Issue 6, 2018

The report examines the territorial disparities in the standard of living at the level of European Union, regions and districts in Bulgaria. The standard of living is defined and assessed from the point of view of material living conditions, which include a number of indicators grouped in three thematic areas: economic development, income and consumption, inequality and poverty. Appropriate statistical indicators are used to assess disparities, and a specific methodology is applied for the assessment of the standard of living, that allows territorial units to be ranked according to the distance from the best value. The results of the empirical study for 2010-2017 show: (a) a low level of the standard of living in Bulgaria compared to the EU countries (28); (b) the disparities between the regions in the country are slightly diminishing and between the districts are preserved; (c) there are significant changes in the ranking of the regions and the districts. Energy poverty is studied and assessed on the basis of indicators identified by the "expenditure method" and the so-called "consensual method". The results for 2014-2016 show: (a) a growing range of energy poverty across all indicators; (b) Bulgaria is lagging behind the other EU member states in limiting energy poverty.
JEL: C43; I31; I32; I38; Н41; Н55; R11; R13

The dynamics of employment in Bulgaria in the first decade of EU membership reflects the impact of various factors, including the application of the principle of free movement of workers on the European labor market.The main goal of this study is to highlight institutional challenges facing the labour law compliance control (national system of labor inspection) and the social insurance contributions dynamics in Bulgaria in the context of EU workers mobility. The changes in employment in Bulgaria as part of the European labor market reveal both the free movement of EU workers and the attraction of third-country nationals. The diversity of the nationality of the employed is reflected in the legislation (Labour Migration and Labour Mobility Act, 13 April 2016), which regulates the main processes in relation with workers mobility. These trends are accompanied by changes and complicating the activities of institutions that have responsibilities in the field of labor law compliance control and social security in Bulgaria as part of the European labor market.
JEL: J21; J61; H55

The article presents the trends in the main labour market indicators before and after the economic crisis in 2009 at national and regional level. It outlines the most specific features in the relation between economic and employment growth. At a regional level the article studies the deviations from the average values of economic activity, employment rate and unemployment rate on the regional and intra-regional level, pointing out the increasing deviations at intra-regional level as one of the main feature of labour market misbalances. It also defines some of the factors, causing these misbalances. Particular attention is paid on the role of regional employment programs and measures as an instrument to encourage labor integration through training and qualification; policies that have no alternative and aim at decreasing the social disparities and at the inclusion of risk groups in labor activity and at sustainable employment as a way to improve the standard of living.
JEL: J2; J4; J18

The report presents the main legislative, organizational and policy changes on youth employment in Bulgaria associated with the implementation of the European Youth Guarantee (EYG). Youth employment, unemployment and activity rates have changed in positive direction, but the quality of job offers for young people is still questionable. Some of the indicators follow the common tendency in the European Union (EU) and the youth inclusion in the labour market is an important challenge. The position of young persons on the labour market proves that they still do not benefit from the economic growth in a same level, as the other age groups.
JEL: J64; J08; J13

We are witnessing a dynamically changing environment that imposes a new way of thinking and new competencies. Human resources activity is no exception. A number of factors shape its new look. Digitization, globalization, intelligent learning platforms, virtual teams, new jobs and dynamic jobs, social responsibility, burnout, fraud from candidates for job vacancies and many other trends require human resources leaders to initiate and support the changing environment. All this implies new competencies of human resources specialists. For this purpose it is necessary to redesign the contents of the universities syllabus and to reorganize the way of their creation and development.
JEL: М12; М5; М51; М53; O15; I21; I23

Growth for the purposes of growth is not a wise idea for the contemporary governments because of the increasing dissatisfaction due to the lack of real benefits for a huge part of the population and for some regions. Inclusive growth is focused upon the preliminary analysis of sources and limits of the sustainable development not only for one group – the poor. It aims to find out approaches for full usage of labour forces; especially the ones occupied with low productive activities or that are excluded from the market. The green economy and growth turn to be the modern answer to the need of new production ways as a result of the ecological problems and social disproportions. The aim of the report is to study the characteristics of the inclusive growth in the District of Vidin in the context of the regional policy of Bulgaria and the green economy opportunities as a mean for reaction to the negative social-economic effects.
JEL: О4; Q2; Q5; R1

The policies for the protection of the different ethnic communities of the European Community are integrated into national law. But the legal institutional framework is not enough to create a better world for "the different." The report classifies the peculiarities of the social reality of the Roma. The results of an empirical study of the problems of cohabitation of Bulgarians and Roma in Kremikovtsi, Garmen, are presented. An inductive approach has been used in which the localized case provides recommendations for resolving the pressing problems of minority inclusion towards universal values and ensuring equal working conditions. It is proposed to change the management approach by respecting the differences.
JEL: A12; A13; J01; J14; J15; J24; M14; M51; M54

Over the last 20 years, the globalisation of the economic and financial environment has had an impact on world trade and investment and has modified the ways in which international trade and investment transactions are implemented. The expansion of the overseas operations of the international companies is an influential factor. The reduction of tariffs, the increase in the quality/cost ratio of international transport, and especially the deepening of information and telecommunications links, contribute to changes in the way in which international trade and investment transactions are carried out. The evolution of international trade and foreign direct investments (FDI) during the post-crisis period differs significantly from that during the pre-crisis period. The economic and financial environment is uncertain. Besides the global financial crisis, Europe is also experiencing the blows of the sovereign debt crisis – a fact that affects its rapid economic and financial recovery. Despite the liberal trade and investment relations, countries around the world apply non-tariff and administrative barriers in order to protect export-oriented production from external shocks. In recent years, protectionist trends are increasing due to the unilateral imposition of duties on certain goods by the American administration. Does this shift in trade policy mark a turning point in international trade and FDI?
JEL: F13; F21; F23

The structural differences across main sectors within the EU countries are analysed. Defined is the extent to which the difference in labour productivity by main sectors determines the structural changes – to what extent the formed economic structures and their change is characteristic of the developed economies, those from Central and Eastern Europe and the Balkan countries. The analysis allows to get an idea of the general and specific in the structural development by main sectors of Bulgaria and the potential for realization of favourable structural changes.
JEL: Q11; O52; P59

Motivation is a competence and responsibility of the manager when managing human capital in a business organization. Motivation is based on the existence of an unsatisfied need in individuals who are the carriers of human capital and, driven by personal motives and reasoning, follow a certain behavior. By identifying and satisfying these needs, individual behavior can and should be guided by the management, in consideration with the objectives of the business organization. The ability to motivate the manifestation of human capital is the ability to manage a business organization. It is based on the specific traits and peculiarities of the human capital, on the company culture and the characteristics of the business environment.
JEL: М12; М51; М54

According to behavioral economics, the interactions in an economic unit reflect not only the rationality, but also the irrationality in the behaviour of the individuals and the groups of individuals, which influences the display of human capital in the given organizational structure. Questions about the way of communicating the specific characteristics of rationality and irrationality as socio-psychological characteristics concerning the interactions in the organization are risen: their influence on the economic behavior of the individuals, the management of the processes and the goals achieving. In order to build up a complete of the business behavior and to overcome any negatives, leading to ineffectiveness, it is necessary to identify and analyse the determinants for the deviation in the corporate environment. A new vision of the condition of Bulgarian companies is needed, in order to identify the problematic areas in their management and a critical evaluation of their business practices is needed, in order to note down ways of formulating and improving the micro-policies.
JEL: A12; A13; M14; Z1

New technical safety requirements for the future NPP have been set after the Fukushima accident in 2011. This has led to costs increase and new models for NPP construction financing. Along with these models the article discusses technical problems associated with the building of a financial model to determine the financial viability of a project for a new NPP construction, and the decision to be made in defining its main parameters. The outcomes of the study have direct implications and applications that may be used in studies and decision for constructing NPP Belene.
Keywords: financing, financial models, nuclear power plant.
JEL: G11; G17; G32

The mission of the modern internal audit is to support the development of the company and to contribute to the achievement of its objectives. In this context, the need for the internal audit to meet the expectations of stakeholders is becoming increasingly important. Moreover, it requires a proactive role, which includes to provoke needs, provide advice, and to offer opportunities. The modern internal audit must go beyond its traditional role of observer, finder and corrective, and become the engine that inspires changes in the company. In order for this transformation to take place, it is necessary to change the objects and subjects of the internal audit. Corporate culture, corporate social responsibility, ethics, cybersecurity, risk-culture, innovation, strategies, etc. are joined of the objects of internal auditing. All this implies new competences, attitudes and skills of internal auditors.
JEL: M42; M14; G34

Leading companies try to build a complete partnership with their customers. For this purpose, they develop loyalty and retention programs for their key customers. Marketing experts try to provide these customers with constantly high value and satisfaction. They also use specific marketing tools to develop stronger relations with these users. The main purpose of this paper is to study in theoretical and practical terms the specifics of the relationship management in regard to the company key customers.
JEL: М30; М31

The article analyzes the main demographic and migration processes in Bulgaria by districts and their impact on the formation of human resources and thus on the economic development of the country. The aim is to highlight current and future trends and specificities in intraregional plan for Bulgaria by districts. It is argued that these regional differences pose additional economic problems both for the country as a whole and on the territorial level. Demographic collapse not only reduces the workforce but also aggravates its age and professional structure, which limits its entrepreneurship and flexibility. Under these demographic conditions, it is difficult to achieve high labor productivity and an accelerated catching up development of the EU.
JEL: J11; J21; R11; R23; R58

The paper presents the concept of sustainable water resources management in the context of United Nations’ sustainable development goals (UN SDG) and in relation to policies for water resources management in Bulgaria. The natural systems for wastewater treatment are discussed as an example for sustainable management. They could be used without the application of complex equipment or chemical processes. The economic and social advantages of these systems are discussed too.
JEL: Q25; Q58; Q5

The transition from linear to circular economic model has gradually become an imperative for all countries in the world. Negative phenomena, which are the result of prolonged environmental pollution, affect all economic actors and reveal the defects of the linear economic model. The clarity of the need to abandon it, however, faces the complexity of its replacement. It is becoming increasingly obvious that this will be a long and complicated process in which the state will have to play an active role.
Some countries have moved in this direction relatively earlier than others. Such are Germany and Japan.
The aim of the present study is to present in a general analytical and comparative plan the main policies that these two leading economies in the world have conducted over the years as their experience would be of significant benefit to the successful realization of the actions - part of the transition to a circular economic model, in the countries of Europe and in particular those in the EU.
JEL: E20

Consider and demonstrate opportunities to meet the requirements underpinning EU regulations and adopted in December 2015 year, a package of measures for the introduction of the “Circular Economy” on the one hand and, on the other hand, the implementation of the decisions of the United Nations Conference on Climate Change in Paris December 2015, incl. and the “4 on 1000: Soils for Food Security and Climate” initiative was adopted.
A possible model for a sustainable circular economy in the agricultural sector will be analyzed taking into account sources of funding in line with current local legislation.
JEL: Q50; E17

In recent years, global climate change has a particular place on the agenda of society. These changes are related to a number of natural disasters - droughts, fires, floods, hailstorms, hurricane winds, landslides, etc. Exploded globally, these problems pose serious environmental, economic and social problems to mankind. Undoubtedly, one of the reasons for part of these regional problems is the loss of forest land. The present study aims to reveal some of the reasons for the loss of part of the Bulgarian forest and the problems that this loss predicts. Particular attention is paid to the shortcomings in the Bulgarian legislation, which help the felling, arson and eradication of part of the forest massifs. The lack of an overall economic assessment of forests creates additional negative consequences. The scarcity of the environmental benefits of forests leads to their destruction in key places with severe social consequences.
JEL: D04; O1; Q5; E7; L51