This article examines the main themes and ideas behind the intellectual project of Georgi Petrov, which constitutes a coherent and well-argued justification of the need for a decentralized economy. Among the central topics discussed are the transition from directive planning to the use of economic levers, the establishment of a new basis for price formation, the granting of full autonomy to enterprises, and their integration into market mechanisms based on competition and profit incentives. The article also presents his views on forms of ownership and on the overall model of democratic socialism. His 1969 book Commodity Relations and Price Formation under Socialism stands out as one of the most significant Marxist theoretical arguments in support of the market economy model in Eastern Europe during that period.
This article presents the main ideas and contributions of Evgeni Mateev, whose extensive body of work is difficult to encompass in its entirety. Following a brief biographical overview, it traces the development of his views toward systems theory and cybernetics. The key elements of his model of socialism and the algorithm for its practical implementation are analysed. The article also examines fundamental methodological principles formulated in his seminal work, Structure and Management of the Economic System (1987), including microeconomic aspects related to the role of enterprises.
In order to manage human resources more professionally, managers should implement specific tools for increasing motivation within the organisation. One of the main roles of human resources is their action as a factor of organisational and cultural changes and transformations within organisations and beyond. Performance appraisal in the studied organisations shows that it is a formal assessment carried out systematically. Therefore, in the future, greater attention should be devoted to employee relations, workforce planning, continuing education, and motivation. Performance appraisal is carried out in a specific way in relation to the work, behaviour, and potential demonstrated by employees within the organisation. Organisations need professional employees who are not easily found in the labour market, or they need to develop them through specialised training and continuous education. This research aims to identify the challenges faced by organisations operating within the Kosovo market and provide recommendations that may be useful for businesses interested in motivating, promoting, developing, and advancing human resources based on education and work experience.
This article examines the state of and challenges facing the system for medical expertise determining permanent disability in Bulgaria (the TELC system). Despite recent steps towards fairer calculation of percentages, the introduction of lifetime TELC status for more diseases, digitalisation and the elimination of delays with legislative changes from 2023–2024, the system continues to suffer from serious structural deficits rooted in the strictly medical approach to disability assessment. The article analyses the increasing number of disability decisions and their impact on the long-term financial sustainability of the funds of the National Social Security Institute (NSSI). Special attention is paid to the discrepancy between medical diagnoses and real functional possibilities for integration into the labour market. The author argues that the strategic modernisation of the system requires a paradigm shift from a medical model to the WHO International Classification of Functioning, Disability and Health (ICF) framework. The results show that adopting a biopsychosocial approach would not only increase social justice but would also optimise public spending by more accurately targeting support and rehabilitation services.
Corruption reflects governance failure, which increases transaction costs, weakens regulatory certainty, and ultimately suppresses economic growth. This study analyses the effect of corruption control on economic growth in eight developing ASEAN countries from 2012 to 2024. Panel data econometric methods using fixed effects models with the Driscoll–Kraay standard errors (FE-DKSE) have been employed to estimate the effect, whilst feasible generalised least squares (FGLS) and panel-corrected standard errors (PCSE) are applied as robustness checks to validate the findings. The results consistently indicate that corruption control exerts a positive and significant effect on economic growth, operating through the strengthening of the investment climate, macroeconomic stability, and the effectiveness of public policies. These findings underscore the importance of prioritising anti-corruption reforms, strengthening the rule of law, improving human capital quality, and enhancing the productivity of public spending as central pillars of sustainable economic development in the region.
The Recovery and Resilience Facility (RRF) constitutes a qualitative leap in European fiscal integration. For the first time, the European Union (EU) issues common debt in such an amount and channels the resulting resources through a direct-management, performance-based delivery model grounded in “financing not linked to costs.” This federative-style architecture entails a systemic recalibration of the balance between national autonomy and Union-level responsibility and, in doing so, generates novel challenges for the protection of the EU’s financial interests (PIF). This paper assesses the implications of the RRF’s delivery model considering the protection of the financial interests of the Union. It argues that the innovative approach relying on milestone-and-target verification changes what can be monitored, audited, and credibly enforced. Drawing on recent audit findings and the evolving anti-fraud framework, the analysis identifies both cross-cutting and RRF-specific practical challenges. Monitoring tools are stretched by methodological constraints: common indicators may capture implementation progress yet remain insufficient for measuring performance, and deriving an objective “overall error rate” is difficult when payments are detached from declared expenditure. Moreover, the combination of broadly drafted key indicators and administrative discretion can facilitate “formal compliance”, whereby reporting appears procedurally sound while implementation remains substantively incomplete. Finally, the RRF introduces the operationalization of the concept of “serious irregularities”, which raises questions as to legal certainty, evidentiary thresholds, and enforceability in practice. The paper concludes that the RRF confirms the Union’s capacity to deepen integration in times of crisis, and that this process always brings with it new types of risks and challenges. It also produces new categories of risk that demand calibrated safeguards. Keywords: Recovery and Resilience Facility (RRF); protection of the EU’s financial interests (PIF); performance-based financing (financing not linked to costs); audit, accountability and transparency; fraud, corruption and irregularities control
The purpose of this paper is to trace the contemporary condition and mutual dependence of e-commerce and courier services, as well as perspectives for their development. Thus, it is necessary to examine the current state of e-commerce and courier companies faced with the challenge of working together to achieve high market shares and satisfy customer requirements, both in terms of products exchanged with sellers and services provided by couriers. Based on research carried out for the 2014–2024 period, we reach the conclusion that the trends for both e-commerce and courier services have been positive, with trade ahead in its development. The main prospects we associate with the future of courier services concern a reduction of human participation in delivery processes under the influence of technological developments in the form of robotics, artificial intelligence, big data and analytics, transport management systems, etc.
Nobel Prize laureate in economics Friedrich von Hayek (1899–1992) was interested in the way rules are formed and how they are understood. This approach is referred to as the theory of spontaneous order. It sees the evolution of social rules as the product of numerous interactions, the consequences of which are often unintended. At the same time, it investigates the spontaneous emergence of conventions concerning the ownership and division of valuable resources. Such conventions concern non-legislative rules of conduct, construed as impersonal or anonymous norms that are based on unorganised, informal sanctions. There are contexts in which coordination occurs spontaneously, without the intervention of any legal structure. A degree of assonance can be seen between Hayek’s spontaneous order and the conventional approach.
Despite the accumulated evidence that national culture influences the financial decisions of households across the European Union, there are relatively limited quantitative studies about its impact on the distribution of assets between secure deposits and riskier investments. This study examines whether Hofstede's six cultural dimensions contribute to explaining this phenomenon by analysing their effect on the financial behaviour of European households, measured by the share of investments in deposits and investment funds. Regression analysis statistically validates the claim that individualism is negatively associated with the relative share of deposits, while uncertainty avoidance has a positive effect on this share, indicating a stronger orientation towards security. Conversely, motivation towards achievement (masculinity) and individualism are positively associated with participation in investment funds, suggesting a higher propensity to take risks in individualistic and ‘masculine’ cultures. Power distance, long-term orientation and indulgence do not show any lasting effects. The results confirm the importance of cultural archetypes as factors determining the distribution of household assets and highlight the need to integrate them into the development of behavioural finance-based policies.
The monograph "Flexibility of Social Support in Times of Crisis (Experience and Lessons Learned from the COVID-19 Pandemic 2020–2022)" presents the results of a research project completed in 2025 research project, carried out within the framework of the research program of the Institute for Economic Research at the Bulgarian Academy of Sciences by a team consisting of Prof. Georgi Shopov, PhD, head of the project, Prof. Petko Salchev, PhD, and Assoc. Prof. Teodora Peneva, PhD. The issues related to the analysis of various aspects of social protection in a scientific-theoretical or practical-applied context have always been the focus of diverse perspectives in scientific research and in the formulation of the main guidelines and specific forms and mechanisms of social policy.
The quality of medical services is a key indicator of the health system’s success. Traditionally, it has been assessed through the accessibility and effectiveness of services provided. However, modern approaches emphasising the real impact on patient health measure it through health outcomes (clinical, CROMs, patient-reported outcomes, PROs). This shift from process-oriented to outcome-oriented models is at the heart of the concept of patient-centred healthcare. Outcome-oriented approaches are a key element in improving the quality of healthcare services. Patient-centred healthcare shifts the focus from quantitative indicators to the real impact on health, combining clinical outcomes and cost-effectiveness. By implementing strategic measurements and incentives to improve outcomes, health systems can deliver better added value for patients and contribute to sustainable development in the sector.
Albert Hirschman (1915–2012) was an economist known for his influential interdisciplinary social science models. In the 1950s, he developed the theory of unbalanced growth, which changed development theory. Hirschman argued that partial effects induced by targeted investments can have positive economic impacts on the development of national economies. In another behavioural model – exit and voice, he explains how dissatisfied individuals can react and how these reactions may affect the quality of output provided in both private and public goods. Hirschman's ideas have been incorporated into many concepts in the social sciences.
The article presents the results of a study on the relationship between minimum wage increases in Bulgaria and the dynamics of the so-called "working poor". It is assumed that setting the minimum wage amount as a fixed percentage of the national average wage – and therefore imposing it centrally through administrative channels and with limited participation of social partners – weakens the potential of this policy tool to achieve a sustainable reduction of the in-work poverty rate. Applying a single-factor regression analysis of the association between the ratio of the minimum wage to the average wage in the country (Kaitz index) and the share of working poor, it was found that there is a statistically significant positive association between the two variables. In other words, the higher the Kaitz index, the higher the share of working poor. This finding is important for the debate on the procedure for determining and updating the minimum wage in the country. It also highlights the need for public authorities to make targeted efforts in promoting the development of scientific knowledge on the economic and social effects of the minimum wage in a national context.
This paper examines the intersection between Celso Furtado’s economic thought and Old Institutional Economics (OIE), a connection largely overlooked in the literature. Although best known as a leading figure of Latin American structuralism, Furtado’s work incorporates key institutionalist principles, notably the centrality of institutions, historical path dependence, and the role of power in development. His approach converges with OIE in its critique of neoclassical equilibrium models, emphasis on cumulative causation, and evolutionary view of economic systems. Furtado’s analysis of social heterogeneity, institutional constraints, and cultural factors further resonates with institutionalist frameworks. By combining historical analysis, interdisciplinarity, and an active role for the state, his work bridges structuralism and institutionalism, offering valuable insights for contemporary development theory. Recognising these connections enriches both traditions and advances the debate on the institutional foundations of economic development.
The purpose of the study is to benchmark the association between the Eco-Innovation Index and the Competitive Sustainability Index (CSI) across the EU-27 in 2024. The study used official 2024 scores and Spearman rank correlations on a cross-sectional dataset. This 2024 study of the EU-27 found a strong positive correlation between the Eco-Innovation Index and the overall Competitive Sustainability Index (ρ=0.866), indicating that higher eco-innovation performance is associated with greater competitive sustainability, though the strength of the association varied across CSI pillars. The study is limited to descriptive associations but provides crucial data for EU benchmarking and generating hypotheses for multi-year analyses on the relationship between eco-innovation and competitive sustainability.
Research examines obesity in Bulgaria as both a public health concern and a structural economic challenge shaped by intergenerational dynamics and institutional transformations. A fixed-effects panel data model was applied to 33 European countries (2006–2022) to test two hypotheses: that childhood overweight is a predictor of adult obesity and that a high absolute number of obese individuals maintains the phenomenon through normalisation effects. The findings confirm a strong positive association between early-age overweight and obesity in adulthood, while the role of absolute numbers appears to be more complex, reflecting demographic and structural influences. Bulgaria is identified as an “ascending-risk” case, positioned between high-income and upper-middle-income economies, where deregulated food environments and demographic decline amplify health inequalities. The study argues that obesity should not be addressed primarily through medical treatment but through preventive strategies, including early childhood interventions, nutrition programmes, and cross-sectoral coordination. Despite limitations related to age-disaggregated data and sample size, the research provides solid evidence that obesity is an economic problem with long-term consequences for human capital and sustainable development.
With the introduction of new tariffs and restrictions in international trade, global value chains are undergoing a transformation. Traditionally, small and open economies such as Bulgaria's are actively involved in these chains, which tie their economic dynamics to their survival. The introduction of new tariffs on goods imported into the United States has led to an escalation of reciprocal actions and an expansion of the scope of customs restrictions in mutual trade. All this requires consideration of the impact on the functioning and future of value chains and, more generally, on trade in intermediate goods. While the broader EU–US trade framework provides context, the analysis focuses mainly on Bulgaria’s role as a small open economy integrated into European GVCs. This article proposes a new methodology to assess the effects of the introduction of tariffs on trade in intermediate goods. It develops the concept of indirect exports and evaluates the effect of the new US tariffs on indirect exports of Bulgarian goods that are processed and then exported to the US. The methodology is based on an analysis of export-significant commodity items and assesses the exports of goods with Bulgarian content from Bulgaria's largest trading partners. Conclusions are drawn about the impact of the new US tariffs on participation in value chains. The results show that indirect effects range between a reduction of 1.79% of Bulgaria’s total goods exports and 0.74% of GDP, using the average value approach, and a decrease of 0.49% of total exports and 0.20% of GDP under refined commodity level assessment. These moderate losses place Bulgaria among the EU countries with relatively lower adverse effects compared to more highly exposed economies.
The article examines the development of the information and communication technologies sector in Bulgaria within the context of the global digital economy, combining theoretical perspectives, empirical data, and case studies of leading applied research institutes. Key indicators such as the sector’s contribution to GDP, employment, revenue, and indexes like DESI and WDCI are presented. Particular attention is given to the role of the INSAIT and GATE institutes as catalysts of innovation through the “triple helix” model. Their contribution to attracting investments, fostering human capital, and establishing strategic partnerships is analysed in depth. The article also incorporates findings from semi-structured interviews with stakeholders which highlight the challenges facing digital transformation in Bulgaria. Based on this analysis, specific recommendations are formulated for strengthening cooperation between academia, industry, and the public sector in order to promote sustainable development and enhance Bulgaria’s international competitiveness.
The article analyses the pivotal role that financial literacy will play in Bulgaria’s forthcoming adoption of the euro, portraying the transition as a fundamental transformation that entails significant opportunities alongside systemic risks. Empirical evidence reveals a capability gap that could deepen market inefficiencies, stimulate price speculation and fuel public discontent. The study identifies the economic and social imperatives of literacy: facilitating price comparisons, protecting consumers from fraud and strengthening trust in the monetary changeover. A multi-layered national strategy is advocated, combining (1) systematic financial education at every scholastic tier; (2) large-scale informal programs for vulnerable adults; (3) digital calculators and mobile applications; (4) communication campaigns adapted to demographic specifics; and (5) co-ordination among government, the Bulgarian National Bank, business and NGOs. Comparative scrutiny of Estonia’s, Lithuania’s and Croatia’s changeovers isolates proven instruments: mandatory dual price display, business ethics codes, free cash exchange and mobile information teams. Evidence from these cases shows that the mix of preventive inspections, public disclosure of violators and fines limits the one-off inflationary effect while bolstering public confidence. Enhanced literacy, in turn, reinforces economic integration through lower transaction costs, greater investment appeal and stabilized inflation expectations. The article concludes by urging Bulgaria to adopt an urgent communication strategy with measurable milestones (≥ 80 % awareness, ≥ 60 % support), to intensify price oversight and to frame euro adoption as an “inter-sectoral social contract” requiring strategic managerial resolve.
The tax gap, also referred to as a tax ‘difference’, ‘mismatch’, ‘emptiness’, ‘omission’, ‘hole’, ‘deficit’, ‘shortage’, ‘loss’ or ‘damage’, represents the amount of tax revenue lost or foregone. It is the difference between the potential and actual revenue collected. More specifically, it is the difference between the amount of tax that could theoretically be collected if all taxpayers fulfilled their tax obligations by voluntarily submitting complete and accurate tax returns and paying the taxes due, compared to the current, or hypothetically most extensive, tax legislation, and the amount of actual collected tax over a specific period. This article provides a literary overview of the ‘tax gap’ concept and issues related to it, as well as theoretical and practical insights related to its nature, components, and methods and practices used for measurement in some advanced countries and in Bulgaria. Statistical data are also presented along with results from a survey conducted in December 2024 and January 2025 among experts in the field of financial control in Bulgaria working at the National Revenue Agency (NRA) and the Customs Agency, as well as university lecturers in finance and accounting. The author’s insights are intended for experts from revenue organisations and can also be useful to scientific and business analysts more broadly.
