World competitiveness book

"The World Competitiveness Scoreboard presents the 2009 overall rankings for the 57 economies covered by the WCY. The economies are ranked from the most to the least competitive,"...

For Bulgaria, this year, the result is astonishly positive. Indeed the country is positioned 38 from 57, before countries like Poland, Hungary, Russia, Romania, Greece and so on. The important question is what the major reason for this success is. The answer is probably that the country is not as much linked to the international economy as other countries are. Moreover, the financial bubble probably exploded internationaly before it could reach its maximum proportion in Bulgaria, thus protecting the country from more severe consequences.

Not to be linked to the international economies may generate some advantages in this recession. It will definitely not help the country rebound at the end of the recession. Bulgaria is in need of a strong international positioning in specific services or production segments and of a basis of large, successful companies that will provide the necessary jobs and careers for the future. This clear positioning is missing and the basis to establish strong international companies is missing too. Very few companies have the necessary management, organisation and processes in place to ensure their success. Very few companies are able to take advantage of their low cost base and closeness to their customers. Very few companies actually look for customers.

It could be that, at the end of this recession, Bulgaria will still get the same score, but that this score will not be sufficient to position it at the 38 rank. The country and its companies are in need of restructuring.