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Economic Characteristics

     The economic development of Dve Mogili Municipality is under the strongly influence of the negative processes that have occurred in the whole country after 1990:

  • long and difficult transition to market economy;
  • a significant recession in production;
  • a sharp reduction of investment processes;
  • lack of fresh capitals;
  • significant decline in consumption;
  • bad financial condition of many of the economic structures.

     Main problems in the economic development of Dve Mogili Municipality are:

  • Shrinking the production program of the industrial enterprises
  • Low purchase prices of agricultural products
  • Reducing the unemployment rate, which is due to the leaving abroad of the people in working age
  • Unclear policy regarding the plantations

     Agriculture is very important branch in the structure of the municipal economy, followed by the industry. The production of agricultural goods in 1999 was 68% of gross production, with engaged 52% of the employees. In 2003, even when the agricultural production fell down to 45% of total production, this change is relative and is due to changes in other sectors that produce larger volumes of production.

Industry

     Description of the situation:

     In the period of 1997-2000 a big part of the national, respectively the regional economy was changed. The market relations changed significantly the branch structure.

     The economic growth is associated with the produced Gross Domestic Product (GDP). The produced GDP per capita in Dve Mogili Municipality in 2001 was 1 740,47 levs. In comparison for Ruse it was 3 354,12 levs and for Bulgaria it was 3 754 levs. From that data from 2001 it can be concluded that the GDP per capita that was made in the municipality is about 2 times less than the one at the national level. Unfortunately, the measurements of GDP per capita at level municipalities are still rarely made by NSI (National Statistical Institute) and it is not possible to determine the trend level of GDP per capita in Dve Mogili Municipality. There is no data for the growth of the GDP per capita for the period 2004-2008.

     The tendency of increasing both indicators – the gross production by 2,06 times and the fixed assets by 3,6 times, is positive. This is a proof for the development of the local economy and the renovation of the facilities.

     From 143 companies, cooperations and farmers in 2008, 124 have a staff of less than 10 people, 14 have a staff between 11 and 50 people and only 4 have a staff between 51 and 100. This points out that in Dve Mogili Municipality the small companies are more, which is not a good basis for stable and steady economy . Their problems are related to the capacity for processing and analysis of the information, the degree of preparedness of management, the ability of providing the necessary financial resources. Bulgaria's membership in the European Union will test the small and medium companies. They don’t have the capacity and the potential of the big companies for adequate preliminary reaction. Because of that they need to be supported by specially directed municipal and national policy.

     Of the structuring industrial branches in the municipality, the largest percentage is of the food and beverage industry – 27.4% of the total gross production (the municipality is the leader in Ruse District in this field), the services sector – 18%, and the textile subbranch – 5.6%.

     The private sector is prevalent in the economy of the municipality. The total number of the companies in 2009 was 143 and in 2003 they were 184. 80% of them are private. One company is municipal and 8 are public companies.

     Foreign investors in the municipality are not many. They are:

  • InNova Ltd – Italy
  • Organika Bulgaria Ltd. - Poland

     As an integral part of the country's economy, the municipal industry is seriously affected by the negative processes that are developing last few years, especially the fact that most of the companies orientated its production to the former socialist countries. As a result, the production in many structuring companies fell off abruptly - machinery construction, textile and others. After the changes in 1989 all workshops of big companies as KTM-Ruse, Petar Karaminchev, Naiden Kirov, Georgi Dimitrov, Arda, Dunarit and others were closed. After the privatization some of the buildings passed into the hands of new owners. Another part is not used and maintained.

     After completing the workers-management privatization of municipal enterprises, there were created the companies Jockey Ltd. and BKS – 97 Ltd. The company Jockey Ltd. preserved the production of the enterprise - clothing production. Its staff consists of about 150 persons at the moment. It is equipped with modern machinery for clothes production entirely for the foreign market.

     The privatization of BKS – 97 Ltd. was stopped and it was formed into the municipal company Cherni Lom.

     Ruse shipyard, which was the owner of the former factory Avtomatika has one production site and provides about 40 jobs.

 
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Project “Modern and Effective Administration in the municipality of Dve Mogili”. Contract А 09-31-38С/12.06.2009
Тhis project is being implemented with the financial support of Administrative Capacity Operational Programme, co-funded by the European Union through the European Social Fund.
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