Social Protection In The Transition To Market Economy In Bulgaria

The political changes of the early 90s of the twentieth century in Bulgaria laid the foundations for a real labor market and major reforms in the hitherto existing social protection systems and the development of human capital. The transition from centrally planned to a market economy in Bulgaria is expressed in massive transformations in the ownership and structure of the national economy. In these adverse economic conditions the formation of the labor market and social protection policies went through many twists because of the inconsistent policy of frequently changing governments and their different attitude towards policies on unemployment and employment. Next years, acquiring the features of a developed market economy, the national economy get opportunities for further integration to the current global economic and social processes. At the same time the opportunities are widened for participation in the common European and global networks, schemes, different initiatives which unite efforts to overcome the economic and social problems. The latest financial and economic crisis of 2008 found Bulgaria insufficiently prepared to implement an integrated approach to the social sphere, and in particular in the development of the labor market, social protection and human resources according to changing unfavorable macroeconomic environment. In practice, applied are various measures and programs borrowed from foreign experience in an attempt to approbation on regional and national level without having made a preliminary comprehensive analysis. Current study makes a profound analyses of the characteristics of labor market development in Bulgaria and development of the active social policies in these periods of active transformations in social and economic spheres.

The paper discusses the development of social policies in the transition period presenting the specific case of the Republic of Bulgaria. Employment policies and measures are examined in connection to the national governmental policies and in conditions of some major changes in economic and social life in the transition to a market economy and joining the EU. National programs are described which are targeted to provide acceleration of the structural reform and mitigation of unemployment. The lessons learnt during their preparation, organization and implementation is a valuable experience on which basis priorities of future development are set.

The political changes of the early 90-s of the twentieth century in Bulgaria lay the foundations for the development of a real labor market and major reforms in the hitherto existing social protection systems and the development of human capital. The transition from a centrally planned to a market economy in Bulgaria results in huge transformations in the ownership and structure of the national economy. These processes lead to a significant downturn in the functioning of the national economy. In these adverse economic conditions, the development of the labor market and social protection policies go through many turns due to the inconsistent policy of frequently changing governments and their different attitude towards policies on unemployment and employment. Further, the entrance of the country into the European Union challenged again the still developing economy and social system which soon after that are deeply influenced by the economic crises. The study presented outlines the main characteristics of different periods of labor market development making analyses of the statistical data available and it provides conclusions on the topic in close connection to the development of economic and social policies.

The paper discusses the development of social policies in the Republic of Bulgaria. Employment policies and measures are examined in connection to the national governmental policies and in conditions of some major changes in economic and social life in the transition to a market economy and joining the EU. Active social policy is characterized in its different aspects, as well as different approaches on employment and unemployment regarding labor force and in comparison to the passive policies. The lessons learnt during preparation, organization and implementation of the programs and measures of labor market policy are a valuable experience on which basis conclusions are made about the functioning of labor market and the link to social and economic development, as well as priorities of future development are set.