Doing Business Reform Memorandum

Abstract

Bulgaria experienced strong economic growth prior to and shortly after joining the European Union (EU) in 2007. Under the better regulation program, the government adopted over 100 measures to reduce the regulatory and administrative burden, but no formal mechanism was introduced to regularly monitor and review its implementation at the national or municipal level. Some areas, in which entrepreneurs expected to see improved efficiency, actually saw setbacks. The time needed to get a construction permit, import license, or operational license almost doubled between 2008 and 2013, and senior managers of firms reported that they were spending more time, 22 per cent in 2013 , dealing with public officials or public services than in 2008, when it took 14 per cent of their time. The final diagnostic study considered in this memo is the Doing Business report, which is also the basis for the reform recommendations presented in the document. According to last year’s Doing Business report, business regulation in Bulgaria varies significantly across the areas measured. Bulgaria is among the global top 50 performers in 4 of the 10 areas, specifically, protecting minority shareholders (14th), getting credit (23rd), resolving insolvency (38th), and starting a business (49th). Bulgaria‘s performance lags behind in four areas, getting electricity (125th), dealing with construction permits (101st), paying taxes (89th), and enforcing contracts (75th).