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Copyright: U.S. Agency for International Development (USAID), Bulgaria, 2007 CONTENTS A SNAPSHOT OF BULGARIA . 10 PREFacE . 11 i . EXECUTIVE SUMMARY . 13. ii . OVERVIEW OF BULGARIA’s TRANSITION . 23. A . BacKGROUND AND EARLY TRANSITION YEArs, 1990–1996 . 23 B . STABILITY AND RAPID Reform, 1997–2001 . 25 C . CONSOLIDATION AND INTEGRATION WITH THE EURO-ATLANTIC STRUCtures, 2002–2007 . 26 D . EU MEMBERSHIP, 2007 . 26 iii . EARLY TRAnsition 1990–1996 . 29. A . INITIAL PROGRAM STRATEGY AND PRIORITIES . 29 1. Initial USAID Assistance Strategy . .30 2. 1994–1996 Strategy............................................................................31 B . MAJOR ACTIVITIES AND LESSONS LEARNED . 32 1. Support for Free Markets and Private Enterprise Growth during the Early Transition Period . 33 a. Financial and Economic Policy Reform . .33 (1) Financial Reform . 34 (2) Collateral Law . 34 (3) Lessons Learned in Implementing Economic Policy Reform.............................................35 b. Land Restitution.....................................................................................35 c. Agriculture Support Programs..........................................................................36 (1) Direct USAID Support . .36 (2) Support through the U.S. Department of Agriculture (USDA) ..........................................37 (3) Lessons Learned from Agriculture Programs ........................................................38 d. Privatization ........................................................................................38 (1) Market Privatization............................................................................38 (2) Municipal Privatization..........................................................................38 (3) Mass Privatization . .39 (4) Lessons Learned from Privatization Programs . .39 e. Housing . .40 f. Small and Medium Enterprise (SME) Support . 40 (1) Firm-Level Technical Assistance and Training Support .................................................40 (2) Lessons Learned from Firm-Level Assistance ........................................................41 (3) Financial Support for SMEs . 42 (4) Lessons Learned from Implementing Financial Programs...............................................43 g. Energy Sector Reform . 43 (1) Power Sector Reform . 43 (2) Energy Efficiency . 44 (3) Lesson Learned from Implementing Energy Efficiency Programs.........................................45 (4) Nuclear Energy Safety ..........................................................................45 h. Support for the Labor Market Transition . .46 i. Summary Assessment of the Free Market and Private Enterprise Program in the Early Transition Period ...............46 3 USAID BULGARIA ASSESSMENT REPORT 2. Support for Democracy and Governance during the Early Transition Period . .47 a. Political Process Support . 48 (1) International Republican Institute . .48 (2) National Democratic Institute/Bulgarian Association for Fair Elections and Civil Rights (BAFECR) . .49 (3) Lesson Learned in Implementing Political Process Programs ............................................50 b. Civil Society Strengthening (including ethnic integration and labor unions) .......................................50 (1) Minority Issues................................................................................51 (2) Democracy Commission........................................................................51 (3) Trade Unions .................................................................................52 (4) Environmental NGOs and Grassroots Community Participation . 53 (5) Democracy Network I (DemNet I) . .53 (6) International Center for Not-for-Profit Law (ICNL) . 55 (7) National Forum Foundation/Freedom House . .56 c. Local Government Assistance: . .57 (1) University of South Carolina.....................................................................57 (2) Environment, Housing and Municipal Privatization Activities............................................58 (3) Lessons Learned in Implementing Local Government Support Programs..................................59 d. Media Strengthening: .................................................................................59 (1) USIA and the International Media Fund . 59 (2) ProMedia I . 61 (3) Lessons Learned in Implementing Media Programs . .61 e. Legal and Judicial Reform: . .62 (1) American Bar Association Central and East European Law Initiative (ABA CEELI) . 62 (2) Lessons Learned Implementing Legal and Judicial Reform Programs......................................63 f. Parliamentary Strengthening: . .63 (1) Special Task Force on the Development of Parliamentary Institutions in Eastern Europe . .63 (2) Lessons Learned in Implementing Parliamentary Strengthening Programs . .65 g. Summary Assessment of the Democracy and Governance Program during the Early Transition Period ................65 3. Support for the Environment during the Early Transition Period .........................................65 a. Strategy and Approach . .66 b. The Regional Environmental Center .....................................................................66 c. Environmental Protection Agency Activities...............................................................67 d. Biodiversity Support Program..........................................................................67 e. Water for Sanitation and Health (WASH) Program.........................................................69 f. World Environment Center (WEC) Waste Minimization Project . 70 g. Central and Eastern Europe Environmental Economics and Policy (C4EP) Project.................................72 h. Environmental Action Program Support (EAPS) Natural Gas Conversion Project .................................73 i. Summary Assessment of the Environment Program during the Early Transition Period . .74 4. Humanitarian and Social Sector Assistance during the Early Transition Period . 76 a. Medical Supplies through Catholic Relief Services (CRS) .....................................................77 b. Young Men’s Christian Association (YMCA) of the USA.....................................................77 c. International Eye Foundation (IEF) . 78 d. Hospital Partnerships.................................................................................79 e. Summary Assessment of Humanitarian and Social Sector Assistance during the Early Transition Period . .80 C . SUMMARY OF OVERALL PROGRAM RESULTS DURING THE EARLY TRANSITION PERIOD . 81 1. Support for Free Markets and Private Enterprise Growth . 82 2. Support for Democracy and Governance...........................................................82 3. Support for the Environment.....................................................................82 4. Humanitarian and Social Sector Assistance..........................................................82 D . THE PROGRESS OF THE TRANSITION DURING THE EARLY YEARS . 83 4 IV . POLITICAL STABILITY AND RAPID Reform 1997–2001 . 85. A . PROGRAM STRATEGY AND PRIORITIES . 85 1. 1998–2002 Strategy............................................................................86 2. Revisions of 1999..............................................................................87 B . MAJOR ACTIVITIES AND LESSONS LEARNED . 88 1. Support for Free Markets and Private Enterprise Growth during the Rapid Reform Period....................88 a. Bank Restructuring and Reform.........................................................................88 (1) Results . 89 (2) Lessons Learned from the Bank Reform Program . 90 b. Capital Markets . .90 c. Pension Reform . .91 (1) Results . 92 (2) Lessons Learned from Implementing the Pension Reform Program . 92 d. Support to SMEs: Firm Level Assistance..................................................................93 (1) Results . 95 (2) Lessons Learned from Firm Level Assistance ........................................................96 e. Support for Policy Reform.............................................................................97 f. Financial Support for SMEs.............................................................................97 (1) BAEF/BACB . .97 (2) CARESBAC/SEAF.............................................................................99 (3) Microfinance . 101 (4) Development Credit Guarantees . 102 (5) Lessons Learned from Financial Support Programs . 102 g. Energy Programs . .103 (1) Power Sector Reform . .103 (2) Lessons Learned in Power Sector Reform . .103 (3) Energy Efficiency . .103 h. Health Finance Reform . 104 i. Summary Assessment of the Free Market and Private Enterprise Program during the Rapid Reform Period............105 2. Support for Democracy and Governance in the Rapid Reform Period ...................................106 a. Local Government Assistance .........................................................................106 (1) Local Government Initiative (LGI)................................................................106 (2) Support to Municipal Associations and Think Tanks..................................................108 (3) International City/County Management Association Technical Twinning Program . .108 (4) Partners in Local Economic Development and Government Effectiveness (PLEDGE) .......................109 (5) Lessons Learned From Implementing Local Government Support Programs ..............................110 b. Civil Society Strengthening (including labor unions) ........................................................110 (1) Democracy Network II
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