_Table 18. Bulgaria, Production of Meat, Selected Years, 1948-71_ (in thousands of tons)
--------------------+------+------+------+------+------+------ Meat194819601968196919701971 --------------------+------+------+------+------+------+------ Beef and veal4137105949085 Pork74134194167148169 Sheep and goat meat454588878288 Poultry1736707893111 Other142234------------------ TOTAL[*+]178257460428416457 Edible offals295073656064================== GRAND TOTAL[+]208307534493476521 --------------------+------+------+------+------+------+------ * Less offals.
+ Columns may not add because of rounding.
Source: Adapted from _Statistical Yearbook, 1971_, Sofia, 1971, p. 127; and _Statistical Yearbook, 1972_, Sofia, 1972, p. 232.
_Table 19. Bulgaria, Production of Milk, Eggs, and Wool, Selected Years, 1960-71_
-----+---------------+----------------+---------------+--------------- YearMilkCow"s MilkRaw WoolEggs(thousand tons)(thousand tons)(thousand tons)(million dozen) -----+---------------+----------------+---------------+--------------- 19601,12074421102 19671,6091,21027140 19691,5801,20528127 19701,6311,25029135 19711,6201,29030146 -----+---------------+----------------+---------------+--------------- Source: Adapted from _Statistical Yearbook, 1971_, Sofia, 1971, p. 128; and _Statistical Yearbook, 1972_, Sofia, 1972, p. 233.
CHAPTER 14
INDUSTRY
In mid-1973 industry continued to expand, though at a significantly lower rate than in the mid-1960s. Industrial expansion was being increasingly restrained by the inadequacy of domestic raw material and skilled labor resources. Limits on an increase in imports of materials and essential machinery were placed by the insufficiency of foreign exchange reserve and by the need to reduce traditional exports of consumer goods in short supply on the domestic market. The Soviet Union continued to be the predominant supplier of raw materials, machinery, and technical and technological a.s.sistance.
To overcome the limitations on industrial expansion, the leadership of the Bulgarian Communist Party (BKP--see Glossary) and government sought to raise industrial productivity through concentration and specialization of production and through improvements in the management of material and labor resources. Strong emphasis was placed on the introduction of automation in both production and management processes.
Heavy stress was also laid on the need to raise the quality of industrial products in order to increase their salability abroad and their acceptance in the domestic market.
The consolidation of industrial enterprises into a limited number of trusts, introduced in 1971 as a measure for increased centralized control in the search for greater efficiency, was being carried forward by means of further regulatory and clarifying edicts. The leadership"s ultimate goal of an efficiently managed, technologically advanced, low-cost industry remained the driving force behind all industrial policy decisions.
ORGANIZATION AND STRUCTURE
Virtually all industry is state owned. In 1970 state enterprises possessed 98.6 percent of all industrial a.s.sets; they employed 88.8 percent of the industrial work force and produced 89.7 percent of the industrial output. Collective industrial enterprises owned the balance of 1.4 percent of the a.s.sets, employed 11.2 percent of the workers, and contributed 9.9 percent of the industrial output. Small private enterprises, mostly artisan shops, accounted for only 0.4 percent of the industrial output.
Organization
Size and Location
In 1970 the industrial establishment (excluding the private sector, information on which is not available) consisted of 1,827 state enterprises and 644 collective enterprises, employing about 1.02 million and 129,000 people, respectively. More than one-half of the enterprises in the state industry employed over 200 people, and almost one-fourth employed more than 1,000 people. Enterprises with large numbers of workers predominated in metallurgy; in the gla.s.s and china industry; in clothing manufacture; and in the leather, shoe, and fur industry.
Beginning in 1971 previously independent enterprises were transformed into branches of countrywide trusts organized along functional lines (see ch. 12).
The territorial distribution of industry during the 1950-70 period was determined in large part by the priority development of heavy industry, the location of which was dictated mainly by the sites of raw material sources and the location of major consuming centers. In this process several cities and districts, including Sofia, Plovdiv, Varna, Burgas, and Ruse, experienced a large population influx from rural areas and attendant shortages of housing and public services. At the same time many villages were deprived of their inhabitants, and homes and public facilities were abandoned.
In 1970 the Central Committee of the BKP laid down guidelines for a program of regional economic development, with a view to attaining an optimal distribution of productive resources (capital and labor). The aim of the program was to arrest excessive urban growth and the a.s.sociated demands on the country"s resources for new housing and other amenities and, at the same time, to help develop backward rural areas.
Within these guidelines, decentralization of industry has been undertaken, and plans are being worked out for the socioeconomic development of individual districts under the Seventh Five-Year Plan (1976-80) and until 1990.
In this context the construction of new industrial plants in heavily populated areas has been restricted. Further production increases in these areas are to be attained through modernization of existing facilities and the introduction of more advanced technology. Special measures have also been adopted to promote economic growth in the relatively underdeveloped districts. In part, this program is implemented through the transfer of industrial activities, equipment, and labor from the congested cities and districts to rural areas.
Transfers of this kind decreed by the Council of Ministers Bureau in December 1971 and July 1972 involved 195 production units and 25,000 workers and an annual output of 225 million leva (for value of the lev--see Glossary). Under existing plans lasting until 1975, however, industry and employment will continue to expand in some of the most heavily congested cities.
Supply System
The organization of a smoothly functioning materials and equipment supply system for industry has been an elusive goal of the leadership ever since the inception of the controlled economy. Various approaches to the problem over a period of years have not succeeded in accomplishing the basic task of ensuring a dependable supply of material resources to industrial producers. As a result, the economy has been officially reported to suffer enormous losses through production shutdowns, subst.i.tutions of materials that lower quality and increase costs, and h.o.a.rding of scarce materials. Heavy losses have also been incurred through improper storage of materials, careless use that entails excessive waste, and pilferage.
Adequate information on the organization and functioning of the industrial supply system has not been available. The latest reorganization of the supply system was undertaken at the end of 1971 with a view to providing a normal flow of supplies for the economic trusts beginning in 1972. Until 1971 the supply organizations had dealt almost entirely with individual enterprises. The reorganization was accompanied by extensive consultations with producers of raw materials, importing organizations, and industrial consumers. The consultations were held in order to clarify the needs of consumers, ensure the availability of the needed supplies, and agree upon specific measures for timely deliveries of materials and supplies.
Particular attention in the reorganization was paid to the problem of reducing the inventories of materials in enterprises and concentrating them in the supply organizations. Decisive measures were taken to halt the former practice of making deliveries of materials large enough to cover requirements for three months or longer. Under the new system, supply organizations are required to make periodic deliveries to consumers on guaranteed time schedules, at short intervals, and in quant.i.ties that do not exceed one month"s requirements. Adherence to the regulation is to be used as a standard in evaluating the performance of supply organizations.
One of the basic elements in industrial consumer-supplier relations has been the annual contract for estimated material and equipment requirements needed to complete the annual production quota. For a variety of reasons both suppliers and users have often failed to honor these contracts, and the penalties provided for breach of contract have not been sufficient to deter this practice. Breaches of supply contracts have been an important cause of economic difficulties. Supply difficulties have been particularly disruptive because of the traditionally stringent nature of the production plans and the limited availability of resources.
In 1972 the Ministry of Supply and State Reserves planned to take energetic measures to strengthen contract discipline and to use contracts as legal and economic instruments for exerting pressure on both parties to fulfill their obligations. The minister considered it particularly important to put an end to the practice of contract cancellation, either under provisions of official regulations or by mutual agreement of the parties concerned--a practice that, according to the minister, caused huge losses to the national economy.
Structure
Manufacturing is the dominant sector of industry in terms of employment and output. In 1971 manufacturing accounted for 93.9 percent of the total industrial output and provided employment to 88.3 percent of the industrial labor force. Mining and energy production contributed 3.6 and 2.5 percent, respectively, of the industrial output and employed 10.3 and 1.4 percent, respectively, of the labor force. More than half the industrial establishment was devoted to the production of capital goods.
In 1971 the capital goods sector employed 52.5 percent of the industrial labor force and produced 56 percent of the output. The relative importance of the capital goods sector had been rising over a period of years, from 36.7 percent of the output in 1948 and 47.2 percent in 1960.
During the same period the contribution of the consumer goods sector to total output had declined from 63.3 percent in 1948 to 52.8 percent in 1960 and 44 percent in 1971. As a consequence of the priority development of heavy industry, the supply of consumer goods on the domestic market has been inadequate to meet consumer needs (see ch. 5).
In terms of their employment shares, the largest state industry branches in 1971 were: machine building and metalworking, 25.5 percent; food processing, 14.4 percent; and textiles, 11.3 percent. Next in importance, but with much lower levels of employment, were: timber and woodworking, 7.4 percent; chemicals and rubber, 6.1 percent; and fuels, 5.5 percent. Industrial branches that experienced the most rapid growth in the 1960-71 period included ferrous metallurgy, chemicals and rubber, machine building and metalworking, and fuels. Among the slowest growing branches were timber and wood processing, textiles, nonferrous metallurgy, and food processing.
FUELS AND POWER
Domestic resources of mineral fuels are inadequate for the needs of industry. Through the limitation that it places on electric power development, the fuel shortage--in the absence of a large hydroelectric power potential--may become a major factor inhibiting industrial growth.
In 1968 the proportion of petroleum and natural gas in the fuel balance was somewhat more than 42 percent; it is planned to rise to about 60 percent in 1975 and to at least 65 percent in 1980. Virtually all petroleum and natural gas must be imported.
Coal and Lignite
Reserves of anthracite and bituminous coal are insignificant; their production amounts to less than 2 percent of the annual coal output.
Brown coal deposits that can be mined economically are nearing exhaustion, and brown coal production declined by about one-third in the 1960-70 period. Low-calorie lignite remains the major fuel base for thermoelectric power stations. Reserves of this inferior fuel are large.
Coal deposits are scattered in about twenty small deposits. Because of difficult geological conditions, however, only a few of the deposits are exploited. Anthracite is mined in the Svoge basin, located in the Iskur gorge area of the Stara Planina, north of Sofia. Bituminous coal is mined in the same mountain range, in the area between Gabrovo and Sliven. The deposit at Sliven was reported to contain a very small quant.i.ty of c.o.king-grade coal--a quant.i.ty far below the needs of the iron and steel industry. In addition to large annual imports of c.o.king coal, Bulgaria has also imported from 250,000 to 465,000 tons of c.o.ke per year.
The main source of brown coal for many years has been the Pernik basin in the upper Struma valley, about nineteen miles southwest of Sofia. In the 1971-75 period brown coal mining is to be substantially expanded at the Bobov Dol deposit in the Rila mountain range, south of the Pernik basin. The Babino mine in the Bobov Dol coalfield is scheduled to become the largest underground coal mine in the Balkans. Reserves in this deposit, however, are equivalent to only about five to six years"
production at the 1970 rate of brown coal output.
Lignite is mined mainly in the Maritsa basin, near Dimitrovgrad in the Thracian Plain, and in the Sofia Basin. The Maritsa basin, particularly the area known as Maritsa-Iztok (Maritsa-East), has become the basic source of coal production, contributing about 50 percent of the country"s output. Aside from planned new mine construction, the Maritsa-Iztok complex is to be rebuilt and modernized. Production problems at this mine have not yet been solved satisfactorily.
Coal-bearing strata have not been fully identified; equipment is utilized to only about 40 percent of capacity; and the organization of labor is poor. Substantial improvement also remains to be attained in processing the coal for market, in view of its high ash and moisture content. Unsolved problems also remain in the manufacture of coal briquettes.
In the 1971-75 period substantial investment is to be devoted to the expansion and modernization of coal mines. New mines with an annual capacity of about 4 million tons are to be built. Three-fourths of the investment funds are to be concentrated on three major production centers. The relative investment shares of these centers were planned to be: Maritsa-Iztok complex, 41 percent; Bobov Dol complex, 25 percent; and the Georgi Dimitrov mine at Pernik, 10 percent.
Production of marketable coal increased by 83 percent in the 1960-70 period to a level of about 29 million tons. The rise in output, however, was confined to lignite production, which grew more than fourfold during the decade. Production of bituminous and brown coal declined by 42 and 32 percent, respectively. Output of anthracite in 1970 equaled the output in 1960 but was 9 percent below the production level in 1966.
Production of both anthracite and bituminous coal amounted to less than 400,000 tons in 1970. Strip mining has steadily grown in importance and accounted for 73 percent of the output in 1970.
The Sixth Five-Year Plan (1971-75) calls for a rise in coal output to 33 million tons--an increase of about 13 percent. In the view of the minister of heavy industry, the planned increase is not large, but its attainment is difficult considering the character and condition of the mines. Experience has justified the minister"s a.s.sessment. In the first two years of the five-year period, coal output rose by less than 1 percent.
Crude Oil and Natural Gas
Deposits of crude oil are located at Tyulenovo in the Dobrudzha region and at Dolni Dubnik, east of Pleven. Natural gas fields have been discovered near Vratsa and in the area of Lovech, south of Pleven.
Reliable information on the magnitude of crude oil and natural gas reserves is not available. Statistics on current imports and official projections of import requirements, however, indicate that domestic production of oil and natural gas will continue to cover only a small fraction of needs.