Within a month following the liberalization of prices, inflation, measured through the consumer price index, reached 222.9 per cent. Only a group of 14 essential goods and services, among which fuels and electric power, as well as certain staple foods, remained under state control.

Bansko Municipal Privatization Investment Fund: Rules for Organization and Activities

Bansko Municipal Privatization Investment Fund: Rules for Organization and Activities

Author(s): Daniela Bobeva,D. Batchvarov / Language(s): English

The municipal privatization Fund is being established pursuant to the provisions of Article 6, par. 2 (3) of the Law on Privatization and Transformation of State and Municipally Owned Property. According to this section, "the remainder (from the total revenues from the privatization of municipal enterprises, entering a separate account to the respective municipal budget, as set forth in Article 6, par. 2 of the same law) amounting to 88 percent shall be set aside in a special Fund under the discretionary authority of the municipal council, and the funds shall be used in order of priority to cover uncollected debts incurred by municipal enterprises, including payment against loans extended for pending construction projects, as well as for investment purposes.

The Hidden Economy in Bulgaria (Business sector survey), March 2003

The Hidden Economy in Bulgaria (Business sector survey), March 2003

Author(s): Author Not Specified / Language(s): English

The March survey of the "hidden economy" in the business sector covered 537 companies accross the country. It involved an expanded sample comprising another joint-stock companies. To ensure proper comparative analysis, the main conclusions in the present paper are based on data excluding the added joint-stock companies, i.e. covering 437 companies. Fieldwork took place in the period february 28 - March 24, 2003. The survey employed the method of the face-to-face interview.

THE INSURANCE MARKET IN BULGARIA, JUNE 2003

THE INSURANCE MARKET IN BULGARIA, JUNE 2003

Author(s): Author Not Specified / Language(s): English

A national survey was conducted at the end of June 2003 to study and assess the insurance market and services in Bulgaria. The survey was representative of the country's adult population. The size of the two-stage cluster sample was N=1057 covering the whole territory of the country. Information was collected by the method of the face-to-face in-home interview.

The Hidden Economy in Bulgaria (Business Sector Survey), December 2002

Скритата икономика в България (изследване на бизнес-сектора), Декември 2002 г.

Author(s): Author Not Specified / Language(s): Bulgarian

Between November 25 and December 16, 2002, Vitosha Research conducted a national representative survey of the business sector on "Hidden Economy in Bulgaria". The survey was attended by 530 companies across the country.

Movement of Capital and Payments. Monetary and Financial Policies and Convertibility of the Bulgarian Lev, 1995

Движение на капитали и плащания. Валутно-финансова политика и конвертируемост на лева, юли 1995

Author(s): Lubomir Christov,Alexander Mihailov / Language(s): Bulgarian

Monetary union is the final stage in economic and financial integration among countries, in the specific case analyzed in the present paper among the countries participating in the Treaty of Maastricht providing for the implementation of such a union as the ultimate objective of the convergence toward a unified Europe. Membership in such a union would require the adoption of a common currency and its circulation as a single legal tender (or the final and irrevocable pegging of exchange rates among the currencies of the participating countries), as well as the conduct of common monetary (including foreign-exchange) policy.

Corporate Governance Assessment Report: 2000

Доклад за оценка на корпоративното управление в България: 2000

Author(s): Author Not Specified / Language(s): Bulgarian

The present report has the objective to provide an overview of the general framework and particular dimensions of the corporate governance in Bulgaria. It is published for the first time and the authors intend to continue its publication on an annual basis. In its present form, the study contains information thus far unavailable to the professional community and the media. The evaluations and analyses herein are the first attempt to outline the achievements and the problems in the field of corporate governance in Bulgaria in the years of transition. The authors of the report thus aim to encourage a wider discussion on the subject and that, as a result, practical improvement action will be undertaken. At the end of the past year the Corporate Governance Initiative conducted a pilot study for assessment of the corporate governance in Bulgaria. It is a part of the activities under phase II of the project aiming at the elaboration of recommendations for practical measures for improvement of the corporate governance, including diagnostics and analysis of the existing corporate structures. The survey was conducted by Vitosha Research and covered all listed companies with authorized capital over BGN 200,000. The sample comprised 268 companies, while the number of the surveys was 158. The research method applied is a standard interview with representatives of the companies' managing bodies and senior management. Based on the survey results, the first index of corporate governance in Bulgaria was calculated. The index has values between 1 and 5, the lowest value of 1 indicating unfavorable legal and institutional frame and internal organizational factors of the corporate governance, and the highest value of 5 - ideal conditions and good practice of corporate governance. The report has been prepared mainly on the basis of the results of the pilot study, compared and partially supplemented by conclusions and assessments of other studies, publications in the press and international sources. The report has been prepared by the following team: prof. Dr. Bistra Boeva, associate prof. Dr. Stefan Petranov, Dr. Vesela Stancheva, senior research associate Plamen Chipev, Diana Hristosova - senior expert, Center for Economic Development, Stoyu Nedin - Chairman of Association of shareholders, Dr. Maria Prohaska - coordinator, Corporate Governance Initiative.

Accelerated lignite exit in Bulgaria, Romania and Greece

Accelerated lignite exit in Bulgaria, Romania and Greece

Author(s): Martin Vladimirov,Todor Galev,Radostina Primova / Language(s): English

In light of the ambitious targets for long term decarbonisation set by the European Green Deal, a critical question for decision-makers is how to sustain a coal phase-out that is as swift as possible while also ensuring security of supply, affordable electricity, and a just transition in regions dependent on coal. The aim of this report is to support decision makers in Bulgaria, Greece and Romania to implement a timely phase-out of coal by analysing the impact on electricity systems as well as the local economy, and highlighting policy recommendations to deal with potential issues related to compensation, system security and local economic impacts.

Trafficking for Labour Exploitation in Bulgaria

Trafficking for Labour Exploitation in Bulgaria

Author(s): Atanas Rusev,Anton Kojouharov / Language(s): English

Bulgaria remains one of the significant source countries for labour trafficking in Europe, although the problem has not been on the priority list of institutions for a long time being overshadowed by the problem with trafficking for sexual exploitation. The predominant part of labour trafficking follows simple business models, whereby victims are recruited and exploited without any formal contracts in economic sectors such as agriculture, construction, cleaning and senior care. However there is a growing new trend of employing legitimate business structures in order to conceal trafficking activities. In many of these cases labour trafficking is intertwined with various forms of tax and social contributions evasion or fraud and traffickers make use of schemes for bogus self-employment or posting of workers abroad. The working paper explores the modus operandi of traffickers, the business model and the financial flows associated with trafficking for labour exploitation.