Issue 4, 2002

An overall picture of the contemporary condition of the economic science in Bulgaria is outlined, resulting from its internal changes during the last twelve years. The analysis is carried out in five main directions - redefinition of the subject, principal theoretic and methodological orientations, topical orientation and financing, social area and academic debate, and views on further development. The situation before 1989 is presented in brief in order to position and understand more clearly the problems and processes of development. Each separate direction is singled out in a way to ensure comparability between the different countries.
The principal conclusion is that the economic science in Bulgaria has undergone sufficiently serious and profound changes in its subject matter and methodology of research and instruction in its connection with the world economic science, and in this number with the European economic science. This is a good prerequisite for a successful inclusion of the Bulgarian economists in the integrated space of the European research effort.

The condition and the trends of the evolution of the Bulgarian capital market are analyzed in the context of the process of incorporation of this country into the European Union. A comparison is performed of the characteristics of the capital market in Bulgaria with the markets of other countries in transition of Eastern Europe. Resulting from this analysis is the conclusion that at the present stage the capital market in Bulgaria has a low level of performance in the sense that it does not carry out any of the functions that characterize its role in the developed market economies.
It maintains the point of view that in consequence of the low level of performance of the capital market, the growth of the economy is slowed and the real value of savings is undermined. Well grounded is the view that there are some signs of a substantial shortage of financial instruments suitable for the investment profile of institutional investors. Debated are the possible measures for further building up of the market and increase of its performance, as well as probable negative consequences in case that such measures have not been adopted.

Basic components of values of biodiversity are analyzed. The methods of estimation of various benefits of biodiversity conservation are exposed with an emphasis on the contingent valuation methods. On the basis of the prepared by the author questionnaire various Willingness-To-Pay (WTP) values are estimated for the non-use value benefits. Various estimations of the basic components of the value of biodiversity are commented based on case study of the Bulgarian Danube islands. The results demonstrate relatively high WTP in favor of restoration of natural forests on the Danube islands, which is expected to pull the development of tourism and recreation, commercial and non-commercial fishing and hunting. It is expected that the growth of revenues from activities stimulated by biodiversity conservation as tourism, recreation, etc. will compensate the reduction of revenues from the reduced logging of timber from the poplar plantations.

Discussed is "the new economy" in connection with the discussion still going on in international aspect for its scope, contents and statistical measurements. It includes all changes and effects in productivity and growth generated by ideas, information, information and communication technologies and their infrastructure with the globalization of the markets. The statistical measurements of the new economy are based on the system of national accounts and their principals and interactions. Analyzed are empiric results for added value, employment, and productivity of labor in the new economy of countries in the European Union, USA and Japan. Generalizations and conclusions are drawn for the necessity of improving the methodology of statistical measurement of this economy.

A retrospective analysis is made of the contradictions between countries (communities) for liberalization of international trade, or for protectionism in its realization with agricultural products. The analysis includes the contemporary and the prospective trends in the development of this process.
The liberalization carried out so far by the World Trade Organization (WTO) has a strong negative influence on the economic development of the developing countries. On the basis of an analysis of the manner of the implementation of the agrarian reform, and more concretely the land reform in Bulgaria, the negative impact of the full liberalization of prices of the agricultural products on the overall development of agriculture in this country. Further more it is established that the negative consequences of the process of the integration of countries-candidates for membership in the European Union will manifest themselves with greatest power in the economies of those who will be the last to acquire full membership.

The characteristics of the trade in one type of derivatives are examined - options on futures bond contracts. Described and defined is the mechanism of the trade in options, as well as the possible strategies for the risk management through their purchase on these contracts. Different versions and modifications of spread, straddle, strangle and some variants of synthetic positions have been grounded in the basis of similar strategies. In general the strategies with options on futures bond contracts concentrate on limiting of possibilities for losses by undesired change in the rates of bonds by the futures market.