Vassil Kirov - Zagreb 24-26 April 2017
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INDUSTRY IN BULGARIA AND
ROMANIA: PRELIMINARY
POLICY RECOMMENDATIONS).
Mid-Term Conference Project IndustriAll-EFFAT
“Strengthening the industrial trade unions’ role in South East Europe
in shaping the industrial policy agenda in the light of the objectives
of Europe 2020”
Zagreb – 24-26.04.2017
Dr Vassil Kirov,
Associate Professor, Bulgarian Academy of Sciences
Associate Researcher ETUI
[email protected]
Vassil Kirov - Zagreb 24-26 April 2017
Objectives
• Shortly remind the outcomes of the
SWOT analyses for the two countries
(focusing on similarities);
• Discuss, complete and validate the first
draft of the policy recommendations.
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Vassil Kirov - Zagreb 24-26 April 2017
Policy recommendations
• The first findings of the SWOT confirm the need of
targeted and consensual industrial policy in both
countries.
• Few concrete proposals and recommendations are
provided below:
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Vassil Kirov - Zagreb 24-26 April 2017
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1. Need to establish ‘authentic’ industrial
policy
• Background: Industrial policy is often designed for the
programming of EU funds or in relation to EU membership
obligations, but those documents are just ‘formal’
strategies on paper, without the back-up of resources and
mechanisms
• Recommendation: governments should put in place
consensual (after real consultations with social partners
and other stakeholders) and effective (backed up with
resources, responsibilities and mechanisms – including
with social partners participation) industrial policy.
Vassil Kirov - Zagreb 24-26 April 2017
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2. Move to high value-added industry and
support wage increase
• Background: in the context of low competitiveness, lower
productivity and outdated technologies, the industry in
both countries is in a vicious circle – wages are low,
industries can not attract qualified workers (who often
move abroad), and so on.
• Recommendation: support industrial policy increasing
competitiveness, productivity and innovation and
connecting economic performance and growth to policies
oriented to incomes increase.
Vassil Kirov - Zagreb 24-26 April 2017
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3. Better connect smart specialization
and real economy challenges
• Background: the existing strategic documents in both
countries focus on new ‘high tech’ sectors, including ICT,
greening, etc. However the bulk of the existing industry is
concentrated in more traditional branches (but some of
them also have potential to upgrade). This move should
be carefully analysed from the perspective of skills and
jobs.
• Recommendation: need to better connect new segments
of the industry with more traditional sectors, to anticipate
impacts on jobs and skills.
Vassil Kirov - Zagreb 24-26 April 2017
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4. Skills development
• Background: despite the increasing share of highly
educated population and the fact that general skills levels
are high, there are indications for the existence of specific
skills gaps in both countries.
• Recommendations: support policies aiming to address the
skills gaps – including the development of the dual
apprenticeship, life-long learning and CVT in companies,
sectoral funds. Better targeting of EU funds and national
funds for training and re-training. Involvement of sectoral
social partners in the design/monitoring of sectoral
instruments.
Vassil Kirov - Zagreb 24-26 April 2017
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5. Tackling informal economy
• Background: both countries have large shares of informal
economy and widespread practice of envelope wages.
The informal economy represents a threat to loyal
competition and undermines the social security funds.
• Recommendations: continuity in the actions towards the
limitation of the informal economy. From a labour
perspective the labour inspections, social security funds
and so on could have a role here.
Vassil Kirov - Zagreb 24-26 April 2017
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6. Better use of EU funds for the
development of technologies and skills in
the industrial area
• Background: Bulgaria and Romania are members of the
EU since 2007 and have access to the EU structural
funds, including for technologies, competitiveness, human
resource development, modernization of infrastructure.
However in both countries the use of EU funds was not
optimal (lack of targeting, low absorption, increase of the
regional disparities)
• Recommendation: Better programming, targeting, use
and absorption of EU funds for technological
modernization, human capital and infrastructure and
linkage with the industrial policy objectives.
Vassil Kirov - Zagreb 24-26 April 2017
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7. Development of supportive and inclusive
administration and regulative framework
• Background: both SWOTs identify the problematic
regulative framework (including the risk of corruption) in
different spheres related to the development of the
industry (including public procurement, enforcement of the
labour legislation, etc.), weak judiciary system.
• Recommendations: actions towards the optimization of
the legal and administrative system, the move towards
more transparent regulative framework (including the
development of e-government) and enforcement of labour
and collective bargaining rights.