The Start of Coalition 2000 process
1998 Highlights
Overall the major facets of the work of the Economic Program in 1998 could
be summarized in the following categories:
I. Anti-Corruption
Implementing
the major elements of the Coalition
2000 initiative
The main objective of the participation of the Economic Program in the
Coalition 2000 process
has been to enhance the awareness, adoption and practical implementation
of democratic values (such as transparency, trust, integrity, etc.) in
the economy and the policy process. The support of CIPE for this activity
has made it possible for CSD to sustain and accelerate the Coalition
2000 process in the first half of 1998 and to adopt the role of
Secretariat for the coalition.
1. Elaborating the
Framework of Transparency and Integrity: the Anti-Corruption Action Plan
for Bulgaria
Immediately following the official launch of the Coalition
2000 initiative in early April 1998 a task force including more
than 30 experts in the fields of political science, history, economics,
business management, law, media analysis, survey research, and criminology
was formed to draft the Anti-Corruption Action Plan for Bulgaria. The
Plan deals with institutional, legislative, awareness, international and
other aspects of corruption.
The draft
version of the Anti-Corruption Action Plan was elaborated by the end of
May 1998. Following the completion of the work by the task force, the
background document was circulated among governmental, non-governmental
and international institutions in order to solicit their comments. Overall,
more than 70 people have provided suggestions that have been incorporated
in the Action Plan and this effort has resulted in a comprehensive anti-corruption
strategy for Bulgaria.
2. Conducting a Policy
Workshop to discuss the draft version of the Anti-Corruption Action Plan
(July 7, 1998)
On July 7,
1998 CSD hosted a Policy Workshop to discuss the Anti-Corruption Action
Plan drafted by Coalition 2000. The Policy Workshop was convened at an
expert level in order to finalize the suggestions and comments to the
background document. All institutions consulted were invited and the workshop
was attended by more than 50 participants.
3. Facilitating the
Coalition-Building Process: Coordination Meeting with NGOs (October 7,
1998)
In addition
to being the result of a partnership effort, the Coalition 2000 initiative
aims to contribute to the establishment of a favorable environment for
the formation of other coalitions among NGOs focusing on anti-corruption
measures.
At the meeting,
attended by representatives of 15 Bulgarian non-governmental organizations,
the general framework of the activities of Coalition 2000 and the evolving
sub-contracting opportunities were presented. The participants acknowledged
the importance and the timing of the initiative. A view was also expressed that Coalition 2000 should become more active at the regional level. NGOs, which have
regional branches, expressed their readiness to help Coalition 2000 in
this respect.
4. The Policy Forum
of Coalition 2000 (November 11, 1998) The Policy Forum has been designed
as the major element of the Coalition 2000
process. The
main objective of the first Policy Forum, conducted with the active involvement
of CSD as Secretariat of Coalition 2000, has been to adopt an anti-corruption
agenda (Anti-Corruption Action Plan for Bulgaria) supported by politicians,
the business community and the public in general.
In this respect
the success of the Policy Forum of November 11, 1998 has shown that the
efforts of Coalition 2000 have been widely appreciated and respected.
Senior government
officials, members of Parliament, diplomats and resident representatives
of the international organizations, policy and opinion makers, businessmen, academics,
and journalists attended the Forum.
By enlisting
the support of key political figures and institutions at the Policy Forum,
Coalition 2000 has managed to build up a consensus on the actions needed
for creating a favorable legal framework for the implementation of an
effective anti-corruption strategy. This achievement paves the way for
the coordinated implementation of anti-corruption initiatives that would
be supported by state institutions and monitored by civil society.
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II. Assisting the Social Security Reform
1.Drafting
Social Security Legislation
The Social
Security Task Force has been established as a joint initiative of CSD,
the Center for Economic Development, and the Association of Private Pension
Funds. Its priorities include:
- Privatization and Social Security Reform
- Development of Voluntary Pension Funds in a Reformed Social Security
System
- The Role of Voluntary Pension Funds in the Accelerated Privatization
Process
- Health Care Reform.
In 1998, the
Task Force prepared the draft Law on Voluntary Pension Funds, which has
been widely discussed and submitted to the Council of Ministers in April
1998. In late 1998 the Task Force started work on the Pension Reform Strategy
for Bulgaria.
2.Social
Policy Research and Analysis
In July 1998,
CSD started work on a one-year project entitled “Social Implications of
the Introduction of the Currency Board in Bulgaria” implemented with the
financial support of the SOCO Program of the Vienna Institute of Human
Sciences. The implementation of the project involves experts from the
Ministry of Finance, the Ministry of Labor and Social Policy, the Ministry
of Health Care, the National Statistical Institute, the Agency for Economic
Analyses and Forecasts, sociologists and economists from the Bulgarian
Academy of Sciences and non-governmental organizations.
The main goal
of the project is to analyze the changes in the social sphere and explore
the alternatives of social policy in Bulgaria. A system of indicators
is to be developed to measure the effect of social safety programs in
the areas of labor markets, unemployment benefits, income regulation,
collective bargaining, social security, health insurance and social assistance.
Project results will help focus public attention on the most vulnerable
social groups, who are most likely to be negatively affected by the implementation
of stricter financial discipline and the cuts in government spending.
Comparative analysis of the experience of other countries that have implemented
currency boards (Argentina, Lithuania, Estonia, and others) will make
it possible to elaborate relevant policy solutions that would improve
social policy and would help overcome the social exclusion of at-risk
groups.
The project
envisions a series of sociological surveys, analysis of statistical information,
and seminars. In 1998 the project team completed the preliminary assessment
of the effects of the currency board on labor markets, health care, pensions
and income policies and has conducted the qualitative sociological surveys
envisioned in the project. This has made it possible to prepare the research
instruments for the quantitative surveys to be conducted in 1999.
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III. Privatization, Capital Markets
and Corporate Governance
1.The Draft
Law on Securities: Promoting Transparency and Rule of Law in Capital Markets
This conference was conducted on April 16, 1998 as a follow-up to the
process initiated by CSD in the summer of 1997 aimed at identifying the
problems impeding the development of capital markets. It was organized
by CSD in cooperation with the Securities and Stock Exchange Commission
and the Economic Policy Institute. The main objective of the conference
was to discuss and comment on the draft of the Securities Act. Special
attention was devoted to exploring the legal regulations and practices
necessary to achieve greater transparency and rule of law within capital
markets.
The conference
was attended by more than 40 representatives of government institutions,
NGOs, the Bulgarian Stock Exchange-Sofia, brokers, investment intermediaries
and bankers. Seven leading experts on capital market issues were invited
as speakers. As a result of the discussion between regulators and market
participants, many recommendations for amendments to the draft law ensuring
fair access, confidence and openness of the capital markets have been
developed and submitted to the Economic Committee of the National Assembly,
the Bulgarian Stock Exchange-Sofia, the Bulgarian Association of Investment
Intermediaries, foreign banks and consultancy firms.
2.Consultations
with major credit rating agencies (February 4-5, 1998)
At the request
of the Ministry of Finance, CSD representatives participated in the consultations
concerning Bulgaria’s new credit rating and the forthcoming issuing of
Eurobonds. CSD was the only participating policy institute in the meetings
between credit rating agencies (Standard and Poor’s Corporation, Fitch-IBCA,
and Moody’s Investors Service) and members of Parliament, senior government
officials, and representatives of the IMF and World Bank resident missions.
3. Introducing Corporate
Governance and Capital Market Mechanisms to the General Public: Town Hall
Meetings in Pleven and Blagoevgrad
The main objective
of the Town Hall Meetings was to introduce the mechanisms of capital market
(privatization with investment vouchers) and corporate governance to the
general public and potential investors. The two Town Hall Meetings were
organized jointly with the municipalities of Pleven and Blagoevgrad, the
Center for Economic Development, the Association of Securities Holders
with the support of Commercial Bank “Biochim.”
The meetings
were attended by about 70 representatives of local authorities, state-owned
and private companies, investment intermediaries, trade unions, and the
public throughout the regions of Pleven and Blagoevgrad. Both Town Hall
Meetings have generated considerable interest from the participants who
have raised many questions concerning the forthcoming investment voucher
privatization scheme, private pension funds, minority shareholders’ rights,
etc.
4. Publication
of CSD Monitor - Issues 1-3
In 1998 three
issues of CSD’s Quarterly Monitor were published. The Monitor covers a
wide range of topics: status of the Bulgarian economy; privatization and
budget issues; corruption as a problem of market reforms and transition;
preparation of Bulgaria for participation in the structural funds of the
European Union; the media and civil society.
The Monitor
is published in Bulgarian and in English (1,000 copies in total) and is
available both in paper and in an electronic format at the web site of
CSD. The publication has been widely distributed to policy makers, government
officials, NGOs, media, municipalities, and international donors.
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IV. International
Business Club Meetings
Since its
establishment the International Business Club (IBC) has provided opportunities
for high-ranking public officials and policy makers to express their views
on topical political and economic issues in the presence of senior diplomats,
trade envoys and business leaders. In 1998 IBC organized four meetings:
- March 12, 1998. Guest-speakers were Mr. Ivan Neikov, Minister of
Labor and Social Policy, on Major Aspects of the Government's Social
Reform Policy and Mr. Antonio Vigilante, UNDP Representative on UNDP-Sponsored
Early Warning Report and Human Security Survey for Bulgaria.
- April 30, 1998. Guest speaker: Mr. Antoni Slavinski (Chairman, Committee
of Posts and Telecommunications) on Privatization of the Bulgarian Telecommunications
Company: Problems and Prospects;
- On June 17, 1998 the IBC celebrated its fifth anniversary. The guest-speakers
invited on this occasion were Mr. Alexander Bozhkov, Deputy Prime Minister
and Minister of Industry, and Mr. John Tennant, Resident Representative,
United States Agency for International Development in Bulgaria. This
joint presentation of the position of international donor organizations
and the position of the Bulgarian government made it possible to compare
different points of view on recent developments in the country;
- December 22, 1998. Guest speaker Mr. Yordan Sokolov, Chairman of
the National Assembly on Legislative Priorities of the National Assembly
in 1999.
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