1. Connecting Ecologies: Egypt and the Balkans during the Climate Crisis in the Mid-1780’s
Author: Hristo HRISTOZOV
Abstract: This article examines a brief episode from the Little Ice Age and its impact over the Ottoman empire during mid-1780’s. It aims to explore the transregional connections in the Eastern Mediterranean, driven by the adverse socio-economic consequences of climate stress after the eruption of Iceland’s Laki volcano in 1783 –1784. The study tends to set up a series of causations illustrating how a certain global climatic event has considerable local socio-economic influences that test the Ottoman provisioning system and create a possibility for central administration to connect remote ecological zones in order to meet the necessities of food supply a cross the Mediterranean. Current scientific research utilizing archives of nature, such as dendrochronology, ice core analysis, sediment studies, and pollen analysis, provides insights into the past climate. This data corresponds with a range of written records meticulously maintained in archives of societies, with the most significant for this study being the documents preserved in the Ottoman archives. The written sources examined in this paper emphasize on the logistical coordination between two remote ecological zones: the Balkans and Egypt, situating this coordination within the larger context of political, economic, and social instability of the Ottoman Empire in a period of climatic stress. The Ottoman provisioning system of grain supplies connected food shortages in Egypt and the Hejaz to different agricultural areas in the Balkans and the Black Sea basin in order to mitigate the crisis in the Nile valley. Although this aid had a temporary effect, it nevertheless demonstrated the extent of the state’s administration ability to balance the natural resources across the vast territory of the empire.
Key words: Ottoman empire, Balkans, Egypt, Hijaz, Laki, Iceland, climate crisis, grain provisioning, natural resources management.
JEL: O13, P48, Q15, Q54
DOI: 10.61836/MUFJ7183
2. Real Prices, Real Incomes, and Purchasing Power during Communism, Transition and EU Integration: Evidence from Bulgaria
Author: Ralitsa SIMEONOVA-GANEVA, Kaloyan GANEV, Martin IVANOV
Abstract: In this study, we consider real prices, real wages, real pensions, purchasing power, and consumption in Bulgaria during communism, transition, and EU integration. We focus on a range of essential goods representative of Bulgarian household consumption. We compile the corresponding data series based on official publications by the Bulgarian statistical authorities. The real values are computed using a unified index of consumer prices for all periods under consideration. We find that the significant increase in nominal incomes during communism, matched by administrative price controls, led to artificially high real wages and purchasing power. As this was achieved in an economy characterised by continuous shortages and accumulating inflationary pressures, we claim that the severe economic downturn and high inflation in the 1990s were inevitable. For transition, we point to the process of restoration of economic logic, the re-equilibration of markets, and the ensuing drop in real incomes as the main causes of purchasing power losses. We argue that this deterioration of real incomes manifests the price paid by society for decades of economic mismanagement. Concerning EU integration, we explain the rapidly increasing real incomes, purchasing power, and consumption with the development of the Bulgarian economy in those years, following the well-established principles of sound economic management. Notably, we demonstrate that at the end of the reviewed period, given the presence of real prices that were very close to their historical lows, real incomes and purchasing power surpassed communist-era peaks. This study contributes to the literature by providing new long-term data on important economic indicators for Bulgaria. This paves the way for further research involving comparisons of the past and present economies.
Key words: real prices, real incomes, purchasing power, communism, transition.
JEL: E01, E21, E3, J3, P2
DOI: 10.61836/WGZQ5363
3. Christian Influence on the Frankincense Trade in the 4th and 5th Centuries
Author: Zlatomira GERDZHIKOVA
Abstract: The emergence of a new institution with religious and political influence inevitably leads to the imposition of new and the abolition of already established social practices. Some economic activities are affected during such periods – if they do not disappear, they suffer significant losses for a certain period. Such is the case with the incense trade. By the middle of the 4th century, incense was used daily in religious rituals in temples, private homes, and all public places where it was customary to perform them. The establishment of Christianity as the only state-recognized religion on the territory of the Roman Empire led to a sharp decline in the consumption of incense, first in temples and public spaces, and gradually in rituals in private homes. In this sense, the religious practices established by the Church were a barrier to development, which led to the decline of the frankincense trade and some trade centers such as Petra.
Key words: frankincense, trade, Christianity, Late Antiquity, Roman Empire.
JEL: N3, N4, N7
DOI: 10.61836/YMNP2673
4. Observations on the Bulgarian Fiscal Politics and International Commerce – a Survey on the Transfer of the Marketplace of Bulgarian Merchants from Constantinople to Thessaloniki in 893–894
Author: Mikhail RAEV
Abstract: The Byzantine-Bulgarian War of 894–896 was sometimes called the first economic war in medieval Europe. The expulsion of Bulgarian merchants from the Constantinopolitan market and their transfer to the market of Thessaloniki served as a cause de la guerre for Bulgarian ruler Symeon. A survey of historiography concludes that most scholars resorted to a restatement of the historical facts conveyed by Byzantine written sources. While scholars attempted to clarify the status of Bulgarian merchants in the Byzantine capital, the paper raises questions concerning the commodities Bulgarians supplied to the Byzantine market and what they demanded in exchange. The paper explores how Bulgarian ruler Simeon was affected by the transfer of Bulgarian merchants away from the Byzantine capital by applying methods of enquiry such as textual analysis and comparison of historical data. The military response of the Bulgarian ruler allows various hypotheses. The paper proposes that Bulgarian merchants most likely exchanged goods for multiple types of Byzantine and non-Byzantine textiles, not on the list of forbidden articles to export. The Book of Eparch informs us that Byzantine-Bulgarian commerce was in kind via barter exchange. Based on the examination of the commercial terms stipulated in the tenth-century Byzantine-Rus treaties, the paper considers the issue of Symeon’s involvement in Byzantine-Bulgarian commercial affairs in a similar fashion to the Rus princes who sent their envoys and merchants to the Byzantine Empire to sell the surpluses of collected taxes in kind. The paper addresses the issue of fiscal policy and taxation practise in the ninth-century Bulgaria.
Key words: medieval economy, medieval commerce, Byzantine-Bulgarian war of 894-896.
JEL: N13, N43
DOI: 10.61836/BXCC5248
5. Transitional Forms of Economic Life in the 18th Century in the Rumeli Provinces of the Ottoman Empire: Barriers and Perspectives
Author: Krasimira MUTAFOVA
Abstract: The reforms carried out in the military and fiscal system of the Ottoman Empire at the end of the 17th and 18th centuries, had a significant meaning for the changes in economic life and the establishment of transitional forms in the development of agriculture and the urban economy. All of them – mukâta’as, malikânes, waqfs, çiftliks –are known from the previous period as well, but acquired different dimensions and directions of development in the conditions of the 18th century. The research is focused on the widespread penetration of the iltizam system in various sectors of the economy in the 18th century, including in the structures of the Orthodox Church. On the example of published and unpublished Ottoman documents – mainly mufassil (detailed) defteris, annual income-expenditure statements, the so called suret, suret-i ruznamçe hakani, arzuhals, etc. – the study attempts to trace the role of the mukâta’as and the malikane system in the agrarian sector and the urban economy in the Rumeli provinces of the Ottoman Empire, respectively the degree of state intervention, the imposed barriers and the opportunities for economic development in perspective.
Key words: Ottoman empire, Rumeli provinces, transitional forms of economic life, iltizâm system, mukâta’a, mâlikâne, Ottoman documents, surets, mufassal defteris, arz, arzuhal.
JEL: N43, N93
DOI: 10.61836/JTCR4374
6. Barriers to the Economic Development of the Eastern Mediterranean According to the Reports of the French Consul Louis Félix-Auguste Beaujour
Author: Simeon SIMEONOV
Abstract: The article examines the reconstruction of French trade in the Ottoman Empire following the overthrow of Napoleon Bonaparte and the Congress of Vienna in 1815, focusing on the consular mission of Louis Félix-Auguste Beaujour. Tasked with reviving French interests in the Levant, Beaujour faced challenges and barriers to French commercial expansion such as competition from British and Austrian textiles, inconsistent French trade policies, and Greek merchants allegedly exploiting Ottoman import duties. The article highlights Beaujour’s dirigiste approach, advocating state regulation and tariffs to protect French goods, particularly textiles. His reports highlighted the need for quality control and aligning French commerce with state interests. Despite difficulties, he believed in the potential for restoring France’s commercial presence in the Eastern Mediterranean. The article also explores Beaujour’s tour of the Eastern Mediterranean and embeds his views within a broader French consular system amidst the sweeping transformations of the Bourbon Restoration. Ultimately, Beaujour prioritized French interests over the Ottoman Empire’s development, in a representative critique of the self-imposed as well as foreign barriers to French commercial expansion in the Levant.
Key words: Louis Félix-Auguste Beaujour, consuls, France, Ottoman Empire, Bourbon Restoration.
JEL: N43, N45, N95
DOI: 10.61836/PRWX5074
7. Barriers to the Textile Proto-industry Development in Bulgarian lands in the Eighteenth and Nineteenth Centuries
Author: Gergana GEORGIEVA, Nikolay TODOROV
Abstract: Textile production in the Bulgarian lands was one of the main branches of the Ottoman economy at the time of its inclusion in world trade. According to some researchers, after the 18th century, the Ottoman territories played the role of a periphery that provided the raw materials for the rapid industrial development of European countries. In addition, some parts of the Ottoman Empire were incorporated into the world economic system. Although the historiography focuses mainly on woolen production, silk production has its significant place in the development of the economy and market. The thesis of this research is that the textile production in the Bulgarian lands in the 18th and 19th centuries can be considered as a proto-industry that meets a number of criteria in Mendels’ definition. According to F. Mendels, proto-industrialization is the first, preparatory phase of industrialization. It represents a rapid growth of traditionally organized, but market-oriented industries. This economic development was accompanied by population growth and lead to the most important changes, necessary for the emergence of industry: regional specialization and commercialization of agriculture, accumulation of capitals, development of entrepreneurship, capture of distant markets, creation of manpower for industry.
Key words: proto-industry, textile manufacture, silk manufacture, Bulgarian lands, 18th – 19th centuries.
JEL: B00, N33, N53, N63, N73, N93
DOI: 10.61836/SXVQ4658
8. Good Opportunities and Barriers to the Grain Trade in the Ports of the Western Black Sea Coast in the 1840s, Presented in the Reports of the European Consuls
Author: Ivan ROUSSEV
Abstract: The article presents the good opportunities and the barriers (problems) for the grain trade in the ports of the Western Black Sea coast in the 1840s. The main historical sources of the study are the reports of the European consuls in the biggest of these cities at that time – Varna. Today, these documents are kept in the Diplomatic Archives of France in Paris and in Nantes (Archives diplomatiques du Ministère des Affaires étrangères de la République française à Courneuve, Centre des Archives diplomatiques à Nantes), and only a small part has been used by scholars. The 1840s was an interesting time, as this decade saw the beginning of the great increase in grain exports from the Balkans (then part of the Ottoman Empire) to the markets of Western Europe. Consular reports describe this process in detail. They also present the problems that accompanied it: the poor treatment and non-acceptance of European consuls and merchants in the Ottoman Empire; the return to monopolies prohibiting grain exports, even though these monopolies were officially abolished in the Empire as early as the 1830s.; competition and mistreatment by merchants from the Greek islands, who had settled on the Western Black Sea coast at an earlier date; the different units of measurement and their incorrect use, which disadvantaged both peasant producers and European merchants; the high taxes levied on peasants in the Ottoman Empire; the non-fulfilment of sales contracts by peasants; drought and poor harvests in some years. The article enriches the theme of trade between the Ottoman Empire and Western Europe in the 19th century with new data and analysis.
Key words: Ottoman Empire, Western Europe, grain trade, monopolies, Western Black Sea cities and ports, Diplomatic Archives of France.
JEL: B0, N1, N13, N63, N94
DOI: 10.61836/ESAN6492
9. Charitable Foundations for Lending. Cash Waqfs in Ottoman Bulgaria – Distribution and Limitations
Author: Hristiyan ATANASOV
Abstract: This article aims to survey Ottoman charitable foundations operating in the Bulgarian lands during the 18th and 19th centuries, with a particular focus on the so-called cash waqfs, which functioned as credit institutions. The research is based on near 100 waqfiyyas (waqfname) and other archival materials. The data have been statistically presented and analyzed in four tables that outline the general profile of these waqfs – detailing the origins of their assets, their founders, and their methods of operation. Waqf institutions are grouped and analyzed based on their monetary assets, interest rates, and the profits they managed (or failed) to generate. The study seeks to answer the question: why didn’t these monetary foundations evolve into modern banking institutions? Is the Islamic concept of “perpetuity” responsible for this limitation? Examples from various cities in Ottoman Bulgaria are provided, initiating the mapping of these institutions.
Key words: Ottoman Bulgaria, Cash Waqfs, Interest Rate.
JEL: N13, N24, N33
DOI: 10.61836/ICKO8237
10. Problems of the Development of Urbanization in the Bulgarian Lands under Ottoman Rule during the Nineteenth Century (until 1878)
Author: Ventsislav MUCHINOV
Abstract: The article examines the main problems of the development of urbanization in the Bulgarian lands in the 19th century – of a political and administrative, economic, sanitary-hygienic, epidemic and urban planning nature. The efforts of the Ottoman authorities and the local population to deal with the problems, which hinder the normal functioning of socio-economic life in the Balkan provinces of the Ottoman Empire, are analyzed. As a result of these efforts, the living conditions in the cities in the Bulgarian lands have improved, their economic and demographic development has been stimulated and the process of urbanization in the region has been activated on the eve of the Liberation of Bulgaria.
Key words: Ottoman Empire, Bulgarian lands, economic and demographic development, urbanization, modernization.
JEL: N33, N63, N73, N93
DOI: 10.61836/MCSY4194
11. Bulgarian Guild Organizations in the Revival Period: Patron Saint and Guild Festival
Author: Petya NEDELEVA
Abstract: The Bulgarian guild organizations during the Renaissance were the most comprehensive economic and social organization, professional and social support of the population. The guilds represented self-governing craft and trade associations of a closed nature, uniting people with the same livelihood, with a common leader, obeying common rules, the guild statute and a specific structure. The members of the guild organization, as residents of a given settlement, complied with local traditions, honored and celebrated holidays (Easter, Christmas, etc.), and also celebrated the holiday of their guild and the patron saint of the craft. The guild holiday belongs to the so-called “heavy” holidays, i.e. holidays celebrated with particular solemnity by the members of the community. During the guild festival, which often lasted several days, there were church services for the living and deceased members of the guild, a general meeting of the guild was held, at which the report of the governing bodies was accepted and those who would rule in the future were elected. There was also a real celebration with a common meal and merriment.
Key words: guild organization, craft, master, journeyman, apprentice, trade, guild holiday, saint, Revival, guild statutes.
JEL: N3, N4
DOI: 10.61836/PCNM2643
12. Opportunities and Obstacles for Economic Development in the Constitutional Projects and the Basic Law of the Principality of Bulgaria from 1879
Author: Petko St. PETKOV
Abstract: The article analyzes the texts in the constitution of the Principality of Bulgaria from 1879, related to the economy and economic development. An answer is also sought to the question of whether there is continuity between the ideas and programs for future state organization and governance in the period up to the creation of the new Bulgarian state, i.e. until the Liberation of Bulgaria in 1879, and the projects discussed in the Constituent Assembly (Russian and Bulgarian). As well as what is the influence and borrowings from other constitutions (Greek, Romanian, Serbian) in the texts of the Bulgarian Basic Law from 1879, related to the economy and economic development.
Keywords: economic development, constitutional projects, Tarnovo constitution, Principality of Bulgaria, Liberation of Bulgaria in 1879
JEL: N01
DOI: 10.61836/SEPD4729
13. The State Council and Economic Development of the Principality of Bulgaria (1882–1883)
Author: Kristiyan MLADENOVSKI
Abstract: The role of the State Council for the economic development of the Principality of Bulgaria is a topic that still remains unexplored. With this article, the author aims to show the contribution of the Council to overcoming the economic barriers facing the country by analyzing and presenting conclusions about the adopted legislative acts and the discussed bills.
The State Council adopts the “Law on Public Tenders”, “Public Administrative Regulations for the conclusion of contracts and the obligations imposed on the entrepreneur” and the “Law on Collections and Contributions”. The terms “entrepreneur” and “government procurement” are defined, which allows a number of infrastructure projects to be built. Synchronization between central and local government is improving. Mandatory documentation for tax payments allows better monitoring of tax collection. The bill for the promotion of industry presents the problems facing the development of the Bulgarian economy, such as higher interest rates in the Principality and high customs tariffs. It proposes a solution to these problems, such as the creation of industrial banks, assistance to small producers, giving priority to the production of paper, textiles, etc. Although the law was not adopted, the ideas later became the basis of protectionism in Bulgaria.
The State Council is debating numerous laws that have been adopted by the Third Ordinary National Assembly, such as the “Law on Auctions, the Law on Vineyards”, “Land Tax and Alcoholic Beverages”, the “Law on the Processing and Extracting Opium Poppy” etc. In the end, the number of economic initiatives undertaken by the state councilors lead to the improvement of economic conditions and introduce good European practices into the Bulgarian legislative framework. This is happening in the conditions of a complex political situation, but it also shows that to overcome the economic barriers, synchronous work between all institutions is needed.
Key words: State Council, Law, economic barriers, National Assembly, Bulgarian economy.
JEL: N4
DOI: 10.61836/STAA4804
14. Assessment of the Role of the Regie on the Development of the Tobacco Sector in the Ottoman Empire from the late 19th to the early 20th century
Author: Valentin KITANOV
Abstract: The condition of the tobacco sector in the European territories of the Ottoman Empire at the end of the 19th and the beginning of the 20th century was determined by the functioning of the Tobacco Regie – a foreign consortium established in 1883 following an agreement with the Ottoman Public Debt Administration and the Ottoman state. Through this concession, foreign capital gained complete control for 30 years over the purchase, processing, and sale of tobacco produced in the state, with the exception of tobacco for export. Existing tobacco factories were closed, and new ones were opened, entirely under the control of the Regie. The Ottoman state renounced the collection of taxes on tobacco, except for the tithe, and agreed not to issue licenses for tobacco-related activities to other individuals or companies. These changes were not universally accepted, and according to contemporary assessments, the introduction of the Tobacco Regie in the Ottoman Empire had a negative impact on the quantitative and qualitative characteristics of tobacco production in certain regions. It led to an increase in tobacco smuggling and affected the interests of small tobacco producers, particularly in Macedonia and Thrace.
Keywords: Tobacco, Ottoman Empire, Tobacco Regie, Tobacco Production, Tobacco Trade, Tobacco Smuggling.
JEL: N83, N93
DOI: 10.61836/WFUG8605
15. Barriers to Commercial Entrepreneurship in the Southwestern Bulgarian Lands during the 19th Century
Author: Ivaylo NAYDENOV
Abstract: The aim of the current text is to shed light on the obstacles to the development of commercial entrepreneurship in the southwestern Bulgarian lands during the 19th century.
In order to achieve this goal, a comparison is made between the conditions for the development of commercial entrepreneurship in Northern and Southern Bulgarian lands with those in today’s southwestern Bulgaria (Razlog, Bansko, etc.) and in the Republic of North Macedonia (Veles).
Probably, a complex of factors hampered entrepreneurship in the field of commerce and especially long-distance trade in the 19th century.
For example, the military actions that Napoleon Bonaparte led with Austria seriously disrupted the trade contacts between the merchants from the Balkans (incl. Bansko and Razlog) with Central Europe. An important factor was the economic crisis in Vienna which took place in 1810–1811. It severely affected entrepreneurs from the Balkan Peninsula. On the other hand, the economic changes after the signing of the Adrianople Peace Treaty (1829) and especially the expansion of the Austrian influence along the Middle and Lower Danube, led to economic revival in the northern Bulgarian settlements (such as Vidin, Ruse, Svishtov, Tarnovo, etc.) and contributed to the decline of the activities of the entrepreneurs from Razlog, Bansko, etc. Moreover, Austrian economic influence contributed to the flourishing trade contacts on the both banks of the Danube. This was the reason for the decline of the “old” terrestrial trade and the flourishing maritime and Danubian commerce. The shift of commercial traffic to the south – towards Thessaloniki, as well as the spread of railway transport will also have contributed to the economic decline of some settlements. The mountainous terrain and isolation, combined with the high prices for transporting the traded goods, probably also prove to be a barrier to active entrepreneurial activity.
Key words: Bulgarian National Revival period, Southwestern Bulgaria, commercial entrepreneurship, obstacles.
JEL: N73; N83; N93
DOI: 10.61836/RBLK3684
16. Ottoman “Feudalism” and Obstacles to the Development of Bulgarian Agriculture in the 19th Century
Author: Petar DOBREV
Abstract: The malign influence of the Ottoman “feudal system” on the economic development of the Balkan region is a persistent theme in Bulgarian historiography. Like any empire that established its structures in the Middle Ages, the Ottoman state did not give much economic freedom to the rural population in its development, although there are serious historical disputes as to whether the existence of timars can be equated with European feudalism. Without entering into this debate, my paper examines developments in the late Ottoman Empire, most notably after the Land Law of 1858. While formally preserving the supreme ownership of land in the hands of the Sultan, the law in practice legitimized private property, which in turn legitimized a long-standing practice. The population of the Bulgarian lands began to accumulate land en masse, and the number of chiftliks held by Christians increased. Some of these chiftliks evolved into modern capitalist estates, but in the mass case the changes in agriculture were slow and geographically isolated. But to what extent can the reasons for this be traced back to alleged Ottoman “feudalism”? To what extent was the role of the state a hindrance, or were there other global factors that impeded the transition to capitalism in agriculture? Accordingly, was it the Ottoman legacy that hindered agrarian capitalism in post-1878 Bulgaria, where modern chiftliks remained an isolated phenomenon?
Key words: çiftliks, Ottoman Empire, Bulgaria, Dobrudja, historiography, Agrarian question, feudalism, timars.
JEL: N13, N23, N73, N93
DOI: 10.61836/BKYH2541
17. The Agricultural Sector in Bulgaria and Organizational Reforms in the Ministry of Agriculture in the 1930s – Guidelines and Functional Effects
Author: Rositsa ZLATINSKA, Sonia GEORGIEVA
Abstract: The article presents and analyzes the role of the Ministry of Agriculture in solving the existing problems in the development of the agricultural sector in Bulgaria in the interwar period. 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.
Since its establishment in 1911 and during the interwar period, the Ministry of agriculture and state property has proved to be a contributing factor in the administrative and management system of the country. Over the decades, the Ministry of Agriculture has gone through a good 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.
Key words: agriculture, Ministry of agriculture and state property, agricultural policy, economic history of Bulgaria, Interwar period, Bulgaria in the 1930s.
JEL: N24, N 44, N54
DOI: 10.61836/HCII3464
18. Not Enough Poor: Agricultural and Industrial Development of Bulgaria, 1878–1939
Author: Dimitar SABEV
Abstract: The prevailing perspective on the Bulgarian economy from 1878 to 1939 characterizes it as extremely backward. However, growing evidence suggests that this pessimistic assessment must be reconsidered. In 1910, Bulgaria boasted a slightly higher per capita gross domestic product than most geographically and historically similar nations. This advantage continued to expand until 1939, indicating a potential shift toward a more modern economic structure. Importantly, national income was distributed relatively equitably. The majority of Bulgarians owned sufficient arable land to sustain themselves, and this prevented them from being forced to sell cheaply their labour. This hindered industrial growth but also prevented extreme exploitation. The widespread ownership of land in Bulgaria had its roots in the Tansimat, intensified along with the emigration of Turks after 1878, and solidified by the 1920/21 land laws. As a result, three-fourths of the Bulgarian population became landowners, with about 82% of peasants owning less than 10 hectares of land. While this scale of land ownership did not guarantee high incomes, it helped prevent extreme poverty during a challenging period for the national and global economy. However, both Marxists and proponents of capitalist growth heavily criticized Bulgaria’s small-scale land ownership. Marxists viewed non-starving villages as an obstacle to the emergence of the proletariat that would spark a revolution. Advocates of capitalist growth lamented the higher labour costs and lower labour market recruitment. This paper contends that the Bulgarian village economy was a democratic economic order that emerged spontaneously, relied on the personal agency of the landowners, and effectively reduced extreme poverty, although not preventing scarcity. Until the beginning of World War II, the Bulgarian village economy followed a middle path of development that achieved a three-fold increase in literacy among village women in just one generation – without spectacularly contributing to the overall GDP figures or sparking a proletarian revolution.
Key words: modern economic history of Bulgaria, Bulgarian agriculture, land ownership, backwardness, self-sustaining agriculture, early coal mining, demographic pressure, middle path of development.
JEL: N53, N54, O13, O52
DOI: 10.61836/LHHA1435
19. Industrial Cartels and Antimonopoly Legislation in Bulgaria in the 1930s
Author: Kostadin PAEV
Abstract: The policy of economic protectionism that emerged from the end of the 19th and the beginning of the 20th century, carried out by a number of Bulgarian governments, initially led to a rise in the Bulgarian industry, but later as a result of this, monopoly structures arose, which were a barrier to its further development. To overcome this phenomenon at the beginning of the 30s of the 20th century, the adoption of antimonopoly legislation in the country was necessary. By the late 1920s and early 1930s, about a dozen cartels were available in the sugar and brewing industries, glucose factories, carbon dioxide factories, vegetable oil refining, wire and nail factories, etc. In order to overcome the negative consequences of these monopoly structures, an anti-monopoly bill was submitted to the XXIII National Assembly Its discussion began in September 1931. During the parliamentary debates, different positions and opinions were expressed on this issue. The law was adopted in December of the same year. It introduces restrictions on the activities of monopolistic organizations and establishes an order for price control of the goods produced by them.
Key words: economic protectionisms, industrial monopolies, cartels, antimonopoly legislation, parliamentary debates.
JEL: N44, N64, N74
DOI: 10.61836/CVZP2215
20. Inheritance Rights and Economic Results in Historical Plan
Author: Stoyan SHALAMANOV
Abstract: It has been shown in economic theory that the emergence of new market industries leads to accelerated economic growth. Economic growth in turn induces an increase in income inequality. Income inequality in the long run produces a greater degree of wealth inequality. Such processes have been observed in modern market economies with particular intensity since the end of the twentieth century. High wealth inequality produces various forms of inefficiency. This calls for new approaches to reducing wealth inequality that do not distort the efficiency of the free market. Inheritance rights are a type of property rights. Their consideration is part of property rights theory and institutional economic theory. They have the potential to offer effective solutions to problems. This paper examines the development of inheritance rights in Bulgaria over the years and the political and socio-economic changes associated with them. In the periods under review, no significant differences in economic terms can be discerned with respect to the rights themselves and the related laws of succession. The first period (1978-1944) was characterised by attempts by the State to shake off the culture and traditions (customary law) that were strongly rooted in the population with regard to the transmission of inheritance, in order to create a more modern and adequate legal basis for the new economic and social realities. This has been difficult to achieve and several legislative changes in the Succession Act of 1896 and 1906 retreated from these aspirations. During the years of the two Succession Acts of 1890 and 1949, hardly any differences were found with regard to the acceptance of property by inventory and liability to the heir‘s creditors. The differences as to the disposable part of the estate are small – in the old 1890 Act it was possible to reach 2/3 disposable part, in the new one up to 1/2., indicating that the old one gave a little more freedom to heirs in certain circumstances. The significant differences for economics, affecting inheritance rights of property, come mainly from other laws regulating property and taxes on property and its transactions. Through these laws, in the period 1944-1989, the rights to transmit inheritance were severely restricted, especially if larger inheritances were involved. This was achieved through the restrictions on personal and family immovable property set out in the 1973 Citizens‘ Property Act and the introduction of high tax rates on larger inheritances (Local Taxes and Fees Act, 1951). The changes since 1989 have not led to any significant differences in inheritance rights per se, but rather in improving both the economic and legal possibilities to transfer large inheritances without hindrance.
Key words: History of inheritance law, Institutional economic theory, Property rights theory.
JEL: N4, K11, K15
DOI: 10.61836/CURR8194
21. Prostitution in Bulgaria during the 19th, 20th and 21st Centuries – from Economic Activity to Social Parasitism
Author: Georgi PETRUNOV
Abstract: The text focuses on the way in which the Bulgarian state behaves toward prostitution in a historical perspective. Emphasis is placed on the economic facets associated with prostitution and the influence of political factors in classifying an activity as economic or not. Prostitution was not unknown in the Bulgarian territories before the Liberation. However, the social and economic transformations that took place in the country after 1878 led to its expansion. Due to the significant economic interest associated with brothels, the concept of regulation of prostitution was adopted. At the dawn of the 20th century, it was recognized as a profession, with entrepreneurs eager to invest in building facilities where this economic activity could take place. In several major cities, authorities are developing regulations to manage prostitution, detailing the conditions for conducting such work and the fees that will be collected by the municipality. Prostitution functioned under these conditions in Bulgaria for four decades until the early 1920s. At that time, largely due to public disapproval, legislation was enacted to prohibit brothels. However, during the interwar period, policies towards prostitution remained tacitly permissive. In the socialist state, prostitution is considered a shameful legacy of the bourgeois-capitalist way of life, and the activity of prostitutes is treated as unproductive and socially useless, and in that way it is considered a form of “social parasitism and laziness”. Despite the shifts in political and economic systems since 1989, this policy remained in effect until 2022, even though its inadequacy given the democratic conditions and policies of other EU countries. The analysis indicates that the state’s perception of prostitution is filtered through concepts of labor and economic benefit. However, ideological and political factors influence the way this labor will be interpreted. The moral dilemmas surrounding the sale of human bodies also affect the legal status of prostitution in society. In the current situation, politicians often hesitate to initiate discussions on policies that address phenomena deemed immoral. The result is that in Bulgaria, the topic of prostitution remains taboo, it’s widely acknowledged yet rarely discussed. This silence predominantly benefits criminal activities.
Key words: public policies, state regulation, prostitution, economic activity, political influence.
JEL: N43, N44, Z13, Z18
DOI: 10.61836/JQYX2848
22. Commissions and Bribes – the Secret Weapons in the Foreign Trade of the Peoples’ Republic of Bulgaria
Author: Nikolay YANEV
Abstract: Corruption has attracted the attention of researchers and experts as an obstacle to growth and a burden on public finances. Where the concerned mind sees a threat to good governance, the clever swindler finds an opportunity for profit. The managers of foreign trade in socialist Bulgaria are no exception. Behind the slogans of solidarity with Third World countries, state-owned enterprises that operate openly or covertly abroad deploy a wide network of corrupt dependencies to secure their interests through the generous distribution of “bribes” and “commissions”, two concepts that easily transform into each other. We find abundant documentary evidence of such practices in the court archive of the comprehensive case against the executives of the state-owned commercial enterprise “Texim”. The trial itself shows the contagious example of bribery, which from being a means of influence in foreign countries has settled into the organizational culture of the Bulgarian company, opening the door to various forms of abuse of office.
Key words: Corruption, Socialist Bulgaria, Foreign Trade, Third World, History.
JEL: K420, N440
DOI: 10.61836/SCGT1188
23. The “Failed” Economic Transition in Bulgaria through the Viewpoint of the Post-Communist Business Elites
Author: Georgeta NAZARSKA
Abstract: The article explores the economic transition in Bulgaria carried out in the 1990s through the evaluations given by the participants of its course and results. The study is based on a sociohistorical and socioanthropological approach, using data from recently conducted standardized interviews, focus groups, and surveys. A comparative analysis of the visions and explanations of members of (different segments of) the new economic and the new political elites is presented for the factors that hindered the Bulgarian economic transformation. The divergence of their assessments of the institutional, personal and socio-cultural barriers to economic growth and their unanimous opinion on the ‘failed’ transition is commented on.
Key words: economic transition, Bulgaria, business elites, post-communism.
JEL: P20, P30, P39, Z13
DOI: 10.61836/FWVS4916
24. Limits to Growth in the Context of the Environmental Transformation of the Economy in the EU and Bulgaria
Author: Vania IVANOVA
Abstract: The use of natural resources, in particular material flows, is not only one of the main drivers of economic growth, but also leads to resource depletion and environmental problems. Existing infrastructure, economic models and technologies, together with established behaviours, keep the economy ‘locked in’ to the linear model. It operates in a one-way pattern of resource – production – consumption – waste. The life of resources in Europe is limited to a single cycle. Today’s economy throws away more and more of the materials we extract from nature, which are increasingly difficult to degrade but have a high residual value when reused.
In order to achieve economic growth without increasing the quantitative consumption of mineral resources and without adverse effects on the environment, it is necessary to carry out a decoupling analysis that combines both resource decoupling and environmental impact decoupling. The attempts to overcome the limits to growth, which began in the 1970s, take on new nuances in the context of the environmental transformation of economies today. The aim of this study is to analyse the extent to which the process of decoupling growth from resource dependence is being realised in EU countries and in Bulgaria in particular. Based on a descriptive analysis of the dynamics of the indicators economic growth rate and resource productivity in the period 1980–2020, the results show an albeit slow and uneven positive trend in Europe and a significant lag in Bulgaria. In the face of rising prices and resource depletion, this is becoming an increasingly risky factor for business development. From an economic point of view, therefore, the interest in reducing these costs, using them more efficiently and optimising raw material flows is fully justified. The paper draws conclusions about the place of the circular economy in this process and points to some opportunities for deepening the processes of transition towards a resource–efficient and environmentally friendly economy.
Key words: decoupling, circular economy, resource productivity, EU, Bulgaria.
JEL: Q50, Q51, Q56, E23
DOI: 10.61836/CACP7192
25. Dynamics and Convergence of Labour Productivity in Bulgaria towards the Euro Area: A Comparative Analysis with Other Central and Eastern European Countries
Author: Stela RALEVA, Dimitar ZLATINOV
Abstract: The paper provides an analysis of labour productivity dynamics in Bulgaria in 1970–2019 and assesses the convergence to the euro area in comparison with other CEE countries. Based on the data from Pen world table, we measure convergence by the deviations from euro area average productivity levels and by employing panel models of absolute β-convergence. The results show an increasing tendency in labour productivity, a decreasing trend in its growth rates, the existence of significant peculiarities and internal heterogeneity of the three distinct periods (the last two decades of socialism, the 1990s and the first two decades of the 21st century). It is proved that at the end of the first period Bulgaria was ahead of Romania, Poland and Estonia in terms of labour productivity, at the end of the second period – only of Romania, and in the third period it started to lag behind all other CEE countries. The strongest deterioration in Bulgaria’s relative position over time has been recorded vis-à-vis Romania, and the largest lag in the level by 2019 is vis-à-vis Poland. The results from the estimation of the β-convergence model at 1990 base year indicate the existence of a catching-up process for the countries as a whole and the absence of such a process for Bulgaria. In the 2000-based model, labour productivity in Bulgaria converges with the euro area, but least among all countries in the region. Compared to Hungary, Slovenia and Slovakia, this is a consequence of a lower starting base, compared to Romania – of lower growth rates, and compared to the other countries – of a combination of both.
Key words: labour productivity, socialism, transitional period, EU membership, Euro area, economic convergence, β-convergence.
JEL: E24, F45, N14, N34, O47
DOI: 10.61836/SFXU2434
26. Dynamics of the Spatial Concentration of Economy in Bulgaria after 2007 – Opportunities and Barriers
Author: Nedko MINCHEV, Veneta HRISTOVA, Ivan STOYANOV
Abstract: Bulgaria’s membership in the EU in 2007 is a turning point in our history. Following the slogan “Europe of the Regions”, the country has turned to seeking the right instruments for regional development and planning the spatial concentration of individual industries to meet common policies and standards in the Union. The complex contemporary socio-economic processes and dynamically changing development conditions impose some specific requirements on the scientific justification of political and purely economic decisions. This implies a good knowledge and proper use of the basic models for analyzing trends in the dynamics of the spatial concentration of economic activities and taking into account the characteristic features of the development of the territory concerned. Although more than 15 years have passed since our accession, the differences between the regions are widening. Moreover, Bulgaria is also home to the poorest region in the entire Union. By 2024, there is still a serious gap between the real and the desired picture in this direction. This paper seeks to address this problem through an in-depth statistical and economic study of the dynamics of economic concentration in the country since 2007, with the aim of tracing the dynamics of the spatial location of economic activities. The subject of the study is the spatial and sectoral concentration of enterprises in the country, and the object of study is enterprises and employees in the territory of the country in aggregate form by planning regions and type of activity carried out by sectors of the economy. Through the macro analysis carried out, the existing trends over the years are sought and outlined, and findings on the dynamics of the spatial concentration of the economy in Bulgaria are derived. A chronological approach is used and time constants and variables are identified. The chosen methodology allows to trace the evolution of these dynamics while identifying persistent favorable and/or unfavorable correlations and practices. The approach based on the past will indicate in which directions policy instruments supporting the development of regions should be focused. The results obtained show the systematic absence of national and regional policies to manage the processes of spatial concentration of economic resources in territorial terms.
Key words: spatial concentration, localization, industry, dynamics of industries, regional development.
JEL: Е23, D20, E66
DOI: 10.61836/OMXK6230
27. Business Relations between the Trading Company “Hadzhi Mincho H. Tsachev and Company”, and the Tapchileshtovi Brothers
Author: Veselin GORANCHEV
Abstract: The publication is a continuation, supplement, and summary of several previous studies devoted to the economic relations between the company „Hadzhi Mincho Tsachev and Company“ from Tarnovo and the Tapchileshtov brothers (Hristo and Nikola) in their trade in metals (copper, iron, and steel), tallow of animal origin, and buffalo hides. This publication provides information on the exchange of other goods and raw materials between the mentioned contractors: raw silk, cordovans, wheat, yellow cheese, caviar, coffee, olive oil, and soap. It also presented information about the assistance that the Tapchileshtov brothers (mainly Hristo Tapchileshtov) have provided to the partners in the Tarnovo company in their activities on the purchase and exploitation of state sources of revenue.
The present publication, as well as the preceding ones, is prepared mainly based on previously unused Greek-language documents (letters and transcripts of letters). The research method is thematic-chronological. The conclusions we reach are:
The information on the topic of the relations between the trading company „Hadzhi Mincho Tsachev and Company“ and the Tapchileshtov brothers is fragmentary, and it is not possible to make a complete analysis of the trade exchange that has taken place between them (quantities of goods sent, their value, financial turnovers, respective profits, etc.). It can be assumed that the beginning of the economic relations between the company „Hadzhi Mincho Tsachev and Company“ and the Tapchileshtov brothers was established in 1847.
The exchange of goods is two-sided. The Tapchileshtovi brothers (together or independently) sent to their partners in Tarnovo the following raw materials and goods: metals, caviar, coffee, olive oil, soap, and dye. The Tarnovo company sent to the Tapchileshtovi brothers (to both or one of them): tallow, buffalo hides, raw silk, cordovans, yellow cheese, wheat and possibly corn. The economic operators in question also carried out commission activities.
The Tapchileshtovi brothers assist the company „Hadji Mincho Tsachev & Company“ in its activities on the purchase and exploitation of state revenue sources. This is what Hristo Tapchilestov is mainly involved with.
The documents testify that the contact between the Tarnovo company and the Tapchileshtovs lasted until the spring of 1855, i.e., until the murder of Hadji Mincho.
Key words: Bulgarian National Revival period, trade, purchase of state sources of revenue, company “Hadji Mincho h. Tsachev and Company”, Tapchileshtovi brothers.
JEL: N73, N93
DOI: 10.61836/ULMS4114
28. “Shadows in the Image” or about the Political Mentality of the Commercial Entrepreneurial Class in Svishtov in the Context of the Development of the City after the Liberation until the End of the Nineteenth Century
Author: Margarita MARINOVA
Abstract: In this article, the object of research is the commercial entrepreneurial class in Svishtov from the period after Liberation to the end of the 19th century. The subject of research is its political mentality. By definition, it represents a set of persistent beliefs, ideas, views, etc. about the political reality of a certain social community that guide its behavior. In the political mentality of Svishtov merchant entrepreneurs (they practice wholesale trade – export for grain and import of colonial and manufactured goods) four main components are highlighted. Their content and, reactions and actions motivated by it are clarified. Merchants engage in strong and rough political struggles. They obstruct important decisions of the municipal government. A sense of self-sufficiency is formed and useful connections with governments through which to protect the interests of the city are not built. Svishtov sees the rise of Ruse as a reason for its backwardness and underestimates the innovation in the work of the business circles there. All this casts shadows on the image of Svishtov merchants as respectable and honest entrepreneurs with a high social consciousness, acquired in the years of the Renaissance. The conclusion is reached that the political mentality can be seen as a cultural-value barrier to the development of Svishtov and that it contributes, along with other objective reasons, to its backwardness, which began to be felt at the end of the 19th century.
Key words: Svishtov, merchant entrepreneurs, political mentality, party struggles, geographical factor, municipal government, economic development, politics.
JEL: N93, O29, R11
DOI: 10.61836/DDTW7793
29. Svishtov in the Railway Policy of Bulgaria from the Liberation to 1912
Author: Emilia VACHEVA
Abstract: The report traces the projects from the Renaissance era, in which the town of Svishtov was included as a starting point for a railway line. It examines the plans of the Temporary Russian Occupation and the railway policy of the first Bulgarian governments. The role of the local municipal authority and economic figures in raising awareness about the issue of connecting the town to the central railway is revealed. Based on information from the stenographic records of the VIII and IX National Assemblies, the debates at the government level on resolving this issue are followed. It becomes clear that on November 27, 1895, Svishtov representatives At. Dankov, G. B. Nenovich, and F. Marinov submitted a proposal to the VIII National Assembly to amend the Law on the Design and Construction of the Railway Network. It contained two requests: first, to connect the Svishtov port with the central railway Roman – Pleven – Shumen through a branch wide-gauge railway line Svishtov – Gradishte. They proposed that it be part of the railway network and built with a loan obtained for the construction of railways in Bulgaria. Second, that the government be tasked with studying this line in the shortest possible time and putting it up for tender for construction so it could be ready for operation simultaneously with the central line. Their goal was achieved on December 13, 1898, when the IX National Assembly, in its regular session, passed a law amending the Law on the Design and Construction of the Railway Network in the country. Along with three other lines, the Svishtov – Gradishte line was put up for tender for construction. The worsening financial crisis halted the railway construction.
After a long wait for the construction of a railway line to Svishtov, it wasn’t until 1906 that the government organized a tender for its construction, which was won by the General Construction Company. It was finally decided that the junction would be near the town of Levski. Construction began at the end of 1906, and the line was handed over for operation on August 9, 1909.
The conclusion is reached that the town’s isolation from the central railway line was one of the most important reasons, along with national and other local issues, for its decline. The local public blamed the government for the lack of a railway branch, believing that the railways were being built not out of necessity but for political reasons, favoring certain towns.
Key words: Svishtov, railway policy, railway construction laws, Central railway line, deputation to the National Assembly.
JEL: N13
DOI: 10.61836/JOWR6973
30. Water-related Natural Disasters as a Barrier to Development. The Example of Karlovo in the early 20th century
Author: Aleksandar ZLATANOV
Abstract: The socio-economic situation of the town of Karlovo and the surrounding area after 1878 was difficult, and the prospects for economic development were uncertain. The new economic realities and free competition accelerated the process of decline of the old crafts and livelihoods, while the local authorities and the central government failed to support the local craft and textile industries. The transition from proto-industrial to factory production proved unsuccessful in the first decades after 1878, despite isolated successful initiatives. A significant, but not sufficiently studied factor hindering the development of Karlovo and the region during this period were natural disasters, especially water-related ones. This paper will examine the consequences of water-related natural disasters that were a significant barrier to the economic development of Karlovo in the early 20th century. As will be seen, these processes were not isolated only around the Balkan Mountain, but occurred throughout Thrace, north-central and southwestern Bulgaria. In 1905 and 1910, two major water-related natural disasters occurred, causing considerable damage to the population and the underdeveloped economy of the town and the region. The paper traces how and why such devastating consequences occurred, and what measures were taken by local and central government to solve the problem? Were they successful or did vested interests and local power struggles prevailed?
Key words: Water-related disasters, Karlovo, Erosion, Deforestation, Development.
JEL: N33, N34, N53, N54, N73, N74, N93, N94
DOI: 10.61836/MPUL7305
31. Business Practices in Crisis Conditions. The Decline of the Big Rose Oil Trading Companies in the 1930s
Author: Pencho PENCHEV, Momchil MARINOV
Abstract: The first part of the paper is focused on the main problems of rose production and rose oil trade during the period of the 1930s. Rose production is a classic market and export-oriented branch of Bulgarian economy. The problems it experienced show how delicate and complex a matter is the market orientation of any production. It depends on complex internal and external factors and can bring prosperity to individual regions and profits to producers and traders, but this is not certain. The second part is focused predominantly on attempts of one of the iconic Bulgarian rose trading companies „Petko Iv. Orozov and Son” to deal with the problems caused by the Great Depression. The fate of the company „Petko Orozov and Son“ shows that if the hostile external market environment is combined with internal shortcomings in the company itself, no matter what strategies are used, an easy escape from the problems cannot be expected. Political connections, marriages, the opportunities provided by legislative changes to save from bankruptcy are not enough.
Key words: rose oil, Great Depression, trade, business strategies.
JEL: N14, N84
DOI: 10.61836/QBYL9581
32. The Industrialist Stefan Pipev and his Volatile Success and Hard Decisions in Times of Crisis
Author: Svetla ATANASOVA
Abstract: The study presents the professional development of Stefan Pipev –a graduate of the Academy of Economics in Wien, a third generation trader, industrialist and a partner in the brewery Prosek Brothers. The accent is put on the period from 1907 until 1927 when Stefan Pipev was managing the brewery on his own and in a partnership the industry established by the Prosek brothers. He succeeds in keeping the relative rise of the production and modernizes it with new technologies. His management coincides with multiple crisis – a fierce competition between the beer brewers, a lot of bankruptcies, raising excised duty, and the economic disruption caused by the Balkan, the Second Balkan War and the World War I. Despite the unfavourable circumstances the Bulgarian entrepreneur succeeds to fight off the competition and keep the trademark Prosek in the top three brewery industries.
For the purposes of the research are studied documents from the State Archive –Sofia and State Archive – Veliko Tarnovo. Despite the low number of scientific and popular publications about Stefan Pipev all of them have been used in the study.
Key words: Stevan Pipev, industrialist, brewery, Prosek brothers.
JEL: N01, N83
DOI: 10.61836/LBUP2937
33. The Bulgarian Legislation of the 1930s and 1940s and the “Nisim Avdala & Sons” Factory
Author: Yordanka KRIVOSHIEVA
Abstract: Legislation in the 1930s and 1940s was characterized by significant changes in the Bulgarian industry, which generally came down to state regulation and control of production. The aim of the present study is to show the influence of the laws and their consequences on the economy of the country, through the history of an enterprise. The disadvantages of the Industry Act of 1936 are expressed in the favoring of firms, usually state and municipal, restrictions on private enterprise and free competition. The anti-Semitic state policy in 1942–1944 adversely affected the Bulgarian economy. Enterprises with a long tradition, with established trade contacts and markets are nationalized and entrusted to state officials. The economic transformations carried out by the political regime after 1944 represent yet another supreme injustice. They are conducted by the state without the necessary resources of experienced and prepared persons with knowledge and culture.
Key words: country laws industry factory.
JEL: L16, L52, N14
DOI: 10.61836/QRRJ6647
34. The Missed Opportunity – the Bulgarrenault Car Factory in Plovdiv
Author: Vidin SUKAREV
Abstract: The study is based on the archival fund of the Bulgarrenault Automobile Factory in Plovdiv. Its establishment is part of the attempts of the technologically backward socialist countries to meet the growing demand for cars through cooperation with Western manufacturers. In scientific publications to date, little information is given about the factory and its production, which in some cases is inaccurate. In this regard, the chronology of the foundation and construction of the factory, the duration of the construction works, its area and number of personnel have been clarified. Attention is paid why and how the enterprise was opened in Plovdiv as well as a state-owned agricultural holding existed on its place earlier. Another little-known fact is that during the first six months, the assembly of cars was carried out on a temporary assembly line in Hall No. 10 of the International Fair in Plovdiv. Until the factory entered full operation at the end of 1967, cars were assembled using the SKD system, which has so far remained unnoticed. It was claimed that the cars were fitted using the CKD system. However, this happens after the factory is opened. Until then, cars were sent from France in sets of 10 and assembled on the temporary line. When the factory is operational, the sets start at 50 cars each. The demand is high, but the Bulgarian state does not support the production. For the entire period, 6,995 cars were produced. The factory, which costs about three million BGN, works far from its capacity and produces an average of 123 cars per month, which is almost a manufactory. The closing of the factory in 1976 after unsuccessful attempts Bulgarrenault to be replaced with camping trailers and gasoline engines, means a missing of valuable chance for development of a modern Bulgarian automotive industry.
Keywords: Bulgarrenault; Plovdiv; International Fair; Kazanlak; Metalchim; SKD; CKD.
JEL: N84; N94
DOI: 10.61836/QPVA5069
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