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CO%86,1(66 NNECT January-February 2017 $ආൾඋංർൺඇ&ඁൺආൻൾඋඈൿ&ඈආආൾඋർൾංඇ%ඎඅ඀ൺඋංൺ SINCE 1990

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Legal: 500: Chambers Europe: Chambers Global: IFLR 1000: “Excellent, comprehensive “More western than others” “Innovative and practical, “They are the best and responsive services” “One of the best in Bulgaria” entirely client & business when it comes to advising investors, “Excellent – prompt, oriented” they know how the law works…” efficient and extremely knowledgeable of the local environment”

e-mail: [email protected] ∙ www.penkov-markov.eu ∙ telephone: (+359 2) 971 3935 editor's notes 1

Labor Conundrum

Labor market in Bulgaria resembles a riddle, overwhelmed with opposite-side arguments in a way that whatever you say, it may well be true.

There is a high percentage of youth unemployment, but at the same time big portion of highly qualiÀ ed older professionals were kicked out of the market due to their retirement age. Moreover, the labor market is not prepared for the new challenge of older workers’ needs and the pension system is increasing the retirement age. Qualitative labor shortage versus being an overqualiÀ ed professional striving to À nd a decent job, are another two sides to the story.

In trying to solve the conundrum and indicate possible solutions, Business Connect assembled a medley of opinions from diverse social groups: a former minister of labor and social policy, researchers, AmCham business leaders and leaders of professional associations in the IT, outsourcing and automobile industries. The new political and economic realities will need more diverse human and professional abilities and our magazine has started a discussion about that.

The IT, healthcare, automotive parts industry, manufacturing and tourist sectors are experiencing serious difÀ culties in À nding qualiÀ ed workforce. Companies train their own staff for most key positions since these sectors generally require speciÀ c skill sets. This said, a clear need exists for quality and modern education that creates specialists who have not only acquired professional knowledge and skills but who are capable of independent analytical thinking, who are communicative and intelligent.

From the labor conundrum we went to the human one when trying to answer the question can human bodies regenerate? Not yet, is the short answer. In the cradle section on Page 36 you will À nd more.

We are also looking at the implications of the new Trump administration for businesses, and the pitfalls of its early actions (for more, turn to Page 8).

In Bulgaria a new bill on electronic identiÀ cation was passed in 2016, aiming at the digitalization of public administration services. Read the analysis of Kambourov & Partners on Page 40. To À nd out information on the new companies that got added to the AmCham community, go to Page 42.

Sincerely Yours,

Irina Bacheva Editor-in-Chief Board of Directors of the American Chamber of Commerce in Bulgaria Content President Ms. Krassimira Chemishanska Amgen Bulgaria Treasurer Ms. Stanislava Taneva Citibank Europe Plc, Bulgaria Branch Members Mr. Iravan Hira Hewlett Packard Enterprise Bulgaria Chamber News...... 4 Ms. Iva Todorova IBM Bulgaria directions Mr. Venislav Iotov AIG Europe Limited (Bulgaria Branch) Mr. Petar Ivanov Individual Member Government of Political Balance ...... 5 Mr. Stoyan Ivanov The Coca-Cola Company Bulgaria Mr. Sergey Koinov AG Capital standpoint Mr. Olivier Marquette AES Bulgaria Detroit to Trump: Mr. Solomon Passy Atlantic Club Bulgaria Ms. Zlatina Ruseva-Savova Individual member Slow Down ...... 8 Mr. Plamen Zhechev Cisco Systems Bulgaria %<&+5,6.$5$'-29 Ex-Officio Member Ms. Maria Galindo Senior Commercial Officer, U.S. Embassy Acting Executive Director Mr. Alex Nestor

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,661; Bulgarians Advised to Invest in Farmland...... 13 :ULWHUV %<,19(6725%*

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Chamber News

Electronic IdentiÀ cation for Public Services

By Mario Arabistanov Technology, Media and Telecommunications Associate Kambourov & Partners Attorneys at Law

In 2016 Bulgarian Parliament passed a new bill on electronic identiÀ cation, aiming to digitalize public administra- tion services and making them faster and more accessible for people. The so called Electronic IdentiÀ cation Act was passed with a delayed effect and shall enter into force gradually, allowing the state to have enough time to implement Julian Spassov (L), AmCham Adds 8 New Members the needed hard- and software needed manager of McGregor for the functioning of the entire system. and Partners law À rm. Eight new members of AmCham took part in the Meet New Members party By 2018 all Bulgarian citizens and on Feb. 1, 2017: Founders Founda- residents shall be able to identify them- tion, Georgiev, Todorov & Co., Ingram selves in digital environment through Micro SSC EMEA EOOD, Institute of an electronic identity certiÀ cate and to Internal Auditors in Bulgaria, law À rm do various actions – including obtaining McGregor & Partners, Refan Bulgaria certiÀ cates from public authorities, À le Ltd., and Techceramic-M. documents, authorization. Read more on page 42 Read more on page 40

Grand Hotel SoÀ a hosted the cocktail with over 100 guests. directions 5

Government of Political Balance The caretaker cabinet is the fi rst serious test of President Rumen Radev

When Rumen Radev won the presidential Those appointments are a sign that while election, he was faced with his À rst serious selecting ministers the head of state tried challenge: appointing a caretaker cabinet. to achieve a balance in party represen- There were concerns that he would not tation. Such was also his main stated cope with it successfully. The announce- appeal to the ministers when the cabinet ment of the cabinet ministers, however, was ofÀ cially presented: “To preserve seems to dispel those concerns for now. non-partisan and institutional sovereign- ty during a wild election campaign.” Representatives of broad political spectrum The caretaker cabinet was deÀ ned as a The À rst concern was connected with his balanced one by politicians from almost lack of political experience. Radev went all parliamentary presented parties, into politics directly from his position of including GERB, as well as by a number a (depoliticized) general in the Bulgar- of analysts. It is also described as such ian armed forces. His task by Prime Minister Ognyan Gerdzhikov, was made even harder by who will be relied on to maintain that Th e President the fact that the caretaker balance as a former speaker of the Na- cabinet was to have a limited tional Assembly. tried to achieve a term – two months until the parliamentary elections The suspicions that Rumen Radev would balance in party on March 26, 2017, which try and change Bulgaria’s Euro-Atlantic meant there were not many course towards Russia have not been con- representation candidates for caretaker À rmed so far. Those concerns were caused ministers. The composition by some statements of Radev during the of the cabinet as announced election campaign concerning Crimea’s by Radev, however, includes status and the lifting of the sanctions representatives of various against Russia. For the time being at least, political powers from the right and the the people in the government who will left, as well as experts, some of whom be directly in charge of conducting those have worked for governments of differ- policies are countering such fears. For- ent colors. eign Minister Radi Naydenov is a career diplomat, a former chief of staff to Prime Caretaker Prime Minister Ognyan Ger- Minister Simeon Saxe-Coburg-Gotha and dzhikov was elected MP twice on the ambassador to Germany before taking ticket of the National Movement for Sta- ofÀ ce. Retired General Stefan Yanev is the bility and Progress (NDSV); Minister of deputy prime minister on Internal Order Health Ilko Semerdzhiev held the same and Security and minister of defense. He ofÀ ce in the Ivan Kostov’s right-wing served as Bulgaria’s military attaché in the government and until two years ago was United States until 2014 and has substan- member of Democrats for Strong Bul- tial experience in NATO’s structures. garia (DSB). Deputy Prime Minister on Bulgaria’s Presidency of the Council of The appointments in the caretaker gov- the EU Denitsa Zlateva was until recently ernment have refuted another suggestion in the leadership of the Bulgarian Social- too: that the cabinet ministers would be ist Party (BSP). Minister of Finance Kiril determined at the headquarters of the Ananiev was deputy minister in Boyko BSP, which supported Radev’s presiden- Borisov’s government and prior to that tial bid. The presence of Socialist cadres he served in the governments of Ivan is quite modest, at least in the higher ech- Kostov, Simeon Saxe-Coburg-Gotha and elons of the executive power. Except for Sergey Stanishev. Denitsa Zlateva, the government has just directions 6 BGNES

At an ofÀ cial ceremo- one more representative connected with tor of NEK and in 2013 was dismissed ny in the Coat of Arms the Socialist Party, though indirectly: Min- by Plamen Oresharski’s government. A Hall at 2 Dondukov Blvd. President Rumen ister of Tourism Stela Baltova was deputy man from the system heads the Interior Radev presented the chairperson of the State Tourism Agency Ministry. For many years Plamen Uzunov structure, members during Sergey Stanishev’s government. worked for the Interior Ministry’s struc- and priorities of the That may well be a political move on the tures in Plovdiv and since 2015 he has new caretaker cabinet. part of the BSP – the negatives of a pos- been lecturer in Criminology at University sible cabinet failure will not be transferred of Security and Economics in Plovdiv. to the party. Priorities Experts While presenting the caretaker cabi- The appointment of Associate Professor net, President Rumen Radev outlined Teodor Sedlarski, Dean of the Department three key priorities. First is ensuring the of Economics at SoÀ a University, as the normal functioning of the state until the minister of economy is seen as a pleasant parliamentary election and holding a surprise. Under his leadership the depart- democratic and legitimate election, which ment has turned into one of the most is actually the main role of the caretaker successful ones in the university. Minister cabinet. Another priority of the head of of Environment and Water Irina Kostova state is speeding up the preparation of is a university lecturer, too. Minister of Bulgaria’s presidency of the Council of the Agriculture Hristo Bozukov has also a re- EU. That is probably the reason why there search background. Minister of Regional is a special vice premier in charge of the Development Spas Popnikolov comes presidency. Radev also called on the new from business – he owns a construction cabinet for transparency and integrity. “I company. The Ministry of Energy is head- will closely monitor whether the caretaker ed by Bulgrgaz’s CEO Nikolay Pavlov. He government has zero tolerance to cases joined the energy sector as member of the of corruption. All vicious practices at the team of the minister of economy and en- ministries should be ended,” he said. ergy in GERB’s À rst government, Delyan Dobrev. Initially he was À nancial direc- The caretaker government has all the directions 7

powers of a regular cabinet appointed ter Saxe-Coburg-Gotha over the deal. by the parliament, except for cases that require an act of the National Assembly, Associate Professor Teodor such as revision of the budget or borrow- Sedlarski, Minister of Economy ing of state debt. Despite the limited time “We are taking steps to quickly boost the it can do a lot of meaningful things – as competitiveness of the well as make serious Bulgarian economy,” mistakes. It must be Sedlarski said upon pointed out that the Term of the taking ofÀ ce as min- term of the cabinet ister of economy. can be substantially cabinet can be He added he would extended if the forma- work towards increas- tion of a regular gov- substantially ing employment and ernment is delayed achieving added value after the parliamen- extended if the through modern indus- tary election. new government tries in Bulgaria. Ognyan is delayed Sedlarski has been the Gerdzhikov, Dean of the Depart- Prime Minister ment of Economics of Caretaker Prime SoÀ a University “St. Minister Ognyan Kliment Ohridski” Gerdzhikov is a professor of commercial since October 2015. He obtained a bach- and civil law. He was elected MP twice elor’s degree from the Faculty of Econom- on NDSV’s ticket. During Simeon Saxe- ics and a master’s degree in business Coburg-Gotha’s government he was administration from Vienna University speaker of the 39th National Assembly. of Economics. He reads lecturers on At the end of his term he was ousted from institutional economics, economic theory, ofÀ ce by the opposition due to the failed international economics, public sector discussion on the Bulgartabac deal in economics, money, banks and À nancial the plenary hall. His removal from ofÀ ce markets. was made possible with the active role of NDSV’s coalition partner, the Movement Nikolay Pavlov, Minister of Professor Ognyan for Rights and Freedoms (MRF), so Ger- Energy Gerdzhikov, Prime dzhikov was more or less victim of MRF’s Upon taking ofÀ ce Nikolay Pavlov said Minister attempt to exert pressure on Prime Minis- his main priority would be preserving Bulgaria’s energy stability. His other priorities include keeping and improving the À nancial stability of the state-owned energy companies, continuing the lib- eralization of the electricity market and projects for diversiÀ cation of the sources and routes for energy supplies.

Pavlov was À nancial director of state- owned National Electric Company, but in 2013 the government of Plamen Oreshar- ski dismissed him. After GERB returned to power in 2014, he started working for Bulgargaz and in early 2016 became its CEO. standpoint 8

Detroit to Trump: Slow Down EPA/ANDREW HARRER / POOL EPA/ANDREW

US President Donald By Christopher Karadjov the manufacturing numbers of its J. Trump shakes hands proÀ table F-series. The second was with John Aubrey, sheriff from Jefferson Ford Motor Company’s River Rouge an unlikely regulatory victory of the County, Kentucky (R), Plant in Dearborn, Mich., has been oft-maligned administration of the as he arrives with churning out the company’s bestsell- 44th president of the United States: U.S. Vice President ing vehicle since 1948. When the com- since the Environmental Protection Mike Pence (L) for a listening session with plex was À rst opened a century ago to Agency (EPA) declared light trucks county sheriffs in the assemble the Model A in a revolution- to be actually “cars” and not “trucks” Roosevelt Room of ary closed-cycle facility, it employed that same year, F-150s had to conform the White House in more than 100,000 people. Today only to fuel-efÀ ciency standards, too. The Washington, D.C., USA, Feb. 7, 2017. about 6,000 punch in time cards; even automotive industry – predictably – though the workers look nothing like grumbled at the time, but as a result the bolt-wrenching drones from Char- Ford engineers came up with engine lie Chaplin’s “Modern Times,” their improvements and other modiÀ cations productivity has increased immeasur- that allowed the F-150 to cut its fuel ably. consumption by a whopping 30% in about À ve years. Since 2009, two telling develop- ments have occurred in this venerable To sum up what you just read about production complex. First, President U.S. auto manufacturing: here is a Barack Obama’s then-controversial prime example of a company on the bailout of the U.S. automobile in- verge of collapse that not only man- dustry allowed Ford to remain on aged to survive bankruptcy with gov- an even keel, eventually doubling ernment assistance (and – to buck the standpoint 9

idea that it was a “socialist” intervention – repaid look onerous, until you consider that “regula- its loans with interest), but also increase its sales tion” is not a swear word by default. Some of the and proÀ ts, and improve the quality (fuel efÀ cien- rules even make perfect business sense (as with cy) all at the same time. the Ford F-150s improved fuel efÀ ciency, which became an unlikely selling point); many of them So, a wonderful outcome? Not completely, be- exercise control over the quality of our environ- cause my example above also gives you a ballpark ment (I live in Los Angeles, which breathes much idea of how the work force in America’s industrial healthier air today than in the 1970s precisely heartland has been decreasing. Those 6,000 union because of way stricter regulations); others still jobs are excellent to hold, no question, but they protect consumers, provide safety and security do not compare with the 25,000 that existed at the (does anyone remember how much the airlines ob- same River Rouge Plant during the 1980s. Some jected to the Bush-era requirement to strengthen of these jobs have been moved to other locations cockpit doors?); and some are, yes, plain stupid in Michigan. Some have gone to Canada. Almost and unnecessary. First signals are that the Trump none have migrated to Mexico. Most of the decline administration will do whatever it can to disman- can be directly attributed to the ever-increasing tle as many of the regulations as it can. But, again, automatization of the conveyer line; to nifty ro- as with campaign promises, I am sneering at the bots and computers, not to NAFTA. “I will do more than anyone else”-type of rhetoric. I would much more appreciate a careful analysis I was more than skeptical of then-candidate and slow, patient remodeling and improvement Trump’s promises that he would “bring the jobs rather than the haphazard, Chaplinesque slapstick back,” as he said during his À nal election night approach to governing that the White House has rally in Lansing, Mich. I was openly contemptuous exhibited so far. of such cheap campaign rhetoric, if only because I knew well how complex the reasons behind the Analyst Paul Samuelson wrote in the Washington loss of decent blue-collar jobs had been. Post: “It would be nice if Trump and his critics could À nd some common ground: Democrats ad- I am still sneering at the formulaic promises to mitting that regulations have been carelessly over- solve every problem by wishing it away with used, Republicans conceding that the regulatory pompous words; apparently, this cannot be said of state isn’t going away. It needs to be governed Michigan voters, though, who apparently warmed better, neither abused nor abolished.” up to Trump’s promises more so than to Obama’s legacy. Then there are certain laws than are beyond the power of the administration by itself since they The 45th president of the United States jumped need the Congressional imprimatur. Those range into the job amid a seemingly incessant Á urry of from the Dodd-Frank Act, which has had its pros controversy, embroiled in gaffes and swimming in and cons as a means to regulate the À nancial various conÁ icts of interests. One of the campaign industry after the 2008 bank crisis, but deÀ nitely promises that the business community – if not the should not be pulled back too fast. Above all, the blue-collar voters in Michigan – has been particu- elephant in the room is the Affordable Care Act, larly happy about the expected rollback of vari- or Obamacare, which cannot be repealed without ous regulations. Given the unpredictability of the an adequate replacement – and none exists so White House and its tendency to get from a faux far. Blue-collar voters will be the most hurt by a pas to a scandal in the blink of an eye, this has ex- rushed legislative attack on Obamacare. plained the general enthusiasm of the Dow Jones and other economic indices so far. Trump signed Henry Ford used to say, “Whether you think you an executive order on Jan. 30 that stipulated two can or you think you can’t – you are right.” To regulations must be stricken down for every new him, thinking meant careful planning, meticulous one issued. This is not the À rst such attempt (Ron- execution and attention to detail above all. Best ald Reagan had a similar order and Bill Clinton results are rarely achieved in a hurry, and you required the OfÀ ce of Management and Budget to cannot have it all at once. estimate the impact of government rules), but the new president went further. He said that his aim It is a lesson that Detroit’s grand industrial history is to cut down about 70% of the existing federal could teach to the White House. regulations. This is probably way too ambitious, since the Federal Register published some 70,000 pages of regulations in 2016 alone. Such numbers analysis 10

Tourism Breaks Records

During Christmas and By Marina Tsvetkova tourists spent their vacation on the New Year’s Eve holi- Bulgarian Black-Sea coast. With a rise days more than 200 thousand foreign tour- Bulgaria has emerged again on the global of 13%, Bulgaria ranks third among the ists visited our winter tourism map. The industry results are im- countries that have registered the big- resorts. The expected pressive. But it is not the geopolitical factors gest jump in the number of tourists. growth of tourists alone that are triggering a boom in the num- over the whole winter season is between 5 ber of tourists, experts say. The good news At the height of the season it emerged and 7%. is that Bulgaria is on track to disprove the that the beaches near Varna were on the unpleasant stamp it has of a destination for Top 10 list of German holiday-makers. cheap liquor and party tourism by offering a At the same time during the whole product of an increasingly high quality. season the media benevolently drew the public attention to the variety of tourism 2016 was quite an unusual year for opportunities in this country. tourism – not only in Bulgaria but also in Europe and the world as a whole. The 2016 results show that Bulgaria is The geopolitical crisis in the region of among the four European countries to Turkey, Syria, Egypt and Tunisia and in have seen the strongest growth in the the heart of Europe – Paris and Brussels number of tourists. More than 8 million – created a new situation: nearly 15 mil- foreign tourists visited Bulgaria last year lion tourists did not go to Turkey, 4 mil- and revenue in the sector surged 15% to lion – to Egypt and Tunisia, and some 6.4 billion Leva, which is an 100 million, to France and Belgium.

Cheaper than Spain and safer than absolute record Bulgaria has Turkey – led by such pragmatic con- never reached before. siderations, many German and Russian The strongest rise is on the German analysis 11

Best Destinations for Winter Tourism in Bulgaria You can plan your winter vacation to UHVRUWLQ%XOJDULD,WLVORFDWHGRQ JHRJUDSKLFDOFHQWHU*DEURYR go skiing or just enjoy the beauty of WKHQRUWKHUQVORSHRI0RXQW5LODLQ 8]DQDQHVWOHVDWWKHKHDUWRIWKH the Bulgarian countryside. There are FORVHSUR[LPLW\WR6R¿D%RURYHWV &HQWUDO%DONDQ0RXQWDLQV7KH many good places for that. Following KDVNPRIVNLUXQVDQGRႇHUV SODFHRႇHUVDVWXQQLQJYLHZDQGLV are the most popular destinations: SRVVLELOLWLHVIRUVNLLQJVQRZERDUG WKHVWDUWLQJSRLQWIRUPDQ\PRXQ Ski resort of Bansko, LQJQLJKWVNLLQJDQGFURVVFRXQWU\ WDLQURXWHV Pirin Mountain VNLLQJ Village of ChiÁ ik %DQVNRWRSVWKLVUDQNLQJ7KHPX Ski resort of Pamporovo, near Troyan, Balkan VHXPWRZQLVORFDWHGDWWKHIRRWRI Rhodope Mountains Mountains 0RXQW3LULQDQGDWWUDFWVWRXULVWVQRW 3DPSRURYRLVWKHJHPRIWKH%XO RQO\ZLWKLWVZRUOGIDPRXVVNLUXQV 7KHUHVRUWYLOODJHRI&KLÀLNLV JDULDQZLQWHUUHVRUWV,WLVORFDWHGLQ ORFDWHGRQDQDUHDRIVRPH EXWDOVRZLWKLWVXQLTXHFRPELQDWLRQ WKH5KRGRSH0RXQWDLQVDWWKHIRRW RIPRGHUQLW\DQGROGDUFKLWHFWXUH VTXDUHNLORPHWHUVDORQJWKHXS RI6QH]KDQND3HDN,WFDQVDIHO\ SHUPRVWSDUWRIWKH%HOL2VDP 7KHUHDUHVRPHNPRIVNLUXQV EHFDOOHG%XOJDULD¶VVXQQLHVWUHVRUW 5LYHULQWKHVRXWKZHVWHUQVHFWLRQ LQ%DQVNRDQGWKHVQRZFDQQRQV DVLWUDQNV¿UVWLQQXPEHURIVXQQ\ RI7UR\DQ0XQLFLSDOLW\,WVWDQGV JXDUDQWHHWKDWWKH\FDQEHXVHG GD\V7RXULVWVFDQFRPELQHWKHLUVNL IURP'HFHPEHUWR0D\ PHWHUVDERYHVHDOHYHODQGLV YDFDWLRQZLWKVSDSURFHGXUHVDQG VXUURXQGHGE\FHQWXU\ROGIRUHVWV SHUIHFWSODFHVIRUZDONV Ski resort of Borovets, DQGOXVKSDVWXUHV:LQWHUKHUHLV Rila Mountain Uzana, Balkan Mountains PLOGVXPPHULVFRRODQGWKHDLULV %RURYHWVLVWKHROGHVWPRXQWDLQ /RFDWHGRQO\NPIURP%XOJDULD¶V FU\VWDOFOHDU

market with the number of German a year but they stay longer: 11.5 days. tourists exceeding 750,000. The number Scandinavian tourists reach similar of Russians to have visited Bulgaria parameters. Visitors from Poland, the reaches 650,000. Their average stay Czech Republic, Hungary and Slovakia here is 10.2 to 10.5 days. At the same are about 10,000 in number. They stay time, many Russians have a second at lower-budget hotels on the southern home in this country and stay for more Black-Sea coast, though. than 50 days. They are followed by 10% increase in the holiday-makers from neighboring Ro- Surveys of British agencies Travelzoo number of visitors from Russia and West- mania, Greece, Macedonia and Serbia. and Holiday Barometer show that Bul- ern Europe is expected Their stay here is shorter. Then come garia will be one of the most preferred this summer. British tourists, who are about 10,000 destinations for British tourists in 2017.

The tourism boom, however, is possible thanks to the multi-billion investments made in the sector in the past 15 years: new hotels, catering establishments and infrastructure.

Tourism is an important sector of the national economy – it provides for about a tenth of the value added in Bulgaria. Hundreds of thousands of jobs are con- nected with tourism. This is not very different from Germany, where tourism accounts for 4.4% of the value added but the 3 million or so jobs it provides make up 7% of the employed.

Data of the World Travel and Tourism analysis 12

(golf, gourmet, spa services etc.).

I Love Bulgaria Bulgaria is really a four-season destina- tion and has an excellent tourist prod- %XOJDULDDOUHDG\KDVDVLQJOHSODWIRUPDQGDQDSSOLFDWLRQ,/RYH %XOJDULDGHYHORSHGE\WKH%ULWLVKWHFKFRPSDQ\+RUL]RQ6RIWZDUH uct. Now is the time for it to position 6ROXWLRQV7KHSODWIRUPFDQEHGRZQORDGHGDVDPRELOHDSSOLFDWLRQ itself on the main European and non- RQDQ\VPDUWSKRQH,WXQLWHVDOOHOHPHQWVRIWKHWRXULVWVHFWRULQ European markets. We should realize RQHSODFHWRXULVWVLWHVDFFRPPRGDWLRQIDFLOLWLHVFDWHULQJHVWDEOLVK that PHQWVDQGDOODFFRPSDQ\LQJVHUYLFHV developing tourism is the key 7RXULVWVLWHVDUHDOUHDG\EHLQJHTXLSSHGZLWKVSHFLDOVLJQVWKDWFDQ to improving the local economy EHVFDQQHGE\WRXULVWVXVLQJWKHLUPRELOHSKRQHV(DFKVLJQKDV DXQLTXH45FRGHZKLFKJLYHVWRXULVWVLQIRUPDWLRQDERXWWKHVLWH and ensuring people’s wellbeing, says $WWKHVDPHWLPHWKH\ZLQERQXVSRLQWVDQGUHFHLYHLQGXFHPHQW the chairman of the Institute for Analy- SUL]HV%RWKWKHSODWIRUPDQGWKHVLWHLQIRUPDWLRQDUHDFFHVVLEOHLQ ses and Assessment in Tourism Rumen ODQJXDJHVZLWKDQRSWLRQWREHRႇHUHGLQDQXQOLPLWHGQXPEHURI Draganov. ODQJXDJHVLQWKHORQJWHUP He sees a big future in spa and balneol- Council for 2015 show that the number ogy tourism, as well as in golf tourism, of the directly employed in tourism in which attract well-off visitors. Cultural, Bulgaria exceeds 92,000. The lack of full- rural, extreme and gourmet tourism year employment remains a key issue in are also growing. Bulgaria needs À ve the sector, however. airports to service regular charter Á ights and low-cost airliners Á ying to this The problem is that for the past 20 country, Draganov added. years some 18 billion Euro has been invested in tourist facilities, while The revenue from winter tourism is ex- higher schools have trained only 12,000 pected to reach some 970 million Leva. tourism specialists. There is an acute Winter tourism is becoming more and shortage of guest service staff: bellboys, more attractive, even though it gener- maids, waiters, receptionists, bartend- ates a third of the summer revenue. ers etc. On the other hand, there is a There are also fall and spring tourism signiÀ cant deÀ cit concerning special- seasons emerging that attract about a ized staff for new and rare positions million new tourists.

Lonely Planet, the lead- ing international travel guide, included the city of Plovdiv in the list of best places to travel in October 2016, Plovdiv Municipality said. According to the review, with cool but pleasant days, October is a great time to ex- plore the southwestern mountains of Bulgaria. “Start in Plovdiv, the ancient city on seven hills that’s packed with art galleries, bohemian cafes and impressive 19th-century architec- ture, and offers an en- grossing stroll through history,” the popular guide reads. It also advises tourists to visit Rila Monastery and Melnik, as well as take a ride on the narrow- gauge railway from Bansko to Septemvri. analysis 13

Bulgarians Advised to Invest in Farmland Low bank deposit returns will draw more attention to agriculture, analyst says

10,376,694 is the number of deposit accounts in Bulgaria by the end of September 2016 with an average amount in each account of 4,224 Leva. During the last years of instability and economic uncertainty Bulgar- ians have started putting their money into banks so that they have cash to count on if the wave of Farmland is an investment with high returns and limited risk. “staff optimization” reaches them, Clearly the greatest enemy of the NSI data show that in the end of says Hristo Hristov, sociologist and savings is inÁ ation. 2015 the average value of 1 decare analyst. (1,000 sq. m.) of agricultural land The sound drop of deposit rates was 732 Leva. The most expensive Earlier, banks used to offer more shrank the gap between return and plots are in Northeast Bulgaria – than excellent return with pro- inÁ ation. This in turn led to the fact 1,040 Leva/dca. motional terms at the heart of the that putting your savings in stand- crisis of more than 10% annual ard deposit accounts can guarantee Most of the land is cultivated not interest rate. Today the situation their safety but not their value. by its owners but by tenant farmers has changed dramatically. Euro- for which they pay to the owners National Statistical Institute data pean Central Bank has Á ooded the an annual rent. It varies for the show that the inÁ ation rate in July markets with cheap money. Thanks different regions and depends on a 2016 was 1% while the average to the recovery of both Bulgarian few factors. and international economies banks deposit return with maturity be- reduced their demand for funding tween a day and a year was 0.55% The average annual rent for 2015 which led to lower interest rates. for the same period. This means was 42 Leva/dca. The highest rent that the savings value has lowered was in Northeast Bulgaria – 63 Bulgarian National Bank statistics to 0.45%. Prospects show that this Leva/dca, and in the Dobrich re- show that the average deposit rate trend will continue in 2017, too. gion it reached even 82 Leva/dca. with maturity in Leva decreased by 0.78 percentage points to 0.64% This said, we can expect that in If we calculate the ratio of the in November 2016 on an annual order to keep the value of their sav- farmland to its return in the form basis while the average deposit rate ings Bulgarians will start looking of annual rent, we see that land with maturity in Euro for the same for alternative forms of investments investment can bring a national period dropped by 0.68 percentage with return above the inÁ ation rate. average return of 5.7%, which is much higher than what you will points to 0.51%. Such an investment – with high get for your money from standard return and limited risk – can pur- On a monthly basis, the aver- deposits. age deposit rate with maturity in chasing farmland. In recent years, Leva decreased by 0.03 percent- the amount of EU funds for rural Experts expect that in the next 5-10 age points, while the drop for the development and agriculture has years prices of farmland will not accounts with maturity in Euro is grown, which in turn has led to rise with the same rate as now and 0.05 percentage points. The situa- higher demand of land. Only the would rather stay at their current tion is similar when it comes to the value of farmland remained unaf- levels. Nevertheless, demand for deposits with maturity between a fected by the economic crisis and agricultural land will be high for day and a year. its price hasn’t stopped rising. some time. the american college of sofi a 14

Future Learning: New Campus Center Transforms 157-year-old College

2QWKHRXWVNLUWVRI6R¿DLQDVHUHQHSDUNDFURVVIURP 5RJHU:KLWDNHUWKH¿UVW$&6SUHVLGHQWZKHQWKHVFKRRO %XVLQHVV3DUNQH[WGRRUWRWKH3ROLFH$FDGHP\DPDMRU UHRSHQHGLQVDLGDERXWWKHXSFRPLQJ&DPSXV&HQW FRQVWUXFWLRQSURMHFWLVXQGHUZD\ HU2XUJRDOLVQRWWRZLQDUFKLWHFWXUDODZDUGV2XUFRP PLWPHQWLQVWHDGLVEDVHGRQWKHUHDOL]DWLRQWKDWVSDFH 2QWKH$PHULFDQ&ROOHJHRI6R¿DFDPSXV*HRVWUR\LV XVHDႇHFWVHGXFDWLRQ)RUH[DPSOHWKHUHLVDVLJQL¿FDQW EXLOGLQJDQHZHGXFDWLRQFHQWHU7KHDPELWLRXVSURMHFWFR OLQNEHWZHHQQDWXUDOOLJKWIURPZLQGRZVZLWKYLHZVTXLHW LQFLGHVZLWKWKHWKDQQLYHUVDU\RIWKHFROOHJH VUHRSHQ SODFHVJUHHQVSDFHVÀH[LEOHVSDFHRSWLRQVDQGVWXGHQW LQJDIWHUWKHIDOORIFRPPXQLVP7KH¿UVWQHZFRQVWUXFWLRQ DFKLHYHPHQW$V:LQVWRQ&KXUFKLOOZURWHWe shape our RIWKLVVL]HVLQFHWKHFODVVLFDO1HZ(QJODQGVW\OHFDPSXV buildings; thereafter they shape us. ZDVEXLOWLQWKHVWKHSURMHFWFDUULHVWKHFRVWRI PLOOLRQ7KHEXONRIWKLVLQYHVWPHQWLVSURYLGHGE\WKH &RQVWUXFWLRQLVH[SHFWHGWREHFRPSOHWHE\WKHHQGRIWKH $PHULFDIRU%XOJDULD)RXQGDWLRQDVDOZD\VFRPPLWWHGWR \HDUZLWKIXUQLVKLQJWRIROORZ:KHQLWLVGRQHWKHJURXQG HGXFDWLRQDQGVWUDWHJLFDGYDQFHPHQW$GGLWLRQDOFRQWULEX ÀRRUZLOOKRXVHFODVVURRPVD¿WQHVVFHQWHUVXSSRUWIDFLOL WLRQVWRWKHEXGJHWFRPHIURPWKH$PHULFDQ6FKRROVDQG WLHVIRUWKHFDIHWHULDDQGWKHWHFKPDLQWHQDQFHGHSDUW +RVSLWDOV$EURDG $6+$ SURJUDPRI86$,'DVZHOODV PHQWV7KHPDLQÀRRUZLOOKRVWWKHPDLQOREE\DVHDW IULHQGVDQGVXSSRUWHUVRIWKHVFKRRO VPLVVLRQ DXGLWRULXPRႈFHVFDIHWHULDDQGNLWFKHQDQGSOHQW\RI RSHQVSDFHVIRUVWXGHQWDFWLYLWLHV7KHVHFRQGÀRRUZLOOEH ,WVHGXFDWLRQDOPLVVLRQPDNHV$&6WRGD\DQHGXFDWLRQDO RFFXSLHGE\WKHDGPLQLVWUDWLYHRႈFHVDPRGHUQOLEUDU\ LQVWLWXWLRQRISHUVSHFWLYH:HNQRZWKDWZHOLYHLQG\QDPLF PHGLDFHQWHUFRPSXWHUODEJURXSSURMHFWKDOOVVWXG\ WLPHVZHNQRZWKDWLQIRUPDWLRQLVUHDGLO\DYDLODEOHDQ\ KDOOVDQGUHDGLQJKDOOVDQGDFDIp7KHWRSÀRRUZLOOEH ZKHUHDQ\WLPHDQGZKDWVHWVWKHFRPSHWLWLYHDSDUWLVWKH Rႈ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

interview 16

Unemployment Falls But Employment Does Not Rise The state’s fi nancial plan has inevitably become part of the political crisis and received harsh criticism

Hristina Hristova By Hristina Hristova garia are long-term unemployed, that is, (Ph.D. in sociology) is a former minister of out of job for more than two years. labor and social policy, All employers in Bulgaria face the huge professor at SoÀ a problems and disproportions of its A disturbing trend of the disproportion University and director labor market. On one hand, the country is that unemployment is falling but em- of the Family Policy Institute. recorded low unemployment levels – ployment is not increasing. That ratio is about 7% - for the last quarter of 2016. important for businesses. It has dropped On the other hand, 1.5% since the begin- structural unemploy- ning of the year. ment is a cause of 62% of the serious concern: 14% Youth unemployment of the jobless are jobless are is higher than the university graduates; country’s average by some 18% - almost all long-term some 4 or 5 percent- of them high-school age points. Another graduates – cannot unemployed disproportion is seen À nd their À rst job. in the fact that while That means they have there is unemploy- not been able to make the transition ment, there are some 11-15,000 vacant from school or university to employ- positions on average every month ment. Another 62% of the jobless in Bul- announced by employers that can- interview 17

not be À lled with the staff involved in the education processes, the they need. That speaks of disproportions will only widen, as will Bulgaria has a big discrepancy between the gap between their needs and the the quality of the human qualiÀ cation of the workforce. 51 universities resource and the economy’s needs. As compared with A lot of EU countries plan the training with 70,000 open the early years of transi- of specialists that will consequently tion, when Bulgaria had join the labor market. There are also seats enough staff to offer, today state incentives for education in areas there is a purely physical that are short on specialists. Today, shortage of people in the Bulgaria has 51 universities with some working age. The process of migration 70,000 open seats for students, while has not ceased, although there is some the number of high school graduates is evidence that young people who have 50-53,000 a year. The need for human studied abroad may be returning and resources in the economy has to be trying to make a career in Bulgaria. planned. Lifelong learning with the participation of businesses is important Older people À nd it hard to À nd a job. too. The dual training system has not Eurostat forecasts that in the next 20 been very successful. years the share of the older people on the labor market will increase. The There are many prejudices related to the European Union has been trying to labor market and the different catego- promote and À nance the lifelong learn- ries of people in it. Employers show ing process. A lot of jobs need to adapt no interest in the reserve of the vulner- ergonomically to the requirements of able groups. But the state is to blame the older worker. The too, because it does labor market is not Business not properly educate prepared for the new those people. Changes challenge of older is not involved need to be made to the workers’ needs and structure, subjects and the pension system is properly in the philosophy of vocation increasing the retire- education. A broad ment age. We need education process university education is to train and re-train not a must for every- those people. one. What needs to be done is restoring the There are two other vulnerable groups role of vocational schools that teach jobs that have potential for the labor market. in demand on the labor market. First, these are the disabled people who can be good legal advisers, account- There remains the issue of salaries, ants, IT specialists. But we do not have where both the state and private em- such traditions, although those people ployers have more to do. The state are not a burden but a potential on the always administers the changes in the labor market. The other group of people minimum working wage in an arbitrary that employers should not forget are the manner. Instead, it needs to create an Roma. Most of them are poorly educat- automatic mechanism for changes and ed due to inadequate policies during the manage the labor relations and salaries transition period and shortcomings of more skillfully. This is very important the education system. Education should for every business and is directly con- be the key focus of Roma integration nected with the investment interests. and training for the labor market. A key issue is that businesses in Bul- garia do not have proper access to the system of secondary vocational and higher education in order to provide À nancing and environment for trainee- ship and practice. If businesses are not cover story 18

Labor Market in Bulgaria: Between Paradox and Reality

By Marina Tzvetkova this country’s economy.

Well-paid jobs that remain vacant for months: Th e staff shortage problem is also a consequence there is such a paradox. Although unemploy- of the demographic crisis. Th e Bulgarian popula- ment in Bulgaria exceeds 8%, key professional tion has decreased by 15% since 1995, statistics areas suff er from shortage of specialists. show. An annual talent shortage survey conducted One of the big shortcomings of the local labor by ManpowerGroup Bulgaria shows that 62% market is low wages, which does not allow some of employers in Bulgaria have diffi culties fi ll- companies to retain or attract qualifi ed staff . ing their vacancies. Th is situation raises a lot Companies are concerned that higher payment of questions, causes concern and speaks very will aff ect their competitiveness. At the same clearly of the condition and prospects of the time the shortage of experts has reached such Bulgarian economy. proportions that it poses a no lesser threat to companies’ competitiveness. If until recently the fi ght was to hire skilled peo- ple, now the eff orts are mainly directed to retain- Besides, the people with a higher-education ing them. What is more, the terms are more and diploma currently make up some 23% of the more oft en dictated by the good specialists. population. In comparison, this share exceeds 30% in the developed countries with advanced Shortage of skilled people and high-tech economy. Th ere is a national pro- Poor education, the gap between demand and gram to increase the share of university gradu- supply of market qualifi cations and the so-called ates to 36% by 2020. Th e market trend does not brain drain are the main reasons for the exac- give ground for optimism, the more so that the erbation of the shortage of qualifi ed staff . Th e number of students has been constantly falling. consequences for the economy are inevitable: Added to this is the fact that the wages of the the poor labor qualifi cation and the shortage of Bulgarian scientifi c intelligentsia is very low. A experts in a number of areas discourage many professor at the most prestigious scientifi c and potential investors from putting their money in research institution in this country, the Bulgar- cover story 19 ian Academy of Sciences, receives a salary of 450 Most in-demand jobs in Bulgaria in Euro per month. 2016 Barriers and solutions 1.Skilled workers Th e main reasons employers name for the dif- 2.Engineers fi culties they meet in fi lling vacancies are the 3.Drivers following: lack of hard skills (qualifi cation for 4.Workers in the hospitality industry certain tasks, IT skills, language and math skills) 5.Doctors and other health professionals (32%), lack of available applicants (30%) and 6.Managers (management/corporate) lack of soft skills (professionalism, enthusiasm, 7.Workers interpersonal skills, fl exibility/adaptability) 8.Production/machine operators 9. Accounting and ¿ nance staff (13%). Th e lack of experience is identifi ed as a 10. IT staff reason for the talent shortage by 12% of employ- The ranking of ManpowerGroup Bulgaria is for ers. Only 11% of the recruiters say candidates 2016 but practically it does not differ substan- expect more pay than is being off ered. tially from the 2015 edition. That speaks of steady trends and not of temporary phenom- To address talent shortages, Bulgarian employers ena. And that is a reason for concern. pursue several strategies. Most of them (50%) provide additional training and development Instead of a wish to existing staff . Th e second most oft en used It has oft en been said that Bulgaria should rely strategy is for employers to hire people outside mainly on its human potential. In the modern the traditional talent pool: older or younger than conditions, however, intelligent growth is no less the usual. important. A third of employers (33%) outsource activi- In future, new technologies will require even ties, 30% off er higher salaries and 29% enhance more specialized skills from people and organi- benefi ts. Another 22% say that they change the zations but that is rarely talked about. Employees existing work models, i.e. fl exible or distance will have to pay more eff orts to remain suitable job. Only 9% of the interviewed say they pursue for their job. Our desire and capacity to learn no strategies whatever and 2% say they do not and acquire new skills to remain adequate and fi t know. for hiring will be the major balancing tool. As a matter of fact, to be successful, business or- It is true that the populism and polarization of ganizations should pay more attention to work- the workforce are a standing issue. If no actions ing out and pursuing strategies to overcome and are taken for additional qualifi cation and re- prevent the talent shortage. On the other hand, qualifi cation of the staff , the gap between those candidates should be ready to learn constantly who have and those who don’t will be widening. and develop in order to be competitive. Th e people who have the right skills and those facing the threat of being forgotten will have fewer and fewer points of contact. Th e army of people who are not active on the labor market and need to be motivated is a separate problem. If that happens, the so-called revolution of skills will have taken place. In its fi rst 2017 issue the Business Connect Mag- azine asked managers from the ICT, outsourcing and automotive industry in Bulgaria about their observations, experience and recommendations Cons of open-space ofÀ ces are more than pros. concerning the labor market. cover story 20

Boyan Ivantchev: Big, Smart Business and Exponential Future of Bulgaria We are destined to perform more complex jobs due to the small size of the population

more than 3.5 times. Of course, the %R\DQ,YDQWFKHY basis is very low, but the achievement 3K'KDV\HDUV is pretty good. Nevertheless, that irra- RIH[SHULHQFHDVDQ );VWRFNVDQG¿[HG tionality leads to the fact that the Bul- LQFRPHGHDOHU&XU garians cannot see that a new produc- UHQWO\KHLV'HSXW\ tion site is opened every 3 months and &KDLUPDQRIWKH%R' that the average wage has increased RI$GYDQFH(TXLW\ more than À vefold in the span of 15 -6&+HLVDSURIHV years. They cannot see that there is a VRURI%HKDYLRUDO)L qualitative change in the gross value QDQFHSLRQHHURIWKH added and that the export proÀ le of UHVHDUFKLQWKDWDUHD the country is changing from industri- DQGQHXURHFRQRPLFV LQ%XOJDULDFRIRXQG al to technological. The workforce has HURIWKH%XOJDULDQ higher productivity and added value. FKDSWHURIWKHOHDG Currently even the poorly qualiÀ ed LQJ86WKLQNWDQN Roma are employed, for instance in 0LOOHQQLXP3URMHFW modern American factories for au- ,YDQWFKHYSXEOLVKHG tomobile components. That means $Q\RQH&DQ,QYHVW that in the future Roma children will 6XFFHVVIXOO\,I:LOO have potential for normal economic $YRLG,OOXVLRQVDQG activity. That differs from the wrong ,UUDWLRQDO%HKDYLRU DQG+LVWRU\RI%XOJDULDQ&DSLWDO0DUNHW,QKH extrapolation of Bulgaria’s future as FRQWULEXWHGWKHFKDSWHU,W V1RW0RQH\8QWLO,W V3RVWPRQH\LQ made for years by the World Bank. WKHEHVWVHOOLQJIXWXURORJ\ERRN³7KH)XWXUHRI%XVLQHVV´SXE That extrapolation that does not take OLVKHGLQWKH8QLWHG.LQJGRP,YDQWFKHYJUDGXDWHGKLJKVFKRROLQ into account the soft indicators and is &]HFKRVORYDNLDHDUQHGDPDVWHU¶VDQGGRFWRUDOGHJUHHLQ:DU based on compromised quantitative VDZ6FKRRORI(FRQRPLFV$OXPQLRI+DUYDUG¶V.HQQHG\6FKRRO prognostic methods, that do not take RI*RYHUQPHQWDQG&KLQHVH$FDGHP\RI*RYHUQDQFH)OXHQWLQ into consideration the possibility for VHYHQODQJXDJHV0DUULHGZLWKRQHFKLOG qualitative changes. Another cognitive psychological bias – conservatism – People are prone to a number of cogni- intensiÀ es the above-mentioned biases tive psychological biases. One of them and compels people, including Bulgar- is myopia. It is the reason why we look ians, to say that it is worse today than into the most recent past – in relation it used to be before… Worse than the to both the macroeconomic indicators socialist period?! When people were and our private life. The unwillingness equal in the communist party farm? to make a bigger cognitive effort to Is the workforce in Bulgaria over examine more data, the proneness to already? Not really. Labour market ar- myopia and inertia bias lead to a sys- bitrage and training enough workforce tematic distortion of our notion of the is inherent feature of the business. As past. The irrational understanding of I said, extrapolation is the worst way the past leads to a wrong understand- to forecast the future, especially the ing of the present and future. In 2000 exponential future - we are already in. real GDP per capita in Bulgaria was The outsourcing industry started do- 3,000 Euro, and in 2015, 5,700 Euro. ing business in Bulgaria with low-tech For the same period total GDP grew call centers. Today the outsourcing cover story 21

industry has advanced will disappear journalists and edi- employees with excellent tors, quant analysts, drivers, pilots, Business skills. The added value HR specialists, mechanics, bigger part produced by those same of teachers and GPs, engineers in the can create employees has increased area of classic physics, motor vehicle manifold and generates services and many more. That will and train own businesses and takeo- happen because of the development of vers. The successes in the 3D printing, AI, telemedicine, cyber- staff on its IT industry are even more netics and robotics, tele-education, impressive, with annual smart health monitoring, self driving own revenue of more than 1.1 cars etc. How we can be ready for that billion Euro. That is - given change? Certainly not by saying, “The the skills and workforce guy writing this is absolutely insane.” are constant – either inÁ ation of the At the congresses of the World Future workforce is induced or the workforce Society in the United States, where I has started performing more complex participate as a lecturer, the change is activities, with higher productiv- seen as inevitable - and very cool. That ity and added value, as is the case in is the question about the workforce in Bulgaria. We are destined to perform Bulgaria and we have to À nd a solu- more complex tasks due to the small tion in the next À ve to seven years. It size of the population and its quality. also requires strategy – not mandato- If there is a substantial shortage of rily by the Government – by the big low-qualiÀ cation staff and the reserve and smart business. The rest will be of the unemployed done by the market. is exhausted (given Until then, let’s wish an ofÀ cial unem- 3D printing that the US factories ployment rate of 7% will not be forced (the but actually lower and artifi cial U.S. Democrats are because of the gray joking) by Donald economy), there intelligence Trump’s administra- will be workforce tion to leave Bulgaria arbitrage of Bulgar- can change (to Vladimir Putin’s ians from Moldova, delight, Russians are Ukraine, Serbia, future jobs joking) for to pay FYROM or workers more taxes in the US. from Poland. Mind I sincerely hope that you that the manufacturers of automo- common sense will protect the impor- tive components in Bulgaria pay about tance of international economics and three times less per hour to workers the fact that the costs and damages than they produce hence there is a of international trade barriers and substantial reserve if more employees economic disintegration are much big- have to be attracted. Of course, the ger than the damages of international Government policy of dual education economic cooperation and an interna- and changing the post-totalitarian tional labor market. higher education can help the process- es but that is not obligatory. Business can create and train on its own the staff it needs on an instrumental and fundamental level.

The radical change on the labor market will come from the Bulgar- ians – young and old – who are not burdened with memories of equal- ity in the party farm. But only if they realize on time that whole job sectors will soon disappear. In the near future cover story 22

Ilia Krastev: Bulgaria Attracts Outsourcing – For Now Staff shortage makes Bulgaria’s export stagnate, increases personnel costs and reduces companies’ profi ts

Is the gap between education ,OLD.UDVWHYKROGVDQ and the labor market widening? 0%$GHJUHHIURP&RU WXJOL%XVLQHVV6FKRRO Yes, such is the trend. The fac- +HKDVDGHJUHHLQ tors for that are complex. On one *OREDO0DQDJHPHQW hand, we have the culture and DQG/HDGHUVKLSIURP 5LWVXPHLNDQ$VLD3DFLI understandings of the public itself, LF8QLYHUVLW\-DSDQ+H where the value of education is KDVVSHFLDOL]HG60( substantially reduced. On the other +XPDQ5HVRXUFHV 'HYHORSPHQWDW7RNDL hand, there is no visible connection 8QLYHUVLW\-DSDQ+H between education and the pros- VWDUWHGKLVFDUHHUDW pects young people have. That has 'DWD3URLQDQG VLQFHKHKDV its roots in the family environment EHHQPDQDJHURIWKH and in the quality of higher educa- FRPSDQ\RQHRIWKH tion. OHDGLQJ%32FRPSD QLHVDQGWKH¿UVW.32 SURYLGHUVLQ%XOJDULD The good thing is that the con- +HLVDOVRPDQDJHURI nections between universities 6HH1HZVDQHZVDQG EXVLQHVVLQIRUPDWLRQ and employers have strengthened VROXWLRQFRPSDQ\+HLVFRIRXQGHUDQGPHPEHURIWKH0DQDJHPHQW considerably in an effort to bring %RDUGRIWKH%XOJDULDQ2XWVRXUFLQJ$VVRFLDWLRQDQGPHPEHURIWKH education closer to the actual needs 0DQDJHPHQW%RDUGRIWKH2XWVRXUFLQJ&OXVWHUDWWKH$VVRFLDWLRQ of the labor market. In most cases, however, this is the result of the Business representatives say that the labor market and the short- individual efforts of companies and age of qualiÀ ed staff, especially university representatives. Despite in the IT, automotive and out- the many commitments to educa- sourcing industries, is already tion reform and the development of a national problem. How do various strategies, there is no real employers see that problem? change. Universities are compelled The shortage of qualified staff has to admit students with extremely always been on the agenda. Bul- low entrance results. That is con- garia is still defined as the most nected with an outdated mecha- attractive outsourcing destina- nism of funding educational estab- tion and that makes satisfying lishments that makes universities the sector’s needs for personnel focus on the number of students, more difficult. Employers respond rather than on their quality. as they can – by raising salaries, looking more and more often to How does the trend of staff cities other than Sofia, interfering shortage in key sectors affect more actively in school curricu- economic growth? lums, looking for cooperation with Economic growth is not an im- universities etc. aginary notion – it is an actual cover story 23

result of the actions of Thus, Bulgaria’s export can remain Lack of economic agents. For high even if smaller-size boutique a small country like projects are carried out. The short- human resource Bulgaria growth depends age of qualified staff directly affects means lost on the export of goods Bulgaria’s capacity to implement and services and on at- that strategy. customers tracting foreign capital, mainly in the form of Another real problem is that the foreign investment. staff shortage increases personnel costs much faster and reduces prof- In an economy pretending to be its, which has a very strong effect knowledge-based, the availability of on sectors with high human re- expert and highly-qualified human source expenses, e.g. services. That resource is a mandatory condition limits the possibilities for invest- for competitive export orientation. ment in setting up and developing When any given company cannot new business projects. That also quickly find the human resource it reduces Bulgaria’s attractiveness as needs, it directly loses customers. an investment destination, i.e. it Those customers look for efficient leads to a drop in new foreign and solutions, often local investment or, regardless of the worse, to relocation location, and for Quality of already attracted suppliers equipped of Bulgaria's investors. with teams and ready to offer solu- workforce can The combined re- tions. Nobody will sult could be a drop wait for months improve our in the main compo- for such teams to export nents of economic be created, trained growth: capital for- and formed. When orientation mation and export, there is deficit on as well as in the size the labor market, of tax revenue that companies cannot make sufficiently determines government spending. competitive offers and lose pro- jects. Those missed opportunities What are the trends and how can are manifested in lower export and we overcome the staff shortage in the outsourcing industries? reduced potential for economic The current situation is likely to growth. Bulgaria can hardly com- persist and even get worse. A posi- pete with the large countries – not tive trend is the return of students only India and China but even Ro- who have studied abroad. mania. The only thing that can im- prove Bulgaria’s export orientation The outsourcing sector increasingly is not the quantity but the quality often resorts to hiring people from of the workforce: the knowledge, other countries – in and outside the skills and expertise of the teams, European Union. The simplifica- the high productivity and the tion of the procedures for hiring higher added value they can offer. foreign citizens would help a lot. cover story 24

A possible solution is also the use outside the capital city. of new and flexible forms of em- ployment that give possibilities for What are your expectations and better “utilization” of the available how does the Bulgarian market stand in relation to other Euro- resource on the labor market. pean countries? We are still competitive as com- For the time being we are actually pared to the other countries. The creating and training our manag- combination of access to qualified ers by ourselves. We cannot yet workforce, relatively low taxation rely on hiring ready and trained and social-security burden and the people and especially as concerns availability of proper infrastruc- key positions in the company we ture (office areas and broadband prefer training our own staff. That internet) make Bulgaria an at- is an expensive process and it is not tractive destination. The sector is always the most efficient not always supported by the state On key solution. practices, though; bureaucracy and lack of long-term policy for im- positions we What are the main achievements of your sec- proving the quality of education. train our tor in 2016 and what do The demographic crisis may turn you expect from 2017? out a problem too. own staff In 2016 Bulgaria re- mained an important The long-term intentions, plans player in the outsourcing and contracts in the sector require industry. Bulgarian companies won a sustainable and predictable busi- international prizes as providers ness environment. The successful of outsourcing services. We saw business cases and the investment the start of an initiative to award of substantial amounts in Bulgaria prizes for business achievements in recent years have been based on in the sector with the participa- companies’ expectations that basic tion of an international jury. A lot financial and business frameworks of international conferences were will continue improving in the long held. Bulgaria hosted the European run. A sustainable state policy in Sourcing Summit 2016. It was in this aspect will allow Bulgaria to Sofia that the global outsourcing maintain its position of a top desti- industry introduced a standard for nation in the high-tech segment on the sector of outsourced services the global market. at the annual conference of the leaders of the European Outsourc- ing Association. “Outsourcing Destination Bulgaria: Technology, Innovation, Disruption” was held in Plovdiv in November and made the city an important pretender for an outsourcing capital. There is a growing trend for the outsourc- ing industry to be turning into an engine of economic development cover story 25

Stoyan Boev: Education Should Prepare Specialists for the ICT Industry The shortage of qualifi ed staff limits the development of the ICT industry, says the deputy chairman of BAIT’s managing board and managing director of ICB InterConsult Bulgaria Th ere are almost always vacant posi- 6WR\DQ%RHYLV0DQ DJLQJ'LUHFWRURI,&% tions and fi nding a suitable candidate ,QWHU&RQVXOW%XOJDULD can take more than eight weeks, in DOHDGLQJ%XOJDULDQ some cases. Employers invest more VRIWZDUHDQGFRQVXOW LQJFRPSDQ\ZLWK resources in attracting and retaining PRUHWKDQ\HDUV¶ highly-qualifi ed IT specialists. Th is PDUNHWSUHVHQFH +HOHDGVDWHDPRI creates strong competition for ca- PRUHWKDQKLJKO\ pable employees among companies, TXDOL¿HG,7H[SHUWV which in turn leads to increasing RSHUDWLQJLQWKH ¿QDQFHXWLOLW\WUDQV salaries in the sector. SRUWPDULWLPHDQG Companies are trying to react to the GHIHQVHHQJLQHHULQJ new situation on the labor market by DQGJRYHUQPHQWVHF WRUV+HKDVTXDOL¿FD investing substantial amounts in edu- WLRQVLQWKH¿HOGVRI cation and employee development. SURMHFWPDQDJHPHQW Resources are allocated to structured VWUDWHJLFPDQDJHPHQW FRQVXOWLQJEXVLQHVV training and internship programs. SURFHVVRSWLPL]DWLRQ Companies look mainly for young VRIWZDUHGHVLJQDQG talents and invest in their career GHYHORSPHQW $VDPHPEHURIWKHH[HFXWLYHERDUGDW',*,7$/(8523(PHPEHU development. RIWKHPDQDJLQJERDUGRIWKH%XOJDULDQ$VVRFLDWLRQRI,QIRUPD WLRQ7HFKQRORJLHV %$,7 PHPEHURIWKH%XOJDULDQ$VVRFLDWLRQRI Is the gap between education and 6RIWZDUH&RPSDQLHV %$66&20 DQGIRXQGHURIWKH%XOJDULDQ,&7 the labor market widening? FOXVWHU%RHYLVRQHRIWKHNH\LQÀXHQWLDO¿JXUHVRQWKH%XOJDULDQ ,&7PDUNHW High-quality education is the major precondition for creating specialists Business representatives say that for the ICT industry. Th e problem is the labor market and the shortage connected with both the insuffi cient of qualiÀ ed staff, especially in the number of ICT graduates and the IT, automotive and outsourcing defi cit of necessary skills required by industries, is already a national problem. How do employers see businesses. that problem? We need a modern, quality education Th e labor market of IT specialists in that creates specialists who have not Bulgaria follows the common trends only acquired professional knowl- of the European Union. Th ere are edge and skills but also who are more than 1 million vacant jobs in intelligent and have the capability to the IT fi eld in Europe and this num- think independently and analytically ber is rising constantly. and to communicate. What needs to Th e staff shortage hampers the devel- be done in order to achieve this is opment of companies in the sector. to update the educational programs, cover story 26

also training for university lecturers qualifi ed professionals from other and to ensure more active and im- European countries. mediate participation of businesses Th e industry organizations have in the education process. joined their eff orts and are holding Alternative private education forms an active dialogue with the respective are being created in response to the state institutions on easing the proce- inability of the education system to dures for issuing blue cards for hiring provide the necessary specialized ed- specialists from countries outside the ucation. Th ey have gained popularity European Union. Some progress has and are training and re-training staff been made in this area, i.e. no market for the ICT industry; however, they survey is required when appoint- cannot replace school and university ing new specialists from abroad, but education. there are still substantial obstacles. Th e lasting and long-term solution How does the trend of staff short- is education. Th e industry organiza- age in key sectors affect economic tions of BAIT, BASSCOM, the Bul- growth? garian Outsourcing Association and Th e Bulgarian ICT sector is competi- the ICT cluster are working actively tive, and has been showing constant, to ensure that there is a state policy export-oriented growth addressing the staff shortage prob- since 2005. Th e ICT lem. Th ey have signed an agreement ICT sector industry has high added with the Ministry of Education and value and its develop- shows constant Science on eff ective cooperation in ment has the potential to enhancing modern soft ware educa- increase GDP by 2 to 4%. export-oriented tion. Th e measures envisaged in Unfortunately, the compa- the agreement will meet the needs growth nies in the sector cannot of the Bulgarian economy and the reach their full potential IT industry. A national program, due to the shortage of “IT career training” (2016-2022), qualifi ed staff . Th e annual survey of will be draft ed on the basis of that the Bulgarian Association of Soft ware agreement. It is aimed at preparing Companies (BASSCOM) reveals a enough qualifi ed specialists for the general trend of an annual increase mid-term needs of the Bulgarian IT by up to 10% of the employed in the industry. soft ware sector. Th is year, however, In a bid to support the creation of many large companies have reduced a modern and adequate education their expectations for growth. standard, experts from the IT as- What are the trends and how can sociations also worked actively on we overcome the staff shortage in creating a competence model for the the IT industry? job of an applied developer and it is In the short-term, one of the pos- now included in the list of jobs for sible solutions to the staff shortage vocational education and training. problem is attracting specialists from Th e curriculum is now being pre- abroad. Th is means creating proper pared and high-school teachers are working conditions for attracting also envisaged to pass training. Th e such employees, both for Bulgarians training centers are planned to start returning from abroad and highly- operating in 2017. cover story 27

What are the main achievements sector will increase by 5 to 6% this of your sector in 2016 and what do year, which – due to the shortage of you expect from 2017? staff – is less than in previous years. Regardless of the mentioned prob- lems, the ICT industry is sustainable Th e soft ware industry is more and and successful. It is expected to cre- more shift ing its focus from “cod- ate 2.2% of Bulgaria’s gross domestic ing” to covering all phases of modern product for 2016 and annual revenue soft ware production, such as analysis, in the soft ware sector is projected to design, architecture, quality control reach approximately 2 billion leva. research and development; this cre- Some 70% of the activity is export- ates the conditions needed for turn- oriented. All that makes the sec- ing Bulgaria into a regional innova- tor one of the most effi cient in this tion center. country. Th e main achievement of the IT Th e sector employs some of the most industry is the digitalization of all highly qualifi ed and well-paid special- business sectors. Th us, the success- ists. Th e average salary of developers ful development of IT ensures the is four times the average salary in the development and competitiveness of country. BASSCOM expects that the the Bulgarian industry. number of people employed in the

Iravan Hira, general manager, Hewlett-Packard Enterprise: Bulgaria Can Reinvent Itself and Overcome Stagnation

is your point of view as an (hardware engineers, software de- employer in the IT À eld? velopers, IT service management experts), but still IT companies are The most common misperception struggling to À nd thousands more is that there is an abundance of in the next few years. workforce for the labor market. As a country that wants to In fact, there is quantitative and position itself as an information qualitative labor shortage. Even technology leader in the region, more, Bulgaria is facing drastic Bulgaria is À nding it difÀ cult to shortage of workforce with the keep up with the accelerating pace right skills and experience. It is of demand for skilled workforce. fairly acute in certain areas and it is going to become worse. This is The gap between the qual- particularly true in the Informa- ity of education, labor mar- tion Technology (IT) sector, where ket requirements and HR the labor demand signiÀ cantly is deepening. What kinds exceeds labor supply, resulting in of measures are needed to lowest levels of unemployment reverse the trend? The shortage of qualiÀ ed rate, which is equivalent of a full In many sectors the skill mis- work force, the current employment economy sector. matches are the most prevalent state of the labor market Today, the IT companies in Bul- cause of qualiÀ ed workforce is already a national prob- garia are contributing to over 4% shortages. lem, according to business of Bulgaria’s economy and em- The healthcare, automotive parts associations’ experts. What ploys more than 40,000 specialists industry, manufacturing and tour- cover story 28

ist sectors are experiencing seri- ing the needed skilled workers product or bring a new idea to ous difÀ culties to À nd qualiÀ ed from abroad (e.g. outside EU market are fading fast. workforce. School teachers, truck through Blue Card program). Now the businesses need to drivers and constriction workers Some other employers may put À gure out how to innovate are also short of what the labor measures to increase the pro- quickly, accelerating time to market is demanding. ductivity of their employees (e.g. value. According to IDC, by the It is obvious, that the Education is through automation or outsourc- end of 2017, revenue growth from not producing enough specialists ing). information-based products will with the right skills to meet the be double that of the rest of the needs of the Bulgarian employers. product/service portfolio for one Furthermore, the skills that our IT must third of all Fortune 500 compa- graduates get are much below the nies. levels of employers’ expectations. transform from Education should rethink the way We witnesses that many of the it deÀ ne workforce skills, and a cost center to Bulgarian companies have al- reconstruct the current training ready recognized the importance systems to strengthen the talent a value creator of innovative IT for a success of pipeline. their business. Most of those com- Of course, the education reforms panies have already steeped in are important but are not the only The industries transformations, technology and are learning fast answer. Businesses have a role to technological shifts and globaliza- about how IT and digital innova- play too. tion requires a new mindset for tion can transform their business- Education and the businesses both employers and for indi- es. But securing the IT baseline must join forces to produce viduals. Individuals also need to will simply be not enough. graduates who meet the chang- further develop their learnability: To respond, the IT must trans- ing needs of industries. Good their desire and ability to learn form from a cost center to a value practices show that when training new skills to stay relevant and creator. In the past, the IT roles initiatives are coordinated and remain employable. were typically about controlling set-up in partnership between costs, business processes, mainte- education (Schools/Universities) What are your expectations nance and other back ofÀ ce tasks. and employer (Business) they for developments in the IT “IT was not seen as a strategic can leverage large funds and sector for 2017 year based part of the business, and that additional expertise beneÀ tting on your company experi- reÁ ected on the perception of the the upskilling of future work- ence? CIO, who was seen as a support ers. Also, equally guiding young We are living in an era of techno- role rather than a strategic role, people towards educational logical revolution that is disrupt- rarely seen on board tables dis- choices leading to employment in ing and transforming societies, cussing methodologies, paths to shortage sectors or occupations governments and businesses. follow or how revenues were to can be a relevant solution. Such In today’s business environment, be achieved. That time is over”. measures can greatly increase new ideas can quickly turn into IT executives and experts will the number of students choos- new business opportunities. take more and more strategic ing an education, which leads to Startups quickly become serious leadership role in the near future. qualiÀ cations needed by the labor competitors. The ability to turn an IT and especially the CIO will market. idea into a new product or even soon become strategic partners of Another good practice is the a new business has never been the business side to drive innova- employers to invest in their easier or more accessible. Today, tion and growth. employees’ skills to increase the entrepreneurs with a good idea In one hand, having the IT sector resilience of its people and organ- has access to all of the infra- as one of the most promising in- izations. This may be achieved structure and resources that a dustry that has potential to yield through internal or external train- traditional large company would high, and on the other hand, the ing programs. have. They can rent computer on technological revolution provides Additional measures would be demand, get an ERP or CRM or Bulgaria with unique opportunity offering internships programs any other system as a service, use to reinvent itself, overcome the to the graduates and supporting online systems for transactions, stagnation and make the economy education systems. and have marketing using social innovate and prosperous. As a short-term measure some media. The days of needing mil- The world is changing fast. Old employers may consider obtain- lions of dollars to launch a new solutions no longer work. cover story 29

Iva Todorova, government and regulatory affairs executive, IBM Bulgaria: IBM Believes Cognitive Technologies Will Transform Our Personal and Professional Lives

The shortage of qualiÀ ed workers, ongoing learning is essential work force, the current to maintain employment, and govern- state of the labor mar- ment support that defrays employer ket is already a national costs for this training can attract job- problem, according to intensive investments. business associations’ ex- The same technology wave has in- perts. What is your point creased the premium for efÀ cient labor of view as an employer in markets. Overly restrictive rules in ar- the IT À eld? eas such as hiring and separations, and A new wave of digital non-traditional work models reduce technologies is changing the incentive for businesses and work- the rules for competitive- ers to adapt and succeed. By slowing ness. Policy makers need resource reallocation, these rules also to confront the new im- increase skills mismatches. peratives for skills forma- Demographics too is a catalyst for labor tion, labor market regula- market reforms. Younger workers and tion and worker mobility late career workers alike need employ- because economic success ment alternatives, such as À xed term depends on the ability of workers and contracts, project work, shared jobs, employers to pivot to the new oppor- freelancing, and cloud working. Many tunities. Cloud technology is enabling workers are adopting mobile work pat- new business models and is transform- terns to improve quality of life. ing business processes into digital services. IBM’s Institute for Business The gap between the quality of Value (IBV) found that 80 percent education, labor market require- of business leaders are experiment- ments and HR is deepening. ing with or considering new business What kinds of measures are models. needed to reverse the trend? Like IBM, many companies are report- IBM’s policy recommendations are de- ing persistent vacancies at the same signed to maximize the advantages to time as high youth unemployment be gained from contemporary informa- prevails. In the EU, two in À ve employ- tion technology trends. Policymakers ers have difÀ culties À nding people should adopt the overarching principle with the right skills. IBM’s IBV found of protecting the worker and not the that higher education institutions are job. SpeciÀ cally, governments should: not equipping enough students with 1) Improve the alignment of learning the skills they need to become effective with market needs. 2) Enable worker employees. transitions to growth areas and im- Courseware and classes need regular prove labor market adaptability. 3) updating to stay in alignment with Reduce barriers to high skilled foreign employer needs rather than teaching workers. for jobs that no longer exist. Partner- These policies will enhance economic ships of employers and educators are a success and encourage sustained em- necessary means to this end. ployment in well-paying jobs that are Forward-looking employers like IBM relevant for the new era of cognitive invest heavily in worker training as a computing. competitive imperative. For incumbent If you allow me shortly to specify a bit cover story 30

what do these measures mean for us: Now, cognitive computing is augment- ing human skills, creating new jobs, • Improve the pipeline of work-ready and is changing the way we work. graduates by better aligning what is taught with the needs of employers "Cognitive computing will make many using improved mapping of the edu- processes cheaper and more efÀ cient. cational curriculum with those needs. It will also do some things better than • Incent educational institutions to humans. What has always happened collaborate with employers through is that higher value is found in new programs such as internships, men- skills, and humans and our institutions toring, apprenticeships, participation adapt and evolve. There is no reason in curriculum design and other train- to believe it will be different this time. ing support. Indeed, given the exponential growth • Allow new employment models in in knowledge and discovery opened up addition to traditional full-time and by the Cognitive Era, there is every rea- non-regular models. A broad set of son to believe that the work of humans arrangements including those based will become ever more interesting, on tasks, key performance indica- challenging, and valuable", Dr. John tors, process, and other measures are E. Kelly III, Senior Vice President, IBM made possible by technology and are Research and Solutions Portfolio said. attractive to many workers. As a result, jobs are changing unusu- • Remove regulatory barriers to busi- ally quickly. Change is creating new ness restructuring jobs that are difÀ cult and transforma- to À ll, and stoking an tion. Reasonable Change immediate and unmet notice periods demand for new skills and compensation creates new jobs and competencies that when combined current employees with an effective that are diffi cult might not possess. safety net and IBM is deeply com- reskilling pro- to fi ll mitted to cognitive grams can ease technologies and their worker transi- ability to augment hu- tions. man intelligence. We believe strongly • Encourage intra-company transfers in their potential to beneÀ t society, and of high skill foreign workers, and to transform our personal and profes- high skilled immigration an, perma- sional lives. nent residence. Reduce the friction The key challenge for policy makers including quotas that impedes the is how to increase the adoption of the movement of these valuable workers powerful tools of cognitive computing, across borders. and to assist workers’ transitions to the in-demand job opportunities. Work- What are your expectations for ers in such a period of turbulence need developments in the IT sector for to remain employable and employers 2017 year based on your company need the freedom to pivot with new experience? processes and technologies. Industries and professions are being For cognitive computing and artiÀ cial transformed by data as it becomes intelligence such as IBM's Watson to the new natural resource. Cloud and succeed, companies need to build the cognitive technologies are shifting trust of prospective users, Ms. Rometty business processes into digital services said at a World Economic Forum panel and enabling new business models. in Davos, Switzerland. "It's not man or IBM’s Institute of Business Value (IBV) machine," she said. "It's a symbiotic re- research shows that most enterprises lationship. Our purpose is to augment have implemented or are planning to and be in service of what humans do." implement technologies that were non- existent as recently as À ve years ago. cover story 31

Alexander Milanov: Developing Dual Education System Is Key Our chance is in attracting international investors and supporting local investors in industries that are strongly dependent on the workforce, says the general manager of BMW Group Bulgaria, Alexander Milanov importance. Th e world is changing; $OH[DQGHU0LODQRYKDV EHHQJHQHUDOPDQ information technology and techno- DJHURI%0:*URXS logical companies are off ering new %XOJDULDVLQFH opportunities for trade, communica- ZKHQWKHUHSUHVHQWD WLYHRႈFHZDVVHWXS tion with consumers and organization DQGLQKH of production. Regretfully, those trends OHGWKHJURXS¶VDFWLYL WLHVLQ5RPDQLD6LQFH are not in line with the developments 0D\KHKDV in this country. Th e demographic EHHQFKDLUPDQRIWKH problems, the migration processes and PDQDJHPHQWERDUGRI WKH$VVRFLDWLRQRI&DU the education system do not further 0DQXIDFWXUHUVLQ%XO Bulgaria’s role in this regional process. JDULD%HWZHHQ Th e chances to speed up their industri- DQGKHZRUNHG IRU%DONDQ6WDUWKH al development belong to those nations JHQHUDOUHSUHVHQWD and territories that off er staff with the WLYHRI0HUFHGHV%HQ] necessary qualifi cation, desire for per- IRU%XOJDULDZKHUH KHKHDGHGPDUNHWLQJ fection, ethics and labor morals – and DQGVDOHVDQGZDVLQFKDUJHRIEUDQGVOLNH&KU\VOHU-HHS'RGJH within a certain fi nancial framework. 0LWVXELVKLDQG0HUFHGHV%HQ]+HVWXGLHGHFRQRPLFVDW8QLYHUVLW\ Bulgaria is not competing with the RI1DWLRQDODQG:RUOG(FRQRP\ countries in the region only. Southeast Asia, Continental China and South Business representatives say that America are fi ghting for the same share the labor market and the shortage of qualiÀ ed staff, especially in the of the pie and they will probably be IT, automotive and outsourcing joined by North Africa too. Increased industries, is already a national demand for workforce in these indus- problem. How do employers see tries has side eff ects too. Staff turnover that problem? is increasing, the investments in staff Bulgaria has its historic chance. Th ere training are at risk and the success of is a growing interest in investment and large-scale projects is uncertain. localization of operational business units in Central and Eastern Europe Is the gap between education and from diff erent geographical regions: the labor market widening? the European community, NAFTA and In Bulgaria, the staff with special and China. Th ere are fi nancial resources vocational secondary education is available for construction of capaci- scarce. Unfortunately, a lot of that staff ties that are not connected with the leaves the education system unpre- limited Bulgarian market only. Th at pared to create value. It needs addition- is an objective and long-term process al investment and time to be able to but the speed of reaction is of crucial meet the expectations of the industry. cover story 32

Th e situation is not very diff erent with automotive industry in Bulgaria. Th ose university graduates. Decisive changes investments are not connected with the are needed for integration of the dual Bulgarian market. Th e entry of such education system aft er the example of investors creates additional national all West European and already some income and offi cial economy. Th e rise East European countries. Th e industry in automobile sales on a global scale is and education need a statutory foun- a precondition for expansion of those dation for successful platforms. Many investments. Such investors are ready young Bulgarians study abroad. Most to allocate money for training the of them acquire practical skills and workforce they need. What is impor- knowledge that give them a chance tant for them is the availability of staff for fast integration in the Bulgarian ready to pass the necessary training but economy. Th ose people, however, are also ready to achieve labor productivity mobile and have high requirements for that is equal to or higher than that in work conditions, motivation systems neighboring countries. When we watch and prospects. All we – industry, state the processes in Poland, the Czech administration and education system Republic, Slovakia, Romania and Hun- – have to do a lot of work to overcome gary we see what potential for GDP the existing disproportions. growth Bulgaria has. Th e other part of the staff – the one needed for sale and How does the trend of staff short- service of automobiles in Bulgaria – is age in key sectors affect economic growth? faced by similar challenges. Besides Bulgaria is not rich in natural re- the high fl uctuation of the workforce, sources, nor is it a highly industrial- there are also problems connected with ized country with substantial capital its productivity and qualifi cation. Th e resources. Our chance is in attracting wide-spread gray economy in these international investors and support- sectors is a typically Bulgarian problem ing local investors in industries that that poses an additional burden on are strongly dependent on the work- investors through unfair competition. force. However, Bulgaria also needs a lot of qualifi ed staff in the service What are the main achievements of your sector in 2016 and what do you area. Regretfully, there is no proper expect from 2017? education platform for training sales Th ere is increasing consumer demand staff . Consumers see that every day. for automobiles in Bulgaria. Unfor- Economic growth can only be sustain- tunately, it is mainly for second-hand able and signifi cant when it is based on automobiles that are imported. Th at parallel growth in various unconnected does not help much for improving traf- industries. Solving the problem of staff fi c safety, the environmental picture, shortage in various areas is a precondi- especially in the big cities, economic tion for that. effi ciency and reducing the shadow What are the trends and how can economy in that type of trade. Of we overcome the staff shortage in course, the sales of new automobiles the automotive industry? are also growing but the ratio still Th at question can be split in two. Th e remains 9:1 for the old fl eet. Against fi rst question is related to the active that background the main achieve- investment in the area of development ments of the authorized sales centers and production of components for the for automobile are contained in im- cover story cover story 34

proving the quality of service, expand- nia, Hungary and Greece. Practice ing the range of services and off ering shows that the transport picture and attractive pricing conditions. Various safety improve much faster in countries modern models for fi nancing the need where the renovation of the fl eet and for mobility are becoming increasingly the promotion of environmentally- widely spread with the help of Bulgar- friendly vehicles, including e-vehicles, ian banks or leasing institutions. As is a national priority. Th e average age for now, the entry of the automotive of the automobile fl eet in Bulgaria is industry in terms of development and above 18 years: it is the oldest fl eet in production in Bulgaria is happening at continental Europe. Without a focus a two-digit growth rate. on the part of institutions and policy- We expect that the trend towards an makers, without adequate legislative increase in automobile sales will be and fi scal measures, we cannot expect preserved in 2017. a change. As a matter of fact, the size of the local market of new automobiles What are your expectations and and its sustainable development are an how does the Bulgarian market stand in relation to other European important precondition for speeding countries? up investment in production capacities Th e sales of new automobiles are rising and quality sale and service centers. throughout Europe with particularly Th at will create new and attractive jobs strong growth seen in Poland, Roma- too. Th e circle closes. Stoyan Zhelev: Businesses Must Cultivate Own Staff Employers should start defi ning more precisely the profi le of the employees they need IT, automotive and outsourcing 6WR\DQ=KHOHYLV&(2 industries, is already a national RI6R¿D)UDQFH$XWR problem. How do employers see WKHRႈFLDOGLVWULEXWRU that problem? RI3HXJHRWLQ%XOJDULD DQGRZQHURI$XWR%D Recently I have seen a trend of strong YDULD SUHYLRXVO\.D candidates applying for management PRU$XWR WKHGHDOHU positions at the companies I manage. RI%0:DQG0,1, %HWZHHQDQG Th ey have the training, strength and KHFKDLUHGWKH desire to start their career with us. Th ey PDQDJHPHQWERDUG RIWKH$VVRFLDWLRQRI are people with strong characters who $XWRPRELOH,PSRUWHUV like communicating, inspire confi - DQGWKHLU$XWKRUL]HG dence, like dynamics and are not afraid 5HSUHVHQWDWLYHVLQ %XOJDULD of taking risks. Th ey are purposeful and persevering personalities with stra- tegic thinking. Th is is not always the case with the lower-qualifi cation staff but we are highly motivated to become a preferred employer in our sector Business representatives say that the labor market and the shortage Is the gap between education and of qualiÀ ed staff, especially in the the labor market widening? cover story 35

I do not think it is a matter of At Auto Bavaria for instance sale expansion was crucial for education only. Th e focus should earlier this month we launched our success as offi cial distributor be on developing staff and shar- Trade Academy: an intern of Peugeot, ISUZU buses and au- ing practical experience – that is program for seeking talents. thorized dealer of BMW, MINI a very essential, responsible and Th at process will be mirrored in and Motorrad. Th e active off er- meaningful undertaking that can Service Academy, a program that ing of the fi nancial instruments help. People should have the pa- will start in two months. of Leasing House Sofi a Leasing tience to train and pass on their Students will have the opportu- also substantially increased the experience. All people should nity to try their skills and plan sale of such type of services in strive for personal development their career development. Young our group. and the passing on of personal people will have the opportunity experience enriches you and al- to continue working at Auto What are your expectations lows you to enter a new phase in Bavaria as employees. and how does the Bulgarian market stand in relation to the hierarchical career develop- Th e Trade Academy will con- other European countries? ment. People forget that things tinue for two months and each Th e Bulgarian automobile do not have to happen at any intern will have a clearly de- market is lagging behind other cost and immediately. Every day fi ned program to focus on the markets in Europe, both in terms is a new step. In the process of various activities in our business: of volume and in per-capita climbing you gradually acquire sale of new BMW and MINI terms. Th at will hardly change in all the qualities, habits and skills automobiles, sale of Motorrad the next few years due to the lack necessary for success. motorcycles, sale of second-hand of technical control and fi nan- automobiles, marketing. Th e cial stimuli for renovation of the How does the trend of staff program will include both prac- shortage in key sectors affect hopelessly outdated car fl eet. economic growth? tical experience and lectures by We project a rise in sales as com- Th e staff is at the basis of any the heads of the diff erent depart- pared to the previous year, based business and economic growth. ments: post-sale activities, spare on the results achieved in 2016 Th e complete hegemony of parts, logistics. and the potential of our region. effi ciency has been here for a Interns will have the opportunity Th e forthcoming premieres few years. Certain habits have to off er solutions, attend meet- of new models in 2017 will be had to be changed radically. ings, participate in the draft ing strong preconditions for success- To cope with the staff -shortage of the corporate correspondence, ful market presence. cliché together, employers need perform cold-calling acquisition. Th e 2017 priorities of the brands to start defi ning more precisely Th e initiative will help young we represent will be expanding the profi le of the staff they need talents get a better idea of their our market presence, both in the in order to optimize the process future career development. mass and the luxury segment, of reaching it. Muscles are built preserving our leadership on the What are the main achieve- with workouts: the selection is ments of your sector in 2016? bus market, increasing the share the most important process for 2016 was a challenging and of corporate sales, high client securing the right people that successful year. For Sofi a France satisfaction and constant im- will stand the workouts. Auto, IsuBus and Auto Bavaria provement of servicing at every the achieved results and the suc- point of contact and during the What are the trends and how cessful completion of a number whole sales and post-sales pro- can we overcome the staff cess. All that will defi nitely help shortage in the automotive of important projects are the industry? result of collective eff orts. attract more and more custom- I will tell you what our individu- Th e systematic and effi cient ers of used cars to the market of al contribution is to overcoming utilization of a large set of trade new automobiles. that shortage. instruments and programs for cradle 36

Can Human Bodies Regenerate? Not yet, is the short answer

businesses exist, our wounds heal and more than that – when young we can re- grow a cut À ngertip; even if we somehow lose part of the liver, it is regenerated.

But why can’t we regenerate a lost limb, or a damaged kidney, or a heart? We do have the same genes as the salamander that can regrow an amputated leg. At the fetus stage in the womb we can regrow anything that gets damaged, but not later. Evidently later on the human body loses some trigger “information” to start up these genes.

Since the 1990s, when the regenerative

Source: Wikimedia Source: medicine began to develop, a growing number of scientists believe that human We have the genes, By Chaika Christova body parts regeneration is achievable. but we have forgotten Over 3,000 investigators around the the fetus capability to regrow lost limbs. In fact our bodies do regenerate. All of world try to À nd the key for that. Some our 50-75 trillion cells are renewed every are studying the cells and the molecules 10 years. Our skin cells are replaced in the humans and try to À gure out how by new sells every 15-28 days. Our red they form, change, react and commu- blood cells die and are replaced every nicate between themselves. Other are four months and the white cells live looking for “scaffolds” that can make about an year. The annual rate of replace- the body produce the right tissue and ment of bone cells is 10%. Brain cells replace the damaged. Much effort, talent (neurons in the cerebral cortex), optical and hard work is exerted in studying the lens cells and female gametes are for bioactive molecules – the growth factors, life – they do die, but are not replaced, the biochemical and biophysics processes at least as far as contemporary science is in the body. At some point, collective aware of. knowledge gained in all those three main Thanks to these body abilities haircut spheres will lead to success, scientists How soon human bodies will be taught to regenerate damaged organs? cradle 37

say. In 5-10-15 years? No one dares to plied with the proper signals – proteins, predict... growth and transcription factors – to differentiate into muscle À bers or calci- At skin-deep level À ed bones. researchers succeeded to mend a wound The “scaffolds” are fabricated in the without scarring. The team of Profes- lab and then implanted where needed; sor George Cotsarelis at the University mechanical, chemical and/or electrical of Pennsylvania managed to do that by stimulation can be used to help their inducing fatty cells to form. The report of maturation in the human body. The con- the study was published this January in structs can be engineered with custom Science magazine. architectures – not only tailor-made in the needed dimensions, but they may in- The scar-forming cells, called myoÀ bro- corporate patients’ own cells to promote blasts, were “instructed” to transform tissue regeneration. into fatty cells, or adipocytes, in the lab. Research on mouse and human scar- There are still some problems and dif- forming tissue grown there found that À culties to overcome, as most part of the hair follicles were crucial in healing a work is on the nanoscale, but the team wound to scar-free skin; or regenerat- published their report in November 2016. ing scarred skin to healthy one. The Beyond tissue regeneration in the lab, signal, the “information” they released the researchers also used the scaffolds to is a BMP molecule (bone morphogenetic study certain cancer cells, such as stem protein). cell-like cells in glioblastoma, Dr. Zhang said in an interview. “It uses the same principle—using nanoscale scaffolding polymers—but to À nd better ways of doing the opposite: inhibit cell growth rather than promote it. That really demonstrates the utility of these technologies. And we’re at the right

Source: PopTech.org time to combine biological and engineer- ing approaches to make it happen”, she said This endeavor of the team builds on dec- ades of work into the growth, repair, and behavior of normal skeletal muscle, but also relies on knowledge of engineering and materials science. Stephen Badylak “The secret is to regenerate hair follicles À rst. After that, the fat will regenerate In-vivo bio-scaffolds in response to the signals from those are the goal of Dr. Stephen Badylak, pro- follicles,” Professor Cotsarelis said in the fessor of surgery at the University of Pitts- magazine. burgh School of Medicine (UPMC) and deputy director of the McGowan Institute Creating skeletal muscle and for Regenerative Medicine. His team has bone scaffolds succeeded in inducing the regeneration of muscle tissue in injured limbs. What is the À eld of Miqin Zhang, professor of they use for the treatment is extra cellular materials science and engineering at the matrix (ECM), made from pig's bladder. University of Washington. She and her team are working to make a synthetic, The ECM is naturally present between porous, biologically compatible scaffold cells in various tissues. Adding the arti- that mimics the normal extracellular en- À cial one at the injured body site serves vironment of skeletal muscle. In this 3-D two main purposes. First, it prevents architecture prototype cells are “seeded” the immune system from responding (such as stem cells), which are then sup- with inÁ ammation and scar tissue. Next, cradle 38

“We can teach the body to regenerate,” he added. Professor Michael Levin, director of the Center for Regenerative and Develop- mental Biology at Tufts University,

goes much deeper into the matter. Source: scienceforthepublic.org Source: His team has been researching the complexity of intercellular signals – the communication that governs cells ac- tivities and coordinates their actions: to differentiate, move here or there, reshape or cluster to form an organ. Those signals are biochemical and bioelectrical mes- sages, so the researchers use techniques Michael Levin it provokes patient's own stem cells to of molecular genetics, biophysics, and become muscle cells and regenerate the computational modeling. Their inter- lost tissue. disciplinary effort has led them to the Last spring the team conducted a small regeneration of legs of matured frogs study, in which À ve male patients, (normally only very young frogs can including two U.S. soldiers, whose legs regrow lost limbs), to the persuasion of were badly injured in Afghanistan, with a Á atworm to form a second head at the some 70-80% of muscle loss. No previous amputation site of its tail, and so on. surgeries and other treatments, includ- Molecular biology deals mainly with ing stem cells therapy, have worked to biochemical signals, Professor Levin improve their condition. In one case, the explains in an interview, while biophysi- patient had previously undergone 15 cal signaling is scarcely studied. And operations. that's part of his team's work. Seventeen years ago he already knew that bioelec- The study results, published in the tricity drives the intercellular signals, but journal Science Translational Medi- he needed to know more about how it cine, proved for the À rst time that works. regeneration of functional muscle in people with major muscle loss is pos- This newly achieved knowledge is start- sible. Six months after the implanta- ing to pay now. The exotic two-headed tion three of the patients, including tapeworms, tadpoles with an eye on the the soldiers, were at least 20 percent abdomen, practically immortal mice that stronger in À ve categories – and often can regenerate every damaged tissue or by far more than that. The other two organ in his lab are not Franken-crea- men also showed improvement, the tures fabricated to fascinate the public. researchers said. They are the proving grounds that allows the researchers to transcribe their dis- Last summer another group of 13 coveries and actions into mathematical patients were treated with the same models and software, which then help technique. Six months after implantation scientists to À nd ways to instruct cells they showed an average improvement what tissues to build. This might trans- of 37.3% in strength and 27.1% in range late to humans sooner than many expect. of motion tasks. CT or MRI imaging For instance, in certain cases the Tufts showed an increase in post-operative soft University team can suppress the pro- tissue formation in all 13 patients. liferation of tumors; they can persuade cells that are ready to become tumors to ECM is an “information highway be- turn to other structures. tween the different cells,” Badylak said. “It is rich with information, it tells cells “We still have a long way to go,” Levin where to go and what to do.” said. 39

Right Rental – the Partner of Event Managers

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Electronic Identifi cation for Public Services

By Mario Arabistanov electronic identiÀ cation processes on a Technology, Media and Telecommunications state level, but the complicated software Associate and hardware infrastructure within the Kambourov & Partners Attorneys at Law issuance of the electronic identiÀ cations brought the need to outsource certain What’s new? processes to third parties- Electronic In 2016 Bulgarian Parliament passed IdentiÀ cation Administrators. a new bill on electronic identiÀ cation, aiming to digitalize public administra- The Electronic IdentiÀ cation Admin- tion services and making them faster istrator will be a third party – a com- and more accessible for people. The so pany- which will assist the Minister of called Electronic IdentiÀ cation Act was Interior for issuing electronic identiÀ ca- passed with a delayed effect and shall tions. These companies will be a subject enter into force gradually, allowing the to strict requirements on the available state to have enough time to implement technical equipment, data protection, the hard- and software needed for the staff qualiÀ cation and À nancial criteria. functioning of the entire system. What will be the Electronic Goals of the new law IdentiÀ cation? By 2018 all Bulgarian citizens and From technical perspective, the electron- residents shall be able to identify them- ic identiÀ cation will be similar to the selves in digital environment through current qualiÀ ed electronic signature. an electronic identity certiÀ cate and to It will contain two cryptographic keys do various actions – including obtaining – a public key, which will be held at certiÀ cates from public authorities, À le the public authority and a private key, documents, authorization, etc. which will be held by the owner.

State governance and state In practical terms the electronic identity outsourcing may be stored on a smart card which will be issued with the personal ID card The Minister of Interior will be the and will be protected by a password or state body which will administrate the another security method. advice corner 41

At a later stage it may be technically enabled to request information on the possible that the electronic identity is persons, who have made checks on their embedded in a smartphone SIM card, electronic identity. which would increase mobility and accessibility of personal identiÀ cation. Electronic Authorization This would supposedly be accompanied The part of the Electronic IdentiÀ cation by legislative updates within the elec- Act with regards to electronic authoriza- tronic communications. tion will enter into force in November 2017. Storage and security of Data for Electronic IdentiÀ cation It will enable fast and easy authorization The electronic identiÀ cation would of a proxy to represent a person before engage the government in a concen- public authorities. The authorization trated storage of information of citizens. may be done through a simple entry of Any leak of such information may lead the proxy’s unique identiÀ cation num- to different personal and legal conse- ber in a registry and the representation quences. powers will be considered to have been granted automatically. The Electronic In the light of such a risk, it would authorization will be an equivalent to a be understandable if the government written form signed with notary veriÀ ed chooses to store the data in a cloud signatures. environment, which would allow dif- ferent authorities to access the required First steps to Electronic Justice information for matching the public and Digitalization of public services may the private keys. be considered as À rst step to electronic justice. The electronic authorization For security reasons, log history will alongside with all other services which be held, enabling to identify each and will be made available online, would every check of a corresponding elec- prepare the citizens and the state bodies tronic identity. The information will for a heavy transformation of our judi- be stored for a term of 10 years. Each cial system into a modern electronic one. holder of the electronic identity will be amcham events 42

AmCham Adds 8 New Members

Founders Foundation

is an entrepreneurship organization, representative of Founder Institute in Palo Alto, Calif., which is the world’s premier idea-stage accelerator, said Milen Ivanov, chairman. The aim is to help aspiring entrepre- neurs and big companies with corporate entrepreneur- ship build tech businesses and products to reach global markets. This will now be the largest such start-up supporter in So¿ a.

Foundation Global Libraries

is part of a world-wide network supported by the Bill and Melinda Gates Foundation Global Libraries initiative, said Spaska Tarandova, executive director. GLBF works in partnership with government institutions, non-government organizations and private funders to create favorable conditions for equal access to information, the Internet and electronic services for the citizens and to encourage information literacy, life-long learning, civic participation, and community development.

Georgiev, Todorov & Co.

is established in 1991 and is a leading Bulgarian law À rm with a full scope of services for both a large domestic cli- ent base and a range of foreign investors, said Tsvetelina Dimitrova, attorney-at-law. It is a top-tier À rm in some À elds like dispute resolution, and technology, media and telecommunications law.

Ingram Micro SSC EMEA EOOD

delivers a full spectrum of global technology and supply- chain services to businesses, explained Edoardo Peniche, managing director for Global Shared Services & Business Processes. Solid expertise in technology solutions, mobility, cloud and supply-chain solutions enables its business part- ners to operate efÀ ciently and successfully in the markets they serve. amcham events 43

The Institute of Internal Auditors (IIA)

is the exclusive representative of the International Institute of Internal Auditors for Bulgaria – a global association of the internal auditors, established in 1941 and uniting more than 175,000 professionals all over world, said Jordan Karabinov, chairman of the governing board. IIA Bulgaria is established in June 2003 and has some 500 members – professionals in the À elds of internal audit, À nancial con- trol and risk management.

McGregor and Partners

is a boutique commercial law À rm in South Central and Eastern Europe, with ofÀ ces in Bucharest and SoÀ a, said its manager Julian Spassov. The À rm is staffed by experi- enced Bulgarian and Romanian lawyers, headed by a British solicitor with some 16 years of experience of living and practicing in the region.

Refan Bulgaria Ltd.

was founded in 1991 and is a leading producer of per- fumery and cosmetics, said Velina Evtimova, sales man- ager. The product catalog includes over 250 perfume fra- grances for men and women, more than 550 high-quality cosmetic products for face, body and hair, handmade glycerin soaps, boutique candles and home perfumes.

Techceramic-M

Techceramic - M Ltd. is a developer, manufacturer and worldwide supplier of ceramic components with a broad and ever growing range of applications, said Preslav Hristov, R&D manager. Widely used in automotive cast- ing, the mechanical, structural, petrochemical, electrical, electronics and textile industries ceramic components deliver cost cutting advantages over more mainstream materials. new members 44

Eldrive is a regional integrated laboration with Fortum Charge & Drive, the provider platform for electric mobility and of a software solution for the charging network with clean transport solutions, devel- over 20 000 users on international scale. After register- oped by eMobility International ing on the platform client get access to the entire AD. The company is operating in charging infrastructure and services via mobile appli- the following main directions: cation and / or personal RFID tag. NEVEQ – a venture z Investment in charging stations network for electric capital fund, investing in technological start-ups is vehicles (EV); among major shareholders in Emobilty International z Operation and management of charging stations; AD. z Rental of electrical vehicles, EV Á eet management and other EV related services; Contacts: z E-car sharing solutions. Daniela Assenova, Procurist The company plans to install up to 500 charging Tel.: 02 421 05 03 points in Bulgaria, Romania, Greece and FYROM. The ofÀ [email protected] electric vehicles park will grow up to 200 vehicles until http://www.eldrive.eu the end of 2017. In relation to the charging structure Address: 18 Krakra Str., Á .2 operations Emobility International AD is in close col- 1504 SoÀ a

Petar Ivanov, Board closed the biggest ICT projects for US companies in member of AmCham Bulgaria. Petar has been always an active member Bulgaria. Twenty years of of US community in the country and region and have domestic and interna- been board member of Junior Achievement and tional experience in Held AmCham. He had working experience with board GM and Director roles in members of Exim bank and TDA of US. He had a very three Global US corpo- special focus on CSR education and startup com- ration. 3Com/US Robot- munities. ics, Cisco Systems and Microsoft. From 2010 to 2012 was Executive director Contacts: of Russia board inside Cisco Systems. He has worked Mr. Petar Ivanov and lived for two years in UK as Director Operations [email protected] Global strategy for BRIC countries. Petar had been 9B Latinka Str. working with all governments since 1999 and has 1113 SoÀ a

Janev & Janev is – The Worldcom Group ® and is a co-founder of the a leading strate- Bulgarian Association of PR agencies. anev & Janev gic communica- specializes in the À elds of crisis management, public tions consultan- affairs and strategic planning. In a world of informa- cy, established tion overload good public and business communica- in 1993. We provide a full range of communication tion is essential for building and maintaining a brand, services for local and international companies. The a team and a successful global or local company. company has gained extensive experience in the corporate, political and non-governmental sec- Contacts: tors. We have a successful track record in projects, Todor Ianev supporting the reforms in the banking, health care Managing Partner and pension sectors and funded by the EU Commis- Tel: +359 2870 0519 sion, the World Bank and the USAID in Bulgaria. The http://www.janev-janev.com company is a member of the international PR group Address: 17 Todor Stoyanov str. SoÀ a 1113