Page "Economy of Bulgaria" Paragraph 10

In the late 1980s, continuing poor economic performance brought new economic hardship.

By that time, the misdirection and irrationality of BCP economic policies had become quite clear.

Bulgaria's economy contracted dramatically after 1987 with the dissolution of the Comecon, with which the Bulgarian economy had integrated closely.

Finally, on 10 November 1989, at the November plenum of BCP Todor Zhivkov was dismissed as a long-time party leader and head of state and the communist regime gave way to democratic elections and government.

Unlike the communist parties in most other East European states, the BCP ( changing its name to Bulgarian Socialist Party ) retained majority power after the transition in Bulgaria by winning the first free national elections in June 1990.

That was made possible by changes in party leadership, programme, reduction of its power base and other which permitted economic reorientation toward a market system.

This difficult transition combined with political vagueness, unpreparedness of people for the social and economic changes led to seriously worsen economic conditions during early 1990s.

The standard of living fell with nearly 40 % and more and regain levels in the beginning of 2000's.