The financier and member of the Council of the Institute for Market Economics Levon Hampartzumyan commented in the studio of “Your Day“ the latest analysis of the institute, according to which the data clearly indicate that Bulgaria is getting rich.
“It is true, and it is visible in the life around us“, he said. However, he clarified: “If there is any place that was a mono-industrial settlement, with one factory that is closed, or with fragmented agricultural holdings – there is something else. But overall, Sofia's economy is roughly half of Bulgaria's“.
From 1997 to the Eurozone
Hampartsumian recalled the severe crisis of 1997: “Then Bulgaria suffered a financial collapse - people lost pensions, pension funds were wiped out, GDP fell by 40%. The state had no money to pay its interest“.
Today the situation is radically different: “Thank God we are on the way to entering the Eurozone. It should have happened much earlier, but for a number of reasons it was delayed“.
Savings and inequalities
One of the signs of wealth is the growth of deposits: “The fact that we hold over 100 billion leva in banks is also a result of people getting richer. But – I want to say right away – not for everyone and not equally. The more active, the more educated, even those who are well connected in corruption networks, they get richer“.
He also pointed out the flip side: “In Bulgaria there are about 600 thousand people of working age who neither study nor work. These are 10% of the population who cannot contribute to prosperity, but rather are in the opposite direction“.
Hampartsumyan was critical of demonstrative consumption:
“In Bulgaria, some of the most expensive cars in the world are bought brand new every year, and at the same time we have regions like the Northwest, where things look not at all good. Arrogant consumption is a sign of bad upbringing, bad taste and, to put it bluntly - peasantry“.
He also gave an example: “Some extremely expensive limousines are sitting in front of panel blocks. The car does not raise the standard of living, but it raises the self-esteem of the oppressed people who buy them“.
Challenges: labor and technology
“The lack of labor remains a big problem, but it is not about any labor. Low-skilled labor is almost not sought after – it is replaced by machines, robots and artificial intelligence. The so-called office plankton is starting to become unnecessary“, the financier believes.
According to him, society is facing a big challenge: “We must educate the next generation with coercive measures. Today, a tractor costs 700-800 thousand euros and its dashboard is a little simpler than that of an Airbus. It is no longer possible to prepare a cadre with a three-month course“.