Smolyan District CHEPELARE > Population (2019) 103,532 DEVIN Borino > Territory (sq. km) 3,192.8 DOSPAT Banite > Number of settlements 240 SMOLYAN MADAN > Share of urban population (%) 56.4 RUDOZEM NEDELINO ZLATOGRAD DP in Smolyan district has been growing though at The population of Smolyan district is among the fastest a slower rate than the country’s average, and the ageing in the country. Compared to the other districts, it Gmargin between them has widened over the past twenty continues to have some of the best indicator values in the years. Incomes continue to exceed the national averag- education category, with the highest teacher-student pro- es. Employment rates sustain relatively low levels, and portion and the lowest share of repeaters. Healthcare in unemployment rates are high. A major challenge for the the district is at a relatively good level. The share of people future development of the local labor market is popula- with health insurance is among the highest in the coun- tion ageing. Investment activity in the district is low. The try. Smolyan district ranks first in the whole of Bulgaria in specific geographic location of the district as a border terms of security and justice. The workloads of the local region and its mountainous terrain account for its rela- judges are low, while the detection rate is the highest in tively poorly developed infrastructure. In 2020 Smolyan the country. Smolyan is one of the districts with the low- again ranked among the districts with the lowest local est volumes of carbon dioxide emissions, but the share of tax rates. The transparency ratings of the local admin- household waste handed over for recycling and treatment istration remain below the average ones of the country. is exceptionally small. The intensity of its cultural life is low. ECONOMIC DEVELOPMENT SOCIAL DEVELOPMENT WEAK UNSATISFACTORY AVERAGE GOOD VERY GOOD WEAK UNSATISFACTORY AVERAGE GOOD VERY GOOD Income and living standard Demography Labor market Education Investment and economy Healthcare Infrastructure Public order and security Local taxes Environment Administration Culture Smolyan District 85 ECONOMIC DEVELOPMENT Income and living standard Over the last two decades, GDP in Smolyan district has been places the district even further behind in terms of the average growing though at a slower pace than that of Bulgaria’s economy value in Bulgaria’s economy. in general. As a consequence, the district is increasingly lagging Utiliza tion of EU funds in Smolyan district is identical to the aver- behind the average level in the country by a margin which has age national rate. By 15 June 2020 payments made in the district gone up from 20% in 2002 to over 32% in 2018. In 2018, GDP per to beneficiaries under EU operational programs were 1,975 BGN/ capita in the district rose by 8.8% to reach 10,600 BGN. The av- person. The leaders in the region in the utilization of European erage gross annual salary increased by over 11% to 10,100 BGN, funds are the municipalities of Smolyan, Rudozem and Zlatograd. compared to 13,800 BGN in the country. Household incomes remain higher than the national average, but in 2019 they registered a slight relative decline to 6,354 BGN/ household member compared to 6,013 BGN in the country. Infrastructure Poverty levels in the district also remained lower than the na- The specific geographic location of the district as a border re- tional average in 2019. The share of the population living with gion and its mountainous terrain account for its relatively poorly material deprivation was extremely small, and at 12.8% the dis- developed infrastructure. Smolyan lacks railroads, highways and trict ranked second in the country after the capital. The share of first-class roads, which is an impediment to traffic on its territory. the population living below the national poverty line was 21.2%, The den sity of its road network is 16.9 km/100 sq.km compared versus 22.6% on average countrywide. to the national average of 17.9 km/100 sq.km. Road quality is relatively good and in 2019 it improved even more, so that the share of roads with surfaces in good condition reached 53.8%, Labor market against the average of 41.4% for the whole country. The relative share of households with internet access has been In 2019, economic activity in Smolyan district remained at a rel- rising in the past few years, and in 2019 it reached a whole 82.4%, atively high level – 75.3% , compared to 74.3% in the country. versus the national average of 75.1%. This was accompanied by a decline in both employment and unemployment rates. The employment rate remained relatively low – 66.5%, against 70.1% on a national scale, while the unem- ployment rate dropped to 8.8%, which, however, was double the Local taxes national average. The educational structure of the workforce in the district has un- Smolyan remained among the districts with the lowest local tax- dergone a slight improvement, as the people with a university es in 2020. The biggest differences of nearly 40% compared to the degree have increased by 1 p.p. to 23.5%, against 28% nationally, national average were observed in the tax rates on retail trade while the number of those with primary education or less has and taxi services. In 2020, the average level of the retail trade tax declined by 1 p.p. to 14.3%, versus the national average of 17.6%. in the municipalities in Smolyan district fell to 7.74 BGN/sq.m, versus 12.93 BGN/sq.m in the country. The annual patent tax for A major challenge for the future development of the local job taxi transportation remained at an average of 318 BGN, com- market is population ageing. Smolyan is the district with the pared to 498 BGN nationally, and the tax rates on motor vehicles lowest population replacement ratio of the people aged 15-19 were 16% lower than nationwide. to those aged 60-64, which in 2019 fell to 41.8%, compared to 65.9% nationwide. Administration Investment and economy The self-assessment of the local administration on the develop- Investment activity in the district remains low. In 2018, the num- ment of e-government continued to improve over the past three ber of registered enterprises went up and reached 51 per 1,000 years, but in 2020 it still remained considerably below the nation- persons, which, however, is still below 59 per 1,000 persons as al average, with 2.73 out of 5.00 p. in the district and 3.22 coun- the average one for the national economy that year. FTA expend- trywide. At the same time, the rate of increase in their self-assess- iture has also been rising but is still far below the one in the years ment on the provision of one-stop shop services within the same before the global financial and economic crisis. More visible in three-year period was sufficient to exceed the national average. 2018 was the growth of cumulative FDI but that, too, amounted The AIP Active transpar ency rating of the local administration to as little as 860 EUR/person, which was four times lower than across the district remained lower than the national average. It the national average. reached an average of 67.5% for the whole district, against 70.7% In 2018 pro duction value in the district also grew but at a slow- nationally, with the municipalities of Zlatograd, Dospat and Che- er pace than the average one in the country – only 6.9%, which pelare achieving the highest transparency ratings. 86 Regional Profiles 2020 SOCIAL DEVELOPMENT Demography The population of Smolyan district is one of the fastest ageing in reached 562 per 100,000 persons, thus exceeding the national the country. 2019 was a year of both a declining birth rate and average. increasing out-migration. The natural growth rate dropped to The relative number of patients treated in the local hospitals re- –9.7‰, compared to the national average of –6.7‰, while the mained relatively low in 2019 with 220 per 1,000 persons, versus net migration rate decreased to –8.4‰. 254 per 1,000 persons countrywide. The district’s age de pendency ratios have been deteriorating fast and are considerably more unfavorable than the national aver- Public order and security ages. In 2019 the ratio of people aged 65+ to those aged 0-14 Smolyan was the top-ranking Bulgarian district in 2019 as re- reached 216%, compared to 150% nationally, and that to the 15- gards security and justice. The workloads of the local criminal 64 age group was 39%, versus 34% countrywide. judges were among the lowest in the country, with a monthly The share of urban population in the district is relatively small – average of 5.2 cases per judge, compared to 9.1 cases national- 56%, against the national average figure of 74%. At the same time, ly. This has a beneficial effect on the speedy delivery of justice. the density of population in urban areas remains relatively high Pending cases make up a bare 7%, against 10% in the country. at 1,775 persons/sq.km, versus 1,510 persons/sq.km for the whole Smolyan is also one of the districts with the lowest crime rates in country. the country. Registered crimes against the person and property Education number 6 per 1,000 persons, with 11 per 1,000 persons as the national average figure. At the same time, the detection rate in Smolyan continues to be among the districts with the best the district is the highest in the whole of Bulgaria – 74% in the performance in the education category.