Impact of Globalization on Bulgaria

Impact of Globalization on Bulgaria

Introduction

In 1990, The Republic of Bulgaria began the transformation from a communist satellite of the Soviet Union to an independent nation. The socialist government was ousted in 1996, setting the stage for democratic elections. Originally, the move toward a market economy brought corruption and crime along with high inflation and unemployment. Subsequent political and economic reforms resulted in Bulgaria's entry into the North Atlantic Treaty Organization (NATO) in 2004 and should eventually allow Bulgaria to join the European Union. Bulgaria's diverse economy is heavily dominated by services, which employ 56.3 percent of the labor force.

Bulgaria's posttransition economy has resulted in steady growth and low inflation (Petko, 2000); however, an unemployment rate of 12.7 percent, corruption, and a weak judiciary continue to present problems. Bulgaria has one of the highest poverty rates of any country in Europe (Lampe, 1986). The official figure is 13.4 percent, but unofficial estimates suggest that as many as 45 percent of the population may be poor. Approximately 22 percent of Bulgarians live on less than four dollars a day, and 16 percent of the people are undernourished. Women and children are particularly vulnerable to poverty. Inequality also exists, with the richest 20 percent claiming 38.9 percent of resources and the poorest 20 percent living on 6.7 percent of remaining resources. Bulgaria is ranked 31.9 on the Gini Index of Human Inequality.

Bulgaria still experiences the difficulties of the transition to a democratic society and a market economy (Notburga & Wagner, 1997). The country has achieved considerable progress toward democratization and economic growth, but many political difficulties remain. The mass media often operate as the fourth estate, strongly influencing the political, economic, social, and cultural leanings of the public.

Globalization

Globalization is the term used to describe the condition that prevails when communication (Bhagwati, 2004), people, goods, services, and capital move more freely across borders. Often globalization is the result of technological improvement that facilitates communication and transport and economic liberalization that gives people the freedom to make use of them. It is the most important international phenomenon of the early 21st century, touching almost all aspects of life, politics, and business.

Impact of Globalization

Bulgaria has traditionally promoted globalization because of its positive impact on civilian's lives. Globalization is an international extension of free markets and open societies. In effect, it is capitalism without borders. In closed societies, people are limited to what is developed locally; they buy locally made products from a local supplier, they work for local employers, and they have to borrow money from the local bank. Globalization permits us to interact with whomever we choose, and to buy from, to work for, or to borrow from others than the local employers and suppliers. These greater horizons permit people the freedom to look for alternatives and the dignity to set their own terms for cooperating with others.

Globalization also increases material progress. When consumers are able to choose alternatives, domestic businesses are exposed to competition from the world's most efficient ...