Discussion Papers 2007.
Regionality and/or Locality 169-177. p.
SOCIAL AND ECONOMIC CHANGES IN
BLAGOEVGRAD IN CONNECTION WITH THE
INTEGRATION OF BULGARIA’S TO EU
ALEKSANDRA RAVNACHKA

This research aims to demonstrate, analyze and assess the socio-economic changes
in Blagoevgrad municipality in connection with Bulgaria's integration to the EU.
The municipality of Blagoevgrad is located in Southwest Bulgaria and occupies
an area of 628 km2. According to the regional scheme of the country, the munici-
pality includes the town of Blagoevgrad and its adjacent 25 villages. The town of
Blagoevgrad is situated of 100 km south of the capital city of Sofia and proximity
by the Republic Macedonia and Greece. The geographical location of the munici-
pality  favours  its  development.  The  demographic  factors  have  a  considerable  im-
pact  on  the  development  of  Blagoevgrad  municipality.  Until  1998  its  population
was growing but since then it has been slowly decreasing. During 1992–2001 the
average  annual  population  drop  was  by  -0.05%.  The main  causes  for  this  decline
are a low birth rate, high death rate, migration, etc. In 2005 the inhabitants of the
municipality  were  77,183  (data  source:  GRAO)  which  constituted  23.2%  of  the
district's population and 1.0% of the country's population (Table 1, Figure 1).
Most  of  the  municipality’s  population  lives  in  the  town  of  Blagoevgrad.  The
share of urban population in the municipality is 91.2% and has the rural population
– 8.7%. For comparison sake the ratio urban: rural population in the whole district
is  57.2%:  42.8%.  In  the  district  center  (the  town  of  Blagoevgrad)  is  concentrated
40.4% of the district’s urban population. Great differences can be observed in the
urbanization  processes  in  the  individual  settlements,  which  had  negative  results:
depopulation  of  numerous  villages,  deterioration  of  the  population  age  structure,
etc. The rural population in Blagoevgrad municipality has been declining since the
mid–1950s.  The  same  applies  to  most  of  the  villages  in  the  Blagoevgrad  district.
The prognoses are that with Bulgaria's accession to the EU and with the develop-
ment of the rural and ecological tourism, the population in the villages will increase
(Figure 2).
Generally,  the  demographic  processes  in  Blagoevgrad  municipality  have  the
following characteristics:
1  Preservation of the total number of population, increase of the urban and de-
crease of the rural population;

Aleksandra Ravnachka :
Social and Economic Changes in Blagoevgrad in Connection with the Integration of Bulgaria's to EU.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 169-177. p. Discussion Papers, Special

170
ALEKSANDRA RAVNACHKA
2  Favorable reproduction potential of the population in the district town (The
share of young people is high – over 22 per cent)  and degraded reproduction
parameters and population aging in the villages;
3  Development of population of Blagoevgrad with high labour potential, high
educational and qualification level in the town of Blagoevgrad.
The  integration  of  Bulgaria  with  the  European  structures  is  accompanied  with
difficult  and  continuous  transition  to  market  economy.  A  number  of  socio-eco-
nomic  changes  have  taken place  all  over  the  country  and in  Blagoevgrad  munici-
pality  in  particular,  which  have  led  to  a  considerable  decrease  in  the  number  of
employed persons and to the increase of unemployment. The employment in Bla-
goevgrad municipality began to drop in the beginning of the 1990s and reached its
climax  in  1990–1995.  In  2003  the  employed  persons  are  about  a  40–50  per  cent
less than that in 1990.
Owing  to  the  different  economic  development  rates,  to  the  economic  reforms
and  to  the  work  force  changes,  substantial  transformations  occurred  in  the  em-
ployment  by  economic  sectors  and  forms  of  ownership.  The  restructuring  of  the
ownership  in  the  sphere  of  economy  and  the  establishment  of  the  private  sector
raised the share of the employed in the latter (Geography of Bulgaria…, 2002). In
2003  the  private  sector  provided  jobs  for  about  63.9per  cent  of  all  the  employed
people while the public one – for 36.1per cent (Figure 3).
Table 1
Population by municipalities in Blagoevgrad District 1985–2003
Municipalities
1985
1992
1995
1996
1997
1998
1999
2000
2001
2003
Bansco
15,442
14,600
14,071  14,032
14,010
13,769
13,574
13,472
13,988  13,394
Belitsa
9,757
10,110
9,956  10,007
9,915
9,861
9,783
9,748
9,748
9,539
Blagoevgrad
72,681
78,810
81,357  81,011
81,114
80,882
80,094
79,312
78,467  77,346
Gotse Delchev
32,110
33,074
32,796  32,963
33,144
32,894
32,716
32,745
32,784  32,136
Garmen
14,636
15,014
15,063  15,185
14,832
14,764
14,697
14,620
15,114  14,705
Kresna
7,108
6,947
6,867
6,837
6,758
6,651
6,568
6,432
6,284
5,948
Petrich
57,483
57,829
57,709  57,775
57,477
57,223
56,955
57,490
58,086  57,450
Razlog
24,211
23,508
22,999  22,888
22,821
22,608
22,331
22,218
22,197  21,652
Sandanski
45,143
45,097
44,634  44,668
44,347
43,746
43,407
43,442
43,403  42,475
Satovcha
16,851
18,350
18,309  18,392
18,385
18,366
18,277
18,265
18,032  17,576
Simitli
16,722
16,840
16,766  16,771
16,800
16,623
16,488
16,353
16,173  15,531
Strumiani
8,719
7,957
7,624
7,722
7,629
7,412
7,261
7,038
6,881
6,564
Hadjidimovo
12,219
12,147
12,053  12,064
11,956
12,044
11,966
11,870
11,037  10,551
Yakoruda
11,113
11,354
11,204  11,195
11,139
11,064
11,021
10,914
11,176  10,771
Source:  GRAO,  DSRD  of  a  District  with  Blagoevgrad  as  its  Administrative  Center  during  2005–
2015.

Aleksandra Ravnachka :
Social and Economic Changes in Blagoevgrad in Connection with the Integration of Bulgaria's to EU.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 169-177. p. Discussion Papers, Special
SOCIAL AND ECONOMIC CHANGES IN BLAGOEVGRAD IN CONNECTION …
17
1
Figure 1
Dynamics of Population in Blagoevgrad Municipality 1985–2005
84000
82000
80000
78000
76000
74000
72000
70000
68000
1985 1992 1995 1996 1997 1998 1999 2000 2001 2003 2005
Population

Source: GRAO; OSRR.
Figure 2
Share of urban and rural population in Blagoevgrad Municipality
100
91,5
90,9
91,2
90
80
70
60
50
40
30
20
8,5
9,1
8,7
10
0
1999
2001
2005
Urban Population
Rural Population

Source: GRAO;

Aleksandra Ravnachka :
Social and Economic Changes in Blagoevgrad in Connection with the Integration of Bulgaria's to EU.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 169-177. p. Discussion Papers, Special
SOCIAL AND ECONOMIC CHANGES IN BLAGOEVGRAD IN CONNECTION …
17
3
−  increase of the purchasing power of the people;
−  slow income equalization in the state-owned and private sector;
−  development and operation of a new pension system;
−  Growing importance of the programs for employment encouragement.
Due  to  the  economic  crisis,  which  took  place  in  the  1990s,  and  the  resulting
from it privatization, restructuring etc., substantial changes occurred in the produc-
tion volume, forms of ownership and branch structure of industry in the municipal-
ity. ‘This is the period when the production drop was most marked and when most
of the plants in the sphere of machine building, metalworking and electrical indus-
tries  were  privatized.  A  lot  of  firms  were  established  in  light  industry,  owing  to
which significant part of the output was produced by the private sector’ (M. Ilieva,
Geography of Bulgaria 2002).
The manufacture of food, beverages and tobacco participates with the highest
share in the industrial structure of the municipality. Very important for the devel-
opment of this economic branch are the abundant raw materials and the great con-
sumption  closely  associated  with  the  demands  of  plenty  of  students  and  tourists.
The small and medium-sized firms constitute 60% of the total number. Prevailing
is the private ownership.
Most significant for the economy of the municipality is the manufacture of to-
bacco.  The  largest  and  the  most  modern  tobacco  plant  are  built  in  Blagoevgrad,
which produces 40% of the total output. The other manufactures (mainly of meat,
meat  products  and  alcoholic  drinks)  are  concentrated  in  small  and  medium-sized
enterprises. (District Strategy for Regional Development of a district with Blagoev-
grad as its Administrative Center during 2005–2015).
Recently the manufacture of wearing apparel and knitwear has gained in im-
portance  for  the  economy  of  Blagoevgrad  municipality.  Various  articles  are  pro-
duced  –  ladies  and  men's  ready-made  clothes,  shirts,  overalls,  woolen  knitwear,
cotton  fabrics,  etc.  This  branch  is  remarkable  for  the  participation  of  foreign  in-
vestors in it (Greek, German, French) having established either their own firms or
set up joint ventures in the municipality. Many of these firms are competitive and
export-oriented  (‘Stroumatex’  JSC,  ‘Milena’  Crafts'  Cooperative,  ‘Balkantex’,
etc.). The development of wearing apparel manufacture is stimulated by small in-
vestments, cheap work force and low labour qualification at the very appointment
of the employees. Therefore, the branch is very mobile and with uncertain perspec-
tives for development within the municipality limits. Most of the Greek workshops
perform assembly production activities, which are temporary and can be removed
from the region. Hence, an alternative to this type of production has to be found in
the future (District Strategy for Regional Development of a district with Blagoev-
grad as its Administrative Center during 2005–2015).

Aleksandra Ravnachka :
Social and Economic Changes in Blagoevgrad in Connection with the Integration of Bulgaria's to EU.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 169-177. p. Discussion Papers, Special

174
ALEKSANDRA RAVNACHKA
The  manufacture  of  castings,  metal  articles  and  machinery  is  concentrated  in
about  ten  firms  mainly  in  the  district  town.  A  persistent  downward  trend  can  be
observed in the manufacture of electrical machines and high-precision equipment.
In the 1980s this branch made an impressive progress but in the 1990s experienced
a deep crisis. This is caused basically by the reduction of markets, the lack of in-
vestments, etc.
The  manufacture  of  wood,  wood  products  and  furniture  is  based  on  the  local
raw materials and has good perspectives. There are about 15 wood processing en-
terprises. Most of them are small and are either affiliates of foreign companies or
export  their  production  to  Greece,  Turkey,  Germany  and  some  other  countries.
Most of the enterprises have been recently established and afford opportunities for
alternative  employment  because  of  the  closure  of  the  enterprises  where  the  new
entrepreneurs  have  worked  before. The  main  problem  this  industrial  branch  faces
is, on the one hand, the insufficient quantities of timber (the forests cover 45% of
the municipality’s area) and on the other, the illegal export of timber.
The tertiary sector is the second important economic sector in the municipality.
In  compliance  with  the  growing  and  development  the  economy,  the  business  and
finance services, credits and insurance become more intensive. ‘A big contribution
to  the  development  of  service  sector  has  the  town  of  Blagoevgrad  where  are  lo-
cated  all  state  municipal  administrative  bodies,  higher  schools,  health,  transport,
trade and financial establishments. Predominant in this sector are trade, communi-
cations,  tourism  and  finance-and  credit  institutions’  (Boris  Kolev,  Geography  of
Bulgaria 2002).
Two types of transport are developed in Blagoevgrad – railway and motor ones.
The  transport  network  density  of  the  municipality  (290.3  km  per  1000  km2)  is
higher than that of the district (267.7 km per 1000 km2) and slightly lower than the
national one  (333 km per 1000 km2). The municipality is cut through by the inter-
national motorway E–79, (Blagoevgrad-Simitli-Koulata) which plays a significant
role in the district town's development (Table 2).
The  railway  Sofia-Blagoevgrad-Koulata  is  electrified  and  guarantees  fast  and
high-quality  service  of  the  passenger  and  freight  traffic.  The  socio-economic
changes during the transition period substantially affected the transport activities.
The  present-day  characteristics  of  the  social  infrastructure  in  the  region  are  a
consequence of a continuous development and restructuring. The trade network is
in very good shape. It is concentrated in the town of Blagoevgrad where are located
over 90% of the trade establishments in the municipality. Some big Bulgarian and
foreign  supermarket  chains  such  as  Technomarket,  Metro,  etc.,  operate  here.  The
market  infrastructure  incorporates  a  lot  of  institutions,  (banks,  insurance  compa-
nies, stock markets) which directly serve the municipality's economy.
The educational infrastructure in the municipality takes shape on the basis of the
current  requirements  and  demands  of  society.  It  functions  due  to  the  relatively

Aleksandra Ravnachka :
Social and Economic Changes in Blagoevgrad in Connection with the Integration of Bulgaria's to EU.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 169-177. p. Discussion Papers, Special
SOCIAL AND ECONOMIC CHANGES IN BLAGOEVGRAD IN CONNECTION …
17
5
good  material  equipment,  the  availability  of  professionals  and  children.  With  its
two universities (the Southwestern and the American) and three colleges Blagoev-
grad has become an important center of higher education. The location of universi-
ties and vocational schools of national and regional importance encourage the de-
velopment not only of the municipality, but also of the whole district. Nevertheless,
the  socio-economic  and  demographic  changes  (the  reform  in  education,  the  de-
clining  birth  rate,  etc.)  will  make  an  impact  on  the  future  development  of  educa-
tion.
Table 2
Density of Road Network (1000 kv.km)
Territorial Units
І class
ІІ class
ІІІ class
Total
Bulgaria
27.1
34.5
107.1
333
Blagoevgrad District
13,50
24
63
267.7
Municipality in Blagoevgrad District

Blagoevgrad
22
–
77
290.3
Bansco
–
65
5
158.4
Belitsa
–
34
50
417.4
Gotse Delchev
–
70
53
214.5
Garmen
–
–
100
230.6
Kresna
32
–
12
164.7
Petrich
18
–
116
473.8
Razlog
–
63
7
146.6
Sandanski
20
–
80
277.5
Satovcha
–
–
113
207.1
Simitli
41
39
11
211.6
Strumiani
28
–
121
424.8
Hadjidimovo
–
48
112
267.9
Iakoruda
–
74
–
169.6
Source: DSRD of a District with Blagoevgrad as its Administrative Center during 2005–2015.
The health network is unevenly distributed. It is most dense in the town of Bla-
goevgrad.  It is most dense in the town of Blagoevgrad where there are 5 hospital
establishments. In comparison with 1999, the health establishments, that are func-
tioning,  have  not  decreased  in  number  but  by  contrast,  their  beds  have  (by
10percent). The health service in the municipality encounters problems, which are
common throughout the country and are related to the on-going health reform. The
reduced  medical  staff  influences  the  health  insurance  of  the  population  (District
Strategy for Regional Development of a district with Blagoevgrad as its Adminis-
trative Center during 2005–2015).

Aleksandra Ravnachka :
Social and Economic Changes in Blagoevgrad in Connection with the Integration of Bulgaria's to EU.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 169-177. p. Discussion Papers, Special

176
ALEKSANDRA RAVNACHKA
Blagoevgrad has well-developed network of cultural institutions (a drama thea-
ter, a puppet theater, Ensemble “Pirin”, a historical museum, etc.) which stimulates
the  tourism.  The  inadequate  financial  resources  in  the  last  10  years  adversely  af-
fected the development of culture in the municipality.
In  Blagoevgrad  municipality  there  are  splendid  opportunities  for  the  develop-
ment of different types of tourism (cultural-cognitive, mountain-recreational, con-
gress  tourism,  eco-tourism,  etc.),  which  can  rely  on  the  favourable  natural  condi-
tions and on the rich cultural heritage. A mountain resort of national importance is
‘Bodrost’. The congress tourism makes a success in the town. At present, the pos-
sibilities  for  the  development  of  cognitive  tourism  are  not  explored  to  the  fullest
extent yet.
The technical infrastructure in Blagoevgrad municipality is in a relatively good
shape. A lot of reconstructions took place in the last 5 years, owing to which it was
upgraded. The problem of  water supply in the municipality has been successfully
solved. The water supply network is well developed but it needs from a renewing.
The municipality is cut through by the main gas pipe to Greece which follows
the natural infrastructure corridor along the Strouma River. A project about Blago-
evgrad  gasification  is  being  implemented  now  which  is  a  great  advantage  for  the
municipality as the utilization of natural gas has undoubted economic and ecologi-
cal  effectiveness.  (District  Strategy  for  Regional  Development  of  a  district  with
Blagoevgrad as its Administrative Center during 2005–2015).
The reforms that are going on all over the country adversely affect the agrarian
sector. In all settlements of Blagoevgrad municipality (except for the town of Bla-
goevgrad) the areas under crops, the number of farm animals and the farm produce
are  decreasing.  This  sector  is  the  main  source  of  incomes  in  the  villages  and  its
decline  encourages  the  development  of  natural  economy  and  the  out-migration of
working  age  population  because  there  is  no  alternative  for  employment  and earn-
ings.  The  agrarian  sector  is  financed  both  by  the  municipal  and  state  budget
through the State Fund “Agriculture” and the “Tobacco” Fund. But the allocation
of  funds  by  the  state  is  a  difficult  process  as  the  relationships  between  producers
and creditors are not clearly defined. Thus, these funds are not used to promote the
development of agriculture (District Strategy for Regional Development of a Dis-
trict with Blagoevgrad as its Administrative Center during 2005–2015).
The favorable  geographical  location  of  Blagoevgrad  municipality  is  an impor-
tant  prerequisite  for  its  progress.  After  Bulgaria'  integration  with  the  EU  a  lot  of
positive changes are expected in the socio-economic structure of the municipality.

Aleksandra Ravnachka :
Social and Economic Changes in Blagoevgrad in Connection with the Integration of Bulgaria's to EU.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 169-177. p. Discussion Papers, Special
SOCIAL AND ECONOMIC CHANGES IN BLAGOEVGRAD IN CONNECTION …
17
7
References
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Kolev B. 2002: The South Western Region. In: Geography of Bulgaria. Publ. House ForKom, Sofia,
pp. 722–733.
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District  Strategy  for  Regional  Development  of  a  District  with  Blagoevgrad  as  its  Administrative
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