The week through the eyes of a citizen

Setting a side the most discussed topics in Bulgaria during the last two months – inflation, corruption and the European funds, several interesting things happened.

 

Suicidal impulse of the business."[1]

On Friday the members of the parliament voted on a first reading the changes in the Bill for pharmaceutical products in humanitarian medicine, proposed by the Council of Ministers, according to it owners of pharmacies could be also people without a masters degree in pharmacy. This is such a logical decision, that we should ask the question: how the original restriction was passed. To people like me it is clear – the endeavor of restricting competition and preventing from entering the market of new participants is natural for the companies and the role of the Government is not to allow it.

Also a valid claim is that the larger the state and the Bulgarian in not fare behind the large, the stronger the thighs between the large companies which would have formal and non formal connections to the high floors of power and would lobby for special privileges, subsidies and protection. These could easily be provided by a large state, because there is something to distribute.  

As Milton Freedman said: "I think the business is a wonderful institution, if it exists and survives under the conditions of market competition and the only way to succeed is to offer better goods/services and a lower than the competitors price and for that reason I do not want the Government to intervene and to help the business."

The case with the undeclared war between the Bulgarian and foreign legal offices is similar. The argument is whether or not to have restrictions for the activities of the foreigners (how to write their names, could they register as commercial companies or branch offices). The argument, viewed from outside, seems absurdity. Bulgaria, as a part of the EU, must allow practicing of the legal profession to all companies operating in the EU, mainly because that means that the competition would increase, which is good from any point of view. On the other hand the choice of the people and companies for legal protection will increase. Otherwise it is clear that the laws must be obeyed, but the bad laws must be changed. For that reason rather than go to the courts, it would be better to make attempts to change the Bulgarian legislation in such a way as to really protect the citizen and to give a level playing field for the businesses. In other words drop all limitations right away.

 

The lack of logic

The national association of general practitioners (GP's) warned "that if the Government does not take the necessary measures the GP's will hold a national protest."  One of the reasons for the eventual protest is the elimination of the consumer tax, which according to them "will lead to over consumption, which will prevent the younger health insured from using their services. In order to insure access for the working people it will be necessary to introduce waiting lists."

The logic to eliminate the tax is absurd. The argument as well "this is a legal racket of the sick by the health system". Several thoughts in connection with this:

  • – When you do not pay anything out of pocket (although you have been paying all your life insurance) during every check up it is logical go more frequently.
  • – The more frequent visits would be possible for those who could wait.
  • – A significant portion of those that the elimination of the tax intends to help are already freed from paying it (socially week, chronically ill, etc.).
  • – The National Health Care Fund (NHCF) is for the elimination, while the doctors are against. If the idea is accepted the fund would pay the money directly to the doctors instead of the patients who are in direct contact with the doctors, it will be done by the administration, whose quality is not the most effective, expedient and operational.

The truth is that the health system must be reformed now. Not next year, not from the next mandate, but from 1st of July 2008. If the monopoly of the NHCF is eliminated, which is probably the explanation of all illnesses at home, than every person alone would select the fund of his choice. Than you and I, the retired and the socially week could select different funds including among such which have user tax and others which do not consider it an appropriate measure.

 

The Government works

This week the regular meeting of the Council of Ministers took place. Several decisions deserve a comment:

(1) The merger of two executive agencies is foreseen with the respective redundancies, redundancies in some other agencies; however an increase in the staff is foreseen in others. The net result is not clear, but we hope to find out after the end of June, when is the deadline for minimum 12% reduction of the administration.

2) Some position was approved (for participation the EU Council for agriculture and fisheries). Some because it is not clear what actually is the position. Wonderful thing ….This among other thing refers to all our positions, which are approved by Council for European Issues with the Council of Ministers. In the decree for its creation from April 2007 it is written that it will make decisions about political issues related to the membership of the Republic of Bulgaria in the EU and would approve the positions of Bulgaria for the regular and informal meeting the EC, the European Union council and approves the mandate for their representation. It is also written there, that all frame position must have an assessment of the effects on business, the normative base and the practice in the country. Neither the approved positions nor the assessments are available in Internet. 

 

What is this?!

During the last few days the results from the first mandatory matriculation exams were announced. It seams that a lot of people were unpleasantly surprised by the results including the students themselves. Most, however knew what all was about. The employers, which constantly face the results of the educational system, but it seams can not comprehend that they must participate in this process; the teachers, who up until now were not evaluated for their work, but knew that probably something is not right, keeping in mind the private tutoring over the years; the ministry of education, which over a period of several years could not apply the law where it was stated that there must be matriculation, probably because of fear that it would have to face its uselessness; the parents, who want a better education, but are not insisting for more responsibility and family control of the school affairs, etc.

The brief selective review of the events taking place in our country in the last few days could be summed up as: it is too expensive for our rulers to learn as it goes what to do. It is even more expensive if they never learn. If you start thinking there are so many examples for successful reforms, unbelievable results and prosperous nations…


[1]The term is used by Milton Freedman as a title of several of his public lectures.


Related publications.