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Facts about U.S. Assistance to Bulgaria
The U.S. Government has provided foreign assistance to Bulgaria since 1990, with a total investment of more than $600 million, making it the largest bilateral donor. U.S. assistance played a key role in helping Bulgaria come a long way in its 17-year march from a highly centralized communist state to a democratic, free market member of the European Union and NATO.
The legacy of strict central planning and a large external debt burden made the circumstances of Bulgaria’s transition difficult and dramatic. USAID assistance started in 1991 as a modest regional program of critical emergency aid and support for the political process, including free and fair elections. The program quickly grew to a broad spectrum of activities. The final years of USAID support focused on some of the toughest challenges facing Bulgaria as it prepared to join the EU in 2007, with particular emphasis on enhancing the rule of law. USAID support was critical for many sustainable institutions that will continue to contribute to Bulgaria’s progress.
The USAID Mission in Bulgaria will close in the fall of 2008.
Key Achievements and Legacies of U.S. Assistance in Bulgaria:
Strong and responsive local governments: Training programs and study tours, twinning of Bulgarian municipalities with U.S. counterparts, and technical advice helped Bulgarian local governments better serve their constituencies. Innovations adopted with U.S. support include the highly successful “one stop shops” in city halls that allow citizens convenient access to information and services--now operating in more than 100 Bulgarian municipalities. The amount of U.S. assistance invested in improving local governance was approximately $50 million.
The American University in Bulgaria: Founded in 1991, the American University in Bulgaria benefited from more than $60 million in U.S. assistance. More than 1,900 students graduated from AUBG as of 2007. Alumni occupy key professional and leadership positions in Bulgarian business and government.
Private Sector Development: USAID assisted in the establishment of the private sector in the country through support for privatization and legislative development, as well as training and direct volunteer and expert assistance for emerging Bulgarian entrepreneurs. U.S. assistance for private sector development was approximately $50 million. As the private sector developed, USAID focused on high growth sectors such as tourism and technology. USAID provided $58 million to the Bulgarian-American Enterprise Fund and $7 million to CARESBAC, which channeled financial resources to small firms before Bulgaria’s banking system began to serve them. Thousands of small firms benefited from USAID assistance and from the improved enabling environment for private enterprise. More than 50,000 microfinance loans supported almost 80,000 jobs.
Modernized Financial Sector: After the collapse of the Bulgarian banking system in 1996/97, USAID devoted more than $15 million to reform and privatize this sector. Seven government banks were sold for more than $1.1 billion in a transparent process. The entire banking sector was strengthened and better regulated after USAID supported establishment of a Deposit Insurance Fund and improved bank supervision. USAID had a major role in developing Bulgaria’s capital markets. More than $11 million was devoted to establishing a central depository, stock exchange, a professional cadre of broker/dealers, and a sound regulatory system. USAID programs left behind a well-regulated capital market system that was capitalized in 2007 at $11 billion.
Stable Pension System: USAID was virtually the sole bilateral donor to reform Bulgaria’s crippled pension system, and it provided approximately $10 million to help establish the modern “three pillar” pension system that combines both public and private pension provisions. By 2007 Bulgaria’s supplementary private system managed assets in excess of $1 billion, covered more than 90 percent of the working age population, and was a model for the region.
Humanitarian Assistance: Quick and responsive assistance during crises helped to save many lives and supported recovery efforts. This included the emergency humanitarian aid and disaster assistance at the beginning of the transition in 1991, emergency medical and food aid support in 1997 during the financial meltdown, and emergency assistance in 2005 when flooding impacted more than 3 million people. Humanitarian assistance totaled $66 million.
Environmental Protection: Assistance to the Ministry of Environment coupled with aid to environmental NGOs provided more than $20 million for water management, pollution control, and environmental protection activities after years of neglect. USAID helped Bulgaria to establish and manage vast National Parks and protected areas, helping preserve Bulgaria’s rich biodiversity and environmental heritage. Most of the country’s almost 200,000 hectares of protected areas were established with USAID support.
Anti-Corruption: While corruption continues to be a major concern, the USAID anti-corruption program assisted in establishing a credible system of independent monitoring and a more transparent public procurement process that is helping the country move in the right direction. More than 20,000 public procurements are now logged in an electronic register created with USAID support.
Rule of Law: USAID provided more than $25 million in assistance over 10 years targeted at reforming and strengthening the legal system. This assistance helped to establish and support an independent, national judicial training institute, where more than 7,000 judges have been trained since 1999. USAID also helped develop a number of judicial and court reform laws to provide oversight of the judiciary and to ensure an acceptable level of independence. While these accomplishments are impressive, Bulgaria will have to address weaknesses in the judicial system for many years to come.
The legacy of strict central planning and a large external debt burden made the circumstances of Bulgaria’s transition difficult and dramatic. USAID assistance started in 1991 as a modest regional program of critical emergency aid and support for the political process, including free and fair elections. The program quickly grew to a broad spectrum of activities. The final years of USAID support focused on some of the toughest challenges facing Bulgaria as it prepared to join the EU in 2007, with particular emphasis on enhancing the rule of law. USAID support was critical for many sustainable institutions that will continue to contribute to Bulgaria’s progress.
The USAID Mission in Bulgaria will close in the fall of 2008.
Key Achievements and Legacies of U.S. Assistance in Bulgaria:
Strong and responsive local governments: Training programs and study tours, twinning of Bulgarian municipalities with U.S. counterparts, and technical advice helped Bulgarian local governments better serve their constituencies. Innovations adopted with U.S. support include the highly successful “one stop shops” in city halls that allow citizens convenient access to information and services--now operating in more than 100 Bulgarian municipalities. The amount of U.S. assistance invested in improving local governance was approximately $50 million.
The American University in Bulgaria: Founded in 1991, the American University in Bulgaria benefited from more than $60 million in U.S. assistance. More than 1,900 students graduated from AUBG as of 2007. Alumni occupy key professional and leadership positions in Bulgarian business and government.
Private Sector Development: USAID assisted in the establishment of the private sector in the country through support for privatization and legislative development, as well as training and direct volunteer and expert assistance for emerging Bulgarian entrepreneurs. U.S. assistance for private sector development was approximately $50 million. As the private sector developed, USAID focused on high growth sectors such as tourism and technology. USAID provided $58 million to the Bulgarian-American Enterprise Fund and $7 million to CARESBAC, which channeled financial resources to small firms before Bulgaria’s banking system began to serve them. Thousands of small firms benefited from USAID assistance and from the improved enabling environment for private enterprise. More than 50,000 microfinance loans supported almost 80,000 jobs.
Modernized Financial Sector: After the collapse of the Bulgarian banking system in 1996/97, USAID devoted more than $15 million to reform and privatize this sector. Seven government banks were sold for more than $1.1 billion in a transparent process. The entire banking sector was strengthened and better regulated after USAID supported establishment of a Deposit Insurance Fund and improved bank supervision. USAID had a major role in developing Bulgaria’s capital markets. More than $11 million was devoted to establishing a central depository, stock exchange, a professional cadre of broker/dealers, and a sound regulatory system. USAID programs left behind a well-regulated capital market system that was capitalized in 2007 at $11 billion.
Stable Pension System: USAID was virtually the sole bilateral donor to reform Bulgaria’s crippled pension system, and it provided approximately $10 million to help establish the modern “three pillar” pension system that combines both public and private pension provisions. By 2007 Bulgaria’s supplementary private system managed assets in excess of $1 billion, covered more than 90 percent of the working age population, and was a model for the region.
Humanitarian Assistance: Quick and responsive assistance during crises helped to save many lives and supported recovery efforts. This included the emergency humanitarian aid and disaster assistance at the beginning of the transition in 1991, emergency medical and food aid support in 1997 during the financial meltdown, and emergency assistance in 2005 when flooding impacted more than 3 million people. Humanitarian assistance totaled $66 million.
Environmental Protection: Assistance to the Ministry of Environment coupled with aid to environmental NGOs provided more than $20 million for water management, pollution control, and environmental protection activities after years of neglect. USAID helped Bulgaria to establish and manage vast National Parks and protected areas, helping preserve Bulgaria’s rich biodiversity and environmental heritage. Most of the country’s almost 200,000 hectares of protected areas were established with USAID support.
Anti-Corruption: While corruption continues to be a major concern, the USAID anti-corruption program assisted in establishing a credible system of independent monitoring and a more transparent public procurement process that is helping the country move in the right direction. More than 20,000 public procurements are now logged in an electronic register created with USAID support.
Rule of Law: USAID provided more than $25 million in assistance over 10 years targeted at reforming and strengthening the legal system. This assistance helped to establish and support an independent, national judicial training institute, where more than 7,000 judges have been trained since 1999. USAID also helped develop a number of judicial and court reform laws to provide oversight of the judiciary and to ensure an acceptable level of independence. While these accomplishments are impressive, Bulgaria will have to address weaknesses in the judicial system for many years to come.