Sustainable Economic Development Through Sustainable Economic Policy: Is Bulgaria Ready for A Reindustrialization Policy?
Sustainable Economic Development Through Sustainable Economic Policy: Is Bulgaria Ready for A Reindustrialization Policy?

Summary/Abstract: The need for a new industrial policy is felt both at European and Bulgarian level. Recent theory recommends that such policy should follow “soft” and horizontal measures that enhance collaboration between government, industry and cluster-level private organizations and focus on creating a competitive environment. This understanding is contrary to old-fashioned industrial policy involving subsidies to specific sectors, bail-out of uncompetitive firms and sectors, tariff and non-tariff barriers aiming at import substitution. This article analyzes the degree at which Bulgaria is prepared to implement the new industrial policy and in particular, how the country might fit into a common European policy. The analysis and data provided point to the fact that there is a misunderstanding of the “soft” and horizontal measures, distorting the concept of a new industrial policy. The arguments in the paper also suggest that in sectors defined as priorities in Europe, our country considerably lags behind, therefore, Bulgaria is at a lower stage of preparedness for implementation of a “new” industrial policy as a whole.

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