Bulgaria

Economy

General presentation of the country history

Socialist period

After World War II, in consequence of the agreements betweenStalin, Churchill and Roosevelt, Bulgaria fell under the sphere ofinfluence of the Soviet Union. The country became one of the main economic partners of the former Soviet Union and it is part of the socialist system. Bulgarian commodities were sold on markets stretching from the Baltic region to the Pacific.

Socialist periodIn several cases BCP authorities resorted to mass repressiveactions:-in the collectivization of agriculture;-in the nationalization of industry and large urban real estate;-no private property, market economy and freedom of market relations

Transition period in Bulgaria

Bulgaria experienced a decade-long delay in its transition to a market economy. The country experienced a severe economic and financial crisis. Poverty became a serious and widespread problem.Reforms and restructuring helped to Bulgaria to transform it into a market economy.

Recent economic performance

Since 1997,in a period of Stagflation, the country has recorded sustained economic growth of more than five percent per year. The economy is reaching 79 % in 2005.

BULGARIA TODAY

Bulgaria is a middle income country with a gross national income per capita of $3,450 in 2005 The agriculture , tourism, light industry, and metallurgy are key sectors of the economy.Per capita income increased by an average 6% year.Unemployment has been reduced substantially from 18.1% in 2000 to 11.3% in 2005

BULGARIA TODAY

The country’s per capita income in 2005 at purchasing power parity was just 32 and 56 percent of the average level of EU25 and EU8 countries respectively. Improving theefficiency of the economy, full use of EU funds in the relevant reforms, and closing gaps, are the central challenges of convergence towards EU averages and sustained improvements in living standards.

ECONOMY IN HUNGARY1950-2010

The previous measures

1946: Rákosi Mátyás ordered to introduce the new currency, the FORINT (previously the currency was pengő).

Rákosi Mátyás, prime minister of Hungary (1948-

1953)

The first era – 1950-1956

After the 2nd WW, Communist and Stalinist rule came with a one-party system (MKP)

Rebuilding the country after the war The enforced industrialization

brought extreme poverty 23rd of October, 1956: Revolution of

students and youngsters

The Communist Era – 1956-1990

After the Revolution and the Soviet occupation, Hungary joined the Warsaw Pact and the COMECON (Council for Mutual Economic Alliance)

Hungary were the ‘happiest barracks’ or ‘goulash-communism’ – we had the loosest rules (travelling, censorship – TTT, high standard of living, shopping)

The Communist Era – 1956-1990

Establishing the TSZ-system (TSZ – Termelőszövetkezet, in English Productive Private Enterprise) where people joined their forces to produce products (like a farm)

No unemployment – full work force employed even if with nothing to do

Competitions at work – among factories

The Communist Era – 1956-1990

Clear-cut, foreseeable future due to the financial safety (paid from loans borrowed from Western countries, which caused high state debts)

In the 80ties: the emerging youth making the future’s intellectuals with democratic movements

23rd of October, 1989: announcement of the Hungarian Republic

March-April 1990: Free and democratic elections after 43 years

Today’s Hungary – 1990-2011

Democratic elections are held every 4 years Complete change of system – capitalist market

economy introduced Enormous gap between social layers: huge wealth

for 1-2% of the population, poverty for the majority. There is very little middle class in between.

Introduction of consumer society: Buy as much as you want, you can pay your debts later!

Today’s Hungary – 1990-2011

Due to globalization Hungary lost a considerable amount of working industry (e.g. Collapse of the USSR, losing markets in CIS countries)

Joining to EU – selling sugar producing quotas, selling out the country, streaming of products from Eastern European countries (e.g. milk)

THE SCOTTISH ECONOMY

Change in the past 50 years..

How Scotland Makes Money..

Since the 1950’s Scotland’s main industry has changed.

Scotland used to have huge exports in ship manufacture, metals, and heavy industry in general.

This changed rapidly in the 1970’s and 1980’s..

Now Scotland mainly relies on tourism to make money.

Tourism is very important in Scotland.

Heavy industry in Scotland (1950’s and 1960’s)

Tourism in Scotland. (1970’s onwards)

Changes in Scottish wages:

The average weekly wage in the 1940’s was

£ 4.00. Now it is about £ 400. In 1948 the British currency was made up

of pounds, shillings, and pence. Now it is just made up of pounds and pence.

Education.

The Education Act in 1944 gave every child free education to the age of 15.

The Scottish Education system is distinctly different from the other countries of the United Kingdom.

Much more students are staying in school until the last year and getting a higher education than they used to.

Students used to leave school at a young age and get a job, many now choose to get a higher education.

Accommodation

At their 11th birthday, over half of the children born in 1958 were living in rented accommodation. 42% were in council houses.

Much more people tend to buy houses now.

The population has not changed much, but families are smaller than they used to be.

Economy since 1950

PROGRESS OF ECONOMY AFTER

1945 Marshall plan was adopted in Germany There was only one rule in West-Germany after World War II: economy was to respect the competitive environment Germany has a social market economy: not only help the wealthy also care for the workers and others who might not prove able to cope with the strength of economy

Progress of economy after 1989

1990 German reunification=> Germany invested over 2 trillion DM in the reconstruction and development of Eastern Germany

2011 the results were mixed with a slow economic development in the eastern parts in sharp contrast to the rapid economic growth in the western and southern parts of Germany.

BELGIAN ECONOMY

After World War II

Marshall plan Experienced a rapid expansion of the chemical and

petroleum industries. The 1973 and 1979 oil crises sent the economy into a

recession; it was particularly prolonged in Wallonia, where the steel industry had become less competitive and experienced serious decline.

In the 1980s and 1990s, the economic centre of the country continued to shift northwards and is now concentrated in the populous Flemish Diamond area.

Main imports and exports

Imports: raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products.

Exports: machinery and equipment, chemicals, finished diamonds, metals and metal products, foodstuffs (e.g. chocolate).

Centre of EU

Brussels is the capital of Europe

Belgian politician Herman Van Rompuy first president of the European Union.

The EU's headquarters in Brussels

Flanders vs Wallonia

The Belgian economy shows a dual nature: a dynamic Flemish economy and a Walloon economy that

lags behind. Belgium strongly supports an open economy. Population: Flanders 2x Wallonia

Euro in Belgium

Since 2002

Before: Belgian francs

stronger economy and stronger Europe

Conclusion

Some of the countries (Belgium, Germany and Scotland) have developed good market economy and industry traditions. The other 2 countries (Bulgaria and Hungary) are from the former Socialist group and they have been in a period of changing to market economy over the past 20 years.In conclusion comparing the countries we have a lot of common developed industries like agriculture , textile , tourism and food industry.

Team members

Scotland :- Hamish Brown Belgium :- Aaron Verbrugghe

- Ella WallaysGermany :- Tobias Fuesslin- Alexander SchmuckerHungary :- Benjamin SotiBulgaria :- Martin Garkov- Mihaela Ivanova - Stanimira Petkova- Stiliana Koleva - Ralica Hadjieva