Paper/Speech Details of Conference Program for the 16th NISPAcee Annual Conference Program Overview General Session Author(s) Kremena Georgieva Varna Free University "Chernorizets Hrabar" Varna Bulgaria Title Challenges and priorities of the investment policy of Bulgaria in the frame of a changing global environment File Paper files are available only for conference participants, please login first. Presenter Abstract CHALLENGES AND PRIORITIES OF THE INVESTMENT POLICY OF BULGARIA DURING A CHANGING GLOBAL ENVIRONMENT Assistant Prof., Kremena Andonova Varna Free University “Chernorizets Hrabar” There is a significant influence on the structural reorganization of the Bulgarian economy caused by the development of the current processes, related to the globalization of the world economy – transition from industrial to information society, accelerated technological change in the production, communication and management. Together with this, the requirements toward competitiveness, the geographical location of the production facilities, the qualification of the personnel, the organization of business, etc. are also changing. In the context of these serious challenges, Bulgaria, as a member of the European Union, is still searching for its place on the global and European markets and develops relationships of trust, as an equal and competitive partner. The purpose of this report is not to prove the actuality of these problems, because globalism is a natural process, which develops regardless of the will or unwillingness of the different countries. The focus is on the role of the state and public sector in the improvement of Bulgarian economic competitiveness and the integration of the national economy into the world economy. These circumstances impart to the state governance more specific meaning related to the forming of public policy in the sphere of investment that realizes strategic vision and investment priorities in response to the dynamic of developing contemporary needs. It is a winning role of the state for forming and practical realization of supply and adequate investment strategy in two cardinal directions. First, to attract more domestic and foreign investments for implementation of a technological change through the active adoption of the modern industrial, transport and communication technologies. The straight state engagement is connected to a creation of favourable conditions for the successful integration in the international economic competition, and to question Bulgaria’s participation in the global investment flows, realized in both directions – attraction of a larger volume of foreign direct investment, as well as stimulation of investment abroad. The role of the state in the process of an ever widening “opening” of the national economy is to adapt the economic system to the requirements of the global competition. It is also necessary to account for the favourable opportunities and threats, arising from the influence of the external (exogenous) factors on the development of the region (accepting or providing investment). Second, to support a favourable investment climate mainly related to a creation of a transparent business environment and a development of modern public administration. The main challenges toward the state governance are to provide a favourable investment regime – to support a stable legislation, to reduce the license and tax regimes with a view to decrease business expenses and to simplify the procedures of attracting domestic and foreign direct investments. The fundamental state care remain the problems in the development of the most significant conditions for accumulation of investment in Bulgaria – the “human capital” and the infrastructure, which have given up a materially meaning in this research.
