FROM THE EDITOR: Growing a new Bulgaria

Source from:  sofiaecho.com 09:00 Mon 18 Sep 2006 09/19/2006

The messages this week about the state of agriculture in Bulgaria were relatively positive. In its May 2006 report about the readiness of this country to join the European Union, the European Commission listed agriculture as a matter of concern, a "red area" in the terminology of the EC. Agriculture Minister Nihat Kabil, during the visit to Sofia by European agriculture commissioner Mariann Fischer Boel, was upbeat about the reforms carried out to meet the requirements of the EC. Yet there is a wider issue about the future of agriculture in Bulgaria. Unfortunately, the history of the past century has been one of impairment and stunting, rather than growth, of this industry, which offers such vast potential. Sound agriculture in Bulgaria would not only ensure affordable produce on domestic markets, but also provide a sustainable base for lucrative exports. However, political developments in the 20th century caused substantial damage to agriculture, firstly through the bizarre manipulations under communism, and secondly through the ham-fisted policies imposed in the aftermath of communism. As to the latter, one such mistake was the decision to hand out small and unsustainable parcels of land through the restitution process, rather than maintain some sort of collectivised system, which could have better supplied the market, operating on the principles of free enterprise while maintaining economies of scale appropriate to supplying export markets. New challenges face Bulgaria as the country approaches membership of the European Union. Just one of these challenges is related to the unique place occupied in Bulgaria's agricultural industry by tobacco. In terms of EU rules, Bulgaria will have no more than three years after accession during which it will be allowed to continue giving subsidies to tobacco farming. After that, the industry will be on its own, without state support. In the case of tobacco, the argument may be raised that demand for the crop will continue, as the international tobacco industry continues the process of reorientation towards new markets. On a commercial level, maintaining a tobacco industry may enable Bulgaria to be part of this development. But on the other, tobacco is not a popular crop at a health and a political level, especially in Western countries, and these markets may shrink as further legislative and excise constraints are brought into force to discourage the consumption of tobacco products. Further, the methods used in tobacco farming in Bulgaria are labour-intensive, especially because of the political dimension of the tobacco industry in this country, where those employed in the industry largely make up the electorate of a particular partner within a succession of coalition governments. At the same time, it is worth noting that the Government has now moved to assist Bulgaria's medicinal plants industry. This may appear to be a niche enterprise, but is in fact relatively lucrative, and Bulgaria currently enjoys a good position in this market on this continent. With tobacco vulnerable to further political action against smoking, it would appear wise to reorientate the use of agricultural land to crops that are more morally defensible, and potentially good for the economy, including in terms of sustaining, if not creating, jobs. Overall, inasmuch as Bulgaria needs to market itself and industries such as tourism internationally, it would do well to go on a marketing offensive to encourage consumers outside the borders of this country to opt for Bulgarian produce. It is time for Bulgaria to regard agriculture as an issue that is more than something that need just be ticked off an EC checklist, but a strategic component of the economy to which careful strategic thought, development, and promotional efforts should be dedicated. Enditem