Volume VII


1. The Elites from the Western and Danubian Provinces of the Roman Empire and Their Role in the Administrative and Social-economic Development of Moesia

Author: Kalin STOEV

Abstract:    In this article, we will pay attention to the visible examples of the influence of some families of “western” origin according to the epigraphic documentation in the lands of the two Moesian provinces, Upper and Lower Moesia, focusing mainly on the regions where the inscriptions show us a more stable picture of established family networks of influence, as well as the changing circumstances in which these families (especially that of T. Iulius Saturninus) lost their importance in these lands. The study, made on the basis of epigraphic data and based above all on a prosopographic method, shows that the families involved in the purchase of the collection of customs fees (portorium) had serious client and family ties with wealthy families from Italy, Spain and the Danube provinces of the empire. In the article is offered a chronological sequence of the involvement and dominance of different families in the affairs of the tax-lease system in Moesia and, on the basis of a new reading of an inscription from the region of Storgozia shows the involvement of elites from the eminent North-Italian city of Aquileia in the administrative regulation of tax and customs organization in the province of Lower Moesia. The re-reading of the inscription provides an additional glimpse to the emergence of the elevated strata from this city coincided in time with the distribution of territories to the legion camps and the municipal territories and with the entrustment of the collection of these fees to the central administration, so it can be assumed that the two phenomena are connected.
Key words:
Lower Moesia, Upper Moesia, portorium, Danubian limes, epigraphy
JEL: N33; N53; N93

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2. Long-term Consumer Price Dynamics in Bulgaria, 1750 – 2020

Author:  Martin IVANOV, Kaloyan GANEV, Ralitsa SIMEONOVA-GANEVA

Abstract:    In this paper we explore the long-term developments of consumer prices in Bulgaria for the period 1750–2020. The discussion draws on a component-based index of consumer prices constructed by the authors. We consider both nominal price-level time series and real prices of selected essentials (bread, meat, sugar, tobacco, alcohol, and construction goods used by households). For the reviewed period, we identify two major inflationary episodes, namely the two World Wars and the interwar period, and the period of post-communist transition. For the former, we compute an increase of the price level of about 46 times. For the latter, we arrive at a mind-blowing analogical result of over 3800 times. A curious finding concerns the communist period. Contrary to popular beliefs established through a massive propaganda of no-inflation socialist economies, we discover an overall increase of the price level for that period of nearly 4 times. Real prices of individual commodities are calculated by deflating nominal figures by the value of the corresponding base consumer price index. The inspection of their dynamics leads to uncovering hidden insight related to the developments of specific markets. Also, it allows to assess more clearly the similarities and differences of real price evolutions over different political regimes. For example, we find that the real price of bread in the times of communist rule did not contrast markedly with its levels in preceding and succeeding periods. Another example points to the conclusion that in the years of EU membership, the real prices of most commodities that we consider follow a path of decline. This suggests that statements on the economic developments in those years which rely heavily on the popular perception of lower affordability should at least be taken with a grain of salt. The availability of our results could facilitate further explorations into the nature and specifics of the economic and social development of Bulgaria over a long period of time.
Key words: inflation, real prices, long-term price dynamics, Ottoman Empire, World Wars, communism, transition, Bulgaria
JEL: E21, E31, N33, N34, P22


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3. Financial Partnerships in the 19th Century – Relationship between Bulgarian Merchants and Galata Sarrafs

Author: Mustafa Can GÜRIPEK

Abstract:    In this study, 19th century Bulgarian financial developments will be discussed in parallel with the commercial developments. The focus of the study is the network of relations established by important merchant families that emerged in the 19th century with the sarrafs of Istanbul (Galata) and important merchants like Georgiev, Puliev, Çalıkoğlu, Tezvetoğlu etc. They had established strong financial ties with the Galata bankers/sarrafs. I will try to answer some questions such as following ones. What factors were important in establishing these ties? Was this relationship necessary? What were the benefits of the money changers and Bulgarian merchants from these financial cooperations? What was the role of the state in this relationship? What was the role of local administrators in the network of sarrafs and merchants?
Key words:
Galata Sarrafs, Ottoman Empire, Financial Partnership, Bulgarian Merchants, Tax Farming
JEL: N83, N90, P12, P45

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4. Views on the Economic Development of Bulgarians in the Nineteenth Century According to the Program Documents of the Radical Sector in the National Liberation Movement

Author: Petkov St. PETKOV

Abstract:    On the basis of their program documents, the views on the economic development of Bulgarians of various representatives of the radical sector in the national liberation movement in the 19th century are examined and analyzed. Different research methods are applied – critical analysis, comparative historical approach. The object of the study is presented in chronological order from the mid-30s of the 19th century, when the first manifestation of the national liberation movement was organized, to the Liberation – the creation of a new Bulgarian state in the 70s of the 19th century. In the researched program documents of the so-called revolutionary or radical organizations are rarely found, and in some there are no ideas and projects for the economic development of the Bulgarians at all, apart from the most general and repeated findings about the plight of the people under Ottoman rule, which have mostly a motivational purpose. This reasoned conclusion has an important meaning, since a large part of the participants in the organizations from the radical sector live to see the Liberation, i.e. the creation of the new Bulgarian state, which they largely caused with their actions in 1875–1876. They are actively involved in the organization and state administration of the Principality of Bulgaria, despite the clearly established lack of programmatic views on the economic development of the people, which manage.
Key words:
economic development, radical sector, program documents, national liberation movement
JEL: N01

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5. Bulgarian Market Foreign Trade Dilemmas during the 1850s – 1870s

Author: Ivan ROUSSEV

Abstract:    The article presents Bulgarian market main foreign trade relations in the period of its foundation, i.e. in the 1850s, 1860s and 1870s. The Bulgarian lands foreign trade during this period is presented as an attempt to answer the question which foreign markets have the strongest influence on the processes in the Bulgarian economic space. The research paper is based on primary archival sources from the French Diplomatic Archives (Archives diplomatiques du Ministère des Affaires étrangères), mainly on reports of French consuls in Plovdiv (Philippopolis), Varna, Kustendje (Constanța) and Tultcha, on the data of archival sources and published research results concerning large Bulgarian companies such as “Evlogiy and Hristo Georgievi”, “Hristo P. Tapchileshtov” and others. The main conclusion of this article is that the foreign trade dilemmas facing the Bulgarian market in the third quarter of the 19th century in the alternative between the East and the West were decisively resolved in favour of the West, in favour of Western and Central Europe. Cereals, silkworm cocoons, rose oil, wool and tobacco are exported from the Bulgarian lands to the European markets while colonial and manufactured goods are imported. Another important conclusion is necessary – since its consolidation in the middle and in the third quarter of the 19th century, the Bulgarian national market is closely connected to the free European market and this is a good reason for the Bulgarians to adjust to the free market behaviour – a behaviour that’s not tied with political interventions or ideological interventions.
Key words:
Bulgarian market, European markets, commercial companies, trade networks, cereals, silkworm cocoons, rose oil, wool, tobacco, colonial and manufactured goods
JEL: N13, N23, N73, N93

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6. Where and Why an Entrepreneurial Class Did Not Appear During the National Revival Period

Author:  Ivaylo NAYDENOV

Abstract:    During the Bulgarian National Revival period there were settlements across Ottoman Bulgaria where a number of public figures, revolutionaries and businessmen were born and raised. The reasons for the appearance of such alert people are numerous and interrelated. Among the factors can be mentioned the specific natural and climatic conditions, the favourable geographical location of such settlements; the awake public atmosphere in them; intensive development of craft production and trade; availability of near and distant markets; the institutional changes in the Ottoman Empire; etc. On the other hand, it seems that very important are social, family and human capital – assets that are purposefully created and maintained in such settlements. The purpose of the current article is to shed light on regions and settlements where rapid economic and social development was not available in the 18th and 19th centuries. The main question I will try to give an answer is why an entrepreneurial class did not emerge in some regions and settlements during the Bulgarian National Revival period. There are several factors that contributed to the fact that a Bulgarian entrepreneurial class did not appear in regions such as the Black Sea area, the western and south-eastern Bulgarian lands (with some exceptions), etc. The factors are as follows: the privileged status of the local population in the 16th and the 17th centuries did not have a positive impact on the socio-economic processes later; the low influence of the Tanzimat reforms; the absence of more active market relations; the slower incorporation of some of the mentioned regions into the emerging national market; the lack of a larger urban centre in the region of Gorna Struma, which would stimulate more active economic processes and connections in the region and beyond it; the presence of competing ethno-confessional groups (Greeks, Jews) that have entrepreneurial experience and contacts; the specific economic conditions that helps to cultivate archaic mentality in some regions; the complete or partial absence of social and family capital; the lack of human capital, as well as institutions (such as secular schools, etc.) that could contribute to its creation and maintenance; the lack of Greek cultural influence, which contributed to the formation of people with a particular economic thinking and behaviour in other regions. There are regions and settlements across Ottoman Bulgaria that did not impress with their dynamic socio-economic and public development during the National Revival period. Their historical destiny deserves to be researched because it could give us a more realistic idea of the socio-economic transformations that took place in the 18th and especially during the 19th century.
Key words:
entrepreneurial class, National Revival period, markets, social capital, family capital, human capital
JEL: N73; N83

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7. An Economics Reading of the Ottoman Constitution of 1876

Author: Hristiyan ATANASOV

Abstract:    On 3 November 1839, the Grand Vizier Mustafa Reşid Pasha solemnly read out a sultan’s order (Hatt-ı Şerif) marking the beginning of significant transformations in the Ottoman Empire. Thus began the Tanzimat (from tanzimat – reorganisation, reconstruction), or the period of reforms. A period marked by the extreme polarisation of the Ottoman administrative elite, which would divide itself into a pro-Western liberal group and one that defended religious traditions and opposed change in the empire. The struggle between these antagonist groups would be fought with variable success. The liberals would seemingly win – they would provide the ideological inspiration for the next great reformist decree, the Sultan’s Firman (Hatt-ı Hümâyûn) of 1856, and especially the Constitution (Kanun-i Еsasi) promulgated in late 1876. Ultimately, however, they would come to lose after a series of vicissitudes. Sultan Abdul Hamid II put an end to the constitutional reforms, dissolved the convened Ottoman parliament, and established an authoritarian regime until the Young Turk Revolution of 1908. The purpose of this article is to present and analyse, using an economic point of view, the three main acts of the Tanzimat – the Hatt-ı Şerif, the Hatt-ı Hümâyûn and to emphasize on the Constitution. The latter, although ambiguously assessed in scholarly literature, appears as a logical conclusion of the reform period. Despite its short duration, it presents the ideology of reforms in terms of property, finance and economics. The constitution secured the most important principles of liberalism and capitalism and this should be considered as an undoubted achievement and significant breakthrough for such traditional society like the Ottoman. First of all, it guaranteed private property, ensured freedom of religion, freedom of the press, freedom of association and freedom of expression. Ottoman state finances became public and were placed under the control of deputies elected by the subjects, a significant step in the direction of modern budgeting and auditing.
Key words:
Tanzimat, Reforms, Ottoman Constitution, economics, finances, liberalism, capitalism
JEL: N13, B 15

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8. Development of the Institute of Concessions in Bulgaria (1883–2018)

Author: Krasimira VALCHEVA, Ralitsa VELEVA, Alexander VALKOV

Abstract:    In recent decades public-private partnerships (PPPs) represent a modern solution for the efficient use of public resources with increasing economic and social importance. The state’s ability to structure and stimulate the development of long-term institutionally sustainable relationships with business for the development of key public activities is a sign of the maturity of its economic and social policy. The study applies comparative document analysis. The temporal scope coincides with the promulgation of the first and the lastest legislative act regulating the relations between the state and private initiative, with a focus on one of the earliest forms of PPP applied worldwide – concessions. The paper periodizes and identifies the evolution and functions of the concept of concession in Bulgaria, based on the legislative framework and the adopted practices. The regulation of this form of cooperation solves specific tasks during different stages of socio-economic development in the country. In post-liberation Bulgaria, concessions were aimed at supporting the establishment of a modern market economy. Nowadays, the institutionalisation of PPPs, and concessions in particular, is applied as a tool for good public governance.
Key words:
public-private partnerships, concession, industry, legislation
JEL: Н82, L50, L52

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9. The Cooperative – the Parties Hope for Successful Economic Modernization of Bulgaria (the end of the XIXth – beginning of the XXth Century)


Abstract:    The restored in 1879 modern Bulgarian state found itself in a difficult economic situation. With its economic backwardness, the political parties in the country were persistently looking for models who could allow them to accelerate and catch up with the other European countries. One of the ideas was to use the cooperative as a tool to catch up with the century’s lag. However, the situation in the economic sector was such that practical actions were mainly in the area of “Raiffeisen cash registers” and “popular banks”, while other types of cooperatives were practically invisible in real economic exchange. In their documents, all organizations gradually accepted the need for a policy of “patronage”, which must be carried out with the mechanisms of state policy, especially through the financial sector and ensuring access to cheap credit from the cooperators. Some parties, especially those from the leftist and populist sector, accepted that the cooperative idea can be useful only with direct political intervention in the sector and even through organizational connection between parties and active cooperatives. This early model of authoritarian impulses was extremely persistent in Bulgarian politics and survived even the entire twentieth century. This leads to a distortion of economic relations and a steady increase in state intervention and control over cooperative networks.
Key words:
party programs, cooperative movement, cheap credit, patronage policy, Bulgarian state found
JEL: N43, N93

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10. Bulgarian Agricultural Legislation at the End of the 19th Century: Advantages and Disadvantages

Author: Yordanka KRIVOSHIEVA

Abstract:    The agricultural legislation of the last decade of the 19th century is distinguished by an impressive number of laws. In the period from 1894 to 1899, the  following were passed and applied: Law on Agricultural Competitions, Law on Township, Law on Repeal of Natural Tithes with Land Tax, Law on Agricultural Funds, Law on Phylloxera, Law on Agricultural Education, Law on Fruit Growing , Model Farms Act. Bills are being drafted on rice sowing and the development of rural merit. The purpose of the present study is to show the place and role of the legislation for reforming agriculture – from backward and routine to modern, highly productive and competitive. Also to show the commitment above all of the agricultural population and that of the district and municipal administrations with the implementation of the laws. Тhe sources used are: documents from the State Archives – Plovdiv, Regional History Museum, Plovdiv, as well as publications in periodicals. Mainly: “Journal of the Bulgarian Economic Society”, “Bulgarian Gathering” and some newspapers such as “Agricultural Protection”, “Mir”, “Plovdiv”. Based on the collected factual material, some more important conclusions and generalizations have been made. First: Laws are necessary to properly regulate the activities of farmers in order to create a qualitatively new model in the development of the industry. Second: Agriculture is related to education and science. For this purpose, the Agricultural Education Act of 1897 was drafted, which created legal prerequisites for educating the population in lower and secondary agricultural schools. Third: The implementation of the legislation shows the relationship between the agricultural population, which constitutes 80% of the country’s population, and the central and local governments. Fourth: The laws provide for criminal liability for those who violate the regulations. However, violations and abuses continue to exist, and the number of persons punished is insignificant. At the same time, it is logical to reduce the trust of the population in the institutions. Fifth: A significant shortcoming of the legislation is that it should pay more attention to the promotion of the entrepreneurial spirit and private initiative. They exist anyway, but they are limited in nature. Far from the idea of covering all aspects of legislation in agriculture during the considered period, the research concerns the reasons for its appearance, its meaning and character, systematizes the consequences of the implementation of the laws. With the help of the typological and comparative method, the problems are explained, the similarities and differences are pointed out in solving them in our country and in other Balkan and European countries.
Key words: agriculture, legislation, reforms, Bulgaria, Plovdiv
JEL: N 5; 54

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11. The Bulgarian Trade Agency in Dedeagach – an Experiment in the Bulgarian Foreign and Economic policy (1897–1901)

Author: Angel ZLATKOV

Abstract:    The article analyzes the creation of the Bulgarian Trade Agency in Dedeagach as an experiment in the Bulgarian foreign and economic policy at the end of the 19th and the beginning of the 20th century. It regards the initiative as an attempt to expand the economic influence of the Principality of Bulgaria in European Turkey in the middle of the Eastern Crisis (1894-1898). Despite the public opinion, which favored a military solution to the Bulgarian national question, the prime minister Dr. Konstantin Stoilov decided to stay neutral and to use the crisis to strengthen the economic ties between the two countries. The Agency functioned only 4 years – from 1897 to 1901, when it was closed due to financial difficulties of the Principality. The Author uses the official correspondence of the Trade Agency with the Bulgarian Ministry of Foreign Affairs, the local authorities and private companies to trace the activity of the commercial agent Konstantin Hadzhidimitrov and to show the main problems of the traders and entrepreneurs in the Ottoman empire. The paper presents case studies, which show the complicated trade relations in the Balkans, and seeks an answer to the question if the Bulgarian experiment was successful. 
Key words:
Bulgaria, Ottoman Empire, Dedeagach, economic relations, consulate
JEL: F55

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12. The Second State Court (1910–1914) and the Concession for Refining Oil and Building Reservoirs in Bulgaria

Author: Evgeni KOSTOV

Abstract:    The Institute for constitutional Ministerial criminal liability in Bulgaria is based on article 155–159 from the Constitution of the Kingdom of Bulgaria, adopted in 1879. It provides for a specific procedure through which the members of the government to be judged outside of the civil courts. The whole procedure has been developed in the Law for trial of ministers, adopted in October 1880. The Second State Court (1910–1914) examines possible crimes of ministers of the Second People’s Liberal Government (1903–1908). As a source for writing the article, the author uses the indictment of the Second State Court. This article examines the initiative of the then Minister of Trade and Agriculture N. Genadiev to grand a concession for oil refining in Bulgaria and the reasons why it does not take place. The Bulgarian government considers that the concession will harm Bulgaria. A monopoly of the oil trade will be formed in the country.
Key words:
Bulgaria, ministerial responsibility, oil concession, Nikola Genadiev, court, constitution
JEL: K42, №73

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13. The Mixed Chambers of Commerce in Bulgaria. Creation and Business Initiatives (1920–1940)

Author: Liliana VELEVA

Abstract:    In the period between the two World Wars, the development of international trade is determined by the general conditions of the world economy, the profound geopolitical changes and the specificities of the individual national economies. In a complex and dynamic situation, the different countries and their governments are moving towards the implementation of effective approaches and forms to solve their foreign trade problems. In this context the possibilities of creating mixed chambers of commerce are also discussed. The emphasis is placed on: the prerequisites for their creation, the internal organization and membership, the main directions of their activity etc. Institutions are also viewed through the lens of bilateral economic relations and political interests.
Key words:
international trade, chambers of commerce, international organizations, business initiatives, banks, commercial and industrial companies
JEL: № 14, № 44

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14. Bulgarian Foreign Trade in the 1930s (Guidelines, Tools, Results)

Author: Marko DIMITROV

Abstract:    The goal of this review paper is to show the development of Bulgaria’s foreign trade during one of the most turbulent periods in the history of the world economy – the 1930s. The general international conditions in which foreign trade relations were developing in the world at that time are outlined and the place of Bulgaria in these relations is noted. The main focus is on the Bulgarian state foreign trade policy. As a result of the complicated conditions for foreign trade activity, the state intervened aggressively on the market. It began to use new, hitherto unknown, interventionist policies, and gradually became a decisive factor in this field. The paper shows the results of the state intervention in foreign trade and the conclusion is made that this intervention is the main factor for Bulgaria to successfully overcome the difficulties caused by the Great Depression, related to the international exchange of goods. At the end of the considered period, foreign trade of the country was on the rise.
Key words:
Foreign trade, foreign trade of Bulgaria, economic policy, economic history of Bulgaria, Bulgaria in the 1930s
JEL: N 10, N14, N24, N 44, N74

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15. Homo Oeconomcus in Socialist Bulgaria

Author: Pencho D. PENCHEV

Abstract:    The research question of the paper is: does the concept of homo economiocus is adequate for understanding the economic behavior of people under Marxian politico-economic system? The answer is based on research of primary archival sources on the activities of several socialist enterprises in Bulgaria. The author found that some activities of the socialist enterprises management or individuals are completely understandable and rational. Among them are: the desire to exploit common property for private benefit, the use of non-economic coercion in some sectors, the labor shortages in others, the desire of workers to receive higher incomes for less work, etc. Other actions, however, if taken out of context appear irrational: poor production organization, systemic low quality problems, an “epidemic” of reluctance to work, etc. They do not seem to serve the interests of homo oeconomicus as they do not result in higher incomes. Most important explaining factor of irrationality is the main characteristic of the socialist economy: absence of private ownership of the means of production. It removes the incentives to work and to improve organization and production quality. Seen in this light, all the above mentioned characteristics of the economic reality in socialist Bulgaria are completely rational. For this reason, the theoretical construction homo oeconomicus is suitable both for understanding the past and for predicting the possible results of market mechanisms elimination in the future.
Key words:
rationality, socialism, Bulgaria, politico-economic system
JEL: J20, L38, Q12, N54, N34

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16. Legal Regulation of the Private Economic Activity in Bulgaria (late 40s – 70s of the 20th Century)

Author: Kostadin PAEV

Abstract:    Although total condemnation of private property as a major source of social and thus the political conflicts in society, the private initiative in the economy as a tool for exploitation of man by man, communist ideology was unable to eliminate completely them, neither in the people’s thinking, nor in the legal system of socialism and the real business. The present paper makes periodization of this legislation and focusing in particular on one of the least-known stages in its development. The free professions as lawyers, musicians, artists and others, private medical services, as well as agricultural activities and cooperative associations, are excluded from the study. A priority place is given to crafts, trade and services provided by private individuals. In the legal framework of private economic activity during the time of socialism, two main periods are outlined: the first from the late 1940s to the 1970s, which is the subject of the present study, and the second – in the 1980s. The Constitution of 1947 does not, in principle, reject the possibility of exercising private economic activity. It contains provisions that can be classified into three groups: 1) directly concerning the stimulation of private business initiative; 2) provisions indirectly related to this activity, and 3) restrictive provisions. In the 1950s, some of the old forms of private economic activity in the field of small trade and services, which the totalitarian regime in the country allowed due to objective circumstances, still continued to exist. The 1960s saw a trend towards stagnation and restriction of private economic activity, which trend intensified and reached its peak after the adoption of the new constitution in 1971 until the end of the 1970s. Only later, in the 1980s, the authorities resorted to a change of strategy and the search for new forms of economic activity by private individuals.
Key words:
private initiative in the economy, socialism in Bulgaria, legal regulation of the private business initiative, periodization of legislation of the private business activity
JEL: N44, N64, N74

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17. Etropole – the Challenges of a Derbentci, Mining and Literature Center in the 16th and 17th Centuries (According to Unpublished Ottoman Documents)

Author: Krasimira MUTAFOVA

Abstract:    Although it is a village, according to the way it is designated in the Ottoman register material from the 16th and 17th centuries as ‘qarye’, Etropole has established itself as a significant mining (madanci), craft and literary center during this period. A circumstance that undoubtly is of a particular importance and has impacted on its significance as a mining, derbentci and literary center, is its designation as a passage zone of centuries-old importance. The location and natural conditions of the region, favorable and encouraging for trade contacts and the development of a number of crafts, are also important. An opportunity to trace the development of Etropole as a Derbentci and later mining center, as well as its overall economic characteristics and socio-economic profile of its inhabitants from the second half of the 15th to the first half of the 17th century, gives the voluminous and still unpublished compact information contained in several mufassal (detailed, nominal) defters from 1516–1517, 15141–1545, 1613–1614 and 1642–1646, selected for the purposes of the study. The annotated register data reveal a rather heterogeneous socio-economic profile of the residents of Etropole. It is difficult to determine which status of the settlement – derbentci or mining (madenci) – during the Ottoman period proved to be the leading one for its economic and cultural development. But it is indisputable that the economic rise of Etropole in the 16th and 17th centuries coincided with the activation of the literary and spiritual life, attested in the available sources published by the great Bulgarian medievalist Petar Mutafchiev, as well as in a number of attributions and author’s notes of writers, priests and wealthy residents of Etropole. The comparative analysis of the newly translated and summarized register data convincingly highlights the close connection between the heyday of mining, the Ottoman fiscal and legal privileges granted to the residents of Etropole and the overall literary and educational activity of the Etropole Monastery “St. Troitsa” – an important cultural and spiritual center.
Key words:
Etropole, Ottoman period, Mufassal defteris, madenci, derbenci, Etropole Monastery “St. Troitsa”
JEL: N31, N93

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18. Economic Development Models of Nahia Kara Lom Settlements in the 16th Century

Author: Nevena NEDELCHEVA

Abstract:    On the basis of unpublished Ottoman register material from 16th century the focus of this study is concentrated on the economic development of nahiya Kara Lom during the first centuries under Ottoman rule. The study will present the dynamics in the settlement development of the region, based on the retrospective presentation method. Attention is paid to the demographic changes that took place in the researched region after the arrival of the Ottomans in these lands until the 16th century. The study of these two components is important because they directly affect the economic development of the region. The sixteenth century is the time when the economic development of the settlements in the Kara Lom region can be observed best and in the greatest detail. Detailed (mufassal) tax records from the century give full information on the monetary and natural components of land rent, the taxes of cereal crops and the taxes on farmed species of animals. The study of their values and variability in the settlements of the nahiya gives us the opportunity to highlight the specifics of their economic development. The researched data allow us to mark the individual and specific models of economic development of the nahiya Kara Lom during the considered period. The analysis of the monetary and natural component of the tax rent of the population highlights the leading position of agriculture in the region, which is characterized by a relatively well-expressed polyculture. All of this suggests the existence of continuity from the time of the medieval Bulgarian state. The inclusion of the Muslim population in these economic activities says a lot about the character of the population that settled the region in the 16th century.
Key words:
Kara Lom, Ottoman documents, Mufassal defters, settlements, economic development, tax rent, nahiya
JEL: N53, N93

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19. Between the Spiritual Connection and the Economic Interests – on the Relations of Arbanassi with Wallachia

Author: Gergana GEORGIEVA

Abstract:    How does the common Balkan history develop? What divides and connects the Balkan peoples? Tracking cultural, religious, and economic relations between the Wallachian and the Bulgarian lands during the 19th century shows that neither the political boundary nor the physical “barrier” – the Danube river, the differences in governing, or the differences in languages hinder their rich and diverse relations. It turns out that the history of the Bulgarian lands and Wallachia has been connected for a long time thanks to the cultural, religious and economic ties. These relations are analyzed on the basis of the example of the village of Arbanassi, which, as important commercial center located not far from the capital Bucharest, demonstrate the intensity in economic relations. In addition, Arbanassi evolved as center of Orthodox Christianity and conductor of the politics and influence of the Constantinople Patriarchate in northern Bulgarian lands, which connected it directly with the Phanariot aristocracy in Wallachia.
Arbanassi, Albanians, Vlachs, Walachia, international trade
JEL: N33, N73, N93

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20. The Economic and Trade Network of Evlogi Georgiev in 1839

Author: Aleksandar ZLATANOV

Abstract:    The following research intends to examine and uncover the economic and trade network of Karlovo’s entrepreneur Evlogi Georgiev in 1839, based on his earliest preserved trade notebooks as a source kept today in the Historical Museum of Karlovo. It was precisely on 1 January 1839 that the famous “Pulievi – Georgievi” Company was established. The partners, Evlogi and his uncles Pulievi, signed the contract and distributed their roles and functions. The entity had three headquarters across the Balkans – Karlovo (operated by Hristo Puliev), Bucharest (operated by Evlogi Georgiev) and Galați (operated by Nikola T. Puliev). Thus, the main relationship and points of commercial and economic activity was as follows: Karlovo – Bucharest – Galați. The sources showed that the model of economic activity and trade includes the purchase of goods (mostly raw materials and semi-finished products) mainly from Karlovo and the region, which were sent through the network of associates on several main routes to the Danubian principalities for sale. Almost all exported commodities were transferred via Svishtov and Zimnicea on the Danube. The main products that “came out” of Karlovo region were woolen braid lace, woolen and cotton yarn, lining, leathers, bags, rice, baize, coarse woolen cloth or frieze, silk, madder, rose oil, etc. Evlogi Georgiev’s network operated in a considerable geographical area. The range extended into the hinterland of the European part of the Ottoman Empire (Rumelia), along the Danube River and to the north of then free-trading Danube principalities. The network itself of “Pulievi – Georgievi” Company relied exclusively on social capital – the Bulgarian emigrants and merchants along the Danube River. In this way, an effective structure of trusted collaborators and commissioners was built in vital topographical points along the Danube River, which was of capital importance. Such network of trusted partners with fast contacts and exchanged information make the commercial activities efficient. Skillful coordination and leadership at the operational level by the Karlovo’s entrepreneurs, together with honest relationships throughout the network, increased the added value. The high quality Bulgarian goods, the main subject of trade, were also an important element of the success. All this leads to the conclusion that the economic and trade network for a long distance operations of E. Georgiev and his uncles built in 1839 was precisely the necessary stable and effective foundation, the first most important step, for the transformation of the Karlovo’s entity into one of the largest Bulgarian companies in the 19th century.
Key words:
Evlogi Georgiev, Economic and Trade Network, “Pulievi – Georgievi” Company, Karlovo’s entrepreneurs, 19th century, Karlovo, Bucharest, Galați
JЕL: N33, N73, N93, O12

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21. Tobacco in the Business Enterprises of Christo and Evlogi Georgiev

Author: Valentin KITANOV

Abstract:    Tobacco penetrated the territory of the Balkans at the end of the 16th and the beginning of the 17th century, and over time it became the main livelihood for a considerable part of the population, as well as an important commercial product with a significant contribution to both, the tax system and the financial situation of those involved in its production and trade. The high increase in the use of tobacco products in the 19th century had commercial and cultural motives. As a result, tobacco production areas were expanding and the demand for tobacco on the domestic and export market was rising. From the second quarter, and especially from the middle of the 19th century on, more and more wealthy Bulgarians established a position in the tobacco sector through the production, trade or purchase of tax revenues. Part of this group, from the first half of the 1950s on, were Christo and Evlogi Georgiev. The purpose of the present study is to reveal for the first time the place of tobacco in the economic enterprises of the Georgiev brothers. It aims to outline the rationale behind their decision to venture in this economic sphere, as well as to trace the hurdles and dilemmas they faced. Correspondence from the 50s–60s of the 19th century between entrepreneurs and the two brothers reveals in detail various issues related to the trade or cultivation of tobacco. Tobacco was present for a much longer time in the Georgiev brothers’ commercial enterprises – from the first half of the 1950s to the period of war between Russia and the Ottoman Empire in 1877–1878. In addition, Christo and Evlogi Georgiev sought to increase the quantity of traded tobacco through attempts of own production on the territory of Wallachia, which was not characteristic of their economic profile until the mid-1960s and was a supplement to other large-scale productions. With their involvement in the production and trade of tobacco during the period from the beginning of the 50s till the end of the 70s of the 19th century, the Georgiev brothers became part of the generation that established positions in the tobacco sphere. Regardless of the difficulties and dilemmas they often faced, they provided the crucial solid historical basis needed for the establishment of tobacco as an essential element, both, in the economic mentality of the following generations and in the economic infrastructure of the Bulgarian state from the end of the 19th and the beginning of the 20th century.
Key words:
Georgiev brothers, business enterprises, tobacco, tobacco production, tobacco trade, business correspondence
JEL: N83, N93

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22. Money Given on Interest. Opportunities for Development in a Micro-society (According to the Example of Hadzhi Theodor from Elena and His Successor, from the 1830s until the Bulgarian Liberation)

Author: Stanimir DIMITROV

Abstract:    The practice of giving money with interest is a long tradition in different societies. Today’s examples are studied by the microeconomics. This paper investigates the case of Ivan Hadzhi Teodorov and his family. The study in based mainly on unpublished documents from his archive at the Museum of the Revival Period – AIK “Daskalolivnitsa” in town of Elena and from the Bulgarian Historical Archive at the National Library “St. Cyril and St. Methodius”- Sofia. The main emphasis of the research is giving of money with interest, following the example of the Elena’s notable Hadzhi Teodor and his successor from the mid-19th century. In the process of research, several conclusions were drawn: the interest on the allocated matches does not exceed the percentage of other money lending examples presented by authors from the same period. The research shows that Elena’s notables were not only lenders but also borrowers of money. The documents reveal the existence of an orphanage fund, created by Hadzhi Theodor – a practice in which there is something human and noble.
Key words:
interest, notable, usury, orphan funds, Elena
JEL: N33, N83, N93

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23. On the Economic Activity of Evstati Selveli in 1842

Author: Veselin GORANCHEV

Abstract:    The publication aims to present information about the economic activity of the prominent Tarnovo entrepreneur and public figure of the 19th century Evstati Selveli. The research uses previously unpublished Greek-language documents: a personal notebook of Evstati Selveli kept in the Regional Historical Museum in Veliko Tarnovo, an account-book that belonged to a partnership established between him and Atatnas Hadzhi Nikolaou, as well as two of their commercial contracts kept in the State Archives in Veliko Tarnovo. The mentioned primary sources shed light on the business activities which took place in 1842. The partnership of Evstati Selveli and Atanas Hadzhi Nikolaou, functioning in 1842, was established in 1841. We have reason to assume that its name was “Evstati Hadzhi N. Selveli and Company”. The partners maintained a wide range of contacts – both in the Bulgarian lands and in Constantinople. The publication sheds light on several important issues: the names of the business partners; the goods they traded with; the volume and prices of the traded comodities; the trade routes along which they were transported; the payment methods and terms; the used currency, etc. The commodities that E. Selveli and A. Hadzhi Nikolaou imported to the Bulgarian lands were different types of yarns, unbleached calico, basma and other kinds of cotton cloth and materials, etc. They exported rose oil and silk from the Bulgarian lands to the capital city of the Ottoman Empire. The main flow of imported goods came from Constantinople, through intermediaries. From the Ottoman capital the goods were transported by ships to Varna from where they were dispatched to the interior of the Bulgarian lands. Evstati Selveli and Atatnas Hadzhi Nikolaou also maintained close commercial ties with Vienna and, more specifically, with another entrepreneur who originated in Tarnovo – Luka Hadzhi Paraskeva. Unfortunately, we do not have detailed information about the nature of their contacts in 1842. The main conclusion is that during 1842 the traded goods and raw materials sent and/or received to/from E. Selveli and A. Hadzhi Nikolaou passed over Constantinople which means that the capital of the Ottoman Empire served as an important trading hub for the Tarnovo entrepreneurs.
Key words:
Bulgarian Revival, entrepreneurs and merchants, Evstati Selveli, Atanas Hadzhi Nikolaou, Hadzhi Mincho Hadzhi Tsachev
JEL: N73, N93

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24. The Merchants and Their Çiftliks – Dimitar Brakalov and His Agrarian Dilemmas in the 1860s and 1870s

Author: Nikolay TODOROV, Petar DOBREV

Abstract:    The present research was provoked by an extremely interesting correspondence between two Bulgarian merchants, Dimitar Brakalov and Hristo Tapchilestov, entirely dedicated to the leasing, management and organization of production in several çiftliks in the Burgas region, on the Black Sea coast. The documents span from the 1860s to the 1870s and are stored in the Bulgarian Historical Archive of the National Library “St. St. Cyril and Methodius”. There are a total of 72 letters with the main addressees – Hristo Tapchilestov and Nikola Tapchilestov. Our paper dwells in more detail on the history of the çiftliks in question – in the villages of Atanasköy and Keleshköy. The information from the letters was correlated to data extracted from two types of Ottoman archives, which are particularly valuable for the reconstruction of the Ottoman economy in the 19th century – the temettuat and nüfus defters. Thanks to these documents, the complete reconstruction of the structure of the çiftliks was possible: quantity of crops, yields, employment of seasonal workers, but also the amount of owned land, farm animals, taxes paid, total annual yield etc. The economic networks that were built around the çiftliks is also outlined. Judging from the data, the estates were quite profitable, strived for capitalist modernization and paid decent wages to the hired labour force. Our archival work showed that the çiftliks Atanasköy and Keleshköy were originally owned by high-ranking representatives of the Tanzimat political elite, but also direct relatives of the ruling sultans – Mahmud II and Abdulmejid I. This shows that large estates were considered a profitable investment by the Muslim elite at the time, but also by rich Christian merchants like Brakalov, who started leasing the çiftliks in the 1860s. The researched estates continued to be profitable even after the separation of Bulgaria from the Ottoman Empire in 1878, when Brakalov became their owner, showing the durability of the çiftlik phenomenon.
Key words:
çiftliks, Ottoman Empire, Bulgaria, Burgas, Agrarian question
JEL: N13, N23, N73, N93

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25. On Business Contacts of Peter Kermekchiev with Evlogy Georgiev in 1878–1881

Author: Svetla ATANASOVA

Abstract:  So far the business relationships of the Revival-period entrepreneurs Peter Kermekchiev and Evlogy Georgiev haven’t been independently researched. The various types of business, social and charity activities of both prosperous Bulgarians show their ability to influence and change the community’s tendencies and attitudes. The scale of their business activity outreaches the Bulgarian borders and goes as far as the Balkan peninsula, Central Europe and Russia. After accumulating substantial funds from trade, state concessions, government provisions and credits of companies and sole proprietors, they dived into brave investments in the modern era. Being very well educated, adaptive and well-known with the political and economic tendencies of the liberated Balkan countries the two entrepreneurs managed to successfully multiply their capitals. They maintained relationships with the government circles in Bulgaria and Romania, as well as contacts with the embassies of England, France and others. In the Central State Archive in Sofia, in the personal archive of Peter Hadzynenchov Kermekchiev are preserved letters and financial extracts sent from Evlogy Georgiev – a Bulgarian principal agent in Bucharest who was managing the Agency of Bulgarian Principality in Romania and was an owner of an office for currency exchange and securities trade. The letters are sent to Peter Kermekchiev for the period from 4th of October 1879 until 23rd of January 1881. They are a source of information on the invested capitals and securities of Peter Kermekchiev into the Trading and Banking house of Evlogy Georgiev and their subsequent management for sending of securities of the Bulgarian entrepreneur for keeping in the Ministry of Finances of Bulgaria, for renting an apartment in Bucarest for Kermekchiev and others. There are also some extracts and bills sent to Peter Kermekchiev and a draft letter to Evlogy Georgiev in Bucharest. The archived documents are reflecting the last years of Peter Kermekchiev when he withdraws himself from an active trading and commends the work on managing and multiplying his finances and investments to the Bank House of Evlogi Georgiev in Bucharest.
Key words:
Peter Kermekchiev, Evlogy Georgiev, letters, extracts, entrepreneur, finances investments
JEL: N 01; N 83

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26. Financial Policy and Budget as Tools for Local Development – on the Example of Svishtov Municipality (1879–1886)

Author: Margarita MARINOVA

Abstract:  The article traces the policy of the municipality of Svishtov in the field of local finances and budget in the period 1879-1886. The research is based on previously unused empirical material, mainly the protocol books of the city administration. When drawing up the budgets, the Svishtov City Council strives, on the basis of the law, to match them with the real possibilities of the taxpayers and the urgent needs of the city. By using the comparative approach, the conclusion is reached that for the period 1884-1886, the fees from the withdrawal and measurement of the goods and from the barrier fee, inherited from the Ottoman legislation, have the highest high relative share in the budget revenues. It is concluded that the funds invested in the local infrastructure, for the fire service, for the maintenance of the schools and for health care contribute to the improvement of the living and working conditions of the citizens. The results achieved are modest, since at this stage the legislation cannot yet provide municipalities with regular and secure sources of income.
Key words:
financial policy, budget, municipality, revenues, expenses, taxes, Svishtov
JEL: H72, N93

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27. The Realization of Svishtov`s Revival Merchants Heirs in Post-liberation Bulgaria

Author: Emilia VACHEVA

Abstract:    This article traces the economic behavior of the heirs of Svishtov Revival merchants after 1878. Based on the available information, the participation of the second and third generation of merchant elite in the political and cultural life of the country and the city is highlighted and supplemented. Their education, professional orientation and realization are noted. The analysis of the available materials allows us to outline three main models of the realization of the heirs of the Renaissance merchants. In the first model, the sons continued to develop commercial activities, initially jointly with their fathers within the city, and after their withdrawal, they successfully expanded the bequeathed capitals. In the second model, the heirs develop an independent commercial activity. A significant part of them leave the family businesses and join the administrative and management apparatus of the country, they form the third model of realization.
Key words:
Svishtov, entrepreneur, trade, trading company, successor, clerk
JEL: N33

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28. Petar Gabe and His Dilemma: Construction of Railway Devnya-Dobrich or a Modern Port in Balchik

Author: Tsvetolin NEDKOV

Abstract:  On the basis of a heterogeneous source material, the study reveals the public, economic and strategic rationale of the construction of the Devnya – Dobrich railway line instead of the modetnization of the port Balchik. Tanks to P. Gabe this railway was launched on December 1, 1910. The construction of the railway cost state 5 milion BGN. This amount is much smaller than the one needed for modernization of the, port in Balchik. It helps to strengthen the economic life of Dobrich and also the agriculture of South Dobrudzha.
Key words:
railway Devnya – Dobrich, port Balchik, South Dobrudzha, wheat trade
JEL: N 74, N 94

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29. On the History of Agriculture Lending in Region of Gabrovo (1878–1912)

Author: Rositsa ZLATINSKA

Abstract:    The text presents and analyzes the foundation and the work of the agricultural case in Gabrovo. With the gradual economic development the need of organized agricultural credit system becomes greater. As a result of this need emerged first, albeit primitive, credit institutions – agricultural cases. Their main goal is to implement a financial support to farmers and increase the production and the income of agricultural sector. Farmers need low interest loans to develop their activities. In the 60s and 70s of the 19th century major source of capital for farmers were usurers. Most of them lend money in poor conditions. There are several cases in which the obligations of farmers grow a lot and they were forced to sell a lot of their property to pay back to the usurer. The cases lend money under better conditions than the usurer. The interest rate is fixed at 1% per month or 12% per year. On the other hand, the interest rate of the usury loans is between 3–5% per month and 36–60% per year. The difference is obvious, it leaps to the eye. Yet, there are a lot of cases when farmers use the services of the usurer instead of these of the agricultural cases. During the whole period both organized and unorganized credit forms develop and operate together. The positive results of the work of the agricultural cases are visible. But they also have a lot of problems. The biggest one is the lack of enough money and a lot of problems with their administrative structure, their personal and the procedure of lending money. After such a long time of existence and much reorganization the cases cannot cope with their problems and disadvantages. Evidence of the role and the importance of agricultural cases is the fact that they continue to work in the Ottoman Empire and in Bulgaria after the Liberation of 1878.
Key words:
usury, agricultural case, agricultural credit, organized credit, unorganized credit, banking system, interest rate, loan
JEL: N00, N13

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30. Tourism in Plovdiv during the 20th Century: Factors, Development, Problems, Policies, Resources

Author: Vidin SUKAREV

Abstract:    This study is based on documents from Plovdiv State archive, newspapers, scientific researches, popular publications, handbooks, memories. The results are presented in synthesized variant. Until the second half of 30s the tourism in Plovdiv was accepted as outdoor excursions, especially in the mountains. The local tourist associations were branches of Bulgarian tourist association and Youth tourist union. The biggest achievement of Plovdiv tourists until the end of Second world war was the construction of hut “Zdravets”. The new status of Plovdiv Fair as international since 1937 initiated development of “economic tourism”. A Tourist committee was created by Plovdiv municipality and took measures for city advertisement and preservation of the cultural heritage. Unfortunately, the war ended these promising activities. Several years of economy transformations and postwar crises followed the coup d’état on 9 September 1944. The development of International fair and the preservation of cultural heritage, the main tourist resources, restarted at the end of 40s and especially in 50s. Other important area of investments was the near territory of Rhodopes. Different trade deficits and stock delivery problems accompanied the tourism during the communist regime. The termination of private entrepreneurship put a continuous trend of reduce or slow increase of tourist establishments. At the end of 1989, the beds in hotels were approximately 3000 but the Fair needed not less than 15000. The rest were supplemented by private accommodations – a paradox for socialist state and economy. Despite such disadvantages, Plovdiv was awarded with European gold medal for preservation of cultural heritage in 1979 and hosted three World EXPOs (1981, 1985, 1991). During the decade of democratic changes, last of the 20th century and this research, Plovdiv confirmed its importance as a center of cultural and event tourism. The International fair multiplied its exhibitions, the State hotels were privatized, the number of private tourist venues grew rapidly. Plovdiv municipality was the main contributing authority throughout the whole period.
Key words:
Plovdiv; 20th century; Tourism; Tourist associations; International Fair; Municipality of Plovdiv; Old Plovdiv; Cultural heritage; Natural park “Rhodopes”
JEL: N9, Z32

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31. Agriculture Collectivization and the Essential Oil Cultures in Bulgaria (The Case of TKZS “Vasil Kolarov” at Buzovgard village)

Author: Radoslav PETKOV

Abstract:    The article is focusing on the changes in the Bulgarian rose oil production during the 1940s and 1950s and especially on the cultivation of rose oil plants and rose oil production in socialist agricultural cooperative (TKZS) in the village of Buzovgrad. This period is characterized by significant changes in the politico-economic system of Bulgaria. Private land ownership was legally abolished. The research period presented in this article covers the years between 1944 and 1959. The main purpose of the article is to analyze the problems with which were faced by the management of the socialist agricultural cooperative and the decisions taken for the effective implementation of the state plans for rose oil production. The rose oil production results and activities involved were negatively impacted as a consequence of the political and economic changes in Bulgaria. The main source of information for this article is the archive documents from the creation of the TKZS up to 1959 which were researched at State Archive – Stara Zagora. The documents researched included the protocols of minutes from the management board, general meetings, annual plans and reports regarding the production activities of the collective farm, yearly financial and accounting reports, and balance sheets.
Key words:
rose oil, agricultural cooperatives, socialism, Bulgaria, tranformation
JEL: N 54, P 32

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32. Problems of the economic development of the town of Kyustendil in the conditions of instability and crises from the 1990s to the present day

Author: Veselina GEORGIEVA, Sonya GEORGIEVA

Abstract:    The specifics of the economic changes in Bulgaria in the 1990s were determined by the internal and external conditions under which the transition from centrally planned administration to a market economy began. This is particularly true for the town of Kyustendil and its district, which was declared administrative one in 1999. Its development in recent times has been accompanied by political changes, internal and external disturbances, which lead to permanent economic backwardness and demographic collapse. The past years provide examples of a clear discrepancy between proclaimed ideas and actual achievements. The present study aims to analyze form an economic-historical perspective the deep internal causes, as well as the impact of external shocks, leading to a negative or positive effect on the economy of the town during the considered period. The final reflections direct attention to the possible ways of developing the potential of Kyustendil and the region in the fields of tourism, balneotherapy and industrial production.
Key words:
economic change, economic backwardness, Kyustendil, demographic collapse, entrepreneurial exemples
JEL: А10, J11, J21

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33. Submissions guidelines for the Proceedings of CEHR