Issue 2, 2010

This is a review of issues concerning the role and effectiveness of the EU Structural and Cohesion Funds in different countries before and after the EU enlargement since 2004. Based on Ireland’s experience this analysis focuses on the impact of the cohesion policy on the small open economies under the conditions of economic crisis and the implementation of the Lisbon Strategy ’2000. An integrated micro-macro approach is presented, attempting to elucidate the policy contradictions and the results from the applied programs at a highly aggregated level, making use of macroeconomic models (macro or top-down) and at a disaggregated level (micro or bottom-up). The thesis is defended, that the interaction of both approaches shall enable the impacts on the micro-level to be linked with the impacts on macro-level (GDP and employment).

JEL: F01; O12; P51

The paper outlines the most important features of the post crisis Bulgarian economy. Recommendations are made on the economic policy as well as some projections for the following 15-20 years on: necessity of sustainable growth; growth of GDP and employment; modern human and intellectual capital; mitigation of the demographic crisis; modern production, consumer and export patterns; rational correlation between financial and real sector; active regional policy; total modernization of technologies; upgrading the quality of foreign direct investments; new sources of energy and reducing the energy intensity of the economy; development of ecology friendly agriculture; expansion of international tourism; development of modern infrastructure; promotion of integration into the European Common Market; setting up of European companies; increasing role of foreign trade; upgrading the competitiveness of the economy; applying flexible macroeconomic policies; strengthening the social orientation of the economic policy; revival of the modern Keynesian economic policy; promotion of the principle “market and state”; necessity of catching up economic development.

JEL: O2; O1

The current differences in the global economic literature have been taken into consideration and definitions are formulated for tax neutrality as opposed to tax expenses (tax privileges). The issues concerning the borderline between these two principles are outlined, as well as the opposition between the ideal concepts of the theory and the unavoidable compromises of the practice. The key obvious forms of tax expenses are revealed as deviations from the horizontal tax equity principle. The advantages and the disadvantages of the tax neutrality and the tax expenses are analyzed as contradictory approaches according to the contemporary economic theories. An attempt was made to contribute to the clarification and alignment of the terms of the available theoretical points of view, and to create a “coordinate system” in support of the practical tax policy aiming at a better implementation of the tax equity principle (horizontal and vertical).

JEL: H20, H21, H22, H24, H26

The article highlights the demographic development problems in villages from different planning regions and districts. A comparative analysis is made of the natural movement processes of the urban and rural population in the period between 2001-2007. The data are compared with some European countries. Although the demographic crisis in the villages is a part of the general demographic situation in Bulgaria, certain differences between the cities and the villages are pointed out. The key reasons for such differences are disclosed. The structure of the inner-migration movements is analyzed. Conclusions are made on the dynamics of the overall and the rural population in a regional and district aspect. Some proposals are made in the sphere of the demographic policy on the birth rate stimulation and the migration policy.

JEL: J11; R11

Ivan Pososhkov (1652-1726) is the author of the first systematic economic treatise in Russia. His works are interesting due to three reasons at least. Firstly, it is worth-introducing some original non-European authors, who are often underestimated, in order to determine their specific features and place in the evolution of the economic and sociological thinking, and to answer the question how much the economic and social thought reflects the characteristics of the socio-economic development and to what extent it is a result of propagation of economic ideas. Secondly, such an analysis would be of benefit not only to enrich the history of the economic and social thought, but it could also contribute to the development of the theory itself, to generate new trends for analysis (such as the Pososhkov’s case of the “power-money” relation). Thirdly, even the fact alone, that Pososhkov works in a transitional period, which is difficult for Russia (the reforms made by Peter the First), he gives valuable practical ideas for the contemporary age, for the present-day situation in Russia and for the post-Soviet period.

JEL: B00; B41

The main stages are monitored from the upward price trend of the housing market in Spain in the past 15 years and its shrinking since the beginning of 2008. The main significance is outlined - of the increasing mortgage crediting and the decreasing interest rates for the construction growth and the real estate prices during the period of the study. Having about 19% unemployment, Spain is one of the hardest hit countries from the global crisis, and the consequence thereof is going to be overcome quite slowly, due to the situation in the housing sector. In conclusion the future economic pattern in the country can not be based any more on excessive development of cyclic sectors such as construction, real estates and the market of vacation settlements of the “Second Home” type.

JEL: G21; R21; R31