Corruption Is Main Obstacle for Business, Democracy in Bulgaria - Think Tank

Sofia, February 1 (BTA) - Corruption is the main obstacle before business and democracy in Bulgaria, although the country is also lagging behind in other fields such as education, which does not meet the expectations of business, as well as the independence of the court and the media, Peter Ganev, Senior Economist at the Institute of Market Economics (IME), said here Wednesday. He was speaking at a discussion titled "Democracy at a Crossroads".

Bulgaria's assessment in the Freedom House Countries at Crossroads 2016 report shows serious backwardness compared to the countries in Central Europe and the Baltic region, IME said. What is more, this country's result has deteriorated compared to 2007, particularly in terms of the independence of the judicial system.

An IME survey conducted among students and experts in November-December 2016 shows that most of them think democracy has deteriorated in the past five years, Ganev said. The main problem is not just the lacking rule of law but the lack of effective division of powers in general. In other words, the involvement of business and state, coupled with the attempts to take over a range of institutions, is just accepted by a large number of the people in Bulgaria. The bankruptcy of the country's fourth largest bank, Corpbank, in 2014 is perceived as an expression of this model precisely, the expert added.

Bulgarian people agree that there should be a reform in the judicial system, particularly of the prosecution service, which needs greater accountability, decentralization and transparency.

The respondents in the survey defined two most important tasks: dismantling the clientelist model in Bulgaria and improving the business climate. These come much ahead of raising incomes, Ganev said.

According to IME experts, the link is visible in Bulgaria between economic populism and retreat from democratic values.

Perceptions are strongly influenced by dependent media. People lose interest in politics and the lack of punishment and the stalled judicial reform are an invitation to corrupt politicians to become even more corrupt and take over the state.

External pressure is not so strong any longer and EU membership is not enough to endorse democratic values in this country.

At the same time, the interest of people in corruption and the condition of the judicial system cannot be ignored any longer, Ganev added.