2.37 Pazardzhik 2023, Инвестиционен анализ

Local businesses have relatively limited opportunities to develop their activities. It works in an environment of uncertainty and companies depend on the decisions of local authorities. Estimates have been established regarding the influence of lobbying interests in determining the rules for economic activity; there is data on isolated cases of abuse of power (massive unjustified inspections, preferential leasing of areas, non-transparent tenders for rent/sale/public procurement). Although there are regulations that have been adopted to facilitate economic activity and to create industrial zones, there is no information about their practical application and effect, creating a level playing field for business.

From the institutions at the local level, the main contribution is the municipal administration, which has a built-in capacity for providing administrative services, including electronic ones. The administration provides publicity through the site on the necessary information about administrative services, registers and information about taxes and fees. The main deficits are related to the effective implementation of mechanisms for consultation, dialogue and feedback with citizens and businesses, as well as ensuring publicity regarding the implementation of contracts on municipal projects.

The website of the municipality provides relatively little information about business. Standard sections “Buyer Profile”, “Auctions” and “Administrative Services” have been created. The “Business and Finance” section points to “Taxes and Fees”, “Municipal Budget” and “Bank Accounts”, lacking information on opportunities to support start-up businesses, including in the field of innovation. Information regarding investment opportunities, including a normative act for the promotion of investments, is also not available.

The research registered deficits in the work of the mayor and his team. They are related to an insufficient degree of accountability regarding the implementation of the management program and public procurement contracts. Decisions regarding the management of municipal property pose a number of questions that concern both the observance of ethical standards in the work of the persons involved in the subordinate administration, and the property rights over agricultural crops. According to assessments of the business, an equal approach is not applied in the implementation of the control activity in relation to private business, and there are cases of massive checks.

The municipal council has developed separate documents that reflect its vision of governance in the various sectors, including regulations on economic activity rules. At the same time, there is evidence of lobbying influence and controversial decisions regarding the disposition of municipal property and regarding the realisation of investor interests in the field of energy. The municipal council more formally fulfils the function of control over the local executive power. The approach to consultations and public discussions with citizens and businesses is also highly formalised.

The structures of civil society (media and civil organisations) have a relatively limited contribution to the implementation of public control over institutions, respectively to the creation of an environment favourable to investments and fair competition between economic entities.