With its area of 1 009 910 km2 and population of slightly above 8 million, Bulgaria occupies the south-eastern part of the Balkan Peninsula. To the north, the Danube forms much of its frontier with Romania, to the west it has a mountainous border with Yugoslavia and to the south its neighbours are Greece and Turkey. Eastwards, its golden beaches open on the Black Sea. A small country with centuries-long history, Bulgaria stands at the crossroad of major routes from Europe to Asia. While undergoing substantial changes in its recent economic and social life, the country is firmly set on its way to a market economy and democracy.
The administrative breakdown of the country is in essence designed to meet the EU requirements in the course of the accession process. Level 2 includes 6 planning regions, which are not a part of the administrative structure, but are formed mainly for the purposes of economic planning. At level 3, the administrative breakdown comprises 28 oblasti. The next level includes 262 obshtini, which are the smallest administrative units with local self-government.
The economic and social analysis at all levels reveals sharp contrasts in regional development. The major disproportion is found in the South-West region, due to the presence of the capital Sofia within its boundaries. As a result, the region has the most favourable economic climate nationally coupled with an abundant and well educated labour force. However, the concentration of the population in the capital has resulted in Bulgaria's highest population density and a correspondingly negative impact on overall living conditions.
In contrast, the economy of the North-West region is lagging far behind the national level, the region having the highest unemployment rate in the country. Furthermore, in this region and in the adjacent North-Central region resides the most aging population in Bulgaria.
While the rest of the regions occupy the middle ground, there are substantial disparities on an inter-regional level. Nevertheless, all the regions have substantially suffered in the process of transition to a market economy, the main problems being the slow privatisation process, particularly with regard to the returning of agricultural land, and the substantial cut in industrial production. The latter gave rise to a dramatic rise in unemployment which, although experiencing temporary improvements, remains a serious problem.
This text has not been officially validated by the Bulgarian statistical office.
