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CSD Policy Brief No. 13: Effective Policies Targeting the Corruption – Organized Crime Nexus in Bulgaria: Closing down Duty-Free Outlets

CSD Policy Brief No. 13: Effective Policies Targeting the Corruption – Organized Crime Nexus in Bulgaria: Closing down Duty-Free Outlets

CSD Policy Brief No. 13: Effective Policies Targeting the Corruption – Organized Crime Nexus in Bulgaria: Closing down Duty-Free Outlets

Author(s): Author Not Specified / Language(s): English

Keywords: corruption;

Duty-free trade-related smuggling of excise goods has been one of the most potent and sustainable sources of political corruption in Bulgaria for the last fifteen years. The operation of land border area outlets has been a major channel for flooding the Bulgarian market with tons of illegal cigarettes and alcohol and the sale of millions of gallons of excise-free petrol. The resulting profit, running into hundreds of millions each year, has been funding many a Bulgarian party and has become the foundation of untouchable political oligarchies. While the fortune of other illegal markets has ebbed and flowed, duty-free shops and petrol stations have enjoyed the protection of all governments since the beginning of the 1990s. Several attempts to close them down have come against the significant state-capture power of the duty-free operators. Not only have their operation not been curtailed following Bulgaria’s EU membership – as members of the Bulgarian government have insisted and pledged to do – but a law was passed granting duty-free operators the right to offset closures of their units along Bulgaria’s EU external land borders' entry routes with new ones at the EU external borders’ exit routes with Turkey, Serbia and Macedonia.

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CSD Policy Brief No. 14: Criminal Justice and Law Enforcement along Bulgaria's Borders: the Impact of EU Accession

CSD Policy Brief No. 14: Criminal Justice and Law Enforcement along Bulgaria's Borders: the Impact of EU Accession

CSD Policy Brief No. 14: Criminal Justice and Law Enforcement along Bulgaria's Borders: the Impact of EU Accession

Author(s): Author Not Specified / Language(s): English

Enhanced criminal justice and improved cross-border cooperation between judicial and law enforcement authorities are essential for the EU and its Member States in order to effectively respond to the increasing threat of cross-border criminality. // The last two EU enlargements resulted in significant changes in the Union’s external borders. Some of the countries that used to have such borders (like Germany and Austria) are now neighbors to other EU Member States. Their responsibilities regarding the security at the external borders are gradually transferred to new Member States which have become the outermost countries of the Union. The duties of these countries on protecting the external borders are yet to increase substantially. // Further to Bulgaria's accession to the European Union, the country's frontiers with Turkey, Macedonia and Serbia, as well as its Black Sea border, have become external borders of the EU. Hence, border crossing-related criminal offences and customs violations no longer represent a problem of Bulgarian national security alone: they have turned into a problem of EU security. Many crimes and customs violations involve organized criminal groups and breed genuine corruption threats to customs authorities, border police, investigative police officers, and magistrates. Such acts fall within the jurisdiction of courts and prosecution offices at different levels and are inquired into by investigative police officers whose capacity still fails to match their wider responsibilities.

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CSD Policy Brief No. 15: LEVELLING THE PLAYING FIELD IN BULGARIA. How Public and Private Institutions Can Partner for Effective Policies Targeting Grey Economy and Corruption

CSD Policy Brief No. 15: LEVELLING THE PLAYING FIELD IN BULGARIA. How Public and Private Institutions Can Partner for Effective Policies Targeting Grey Economy and Corruption

CSD Policy Brief No. 15: LEVELLING THE PLAYING FIELD IN BULGARIA. How Public and Private Institutions Can Partner for Effective Policies Targeting Grey Economy and Corruption

Author(s): Author Not Specified / Language(s): English

Keywords: Corruption; grey economy;

This paper outlines the result of the consultations, which the Center for the Study of Democracy held with representatives of business and government on the feasibility of public-private partnerships in promoting a level paying field in Bulgaria. Its findings seek to inform further discussions with Bulgarian and international stakeholders on the modalities of possible future initiatives in this area on the example of public policy on the grey economy; If the efforts of the Bulgarian government and the business community to reduce the adverse impact of grey economy on the nation’s welfare are to succeed they need to bring on board the experience from successful coalition building for good governance from the non-government sector, based on best international practices. International experience has revealed that there are no easy fixes to pervasive grey economy and corruption. This brief proposes an overview of measures undertaken thus far to tackle the grey economy in Bulgaria and outlines a possible platform for engagement of the business, NGO and government sectors for long-term partnership for leveling the paying field in the country. This platform should combine the power of the government, the efficiency of the business and the know-how and experience of the civil society in the presence of a strong outside anchor and committed partner – the European Union. Its structure should allow for a combination of broad policy guidelines with focus on specific tangible actions. It should focus on strengthening enforcement, improving public resource management and enhancing business integrity. The platform needs to start with a narrow high impact issue e.g. the use of PPPs and EU funds in infrastructure, tourism or energy. The grey economy is one of the main constraints to investment and growth in Bulgaria. Different estimates put the size of the grey economy in the country between 20 and 35% of GDP, with some sectors, reporting less than 50% of the actual value of transactions. These hidden revenues create a self-perpetuating pool of corruption payments used to secure anything from tax “breaks” to state capture. Lower tax and social security rates and increased control intensity introduced by the Bulgarian government since 2003 and continued credit-and FDI-based economic growth have reduced the share of the grey economy by some 30% between 2002 and 2008. As these measures are likely to have one-off, limited impact on the grey economy and related corruption, priority must be given to strengthening enforcement, in particular for severing grey business monopolies’ corrupt access to high-level administration and political officials.

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CSD Policy Brief No. 18: Better Governance for Sustainable Energy Sector of Bulgaria: Diversification and Security

CSD Policy Brief No. 18: Better Governance for Sustainable Energy Sector of Bulgaria: Diversification and Security

CSD Policy Brief No. 18: Better Governance for Sustainable Energy Sector of Bulgaria: Diversification and Security

Author(s): Author Not Specified / Language(s): English

Energy is the lifeblood of any economy: oil, gas and electricity are critical to a functioning and growing nation. For all nations, economic and social well‐being depends on safe, affordable and dependable supplies of energy. It becomes very clear, then, that the question of energy security is not just a question of economic security, but of national security as well. // The Bulgarian energy sector is key for the future development of the country’s economy. For the past decade energy exports and imports formed on average 12% (16% in 2008) and 21% (22% in 2008) of the value of the country’s outgoing and incoming trade flows respectively1. Every fourth public procurement contract is concluded in the energy sector, making it one of the biggest taxpayers’ money spenders in the country. In 2008, in a single year, the Bulgarian government committed to energy projects, requiring budgetary investments equal in value to the whole EU funds support for the country for the current European seven‐year budget period 2007 – 2013.

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CSD Policy Brief No. 19: Energy Strategy of Bulgaria 2020: a better Governance Perspective

CSD Policy Brief No. 19: Energy Strategy of Bulgaria 2020: a better Governance Perspective

CSD Policy Brief No. 19: Energy Strategy of Bulgaria 2020: a better Governance Perspective

Author(s): Author Not Specified / Language(s): English

Energy is a key sector for Bulgarian economy, both because of its size and because of its importance to national competitiveness. This requires decisions to be made on the basis of reliable and accessible data, broad based discussions and clearly identified strategic priorities, which rely on established practices and mechanisms for good governance. The latest strategic document at national level is the Bulgarian Energy Strategy from 2002. Without updating it, the Bulgarian government has committed in the years following its EU accession to substantial investments with long‐term impact on the energy sector, which is a vivid example of failure in good governance. Bulgaria’s membership in the European Union (EU), climate change negotiations, the financial and economic crisis and Bulgaria’s inclusion in several international investment projects have changed the conditions for the development of Bulgaria’s energy sector. These latest developments require updating of the national energy strategy and providing for better and transparent governance in the sector.

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CSD Policy Brief No. 25: The Green Element in the Sustainable Energy Policies of Europe

CSD Policy Brief No. 25: The Green Element in the Sustainable Energy Policies of Europe

CSD Policy Brief No. 25: The Green Element in the Sustainable Energy Policies of Europe

Author(s): Author Not Specified / Language(s): English

Since the definition of the term by the World Commission on Environment and Development (Brundtland Commission) in 1987, ‘sustainability’ has become one of the most prominent political terms in the international affairs to rule agendas for decades ahead. The series of relevant meetings on the issue of sustainable development and climate change in Rio (1992), Kyoto (1997) and Johannesburg (2002) and Copenhagen (2009), as well as the overwhelming proliferation of green organisations and advocacy groups in Europe, have predisposed the European Union to take the vanguard role in the global effort for more sustainable and greener development. One of the first expected steps to take in that direction was to devise a sound and comprehensive legislation structure governing the European and national energy and environment protection policies in the way that they follow the principles of sustainable development, or namely avoiding degradation of natural resources, protection of the environment, promotion of equitable sharing of the products and resources of prospering economy to all groups of society. // Main purpose of this study is to review and discuss the development of regulation at EU level to guide corresponding national legislation and policies designed to address the challenges of sustainable development, notably those on the environment dimension and as regards to the most relevant economic sector – energy. The paper will briefly examine the development of the idea and strategy for sustainable development in Europe over time, the concrete EU legislation and instruments to facilitate national policies to support such development.

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CSD Policy Brief No. 26: Organised Crime and Corruption: National Characteristics and Policies of the EU Member‐States

CSD Policy Brief No. 26: Organised Crime and Corruption: National Characteristics and Policies of the EU Member‐States

CSD Policy Brief No. 26: Organised Crime and Corruption: National Characteristics and Policies of the EU Member‐States

Author(s): Author Not Specified / Language(s): English

Keywords: Organised Crime;Corruption;

MAIN POINTS 􀂾 Based on a statistical analysis of 14 indicators (measuring corruption, organized crime, the effectiveness of government, macro‐economic indicators and the grey economy), seven clusters of countries emerged. Starting from the cluster where the manifestation of corruption and organized crime was weakest, the clusters were: (1) Denmark, Finland and Sweden; (2) Austria, Belgium, Ireland, Germany, Luxembourg, the Netherlands, Slovenia, Spain and the UK; (3) France; (4) Estonia, Latvia, Lithuania, and Portugal; (5) Czech Republic, Cyprus, Greece, Hungary, Malta and Slovakia; (6) Italy; and (7) Bulgaria, Poland and Romania. 􀂾 Political corruption is organised crime’s most powerful tool and local level political and administrative authorities represent the most likely criminal groups’s target. In the case of police corruption the main reasons why organised crime uses corruption are to obtain information on investigations, operations, or competitors, (FR, NL, UK) and protection for continued illegal activities. In the majority of Member States, organised crime targets the judiciary, particularly the courts, much less than the police or politicians. Corruption of customs officers mainly helps organised crime avoid detection of smuggled goods, avoid investigations. 􀂾 Among the recommendations addressed to the European Commission is undertaking steps to widen the information and analysis tools such as benchmarking indicators to measure the threats from organized crime and corruption, and to assess the impact of measures to curb these threats. Another recommendation is to develop detailed guidelines to encompass a broad range of criminal offenses under the definition of corruption in national Penal Codes. 􀂾 EU Member‐states are urged to further develop their institutional capacities in order to conduct impact evaluation of measures against organized crime and corruption, and to build public‐private partnerships to facilitate anti‐corruption cooperation.

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CSD Policy Brief No. 27: Developing an EU Competence in Measuring

CSD Policy Brief No. 27: Developing an EU Competence in Measuring

CSD Policy Brief No. 27: Developing an EU Competence in Measuring Corruption

Author(s): Author Not Specified / Language(s): English

Keywords: Corruption;

MAIN POINTS * The anti‐corruption reporting mechanism that the European Commission is intending to introduce should be complemented by regular measurement of the incidence of corruption. Well tested methodologies already exist. * Having its own facility for measuring corruption would allow the EU to: * be credible in its assessments, especially of candidate countries; * be capable of making relevant recommendations * carry out corruption risk assessments * broaden its policy options against corruption (currently focused on law enforcement). * The Bulgarian experience in measuring corruption would be particularly relevant in the development of such a facility. The Corruption Monitoring System, implemented by the CSD, generates data on the incidence of corrupt transactions and assesses corruption risk in the various public and corporate sectors.

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CSD Policy Brief No. 28: The Hidden Economy in Bulgaria after the Economic Crisis

CSD Policy Brief No. 28: The Hidden Economy in Bulgaria after the Economic Crisis

CSD Policy Brief No. 28: The Hidden Economy in Bulgaria after the Economic Crisis

Author(s): Author Not Specified / Language(s): English

Keywords: grey economy;

MAIN POINTS 􀂾 The hidden economy has grown among businesses, but declined among the population. The social cost of the economic crisis is a declining employment among the groups with the lowest qualifications. * There is a rise in cases involving tax evasion, avoidance of customs, fees, and excise duties, as well as VAT fraud. As businesses suffer through the recession, they become more likely to not declare part of their revenue and economic activities. * There is a slight decrease in the incidence of undeclared payments ‐ in 2010, 11.6 % of the population reported having received a remuneration higher than the one stated in the contract with their primary employer. 􀂾 Governmental measures to reduce the hidden economy do not seem to have produced the desired results. 􀂾 The general economic situation and development are more important for the dynamics of the hidden economy than government control measures.

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CSD Policy Brief No. 29: Public Trust in the Criminal Justice System – An Instrument for Penal Policy Assessment

CSD Policy Brief No. 29: Public Trust in the Criminal Justice System – An Instrument for Penal Policy Assessment

CSD Policy Brief No. 29: Public Trust in the Criminal Justice System – An Instrument for Penal Policy Assessment

Author(s): Author Not Specified / Language(s): English

MAIN CONCLUSIONS: ››› Of all the EU member states, Bulgaria is the country whose citizens are the least satisfied with the performance of the main government institutions. ››› Trust in the main institutions concerned with criminal justice in Bulgaria – the police and courts, is low and has remained practically unchanged over the last decade. At the end of 2010, a positive evaluation of police performance was given by less than half of the country’s adult population and barely one in five gave a favorable opinion of the courts. ››› The low public trust in the courts and police can also be accounted for by the high level of corruption in these institutions. ››› The low trust in the courts and police is conducive to public attitudes of insecurity. Society begins to perceive crime as an inherent part of reality rather than a problem that can actually be addressed. ››› A state’s penal policy can only produce results if sufficient attention is paid to trust, legitimacy, and security. It is therefore recommended to adopt a system of indicators for the assessment of public trust in criminal justice in Bulgaria. ››› These indicators are an instrument for improved formulation of the problems faced by criminal justice institutions and for more effective monitoring of changes in public attitudes. This would make it possible to focus the attention on strategic issues and long-term policies in the area of security and justice not only on the national, but also on the European level. In order to ensure comparability of the impact assessment of various implemented policies, it is recommended to adopt uniform indicators for measuring trust in criminal justice in the European Union and the member states, which should take place within the timeframe of the Stockholm Programme (2010-2014).

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CSD Policy Brief No. 30: Practices and Forms of Cooperation between Customs and Border Guards in the European Union

CSD Policy Brief No. 30: Practices and Forms of Cooperation between Customs and Border Guards in the European Union

CSD Policy Brief No. 30: Practices and Forms of Cooperation between Customs and Border Guards in the European Union

Author(s): Author Not Specified / Language(s): English

Keywords: Schengen; border control;

KEY FINDINGS ››› In Member States there are various forms of cooperation between customs and border guards: Strategic planning, communication and exchange of information, coordination of workflow at border crossing points (BSPs), joint risk analysis, joint criminal investigations, joint special operations and control outside BCPs („blue” and „green” borders), use of joint mobile groups, joint professional training. ››› Cooperation aims to enhance effectiveness of securing the external borders of the EU and the Customs Union, as well as efficiency that makes best use of the limited financial resources of the two institutions. ››› Cooperation challenges that customs and border guards face comprise legal and operational obstacles, different institutional cultures, and political pressure over the management bodies of the two institutions. ››› Bulgaria falls into a group of Member States where the level of cooperation between customs and border guards is most limited and often characterized by mistrust and competition. ››› The Government of Bulgaria, the Customs Agency and the Border Police should adopt best cooperation practices in order to increase the security of the external borders of the European Union.

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CSD Policy Brief No. 32: A Reinstating the Duty‐Free Trade at Bulgarian Land Borders: potential Setback in the Fight against Organized Crime and Corruption

CSD Policy Brief No. 32: A Reinstating the Duty‐Free Trade at Bulgarian Land Borders: potential Setback in the Fight against Organized Crime and Corruption

CSD Policy Brief No. 32: A Reinstating the Duty‐Free Trade at Bulgarian Land Borders: potential Setback in the Fight against Organized Crime and Corruption

Author(s): Author Not Specified / Language(s): English

Keywords: CSD; CSD Policy Briefs; Center for the Study of Democracy; organized crime;corruption;

KEY POINTS ››› In January 2012, a proposal to amend the Duty Free Trade Act was submitted to the Parliament by an independent MP (Emil Vasilev, formerly of the marginal opposition party Order, Law and Justice). The sole purpose of the proposed amendment is to allow for the reopening of the duty‐free trade outlets at Bulgaria’s land borders with non‐EU countries in the exact same format with the exact same operators as at the time of their closure three years ago; ››› The proposal is a major threat to border security, tax revenues and might undermine the stability of the state budget; ››› The reopening of the duty‐free shops would reverse the progress made in the fight against corruption, organized crime and excise goods smuggling and threatens to re‐kindle political corruption and clientelism.

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CSD Policy Brief No. 33: Management and Disposal of Confiscated Criminal Assets

CSD Policy Brief No. 33: Management and Disposal of Confiscated Criminal Assets

CSD Policy Brief No. 33: Management and Disposal of Confiscated Criminal Assets

Author(s): Author Not Specified / Language(s): English

KEY POINTS ››› The management and disposal of confiscated assets are important aspects of the overall process of confiscation, but they still remain marginal to the public debate in Bulgaria. ››› The existing legal and procedural gaps impede the effective management of confiscated property, frequently causing its plundering or demolishing. ››› The sale of confiscated real estate is further complicated by problems with mortgages and executive charges, incomplete property documentation, reputation of the former owner, and unfavourable market conditions. ››› The Bulgarian legislation concerning the allocation of proceeds from the sale of confiscated property is not in compliance with the relevant ratified UN conventions, which recommend using these revenues for compensation of the victims of crime. ››› The legal possibilities provided by Bulgarian law for re‐use of confiscated property for socially beneficial purposes are seldom applied and are not sufficiently publicised among the potential beneficiaries. ››› Among the important legislative gaps is the lack of a specific procedure for the transfer of confiscated real estate. The introduction of such an instrument could facilitate the utilization of these assets for the public benefit.

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CSD Policy Brief No. 35: Corruption and anti-Corruption in Bulgaria (2011 – 2012)

CSD Policy Brief No. 35: Corruption and anti-Corruption in Bulgaria (2011 – 2012)

CSD Policy Brief No. 35: Corruption and anti-Corruption in Bulgaria (2011 – 2012)

Author(s): Author Not Specified / Language(s): English

Keywords: Corruption;

KEY POINTS ››› Following a period of improvement (2009 – 2010), administrative corruption experienced by citizens in Bulgaria is once again on the rise in 2011 – 2012, although still below the levels observed under the previous government (2005 – 2009). The average monthly number of corruption transactions in 2011 was approximately 150,000. ››› Corruption pressure in Bulgaria stems from the very structure of the public administration, and the lack of customer­oriented culture and approach in delivering public services to citizens and businesses. A sustained improvement of the corruption situation is possible only through measures that would systematically change this environment. ››› The scale of corruption in Bulgaria is such that, without a radical administrative reform, even a substantial increase in the capacity and efficiency of law enforcement would not provide sustained decrease of corruption, neither within law enforcement itself nor in the society at large. ››› Administrative corruption experienced by businesses has declined in 2011 – 2012, reaching the lowest levels on record. Although this decline has not been deep enough to produce a marked improvement in the past 3 years, the positive fundamental changes that took place in the business environment and reduced corruption pressure after Bulgaria’s EU accession seem to have taken root.

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CSD Policy Brief No. 36: Educational Integration of Refugee and Asylum-Seeking Children: the Situation in Bulgaria and the Experience of other European Countries

CSD Policy Brief No. 36: Educational Integration of Refugee and Asylum-Seeking Children: the Situation in Bulgaria and the Experience of other European Countries

CSD Policy Brief No. 36: Educational Integration of Refugee and Asylum-Seeking Children: the Situation in Bulgaria and the Experience of other European Countries

Author(s): Author Not Specified / Language(s): English

Keywords: Asylum-Seekers;

KEY POINTS According to the Migrant Integration Policy Index (MIPEX) for 2011, Bulgaria reaches an average of 15 per cent of the internationally recognised standards in relation to policies on access to education, assessment of knowledge upon arrival and assistance during language learning. The educational integration of RASC in Bulgaria is organised in two stages: preparation for school enrolment and integration into the public school system. ››› The main focus is on the preparatory stage which ensures school enrolment. The second stage, during which the true educational integration of RASC takes place, develops in the public schools and is not supported by special programmes and additional resources. ››› The studying of Bulgarian language is viewed as the main (and the only) element of the educational integration of RASC. Other particularly important aspects of educational integration like preparatory courses in the main subjects, participation of parents in the education process, providing school materials and appliances or mother tongue training currently remain unconsidered by the responsible institutions. There is no systematic observation and data collection with regard to RASC presence and performance in the public school system of Bulgaria.

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CSD Policy Brief No. 37: The hidden economy in Bulgaria: 2011 – 2012

CSD Policy Brief No. 37: The hidden economy in Bulgaria: 2011 – 2012

CSD Policy Brief No. 37: The hidden economy in Bulgaria: 2011 – 2012

Author(s): Author Not Specified / Language(s): English

Keywords: hidden economy;

KEY POINTS The hidden economy in Bulgaria has decreased in 2011 – 2012 among both businesses and the population. Yet, the registered gains are modest. Deep structural labor market problems and long-term business environment issues continue to constitute favorable conditions for the development of hidden economic activities in Bulgaria. The Hidden Economy Index results show: ››› decrease in the incidence of undeclared employment due to rising unemployment and lack of re-entry of labor force; the decrease has also come partially from the increase of employment in the informal (self-subsistence) economy; ››› decline in tax evasion as a positive result of the government’s focus on administrative and control measures in the tax compliance area. In the short-run, government measures countering the hidden economy seem to be more productive in the tax evasion area while the economic environment positively affects the undeclared work situation. Publicized frequent statistical errors recently raised concerns about the quality of the supplied statistical data for decision-making. While implementation of control measures has achieved some success, very little has been done for the introduction of positive reforms to reduce incentives for the development of the hidden economy. Implementation of structural (e.g. changing the regressive character of social security and tax system) and administrative (e.g. promoting better service delivery as opposed to more controls) reforms is lagging behind

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CSD Policy Brief No. 38: Improving Policy and Programs for Assistance and Reintegration of Child Victims of Trafficking in Bulgaria

CSD Policy Brief No. 38: Improving Policy and Programs for Assistance and Reintegration of Child Victims of Trafficking in Bulgaria

CSD Policy Brief No. 38: Improving Policy and Programs for Assistance and Reintegration of Child Victims of Trafficking in Bulgaria

Author(s): Author Not Specified / Language(s): English

Keywords: road casualty;

KEY POINTS ››› Bulgaria is one of the few countries in Europe to develop a National referral mechanism for victims of trafficking, including children. ››› A network of 14 crisis centers for children victims of violence and trafficking have been developed in the country, which plays a key role at interim care stage. ››› The main financial and human resource of the system for assistance of child VoT is directed at the stage of crisis intervention. ››› The National Referral Mechanism has no guidance for the implementation of durable solutions for child VoT. ››› The country currently has no specialised programs for long term reintegration of child VoT. ››› The existing programs for assistance of child VoT do not include measures, mechanisms and resources for adequate work with parents. ››› The prevailing durable solution regarding child VoT is the return of the child to the family. However, in the absence of adequate monitoring of the long term reintegration however, this practice leads to increased risk of re-trafficking. ››› There is no centralized data collection for victims of trafficking, including children, in the country. ››› There is no practice of conducting monitoring and evaluation of the programs for reintegration of child VoT.

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CSD Policy Brief No. 39: The Bulgarian Economy: Competitiveness 2013

CSD Policy Brief No. 39: The Bulgarian Economy: Competitiveness 2013

CSD Policy Brief No. 39: The Bulgarian Economy: Competitiveness 2013

Author(s): Author Not Specified / Language(s): English

MAIN POINTS ››› Bulgaria is ranked at 57th position, 3 places below the position achieved in 2012 and the lowest since its inclusion in the yearbook in 2006. This almost 20 places lower than ist highest achievement in 2009 – 38th place. ››› The country continues to have a fiscally stable, open and export-oriented economy with one of the lowest living and business costs in Europe. ››› Bulgaria continues to suffer from the lack of adequate business culture and institutional framework, while also being plagued by a labor market crisis leading to one of the lowest employment levels Bulgaria has reached in its post-communist history in 2013. ››› The most pressing problem of the Bulgarian economy is surging unemployment, with youth and long-term unemployment being persistently high. ››› The 5 main challenges which Bulgaria faces in improving its competitiveness are: o Modernise public administration to increase evidence-based efficiency and regulatory quality; o Reduce administrative costs and provide EU funded incentives for innovation and entrepreneurship; o Strengthen the judiciary to tackle corruption and reduce business uncertainty; o Reform the governance of the energy sector to preserve cost competitiveness, diversify gas supply, and improve energy efficiency; o Tackle hidden economy and related labour market inefficiencies.

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CSD Policy Brief No. 40: Bulgaria’s Energy Security Risk Index

CSD Policy Brief No. 40: Bulgaria’s Energy Security Risk Index

CSD Policy Brief No. 40: Bulgaria’s Energy Security Risk Index

Author(s): Author Not Specified / Language(s): English

MAIN POINTS ››› Energy security is of critical importance to Bulgaria. The biggest identified threat to Bulgarian national security is poverty, and in particular energy poverty. Bulgaria’s non-transparent energy sector seriously undermines the country’s economic development. Establishing regular sound monitoring mechanisms on energy security could be key for adequate policy-making in the area. ››› The Index of U.S. Energy Security Risk Indicator (IESRI), developed in 2012 by the Institute for 21st Century Energy at the American Chamber of Commerce shows that since 1980, Bulgaria has had one of the worst energy security risk index scores both nominally and compared to the OECD averages. Its scores over the period averaged about 158% higher than those for the OECD. ››› Bulgaria’s energy security risk index increased since 2010. This recent deterioration relative to OECD averages is based on the energy expenditure volatility of the Bulgarian economy that according to IESRI has increased more than 10 times in the last 3 years (since 2009), reaching in 2012 one of the highest levels since 1980). ››› Among the main risk factors to Bulgaria’s energy security is its high dependence on fossil fuels import, in particular in the gas sector. The very high concentration of the Bulgarian gas market (monopoly of supply and distribution) provides ample opportunities for rent-seeking. Bulgaria’s involvement in various national, smaller regional, and large international projects can reduce the risks to its energy security if it is based on clear-cut prioritization of preferred options following sound and transparent cost-benefit analysis.

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CSD Policy Brief No. 41: Crime Trends 2012 – 2013

CSD Policy Brief No. 41: Crime Trends 2012 – 2013

CSD Policy Brief No. 41: Crime Trends 2012 – 2013

Author(s): Author Not Specified / Language(s): English

KEY POINTS ››› Crime rates increased in 2012 compared to 2011 - 15.4 per cent of the population compared to 10.3 per cent, respectively, were victims of crime. The number of victims and the overall number of crimes increased both. ››› Growth of unregistered crimes: for a third consecutive year the share of victims who do not report crimes to the police increased. ››› Growth in thefts: despite the continuing decline in serious crimes such as murder and vehicle theft, there is an increase in crimes against property of the citizens. ››› Victims of crime in South Central and South Eastern regions of the country are least likely to report crimes to the police. These areas are also characterized by high levels of crime victimisation.

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