“Independent Pension Reform Council” is set up
This made us set up an alternative “Independent Pension Reform Council” in which leading economists will take part. The Council’s goal will be to develop a real pension reform that will secure stability and sustainability as well as choice, when and under what conditions the employees will retire and what insurance contributions will they pay.
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On Crafts or the Story of a Shoemaker
One of the most widespread misconceptions in the modern history of the world is that the state should and can interfere in the activities of entrepreneurs and to assist business. Often, the government does it through artificially created organizations, giving them a unique and monopolistic power over many aspects of the economic life in the country.
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Bulgaria – The Country with Two Faces
Undoubtedly, this week was marked by the passions around Rumyana Jeleva’s hearing at the European Parliament. The general conclusion among the media and the public was that the incident is yet another shameful stain on the reputation of Bulgaria to Europe and worldwide. In contrast to the political pratfall in Brussels, Journal this week The Wall Street published a material, which gives Bulgaria’s fiscal policy as an example of the EU and the euro area, which have got in huge budget deficits during the global economic downturn.
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Why are we paying high prices for energy?
In the last several months the inflation, measured on a yearly basis, in Bulgaria is falling. The monthly report of the National Statistics Institute (NSI) shows, that April is not exception as well. Usually, when Bulgarian and European economic growth is slowing down, demand is diminishing and thus, the prices...
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Nano Thoughts in Mega Projects
I have doubts whether I could be able to find even one normal Bulgarian who would not want our country to become a powerful engine of economic growth in the region by producing modern technologies with high added value. And as if to answer this need and by accident just before the elections, the Government attempts a mega-journey in the world of nanotechnologies with promises of giant developments, but micro chances of success.
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Freakonomic analysis of the market for votes*
The election campaign is picking up speed and all sorts of advertising are pouring over us from everywhere. They have one thing in common, regardless of the advertising party: the label: “Buying and selling votes is a crime”...
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The Erroneous Calculations of the Government
A number of public projects, government programs and initiatives in our country significantly exceed the initial cost estimates. One should wonder why it happens and so often indeed? There are several explanations.
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Barriers to Enter the Market as a Measure Against the Crisis – What a Madness?
...Not only that we should not limit the access to new companies, but quite the opposite – the unnecessary regulations of the sector must be removed by abolishing the very bureaucratic regimes, easier and more efficient operation by the administration and reduction of the administrative taxes and last but not least – effective application of the legal requirements with the objective to limit disloyal competition.
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Again “New” State Companies
When the state decides that it should participate actively in the creation of businesses and the development of certain sectors, we should all ask ourselves the question - why the state would like to participate in such endeavor?
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How Regulation Distorts Employment
Everywhere around the world the social policy and its role in the economy are perceived like a cure for all problems (unemployment, income, poverty etc.) Under the conditions of a crisis, people insist even more for an adequate social policy, while the governments feel obliged to do something in order to respond to the crisis itself and the expectations of its people. Often, however, by doing something, the state not only does not help to overcome the difficulties, but intensifies and distorts them...
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How Do You Make a Good Policy?
The institutional framework of the economy, which is determined by the type and design of the laws, the acting rules and regulations in a country and the way they are applied in practice, is a prerequisite for the existence of a favorable business environment, which is directed toward the development of the entrepreneurship and innovation...
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The State of the Bans
The review of last week’s papers could lead to a strong negative sensation of helplessness compared to the efforts of the state to define more and more how, what, how much, who and where to do business. Putting a ban is more and more the approach to regulate, which a free thinking person, who believes in the entrepreneur and the initiative could not accept happily.
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Stimulating employment during a crisis – how it should not be done
One of the anti-crisis measures in the government plan (The Stanishev’s plan) foresees that the government would provide additional 120 levs to the salary of employees in companies which introduce reduced business hours for a period of 3 months, in order to protect the employment of their staff. This week the information came out that the ranking of the companies which would receive these “bonuses” would depend on the reduction of their sales and profits...
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Could we be free?
Exactly 15 years ago the Heritage Foundation, together with the Wall Street Journal began to measure the level of economic freedom around the World. The authors formulated 10 factors which have greatest effect on the level of freedom within an economy – freedom of business, commerce, investments, labor, monetary freedom, freedom from the Government, fiscal freedom and freedom from corruption.
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The Idea of Effective Bankruptcy
When we live during times when the failures of companies and collapse of businesses could be a more frequent event than 1-2 years ago, it is important to start thinking about what are the actions when a given business eventually fails. We are talking about mechanisms how to bankrupt an insolvent company and how to protect its creditors and shareholders. The procedure of insolvency is a coordinated mechanism, which aim is the maximum satisfaction of the creditors and the shareholders of the company...
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To Ban the Protests
The events of this week are forcing us to think. On Wednesday and Thursday we forgot for a while about the crises in Bulgaria, caused by external factors and turned our attention again towards the internal problems of the country. The preparation and carrying out of large-scale protests in front of the Parliament could not remain unnoticed by the people and the Government. Some people supported it, some remained indifferent, others did not agree. The Government began working feverously...
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Comments about the proposed Bill about the branch organizations of the employers
A senseless and potentially harmful for the economy bill is being prepared again – this time about the branch organizations ; in contrast to many other occasions however, this time the proposal is supported by the greater part of the businesses or more accurately by the organizations which represent them, which is not surprising since the proposal was developed mainly by them.
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Liars… according to the letter of the law
This week the minimal levels for social security payments for 2009 have been agreed; where the average minimal income for social security payments would reach 370 levs, while during 2008 it was 292 levs. This news is extremely important for many of the employers (and the employees as well) in the country, who again would find the necessary “reference point”. What does it mean actually?
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This year again we will pay agricultural tax*
Usually, if a producer operates at a loss for three – four months he simply goes bankrupt and is out of the business. However, the situation is different if this producer has been promised a subsidy regardless of being successful or not. This situation seems absurd. The agricultural producers and processors in Bulgaria and generally in the EU would say differently, since they are the main participants in the Common Agricultural Policy pf the EU and as they profit from it, in recent times, it seams that they are losing more.
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No to the protests of the milk producers
The milk producers protests and the decision which the Government is about to make for providing additional funds from the budget for subsidies, show again that an organized group of people could be very strong on the political scene, even if their demands are against the interest of the net taxpayers in the country...
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