1.85 Kurdzhali 2023, Инвестиционен анализ

The assessment of the business climate in the municipality of Kardzhali is one of the lowest compared to the assessment of the other surveyed municipalities – 1.85 points. Compared to the previous year, the municipality has slightly increased its overall value, moving from the last to the penultimate place. Within the general institutional structure, the municipal administration has a more significant positive contribution to the business environment.

The municipal administration provides access to basic information for citizens and businesses (including registers with building permits, municipally owned enterprises), provides the requested administrative services and develops the system of electronic services. Structured information is published on the website of the municipality – a directory of the provided administrative services, a directory of the provided complex administrative services, with the corresponding forms for them. The deficits in the municipality’s work are related to providing practical opportunities for business participation in the discussion of policies for the development of the municipality.

The website of the municipality provides basic information related to business activities. On the main page there are published fields with references to “Public records”, “Auctions”, “Buyer profile”, “Regulatory documents”. There is no separate business section or other information pointing to open opportunities to support start-ups, innovative economic activities and investment promotion.

Within the mandate of the mayor and the mayoral team, including in 2023, deficits related to the neglect of the principles of transparency and accountability and inconsistently applied mechanisms for interaction with local business and civil society were identified. The research registered a selective approach in carrying out the control activity on private business and, at the same time, an unsatisfactory level of control over public service providers under contracts for municipal projects, including public procurement contractors.

The municipal council has adopted an Ordinance for the promotion of investments. Although the rules for regulating local economic activity are publicly available, there is a lack of clearly established transparent mechanisms for consultation with local businesses and local civil organisations regarding municipal development policies. The research registered deficits in the control activity of the local parliament vis-à-vis the local executive power and in ensuring transparency regarding the work of the standing committees. Perceptions have been registered that decisions of the Council of Ministers are the result of non-transparent lobbying.

The way in which the institutions of local government and local self-government function also affects the environment for doing business. Representatives of local companies have perceptions of an unequal approach by the control authorities. The business demonstrates a rather passive approach in asserting positions regarding regulations affecting economic activity in the municipality.

The structures of civil society (media and civil organisations) have a very limited practical contribution in the implementation of civil control over institutions, which determines their inability to influence the mechanisms of interaction between public institutions and business.