Content

SEND US FEEDBACK


We're always looking for ways to make Geoba.se better. Have an idea? See something that needs fixing? Let us know!

Bulgaria: Postwar Trade Policy
Country Study > Chapter 3 > The Economy > Foreign Trade > Postwar Trade Policy

POSTWAR TRADE POLICY


The adoption of the Soviet economic model had direct and indirect impact on Bulgarian international trade after World War II. Among direct results was the decision to reduce dependency on prewar Western trade partners. This meant strong promotion of import substitution policies to bolster domestic production of goods previously imported. In 1960 Bulgaria's total foreign trade (exports plus imports) was 31 percent of NMP, quite low for a country with a small internal market and few natural resources. By the 1980s, however, this figure had risen to over 90 percent. Before World War II, Germany was well-established as Bulgaria's top trading partner. Postwar economic policy diverted trade from Central Europe to Eastern Europe, and primarily to the Soviet Union. The new domestic economic priorities dictated a revised foreign trade structure. Beginning in the mid-1950s, imports of machinery accounted for approximately half the value of total imports, while fuels, metals, and minerals made up more than a quarter of this value. Lower postwar investment in agriculture eventually lessened the share of foodstuffs in total exports.

The state monopoly of foreign trade also changed the way decisions were reached on international allocation of goods. Trade decisions were reached administratively by planning authorities or negotiated with other members of Comecon. Overall control of foreign trade was shared among the Ministry of Foreign Trade, the Ministry of Finance, and the Bulgarian Foreign Trade Bank.

Import and export operations were conducted by foreign trade enterprises, most of which were affiliated with one or more associations but retained a legal identity outside the associations. Although reform measures by the Zhivkov regime gave associations some profit incentives in international trade, the producing enterprises themselves were completely isolated from the foreign customer. This meant that world quality standards had no influence on Bulgarian producers.

Data as of June 1992




Last Updated: June 1992


Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Bulgaria was first published in 1992. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on Factba.se.

Bulgaria Main Page Country Studies Main Page




Section 154 of 256






IMAGES


Click any image to enlarge.


National Flag



(лв) Bulgarian Lev (BGN)
Convert to Any Currency



Map



Locator Map