Bulgaria emerged from World War II under the control of a coalition

government dominated by the BKP, which by 1947 had arrogated unto itself

complete power in the country. In the immediate postwar years policy and

direction concerning how the BKP should run the country was dictated

from Moscow, as was the case throughout most of the countries of Eastern

Europe. Between 1944 and 1948 eight countries had been taken over by

communist parties and had aligned themselves with the Soviet Union,

which exerted varying degrees of influence in the internal and

international affairs of all of them. Over the next twenty years

Yugoslavia and Albania broke out of the Soviet orbit completely; the

German Democratic Republic (East Germany), Poland, Hungary, and

Czechoslovakia experienced uprisings or civil disorders--in most cases

suppressed by Soviet force--and Romania asserted its right to national

self-determination on numerous occasions. Bulgaria alone remained

unwavering in its absolute allegiance to the Soviet Union.

Bulgaria chose not to follow the examples of other Eastern European

countries in seeking some degree of autonomy during the 1950s and 1960s

for many reasons. Not least among these were the historic traditions of

friendship between Bulgarians and Russians dating back to the

Russo-Turkish war that freed Bulgaria from Turkish rule in 1878.

Bulgarians are also close to the Russians in language, religion, and

cultural traditions. Additionally, having assumed power, the Bulgarian

Communists quite naturally looked toward Moscow--then the center of

world communism--for guidance and support. Many of the early postwar

leaders had spent several years as residents of the Soviet Union, where

they had been closely associated with the country's party.

Another reason for the close ties to the Soviet Union was pure

pragmatism on the part of the Bulgarian communist leaders. They were, in

effect, a minority leadership group faced with the task of imposing an

alien ideology on a reluctant majority at the same time that they were

trying to reorient the country's economy from an agricultural base to an

industrial base. The Bulgarian leaders needed the support of the Soviet

Union.

Beset by intraparty strife and lack of success in running the country

after the death of Georgi Dimitrov--the leading Bulgarian communist hero

and strong man of the early postwar years--the party leadership again

clung to Soviet support and totalitarian rigidity to perpetuate itself

in power. Even after the death of Soviet dictator Joseph Stalin and the

later de-Stalinization program under Nikita Khrushchev, Bulgaria's

leaders retained Stalinism as a modus operandi until the early 1960s.

After Zhivkov became first secretary of the party in 1954, there was a

long power struggle, for a third time, and it was not until the early

1960s that Zhivkov managed to eliminate his major antagonists from the

party hierarchy and stabilize his regime. During all of those years and

on through the 1960s and into the 1970s, Zhivkov continued the policy of

absolute loyalty to the Soviet Union and to its leadership.

Consequently, Bulgarian foreign policy has been a mirror image of Soviet

policy.

Principles of Foreign Policy

Bulgaria's constitution, in describing how the state serves the people

in foreign affairs, mentions "developing and cementing friendship,

cooperation, and mutual assistance with the Union of Soviet Socialist

Republics and the other socialist countries" and "pursuing a policy of

peace and understanding with all countries and peoples." Official

spokesmen proclaim that the country's international relations are

founded on the necessity for protecting national sovereignty and on the

creation of an overall attitude that would further the cause of all

nations in their development as modern states.

A quotation from the party program developed for the Tenth Party

Congress in 1971 indicates that, as far as Bulgaria's leaders are

concerned, the Soviet Union leads and Bulgaria follows. "For the

Bulgarian Communist Party and the Bulgarian people, Bulgarian-Soviet

friendship is like the sun and the air for every living creature, it is

a friendship of centuries and for centuries, one of the main driving

forces of our development, a condition and guarantee for the future

progress of our socialist fatherland and its tomorrow."

CONDUCT OF FOREIGN AFFAIRS

The Constitution of 1971 assigns the conduct of foreign relations to the

National Assembly, the State Council, and the Council of Ministers.

Formulation of foreign policy, however, remains a prerogative of the

BKP. The constitution states that the National Assembly implements

foreign policy but, because the assembly meets only three times each

year in short sessions, the implementation function is passed on to the

State Council during the long interim periods between assembly meetings.

Primary responsibilities of the State Council in foreign affairs (as

opposed to those limited to the periods between National Assembly

meetings) include representation of the country in its international

relations; the appointment, recall, or release from duty of diplomats

and consular officials; the ratification or denunciation of

international agreements; and the establishment of diplomatic and

consular ranks.

Although the ministries of foreign affairs and foreign trade are the

governmental operating agencies in the field of international

relations, in theory and in fact the State Council is the supervisory

body. The State Council exercises control over the activities of the

Council of Ministers and the ministries as stipulated in the

constitution. In essence, the State Council is the most powerful

government organ, not only in foreign affairs but in all governmental

activities. The interlocking of positions between the highest levels of

the party and the highest levels of the government assures that the BKP

program will be implemented.

According to the constitution, the Council of Ministers "organizes the

implementation of the home and foreign policy of the state." The council

is also charged with the concluding of international agreements and the

approval or denunciation of international agreements that are not

subject to ratification. In performing its constitutional duties in

foreign affairs, the Council of Ministers acts through the Ministry of

Foreign Affairs and the Ministry of Foreign Trade.

The Ministry of Foreign Affairs is the administrative arm of the

government in the execution of foreign policy directives, decrees, and

decisions of the BKP and in representing the country abroad in

embassies, legations, and consular offices. The ministry, in the

prosecution of its duties and functions, employs a minister, two first

deputy ministers, four deputy ministers, and a secretary general, who

are assisted by the heads of eight geographic departments. In 1973 these

departments were designated to handle affairs with the Soviet Union,

other socialist states, the Balkans, Western Europe, Asia, the Arab-bloc

countries, sub-Saharan Africa, and the Americas.

The functional departments include: administrative, consular, political,

research and planning, cultural, documentation and archives, economic,

finance and accounting, international organization, inspectors,

personnel, press and cultural affairs, protocol, and legal. A committee

for church affairs and a diplomatic service bureau, although not

classified as regular departments, function as such. Also included is

the position of disarmament negotiator.

The Ministry of Foreign Trade functions under the direction and

supervision of a minister, a first deputy minister, and six deputy

ministers, who are almost always high-ranking members of the BKP. The

ministry itself is organized into thirteen geographic offices and seven

departments. The different geographic offices handle trade agreements

with the Soviet Union, other socialist countries, developed capitalist

countries, Asia and Latin America, and the Arab and African countries.

Other offices include foreign exchange planning and accounting,

coordination, leadership and control of foreign trade organizations,

currency and finance, economic planning, market conditions, planning,

and personnel. There are departments for statistics, secretariat and

protocol, legal and departmental arbitration, accounting and auditing,

administration, labor and wages, and control inspectorate.

Additionally, there are offices and sections not falling under any

specific category but existing independently. They are: an office for a

trade fair director general, trade representatives, a foreign trade

research institute, and a state inspection on the quality of goods for

export.

INTERNATIONAL RELATIONS

Relations with Communist Countries

Bulgaria's foreign policy and foreign trade are circumscribed to a great

extent within the alliances formed by the Soviet Union and the communist

countries of Eastern Europe. In the early 1970s this tightly knit,

although polycentric, group continued to expect and did receive

Bulgaria's participation in preserving the status quo in Eastern Europe.

As is the case with other Eastern European countries, Bulgaria wants

Western technology and also would like to attract more Western tourists

to increase its hard currency intake. Bulgaria's motive for attracting

the West is economic rather than ideological. It is accepted within the

socialist alliances that the principle of proletarian internationalism

does not preclude diversity of trading partners of the individual member

countries.

Soviet Union

Bulgarian relations with the Soviet Union have been described as

subservient, and Zhivkov once acknowledged that he was "known for being

bound to the Soviet Union in life and death." In 1948 Bulgaria entered

into the Treaty of Friendship, Cooperation, and Mutual Aid with the

Soviet Union, which was renewed for another twenty years on May 12,

1967, and over the years the close alignment between the two countries

has taken on greater importance. Ideologically, it is well known that

Bulgaria is a loyal partner within the Soviet-dominated socialist group.

Its leaders have been schooled in Marxism-Leninism and usually look to

the Soviet Union for leadership.

Economically, Bulgaria still looks to the Soviet Union for foreign aid

and preferential trade treatment. The rapid pace with which Bulgaria has

moved toward industrialization is primarily owing to Soviet assistance.

Raw materials critical to Bulgaria's economy are supplied by the Soviet

Union and, with Soviet aid, the country has been able to construct many

large industrial enterprises. Estimates in 1967 put the number of Soviet

specialists in Bulgaria at 5,000, and the number has probably increased.

The renewal of a five-year agreement for 1971 through 1975 would serve

to increase further the Soviet share of trade in Bulgaria.

Relations with Other Communist States

Bulgaria's relations with Czechoslovakia, East Germany, Hungary, Poland,

and Romania are largely governed by a series of bilateral and

multilateral treaties of friendship and cultural cooperation and by

military and economic alliances. The alliances are the Warsaw Pact and

COMECON. Relations with the other two communist states of Eastern

Europe, Albania and Yugoslavia, have usually followed Soviet initiatives

toward those countries.

Quite naturally, Bulgaria's major concerns in foreign affairs have dealt

with relations among the states of the Balkan Peninsula and particularly

with adjacent states. Romania, its northern neighbor, is a member of

COMECON and the Warsaw Pact but has often appeared to be a reluctant

member and since the early 1960s has stressed nationalism rather than

Marxist internationalism, causing Bulgaria, with its strong Soviet

orientation, to tread lightly in bilateral relations for fear of

offending the Soviets. Nevertheless, the Bulgarians and Romanians have

drawn closer together, probably because both countries see benefits that

might accrue from Balkan cooperation and believe that such cooperation

should in no way disturb the Soviet Union. In the early 1970s relations

appeared to be particularly good: there were frequent meetings between

leaders and government ministers, and a plan to cooperate in the

building of a huge hydroelectric project on the Danube River between the

two countries was announced.

Relations with Yugoslavia have more often than not been troubled to the

point of enmity. The problems existing between these two countries have

deep historical roots that hinge primarily on the Bulgarian contention

that Macedonia (since 1946 a federated republic of Yugoslavia) should be

Bulgarian rather than Yugoslavian. After World War II, when both

countries became communist, the Macedonian question was purposely

deemphasized but, when the Soviet-Yugoslav split occurred in 1948,

ideological differences paved the way for a renewal of the polemics on

the Bulgarian irredentist claims. In the early 1970s the polemics were

reduced to a minor level, and constructive talks leading to a

rapprochement began to occur. The changed atmosphere was attributed to

the state of relations between the Soviet Union and Yugoslavia but, for

whatever reason, the climate of relations between Bulgaria and its

western neighbor was considerably improved, and Bulgarian irredentism

was submerged.

Relations with Noncommunist States

The European Conference for Security and Cooperation held in Helsinki in

the spring of 1973 discussed the possibility of a freer exchange of

people and ideas as well as a freer flow of information between Western

European and Eastern European societies. The intensity of ideological

polemics had diminished with increasing contacts between East and West,

and the gap between the two social systems seemed narrower, especially

in regard to economic planning and development. Bulgaria, however,

publicly expressed doubts about importing anti-communist theories that

might accompany the freer exchanges of people, ideas, and information.

In a plenum of the Central Committee of the Bulgarian Communist Party

in July 1973, the party leaders touched on issues of international

relations. The leaders pledged to continue a new policy of building

goodwill and enhancing relations with noncommunist European states as

well as with other developed capitalist states in all aspects of

political, economic, cultural, and other relations. Bulgaria also sought

to continue cultivating and developing friendly relations with

nonaligned friendly countries in Asia, Africa, and Latin America.

Consistent with this policy, it pledged to render assistance to these

countries, especially where there were national liberation movements

involved in active resistance to the established regimes.

Greece and Turkey

Greece is geographically contiguous to Bulgaria, and relations between

the two countries have been alternately hot and cold depending on the

political climate of the times. In 1964 both countries signed an accord

relative to war reparations, which opened up some channels of

communication, cultural exchanges, and relaxed travel restrictions. The

move toward better relations was interrupted by the 1967 coup d'etat in

Greece, but improvement began again in the early 1970s when officials of

the two governments exchanged visits. By 1972 a newly created

Bulgarian-Greek economic cooperation commission had met in Sofia.

Difficulties between Bulgaria and Turkey have deep roots in history and

also involve the 750,000 ethnic Turks still residing in Bulgaria (see

ch. 2; ch. 4). An atmosphere of cordiality, however, had been developing

slowly as the officials of both countries cautiously negotiated to

reduce tensions between the two countries. Exchanges of high-level

visits and the signing of various economic agreements had stabilized

Bulgarian-Turkish relations by the early 1970s. The hijacking of two

Turkish planes to Sofia in 1972 disturbed the detente temporarily, but

the Bulgarian foreign minister went quickly to Turkey to make amends. In

1973 the two countries again enjoyed improved relations.

The United States

The tensions that marked Bulgarian-United States foreign relations in

the 1950s eased somewhat in the 1960s. The legations of both countries

were raised to embassy status in November 1966. This action was believed

to be an offshoot of United States efforts, particularly that of

President Lyndon B. Johnson, to "build bridges" to Eastern Europe. This

resumption of diplomatic goodwill was not pursued vigorously and, at the

time, reception to the idea in Bulgaria was generally cool. A noted

communist theoretician regarded the United States overtures as a

divisive force in the fraternal world of the communist movement,

designed ultimately to bring in a capitalist system inimical to the

ideological interest of any socialist country.

In 1973 the relations between the two countries were, however, cordial.

Observers noted an increase in trade, although it was still

quantitatively small and accounted for only between US$6 million and

US$7 million annually. Bulgaria hoped to increase this volume to US$30

million, especially by exporting high-quality tobacco to the United

States market.

Bulgaria has been seeking a consular agreement that would grant it

most-favored-nation tariff treatment in order to keep Bulgarian exports

on a competitive level with others in the United States market. Toward

this end, a Bulgarian trade delegation visited the United States in

mid-July 1973 to exchange views on expanded trade and economic relations

between the two countries. While in Washington the delegation met with

top officials from the Department of State, the Department of Commerce,

the Department of the Treasury, and the Export-Import Bank and with some

members of Congress.

West Germany

The two world wars saw Bulgaria fighting on Germany's side. Thereafter

Bulgarian policy differed from the Soviet line only once in a case that

involved relations between Bulgaria and the Federal Republic of Germany

(West Germany). When Chancellor Ludwig Erhard sounded out several

Eastern European governments with peace notes in 1966, Bulgaria along

with Romania did not publish official replies. Later that year West

German officials met with the Bulgarian foreign minister, and it

appeared that normalization of relations was in the offing. The

negotiations did not come to fruition, however, and Bulgaria fell back

in line with the Soviet Union, which at the time was hostile to West

Germany. The mere fact that Bulgaria participated in such independent

talks appeared remarkable to some observers.

During 1972 relations between Bulgaria and West Germany improved. Some

of the reasons attributed to this changing tack included the

ratification of treaties negotiated between West Germany, Poland, and

the Soviet Union; the opening of diplomatic channels between Poland and

West Germany; and the meetings of ambassadors of European countries in

Helsinki. Most important, however, was the signing of a basic treaty

that established and regulated relations between West and East Germany,

a condition set by Bulgaria before diplomatic relations could be resumed

with West Germany. The open advocacy of the Soviet Union for improved

relations with West Germany also encouraged Bulgaria to expedite the

resumption of diplomatic communications.

Other Western Countries

The mid-1960s saw party chief Zhivkov "building bridges" himself with

other Western countries. In light of Bulgaria's interest in expansion of

trade, relations with France were improved with reciprocal visits in

1966 between Zhivkov and Foreign Minister Maurice Couve de Murville.

Also in the same year, partly as a result of these negotiations, the

French car manufacturer, Renault, established an assembly plant in

Bulgaria. Simultaneous with this move was the establishment of a

diplomatic mission in Canada. Agreements were negotiated with Belgium

and Italy on cultural, technical, and economic matters. Australia also

had a share of Bulgaria's trade attention; both countries signed a

long-term trade agreement in 1972, and an agreement was reached to

establish diplomatic relations at the embassy level.

Relations with Other States

Bulgarian interest in trade with the developing countries has increased

considerably. In 1971 and 1972 the volume of trade with third world

countries exceeded 316 million leva (for value of the lev--see Glossary)

as opposed to 113.3 million leva in 1965. The Arab countries rank first

in the amount of business conducted with Bulgaria. A considerable number

of Bulgarian experts are also engaged in the construction of industrial

enterprises in various developing countries.

MEMBERSHIP IN REGIONAL AND INTERNATIONAL ORGANIZATIONS

Regional Cooperation

Military cooperation on a regional basis was secured for Bulgaria and

its allies (the Soviet Union, East Germany, Hungary, Poland, Romania,

and Czechoslovakia) in a multilateral alliance known as the Warsaw Pact.

Albania, an original member, withdrew in 1968 (see ch. 16). Signed on

May 14, 1955, in Warsaw, Poland, the pact was and remains Eastern

Europe's answer to the challenges and security arrangements of the North

Atlantic Treaty Organization (NATO). In one sense it seemed to provide

legal grounds for the Soviet Union to keep its troops in east-central

Europe as well as to secure the balance of military power in Europe,

especially after West Germany joined NATO. In another sense it confirmed

the Soviet Union's political and military hegemony in all of Eastern

Europe.

The organization has two main bodies--the Political Consultative

Committee, which recommends general questions of foreign policy for

member countries, and the High Command of United Armed Forces, which

prepares military plans in time of war and decides troop deployments.

Both bodies are located in Moscow, and all its senior ranking officials

are Russians.

Bulgaria has bilateral treaties of mutual aid with each other member of

the Warsaw Pact. A multilateral agreement binds all the members to one

another in general and to the Soviet Union in particular. Within

Bulgaria Soviet officers serve as advisers at the division level and

formerly served down to the regiment level. Others serve as instructors.

Bulgaria was a charter member of COMECON in 1949. An economic alliance

among Eastern European countries, COMECON is the counterpart to Western

Europe's European Economic Community (commonly called the Common

Market). Other members are the Soviet Union, Czechoslovakia, Hungary,

Poland, Romania, and East Germany. Mongolia and Cuba, non-European

countries, joined in June 1962 and July 1972, respectively. Albania

joined in 1949 but withdrew in 1961.

Founded as an outlet for agricultural and industrial products and as a

capital-and-labor market, COMECON, like the Warsaw Pact, binds its

members to each other and all of them to the Soviet Union. Long-term

trade agreements of five years are usually renewable at the end of each

term. It is estimated that 60 to 65 percent of the total foreign trade

of each signatory is carried on with other member countries. One of the

obvious disadvantages of the organization, however, is the absence of a

common market. Trade and commerce between the member countries are

carried out on the basis of preference and within the framework of

bilateral agreements.

Because the loose structure of COMECON does not make for effective

regional planning, member countries such as Bulgaria continue to renew

bilateral trade agreements within COMECON. The Soviet Union remains

Bulgaria's largest foreign market, accounting for more than 50 percent

of Bulgarian trade. Bulgaria also agreed to send Bulgarian workers to

the Soviet Union for heavy industrial projects.

Participation of Bulgaria on a regional level has been confined to a few

projects. Among these are a COMECON electric power grid, which serves

the western Ukraine, especially the city of Kiev; a Romanian-Bulgarian

project to construct a power dam and navigation system for sixty miles

along the Danube River; a system of high-speed expressways to connect

the capital cities of member countries; a project to modernize steel

industries and to reduce production and delivery time; and membership in

the International Bank for Economic Cooperation, headed by a former

deputy chairman of the Soviet State Bank.

United Nations Membership and Participation

Bulgaria became a member of the UN on December 14, 1955. Its delegates

are active in committee work of the UN organs and subsidiary bodies as

well as in deliberations on the floor of the General Assembly. One of

its most important committee assignments is to the so-called First

Committee, which was established as one of the original six committees

under the General Assembly's rules of procedure in 1946. It deals with

political and security matters and was headed by Milko Tarabanov, one of

five Bulgarian delegates to the UN in the session held from September

through December 1972.

Available records of General Assembly activities in 1970 showed active

participation of Bulgaria's delegates in committee work touching on such

matters as the review of administrative tribunal judgments; the question

of defining aggression; the peaceful uses of outer space; the peaceful

uses of the seabed under international waters; and the implementation of

the declaration on the granting of independence to colonial countries

and peoples. Bulgaria was particularly interested in the Caribbean

territories.

As a member of the Committee on Disarmament, Bulgaria, along with

twenty-four other participating states, met in Geneva in 1970. The

committee met to consider the question of cessation of the nuclear arms

race and associated matters, such as the prohibition of emplacing

nuclear arms or other destructive weapons on the seabed. A refinement of

the comprehensive test ban treaty of 1963 extended the prohibition on

arms control to underground testing. Bulgaria, along with other Eastern

European countries, also supported draft proposals of the committee not

to undertake the "development, production, and stockpiling of chemical

and bacteriological weapons" and the consequent "destruction of such

weapons" as well as the prohibition of "biological methods of warfare."

Bulgaria, as a member of the General Assembly's First Committee, also

cosponsored a resolution to secure guarantees that the seabed would be

used only for peaceful means.

In regard to the question of nuclear and thermonuclear testing, Bulgaria

sought the early passage of an agreement to prohibit all nuclear weapons

testing while the Strategic Arms Limitation Talks (SALT) were going on

between the United States and the Soviet Union. Bulgaria also

participated actively in the Committee on the Peaceful Uses of Outer

Space. As a member of a subcommittee's working group, proposals and

working papers were submitted on the question of liability for damage

caused by objects that were launched into outer space. For its part,

Bulgaria sought to clarify the "question of applicable law" and the

"settlement of disputes."

The country was also represented in bodies dealing with economic

questions; questions of development; and social questions involving

housing, building, and planning as well as the promotion of children's

welfare. Additionally, the United Nations Conference on Trade and

Development had Bulgarian delegates in five of its working groups,

dealing with trade and development, commodities, domestic shipping,

international shipping legislation, and the transfer of technology.

Bulgaria is also a member of the Economic Commission for Europe.

CHAPTER 11

MASS COMMUNICATIONS

Since the Communists took over the government in 1944, the mass

communications systems have been perceived as instruments of propaganda

and vehicles for party control. Because of this perception of the

significance of the media, the new government immediately claimed all

mass media as state property.

There is little if any tolerance of the free expression of ideas

throughout the entire mass communications system. Because Bulgaria is

more closely tied to the Soviet Union than most of the other Eastern

European countries, the dictates of Moscow are virtually followed to the

letter in the media. Themes that are initiated in Moscow are reiterated

almost verbatim in Sofia. The major theme of the mass media is respect

for and emulation of the Soviet Union, although recently some social

themes--such as the problems of youth and alcoholism--have been

incorporated as well.

The only sources of information and entertainment permitted to the

people are the domestically controlled mass media. Most Bulgarians

distrust information available to them from these sources but, having no

alternative, continue to use them.

Historically, of all the mass communications systems, the press has

always reached the largest number of people and has traditionally been

viewed by the government as the most effective means of informing the

general public. Although the circulation of the press dropped

drastically in the mid-1940s, it has since the 1960s once again become

the chief instrument of the mass communications system. Radio has

greatly expanded in variety and scope since the 1940s. Television,

although slow to develop and still limited in its audience relative to

other European countries, has been growing rapidly since the early 1960s

and was beginning to experiment with color in the early 1970s.

There has been little change in the Bulgarian publishing industry since

1944. Owing to the government's fear of contamination by the West or

other capitalist societies, there is very little importation of foreign

books into the country. Although books have increased greatly in terms

of sheer numbers of editions, the quantity of book titles has remained

very much the same since World War II.

Libraries range from those under the control of state ministries and

committees to local reading rooms and enterprise libraries. The latter

are generally more widely used by the people.

Since the end of World War II the film industry has grown to a great

extent. Like other instruments of the media, films are chosen for their

propagandistic value; however, since the advent of television, fewer

people have attended films.

BACKGROUND

The press--composed of newspapers and periodicals--was the most

developed of the Bulgarian media in the first half of the twentieth

century. Radio, which was introduced in the 1920s, was under the aegis

of what was then the Ministry of Post, Telegraph, and Telephone. The

production, importation, and sale of radios were unrestricted. The least

developed communications system of the day was the film industry, which

was privately owned and operated. Television was not initiated in the

country until the mid-1950s.

In the years immediately after the takeover, a strong pro-Soviet policy

was established for the media, which was still in effect in 1973. While

the new government restricted individual freedom and initiative within

the media, it demanded total support by the media of all policies of the

Soviet Union. Despite the fact that Bulgaria has never deviated from the

policy of complete commitment to the Soviet Union, after the invasion of

Czechoslovakia various media conferences were held in which calls for

stricter adherence to the Soviet line were sounded.

OBJECTIVES OF MASS COMMUNICATIONS

The government has certain distinct perceptions as to how the media must

serve the state. Propaganda permeates every aspect of life from formal

education to membership in unions and clubs to the publication of books

and pamphlets. The Bulgarian Communist Party (BKP--see Glossary) is the

main political force. It both creates the appropriate condition for the

expression of public opinion and forms public opinion itself.

At a recent conference on the mass communications system, a leading

member of the Central Committee of the Bulgarian Communist Party

delineated the principal tasks of the media. The major task of the media

was "to work for the broadest possible propagation of the congress

decisions and for the mobilization of the people's physical and mental

powers to make their decisions materialize...." The second vital task of

the media was to "help form a socialist outlook on life among the

peoples and educate the new man--active fighter for the developed

socialist society, ideologically convinced, morally durable, physically

tempered, with profound awareness of duty and responsibility." The third

task was to promote the economic awareness of the people and to train

managers, specialists, workers, and farmers for the greater economic

good of the country. The fourth main task was to continue in the active

struggle against "bourgeois ideology ... and the ideological subversion

of imperialism."

A basic tenet of the Bulgarian system, however, is the belief that mass

communications must be actively supplemented by human contact on the

individual level. Iliya Georgiev, secretary of the Varna Okrug Bulgarian

Communist Party Committee, in an article on the political knowledge of

working people in 1972, stated categorically that the interest

stimulated in the people by the mass communications system must be

maintained and extended by informal means of communications, such as

district (_okrug_) seminars, meetings in enterprises and farms,

activities in the trade unions, and the Dimitrov Communist Youth Union

(Dimitrovski Komunisticheski Mladezhki Suyuz--commonly referred to as

the Komsomol).

The government has spent considerable time in assessing the extent to

which these media objectives have been achieved. In the years

immediately following the takeover, the government was consistently

distressed by continued Bulgarian feelings of friendship with the West

and the continual influence of the West upon the country. Although the

propaganda efforts of the communist government were tireless, radio

broadcasts and printed materials from the West continued to pour into

Bulgaria.

As the government's control over both the formal communications media

and the informal means of communications widened, the external threat

was perceived to be less, and governmental attention turned to the

assessment of the relative popularity of the various branches of the

media. In a recent study 3,294 people were questioned as to their

favorite source of domestic and international information. The vast

majority--64.8 percent--of those polled stated that their preferred

source was daily newspapers; 24.6 percent preferred television; and only

2.7 percent preferred radio. Although the newspapers were the favorite

source of information, they were frequently criticized by the people,

who expressed a basic lack of confidence in the press. In a second study

dealing with people's attitudes toward the press alone, 48.1 percent of

the 900 people polled said they disliked the press, and 52.1 percent

complained of the primitive quality of Bulgarian newspapers.

Young people, especially students, appeared to be even less stimulated

by the mass media than their elders. A study performed in the 1969/70

academic year indicated that students were indifferent to both domestic

political events and international developments. The pollsters concluded

that generally Bulgarian students take little advantage of the mass

media as a source of information. Unlike the broad public, whose primary

source of information was the press, students tended to see television

as their preferred source and the press and radio as secondary sources.

FREEDOM OF INFORMATION

The 1947 Constitution, known as the Dimitrov Constitution, established

the stated rights of citizens as well as the nationalization of all

private property, including the mass communications network. Regarding

the so-called freedom of citizens, Article 88 of the 1947 Constitution

claimed: "The citizens of the People's Republic are guaranteed freedom

of the press, of speech, of assembly, of meetings and demonstrations."

At the same time, Article 10 and Article 17 prohibited the unrestricted

freedom of private property and provided for its nationalization under

the authority of the National Assembly. More specifically, Article 80 of

the constitution dealt directly with the system of mass communications:

"The state cares for the development of science and art by establishing

... publishing houses, libraries, theatres, museums, public reading

clubs, ... film studios, [and] cinemas...."

In 1956 the premier of the communist regime, Vulko Chervenkov,

emphasized the ultimate control of the party over all institutions of

the country. He stated: "No institution, organization, or person can be

above the Politburo and the Central Committee ... those guilty of

deviation from the Bolshevik rule must be held responsible and

punished." Under his successor, Todor Zhivkov, a slight liberalization

regarding freedom of the media ensued (see ch. 9). For a brief period

writers and scholars were given greater latitude of expression. When

some writers dared to openly criticize the government, however, Zhivkov

was unable to tolerate this criticism and reimposed restrictions on the

media. The ultimate authority of the party was again made manifest. In

an article in 1969, Georgi Bokov, chief editor of _Rabotnichesko Delo_

and chairman of the Union of Bulgarian Journalists, flatly rejected the

notions of freedom and independence for the mass communications system.

The stated goals of the Union of Bulgarian Journalists in the late 1960s

were "to promote the development of mass information and propaganda

media as first-rate ideological weapons in the struggle for the victory

of socialism and Communism ... the Union must constantly work to turn

the press, radio, and television into effective ideological instruments

for the Party."

In 1971, a new constitution was promulgated, but the basic clauses of

the 1947 document, regarding so-called individual freedoms and state

ownership, remained essentially intact. It was restated in Article 54

that "citizens enjoy freedom of speech, press, meetings, associations

and demonstrations." Article 46 again provided for state development of,

and control over, the mass communications system.

The results of the policy regarding the media are witnessed by numerous

examples of party control and the repression of dissidents. All

newspapers must provide space for the official news of the government,

and all Central Committee directives must be printed without alteration.

No dispatches sent out by the Bulgarian Telegraph Agency (Bulgarska

Telegrafna Agentsiya--BTA)--the official news agency of the

country--are allowed to be revised. No criticism of government policies

is tolerated. Dissident individuals and groups are singled out for

criticism by the Politburo. In 1972 a Politburo member, Todor Pavlov,

accused certain writers of rejecting Socialist Realism in favor of more

bourgeois literature and art. Other writers were criticized for their

so-called subjectivistic interpretation of Bulgarian literature and were

branded as pseudoscientists.

ADMINISTRATION OF THE MASS COMMUNICATIONS SYSTEM

Administrative Units

As the system has evolved, the broad outlines of propaganda have been

dictated from the Politburo, the party's chief policymaking unit. From

there policy is transmitted to the Agitation and Propaganda Department

(Agitprop), which is a major operational unit of the Central Committee.

Agitprop, in turn, is responsible for the transmission of guidelines

down to the lowest levels of party organization. Simultaneously, the

same dictates are transmitted throughout all cultural institutions by

the Ministry of Information and Communications. Under this ministry's

jurisdiction are the arts, the film industry, radiobroadcasting,

television, book and pamphlet publishing, printing, all cultural or

educational institutions, and all so-called independent artists. Still a

third channel for the transmission of the original propaganda are the

mass organizations that function in the propaganda field under direction

of either Agitprop or the Ministry of Information and Communications

(see ch. 9).

The administrative center for all media is Sofia, the capital. Eight

daily newspapers are published in Sofia and distributed throughout the

country; there are also seventeen major publishing houses in Sofia. The

National Film Board, which oversees all aspects of film production, is

in Sofia, as is Radio Sofia, which is the radio station for the entire

country. The Cyril and Methodius Library--also known as the Bulgarian

National Library--is within the confines of the city, as are the Union

of Bulgarian Writers; the Union of Bulgarian Artists; and the Union of

Composers, Musicologists, and Performing Musicians (see ch. 7).

The exportation of propaganda is under the auspices of the Sofia Press

Agency. This agency was founded in 1967 with the express purpose of

disseminating Bulgarian propaganda to other countries. Its three major

tasks are to publicize Bulgaria's achievements and successes actively to

the world; to attempt to counter anti-Bulgarian propaganda; and to

provide the various communist parties of the world with rationale in

their struggles against capitalism.

In 1972 the Sofia Press Agency was in the process of negotiating

agreements with the BTA and the Committee for Television and Radio.

Agreements had already been established with book publishers,

photographic artists, and the film industry. In early 1972 over 500

people--the majority of whom were editors and translators--were working

for the Sofia Press Agency, and contracts had been signed with

approximately 120 foreign countries. Nine magazines, translated into

eleven languages, had been published each year in 2.5 million copies. A

dual language newspaper has been published each year in 500,000 copies,

and 400 books had appeared in approximately 4 million copies. Some

15,000 articles had been written, 30,000 photographs taken, and dozens

of television motion pictures and documentaries had been filmed.

News Agency

The BTA was founded originally in 1898 in Sofia. It is the official news

agency of the country and the sole source of both foreign and domestic

news. It receives most of its foreign items from the Soviet Union news

agency but also maintains exchange agreements with Reuters, Associated

Press, and the Associated Foreign Press as well as a host of lesser

known foreign news agencies, although it tends to be more discriminating

in terms of the items selected from these sources.

In the 1960s the BTA had twenty-three correspondents posted throughout

the nation, as well as foreign correspondents in Moscow, Peking, East

Berlin, Prague, Budapest, Tirana, Belgrade, Ankara, Paris, Bonn, New

York, Vienna, Cairo, and New Delhi. Correspondents are sent on special

assignments to investigate news that is considered to be of interest to

Bulgaria. Domestic news is reproduced in Russian, English, French,

German, and Spanish, and international news is reproduced in Russian,

English, French, German, Spanish, and Italian. In an average day the BTA

receives approximately 800 foreign newspapers, magazines, and bulletins

and itself produces over 125,000 words.

THEMES OF THE MEDIA

The predominant theme of the media remains the expression of friendship

with the Soviet Union. In 1971 a leading member of the party's Central

Committee informed members of the media that one of their primary

functions was to champion the feelings of "fraternal love, trust, and

gratitude" of the Bulgarian people for the "heroic Soviet people," at

the same time demonstrating "clearly and convincingly the unbreakable

ties linking our present and future with the present and future of the

Soviet Union."

A second common theme of the current media deals with the continuing

struggle between so-called bourgeois capitalism and socialism. The

people are, on the one hand, warned of the invidiousness of capitalistic

methods--"The veiled methods of ideological struggle applied on an even

broader scale by contemporary imperialism requires greater vigilance

from us...." On the other hand they are assured that socialism will

ultimately prevail--"their [socialist] ideas make their way with

insuperable force into the minds and hearts of working people all over

the world, gain more and more new adherents, and become a powerful

factor of social progress."

Another dichotomy that the media pose as a continuing theme is that of

religion versus socialism. Bulgarian writers triumphantly proclaim that

"religion as a component of the sociological structure of society for

thousands of years gradually withers away at an even faster pace

throughout the transition from capitalism to communism." Since one of

the major aims of the government is to eliminate religious sentiment

among the people, the public is from time to time assured

that--according to the latest survey--only 35.5 percent of the

population is considered religious or that the "Bulgarian people is one

of the least religious in the world."

Another divisive force that is frequently posed by the media is national

patriotism versus proletarian internationalism. Although

internationalism is viewed as predominant, citizens are warned against

feelings of bourgeois nationalism, since the "unity between

internationalism and patriotism is of a relative character, and there is

always the real possibility of dissension between them; they may even be

placed into a position of mutual opposition." Somehow the conflict,

according to the journal _Filosofska Misal_, is perceived as being

resolved through a higher form of patriotism that is inextricably linked

with love of the Soviet Union. Socialist patriotism is seen as a

"qualitatively new, higher form of patriotism" as expressed in "love and

gratitude toward the Soviet Union and the Communist Party of the Soviet

Union organically linked with love for Bulgaria."

In accordance with the media's constant expression of admiration for,

and solidarity with, the Soviet Union, any issue that raises the

question of conflicting loyalties between the People's Republic of China

(PRC) and the Soviet Union is summarily dismissed with the reiteration

of support for the Soviet Union. One journal warned the people of the

dangers from the left in the form of the people of the PRC as well as

from the right in the form of capitalist societies: "Contrary to all

healthy logic, for years on end, the Chinese leadership has been waging

hostile propaganda campaigns against the Soviet Union ... which are in

no way inferior to the most malicious fabrications of bourgeois

anti-Sovietism."

When the troops of the Soviet Union invaded Czechoslovakia in August

1968, Bulgaria once again rose to the Soviet Union's defense in complete

justification of the invasion. The BTA cited a long list of workers,

peasants, and intellectuals who were allegedly in favor of the action.

Major newspapers such as _Rabotnichesko Delo_ interpreted the event as

symbolic of proletarian internationalism, and _Zemedelsko Zname_ stated

that "it is our supreme duty to resist the common enemy and not to allow

anyone ever to tear away even one link from the chain of the socialist

community." The Czechoslovak uprising itself, as reported by the

Bulgarian press some months later, was interpreted as nationalistic and

counterrevolutionary.

Bulgaria's relationship with the West, as expressed by the media, has

evolved over time from overt hostility to some degree of tolerance. In

1968 the Bulgarian media openly denounced the concept of peaceful

coexistence with the West. By the early 1970s, however, although

citizens were still urged by the media to struggle against bourgeois

capitalism as epitomized by the West, a slight thaw in the cool

relations that had prevailed since the mid-1940s was detected. On the

one hand, all instruments of the media were urged to direct the people

away from foreign influences and to struggle against "bourgeois

ideology, anticommunism, and the ideological subversion of imperialism."

On the other hand, however, Western correspondents in 1973 declared that

Bulgaria was entering a period of greater flexibility with the West.

The last polemical theme of the Bulgarian mass media is known as the

Bulgarian miracle. Although success for the alleged achievement of

Bulgaria's national goals is attributed to correct socialism, the

application of Leninist principles, and the unity of party and people,

the media take every opportunity to stress the achievements of the

Bulgarian state since the advent of communism. One journal stated that

"our country strengthened and matured as a state with a modern socialist

industry, intensive mechanized agriculture, and flourishing national

culture, a state enjoying an indisputable international prestige,

respected as an economic partner and as a factor for the safeguard of

peace."

On the nonpolemical side, the Bulgarian media discuss both Bulgaria's

immediate social problems and issues that affect the world. The issue of

alcoholism is discussed relatively openly and is viewed as an issue of

national concern. Alcoholism is perceived to be related to both the

rising number of divorces and the frequency of crimes (see ch. 5; ch.

15).

Bulgarians also have become involved in the international issue of

pollution of the environment, and the press has given the topic a fair

amount of coverage. The issue has been dealt with on a completely

nonpolemical basis; in fact the brotherhood of all forms of societies is

stressed as the means of combating the problem.

THE PRESS

Newspapers

In 1944, three months after the new government took control, all

newspaper plants were made the property of the state. In the ensuing

year, the government took over the distribution of newsprint, and many

noncommunist editors and Communists were either jailed or executed. By

1945 only eight daily and weekly newspapers were permitted to publish.

Five of them were published under the aegis of a governmental or party

agency. _Rabotnichesko Delo_--which was patterned on the Soviet

_Pravda_--became the organ of the Central Committee, and _Otechestven

Front_--patterned on the Soviet _Isvestia_--became the official organ of

the government. _Izgrev_ was an organ of the Fatherland Front _Zvenos_;

_Narod_ was an instrument of the Fatherland Front (Otechestven Front)

Socialists; and _Narodna Voiska_ was an army organ. _Politika_ was not

directly affiliated with the party but was decidedly pro-Communist (see

ch. 9).

The other two newspapers, both expressing a degree of opposition, were

tolerated only through 1946. These were _Narodno Zemedelsko Zname_, an

organ of the Bulgarian Agrarian Union (Bulgarski Zemedelski Suyuz--BZS)

and _Svoboden Narod_, an organ of the Social Democratic Party. In early

1947, however, they were closed down.

The Fifth Party Congress in 1948, endeavoring to more fully exploit the

potential of the press for propaganda purposes, called upon it to serve

as the "first assistant of the Bulgarian Communist Party, of the

Fatherland Front, and of the government." The primary function of the

printed news media, as stated by that congress, was to mobilize the

working people in terms of their identification with the so-called great

socialist buildup. In the same year the Central Home of Bulgarian

Journalists was established in order to train writers in the correct

propaganda line established by the party. This institution was replaced

in 1955 by the Union of Bulgarian Journalists.

After World War II the national newspapers were generally four pages

long and consisted of news concerning Bulgaria, the Soviet Union, and

other socialist countries; progress reports regarding national economic

plans; foreign news presented with a decided anti-Western bias; and

information regarding cultural events and sports. Cartoons, which

appeared occasionally in the daily and weekly newspapers, were generally

propagandistic and dealt with so-called foreign agents, the bourgeoise,

and other so-called enemies of the people. There was little humor in the

newspapers, as their overall purpose was to portray and defend the

communist system.

The national newspapers were modeled after those of the Soviet Union, in

both style and content. During the 1940s they established ties with the

Soviet news agency, the Chinese Communist news agency, and the news

agencies in other communist countries. All international events--those

dealing with the communist-bloc countries and those dealing with the

West--were integrated through these sources.

While Stalin lived, all of his dictates were followed to the letter,

including the duplication of the Soviet example in the strong verbal

campaign against Yugoslavia. When Nikita Khrushchev succeeded him and

subsequently made some semblance of peace with Yugoslavia, the Bulgarian

press followed suit. Similarly, when the Soviets quickly quelled the

Polish and Hungarian revolts, the Bulgarian press endorsed the Soviet

versions of these events. Strict control over the press was retained in

the early 1970s, and most news still emanated from the Soviet news

agency. Censorship was seldom required, however, since all editors were

by this time acutely aware of their responsibilities to the party.

In contrast to the natural press, the provincial press concentrated on

local matters. It included, in addition to a few regularly published

newspapers, a variety of new types of publications, such as

multicirculators--which were wall posters--and the so-called bumblebees,

which were letters of accusation pointing out alleged failures of

particular individuals to maintain acceptable social standards or to

attain programmed economic goals. In broad terms, all these publications

were designed to indoctrinate specific groups of people, generally in

their places of work. The multicirculators called on workers to support

the economic goals of the government and promised them rewards if they

fulfilled the required objectives (see table 10).

_Table 10. Bulgaria, Newspaper Circulation by Frequency of Issue, 1971_

---------------------------+--------+----------------

Frequency | | Annual

of | | Circulation

Issue | Number | (in thousands)

---------------------------+--------+----------------

Daily | 13 | 611,900

Two to four times per week | 31 | 108,181

Weekly | 58 | 100,880

Less than once per week | 604 | 16,533

| --- | -------

TOTAL | 706 | 837,494

---------------------------+--------+----------------

In the early 1970s the style of Bulgarian newspapers remained

essentially the same as in the mid-1940s. National daily newspapers

ordinarily had four pages, but sometimes had from six to eight pages

when there was vital news to cover. Headlines were often printed in red,

but stories and articles were in black print. Since the late 1960s or

early 1970s advertising increased, and newspapers began to resemble

their Western counterparts to a greater extent.

In 1972 thirteen daily newspapers were published, eight of which were

printed in Sofia. _Rabotnichesko Delo_ was a descendant of the first

workers' newspaper, which was begun in 1897. It led both in importance

and circulation, was the primary organ of the BKP, and set the tone for

all other newspapers in the country. In 1950 it had a daily circulation

of 364,500 copies, and by 1960 its circulation had risen to 567,360. In

1972 this newspaper had a total circulation of approximately 650,000

copies. The second most important daily newspaper published in Sofia

was the _Otechestven Front_, the organ of the government. This

publication was initiated as an underground newspaper in 1942. As of

1972 it claimed a daily circulation of 247,000.

The other Sofia dailies and their circulations were: _Zemedelsko Zname_,

168,000; _Narodna Mladez_, the newspaper for youth, 225,000; _Trud_, the

organ of the trade unions, 200,000; _Narodna Armiya_, an organ of the

Ministry of National Defense, 50,000; _Vecherni Novini_, founded in

1951, an evening newspaper, 40,000; and _Kooperativno Selo_, the organ

of the Ministry of Agriculture and Food Industry, 230,000. The major

provincial dailies were _Otechestven Glas_ (in Plovdiv), _Narodno Delo_

(in Varna), _Chernomorski Front_ (in Burgas), _Dunavska Pravda_ (in

Ruse), and _Pirinsklo Delo_ (in Blagoevgrad) (see table 11).

_Table 11. Bulgaria, Circulation of Newspapers and Periodicals, Selected

Years, 1939-71_

-----------------------+-----------+-----------+-----------+-----------

| 1939 | 1948 | 1960 | 1971

-----------------------+-----------+-----------+-----------+-----------

_Newspapers_: | | | |

Annual circulation* | 130,297 | 345,905 | 602,813 | 837,494

Annual circulation | | | |

per capita | 20.7 | 48.5 | 76.6 | 98.1

_Periodicals_: | | | |

Number | 393 | 246 | 151 | 963

Annual circulation* | 11,208 | 10,421 | 20,923 | 48,605

Average annual | | | |

issues per capita | 1.8 | 1.5 | 2.7 | 5.7

-----------------------+-----------+-----------+-----------+-----------

* In thousands.

Periodicals

By 1971 there were 963 periodicals with an annual circulation of 48.6

million, roughly tripling the pre-World War II figures. Periodicals were

an extremely popular form of reading material.

Among the leading periodicals of Bulgaria are: _Novo Vreme_, a monthly

journal of the Central Committee; _Ikonomicheska Misal_, the organ of

the Institute of Economics of the Bulgarian Academy of Sciences; _Puls_,

a publication of the Central Committee of the Komsomol; _Slavyani_, the

monthly journal of the Slav Committee in Bulgaria; _Bulgarski Voin_, the

monthly journal of the chief political department of the Bulgarian

People's Army (Bulgarska Narodna Armiya); _Resorts_, a bimonthly journal

printed in Russian, French, English, and German; and _Lov i Ribolov_.

RADIO

In 1939 there were three radio stations and over 60,000 subscribers (see

table 12). Approximately one out of every 100 Bulgarian citizens owned a

radio set.

_Table 12. Bulgaria, Number of Radio Stations and Subscribers, Selected

Years, 1939-71_

----------------------------+--------+---------+-----------+-----------

| 1939 | 1948 | 1960 | 1971

----------------------------+--------+---------+-----------+-----------

Radio stations: | | | |

Mediumwave | n.a. | n.a. | 5 | 12

Shortwave | n.a. | n.a. | 2 | 4

Ultra-shortwave | n.a. | n.a. | 0 | 11

Number of radio stations | 3 | 5 | 7 | 27

Number of relay stations | n.a. | 41 | 1,347 | 1,835

Number of radio subscribers | 62,677 | 210,366 | 1,430,653 | 2,304,567

Number of radio receivers | 62,677 | 201,866 | 868,950 | 1,546,163

Subscribers* | 10 | 30 | 182 | 269

----------------------------+--------+---------+-----------+-----------

n.a.--not available.

* Per 1,000 population.

As of March 26, 1948, the state controlled not only the management of

radio stations and the content of radio programs but also the

manufacture, distribution, and sale of radio equipment. The ownership

and operation of radios were subject to the chief directorate of radio

information according to the Law on Radio. Article 15 of this law stated

that private homes could only receive programs of Bulgarian radio

stations. Article 17 of the same law stated that all people wishing to

purchase radios had to receive prior authorization and pay a radio tax.

The ideological purposes of radio broadcasts are presented by the

government in quasi-cold war terms. One radio commentator, Lyuben Popov,

has described the radio as a weapon for waging war on the air. He

explained that "the struggle on the air is becoming sharper and sharper

and more and more uncompromising.... Our propaganda work is part of the

ideological struggle for victory of communist ideas." Radio is perceived

as serving two principal ends. On the domestic level it serves to

provide information as well as propaganda to the public; on the

international level it functions in a purely ideological capacity.

There are twelve mediumwave radio transmitters: two are located in

Pleven; two in Kurdzhali; two in Sofia; and one each in Plovdiv,

Blagoevgrad, Varna, Shumen, Stara Zagora, and Stolnik. There are eleven

ultra-shortwave stations: three are located in Sofia, two in Botev, two

in Slunchev Bryag, two in Kyustendil, one in Snezhinka, and one in

Plovdiv. There are four shortwave radio stations in Bulgaria. Of the

total number of twenty-seven radio stations in the country, six

broadcast in both amplitude modulation (AM) and frequency modulation

(FM); twenty broadcast in AM only; and one located at Botev Peak

broadcasts only in FM.

Bulgarian radio stations are on the air approximately 500 hours per

week. Foreign broadcasts are transmitted approximately twenty-six hours

a day Monday through Saturday and twenty-nine hours on Sunday. These

programs are broadcast in Bulgarian, Turkish, Greek, Serbo-Croat,

French, Italian, German, English, Spanish, and Arabic and are

transmitted to Europe, the Middle East, Africa, North America, and South

America. The number of domestic listeners has approximately doubled over

the 1960-71 period. In mid-1973 over a quarter of the population owned

radio sets.

The leading radio programs are transmitted by Radio Sofia. Radio

Plovdiv, Radio Varna, and Radio Stara Zagora also transmit popular

programs. Radio Rodina is the main station transmitting to Bulgarians

residing abroad. Generally, radio programs consist of news bulletins

dealing with both local and international events; programs for rural

listeners and industrial workers, which deal with industrial,

agricultural, and cultural matters; programs for children, which

complement the formal educational curriculum; literary and cultural

programs; and scientific programs.

In January 1971 Radio Sofia took steps to refurbish its old programming.

Some critics felt that the old programming was lacking in variety,

causing listeners to turn to foreign broadcasts for more enjoyable

entertainment. Others within the medium wanted to have more freedom and

creativity in programming. As a result, in mid-1973 the three main

programs of Radio Sofia had a singular and distinctive character.

"Horizont" provided both general information and popular music. "Christo

Botev" had a more cultural and propagandistic nature, presenting

ideological, literary, and educational programs. "Orfei" was the program

for classical music, which was occasionally supplemented by theatrical

and literary features. The results of these changes have been mixed.

Although some critics felt that the new programs were more lively than

their predecessors, others continued to criticize them for a "dearth of

original thought, a laconic style, and a pompous tone."

Other recent developments in radio have been the establishment of radio

relay ties with nearby countries. These relay ties are expected to

increase Bulgaria's communications with the West while providing her new

partners with access to the East. In July 1972 the construction of radio

lines between Bulgaria and Turkey was completed. In December 1972 plans

for a radio relay line between Sofia and Athens were announced; the line

was to be completed by 1974. This particular line was expected to

provide Greece with access to Eastern Europe and Bulgaria with access to

the Middle East and North Africa.

TELEVISION

Television, like radio, became a state monopoly under the control of the

Ministry of Culture on March 26, 1948, but the first strictly

experimental broadcasts were not undertaken until 1954. It was 1959

before the first regular programming--consisting of two programs per

week--was being broadcast. By 1962 programs had been increased to only

four per week.

The number of television subscribers rose from a mere 2,573 in 1960 to

185,246 in 1965 and to 1.2 million in 1971. These figures meant the

number of sets per 1,000 people were; less than one, in 1960; about

twenty-three, in 1965; and 138, in 1971. During the same period an

increasing number of transmitting stations was making reception possible

in nearly all parts of the country. By 1972 there were twenty-seven

transmitters; the major ones were located at Sofia, Slunchev Bryag,

Botev, Varna, and Kyustendil. In spite of the expansion of the network

and the increasing numbers of sets available, in comparison to other

European countries there were still relatively few television

subscribers per 1,000 of the population.

Three-quarters of the television sets are located in the cities.

Although there is only one major television program, Program I, plans

are underway for the transmission of a second program, Program II. This,

when added to the coverage of Program I, is expected to reach 95 percent

of the population by 1975.

Television is transmitted on a daily basis. The weekly programs run

between 68 and 72 hours. Television time has been apportioned more or

less according to popular taste. Of the total hours, 22 percent of

television time was devoted to documentaries, 15 percent to music, 12

percent to news, 11 percent to programs for children, 10 percent to

language and literature programs, and 8 percent to sports. There were

also special broadcasts to villages and question-and-answer programs in

industrial enterprises and cooperative farms. Unlike the rest of Eastern

Europe, Bulgaria imported very few television films from the United

States.

One of the most recent innovations in television programming was the

transmission of a special program for tourists in 1973. Bulgarian Radio

and Television decided to cooperate with the Committee for Tourism to

promote a 1-1/2-hour program for foreign tourists on the Black Sea

coast. The program, as envisioned in 1973, would consist of local news,

presented on three different channels in Russian, English, and German

respectively; local events; international news; tourist information; and

advertisements.

Future plans for Bulgarian television were outlined in the Sixth Five

Year Plan (1971-75). Although color television programs in the 1970s

were transmitted to Bulgaria from Moscow, Bulgaria's own color

television was to be transmitted in late 1973. Along these lines,

Bulgaria planned to collaborate with Intervision--the Eastern European

television network--in the promotion of color television. In 1972 plans

were also being formulated for the construction of between 250 and 300

relay stations and additional television transmitters.

PUBLISHING

In 1939 there were 2,169 books and pamphlets published in 6.5 million

copies, and in 1948 there were 2,322 books and pamphlets published in

19.9 million copies. By 1960 the number of book and pamphlet titles had

risen to 3,369 in 30.2 million copies, and by 1971 the number of book

and pamphlet titles reached 4,188 in 46.8 million copies.

More recent studies of book and pamphlet publication conducted in 1969

and 1970 indicated that the overwhelming majority of books and pamphlets

were written by Bulgarians. Of the 3,799 books published in 1970, there

were 3,368 by Bulgarian authors. The foreign works during this year were

predominantly in Russian, 131; French, sixty-five; English, sixty-five;

and German, fifty-four. There were few books translated from Spanish and

a sprinkling of translations from other lesser known languages. Of the

translated works most were literary, followed by works dealing with the

social sciences, the applied sciences, the arts, geography and history,

the so-called hard sciences, philosophy, philology, and religion.

A 1971 study illustrates the fact that--in terms of titles alone--books

are more popular than pamphlets by a ratio of approximately three to one

(see table 13). The greatest number of book titles in 1971 were in the

areas of artistic and folkloric literature, technology and industry, and

scientific and educational texts. The smallest number of book titles

were in the areas of general handbooks, community affairs, and atheism

and religion. The greatest number of pamphlet titles, on the other hand,

were in juvenile literature, communist party literature, and science and

education. The fewest pamphlet titles dealt with atheism and religion,

Marxism-Leninism, languages, and labor and trade unions.

Because the Bulgarian publishing industry has emphasized the quantity of

books available in terms of copies rather than variety or number of

titles, there has been some serious criticism of policy, particularly

from the newspapers. In fact, among the Balkan countries, Bulgaria ranks

below Yugoslavia, Romania, and Turkey in the number of titles published

annually. One newspaper claimed that of the total number of books

published in 1972, only approximately one-third were so-called real

books, meaning that they were not simply textbooks or brochures. This

newspaper claimed that foreign literature was not well known in Bulgaria

and pointed out that the literature of Asia, Africa, and South America

had increased by only 470 titles since 1939.

The state not only is in charge of the publishing houses themselves but

also supervises the distribution of books throughout the country.

Editorial councils are the final authorities in determining the output

of individual publishing houses. The one exception to the general

administration of publishing houses is the publication of textbooks. In

this case the Committee on Art and Culture is responsible for the

printing of textbooks, and the Ministry of National Education is, in

turn, responsible for their distribution.

_Table 13. Bulgaria, Book and Pamphlet Publication, 1971_

-------------------------------------+--------------+--------+----------

| Total Number | Book | Pamphlet

Subject of Publication | of Titles | Titles | Titles

-------------------------------------+--------------+--------+----------

Marxism-Leninism | 26 | 23 | 3

Communist party | 270 | 158 | 112

Socialist and communist construction | 181 | 97 | 84

Foreign policy and economics | 94 | 74 | 20

Philosophy | 70 | 52 | 18

History | 147 | 121 | 26

Economics | 29 | 21 | 8

Production | 90 | 82 | 8

Finance | 15 | 11 | 4

Labor and trade unions | 55 | 39 | 16

Legal and constitutional system | 73 | 53 | 20

Military policy | 38 | 28 | 10

Natural science and mathematics | 261 | 225 | 36

Technology and industry | 490 | 415 | 75

Agriculture and cooperatives | 284 | 214 | 70

Trade and nutrition | 51 | 37 | 14

Transportation and communications | 75 | 64 | 11

Community affairs | 4 | 4 | ...

Health | 215 | 157 | 58

Physical education and sports | 72 | 53 | 19

Scientific and educational texts | 397 | 301 | 96

Literary criticism | 133 | 55 | 78

Art | 152 | 118 | 34

Languages | 70 | 66 | 4

Artistic and folkloric literature | 609 | 534 | 75

Juvenile literature | 277 | 146 | 131

Atheism and religion | 8 | 7 | 1

General handbooks | 2 | 2 | ...

| ----- | ----- | -----

TOTAL | 4,188 | 3,157 | 1,031

-------------------------------------+--------------+--------+--------

The party is the final arbiter regarding the acceptability of work for

publication. All party control, however, is theoretically unofficial;

censorship exists only in the sense that all power of decision regarding

publication is in the hands of party members. The official process for

publication is that the writer submits his work to the publishing house.

The publishing house then sends it, with a brief description of its

ideological content, to the Committee on Art and Culture. If the book is

approved at this stage, it is returned to the publishing house, where it

is again checked for its ideological content.

The major criterion for acceptance is the ideological soundness of the

work in question. According to a refugee playwright from Bulgaria, "The

journalist must praise the party, and government, and criticize the

West. The poet, the playwright, the novelist must uphold the communist

ideal." Since the works of leading Communists are almost always accepted

for publication, one writer has stated; "In Bulgaria dead communist

heroes are the safest bet."

The government is actively engaged in attempting to promote Bulgarian

books abroad. In the late 1960s and early 1970s books by native

authors--although in relatively small numbers--were published in such

diverse countries as Great Britain, Japan, France, Turkey, Italy, Iran,

Austria, Argentina, and Finland. According to the latest available

source on the promotion of Bulgarian books abroad, plans also have been

formulated for the publication of books in the United States, Belgium,

Brazil, and Syria.

One of the most serious problems in the publishing industry, other than

the broad issue of freedom of expression of the writers, is that of a

shortage of textbooks. In 1970 the Committee for State Control

discovered that courses in 1,013 subjects at the university level had no

textbooks whatsoever. In the University of Sofia alone, where

approximately 317 subjects were taught, textbooks existed for only 216

of these subjects; roughly half of the books for the 216 subjects that

used textbooks were out of print.

LIBRARIES

When the Communists took power in 1944, they began to allocate

relatively large sums of money to develop new libraries in both large

cities and small villages. By 1971 the country had over 10,000

libraries, whose collections numbered nearly 50 million volumes (see

table 14).

The Committee on Art and Culture maintained a number of libraries,

including the country's largest, the Bulgarian National Library. Founded

in 1878 in Sofia, it contained 814,000 works in 1971, including about

13,000 old and rare volumes, approximately 17,000 graphic works, and

some 20,000 photographs and portraits. The library published both a

yearbook and a monthly periodical.

The committee maintained two other libraries. One was the Ivan Vazov

State Library, situated in Plovdiv, whose collection included a wide

variety of periodicals, old and rare books, and archives. The other

library under the committee was the Elin Pelin Bulgarian Bibliographical

Institute, which maintained a record of all printed works in the country

and published a monthly bulletin listing all of its publications, an

annual yearbook, and a monthly list of all articles published in reviews

and journals.

In addition there were research-related libraries maintained by the

Academy of Sciences; public school libraries; university libraries;

libraries organized in state plants, factories, and cooperative farms;

regional libraries; and local libraries.

The major regional libraries were located in Burgas, Ruse, Stara Zagora,

Shumen, Varna, Velsko, and Turnovo. The best known local library was the

City Library of Sofia, which contained about 452,862 volumes.

_Table 14. Libraries in Bulgaria, 1971_

---------------------+---------------------------------------------

| Number

Kind of Library |-----------+--------+----------+-------------

| Libraries | Books* | Readers* | Books Lent*

---------------------+-----------+--------+----------+-------------

National | 1 | 814 | 25 | 189

Local | 27 | 5,287 | 259 | 4,807

Reading rooms | 4,108 | 20,387 | 1,359 | 20,744

Enterprises and | | | |

government offices | 2,110 | 6,532 | 537 | 4,984

Public schools | 3,860 | 9,336 | 772 | 6,653

Universities | 23 | 2,077 | 84 | 1,320

Specialized: | | | |

Science | 115 | 1,409 | 29 | 507

Government | 35 | 594 | 16 | 282

Party and public | | | |

organizations | 93 | 804 | 39 | 280

Technical | 212 | 864 | 54 | 398

Medical | 60 | 405 | 36 | 361

Theaters | | | |

(archives) | 133 | 443 | 6 | 34

Educational | 14 | 152 | 8 | 57

| ------ | ------ | ----- | ------

Total specialized | 662 | 4,671 | 188 | 1,919

| ------ | ------ | ----- | ------

TOTAL | 10,791 | 49,104 | 3,224 | 40,616

---------------------+-----------+--------+----------+-------------

* In thousands.

The so-called public reading room was another form of library. Founded

by educated Bulgarians during the Turkish occupation as centers of

culture and education, the reading rooms have become quite widespread,

particularly in the villages, and supply books to farmworkers and other

members of the rural population. In the early 1970s there were 4,108

reading rooms with over 20 million volumes.

FILMS

By 1947, after the new constitution had been enacted, the film industry

became a state monopoly. The next year the new Law on Motion Pictures

was passed, which essentially expanded on the theme of state control. It

officially abolished free enterprise in the film industry and prohibited

individual activities in the importation and exportation of films and

the private operation of movie theaters. The film industry fell under

the official control of the Bulgarian Cinematography Association, which

was under the Department of Motion Pictures of the Committee for

Science, Art, and Culture. By 1950 the entire film industry was under

the complete control of the Council of Ministers. The Department of

Motion Pictures became officially attached to the council.

One of the early laws regarding films stated that "the motion picture

must become a real fighting assistant of the party and the government

and be an ardent agitator and propagator of the government policy." The

focus of the industry was to be placed on the building of socialism

while increasing the country's bonds with the Soviet Union. Early

legislation stated that "Soviet films gave immense educational influence

and mobilized action and conscious participation in the building of

socialism for still greater friendship with the Soviet Union." This

emphasis on the relationship with the Soviet Union was not only

ideological. Soviet films also represented approximately 87 percent of

the films shown in Bulgaria from 1945 to 1956, and the Bulgarian film

industry was in large part assisted by its film counterpart in the

Soviet Union.

The film industry expanded quickly under the new government. There were

187 films produced in 1960 (see table 15). By 1965 there were

approximately 2,000 motion picture houses, roughly 83 percent of which

were in the villages.

_Table 15. Bulgaria, Films Produced and Translated, Selected Years,

1939-71_

-------------------------+--------+--------+--------+--------

| 1939 | 1948 | 1960 | 1971

-------------------------+--------+--------+--------+--------

Full length | 3 | ... | 11 | 18

Art | (3) | ... | (10) | (16)

Documentary | ... | ... | (1) | (2)

Television | 0 | 0 | 0 | 19

Short and medium length | ... | 19 | 110 | 252

Documentary | ... | (15) | (36) | (60)

Popular science | ... | (4) | (32) | (61)

Technical education | ... | ... | (16) | (21)

Animated | ... | ... | (8) | (16)

Propaganda | ... | ... | (18) | (94)

Previews | ... | 53 | 66 | 58

| --- | --- | --- | ---

TOTAL | 3 | 72 | 187 | 347

-------------------------+--------+--------+--------+-------

In mid-1973 information on the film industry indicated that the

production, distribution, importation, exportation, and exhibition of

films were still controlled by the Bulgarian Cinematography Association.

This agency was subdivided into three sections: the chief studio at the

Bulyana film center where feature films and cartoons were produced; a

second studio that produced documentary shorts and popular science films

for schools; and a third studio that specialized in newsreels.

Relative to other European countries there was little importation or

exportation of films. In mid-1973 data suggested that between 100 and

150 feature films were imported per year. These films generally came

from the Soviet Union and other Eastern European countries, although a

few were imported from Italy, France, and Great Britain. The first

Bulgarian film to be exported was _The Chain_, which was shown in

Czechoslovakia in 1964. The same year another Bulgarian film, _The

Intransigents_, was shown in Ireland, and still another, _The Peach

Thief_, was shown in Great Britain. The precise number of Bulgarian

films exported was unknown, although one writer claimed that in 1973

Bulgarian films were viewed in about seventy countries.

In mid-1973 the subject matter of Bulgarian films was characteristically

contemporary, and there was little focus on historical events. Although

a few historical films had been produced, they were in the minority. A

few films had dealt with the subject of Bulgarian resistance to the

Nazis, but they too were relatively scarce. More films were devoted to

the so-called people's heroic struggles. Most films in Bulgaria,

however, dealt with contemporary life in the country and current events.

The overwhelming majority of these films treated the conflicts and

issues of Bulgarian youth.

SECTION III. ECONOMIC

CHAPTER 12

CHARACTER AND STRUCTURE OF THE ECONOMY

Under comprehensive control of the Bulgarian Communist Party (BKP--see

Glossary), the economy was severely strained in mid-1973 as the result

of the dual task imposed upon it by the BKP leadership to increase

productivity rapidly and substantially and to provide a growing volume

of consumer goods and services under a newly announced program for

raising the population's low standard of living. A first step in

improving the living standard took the form of an upward adjustment in

the lowest wage brackets and a broadening of social security provisions.

Further improvements, however, were made conditional upon attainment of

the productivity and production goals.

The development of the economy and of the consumer program faced severe

limitations because of the inadequacy of domestic resources, including

basic raw materials, fuels and power, skilled workers, and trained

professional personnel. Economic development was heavily dependent on

financial and technical aid from the Soviet Union, and dependence upon

that country was to be increased in the 1971-75 period. Efforts to

overcome persistent and growth-retarding difficulties in the economy led

to frequent organizational and procedural changes in the economic

mechanism, the structure of which in mid-1973 was still in flux as a

result of decisions taken by the BKP in 1965 and in 1968.

The main trend in reshaping the organization and management of the

economy was one of concentration and centralization--a trend that led to

the creation of huge trusts in industry and distribution and of vast

agroindustrial complexes in agriculture. In the process, divisions and

lines of authority were blurred, and violations of government directives

were frequent because of their complexity and the constraints they

placed on the day-to-day operation of economic enterprises.

In the search for a more efficient organization and management pattern,

heavy reliance was placed on the introduction of complex automation into

all economic processes with the aid of a nationwide computer network--a

system of automation that would extend from the highest levels of

national economic planning down to the individual factory shop and cow

barn. No ideas have been advanced, however, on how complex automation

would solve the basic problem of the economy--the widely acknowledged

and pervasive lack of incentives to work. The methods used to grapple

with this problem were limited to a tinkering with the wage and bonus

system, administrative sanctions, political indoctrination, and

exhortations.

ORGANIZATION

State ownership of the means of production predominates in the economy.

Collective ownership has prevailed in agriculture, but it may be

gradually eliminated in the course of the agricultural reorganization

initiated in 1970 (see ch. 13). Private ownership of productive

resources is limited to subsidiary farm or garden enterprises of

collective farmers, industrial and state farmworkers, and artisans; a

small number of individual farms on marginal lands; and noncollectivized

artisan shops. In 1971 private ownership encompassed about 10 percent of

the agricultural land but only 2.5 percent of the fixed assets used in

production. Private ownership of personal property and homes is allowed.

The proportions of national income (net material product) generated in

each of the ownership sectors in 1971 were: state, 70 percent;

collective, 21 percent; and private, 9 percent. The importance of

private enterprise in the production of food, however, is much greater

than its contribution to the national income may suggest. The private

sector has provided more than one-fifth of the crop output and one-third

of the livestock production (see ch. 13).

Whereas the leadership has promoted livestock production on private farm

plots, since 1968 it has placed increasingly severe restrictions on the

activities of private artisans, who had originally been encouraged to

expand their operations through liberal regulations issued in 1965.

Aside from providing essential services, private artisans played an

important role in supplying a variety of consumer goods for the

population. The restrictions on artisans' activities have been based on

the BKP tenet that private ownership of means of production and the use

of personal property to acquire unearned income are incompatible with

the socialist order and the country's new constitution.

Economic activities are centrally planned and directed along lines

prescribed by the BKP. The functions of planning and control are

exercised by the Council of Ministers with the aid of specialized

economic ministries, such as the Ministry of Finance, the Ministry of

Chemical Industry and Power Generation, and the Ministry of Foreign

Trade, and of various governmental committees and commissions (see ch.

8). The state banking system and, more particularly, bank credit have

also served as tools for the control of enterprises and trusts.

The economic management structure has been subject to frequent changes.

In the spring of 1972 there were fourteen economic ministries, including

five ministries exclusively concerned with branches of industry and

construction. The Ministry of Agriculture and the Food Industry, as its

name implies, has functioned in two major economic sectors and has also

had substantial responsibilities in the field of distribution. Among the

committees and commissions the most important have been the State

Planning Committee, the Committee on Prices, and the Commission for

Economic and Scientific-Technical Cooperation. In December 1972 the

Commission on the Living Standard was created to coordinate and control

the fulfillment of the national living standard program decided upon by

the plenum of the Central Committee of the Bulgarian Communist Party.

Attached to the Council of Ministers and chaired by a deputy minister,

the commission is composed of ministers and deputy ministers,

representatives of public organizations, scientists, and other members.

Since the beginning of 1971 economic management has been more highly

centralized than before. A plan for partial decentralization of economic

decision making adopted in 1965 was abandoned by 1968. The economy is

organized into trusts (officially known as state economic associations)

that unite enterprises within branches of economic sectors along

functional lines, such as metallurgy, textiles, food processing,

railroads, freight forwarding, tourism, wholesale distribution,

publishing, and filmmaking. In agriculture, trusts are known as

agroindustrial complexes; each complex unites several previously

independent farms (see ch. 13). Trusts are subordinated to economic

ministries and are ultimately responsible to the Council of Ministers.

The extent of the ministries' authority over trusts is not clear. In

some important respects trusts receive instructions directly from the

Council of Ministers.

Agroindustrial trusts number 170. In the nonagricultural sector about

sixty-two trusts were originally created, with an average of thirty

branches but as many as 106 in one instance. The process of

concentration and centralization continued on a small scale at least

until the spring of 1973, in part through the consolidation of separate

trusts. Before the reorganization, trust branches had been legally and

financially independent enterprises, and trusts served only as

administrative links between enterprises and ministries. Whereas

individual enterprises were previously regarded as the basic economic

units in the country, it is the trusts that have been officially

considered as such under the new system of management.

Trusts have assumed various functions previously performed by the

enterprises themselves. They formulate economic and technological

development policies for the trust as a whole and for each branch;

establish relations with suppliers, distributors, and financial

institutions; and centralize research and development. Trusts have also

been charged with responsibility for providing operational guidance to

their branches and for organizing the export of products that they

manufacture. Branches remain responsible for the effective organization

of operations, efficient uses of resources, and the conscientious

fulfillment of tasks assigned to them by the annual plan.

Regulations governing the authority of trusts over their branches were

intended to permit the establishment of flexible internal management

organizations adapted to the particular needs of each trust. The trusts'

policies were expected to be based on the rule that whatever the trust

could do better than the branches should be centralized in it and,

conversely, whatever the branches could do better than the trust should

be left in their field of competence. Each trust was supposed to arrive

at an optimal combination of management centralization and

decentralization.

The transition to the new management system involved difficulties

because of delays in issuing pertinent regulations, misinterpretation of

the regulations by trust managers, and the reluctance of enterprise

managers to acquiesce in the loss of their independence. Most of the

organizational and personnel problems were reported to have been

resolved by the end of 1971, and in March 1973 party chief Todor Zhivkov

reported that further consolidation of the new management structure had

been achieved. In the long run, greater efficiency of economic

management is to be attained through pervasive automation of all

management functions with the aid of a synchronized national network of

electronic computers.

Under the new system of trusts, profits of individual branches are

pooled and redistributed by the parent organization. Highly productive

branches may thus find themselves in the position of having to share

their profits with unproductive branches. This feature, some observers

believe, may reduce incentives to raise the level of efficiency,

increase output, and improve the quality of products.

STRUCTURE AND GROWTH

National income (net national product, which excludes most services not

directly related to production) was officially reported to have been

10.41 billion leva (for value of the lev--see Glossary) in 1971,

compared to 10.53 billion leva in 1970. Nevertheless, the official index

of national income growth showed an increase of 7 percent from 1970 to

1971. This example illustrates the difficulty of using official

statistics to describe the structure and growth of the economy or

structural changes over a period of time.

According to the 1971 statistical yearbook for Bulgaria, the respective

shares of industry and agriculture in national income in 1970 were 49

and 22 percent. The yearbook issued in 1972, however, cited 1970 figures

of 55 and 17 percent instead. According to the earlier source, the

proportion of national income contributed by industry increased by 6.5

percent in the 1960-70 period, whereas the subsequent source shows a

growth of 17 percent for the same period. Similarly, the contribution of

agriculture to national income was reported to have declined by 36.4 and

by 33.3 percent. An upward trend in the contribution of trade to

national income was shown in the earlier source, but a declining trend

appeared in the latter.

The differences in statistical presentation resulted primarily from a

major revision of wholesale prices, introduced by the government in

January 1971. Price revisions made in earlier years, changes in the

composition of individual statistical categories and other

methodological modifications also contributed to the inconsistency of

statistical time series in value terms. Because of differences in

concept and coverage, Bulgarian national account data are not comparable

with those of the United Nations or the United States systems of

national accounts.

In the 1960-71 period national income at prices of 1957 was reported to

have increased 2.25 times, which is equivalent to an average annual 7.7

percent rate of growth. The growth of national income was more rapid in

the years 1966 through 1971 than it had been in the 1960-65 period. The

official national income index implies an average annual increase of 8.5

percent in the latter period, compared to 6.7 percent in the earlier

years. Reliable data on the growth of Bulgarian national income in

Western terms are not available. Relatively high rates of economic

growth are generally associated with early stages of industrial

development.

In 1971 industry still lagged behind agriculture in terms of employment,

although the proportion of the labor force employed in industry had been

steadily rising, while employment in agriculture had been declining. In

the 1960-71 period employment in industry rose from 21.9 to 31.2 percent

of the labor force, and employment in agriculture declined from 54.7 to

33.4 percent of the total. During the same period employment in the

services sector increased from 9.2 to 13.4 percent of the labor force,

and gains in employment were made in all other economic sectors except

forestry, including construction, transportation and communications, and

trade.

LABOR

Growth and productivity of the economy have been adversely affected by

shortages of skilled labor and of adequately trained and experienced

technical and executive personnel. In the words of the minister of labor

and social welfare, the level of worker's current training is

inconsistent with the country's industrial base; it lags behind the

requirements of the scientific and technical revolution. The lack of

required skills has contributed to frequent machinery breakdowns and to

the output of low-quality products. As a means of upgrading the skills

of workers and executives, a broad program for training and retraining

was launched in October 1972 with the cooperation of the Ministry of

National Education. About half the number of persons undergoing training

were below the age of thirty.

Other persistent shortcomings in the field of labor that have plagued

the economy and have been the target of frequent criticism and

administrative action by the leadership are inefficient organization of

labor and poor labor discipline. Inefficient labor organization has been

mainly an outgrowth of inferior management skills. Poor labor discipline

has been a consequence of inadequate work incentives. In 1972 the

minister of labor and social welfare estimated that more than 20 percent

of the working time was lost through idling and other violations of

labor discipline.

Adequate information on the structure of wages was not available in

mid-1973. The main faults of the wage system that prevailed in early

1973 after repeated revisions, however, were outlined by the BKP leader,

Zhivkov, and these faults were also discussed by labor ministry

officials from the point of view of their effect on labor productivity.

The basic wage constitutes the main incentive for work; bonuses,

premiums, and honors play a minor role. Because of the large investment

needs for industrial development and the corollary need to restrict

consumption, wages have been kept low, and the rise in wages has been

slower than the growth of productivity.

Basic wage pay has been based on the place of employment and not on the

work performed. Wage scales for identical work have differed

substantially between branches of the economy and industry. In industry,

wage scales have been lower in branches manufacturing consumer goods

than in branches producing capital goods; they have been lowest in

textile mills. Wages have been determined by job classifications within

economic and industrial branches, the workers' level of education, and

length of service. Normal increases in pay for workers remaining in the

same positions have therefore been infrequent.

Slow promotion and the disparity in wage scales contributed to excessive

labor turnover because, under the prevailing conditions of scarcity,

trained workers were able to improve their incomes through a change of

jobs. It also led to irregularities in job reclassification by employers

seeking to retain their workers through increases in pay. Wages have

been raised from time to time by the government through general upward

revisions of pay scales. This method, however, has no incentive value

because it is not directly linked to an improvement in the workers'

performance.

With a view to enhancing the stimulative effect of wages on

productivity, Zhivkov proposed a basic reform of the wage system that

would be carried out gradually in the 1973-80 period. In presenting his

proposal to the BKP Central Committee plenum, Zhivkov dwelt on some of

the major principles to be embodied in the new wage system. The minimum

wage must be higher, and the rise in wages must be more rapid than

before. Increases in basic wages must be closely linked to individual

performance and to overall labor productivity in general, pay would be

based on performance rather than on formal qualification or length of

service. To this end the sectoral approach to wage determination is to

be abandoned in favor of a functional approach that would establish a

uniform economy-wide wage scale for jobs in relation to their complexity

and hardship and to the specific conditions of work. Rigid pay scales

are to be replaced by flexible schedules providing a range of pay for

each job depending upon the ability and performance of the worker.

The reform would also gradually eliminate the egalitarian aspect of the

current wage system by providing appropriate differentials for workers

with higher qualifications. Under the current system, for example, the

salary of economists has been below that of engineers, and the salary of

engineers has been equivalent to the wages of skilled workers. This

problem has been repeatedly considered in the past, but its solution was

delayed for lack of funds.

Zhivkov also cited shortcomings of the prevailing piecework system and

suggested some long-range remedies for the ills. About 60 percent of all

workers have been employed on the piecework system. Production norms

under the system have been low because of technological advances and the

infrequency of adjustment of norms. Under these conditions workers have

been able to exceed the basic norms to such an extent that payment for

work above the norm has become a large, and in some cases the

predominant, portion of the workers' earnings. Striving to increase

their wages, workers under the piecework system have often resorted to

shortcuts that have lowered the quality of output.

Zhivkov's proposal for improvement included the introduction of more

realistic and more flexible quantitative and qualitative production

norms and a gradual transition to hourly rates of pay with bonus

payments for superior work whenever the quantity and quality of output

is not directly dependent on individual workers. Under these conditions

bonus payments would be linked to the performance of the entire working

personnel, and the importance of the bonus in wage payments would be

enhanced.

The wage reform has been discussed in the context of a broad program,

announced by the BKP Central Committee plenum in December 1972, for a

general rise in incomes and an improvement in the population's level of

living. In the process the difference between urban and lagging rural

incomes is to be eliminated. Implementation of the program has been made

contingent upon the attainment of greater productivity and output

through workers' efforts to surpass production and efficiency targets

set by the government. These more difficult targets must be embodied in

what have been officially labeled workers' counterplans. The BKP and

the government have launched a new form of so-called socialist

competition among workers and economic units, the aim of which is to

exceed in performance the requirements of the counterplans.

Implementation of the standard of living program began with the

introduction of wage increases, effective March 1, 1973, for workers

employed under difficult or hazardous conditions, schoolteachers and

university faculties, physicians and medical personnel, and employees of

artistic and cultural institutions. Effective June 1 the minimum wage

for all types of work was raised from 65 to 80 leva per month, and a

level of 88 leva per month was decreed for all workers earning between

80 and 87 leva. The resultant distortion of the wage structure is to be

eliminated over a period of several years.

Another important measure affecting labor was announced in March 1973--a

gradual transition from a six-day, forty-six-hour workweek to a five-day

week of forty-two and a half hours. Under the BKP directive the

transition must be accomplished without loss in production; the loss in

worktime must be compensated by a corresponding rise in productivity.

The shorter workweek had been in effect on an experimental basis for

about 17 percent of the industrial workers since 1968. In 1973 and 1974

it was to be introduced in enterprises of the material production

sector, excluding agriculture, provided that the required rise in

productivity has been assured. In 1975 the reduced workweek will be

introduced in transport, for management of state economic enterprises,

and for persons employed in the field of services other than health

services and educational institutions. Preparations for experiments with

a shortened workweek in these two areas and in agriculture are to be

undertaken in 1974 and 1975. The decree on working hours gave formal

approval to an established practice that requires workers to make up by

work on Saturdays or Sundays for worktime lost whenever official

holidays fall on weekdays.

INVESTMENT

The proportion of national income devoted annually to capital formation

(net investment) rose steadily from 22.6 percent in 1961 to 35.4 percent

in 1966 and 1967 and declined thereafter progressively to 26.8 percent

in 1971. In absolute terms annual capital formation increased from 1.06

billion leva in 1961 to 3.06 billion leva in 1970, then declined to 2.74

billion leva in 1971. More than half the net addition to capital (from

46 to 67 percent annually) consisted of fixed assets; the balance

represented equipment and inventories.

Gross investment at current prices increased from 1.4 billion leva in

1961 to 3.6 billion leva in 1971; investment was officially estimated at

3.9 billion leva in 1972 and was scheduled to reach 4.3 billion leva in

1973. The bulk of investment has been channeled into the material

production sector (including trade). The annual investment share of

this sector increased from about 74 percent in 1960 to 79 percent in

1969 and declined to 76 percent in 1971. The proportion of investment

devoted to housing and services declined correspondingly in the 1960-69

period from 26 to 21 percent and rose in the subsequent two years to 24

percent. The shift in the investment trend foreshadowed the formal

directive issued by the Tenth Party Congress in April 1971 for the

development of a program to raise the population's standard of living.

Industry has been the main beneficiary of investment funds; its share

rose to almost 50 percent in 1969 but declined slightly thereafter.

Agriculture received only about 15 percent of investment in the years

1969 through 1971, compared to 28 percent in 1960 and 19 percent in

1965. Residential investment declined from 14 percent in 1960 to an

average of not quite 10 percent in the 1969-71 period.

Building construction and installation work absorbed the largest, though

declining, share of investment--60 percent in 1960 and 46.4 percent in

1971. The share of investment spent on machinery and equipment rose by

50 percent in the 1960-69 period from 26 to 39 percent, but declined to

34 percent in 1970 and 37 percent in 1971. Imported machinery, mostly

from the Soviet Union, constituted a major though declining proportion

of investment in machinery--from two-thirds to one-half of the total in

the 1965-71 period. Other investment expenses, including geological

surveys, absorbed from 12 to 17 percent of annual investment.

New investment has been increasingly concentrated in state enterprises.

In the 1960-71 period the proportion of investment absorbed by state

enterprises increased from 68 to 83 percent, while the share of

investment devoted to collective farms declined from 18 to 8.5 percent.

Annual investment in artisans' collectives rose from 1.2 percent of

total investment in 1960 to 2.7 percent in 1968 and declined to 1.1

percent in 1971. This trend paralleled the government's policy of

initial encouragement and subsequent restriction of private artisan

activities; it suggests that the government's restrictive policy may not

have been limited to private artisans alone (see Organization, this

ch.).

Private investment in residential construction declined from 12.7

percent of annual investment in 1960 to 6.5 percent in 1970 but rose to

7.2 percent in 1971. In absolute terms private investment increased from

about 174 million leva to 262 million leva. By 1973, however, new

restrictions were being introduced on housing construction by private

individuals. As much as 90 percent of the residential construction in

1960 and 70 percent in 1971 was privately financed. In the 1968-70

period about half the private investment in housing was supported by

bank loans or by loans from special funds of employing organizations.

The rise in the volume of capital per worker in the 1960-70 period as a

result of the investment activity did not produce a corresponding

increase in labor productivity; that is, the efficiency of investment

declined. Whereas the amount of fixed capital per worker in the sphere

of material production increased at an average annual rate of 10.4

percent, and the volume of machinery and inventories rose by 12.5

percent per year, output per worker increased at an annual rate of only

7.7 percent. In an effort to increase the efficiency of investment, the

Tenth Party Congress, convened in the spring of 1971, directed that 35

percent of new investment in the sphere of material production during

the 1971-75 period should be used for the reconstruction and

modernization of existing facilities. In 1972, however, the proportion

of investment used for this purpose was only 18 percent.

In the context of the eventually abandoned program for economic

decentralization, provision was made for reducing the role of the

central government budget in financing investments and for increasing

participation by investors with their own funds and bank credits. In the

sphere of material production, excluding trade, budgetary allocations in

1965 accounted for 55 percent of investment, and bank credits made up 7

percent; in 1969 investment funds from these sources constituted 21 and

32 percent, respectively. The contribution from the budget, however,

rose again after 1969 to 28 percent in 1971, whereas bank credits

declined to less than 20 percent of the investment funds. The share of

investors' own resources, including funds of local governments,

increased from 36 percent in 1965 to 52 percent in 1971. Budgetary

investment funds are being increasingly concentrated on projects in the

fields of services and raw materials production.

A satisfactory explanation of the shifts in the pattern of investment

financing is not feasible in the absence of adequate information on the

changing methods of financing economic enterprises and organizations.

The announced government policy is to shift financing progressively from

the budget to the economic trusts. The shifts did not alter the

fundamental fact that all investment funds, excluding the small private

investment, remained public property subject to governmental controls

and that the difference was merely one of bookkeeping. The change in the

channeling of public investment funds was introduced in the hope of

increasing the effectiveness of their use.

The realization of major investment projects, particularly in industry,

has been made possible by very substantial technical and material

assistance from the Soviet Union. Nevertheless, serious shortcomings

have been officially reported in the implementation of investment

programs, both in industrial and in residential construction. The main

problem has been posed by the initiation of building programs that

exceed the capacity of the construction industry and the consequent

scattering of limited resources. The situation has been aggravated by

frequently poor project planning, inferior design, delays in the

delivery of machinery and materials, poor organization of work, and

slack discipline.

As a result of the difficulties in construction, the completion and

commissioning of new industrial plants has often been delayed, and

housing construction has fallen chronically short of the volume

planned--by as much as 25 percent in 1972. The consequent failure of the

anticipated output from new plants to materialize created shortages in

various areas, thereby affecting production and market supplies

adversely and necessitating revisions of the economic plans. In an

effort to minimize these difficulties, the government adopted various

administrative measures in 1971 and 1972, including the formulation of a

list of nationally important construction projects, direct supervision

of which was assumed by the Council of Ministers. The number of projects

included in the list for 1972 was variously reported as thirty-five and

thirty-nine out of a total of more than 3,000 projects. The listed

projects consisted mainly of plants for the production of industrial

materials.

BUDGET

The budget constitutes the basic financial plan of the country's

leadership. It is the monetary expression of the annual socioeconomic

plan and provides for the financial flows implicit in that plan. The

budget is comprehensive; it takes into account all aspects of the

economic, social, and cultural activities of the country. In line with

the government's policy of gradually placing economic trusts and their

branches on a self-financing basis, a progressively larger share of the

funds budgeted for the economy is being retained by the trusts rather

than channeled to the budget. The sums thus retained by economic

organization rose from about 3 billion leva in 1971 to a planned level

of more than 5 billion leva in 1973. Ultimate control over the use of

these funds, nevertheless, remains with the government, and their

disposition is subject to the provisions of the budget.

The national budget is formulated by the Ministry of Finance along lines

dictated by the BKP leadership and must be approved by the National

Assembly. As a rule only very minor modifications are made in the

process of legislative review. Budgets for local governments are

prepared as a part of the national budget; in 1972 and 1973 their total

amount was equivalent to about 17 percent of the overall national

budget. The Ministry of Finance is also responsible for ensuring the

scrupulous implementation of the budget. It is assisted in this task by

a nationwide network of state and local inspectors and by agents of the

banks. Actual budgetary results are directly affected by deviations from

the annual economic plan and therefore seldom, if ever, correspond to

the original estimates, which have the force of law.

Systematic publication of budgetary data was discontinued in the

mid-1960s. Since then only scattered figures have become available

through press reports on the presentation of the budget to the National

Assembly and occasional articles by the minister of finance or other

ministry officials.

The annual budgets have grown steadily larger. The approved budget for

1973 called for revenues of 7,057 million leva and expenditures of 7,035

million leva. In 1970 actual revenues totaled 5,723 million leva, the

expenditures amounted to 5,650 million leva. Usually about 90 percent of

budgetary revenue has been derived from operations of the economy, and

the remainder has been raised through a variety of levies on the

population. The largest single item of revenue--more than 30 percent of

the total--has been collected in the form of a turnover tax on sales

that has been passed on to the ultimate consumer. The second most

important revenue source has consisted of levies on enterprises in the

form of a profits tax, a tax on fixed capital (interest charge) and

miscellaneous other deductions from income. Social security taxes based

on payrolls have been the third major source. Levied at a rate of 12.5

percent through 1972, the social security tax was raised by 20 percent

in 1973 in order to meet rising costs. In 1972 about four-fifths of the

turnover tax and two-thirds of the revenue from taxes on profits and

capital was to be derived from industry.

In December 1972 the BKP Central Committee plenum embarked upon a

gradual modification of the income tax system that would eventually lead

to a total abolition of income taxes for wage earners and collective

farmers by 1980. Initially, the existing system is to be improved by

introducing unified taxation for all blue- and white-collar workers and

collective farmers and by establishing a tax exemption equal to the

official minimum rate of pay. Gradual elimination of all income taxes

for these population groups in the 1976-80 period is to be synchronized

with the contemplated reform of wage scales. At the same time a system

of progressive taxation is to be introduced on incomes derived from

activities in the private sector that are not in conformity with the

amount of labor invested.

The most complete recent information on budgetary expenditures is

available from the approved budget for 1972. Out of a total outlay of

6,514 million leva, 3,224 million leva was earmarked for the national

economy, and 2,065 million leva was set aside for social and cultural

needs. The remaining undisclosed balance of 1,225 million leva, or 19

percent of the total outlays, must have included expenditures for

defense, internal security, and government administration. The social

and cultural expenditures included; social security payments, 1,054

million leva; education, 532 million leva; public health, 303 million

leva; culture and arts, 83 million leva; and science, 93 million leva,

in addition to 235 million leva to be provided by research organizations

and economic trusts.

Information on the budget for 1973 was more sketchy. No information had

been disclosed on the magnitude of the expenditure on the national

economy; the usually undisclosed residual was therefore also not

ascertainable. The increase in overall revenues and expenditures over

those in 1972 was about 8 percent. Outlays for social and cultural

affairs, however, were planned to increase by 11.8 percent, including

increases of 18.8 and 15.7 percent, respectively, for public health and

education. These figures reflected the government's announced program

for increasing the well-being of the population.

The BKP and government leadership look upon the budget as a major tool

for executing BKP economic policies. As expressed by the minister of

finance in 1973, the budget contains a whole arsenal of financial and

economic levers--levers that must be used ever more skillfully to raise

the efficiency of economic performance, to improve the structure of

production and consumption, and to bring about a well-balanced economy.

The budget is also considered a tool for exercising effective control

over the entire sphere of production and services, not only to ensure

smooth current operations but also to inhibit any undesirable departures

from official policy.

The disciplinary powers of the budget have yet to be more fully

developed to cope successfully with the officially reported shortcomings

in the economy. One step in this direction calls for the further

intensification of what has been officially called financial and bank

control through the lev, that is, the discretionary use of financial

sanctions, including the denial of budgetary allocations or bank

credits, to enforce strict compliance with specific plan directives.

Another advocated measure is to intensify the public campaign against

waste and the irresponsible attitude toward public funds and for tighter

financial discipline. An implacable campaign is also to be waged against

wrongs done to the citizens in the use of public funds, illegal

formation and misappropriation of funds by economic organizations,

irregularities in the supply of materials, failure to produce consumer

goods despite the availability of needed resources, accumulation of

excessive inventories, and pilferage.

Many apparent violations of economic and budgetary discipline arise

because of the frequently inadequate knowledge or understanding by

personnel at all levels of the economy of the constantly changing laws

and regulations concerning the operation and interrelation of the

diverse economic units, particularly in the area of finance. The changes

in laws and regulations are the result of an unceasing search for a

system that would provide effective incentives toward conscientious and

efficient work to all gainfully employed persons.

BANKING AND CURRENCY

Banking

Since early 1971 the country's banking system has consisted of the

Bulgarian National Bank and two semi-independent banks attached to it:

the Bulgarian Foreign Trade Bank and the State Savings Bank. This

banking system emerged after three reorganizations in the 1967-70 period

and conforms to the general pattern of institutional and management

concentration in the economy. In addition to serving as the central bank

of issue, the Bulgarian National Bank, an independent agency under the

Council of Ministers, is directly responsible for financing all sectors

and phases of the economy other than foreign trade and consumer credit,

in which fields it supervises the activities of the Bulgarian Foreign

Trade Bank and the State Savings Bank. The bank is also responsible for

exercising close control over the economic units that it finances, with

a view to ensuring the fulfillment of all national economic plans and

the scrupulous adherence to existing laws and regulations.

A minimum of current information was available in mid-1973 on the

structure of the banks, the relationships between them, and their

financial operations. Official statistics are limited to annual data on

bank credits for investment and on the volume of outstanding short- and

long-term loan balances for the banking system as a whole. Data on

outstanding loans are broken down by type of borrower and, in the case

of short-term loans, also by purpose. With minor exceptions, no

information was available on the volume of loans extended, on loan

maturities, or on interest rates after 1970. Statistics had also been

published on the volume of personal savings in the accounts of the

saving bank at the end of each year.

The total amount of loans outstanding at the end of the year increased

from 3.6 billion leva in 1965 to 9.2 billion leva in 1971. The

proportion of long-term loan balances rose from 24 percent of the total

amount in 1965 to 40 percent in 1970 but declined to less than 36

percent in 1971. The increase in lending activity to 1970 was a direct

consequence of the partial shift from predominantly budgetary financing

of economic activities to a substantial measure of self-financing by

enterprises and trusts. The subsequent decline was related to the

tightening of investment credit in an effort to reduce waste in the

construction program (see Investment, this ch.). Long-term loans have

been granted predominantly, if not exclusively, for fixed investment

purposes.

Of the 3.27 billion leva in long-term loans outstanding at the end of

1971, 2.61 billion leva was due from state and collective enterprises,

and 660 million leva was owed by private individuals who had borrowed to

finance home construction. Only 12.5 percent of the loan balances was

due from collective farms--an amount equivalent to barely 62 percent of

the sums owed by private individuals. Collective enterprises in industry

and services had outstanding loans of only 13 million leva. In relation

to the value of each sector's fixed assets in 1971, the proportion of

outstanding long-term loans was: state enterprises, 11.3 percent;

collective farms, 16.1 percent; and collective artisans, 2.9 percent.

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