The World Bank's Strategy in Bulgaria: 2007-2009

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Bulgaria: Country Partnership Strategy

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Box 3: National Strategic Reference Framework 2007-2013Directions of Operational Programs and National Strategic Plans in Priority Areas a/

Improving Competitiveness of the Bulgarian Economy: The main goal i s development o f a dynamic economy which i s competitive in European and international markets. The main priorities are development o f a knowledge based economy and innovation potential, development o f a favorable business environment, increased productivity and financial access by SMEs, and strengthening Bulgaria’s external market position. Human Resources Development: The objective i s to enhance the quality o f life through employment, access to high quality education and lifelong learning, and social inclusion by (i)creation o f more and better jobs through enhancement o f labor force adaptability, mobility and competitiveness; (ii)access to education and training, improving i t s quality, and strengthening links between communities and education, and (iii)social integration and employment through development o f the social economy. Transport: The program aims to achieve balanced and sustainable development o f the national and urban transport systems o f national, trans-border and European importance. The program aims at the full integration o f the national transport system into the EU transport network, as well as at improving the quality and safety o f transport services. Environment: The main goal i s improvement o f the quality o f l i f e and favorable environment and protection o f the rich natural inheritance through sustainable environmental management. The strategic objectives o f the program are: (i)protection and improvement o f the condition o f water resources; (ii)improvement o f waste management and soil protection; (iii)improvement o f air quality and reduction o f noise pollution, and (iv) conservation o f biodiversity and protection o f nature. Regional Development: The strategic goal o f the program i s to enhance the quality o f the living and working environment with better access and opportunities for increased regional competitiveness and sustainable development. The two program objectives are: (i) developing sustainable and dynamic urban centres connected with their less urbanized hinterlands, thus enhancing their opportunities for prosperity and development, and (ii) mobilizing institutional and financial resources for implementation o f regional development policies and programs. Agricultural and Rural Development: The strategic objectives are: (i) development o f a competitive agriculture and forestry sector with focus on innovations in the food-processing sector; (ii) conservation o f natural resources and protection o f the environment in rural areas; and (iii)employment promotion and improvement o f the quality o f life in rural areas. Administrative capacity: T h i s horizontal Operational Program aims at building a strong, effective and modern mblic administration, capable o f meeting the high expectations o f Bulgarian citizens, the business sector and the EU in terms of enhanced service delivery and high professional ethics, and efficient and effective use o f EU funds. a/ Based on draft Operational Programs and National Strategic Plans prepared in the context o f the draft National Strategic Reference Framework, 2007-2013. OPs cover competitiveness, human resource development, transport, environment, regional development, and administrative capacity. NSPs cover agriculture and rural development, and fisheries (under preparation).

16. Despite a good growth record over recent years, Bulgaria’s income gap with the EU remains large. Bulgaria’s per capita income, at PPS in 2003, was 31 and 56 percent of the average level o f EU-25 and the eight EU new member states (NMS-8), respectively. Given Bulgaria’s large income gap with the EU, improving the efficiency o f the economy and setting it on a higher growth path will be required to ensure that forthcoming EU accession will rapidly narrow the gap and result in sustained improvements in living standards.

17. The recent experience o f the EU-8 new member states provides important lessons for Bulgaria. First, the importance o f setting clear priorities and undertaking as much reform as possible before accession. Policies and reforms should be anchored in a clear long-term vision and strategic national development plan for the country. Securing macroeconomic stability, stimulating the investment climate, strengthening human capital, and enhancing labor market flexibility, are core prerequisites for high and sustainable growth rates. Second, an efficient and technically competent public administration i s essential to manage rigorous and properly sequenced reforms and ensure effective delivery o f public services. Third, the need for


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