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GOOD GOVERNANCE IN BULGARIA: PERCEPTION, ACTION, RESULTS, APPRAISALS Prof. George Manliev1* ABSTRACT This paper is the first systematic attempt to present the good governance in its entity with regard to its origin, development, state of affairs and problems to be resolved. This task is far more complex and comprehensive which is why the herewith presented analyses represent a first approach towards one more detailed research into a topic which determines the current governance approach within the democratic countries. Keywords: Public management,Good Governance; New Public Management (NPM); Policy making, Impact assessment; Public- Private Partnership (PPP) . Good governance – imperative in the contemporary public management

3 styles of governance are to be determined in the field of public management. They reflect the dominant scientific and political views regarding the place and the part of the contemporary state1: Firstly, the traditional bureaucratic management where the state governance is adhered to the legal regulation and the functions of the bureaucrats is limited to strict compliance and implementation of the legal norms and principles. It was the leading method of governance till the end of 70 Years of the last century. Secondly, here is the place of the New Public Management where the efficiency of the public activities is taken to the forefront by the state. This model enforce competition (albeit in adapted form) as a reliable tool for achieving of greater efficiency in the activities of the state institutions. Therefore, the New Public Management is characterized as a market- oriented approach to managing the public sector. He changed the paradigm in the management: enforcing competitive provision of public services, including through private companies. Thirdly, the good governance, which is formed as a concept and policy in the last 10 years builds on the positive elements of the previous two models and includes new features related to the democratic values of society. There are many definitions of good governance, but one of them is the most complete in presenting its essence: "good governance is a consensus reached by the government, citizens and the private sector with regard to the state governance" 2 Apparently, good governance is a new model of making and executing of management decisions that pursue to achieve a high degree of satisfaction of the public expectations by the operation of the governments. This is a joined-up management, which includes all interested social groups in the process of making and implementing of the public policies. Therefore, good governance is characterised as management in partnership with the stakeholders (participative governance) 3 The dynamics of the social development has led to the evolution of the concepts and models of public sector management. They are based on 3 different paradigms4. Bureaucratic management is based on the understanding: the legal regulation is a condition for effective governance. It has created consequential paradigm: first-the law, then the action! Bureaucratic management is an alienated model of governance because society as a participant in the process of decision making is disregarded: they are the result of the legal regulation.

1* Lecturer on Public Management and Public Finance, Technical University–Sofia, Faculty of Management, Sofia, Bulgaria ; e-mail: [email protected] 2

The concept of the New Public Management has moved the center of the gravity of the management: a model of competition is introduced (where possible) instead of serious legal and bureaucratic as a condition of proven effectiveness in the private sector, including in the public sector governance. The ideas of the New Public Management derived from the management of the mature corporations, which is why it closes the gap between the state governance and the corporate management. Good governance is based on more mature democratic values. It requires vision, actions and results that are a consequence of the involvement of community groups instead of being a consequence of the professional activities of a group of bureaucrats (confined to the law) or to other group (confined to the market operation). This governance is based on shared values and actions, which generates a high social responsibility and involvement in the management. It pursues to establish confidence in the state governance, which is lacking under the conditions of bureaucratic or market aloofness of the established models of governance. However, what are the principles that characterised the good governance as a new model of governance of the public activities? In various studies a combination of principles are indicated, which differ in one or another degree. The publication of SIGMA № 27, OECD5 can be considered as the most complete and adequate analysis. In it, the following principles of good governance are described:  Rule of Law

 Openness and transparency

 Effectiveness

 Efficiency

 Accountability

 Predictability

 Focus on the needs of the citizen (citizen-centric)

 Partnership with stakeholders

 Coherence in the activities of the state authorities

These principles are derived and synthesized from the practice of the European countries. In this light of the above, they are regarded as an ideal model that cannot even meet in its full scope in countries with high levels of public administration, such as the UK, Sweden, and Denmark. This ideal model, however, is established as a benchmark, a guideline, which should lead and direct the actions of every democratic state. At the same time, the World Bank Institute has developed general indicators, by means of which a measurement of the most important aspects of good governance has begun: the rule of law, openness and accountability, political instability and violence, government effectiveness, regulation of the business activity, tackling corruption. The levels of these indicators have been measured for several years already in a large number of countries, thus allowing the assessment, in comparative degree, the extent of application of the principles of good governance and the progress made by the individual countries. Good governance should not be regarded solely as an instrument for change in the actions of governments to create confidence in them as responsible and committed institutions. It creates conditions that contribute to sustainable economic development and improve quality 3 of life in different countries. That is why the good governance exceeds the previous models because it not only achieves legitimacy and effectiveness of the actions of the state, but it also creates trust in the functioning of the state authorities. Ultimately, they are created to serve the society and solve its political, economic and social problems in the best possible way. In this aspect of content, good governance is a concept, policy and practice without borders! It is imperative in the contemporary management of each country. The question is how it can become an extended practice in the functioning of each individual government? There are national peculiarities that shape the process of adoption and application of principles of good governance. Some states do it more quickly, others more slowly! Besides, globalization creates a common transfarable mechanism that leads to the spread of ideas, political decisions, actions and practices worldwide:  Conceptual development and enrichment through academic research and publications

 Dissemination of knowledge leading to national acquaintance, rationalization and actions for their implementation as national governance

 Increase the level of awareness of professional groups in the society, which enforces legal regulations and actions aiming at creating partnerships and respective responsibilities

 Creation and dissemination of practices that illustrate the application and the actions of the principles of good governance

 Periodic analysis and evaluation of the extent of application of the principles of good governance and the adoption of new measures for their approval.

. Preparation and membership in the EU - driving force for introducing the principles of good governance in Bulgaria

In its work, the European Commission as a supra-national authority stated in 2001 in its White Paper the adoption of the principles of good governance (www.europa.eu.int.com). It leads its activities guided by the principles of openness, commitment, responsibility, effectiveness and completeness (consistency).6 There is no doubt that if the executive governing body of the EU shares the good governance in its activities, it will require the same of the governments of the Member States: “ the reforms they have to undertake, pointed out acting president of European Commission R.Prodi, from other European institutions and national governments … will play a critical role for transforming the EU in the real union of the Europeans” 7 Under many circumstances, the governments of the old EU member states to one extent or another adapt to good governance. However, this prove to be task with increased difficulty for the new member states, where certain prerequisites for rapid adoption and implementation of good governance are missing. Therefore, in the negotiation process, which was connected with the harmonization of legislation and absorption of EU funds, the Commission require that the principles of good governance should be incorporated in strategic documents, policies and actions of national governments. This was the first and very important channel for transfer of knowledge about good governance and their distribution among politicians, officials and other community groups. When Bulgaria began negotiations for EU membership the country has no clear concept on the model of public management. Through contacts and scientific knowledge transfer certain 4 public figures, politicians, senior government officials and representatives of NGOs gain an understanding on the principles of good governance and the policies for their implementation. The intensive negotiations for membership of the country in the EU in the period 2002-2006 years increase knowledge about good governance as a concept and policy. A critical mass of national knowledge was created that with the mandatory requirement and support of the EU led to the rapid incorporation of the principles in the harmonized laws and actions of the government. In this initial stage of formation of political understanding of good governance, the declarations of attachment to them were more powerful than practical actions for their implementation. The reason for this behaviour is tied up to the change, which required the destruction of bureaucratic management and enforcement of the rules and principles of good governance. Public Management, however, is a conservative system, which required time for the control and rationalization of the new values. Last but not least, good governance breaks monopoly power of politicians and bureaucrats, because it requires transparency and results from their actions. The dichotomy in the behaviour of political and administrative elite in the country: "yes" to words for good governance, even their inclusion in strategies and laws, but "we know best” approach in practice put at stake the EU membership of Bulgaria in the period 2005-2006. The EU's message was very clear: You have to not only harmonize the laws in accordance with the principles of good governance, but we require that you put in practice and guarantee their effective application! The governing authorities in the country understood that good governance is not only the sharing of good intentions, but also requires action, practices and continuous efforts for its approval as a standard of conduct of politicians and bureaucrats. We have no alternative! The preparation for EU membership has proved to be an external coercive force to adopt and implement principles of good governance. It is doubtful whether without this circumstances the political elite of the country would have taken decisive steps to promote good governance. However, this is an important lesson learned for the new democracies in which the internal forces are weak to enforce the principles of good governance. Ultimately, however, the changes in the spirit of good governance strengthen the democratic values and carry many benefits for society even with the cost of outside influence.

. Legislative changes for better governance

There exist two approaches to adoption and implementation of the principles of good governance. The first one: method of leadership and entrepreneurship, under which the public organisations` directors act as leaders: they appreciate the new idea, inspire creativity, encourage innovation and create conditions for its assimilation from the team, assist the acceptance of an internal normative statement (regulation), manage and encourage the application of the innovation, establish it, evaluate the outcomes and make amendments to secure more effective actions. This is a creative process, which calls for joint leadership and the attainment of „fast triumphs” in the change process. The final results become a good practice and make possible the art to master these skills and their fast evidence based transfer accessible to other state organisations.8 By so doing the front of the change in the spirit of the Code and good governance is broadened and reinforced. The approach outlined above is valid for government, administration and society with a higher degree of maturity. In them democratic principles are established, strong professional ties are maintained, great experience in innovations and change is accumulated, more mature political class and better functioning administration is formed. Many of the above mentioned preconditions are missing in the newly erected democracies, i.e. the countries from Central and Eastern Europe. That is why the here-indicated approach is hardly applicable in their work practice. 5

The second approach can be characterised as traditionally bureaucratic, associated with process only in case there is a legal regulation. Without it there is no initiative, proposals for innovative and practical actions to better governance. This is a typical picture for many Eastern European countries, including Bulgaria. In this case the resolution is to incorporate the principles of good governance in the harmonized laws and their application in specific policies of the state. For a period of several years, Bulgaria has adopted hundreds of laws that were harmonized with European Community law. This major change significantly raises perception of good governance as a legal regulation and practice. In the same time there was a rapid construction of business representative bodies and the development of powerful NGOs. Thus the preconditions for good governance were established: except the cohesion between governments, social partners and non-governmental organisations. This has proved to be the most problematical question. There was an ongoing dialogue but it was episodic, slightly formal and ineffective. In order to adopt the principles of good governance the state and local authorities have adopted special laws in their work. For a period of ten years entirely new laws were adopted (some of which were further harmonised and modernised) the Law on Administration (1998), on civil servants (2003) on administrative services to citizens and business (2004), on the Public Procurement (2004 ) on the concession (2002), on the Access to Public Information (2003), on the state budget (2006), on the Local Government (2002), local taxes (2006), Ombudsman (2007), Administrative Procedure Code (2007). Last in this sequence is the Law on conflict of interests (2009), which regulates the conduct of MPs and senior government officials on business related subjects. In its entity, these laws form the backbone of good governance of the state. They set standards and procedures to eliminate the arbitrary actions of politicians and officials and therefore largely ensure compliance with the principles of legality, transparency, efficiency, predictability, accountability, customer care of the state.

. Shared vision for the future and strategic actions for its implementation

Bulgaria's EU membership is like a dream come true for Bulgarian society. It can hardly be achieved without the efforts of 3 successive governments which, under its mandate fulfilled its commitments for the preparation for EU accession. In the round of negotiations the need to develop a series of strategies, which to present the government's vision for the development of certain economic sectors and social activities arises. Documents of particular importance were, namely: National Plan for Regional Development 2005-2015, the National Development Plan of the Agriculture and Rural Development 2005-2015, National Strategic Reference Framework 2006-2015. They served as a basis for negotiating with the EU the financial framework for Bulgaria for the period 2007-2013, which provided financial support for the country under the Structural and Cohesion Fund. The preparation of these documents was a professional effort, but they were discussed at various forums. No consensus on any one of them was reached, but they nevertheless revealed the government's effort to cooperate with its partners. In two sensitive areas for the society: education and health, timid attempts to develop strategies for reform were made. The goals they set were: accessibility, effectiveness, efficiency, care for patients, those were in fact the principles of good governance. The fear of potential loss of voters in the elections restrains the introduction of some market-oriented measures and they maintained their „socialist model”. The reforms in 2009 were once again postponed after the elections. 6

Along with the development of strategic documents for EU, governments lead regular dialogue with its social partners: the nationally represented trade unions and business organisations. In its framework several joint actions were made: First of all, the government and the business agreed to the setting of thresholds for mandatory social security for workers. This was an important social step; Second of all, Government, business and unions negotiated agreement on indicative reference points on wage; Third of all, perhaps of paramount importance: the government endorsed the proposed business 10:10:10 formula for the taxation of individual income and corporate contributions to social security. This was a revolutionary change in economic policy, which was reached after two years of debates. Bulgaria became a very attractive country for investment and business, which contributed to the high growth after 2005 and the increasing income of the Bulgarian population; Fourth of all, a reasonable balance of interests in the European program for the conservation of protected areas „Natura” was achieved. This case was quite complex: ecologists pressed for 33-34% protected areas of the country, the mayors, protested against, as protecting these areas would mean hampering the implementation of major tourist and industrial projects. How the adopted strategies for the development of the country, significant part of which were prepared with the participation of interested groups, were made? However, their implementation has proved considerably more difficult task. Legal restrictions placed on high goals, insufficient coherence of the strategic actions of individual institutions, insufficient administrative capacity, neglect of the partners in the development of business plans for the implementation of strategies myopia and inconsistency in government actions, and possibly others, are the reasons for unsatisfactory implementation of the strategy. As a conclusion what we can point out is that the capacity for the preparation and adoption of strategies by the rules of good governance was formed, but there was a lack of consistent and insistent actions for their implementation.

. Good policy making : legal rules versus discretions

The adoption of harmonized legislation was a precondition for EU membership. This required a parallel and often quick work in the preparation and adoption of laws. As a result, the first versions of the law have to be subject to many amendments. Law enforcement was not effective, as either there was a lack of awareness campaign among the interested groups, or there was no administrative capacity, weak control over the observance of accepted standards and rules of conduct. However, such difficulties and deficiencies can be considered as consequential in the stage of intensive configuring of national policies. However, the issue of acquisition of modern tools for policy making is another story. Despite the expert support of the EU, Bulgaria partially absorbed the rules for the development of effective policies. Here is the modern approach to policy making 9: First phase: strategic planning - why a new law, when to prepare and when to take action and who bears responsibility for its preparation, implementation and monitoring! The second phase goes through several stages: a) preparation of the new law or policy: the creation of a working group, team competencies development, analyse the experience of other countries, develop a material for conceptual framework and guidelines of the law (policy), interagency coordination, participation of stakeholders in the workgroup; b) preliminary impact assessment - in search of the most rational option for conversion of a European directive or regulation in terms of costs and benefits. 7 c) developing the first version of the law and implementation expertise, intergovernmental and public discussions on the objectives pursued and the expected results from the law; d) development of the last version, entry in the Council of Ministers and National Assembly for discussion and adoption Third phase - application of the law (policy implementation), which requires staff training, awareness campaign and communication with stakeholders (feedback on the effectiveness of the adopted standards, rules and procedures). Fourth phase - monitoring and evaluation of the implementation of the law and the adoption of a plan to overcome weaknesses and over sighted vague standards and rules of conduct.

What is being done and what is missing in Bulgaria in terms of descriptions cycle making good policies? To begin with, a mandatory assessment of environmental impact was introduced. This created prevention against environmental risks of investment projects. Additional requirement that any new law or policy should be accompanied by financial justification: what are the financial costs associated with its conduct! A great deal, but insufficient attempts for the participation of partners in the preparation of laws and public discussion have been made. The control over the laws` enforcement is weak, so that the change is implemented incompletely and inconsistently. Preliminary impact assessment was only a matter of good will, despite the awareness of its effectiveness. Therefore, ultimately no effective preparation and implementation of new laws in the country was achieved.

. Impact assessment: still far from the best European standards

The impact assessment is in the final stage of making and implementing public policies. Therefore, it reveals the extent to which the principles of good governance materialise in the real social life i.e. whether the state institutions and the parties concerned progress in learning and applying the principles of good governance. The analysis is multilayered since it comes to assess the legitimacy, transparency, effectiveness, efficiency, predictability, accountability, customer care. Therefore, our analysis provides only the most common features revealing assessment of performance in making public policies. Firstly, considering the circumstances, every government shall evaluate their own performance 6 months before its mandate to expire. The assessment takes the form of documents that reveal the results of the management. The intention itself is more political, because the government is trying to convince voters in the effectiveness of its actions (the phenomenon known in the theory as a political business cycle!). By this self-evaluation, which is logical to be exaggerated, the Government declared its intention to complete the implementation of the strategic intentions. The pre-election debate itself, however, is a subject of political and social assessments of what the government has done. Therefore, a public procedure that enriches the evaluation of the implementation of the Government and influences the votes of the voters is at hand. Secondly, there should be an internal assessment of the implementation of various state institutions. Most institutions already produce annual reports on their activities. Some of them are quite laconic, others too adverbial, but what they have in common is that the analysis has brought positive results, at least on the surface, and has disregard the weaknesses and the problems as well as the lack of comparability between targets and performance. This is off course a failure as by so doing the real issues are concealed and the vision for their overcoming in the spirit of good governance is ignored. An exemplary of excellent analysis document is the annual report of the administration. Although superficial, it provides a good analysis of the extent to which the administration applies the principles of good governance. The annual reports of the Communications Regulation Commission and the State Committee 8 on Energy and Water Regulation can be assessed as professionally done. The reports of some ministries and agencies sound rather like a PR presentation, instead of reviewing the results achieved in a chronological order, marking the unsolved problems and measures to implement the principles of good governance. Thirdly, external evaluations of the results achieved by the Bulgarian National Audit Office should be required. In every democratic society, the National Audit Office has the authority to make external, professional and independent assessments of the performance of the main authorities in charge of budget resources: ministries, agencies and municipalities. In a few years only the Bulgarian National Audit Office substantially increases its capacity to manage the audit of the performance (value for money), i.e. by actually evaluating the effectiveness and efficiency in the activities of the public organisations. It makes annual or regular audits of the state institutions, which revealed weaknesses in their activity and results in valuable recommendations for improvement having been made. Audit reports are published on the website of the National Audit Office 10 However, in many cases we can come across audits that mitigate the criticism about admitted shortcomings in the management or still others that refer to the expert, rather than the political management of the institutions. Fourthly, external evaluations of NGOs on the level of corruption, public-private partnerships and others need to be implemented. Vastly developed NGOs sector with its highly competent specialists helped Bulgaria in the period after 2002-2003, to provide professional analysis in the specific guidelines of good governance. Very comprehensive annual reports on the level of transparency in the activities of state bodies, especially with regard to public procurement, conflict of interest, environmental protection and others has been published. Several professional contracts for concession were signed by the state and municipal contracts, which revealed the inefficient contracting with private companies. Forums are organised on a regular basis, in which NGOs comment on decisions made by the state, which divert from the principles of good governance. Indeed, NGOs facilitate the conduction of an excellent monitoring process of the key activities of the government institutions. The National Ombudsman and local ombudsmen played a very positive role in protecting the interests of the citizens. Thus, public organisations begin to better organise their activities in their relations with the citizens. The all-comprehensive system of impact assessment allows the revealing of the precise picture of the extent to which the principles of good governance are applied. Certainly it is more adequate in terms of different principles, where there is sufficient evidence and indicators for analysis and assessments.

Case study: The effectiveness of the public programs in 1998, 2007. In 2008 the Institute for Market Economics analyse the effectiveness of the public programs for the period 2000-2008 This is the first large scale survey, which revealed how the state spends taxpayers' money. To this end an analysis of 433 audit reports of the National Audit Office was made, measured by the following indicators: achievement of the planned targets, the presence of malpractices, spending more than earlier envisaged, which means value lost for the society. The analysis revealed the following results: 1. the successful programs are merely 99 433 or 23%; programs with unclear result-141, which may be assessed as semi-successful (32%); completely ineffective 193 or 45% of all the programs. 2. for all the programs the governments have spent 47 billion leva. Of these 20 billion have brought a certain effect; 10 billion - partial results, and 16, 5 billion have been spent with no result! 9

The State institutions challenge the results in the above analysis. It is possible that some estimates have been strained, but the conclusion is quite categorical: the country spends a significant part of poor budgetary resources ineffectively! Source www.ime.bg, 407 , 2008

. Throes of a public-private partnership

The development of public-private partnership on a global scale creates opportunities for its implementation in Bulgaria. The first attempts were made by the municipalities, which are independent in their decision-making from the central government. Sofia Municipality signed two concession contracts in the period 1998-2000 for the litter collection (three Bulgarian companies) and for water-supply and sanitation (with an English operator). The results from the two contracts have proved to be very unfavourable for the municipality and too profitable for the private companies. The subsequent analysis of the contracts revealed many weaknesses in their preparation and the inclusion of unfavourable terms for the municipality. After serious negotiations, one of the contracts was terminated in 2009 and the other corrected. The worrying problems experienced in the public-private partnership with private companies made it necessary for the Government to make a series of amendments to the Law on Concessions. It had already regulated the procedures for the preparation, conclusion, control and termination of the concessions. Within its frameworks, the state granted concessions to private companies for exploitation and management of ore and non- metalliferous deposits, mineral springs, beach stripes, ports, airports and other, while the municipalities - a large number of small projects for management by private companies. There are three cases from the Bulgarian practice which are particularly indicative of the difficult steps in the walk of a public-private partnership. The first one is from the contract with the Canadian company Dundee International, which is the concessionaire of the gold deposit at Chelopech; In 2005 Bulgaria began renegotiation of this concession. After 3 years of difficult negotiations, Bulgaria improved significantly the conditions of the contract. It is now a good example of how the partnership can bring mutual benefits for both private companies and government. The second case is related to the concession of the two Black Sea airports of Varna and Burgas. After a dramatic, but legal procedure, the concession was negotiated with the German airport operator Fraport (although his bid was ranked on the second place). He meets its obligations in the contract correctly, which is why the concession can be considered as successful. The third case relates to the concession of Trakia highway. Already during the negotiation process, tremendous public debates had arisen, because the negotiations and procedures were carried out in opacity and without clear information about the benefits for the society. Using a loophole in the law on concessions, the government contracts directly (without competition procedure) with 3 Portuguese companies and 2 Bulgarian ones, the Trakia highway`s concession for a period of 30 years. Analysis revealed many unfavourable provisions for our state, which require new negotiations to improve conditions. The European Commission designate the case as a bad practice, because such a big deal is negotiated with selected companies, rather than on competitive base. Ultimately, the government was forced to terminate the preliminary concluded contract and to seek other schemes for the construction of Trakia motorway. After a ten-year development and after quite a few scandalous practices it can be assumed that Bulgaria has already gained experience and skills to effectively negotiate concessions. The law that regulates them underwent a series of rational amendments, the ability of the administration to develop a preliminary analysis increase significantly, the control of the execution of contracts has become more effective and the procedures become more open. 10

There are already many best practices in the implementation of the concession contract. However, other options for public-private partnership are seldom used. One reason for this is the lack of a special law to provide a framework for their development. It is expected that its adoption will be in 2010. Overall, however, Bulgaria has succeeded in a relatively short period, but with the price of scandalous transactions and public losses, to develop partnerships between state and private companies. However, the transparency of the negotiation procedures remains the biggest problem facing this promising form of management of the public property.

. Good Governance at a municipal level

The good governance is an imperative for the local governments. Their decisions directly affect the lives of local citizens, which is why they are directly interested in taking part in the process of local governance.11 This feature requires that all local partners: political leaders, local administration, local NGOs, local business unions, local citizens to become part of the decision-making process and implementation from the local government. Only then would the local authorities receive the support and the recognition that they work for the benefit of the local community. The honest and open communication with local citizens and their associations is a prerequisite for good governance at local level. It creates confidence that the local government has identified the problems of the local development, has brought priorities, developed plans and measures to achieve them, seek the support of partners for their practical implementation and improve the living conditions of the local population. Therefore we can define the proper management of local government and administration as governance, which shows priorities, develop policies and implement measures that meet the needs of the local community in the best possible way. The principles of the good governance at local level are honesty and responsiveness to the problems of the local community, efficiency and effectiveness, openness and transparency in the decision-making process, ethics (honesty) to the local residents and partners, financial stability, development of the cultural traditions and accountability to the partners. Essential for their fulfilment are: Firstly, leadership and inspiration for change; Secondly, meaningful dialogue with local representatives on issues of local development; Thirdly, a decision making which takes into account the interests of the local community; Fourthly, participation and control by the local communities in implementing the local policies. There are many good examples of local governance in accordance with the principles of good governance. Strategic thinking is now a reality with the development of a strategy for development of each municipality in Bulgaria. Strategies are complex because they include measures and actions in all spheres of local life: work, education, recreation, environment, spiritual life, social care, local infrastructure, and communications. They are supported by the needed financial resources to ensure that local public services improve the living conditions of the local community. Many municipalities are governed by mayors who have drawn excellent plans for economic development of their communities. The mayor and the local administration maintain regular dialogue with representatives of the local community. The meetings of the municipal councils are public and their decisions are distributed through the local media. Many local governments adopted in their activities the ISO 9000 standards. Numerous NGOs are active in the implementation of local policies, including the implementation of civil control. However, there are many examples from the other side of the spectrum, extremes such as: autocratic decisions of mayors, non-transparent implementation 11 of public procurements, corruption, disregard of development of European projects for capital projects, etc. All this indicates that the good governance is not homogeneous regarding to the activities of all municipalities, as well as to the scope of its principles. The biggest problem, however, is how to make good governance a typical phenomenon for each and every municipality in the country? Institutional support, training, sharing best practice with European municipalities to develop new regulations for the management of the municipality, a continuous dialogue with local partners. .

Conclusions: The analysis of perception and application of the principles of good governance in Bulgaria showed that they are transferred and imposed by the EU guidelines for modernisation of the state administration. This was an imperative requirement for the successful conclusion of the negotiation process for EU membership and the accession of the country in the EU. Good knowledge and understanding on legal regulations, institutional capacity, monitoring system, control and amendments in the process of policy making, increased public intolerance to acts of mismanagement are now in place. This contributed towards strengthening the principles of good governance in most government organizations. Despite the progress made, quite a few white spots are now apparent in respect to: - Unevenness in the application of the principles of good governance in the institutions - Insufficient knowledge and weak capacity in many institutions to bring their management in accordance with the principles of good governance. - As a whole, local authorities (municipalities) continue to be uncommunicative and closed institutions in which transparency and accountability to the citizens concerns are more statements than practical actions. - Public procurement and public-private partnerships are new sources of opacity and corruption in the conduct of many public authorities and municipalities - Conflict of interest occurs at the highest political level, which undermines the entire movement towards the principles of good governance.

Which are the approaches and decisions that are necessary to enhance the application of the principles of good governance in the country? Firstly, EU press continues to be the most important factor that imposes the imperative of good governance in all levels of the country Secondly, the political determination to implement the principles of good governance in their entirety, along with legislative changes is a prerequisite without which the good governance remains only a declaration Thirdly, enhancing the skills levels of managers and employees in state and municipal authorities to apply in their everyday practice the principles of good governance Fourthly, the ability of NGOs to analyse the effectiveness of government as well as the freedom of the media to reveal the diversions in this direction has to be strengthen. All things considered, actions of politicians, managers, employees and citizens are required in order for the good governance to become irreversible process at all the different levels of public sector management.

Literature: 1. George Manliev, The New Public Sector Management, Stopanstvo,Sofia,2006 ,p.15- 23; 310-330; 2. Management for the future,UNDP,2006, www.undp.org/governance/publications 3. www.governancehub.org.uk 12

4. The New Public Sector Management , p 15-19; 297-310 ; 5. European principles of public administration,1999, № 27, www.oecd.org/sigma 6. European governance,white paper,EU, 2001, c.17-18(www.europa.eu.int.com) 7. ibidem, p.4 8. Guidance for strategic planning and policy making in Bulgaria, Programa PHARE, BG -0103.01, 2005, Council of Ministers 9. Modernising Policy Development - Nine Features of Modern Policy Making, www.cmps.gov.uk/policyhub ; 10. www.bulnao.bg 11. Strategy for innovations and good governance on local selfgovernance,Declaration from Valencia 2007, Counсil of Europe