1. THE RISE OF THE MODERN STATE SINCE 1500: ANNUAL REVENUES OF EUROPEAN AND OTHER STATES
Author: Şevket PAMUK, Kıvanç KARAMAN
Abstract: Recently, with the economic and political problems especially in developed countries and the Covid 19 pandemic, the place of the state in economic development is being debated once again. This presentation focuses on the simple ratio revenues as percent of GDP and summarizes the recently collected evidence about the growing role of the states in Europe and elsewhere during the last five centuries. It shows that revenues of states as a percent of GDP have been rising since the sixteenth century. This powerful trend began in Europe and has spread to the rest of the world including many of the developing countries since the second half of the nineteenth century. Historical examples going back to the era before the Industrial Revolution suggest that economic development took place not in countries where the state was small and weak, but in countries where a strong state supported economic development.
Key words: state interventionism, Tax Revenues / Gross Domestic Product, power/capacity of the state, the place of the state in the economy, developed countries, developing countries
JEL: I31, I32, N34
2. THE FACTORS OF ECONOMIC GROWTH AND THE PERIODIZATION OF THE ECONOMIC HISTORY OF THE BULGARIANS IN THE OTTOMAN EMPIRE (15TH – 20TH CENTURIES)
Author: Ivan ROUSSEV
Abstract: The article proposes a concept for the economic history periodization of the Bulgarians in the Ottoman empire (15th –20th centuries), made on the basis of the main economic growth factors: the growth of the productivity of labour and capital; technical progress, a consequence of the Industrial Revolution achievements, of the development of knowledge, science and education; the human capital; the emergence of modern institutions, stimulating the entrepreneurial spirit of the population and innovation. In an attempt to substantiate the main periods through which the economic development of the Bulgarians passed through the era have been observed the periodizations already made of the history of the Ottoman empire and of Bulgarian history in the 15th –20th centuries. Considering the presence or absence of the above-mentioned factors we can fix one main internal border – the beginning of the 19th century. It distinguishes two separate periods in the Bulgarian economic history during the ottoman rule, respectively: 15th – 18th centuries and 19th –beginning of 20th centuries.
Key words: the factors of economic growth, Ottoman empire, periodization of the economic history of the Bulgarians in the Ottoman empire (15th –20th centuries), Bulgarian National Revival Period, industrialization
JEL: B0, N1, N13, N63, N94
3. PREREQUISITES FOR THE DEVELOPMENT OF THE TOBACCO INDUSTRY IN BULGARIAN LANDS DURING THE 17TH – 19TH CENTURIES
Author: Valentin KITANOV
Abstract: During the 17th–19th century, tobacco production and trade was not only a major component for the Ottoman economy – the development of the tobacco indus try significantly shaped the economic and social structure of a number of regions that were under the Ottoman rule. The pace and scope of development of tobacco produc tion in the Bulgarian lands were influenced by a wide range of factors. In their entirety, these factors predetermined the position and role individual regions had in the develop ment of the tobacco industry. This led to a situation where quantity, volume and social importance of tobacco production had different weight in individual settlements or regions, and this interdependence was sustained throughout the entire period of Ottoman rule in the Bulgarian region. Main prerequisites that predetermined the development of the tobacco industry as a whole were the natural, human and state factors. They were most lasting and central for the development of the tobacco industry and its longevity in a historical perspective. Based on many years of experience, the agricultural population in Bulgaria had an excellent knowledge of the soil and climatic conditions in their region and during the 17th-19th century they were able to adapt and cultivate oriental types of tobacco accordingly. Beside the natural, human, social, legislative and cultural prerequisites, there are a number of other factors that helped shape the different characteristics of the tobacco industry in the Bulgarian region. For example, the provision of quality tobacco seeds, the presence or absence of encroachments on tobacco, natural disasters, the disposal of funds to support tobacco production, etc. The combination of several or of all these prerequisites laid the foundation for the successful development of tobacco production in the Bulgarian region and the ability to turn it into a major economic branch with an important role for the financial, social and international politics in Bulgaria after the end of the Ottoman period and during the twentieth century.
Key words: tobacco, tobacco farmers, tobacco region, Ottoman Empire, Bulgarian lands, soil characteristics, legal and regulatory framework
JEL: N83, N93
4. THE ATTITUDE TOWARDS USURERS AND INTEREST IN THE NINETEENTH-CENTURY OTTOMAN BULGARIA. THE ORTHODOX PERSPECTIVE
Author: Hristiyan ATANASOV
Abstract: This article delves into a prevalent question within the realms of economic history and theory: How were usury and interest perceived? It primarily explores the religious and moral viewpoints concerning lending with interest from the vantage point of Orthodox Christianity – the dominant religious denomination in Ottoman Bulgaria. The article provides both direct and indirect evidence of the strong religious aversion to usury during the studied period, an attitude that significantly influenced the mindset of the populace. Furthermore, this research examines indications of evolving perspectives over time. In the nineteenth century, the predominant moral disapproval of usury began to wane, influenced by Western liberalism and rationalism. Nonetheless, it remained the dominant and defining perspective.
Key words: interest rate, usury, religion, morality, Ottoman Bulgaria
JEL: N13; B11
5. ECONOMIC DEVELOPMENT IN BULGARIAN IDEAS AND PROJECTS FOR STATE ORGANIZATION AND GOVERNANCE IN THE 19TH CENTURY UNTIL 1879
Author: Petko St. PETKOV
Abstract: The article examines the ideas and projects for the economic development of Bulgarians, including the factors of economic growth or regression, which are present in the program documents of Bulgarian public and political figures and organizations until 1879. Instead of a complex of factors supporting future economic growth, some of these documents contain a sharp critical attitude to the causes of economic backwardness (the lack of guarantees for legal order in the Ottoman state, the discriminatory attitude towards non-Muslims, the heavy tax burden, etc.). The manifestations of economic divination, containing realistic and well-grounded ideas for economic prosperity, stand out: the program of Sophronius Vrachanski from 1811, the part of the memoir from 1867 on the importance of the state budget as an instrument of effective economic management, the economic nationalism of Georgi St. Rakovski, the sensible idea, implemented in the practice of the Exarchate, to manage the nonspiritual secular affairs of the Bulgarians by a special institution, the Mixed Council, operating both at the central level and in each diocese.
Key words: economic development, Bulgarian ideas and projects, program documents
6. WHERE AND WHY WAS THERE A LACK OF ECONOMIC GROWTH IN THE BULGARIAN LANDS DURING THE NATIONAL REVIVAL PERIOD
Author: Ivaylo NAYDENOV
Abstract: In the 18th and 19th centuries, there were regions and settlements in the central part of the Balkans that were not characterized by dynamic economic, social and public development. As examples, the regions of Pernik, Radomir, Tran, Godech, Kustendil, etc., where the processes of renewal and economic growth characteristic of the Bulgarian National Revival period are absent. The answer to the question is not one-sided. Probably the factors are many and interrelated – the absence or weak development of market relations; the lack of or the weak entrepreneurial class (of Bulgarians, Greeks, merchants from Dubrovnik, Jews) to stimulate the production and exchange of goods and services in long run (from the 15th to the 19th century); the lack of powerful local commercial houses; the lack of social/entrepreneurial networks that contribute to the exchange of goods, financial resources and information between the regions of Pernik, Radomir, Tran, Breznik, etc., and distant regions; the complete lack of or the weak contacts with nearby and distant lands; the existence of restrictive agrarian regime based on chiflik holdings; the lack of local markets and fairs where more intensive commercial exchange could take place; the existence of particular economic and social atmosphere that stimulate anachronistic way of thinking, and it serves as an obstacle to the economic growth. The idea of the presented text is to provide a more realistic view of the socio-economic transformations that took place during the Bulgarian National Revival.
Key words: dynamic economic, Bulgarian National Revival, regions, factors, obstacle.
JEL: N93; O49
7. CONSULATES AS FACTORS OF ECONOMIC GROWTH IN THE BULGARIAN REVIVAL
Author: Simeon SIMEONOV
Abstract: This article sheds light on the role of consular institutions as factors of economic growth in the Bulgarian lands before the Liberation from Ottoman rule. Based on a comparative study covering some of the most influential consular representatives in Bulgaria, the article outlines the challenges facing foreign consulates in decades marked by imperial decline, relentless reforms and economic turmoil. Particular emphasis is placed on the interrelationship between political, diplomatic, societal and economic imperatives – as institutions operating in different public spheres, consulates often had to find a balance between these disparate fields of action. In what way and to what extent did consulates prioritize economic activities and were their economic designs crowned with success? What were their economic goals and how did they contribute to achieving economic growth? Finally, what importance can be attached to consular services in the context of different Bulgarian urban economies – and are they representative of the wider Balkan context? The article conceives of consulates as important institutions in the international infrastructure of the Balkans, which fostered the integration of the region into European commercial networks and the modern international community in the late nineteenth century.
Key words: consuls, Bulgarian National Revival, institutions, integration, capitulations, modernization, Tanzimat
JEL: N43, N73, N93
8. LAND AS A FACTOR FOR ECONOMIC GROWTH. INTERTWINED TRAJECTORIES OF LARGE-SCALE AGRICULTURE IN BULGARIA IN THE 19TH AND 20TH CENTURIES
Author: Nikolay TODOROV, Petar DOBREV
Abstract: Both Bulgarian and Western historiography have so far mostly ignored the capitalist estates in Bulgaria (the so-called çiftliks) in the 19th and 20th centuries. And while çiftliks were indeed relatively few in number, recent research shows their undeniable influence and persistence. Our work in the Bulgarian and Ottoman archives complements this trend, and in this article we examine some of the areas of successful large-scale landholding and hence the question of land as a factor in economic growth. By analysing the regions of Vidin, Burgas and Dobrudja, we try to answer the question of why çiftliks developed successfully only in certain areas of the country and, consequently, what determined their failure in other, otherwise fertile regions. In our work, we look for the interplay of historical, demographic, geographical and economic factors that make land a profitable economic investment in some places and make agrarian capitalism impossible elsewhere. Our reasoned assumption is that the Ottoman context is crucial for the development of çiftliks after 1878: the different forms of land use in the regions we examine in the late nineteenth century predetermined economic development after 1878 as well. For this purpose, we use Ottoman records of the temettüat defterleri type, which particularly fully show the state of agriculture in the 1840s, as the starting point of our study. We focus mainly on three zones – Vidin, Dobrudja and Burgas – the choice being dictated by the fact that in all three zones there were favourable conditions for large-scale agriculture, but only the two seaside districts developed such agriculture after the Bulgarian liberation, while in Vidin it was completely absent. This is determined by the fact that in the first two zones, during Ottoman times, the peasants owned the land, while in Vidin they were only tenants. It is interesting also to note that in Burgas there was a predominance of Muslim-owned çiftliks which after the Liberation of Bulgaria were bought or taken over by Christians, while in Dobrudja state protections helped the development of Christian-owned çiftliks even before 1878. With quantitative data we also show that in Dobrudja and Burgas çiftliks were economically viable and market-oriented agrarian structures, which in addition influenced the overall economic growth.
Key words: çiftliks, Ottoman Empire, Bulgaria, Burgas, Dobrudja, Vidin, Agrarian question, large-scale agriculture
JEL: N13, N23, N73, N93
9. PERIPHERY OR SEMI–PERIPHERY? WHEN WERE THE BULGARIAN LANDS INCLUDED IN THE WORLDECONOMY?
Author: Aleksandar ZLATANOV
Abstract: The paper aims to review several perspectives on when and how the Bulgarian lands (Ottoman Rumelia) were integrated into the world system of capital? And in what capacity – as periphery, semi-periphery, or something else? For this purpose the prism of the so-called world-system analysis will be used. World-systems theory was developed in the early 1970s by the American sociologist and historian Immanuel Wallerstein (1930 – 2019). The theory was influenced by various world-renowned scholars such as C. Polanyi, N. Kondratiev, I. Prigozhin, A. Smith, J. Schumpeter, etc., but above all by the tradition of the French Annales School and Braudel’s concept of the „longue durée“. In 1976 Wallerstein founded the „Fernand Braudel Center for the Study of Economies, Historical Systems and Civilizations“ at Binghamton University, which with its academic journal „Review“, became the most influential intellectual centre for the application of world-system analysis. At the end of the 1970s, Wallerstein posed for the first time the research questions: when exactly and how was the Ottoman Empire incorporated into the system of global capital? Was this incorporation a singular event, or were the different regions of the empire – Rumelia, Anatolia, Syria, Egypt – incorporated at different times? A few years later, from the early 1980s, Wallerstein, and his collaborator Reşat Kasaba, answered these questions by placing the full incorporation of the Ottoman Empire into world-economy in the period 1750–1839. By reviewing Wallerstein and Kasaba’s main arguments, as well as the data and research that has accumulated, we will try to find out whether their claims are still valid today or need some refinement?
Key words: World-economy, World-system analysis, Capitalist core, Ottoman Empire, Ottoman Rumelia, Bulgarian lands, 19th century
JEL: N13, N15, N73, N75, N93, O11, O13, O14
10. EDUCATION AND ECONOMY IN BULGARIA 1879–1912
Author: Pencho D. PENCHEV
Abstract: The education system after the Liberation of Bulgaria in 1879 was nationalized and centralized. As a result, the number of literate Bulgarians increased, but the system became detached from the social necessities and began to work in its own favor. At least for the considered period of 1879–1912, no visible positive consequences of the government education policy on the overall economic development of the country can be established, i.e. education fails to become a factor accelerating economic modernization. The underdeveloped agrarian economy of Bulgaria turned the primary schools literally into tombs for teachers and students, while the specialized professional schools produced mainly civil servants and clients of the corrupt political system. Compulsory education in a certain sense emerges as a tax that does not bring a prospect of improvement in the material situation of ordinary people, but strengthens their poverty. The general conclusion of the historical reconstruction is that in the conditions of post-liberation Bulgaria, education perhaps brings some social benefits, but the facts convincingly show that the thesis of its universal benefit cannot be accepted.
Key words: education, free, compulsory, social benefits, social costs
JEL: I25, I28, N33
11. THE PRESS AS AN OPPORTUNITY TO REFORM BULGARIAN AGRICULTURE IN THE 80-90-S OF THE 19TH CENTURY
Author: Yordanka KRIVOSHIEVA
Abstract: The purpose of the present study is to show the features, essence and meaning of the press, organized and supported by the idealism and patriotism of the young, highly educated and economically far-sighted Bulgarian intelligentsia. The Bulgarian agricultural periodical and book press from the last two decades of the 19th century introduces the novelties of modern agriculture, highlights the advantages of the economy based on scientific knowledge and the use of agricultural machinery. Economic reforms are the work of an enlightened society that respects and values agricultural labour. The seal suggests the importance of constant, daily work and emphasizes personal initiative. The conservative rural population did not sufficiently benefit from the knowledge and ideas for rational organization of the farm that the agricultural press offered. A certain apathy about the press also shows part of the agricultural intelligentsia. Incorrect subscribers and officials create difficulties for its normal functioning and distribution. The published books do not receive the necessary attention due to the mistrust of the peasants towards the people of intellectual work. All this limits the usefulness of the press and slows down the reform process. Newspapers, magazines and books on agricultural issues from the last two decades of the 19th century represent a national treasure that has not lost its relevance. The chronological, systematic, comparative and analytical method was used for the research.
Key words: Bulgaria, agricultural, reforms, periodical printing, books
JEL: N5; 54
12. THE SECOND STATE COURT (1910–1914) AND THE CHARGES AGAINST THE FORMER MINISTER NIKOLA GENADIEV (1903–1907)
Author: Evgeni KOSTOV
Abstract: The Institute for constitutional Ministerial criminal liability in Bulgaria is based on article 155-159 from the Constitution of the Bulgarian Principality, adopted in 1879. It provides for a specific procedure through which the members of the government to be judged outside of the civil courts. From 1880 to 1923, through this procedure four trials were held. In this case, we focus on the work of the Second State Court (1910–1914). He explores potential law violations committed by ministers from the popular liberal government of Bulgaria, in the period 1903-1908 years. Later, in 1913 year, the indictment, was published. Sixteen charges (individual and collective) have been brought against the former Minister of Trade and Agriculture N. Genadiev. In their analysis, two types of accusations emerge. In some of them, his decisions were approved in the Council of Ministers and in the National Assembly. The author of this article concludes that there should be no or few convictions here. In the other case – without the sanction of a higher authority, the violation of the laws by the former minister should end with more serious convictions. However, the third state court did not reach the end – due to a number of political reasons, in 1914 a decision was made to remove the responsibility from the accused former ministers.
Key words: Bulgaria, ministerial criminal offenses, the Second State Court in Bulgaria (1910–1914), constitution, Nikola Genadiev
JEL: K42, №73
13. ACTIVITIES OF THE MINISTRY OF AGRICULTURE IN THE INTERWAR PERIOD – PRECONDITIONS AND FACTORS
Author: Rositsa ZLATINSKA
Abstract: The text presents and analyzes the work of the Ministry of Agriculture in the interwar period. The history of the Ministry of Agriculture began as early as 1879, when a proposal was made to set up the Ministry of Common Buildings, Agriculture and Commerce, but in practice it did not constitute itself independently. In 1893 the Ministry of Trade and Agriculture was established and it began operating independently. Over the decades, the Ministry of Agriculture has gone through a dood deal of gradual structural and organizational transformations, as well as name changes. However, in terms of its content and functional characteristics, it has always remained one of the main units in the system of state governance in Bulgaria, as an integral part of the executive branch. Its important role is due to the traditional agrarian nature of the economy, as well as the dominance of the rural population in social stratification – essential features of Bulgarian capitalism throughout the 1878–to–1944 period. The main trends in the development of the system of state economic institutions in Bulgaria, including the Ministry of Agriculture, are determined by the domestic and international situation. Various factors have facilitated the process, including the general state of the economic base, internal political events, the ideological economic views of the ruling elite, the personnel potential, the influence of foreign institutional models, the degree of integration of the Bulgarian economy within the framework of the European and world economy, etc. The main guidelines of the Ministry of Agriculture are: supporting and encouraging farmers in agriculture, livestock development activities, support for profiled agricultural education, execution of specialized pre-war tasks. The Ministry of Agriculture, since its establishment and during the interwar period, has proved to be a contributing factor in the administrative and management system of the country. What the Ministry of Agriculture achieved during the period under review has contributed to the stabilization, improvement and modernization of agriculture in the country.
Keywords: agriculture, Ministry of agriculture, agricultural policy, economic crisis, economic history of Bulgaria, Interwar period
JEL: N10, N24, N54, N 94
14. THE ECONOMIC SITUATION AND THE ESSENTIAL OIL INDUSTRY OF BULGARIA DURING THE SECOND WORLD WAR (1939–1945)
Author: Radoslav PETKOV
Abstract: The production of essential oils and specifically rose oil are among the most important, sustainable and profitable areas in the agricultural industry of Bulgaria. Their orientation in the field of luxury, puts them as a preferred business by many entrepreneurs, both in Bulgaria and around the world. The article aims to critically analyze the changes and development trends of the Bulgarian rose production and essential oil industry during the Second World War (1939-1945). In order to achieve more specific results, a comparative approach of industry data from the First World War (1914–1918) compared with information on the development of the sector during the Second World War is applied. During the analyzed period, a significant change took place in the political, economic and social development of the world, which found its projection in the development of Bulgaria and Bulgarian society. The article focuses on the processes in the military economy of Bulgaria related to the rose-oil industry and the drastic changes in the industry.
Key words: Rose oil, rose-oil industry, First World War, Second World War, essential oil industry
JEL: N 44, N 54, N 64
15. TRADE WITH THE ENEMY – TRADE AND ECONOMIC CONTACTS AS A MEANS FOR THE ECONOMIC RECONSTRUCTION OF BULGARIA AT THE END OF 1944 AND IN 1945
Author: Mirena MITOVA
Abstract: The article seeks the importance of foreign trade for the revival of the Bulgarian economy in the decisive stage of the Second World War at the end of 1944 and in 1945, when Bulgaria was in international economic isolation. The effect on Bulgaria’s commercial and economic contacts of the restrictions of the American and English law on “trading with the enemy” imposed on the satellites of the Third Reich is traced. Western companies’ fear of breaking the law made Bulgaria’s foreign trade with Western European countries almost impossible at the end of 1944 and in 1945. Against this background, the attempts of the first OF government to stimulate industrial processes in the country by resuming Bulgaria’s foreign trade relations with Western European countries are considered, despite the orientation towards the USSR and the sanction measures of the Western allies. Archival documents from the funds of the Ministry of Trade and Food, the Ministry of Foreign Trade and the Central Committee of the Bulgarian Communist Party, as well as scientific publications dealing with Bulgaria’s foreign trade relations at the end of 1944 and in 1945, were brought to the aid of the study.
Keywords: Bulgaria, foreign trade, Western trade embargo, economic contacts, World War ІІ, East-West Trade.
JEL: N44, N74
16. ATTEMPTS TO STIMULATE PRIVATE BUSINESS INITIATIVE IN BULGARIA IN THE 1980S
Author: Kostadin PAEV
Abstract: The apparent lagging behind of the socialist economy in the late 1970s forced the government to take steps towards expanding the possibilities of exercising private initiative in the various areas of the economy in the 1980s. All reformist attempts are confronted with the limited possibilities of the system. Experiments with mixed state-private forms of economic activity also do not achieve the expected result. The range of activities and persons admitted to private business is gradually expanding. This is mainly done through the issuance of new regulations. Key in this respect remains the issue of wage labor, which for ideological reasons is not allowed outside the family community. The study examines the legal regulation of private practice in trade, services, and retail production, excluding agriculture and the liberal professions. In the early 1980s, there was an intensification of the state’s policy of stimulating private economic activity in the three spheres, given the lack of sufficient satisfaction of citizens with consumer goods and services. The Communist Party, which defines the general directions of development of the Bulgarian economy, falls into a vicious circle between the needs of society, the desire to satisfy them and the limited capabilities of the political regime. In the 1980s, two periods emerged in the policy of the State in this respect: from 1980 to 1986 and from 1987 to 1989. In the first period, the following main trends emerge: expanding the circle of persons allowed to carry out private commercial activity; the range of activities carried out is expanded too; as the main participants in private business and small production, in addition to parents and children, it is allowed to hire close relatives up to the second degree. At the end of this period in 1986, about 20 % of the country’s population received additional income from private activities, but almost half of this income is from renting out premises, while persons engaged in trade, services, and retail manufacturing made up only 1% of the population. In the second period, a new step is made by regulating the performance of private work by citizens in five main areas: transport, pedagogical, administrative-legal and design services, and development of software products and software services. Again, however, the opportunities for hiring individuals are limited within the family circle. It was only with the issuance of Decree 56 on business activity at the beginning of 1989 that conditions for transition to a capitalist market economy were created.
Key words: private business activity in 1980s, legal regulations for stimulation the private business initiative, ideological restrictions, mixed state-private forms of business, wage labor.
JEL: N44, N64, N74
17. FOR THE EVER MORE COMPLETE SATISFACTION OF WORKERS’ NEEDS: THE STANDARD OF LIVING IN BULGARIA DURING THE COMMUNIST PERIOD
Author: Mathias MORRYS, Martin IVANOV
Abstract: We challenge the view that Centrally Planned Economies functioned well until the mid-1980s, delivering high economic growth and better living standards. As part of a broader research effort into living standards under state socialism, this paper focuses on nutritional evidence. Judged by calorie intake, we show that only in the 1970s did Bulgarian living standards surpass levels achieved already four decades earlier. Our findings are particularly discomforting for the rural population which was the big loser of collectivization and forced industrialization policies after 1946. Big Push industrialization reduced nutritional welfare in addition to coming at high human and societal cost.
Key words: standard of living, consumption, economic development
JEL: I31, I32, N34
18. CHARACTERISTICS AND FACTORS OF ECONOMIC GROWTH IN BULGARIA (1970–2008)
Author: Stela RALEVA
Abstract: The paper provides an analysis of the economic growth in Bulgaria over a forty-year period, which includes the last two decades of the command system and the time from the beginning of the transition to market economy to the 2009 crisis. It discusses the specificities in the chain growth rates of real GDP and real GDP per capita in the various stages of the period, measured by using data from different sources. The dynamics of the production and the income structure of GDP are characterized and the most important structural changes are highlighted. The main focus of the study is on the supply-side determinants of economic growth. To this end, the growth rate of real GDP per capita is decomposed into growth rates in employment and the impact on GDP growth of changes in employment, capital accumulation and total factor productivity is assessed. In the course of the study, the existence of three periods in the dynamics of GDP, distinguished by internal heterogeneity, is proved. Changes in the sectoral structure are generally in the direction of increasing the share of services and reducing the share of agriculture, with relatively smooth changes in the share of industry. The income structure of GDP during command system was relatively stable and dominated by labour income, while afterwards the share of the capital income prevailed. Changes in GDP per capita depend mainly on average labour productivity, while the contribution of labour was insignificant in the first period, it was relatively high positive or negative in the first decade of transition, and persistently positive after 2000. The relative importance of growth factors has varied over time, with capital leading in years of relatively high growth rates. The impact of total factor productivity is positive in most years and negative at the beginning of the transition and at the end of the period, combined with alternating negative and positive contributions from labour. Economic growth was intense in certain years during socialism and at the beginning of the third period, while during the rest of the time it was of extensive nature.
Key words: economic growth, GDP structures, growth accounting, growth decomposition, employment, capital, factor productivity
JEL: N14, N34, E2, O11
19. ECONOMIC POLICY IN THE YEARS OF ECONOMIC TRANSITION AND THE EUROPEAN UNION MEMBERSHIP IN BULGARIA
Author: Dimitar ZLATINOV, Stoyan SHALAMANOV
Abstract: The article examines the economic background that led to the introduction of the Currency Board Arrangements in Bulgaria since 1997 and the fiscal and monetary policies implemented before and after this. We focus on the transformation processes and challenges of the transition to a market economy, which largely predetermine some structural weaknesses of the Bulgarian economy to this day. We trace the institutional features of Currency Board Arrangements and the basic principles of its design, which requires coordination of fiscal and monetary policy measures in Bulgaria. We highlight the channels of quasi-monetary policy that the government possibly can follow through the changes of the government’s deposit in the Central bank. This policy feature imposes constraints on the fiscal policy in Bulgaria, which should not put the sustainability of the Currency Board Arrangements at risk. The article also highlights the changes in the national government policy framework resulting from the European Union membership and outlines its capacity to mitigate negative cyclical developments. The atypicality of macroeconomic policy under the Currency Board Arrangements in Bulgaria is highlighted, with a clear tendency to follow a counter-cyclical and stabilisation management strategy. Our analysis shows that the effects of macroeconomic policy depend much more on the overall economic environment in Bulgaria than on the traditional transmission channels of macroeconomic policy. Following the Currency Board Arrangements in Bulgaria, the Bulgarian National Bank has limited possibilities to directly influence the price stability, while on the fiscal policy side there are more channels to influence inflation, which reinforces the notion of the government’s ability to conduct quasi-monetary policy. The Central bank actions are much more related to risks stemming from the financial sector itself than they are reactive to changes in the economic environment. In such a situation, the effectiveness of macroeconomic policy can be sought if it facilitates the implementation of structural reforms that have the greatest potential to affect the overall economic environment.
Key words: Currency Board Arrangements, fiscal policy, monetary policy, economic transition, EU membership
JEL: E5, E6, N1, N4
20. CURRENCY REFORMS AND INFLATION IN COMMUNIST AND POST-COMMUNIST BULGARIA
Author: Ralitsa SIMEONOVA-GANEVA, Martin IVANOV, Kaloyan GANEV
Abstract: Here we consider currency reforms, or the compulsory currency exchanges by governments, which were quite common in the first half of the twentieth century. We analyse the effects on inflation of the three currency reforms implemented by the communist regime in Bulgaria after WWII, and of the one that took place during the transition. We provide new evidence on the implemented currency exchanges and compile a time series on the quantity of money in circulation in communist Bulgaria. The collected data and facts show that, contrary to the announced aim to tame inflation through the reduction of liquidity, the three reforms conducted in communist Bulgaria had almost no effect on both money in circulation and inflation. Instead, price stability was achieved through price controls. We emphasize the fact that the growth of money in circulation followed a strong positive trend and exceeded disproportionately the official inflation and output growth. All this generated enormous price pressure and led to the unprecedented inflation rates experienced after the regime collapsed and prices were liberalized. In the following years, high inflation was additionally nurture by the excessive growth rates of the money supply in the early stages of the transition. Our observations corroborate the fact that the introduction of the currency board arrangement in the summer of 1997 put an end to the high inflationary periods as restrictive monetary and fiscal policies were adopted. We put forward the idea that in 1999, the fourth currency reform played a role in curbing inflation expectations by reducing the scale of price variation. The combined findings of all four reforms confirm the claim that a new currency cannot serve as a tool for combatting inflation per se. It can only be ancillary to reforms establishing fiscal discipline and prudent monetary policies. A side but important finding from the study is that no revaluation of fixed assets was conducted in the 1952 reform, while all other values were considerably reduced. This means that the calculated depreciation was disproportionately higher than the other cost items, which led to significant overestimation of the reported output volumes in the subsequent years and the economic growth rates for 1952–53. Finally, based on the official price-conversion rules, we propose an algorithm for converting values across the different periods.
Key words: inflation, currency reform, money in circulation, communism, transition
JEL: E31, E51, P21, P24
21. THE IMPACT OF EXTERNAL SHOCKS ON THE BULGARIAN AND CROATIAN ECONOMIES: HISTORICAL AND CONTEMPORARY ASPECTS
Author: Veselina SHALAMANOVA, Sonia GEORGIEVA
Abstract: Bulgaria and Croatia are small open economies that are not affected by prices and other macroeconomic variables internationally, but their economic activity depends on external economic trends that have an impact on their local economies. The aim of this paper is to trace and analyse the impact of external shocks on the economies of the two countries under consideration historically through a retrospective economic-historical analysis, which will clarify chronologically how, from similar starting points and potential, the two countries have different degrees of convergence vis-à-vis European Union countries and are moving at different rates of economic growth and development. It traces the impact of exogenous shocks affecting political stability, structural reforms, inflation, fiscal policy, foreign trade relations and other macroeconomic aspects as a consequence of the behaviour of the two countries.
Key words: economic history, market economy, external shocks, energy crisis, Bulgaria, Croatia
JEL: N10, H12, F00, E60
22. CLASSICAL POLITICAL ECONOMY CONCEPTS OF VALUE AND RENT AGAINST MAINSTREAM ECONOMIC THEORY
Author: Rumen ANDREEV
Abstract: For a long time it was believed that the marginalist revolution rejected classical political economy and created modern economic science. In fact, various problems that had been studied by classical political economy ware completely neglected and unexplored by mainstream economic theory since the marginalist revolution. The purpose of the article is to present facts that classical political economy and mainstream theory after the marginalist revolution explore quite different problems in economic science. Two of the turning point concepts in economic theory are analyzed, that of value and land rent, which are decisive for the foundation of classical political economy. The concept of land rent as part of the distribution is almost absent from mainstream theory, and that of value is taken as an axiom. In Bulgaria, there are studies that present the fundamental differences in the two theories, but without examining the specific concepts of value and rent, which are key to the change in economic theory. The article shows why classical political economy remains relevant by better analyzing contemporary reality. Comparative and historical analysis was used for the needs of the research.
Key words: political economy, classical political economy, concepts of value, concepts of rent, mainstream economic theory
JEL: B0, B12, B13
23. FINANCIAL ADMINISTRATION IN LOWER MOESIA: AN ATTEMPT OF CLARIFYING THE GENESIS AND THE DEVELOPMENT
Author: Калин СТОЕВ
Abstract: The article discusses the role and function of the Moesian provincial official of the Emperor – the procurator. The sources about the Roman provincial history generally indicate that the procurators were equestrian officers charged with the care of the Emperor’s property. The epigraphic data from the province of Lower Moesia (Moesia inferior) do not conclusively show that there was a procurator here who was responsible specifically for the imperial domains. The investigation of the known monuments that mention procuratores leads to the conclusion that the procurator of the vectigalis Illyrici assumed in Lower Moesia the functions of supplying the Roman troops in that part of the Empire, the provinces of Lower Moesia, and some periods mainly the neighbouring lands, as Upper Moesia and Dacia. In Lower Moesia, where strategic territories belonging to the “defense” of the province were available, the transitional period of early Roman power in these lands led to the imposition there of a military administration, which was later merged with the Illyrian vectigalis. Thus, the time of the Severi, when the vectigal was subordinated to an equestrian procuratoral office, put the end of the short period of economic development in the province of Lower Moesia, understood as the enrichment of some northern Italian families from the border commercial location of the lower Danube lands. By the 3rd century AD this frontier arrangement went back to the early Roman development, which was entirely subordinated to the army and military affairs.
Key words: Lower Moesia, Moesia inferior, procurator, Danube limes, Latin Epigraphy
JEL: N33; N53; N93
24. ARMY AND ECONOMY. THE ROLE OF THE LEGION XI CLAUDIA IN THE ECONOMIC DEVELOPMENT OF DUROSTORUM (2ND – 3RD C. AD)
Author: Svetlana GANCHEVA
Abstract: This article examines the role of the Legion XI Claudia in the development of agriculture in Durostorum in the 2nd-3rd century. To determine its impact, the minimum grain requirements of the legion as well as the civilian population are calculated. On the basis of these data, and at a given yield kg/ha, an attempt is made to calculate the amount of arable land required, and the number of people engaged in feeding the military and civilian population. The proposed calculations show that about 1, 550 tons of grain were needed to supply the grain requirements of the fighting personnel of the XI Claudian Legion (5,240 men) alone for a year, and an additional 241 tons if the quantities for the legion’s servants (819 men) were added. Additional quantities of grain must also be provided for the civilian population of Durostorum – over 1,300 or 1,900 tons of grain. Based on these data and with a wheat yield of 385 kg/ha, between 8,000-9 600 ha of land were needed to feed the military and civilian population of Durostorum, and probably as much more set aside. These lands can be cultivated by 1 340-1 600 people.
Key words: army, legion XI Claudia, Durostorum, agriculture, grain supply
JEL: N53, P25, P28, Q15
25. CHURCH’S PROPERTY INFLUENCE ON THE DEVELOPMENT OF BISHOPS’ RANK
Author: Zlatomira GERDZHIKOVA
Abstract: The article aims to present the influence that the increasing church property had on the development of the rank of the bishop during the 4th and 5th centuries. The Mediolan Edict of Emperor Constantine started a process of the rapid rise of Christianity, including the development of the church hierarchy and structure. As a result of this rise, the rank of the bishop changed by developing its inner hierarchy – bishop, metropolitan bishops, archbishop. The main factor in this particularization of the rank of the bishop was the rapid increase of church property and financial resources. Using secular and Christian law collections as prime sources the publication will show some of the points of interaction between the growth of church property and the development of hierarchy in the rank of a bishop.
Key words: Church, property, bishops, Late Antiquity, Church hierarchy
JEL: N33; N43; N93
26. SPECIALIZED STATUS AND TAX PREFERENCES: A FACTOR FOR ECONOMIC GROWTH? FOLLOWING THE EXAMPLE OF GABROVO IN THE 16TH AND 18TH CENTURIES
Author: Krasimira MUTAFOVA
Abstract: The categories of population with specialized status and obligations to the central Ottoman authority have been the focus of dozens of studies and the subject of lively discussions since the time of J. Hamer and are still one of the current topics of Bulgarian and Balkan Ottoman studies. Although various aspects of their „medieval past” and continuity in the Ottoman period have been clarified to one degree or another, one of the controversial and still „open” questions remains the presence of a direct relationship between the specialized status of this population, the tax reductions regulated in its favor and opportunities for economic prosperity. The current paper is focused on the category of population with derbendci status, and Gabrovo, one of the „most famous old derbendci settlements” in the Bulgarian lands, is at the center of this case study type of research. The impressive economic flourishing of Gabrovo in the epoch of the Bulgarian revival, gives reasons to trace and argue a direct connection between its derbendci status and its development as a prosperous economic and tradecraft center during the centuries of the Ottoman rule, without this connection being mandatory for all derbendci settlements.
An opportunity to trace the development of Gabrovo as a derbendci center, as well as its overall economic characteristics from the last quarter of the 15th to the first half of the 18th century, gives the voluminous and still only partially published compact information included in several icmal, mufassal (detailed, nominal) defters from 1516–1517, 1541–1545, 1579, 1642–1646, 1750/1751, and nüfus defter-i ciziye from the end of the 17th century, selected for the purposes of the study.
The comparative analysis of the statistical summary data from the newly discovered Ottoman archival material, together with the already published ones, reveals the close relationship that existed between the derbendci status, the Ottoman fiscal and legal privileges that applied to the majority of Gabrovo’s inhabitants, and sustainable demographic indicators and a flourishing economic development. An indisputable factor for economic growth is the settlement’s strategic position in the system of passes of Stara Planina – one of the most important roads connecting southern and northern Bulgaria passes here. Like Etropole, Kotel, Troyan, etc., Gabrovo is a typical example of upward economic development and administrative change of an urban-type settlement with developed commercial and craft activities, which acquired the status of kasaba (city) by virtue of a Sultan’s ferman. A change fixed in an undated petition (arzuhal) drawn up after 1857, a century after the latest document of 1751 commented on in the study.
Key words: Gabrovo, Ottoman period, Mufassal defteris, derbencis, Tapu tahrir defteris, Nüfus defter-i ciziye, kasaba
JEL: N33, N93
27. TRADE AND THE PLACES OF TRADE IN RAZGRAD IN THE 19TH CENTURY
Author: Nevena NEDELCHEVA
Abstract: Razgrad is a settlement that grew and developed as an Ottoman city. In this sense, it is a suitable example for the study of demographic, religious, economic and cultural processes and interactions as a counterbalance to settlements with pre-Ottoman roots. The present study focuses on the economic development of the city with an emphasis on the 19th century. The focus of the research will be on the trade and commercial centers that are found in the city during the time period set. In this sense, we will try to answer the question to what extent trade is a marker of economic growth. We attempt to trace their species diversity, ownership, and neighborhood distribution. The examples given in the study regarding trade and the places of trade exchange are a sure indicator of its slow recovery and economic growth in the 19th century. Its economic growth is clearly visible. The available data allow us to talk about a process of gradual densification of the professional and craft profile of the city, covering all spheres of the city’s economy. The economic production profile of Razgrad derived in the research does not allow us to single out a narrow specialization of the population in any specific sector. Razgrad’s economy is structured in such a way that it aims to cover all economic niches and thus satisfy the comprehensive needs of the Deliorman resident.
Key words: Razgrad, trade, dükkan, Ottoman empire, Economic Growth
JEL: N33, N73
28. THE FACTORS OF ECONOMIC GROWTH OF THE MOUNTAIN SETTLEMENTS IN THE REGION OF STARA PLANINA IN 19TH CENTURY
Author: Gergana GEORGIEVA
Abstract: The research focuses on several important economic centers from the region of Stara Planina – Tryavna, Elena, Kotel and Gabrovo, which show intensive economic development at the end of the 18th and in the 19th centuries. Thus, those urban centers became engines of the economic development 3of the Bulgarian lands and initiators of the processes of cultural, religious and political emancipation among the Bulgarians in the 19th century. The most important factors for their economic growth appeared to be the commercial activities and crafts – they boost the process of capital accumulation. The population increase in the 18th and 19th centuries was another factor for economic growth. The reforms initiated by Sultan Mahmud II at the beginning of the 19th century also had a positive effect on the economic development of the pre-Balkan settlements and coincided with the period of capital accumulation among Bulgarians.
Key words: mountain economy, demography, trade, crafts, reforms in the Ottoman Empire, Sultan Mahmud II
JEL: N33; N53; N73; N93
29. THE REVIVAL ENTREPRENEUR HRISTO ARNAUDOV
Author: Svetla ATANASOVA
Abstract: The study attempts to construct the personal and professional biography of an entrepreneur from Gabrovo, Hristo Arnaudov. His dynamic and eventful life-story so far remained unsearched and overshadowed by the figure of his eminent father Stancho Arnaudov. For the purposes of this research I have analyzed documents from the museums in Gabrovo and Tarnovo. I have also selected evidence from incunabular books and archive of the Bulgarian Orthodox church. Various scientific publications which are corresponding to the theme are also cited. Hristo Arnaudov’s activity is stretching out in many different directions and has many faces. He was managing the family business in Tsarigrad until 1864; he was one of the first establishers of the joint-stock company „Providenie“ in the Turkish capital; a participant in the Great Exhibition of the Works of Industries of All Nations in London; a member of the supervising board of the construction works of the St Stefan church and a warden of the Bulgarian orthodox community, as well as voluntary activity on the publishing of textbooks and a charitable activity in different school organisations. His most famous activity was the translation and publishing of the Laws of the Ottoman Empire in four volumes. After the Liberation Hristo Arnaudov returns to Bulgaria with his family and works in the Sevlievo Court. He became related to the Momchevs – a well-known family from Tarnovo. He passes away in the 1917. The dynamics of the economic and social events from the 50’s until 80’s of the 19 century are illustrating his hesitations and the well-estimated risk taking, as well as his progress based on experience and knowledge. He was also a participant in the revolutionary initiative of the Tsarigrad’s Bulgarians and eventually his activity became part of the concept of economical growth.
Key words: Hristo Arnaudov, revival entrepreneur, trader, warden, charity-giver, publisher
JEL: N01, N83
30. BUDGET AND BUDGETARY POLICY OF THE MUNICIPALITY OF SVISHTOV DURING THE ADMINISTRATION OF MAYOR HRISTO THEODOROV (1887–1893)
Author: Margarita MARINOVA
Abstract: The article analyzes the budget policy of the municipality of Svishtov during the administration of the mayor Hristo Teodorov (1887-1893). The new Municipalities Act of 1886 writes down the municipal income and expenditure precisely, and so it is made easier to make budgets. It trackes down what principles the revenues are formed of and what difficulties there are in collecting them. It is concluded that the highest revenues are collected from the measurement and hauling of goods and that the most serious resource is allocated for the construction of municipal administration and infrastructure projects – mainly for the repair and construction of new streets to connect the city with the port in order to ensure trade. The violations committed by the mayor in the management of expenses are also revealed. In conclusion, it is stated that through various projects and activities, Teodorov managed to change the appearance of the city and to ensure its economic and social stability. Along with that, he also leaves a considerable municipal debt. It is the result of the impossible issue to repay both the loans taken out and the development program deployed with the available revenues.
Keywords: Svishtov, municipality, budget, income, expenses, loans, municipal debt, violations of the law
JEL: H72, N93
31. THE AGRICULTURAL FUND ACTIVITIES IN SVISHTOV BETWEEN 1878 AND 1903 – AN OVERVIEW
Author: Emilia VACHEVA
Abstract: The historical development of the Agricultural Fund in Svishtov during the period spanning from the Liberation to the establishment of the Bulgarian Agricultural Bank has yet to be explored as an independent topic. It has primarily been a part of broader research addressing the city’s banking and credit history. This article initiates a comprehensive study of this significant institution. It outlines the principal functions and services provided by the fund, highlights both its strengths and weaknesses in development, and assesses its place and role in the local economic landscape.
An analysis of the available data reveals that during this period, the Svishtov Agricultural Fund held a pivotal position in the economic life of the region. It played a vital role in introducing modern agricultural techniques and innovative crop production methods, as well as animal selection practices. These advancements led to increased productivity and improved incomes for the local population. With the fund’s support, the region flourished as a key agricultural center.
Key words: Svishtov Agricultural Fund, agricultural credit, credit operations, capital, private creditors
32. GOODWILL AS A SYMBOL OF GROWTH IN THE WORK OF PROFESSOR DIMITAR DOBREV FROM THE FIRST HALF OF THE 20TH CENTURY
Author: Atanas ATANASOV
Abstract: Prof. Dimitar Dobrev was born in the city of Kotel in 1888. He received his higher education in the city of Leipzig (Germany), and later in 1911 defended his doctoral dissertation in economics at the University of Erlangen (Germany). As one of the most famous scientists in the field of accounting at the beginning of the 20th century, Prof. Dimitar Dobrev was one of the first authors who pay attention to the goodwill in his scientific works. We believe that the development of the goodwill as an accounting category should be considered in parallel with the development of Bulgarian accounting science in a historical aspect. The main purpose of this article is to analyze the development of Prof. Dobrev’s views on goodwill as a specific accounting object, and on this basis to draw a parallel with the modern “drivers” of the value and growth factors in the enterprises.
The research methodology is based on the publications of Prof. Dimitar Dobrev in the period 1920-1950 as the main source of information regarding his views on goodwill. The article also compares the views of prominent scientists from Western Europe who worked during this period.
We defend the thesis that the application of the scientific approach to goodwill by Prof. Dobrev leads to a theoretical substantiation of the evaluation and presentation of goodwill in the balance sheet. Based on the analysis of Prof. Dobrev’s publications, three periods have been identified in the development of the concept of goodwill. The goodwill is presented as an intangible productive and profitable factor that generates income and distinguishes an existing business from a start-up. In this aspect, a parallel is drawn with the modern understanding of business value and growth factors in the enterprises, based on business models that are built on the basis of intangible factors such as goodwill.
Key words: goodwill accounting, goodwill valuation, Dimitar Dobrev, growth factor, balance sheet
JEL: M41, M48, N10, N44