Rural diversification in Bulgaria

Agriculture has always been very important for the Bulgarian economy, but during the socialist period there was considerable progress made in the diversification of employment opportunities in rural areas. While many people commuted to non-agricultural jobs in the townships (and there was a large permanent transfer from rural to urban areas), there were additional opportunities in small factories and local services in the villages themselves. The transition has seen these opportunities much reduced, at precisely the time when full-time paid work in agriculture has declined due to market restructuring while complex problems have emerged associated with liquidating the state-run cooperatives and establishing a viable alternative. The paper discusses the general issues and presents a case study from the north-central part of the country. The rebuilding of a cooperative farming system (along with other forms of consolidation) is a positive trend which could increase spending power in the villages and help in the growth of employment in rural industries and services. This revised version was published online in July 2006 with corrections to the Cover Date.