• Total prison population: 10,500 prisoners
• Crime trend: Up 5% in 2000–2002

Crime rates

In the 1990s Bulgaria became a key narcotics trafficking route to western Europe. Former security agents, party officials, and prestigious ex-athletes moved into protection rackets, counterfeiting, and similar activities. Violations of minority rights are a sensitive political issue.

• Annual defense budget: $378m

BULGARIAN ARMED FORCES

• Army: 1474 main battle tanks (1042 T-55, 432 T-72) (25,000 personnel)
• Navy: 1 submarine, 1 frigate, and 23 patrol boats (4370 personnel)
• Air force: 177 combat aircraft (Su-22, Su-25, MiG-21 bis, MiG-23, MiG-29) (13,100 personnel)
• Nuclear capability: None

Defense spending has fallen from 14% of GDP in 1985 to 2.5% in 2002. Preparing to join NATO, a long-held ambition realized in March 2004 after seven years of negotiations, involved a major reorientation in defense thinking.

In 1999 the crisis in Kosovo prompted Bulgaria to make its airspace available to NATO.

In late 1999 the government adopted "Plan 2004," which embodied a radical acceleration of its previous plans to restructure the armed forces. The new plan aimed to downsize from 75,000 to 45,000 personnel, including central staff. and focused on rapid reaction capabilities. It was considered that this smaller but combat-ready force would be less costly to maintain in the long run than a larger force.

• Gross National Product (GNP): $14.1bn

Score card

• World GNP ranking: 78th
• GNP per capita: $1770
• Balance of payments: –$1.67bn
• Inflation: 2.2%
• Unemployment: 17%

Exports

Imports

Economic performance indicator

Strengths

Coal and natural gas. Good agricultural production, especially grapes for well-developed wine industry, and tobacco. Increased ties with EU. Strong expertise in computer software.

Weaknesses

Outdated infrastructure and equipment, and outstanding debt throughout industry. High unemployment.

Profile

Restructuring the economy is linked to privatization – a process delayed for political and technical reasons until the late 1990s. A financial crisis in 1996 triggered the collapse of the national currency, the lev. Foreign investment is still low, despite laws that since 1992 have allowed foreign firms to own companies outright. Trade has shifted toward the EU, while that with the former Soviet Union has fallen sharply. The UDF government which was returned in 1997 followed IMF advice and made free-market reforms, backed by foreign loans, successfully bringing inflation under control. These policies have been continued under Saxecoburggotski, with the stated aim of joining the EU, which confirmed Bulgaria as a market economy in 2002. Growth has been steady.