The two major thematic accents that have dominated
the work of the Economic Program in 1998 have been:
Extensive involvement in the Coalition 2000
initiative. This has made it possible to explore the impact of
corruption on economic growth focusing on the costs of corrupt
behavior and to elaborate suggestions for amendments to the
existing legislation and business practices. Anti-corruption
efforts have been among the principle activities in the work on the
project: “Market and Democratic Values in the Transition Period,”
supported by the Center for International Private Enterprise
(CIPE), Washington D.C.
The study of the effects of the implementation of
the currency board in Bulgaria on social policy. This effort
has been based on the project "Social Implications of the
Introduction of the Currency Board in Bulgaria" which is designed
to explore the alternatives for social policy in the context of the
restrictions of the currency board.
Overall the major facets of the work of the Economic
Program in 1998 could be summarized in the following
categories:
1.Consensus and Coalition Building: Participation in
The Coalition 2000 process
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.
1.1.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.
I am pleased to forward you a copy of an
innovative anti-corruption action plan developed by Coalition 2000,
a group of Bulgarian NGOs including the Center for the Study of
Democracy. I believe this program, which is designed as part of an
important initiative to combat corruption in Bulgaria, is
worthwhile and merits review. It may be helpful to each of you as
you consider ways in which to address the issues of corruption and
transparency in your own countries.
George Soros,
financier and philanthropist:
[e-mail to Open Society foundations]
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.
1.2.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.
1.3.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.
1.4.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.
2.Assisting the Social Security Reform
2.1.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:
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.
2.2.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” to be 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.
3.Dissemination and Advocacy
3.1.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.
3.2.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.
3.3.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.
3.4.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:
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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.
3.5. 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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