The more the state "plans" the more difficult
planning becomes for the individual.
Friedrich von Hayek
IME: Subsidies and Tax Reliefs Damage Bulgarian Agriculture

IME: Subsidies and Tax Reliefs Damage Bulgarian Agriculture During the period 2001-2007 the share of the agricultural sector in the GDP decreased more than two times, even though the Bulgarian economy was growing rapidly. This development is in contrast with the state assistance to the agricultural sector over the years, which have been growing continuously.

Government Made the Financial Crisis; Let Us Not Make It Worse

Representatives of economic policy organizations throughout Europe released the following recommendations to deal with the global financial crisis.

IME Students Club 4th meeting – lecturer Simeon Djankov

On 18th of June 2009 IME Students Club gathered again to meet Simeon Djankov, chief economist of the finance and private sector vice-presidency of the World Bank and the creator of the Doing Business series. Mr. Djankov talked about the long-term policies in Bulgaria, focusing on healthcare, energy and the state ownership. More than 80 students participated actively in the discussion following Mr. Djankov lecture.

The known unknown Institute

The Institute for Market Economics (IME) is part of the history, if of nothing else, than at least of economic policy and the mind set against the Bulgarian economic phenomena. Many things about the Institute are unknown, others are forgotten and its biography is becoming mythical. This year during January and March IME was celebrating its 15th anniversary. This is a suitable occasion to try to explain part of its peculiarities and successes.

How Do You Make a Good Policy?

The institutional framework of the economy, which is determined by the type and design of the laws, the acting rules and regulations in a country and the way they are applied in practice, is a prerequisite for the existence of a favorable business environment, which is directed toward the development of the entrepreneurship and innovation...

Trade Deficit?!

One of my main claims in the article published a week ago “The Growth of GDP and the problems during 2008” was that the foreign trade deficit was not Bulgaria’s most serious problem in the last year and that actually the deficit was created by something good – the record breaking for the country inflow of foreign investments. My other position, respectively, was that during the crisis, when the foreign investors are pulling out of Bulgaria and our foreign trade is shrinking, that would lead to reduction of the trade deficit.

Celebrating 27 May 2009 as a Freedom from Government Day

27th May 2009 is the day on which we stop working for the state and start working for ourselves. Taxpayers in Bulgaria have to work almost 5 months to pay their taxes towards the state budget. They work for themselves only 7 months.

Free Trade Petition

... Accordingly, we the undersigned join together in a plea to the governments of all nations to resist the calls of the short-sighted and the greedy to raise higher the barriers to trade. In addition, we call on them to tear down current protectionist barriers to free trade. To each government, we say: let your citizens enjoy not only the fruits of your own fields, factories, and genius, but also those of the entire globe. The rewards will be greater prosperity, richer lives, and enjoyment of the blessings of peace. The Atlas Economic Research Foundation and the International Policy Network invite you to add your name to this petition which will be unveiled to media on April 1st, the eve of the G-20 summit, at an event in Mayfair.

IME STUDENTS CLUB

...Almost 100 students from various universities attended the first meeting and took active part in a discussion about the financial crisis, skillfully moderated by our guest-lecturers - Kalin Hristov and Georgi Angelov.

The Government’s Spending

During the past few months the Government announced several times its intentions for big spending for a number of activities. On the other hand, the financial crisis opened a new opportunity for political spending. The big spending is defended under the so-called Government measures against the crisis. Here the Bulgarian Government has common grounds with the new Obama administration – one part of the programs in both countries for stimulating the economy is directed towards infrastructure projects.

Question mark (?) and Exclamation mark (!) for the Budgetary Expenses?!

The crisis affected everything – the economy stopped growing, the unemployment began to increase, the foreign investments disappeared somewhere, getting credits became very complicated, the revenues to the budget shrunk and in general things are not rosy at all. However, there is something which is not affected by the crisis. Something which is so fare from the market processes and in general from rational thinking that there is not a crisis which could frighten it. Naturally, I am speaking about the so called budgetary expenses...

GDP Growth and the Problems During 2008

The National Statistics Institute (NSI) published the data about the GDP for the last year. During 2008 GDP of the country reached 66 728 million levs, which means that in real terms, compared to 2007, the increase is by 6 per cent. The data shows that the GDP per capita is 8 712 levs.