Series:Center for the Study of Democracy - CSD Policy Briefs

CSD Policy Brief No. 44: The Competitiveness of the Bulgarian Economy 2014

CSD Policy Brief No. 44: The Competitiveness of the Bulgarian Economy 2014

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

KEY POINTS ›› Bulgaria ranks 56th in the World Competitiveness Yearbook 2014 – a stagnation for a fifth year. ›› Bulgaria’s economy is reliant on exports, offers low living costs, and stable public finances. Its competitiveness remains narrow-based and unstable. ›› The labor market crisis caused by the financial downturn seems to have abated but unemployment remains worryingly high. ›› The economy is still suffering as a result of the inadequate business environment and the lack of a strong institutional framework, which could foster research, development and innovation activities, as well as adapt the educational system to the needs of the labor market. ›› The 5 main challenges which Bulgaria faces in improving its competitiveness are: ›› ›› Introduce public administration reforms, and more and better e-government services; ›› ›› Initiate performance-based financing of education; ›› ›› Reduce energy security risks through energy efficiency and diversification of supply sources and technologies; ›› ›› Improve regulatory control and compliance quality; ›› ›› Tackle high-level corruption and market capture.

CSD Policy Brief No. 45: The Management and Disposal of Confiscated Assets in the EU Member States

CSD Policy Brief No. 45: Gestionarea și Valorificarea Bunurilor Confiscate din Infracțiuni în Statele Membre UE - Sinteza nr. 45

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

CSD Policy Brief No. 46: Corruption and Anti-Corruption in Bulgaria (2013 – 2014)

CSD Policy Brief No. 46: Corruption and Anti-Corruption in Bulgaria (2013 – 2014)

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

The policy brief makes an overview of the levels of corruption and the impact of corruption on the societal sectors. In 2014, the Corruption Monitoring System has recorded the highest levels of involvement of the Bulgarian population in corruption transactions in the last 15 years. In the past year Bulgarians have conceded to being involved on average in roughly 158 thousand corruption transactions monthly.Most corruption transactions have been initiated by the administration through exerting corruption pressure on those seeking public services. The public’s susceptibility to corruption in 2014 is similar to 1999 despite the increase of intolerance to corrupt behaviour. In the business sector corruption’s effectiveness for solving problems has grown in 2014. Most companies do not trust public organisations and do not consider they are treated equally in courts.

CSD Policy Brief No. 60: Media (In)dependence in Bulgaria: Risks and Trends

CSD Policy Brief No. 60: Media (In)dependence in Bulgaria: Risks and Trends

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

The role of Bulgarian media in public life came under scrutiny after several media outlets were used as an instrument for triggering political crises and for political engineering (2013 – 2014). At that time, the Bulgarian media market was experiencing the impact of two negative trends. On the one hand, the economic crisis of 2009 – 2013 had cut advertising revenues by half. On the other, the old models of media financing were diminished by the use of digital technologies and the explosive growth of social networks and mobile communications. The loss of financial sustainability by the media presented unique opportunities for Bulgarian oligarchic groups. By accumulating a significant share of the media market, they reached an unprecedented level of political influence (including direct influence on the legislative, executive and judicial powers). The media was used as an instrument for state capture that could present severe security and economic risks.

CSD Policy Brief No. 61: Drug Users in Prisons: Norway's Experiences and Bulgaria's Challenges

CSD Policy Brief No. 61: Drug Users in Prisons: Norway's Experiences and Bulgaria's Challenges

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

For all criminal offences related to drugs, even for possession of small quantities intended for personal use, the main sanction according to Bulgarian criminal law is imprisonment. Unlike in Norway, non-custodial penalties in Bulgaria such as probation have extremely limited scope of application for drug-related offences. At the same time, other alternatives to imprisonment are virtually non-existent.

CSD Policy Brief No. 62: Energy Security Risks and the Case for Natural Gas Diversification

CSD Policy Brief No. 62: Energy Security Risks and the Case for Natural Gas Diversification

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

The policy brief analyses the energy security and governance risks. The authors underline that: - Bulgarian ranking has improved significantly, jumping from 73rd to 58th place, narrowing the gap with the average OECD results. - Since Bulgaria receives all of its natural gas from one source and via one pipeline, it is imperative that the government’s decisions for the initiation of future energy projects are based on the projects’ potential to diversify supply sources and ensure an uninterrupted energy supply. - The efforts to diversify the gas supply by building the Interconnector Greece - Bulgaria (IGB) have stalled in spite of external financing, existing contractual obligations with the Shah Deniz consortium and due to lack of administrative capacity and state capture from domestic and foreign interests. - The European Commission’s efforts to integrate the SEE region into the EU internal market and diversify its gas supply away from a single supplier have started to pay off. The liberalization of the cross-border capacities along the Transbalkan pipeline, previously fully reserved by Gazprom, is now open for competitive bidding. - The liberalization of regional natural gas trading and the completion of the interconnector pipelines with Greece and Romania would advance Bulgaria’s bargaining position vis-à-vis Gazprom by reducing the country’s gas import costs, and improve the country’s security of supply and the affordability of residential gasification initiatives.

CSD Policy Brief No. 64: Hidden Economy in Bulgaria: 2015 – 2016

CSD Policy Brief No. 64: Hidden Economy in Bulgaria: 2015 – 2016

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

In Bulgaria the high level of hidden economy undermines the economic development of the country and requires serious and persistent political attention. The unprecedented growth in the field of digitization of economic activities, the convergence between some of them, and the emergence of brand new services creates an opportunity for achieving a desirable environment, which may reduce the hidden cash flows and boost the economic development of the country. Comprehensive reforms focused on the functioning of the market mechanisms and administrative effectiveness are needed in order to promote the process of economic convergence within the European Union and limit the harmful effects of the hidden economy in Bulgaria.

CSD Policy Brief No. 63: Extortion racketeering: the vulnerability assessment approach

CSD Policy Brief No. 63: Extortion racketeering: the vulnerability assessment approach

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

Keywords: CSD; CSD Policy Briefs; Center for the Study of Democracy; Extortion; racketeering

Extortion racketeering has long been pointed out as the defining activity of organised crime. It has also been identified as one of the most effective tools used by organised crime in the accumulation of financial resources and the penetration of the legal economy. Although in recent years this crime has not been among the top listed organised crime threats in the strategic EU policy documents, it still remains ever present in European countries. The seriousness of the phenomenon has been recognised at the EU level and the crime has been listed in a number of EU legal acts in the field of police and judicial cooperation in criminal matters.

CSD Policy Brief No. 08: The Competitiveness of the Bulgarian Economy 2006

CSD Policy Brief No. 08: Конкурентоспособност на българската икономика 2006

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

Bulgaria’s position in the world oldest and most comprehensive annual report on the competitiveness the World Competitiveness Yearbook 2006 of IMD (International Institute for Management Development) was presented several days before the European Commission report on Bulgaria’s readiness for accession. With the partnership of the Center for the Study of Democracy this year Bulgaria was included for the first time in the report, issued since 1989. The report ranks and analyzes how 61 selected economies creates and sustain the competitiveness of their enterprises. It stands out among reputed international ratings with the predominance of more reliable statistical data over the qualitative (survey) data. The rating uses 312 indicators covering a broad spectrum of competitiveness, classified in four major groups: economic performance, business efficiency, infrastructure and government efficiency. The policy brief makes an overview of the report's main findings and recommendations with focus on the Bulgarian economic performance.

CSD Policy Brief No. 11: Bulgarian Experience and Measuring Corruption in the European Union

CSD Policy Brief No. 11: Българският опит и измерването на корупцията в Европейския съюз

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

In recent years, curbing corruption is a top priority of most international institutions. The European Union attaches paramount importance to the problem of corruption in the two successive waves of accession in 2004 and 2007. The pre-accession process has prompted the European Commission to develop its own mechanism to assess the progress of anti-corruption reforms. Like many other key areas for the functioning of the internal European market, the development of EU anti-corruption policy has logically led to the creation of a single European methodology for defining standards for measuring corruption.

CSD Policy Brief No. 13: Effective Policies Targeting the Corruption – Organized Crime Nexus in Bulgaria: Closing Down Duty-Free Outlets

CSD Policy Brief No. 13: Ефективни политики за противодействие на корупцията и организираната престъпност в България: закриване на безмитната търговия

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

Duty-free trade-related smuggling of excise goods has been one of the most potent and sustainable sources of political corruption in Bulgaria for the last fifteen years. The operation of land border area outlets has been a major channel for flooding the Bulgarian market with tons of illegal cigarettes and alcohol and the sale of millions of gallons of excise-free petrol. The resulting profit, running into hundreds of millions each year, has been funding many a Bulgarian party and has become the foundation of untouchable political oligarchies. The policy brief examines duty-free trade in Bulgaria in regard to turnover and tax revenue losses from the operation of the duty-free outlets. It also analyses the regulation of duty-free trade in Bulgaria which bears all the marks of a state capture. The brief presents possible courses of action towards reducing the negative effects of duty-free trade.

CSD Policy Brief No. 14: Criminal Justice and Law Enforcement along Bulgaria's Borders: The Impact of EU Accession

CSD Policy Brief No. 14: Правосъдие и правоприлагане по границите на България след присъединяването към ЕС

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

Enhanced criminal justice and improved cross-border cooperation between judicial and law enforcement authorities are essential for the EU and its Member States in order to effectively respond to the increasing threat of cross-border criminality. The last two EU enlargements resulted in significant changes in the Union’s external borders. Some of the countries that used to have such borders are now neighbors to other EU Member States. Their responsibilities regarding the security at the external borders are gradually transferred to new Member States which have become the outermost countries of the Union. The duties of these countries on protecting the external borders are yet to increase substantially. Further to Bulgaria's accession to the European Union, the country's frontiers with Turkey, Macedonia and Serbia, as well as its Black Sea border, have become external borders of the EU. Hence, border crossing-related criminal offences and customs violations no longer represent a problem of Bulgarian national security alone: they have turned into a problem of EU security. This policy brief is a follow up to the 2007 CSD report Reinforcing Criminal Justice in Border Districts and examines the attitude of and measures undertaken by the relevant stakeholders as regards the policy recommendations formulated by the report.

CSD Policy Brief No. 15: Equal rules and fair competition: effective policies to counter the gray economy and corruption in Bulgaria

CSD Policy Brief No. 15: За еднакви правила и почтена конкуренция: ефективни политики за противодействие на сивата икономика и корупцията в България

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

This policy brief outlines the result of the consultations, which the Center for the Study of Democracy held with representatives of business and government on the feasibility of public-private partnerships in promoting a level paying field in Bulgaria. Its findings seek to inform further discussions with Bulgarian and international stakeholders on the modalities of possible future initiatives in this area on the example of public policy on the grey economy. If the efforts of the Bulgarian government and the business community to reduce the adverse impact of grey economy on the nation’s welfare are to succeed they need to bring on board the experience from successful coalition building for good governance from the non-government sector, based on best international practices. International experience has revealed that there are no easy fixes to pervasive grey economy and corruption. This brief proposes an overview of measures undertaken thus far to tackle the grey economy in Bulgaria and outlines a possible platform for engagement of the business, NGO and government sectors for long-term partnership for leveling the paying field in the country.

CSD Policy Brief No. 18: Better Governance for Sustainable Energy Sector of Bulgaria: Diversification and Security

CSD Policy Brief No. 18: По-добро управление за устойчив енергиен сектор в България: диверсификация и сигурност

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

The Policy Brief focuses on the Bulgarian energy sector, which has historically been and will remain of strategic importance for the country’s economic development and national security, especially in the context of growing EU and Balkan markets. However, recent shifts in the world’s economy, policy, regional dynamics, and geo-political situation are the driving factors necessitating the need to introduce major reforms focused on a transparent, diversified, efficient, and market based energy sector in Bulgaria. Bulgaria needs to actively participate in the European and international energy debate and to address the whole complex of energy related policies.

CSD Policy Brief No. 19: Bulgaria 2020 Energy Strategy: comments and suggestions for better governance

CSD Policy Brief No. 19: Енергийна стратегия на България 2020: коментар и предложения за по-добро управление

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

Energy is a key sector for Bulgarian economy, both because of its size and because of its importance to national competitiveness. This requires decisions to be made on the basis of reliable and accessible data, broad based discussions and clearly identified strategic priorities, which rely on established practices and mechanisms for good governance. The latest strategic document at national level is the Bulgarian Energy Strategy from 2002. Without updating it, the Bulgarian government has committed in the years following its EU accession to substantial investments with long-term impact on the energy sector, which is a vivid example of failure in good governance. Bulgaria’s membership in the European Union (EU), climate change negotiations, the financial and economic crisis and Bulgaria’s inclusion in several international investment projects have changed the conditions for the development of Bulgaria’s energy sector. These latest developments require updating of the national energy strategy and providing for better and transparent governance in the sector.

CSD Policy Brief No. 20: Policies to Counter the Effects of the Economic Crisis: Hidden Economy Dynamics 2009

CSD Policy Brief No. 20: Политики за противодействие на икономическата криза: динамика на скритата икономика 2009

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

The policy brief focuses on the impact of the governemnt measures put forward to counter the economic crisis and their effect on the hidden economy. The hidden economy has been a central topic for discussion in the public space upon each amendment to the economic legislation and particularly before elections or the passing of the national budget. Nevertheless, aside from the Annual Hidden Economy Index released by the Center for the Study of Democracy and a few sporadic analyses by other non-governmental, academic and business organizations, there is a lack of an adequate government system of ex ante and ex post impact assessment of the proposed measures to fight hidden activities of the wider economy. The adjustments of GDP done by the National Statistical Institute aiming to include hidden economy in the system of national accounts are not made public and do not serve as a basis for decision-making. Thus, public debates on hidden economy become little more than displays of rhetorical skills or actually serve completely different agendas rather than the implementation of measures to curb its negative impact.

CSD Policy Brief No. 21: Investigation of Money Laundering: An Institutional Approach

CSD Policy Brief No. 21: Разследването на прането на пари: институционален подход

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

Organized crime in Bulgaria is quick to adapt to the new realities and by and large enters the legal economy by legalizing capital accrued from criminal activities. This process poses a significant threat to the country: while in developed democracies money-laundering is carried out through the complex financial operations or investments in the legal economy (for instance through the purchasing of real estate and movables), in Bulgaria money-laundering takes on a specific form – political investment. The policy brief makes an overview of the organized crime, corruption and money-laundering in Bulgaria. According to the authors, in spite of several legislative initiatives and a growing amount of prosecutorial decrees for money-laundering in the last decade, the prosecution for this type of crime in Bulgaria remains insignificant. The complexity of the crime, the objective difficulties for its investigation, as well as the necessary inter-institutional approach on an international level to combat such activities explain the relatively small number of prosecutions.

CSD Policy Brief No. 22: Energy Sector in Bulgaria

CSD Policy Brief No. 22: Енергийният сектор на България

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

The brief "The Energy Sector of Bulgaria" is elaborated jointly by the Center for the Study of Democracy and the Atlantic Council of US. It presents the main challenges that the energy sector in Bulgaria faces. By virtue of its geography, Bulgaria finds itself in a difficult nexus, drawn into Eurasia’s contentious energy geopolitics and as a European Union member, involved in the Union’s fragmented energy policy and complex regulatory, energy efficiency and climate change objectives. That position is challenging, but it also presents decision-makers in Sofia with opportunities.

CSD Policy Brief No. 63: ASSESSING THE VULNERABILITY EXTORTION ORGANIZED IN CERTAIN SECTORS AND ECONOMIC COMMUNITY OF MIGRANTS

CSD Policy Brief No. 63: VALUTARE LA VULNERABILITÀ ALL’ESTORSIONE ORGANIZZATA IN DETERMINATI SETTORI ECONOMICI E COMUNITÀ DI MIGRANTI

Author(s): / Language(s): Italian

Extortion racketeering has long been pointed out as the defining activity of organised crime. It has also been identified as one of the most effective tools used by organised crime in the accumulation of financial resources and the penetration of the legal economy. Although in recent years this crime has not been among the top listed organised crime threats in the strategic EU policy documents, it still remains ever present in European countries. The seriousness of the phenomenon has been recognised at the EU level and the crime has been listed in a number of EU legal acts in the field of police and judicial cooperation in criminal matters.

CSD Policy Brief No. 63: Extortion in the field of organized crime: the vulnerability analysis approach

CSD Policy Brief No. 63: La extorsión en el ámbito de la delincuencia organizada: el enfoque de análisis de vulnerabilidades

Author(s): / Language(s): Spanish

Extortion racketeering has long been pointed out as the defining activity of organised crime. It has also been identified as one of the most effective tools used by organised crime in the accumulation of financial resources and the penetration of the legal economy. Although in recent years this crime has not been among the top listed organised crime threats in the strategic EU policy documents, it still remains ever present in European countries. The seriousness of the phenomenon has been recognised at the EU level and the crime has been listed in a number of EU legal acts in the field of police and judicial cooperation in criminal matters.