Citation
(2006), "Bulgaria must try harder", International Journal of Productivity and Performance Management, Vol. 55 No. 7. https://doi.org/10.1108/ijppm.2006.07955gab.010
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited
Bulgaria must try harder
Bulgaria needs to boost employment and productivity in order to narrow the income gap and speed up convergence with the European Union, which it hopes to join next year, according to a recent report form the World Bank.
“The Road To Successful EU Integration – The Policy Agenda” suggests that labour market reforms are vital for Bulgaria to narrow the income gap with the EU and improve living standards, especially bearing in mind the country’s declining population. Bulgaria’s population is declining by 0.8 percent per year due to a negative natural rate of population growth and out-migration, which have led to a rapidly ageing population and declining workforce.
The World Bank recommended to the Bulgarian government a reform agenda focused on five areas that should speed up convergence with the EU. This agenda includes improving the quantity and quality of human capital, upgrading the transport network, promoting efficient and transparent public sector management, improving labour market performance, reducing regulatory complexity and judicial reform to strengthen the enforcement of contracts.