ISSN 2367-8127 (CD-ROM) ISSN 2367-8151 (on-line)
Journal of Innovations and Sustainability Volume 2, Number 3, 2016
Innovations and Sustainability Academy 2016
Journal of Innovations and Sustainability Volume 2, Number 3, 2016 https://sites.google.com/site/journalinsust/
Editor-in-Chief: Prof. Vesela Radović, Ph.D. Managing Editor: Ekaterina Arabska, Ph.D. Editorial Board: Prof. Dipl. Eng. Venelin Terziev, D.Sc. (Ec.), D.Sc. (National security), Ph.D.; Prof. Evgeniy Stoyanov, Ph.D.; Assoc. Prof. Radostina Bakardjieva, Ph.D.
Š Innovations and Sustainability Academy 1, Lotos Str., Plovdiv 4006, Bulgaria
E-mail: insustacademy@gmail.com https://sites.google.com/site/insustacademy/
2016 ISSN 2367-8127 (CD-ROM) ISSN 2367-8151 (on-line)
ISSN 2367-8127 (CD-ROM) ISSN 2367-8151 (on-line)
Journal of Innovations and Sustainability
Volume 2 Number 3 2016
Contents Foreword ........................................................................................................ 5
Opportunities for Development of Bioenergy Production as a Prerequisite for the Viability of the Rural Development in Bulgaria Milena Tepavicharova University of Security and Economics – Plovdiv, Bulgaria ................................. 9
Challenges to Labor Market Development in Bulgaria Venelin Terziev Angel Kanchev University of Ruse - Bulgaria Vasil Levski National Military University – Veliko Tarnovo, Bulgaria Stefan Stanchev Trakia University - Stara Zagora, Bulgaria ...................................................... 19
Mitigation Efforts in Rural Communities after Extreme Weather Events - New Insights for Stakeholders Vesela Radović Institute for Multidisciplinary Research, Belgrade University, Serbia .............. 37
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Volume 2 Number 3 2016
Journal of Innovations and Sustainability
Foreword This issue of the Journal of Innovations and Sustainability presents three papers which were successfully presented and discussed at the First International Scientific Conference “Sustainability Challenges In Modern Organizations: Knowledge & Innovation in Management & Operation” organized by Innovations and Sustainability Academy on December 12, 2015 in Plovdiv, Bulgaria. These papers were among those included in the conference program into the panel “Society and sustainable development” focusing on the peculiar questions of innovation and sustainability regarding opportunities for development of bioenergy production and rural development, challenges to labor market development and mitigation efforts in rural communities after extreme weather events providing new insights for stakeholders. The opportunities for improving the viability of rural areas scrutinized through the concrete example of diversification in bioenergy production consider a number of social
and
economic
benefits
for
society,
environment
and
farmers.
The
establishment of new enterprises with a significant economic potential would boost rural incomes and create jobs – prerequisites for improving the life standard. The questions on labor market development are considered as part of the general social and economic policy having a special importance in periods of transitions and structural changes in the dynamic contemporary environment and laying down the bases for future development. Last, but not least, the global challenges regarding climate change and extreme weather events are presented and recommendations are provided to improve the response and its effectiveness in rural communities. The topics presented provide new insights into the opportunities and prerequisites to sustainable development of contemporary world through some specific examples, especially considering rural development and viability – thus they are in full correspondence to journal scope and policy. Ekaterina Arabska Innovations and Sustainability Academy
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Journal of Innovations and Sustainability
SOCIAL SCIENCES
Volume 2, Number 3, 2016
ISSN 2367-8127 (CD-ROM) ISSN 2367-8151 (on-line)
Journal of Innovations and Sustainability
Volume 2 Number 3 2016
Opportunities for Development of Bioenergy Production as a Prerequisite for the Viability of the Rural Development in Bulgaria Milena Tepavicharova1
University of Security and Economics – Plovdiv, Bulgaria Abstract The process of restructuring of the agricultural sector in Bulgaria, which is characterized by a large number of unproductive small farms, can be stimulated to diversify the activities by encouraging the development of bioenergy. The investment in production facilities for the production of bioenergy is an important tool for improving competitiveness and potential for enhancing the economic performance in manufacturing and businesses in rural areas. This helps increase the viability of the rural economy in Bulgaria, which is currently heavily dependent on agriculture. The purpose of this article is to present and analyze opportunities for bioenergy production as a precondition for improving the viability of rural areas in Bulgaria. Key words: bioenergy, rural areas, organic waste, Bulgaria.
INTRODUCTION At present, in rural Bulgaria micro enterprises with limited financial resources to growth and modernization prevail. The small business has a low rate of investment, which in turn limits its contribution to job creation in rural areas. The process of restructuring of the agricultural sector in Bulgaria, which is characterized by a large number of unproductive small farms can be stimulated to diversify the activities by encouraging the development of bioenergy. A relatively small
1
Corresponding author: Assoc. Prof. Milena Tepavicharova, Ph.D.
University of Security and Economics; 13, Kuklensko shoes, Str.; 4004 Plovdiv, Bulgaria E-mail: m_ivanova_zlatanova@abv.bg
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share of farmers develop profitable activities outside agriculture. This is mainly due to the lack of initial capital, management knowledge and skills to develop other than the agricultural business. Helping farmers to develop bioenergy production will facilitate the entry and expansion of activities with potential for market growth. This implies additional income for farmers and shifting labor to new jobs. The investment in production facilities for the production of bioenergy is an important tool for improving competitiveness and potential for enhancing the economic performance in manufacturing and businesses in rural areas. This helps increase the viability of the rural economy in Bulgaria, which is currently heavily dependent on agriculture. The purpose of this article is to present and analyze opportunities for bioenergy production as a precondition for improving the viability of rural areas in Bulgaria.
MATERIAL AND METHOD The research on the opportunities for bioenergy production, as a precondition for improving the viability of rural areas in Bulgaria, is carried out in two parts. The first part analyzes the situation and considers the development of bioenergy in rural Bulgaria. The study is based on data from the National Statistical Institute (NSI), Ministry of Agriculture – the Agrostatistics newsletters for 2010-2013, as well as theoretical analyses of various authors on the subject. Descriptive statistics methods are used at processing and analysing the data. The second part analyzes the opinions of farmers, processors of agricultural raw materials and experts in agriculture, regarding their attitude to bioenergy production and its contribution to enhancing the vitality of the rural areas in Bulgaria. For the purpose of this study we used previously developed questionnaire. The total number of respondents by the method of the interview is 150. A general estimation of the attitudes and willingness of the respondents to develop bioenergy production is presented, based on the responses received.
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RESULTS AND DISCUSSION Research on the opportunities for the development of bioenergy production in rural Bulgaria One of the biggest advantages of bioenergy production is the possibility for the waste biomass to be transformed into a valuable resource, by using it as substrate. Many European countries, including Bulgaria, have a problem with over-production of organic waste from agriculture, industry and households . Bioenergy production is an excellent way to utilize organic waste to produce biogas and fertilizer as a byproduct. The technology for biogas production contributes to reducing the volume of waste and the cost for waste disposal. Many and varied types of materials can be used for bioenergy production: solid and liquid manure, crop residues, energy crops, organic waste from the food industry and agriculture, sewage sludge and municipal organic waste. According to the European Biomass Association (AEBIOM), energy production in Europe based on the use of biomass can be increased from 72 mln. tons in 2004 to 220 mln. tons in 2020. The biggest growth potential lies in biomass originating from farms in the agricultural sector. According to AEBIOM, 20 to 40 mln.hectares of land can be used for energy production within the EU, without affecting production output to feed the population . In this aspect, the production of bio-energy plays an important role and has a very high potential for development. Different types of biomass residues, wastes and by-products from agriculture and households are suitable for conversion into biogas through anaerobic digestion. Bulgaria has a good infrastructure for waste management. However, the system of separate collection and recycling of waste is not yet functioning well enough, which is why the majority of biodegradable waste goes to waste disposal sites. About 85% of generated waste is transported to landfills, and 52% of the total waste is biodegradable. Opportunities for bioenergy production in Bulgaria are large /Table 1/. The holdings in the agricultural sector are sufficient and suitable for the situation of plants for the production of bioenergy. This is a prerequisite for the development not only of a biogas market but also of a secondary market for organic products (compost and liquid organic fertilizer). Non-centralized biogas plants are more suitable because they can be tailored to specific sites and raw material and transportation costs can be minimized.
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Table 1. Potential to produce bioenergy in Bulgaria
Bulgaria
Biogas plants for processing of waste from large farms
Biogas plants for processing waste from small farms or municipalities
Municipal Biogas Installations For The Treatment of domestic industrial waste
Plants for extraction of landfill gas
Biogas plants in industrial businesses
Biogas installations for processing of sludge WWTP
Limited resources
yes
yes
yes
yes
yes
Adapted by: Biogas Handbook, 2009
Despite the substantial opportunities for bioenergy production in Bulgaria, it is difficult to determine the exact amount of raw materials available. In assessing the potential of biomass, first is assessed the amount of material generated by agricultural activities. The methodology used to estimate the potential for bioenergy is selected by Eurostat Europharm. It includes standard sizes of farms, their productivity and the distribution of farms in the country. In Bulgaria, for the period 2010 – 2013, the cropland grew by nearly 10%, as in the last year it occupies 3 462 117 ha or 69,3% of the utilized agricultural area /UAA/ /Table 2/. The increase is mainly due to increase in the area planted with wheat and sunflower. About 65% of arable land is concentrated in three regions - North, North Central and South Central regions. The majority of the total utilized agricultural area (UAA) (about 80%) is processed by farms, managing more than 100 hectares (but they are only 3,8% of farms) /Table 3/. Less than 3,6% of the UAA is processed in 78,6% of the farms which occupy an area less than one hectare each. There is a trend of consolidation of farms. In 2010 Bulgaria has had 77 133 farms, and in 2013 – 76 340. This is due to land consolidation into larger farms and reducing those of semi-market type. Of particular importance for bioenergy production are waste products from livestock keeping. At the end of 2013 the number of livestock farms in the country increases by 12% compared to a 3 year earlier. The most significant increase is in farms with pigs - a total of 91,6%. Less pronounced is the increase of farms with cattle, buffalo and goats - by between 2.2 and 6,6%. Only sheep keeping farms decreased by 2,3%. Measured by the number of farms, pig, poultry and dairy farms have great potential for bioenergy production.
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Table 2. Arable land for the period 2010 – 2013, ha Cultures
2010
2011
2012
2013
Wheat
1 095 703
1 152 999
1 194 141
1 328 062
Barley
250 640
174 010
176 556
182 457
Ryeandtriticale
16 116
17 841
24 303
31 506
Oats
24 627
17 163
16 814
20 835
Corn
360 046
430 914
525 412
518 471
Other cereals
9 259
12 006
16 046
22 938
Sunflower
734 314
795 319
854 738
928 781
Tobacco
31 652
21 710
24 857
19 265
Other oilseeds
209 347
233 934
144 457
123 544
Other industrial crops
74 738
54 458
40 989
29 795
Potatoes
13 824
16 852
17 465
10 634
5 839
8 076
9 395
8 263
Green vegetables
29 420
27 227
24 778
26 846
Nurseries
3 014
-
-
-
Annual forage crops
7 462
3 804
11 035
4 685
88 909
84 804
83 489
83 237
Fallow
207 616
174 110
128 097
121 289
Greenhouses
-
2 010
2 113
1 509
ARABLE LAND:
3 162 526
3 227 237
3 294 685
3 462 117
Peas, beans, broad beans, lentils, chickpeas and other pulses
Meadows planted with legumes and grasses
Source: MAF, department "Agrostatistics
Table 3. Distribution of farms by size of the utilized agricultural area /UAA/ Size of farms, ha
Number of farms, %
UAA, %
0 – 1,99
78,6
3,6
2 – 4,99
7,9
2,3
5 – 9,99
3,6
2,7
10 – 49,99
4,4
6,5
50 – 99,99
1,7
5,3
над 100
3,8
79,6
Total
100
100
Source: MAF, department "Agrostatistics
The number of most livestock species also increases compared to the previous year /Table 4/. The highest growth is observed in the number of pigs in total – 10,4%,
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total cattle - by 9,4% and total buffaloes – 8,2%. Slight increase was registered in the total number of sheep - by 0,6%, with a significant increase in that of ewes - by 6,2%. The total number of goats decreases by 1,5% compared with 2012, but at the same time mother-goats increased by 3,6%. At the end of 2013 the total number of birds decreases by 13,4% compared to the previous year, mainly due to a significant decrease of chickens for meat 32,3%, while the number of laying hens and adolescent hens goes up by 4%.
Table 4. Number of animals in 2010 and 2013 and a forecast for 2014 Amendment
Number of animals
01.11.2010
01.11.2013
Cattle - total, incl .:
526 112
575 584
9,4
585 000
Cows - total
317 295
346 767
9,3
350 000
- Cows for meat
28 546
39 670
39,0
42 000
Buffalo - total, incl .:
9 212
9 964
8,2
10 500
Buffaloes
5 740
6 154
7,2
6 800
Sheep - total, incl .:
1 361 545
1 369 578
0,6
1 369 000
Ewe - general
1 085 175
1 152 902
6,2
1 100 000
- High yield meat sheep
85 648
89 303
4,3
90 000
Goats - total, incl .:
293 639
289 308
-1,5
289 000
Goats
236 056
244 559
3,6
250 000
Pigs - total, incl .:
530 945
586 418
10,4
600 000
Total breeding female pigs over 50 kg
58 406
55 386
-5,2
58 000
Birds total * thousand. Pieces, incl .:
15 260
13 213
-13,4
14 285
Hens and pullets
6 338
6 592
4,0
6 700
Chickens for meat
7 499
5 074
-32,4
6 000
Waterfowl
1 323
1 463
10,6
1 500
Other birds
100
85
-15,0
85
131 463
121 649
-7,5
121 000
Colonies **
529 117
541 564
2,4
560 000
Rabbits
95 148
95 000
-0,2
95 000
Equidae (horses, donkeys, mules, mules)
2013/2010, %
01.11.2014
* data to December 31; ** Data as of 1st May Source: MAF, department "Agrostatistics" NVS - for equines and rabbits
Table 5 assesses the overall potential for biogas production from organic waste from agriculture, food industry and sewage sludge in different regions of Bulgaria.
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Table 5. Total potential for biogas production from organic waste from agriculture, food industry and sewage sludge Bioenergy, m3.104
Region
Area ha
Waste plant growing
Livestock waste
Solid organic waste
Waste from Sewage
food
sludge
processing industry
Northwest
1 029
360
27 561
4 491
156
465
North Central
1 827
720
50 188
10 422
363
1 079
North-east
1 997
990
77 135
12 511
428
1 274
Southwestern
2 031
420
40 706
19 430
676
2 011
South Central
2 752
760
93 947
17 610
613
1 823
Southeast
1 465
510
39 785
7 859
673
814
Total
11 101
3 760
329 322
72 323
2 509
7 466
Adapted by: Biogas Handbook, 2009
As seen in Table 5, in Bulgaria the greatest potential for biogas production and waste fertilizes from plant and animal waste is in the regions Northeast and South Central. Their use for the production of biogas is appropriate and advisable. In terms of solid waste and wastewater, the greatest potential for biogas is in the Southwestern part of Bulgaria, where the population density is higher. There is great potential for the production of biogas from sludge from wastewater treatment plants (sewage sludge) from municipal solid waste and waste from food industries. In Bulgaria there are 50 mln. ha of agricultural land, of which between 20 and 35 per cent are still not processed. Annually, from plant production of the main crops, after harvest, about 4,8-5,2 mln. tons of residual biomass is obtained, as the highest share of crop residues takes straw - about 3 mln. tons. Manure is stored in open facilities and is underused in farms. To limit the negative consequences of open storage of manure, it is recommended its use as feedstock for biogas production. The secondary product (processed biomass) has a higher content of nutrients, which makes it suitable for application to poor in nutrients and microorganisms soils. Despite the above, at present, the production of biogas and fertilizer in Bulgaria encounters a number of difficulties. In the adopted in June 2007 Renewable and Alternative Energy Sources and Biofuels Act, there are no regulations pertaining to biogas. Also, Bulgarian regulations do not provide for special support mechanisms for the production of bioenergy, such as a system of preferential prices, certificatemechanisms, tax incentives, investment, subsidies and / or other financial resources.
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Without these mechanisms for financing, the construction of processing plants biogas is not within the reach of most farmers. The future development of the bioenergy sector is highly dependent on the will of politicians and political leaders who will need to formulate policies and introduce legislations.
Advantages and disadvantages of bioenergy production in rural Bulgaria The opinions of the interviewed farmers, processors of agricultural raw materials and experts in agriculture regarding their attitude to bioenergy production and its contribution to enhancing the vitality of rural areas in Bulgaria are interesting. According to 79,6% of respondents, bioenergy production will support the development of farmers. Almost the same number (76,7%) believe that it will create employment opportunities for the population not engaged in agriculture. This will contribute to reducing migration from rural areas. 59,6% of the respondents believe that entrepreneurship and business development in rural areas should be encouraged by investing in farms and local businesses. The increased financial capacity of the farmers producing bioenergy will reflect favorably on the expansion of farms. Such an opinion share 66.8% of the respondents. According to 61,4%, biogas production is an effective measure to reduce the energy dependency of Bulgaria. Besides, it is a secure means of limiting emissions of methane and other greenhouse gases, which have an adverse impact on the environment. Investing in production facilities for the production of bioenergy is an important tool for improving competitiveness and potential for enhancing the economic performance in manufacturing and businesses in rural areas (59,3%). Respondents put forward the following problems: Lack of qualified professionals who know the technology for the processing of biogas and fertilizer, which can slow the process of construction and start of the plant. This opinion share 55,9% of the respondents; According to 53,9%, the lack of support mechanisms from the state makes the process of bioenergy production unavailable for the majority of farmers. The lack of initial capital, management knowledge and skills to develop a different from the agricultural business type are the basis of low interest of farmers to develop bioenergy production (49,6%). The respondents also raise the problems associated with lack of skills in team work (45,8%), shortage of well-trained executives (33,9%) and others.
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CONCLUSION The production and use of bioenergy from organic waste leads to a number of socioeconomic benefits for the society, the environment and the farmers. The development of a national sector for bioenergy will stimulate the creation of new enterprises with a significant economic potential, boost rural incomes and lead to the creation of new jobs. This leads to improved living standards and contributes to the economic and social development. One of the main contributions of biogas production is that by anaerobic biological treatment of waste from the crop production and livestock farming, there is an opportunity to reduce the amount of individual nitrogen and thus limiting soil pollution with nitrates. This fact has a positive impact on the quality of soil, groundwater and on biodiversity as a whole. The promotion of bioenergy production as a safe and sustainable source of clean energy, together with its benefits will help for the future development of the sector in Bulgaria.
REFERENCES Agricultural reports, Ministry of agriculture and food (MAF), Bulgaria 2010 – 2013. Statistical Yearbook, National Statistical Institute (NSI), Bulgaria, 2010 – 2013. Survey among farmers, processors of agricultural raw materials and experts in agriculture, Agricultural University, Plovdiv, Bulgaria, 2013– 2014. Newsletters, Department of Agrostatistics, MAF, Bulgaria 2010 – 2013. Programme for Rural Development the Republic of Bulgaria 2014-2020. Bencheva, N. (2011). Regional clusters to improve efficiency and competitiveness of agricultural production. Publishing House of Academic Agricultural University, Plovdiv, Bulgaria. Bencheva, N. (2012). State, problems and development of the agricultural sector in Bulgaria under the common agricultural policy, Agricultural sciences Volume IV, Issue 9, pp. 7-17. Seadi, T. et al. (2009). Biogas Handbook, BiG East, Bulgaria. Tepavicharova, M. (2012). Status, problems and development of human resources in the agricultural sector in Bulgaria under the common agricultural policy, Agricultural sciences Volume IV, Issue 9, pp. 59–66.
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Journal of Innovations and Sustainability
Volume 2 Number 3 2016
Challenges to Labor Market Development in Bulgaria Venelin Terziev1 Angel Kanchev University of Ruse - Bulgaria Vasil Levski National Military University – Veliko Tarnovo, Bulgaria
Stefan Stanchev Trakia University - Stara Zagora, Bulgaria Abstract The paper examines challenges to labor market in the Republic of Bulgaria. The analyses of its development from the beginning of the transition to the market economy, structural changes in employment and unemployment, individual labor supply and policy of building a functioning labor market reveal specific factors of the unemployment and the growth in the country. Current problems are dicussed and general conclusions about future development are drawn on the basis of the examined aspects of labor market development influenced by the periods of economic development and the place and the roles of labor market policies in the general economic policy. Key words: labor market, employment, unemployment, policy.
INTRODUCTION After World War II the actually existing conditions for full employment enabled almost all countries to focus their efforts on the issue of labor efficiency, the behavior of the participants in the labor process, the attitude to labor. After the 70s essential changes happened in the economic and social life worldwide and they had an impact on "attitudes regarding labor" and labor relations in the strict sense of the term. The
1
Corresponding author:
Prof. Dipl. Eng. Venelin Terziev, D.Sc. (Economics), D.Sc. (National security), Ph.D. E-mail: terziev@skmat.com
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widening gaps between the demand and the supply of labor brought to the focus of attention a concept of the labor market in which the main emphasis was on the relation between employers and employees. Major signs of the so called "black economy" and "black labor market" came into existence. Quantitative and qualitative discrepancies, on the one hand, resulted in measures for reducing the labor supply and, on the other hand, in measures for stimulating the labor demand. The marginalization of certain groups of the population and the rising inflation were important issues in this period. In the European Union, the USA and Japan the period after 1980 was characterized by some achievements in economic growth, allowing for a corresponding increase in employment, albeit at a slower pace. The structural changes in the economies were of such a nature that the use of the old methods for regulating employment and unemployment were already inadequate. At that time Bulgaria and the other socialist countries, which had been subject to the idea of "full employment" for more than half a century, suffered the heavy consequences of the transition and the economy restructuring, which seemed to be most severe in employment. Bulgaria turned out to be relatively unprepared to meet the challenges of the market economy in this field also because of the lack of public attitudes
towards
greater
personal
activity,
personal
responsibility
and
entrepreneurship. The expectations for a change were linked again and primarily to the role of the state.
PECULIARITIES OF LABOR MARKET DEVELOPMENT IN BULGARIA In the years of socialism, the state policy was aimed at preventing unemployment, which was happening at the expense of economic efficiency and productivity. New job positions were opened all the time and all available labor resources were mobilized to participate in production. The mass accumulation of fixed capital and the major investments in the development of the human resources of the country did not contribute to the stable and continuous growth of productivity. There was a development of the so called hidden unemployment connected with the inefficient use of the already employed workforce, loss of working hours for various reasons, low labor intensity and others. By the mid-70s the economic growth was based on a continuous increase of the used production resources (workforce, investment, raw materials and materials, energy) in proportion to the increase of production or at a faster rate. Long before the end of the 80s, it started to become clear (and that’s why the question was openly posed) that a further increase in production could not be provided following the previous
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extensive path, i.e. through a steady increase in production factors. Attempts were made for a shift to an intensive type of development through increasing the labor productivity at a faster rate, in terms of used resources and production. However, the conditions for this development were not provided - modernization of production, new technologies and techniques and economic incentives for the employed in a more productive labor. The deceleration of the economic growth rate in the 80s, related to the detention and decline in the labor productivity, increased hidden unemployment. Serious difficulties came out to maintaining the achieved standard of living of the population. The leaders of the enterprises were also interested in maintaining a higher employment rate than the economically necessary one. The category of the company and the level of the payment depended on its scale, including the number of those employed in it. In addition, there existed a reserve of workforce that could be used, if necessary, to complete or exceed the plan - usually at the end of the year or a fiveyear period. The overexpenditure of means of production, including for salary, was not penalized. The distribution of the workforce between sector activities, sectors and economic regions was done administratively. Insofar as under these conditions it could be assumed that there existed a labor market, it had the following characteristics (particularly in the last decade): the labor demand exceeded the labor supply, i.e. the number of jobs was more than the number of the employable persons; high level of employment of the population, including women. Virtually all employable persons, who did not continue their education in regular training and were not in the army, but were healthy, were involved in the economy, that is, were employed; relatively low wages and little differentiation in the level of pay for various groups of employees (by education, professional training and qualification, working conditions and other factors for differentiating wages); continuous improvement of the level of education and professional training of employees, mainly at the expense of the younger generation, regardless of the low wages of skilled labor, often lower than the ones of the labor of workers with low education and without vocational training; universal and guaranteed employment, a high degree of protection against dismissal, until in fact the employee himself/herself wanted to be dismissed;
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 controlled movement of the population and especially of the workforce to the large towns;  mandatory distribution of jobs to the university graduates and the graduates from other professional schools (up to the early 80s);  substantial share and priority of social benefits in enterprises in labor costs and motivation to work in one or another organization such as opportunities for early retirement, protection against dismissal - especially before retirement, before birth and
for
mothers
with
small
children, disabled
and
others;
provision
of
accommodation or hostels by the enterprise at symbolic prices; mandatory paid leave for childcare (up to the age of 3 years of the child) and continuing education with preservation of the workplace; free or relatively low-priced dining in the enterprises; cheap annual family holidays by the sea and/or at the mountains; purchase of food and other products from the enterprise at low prices; use of free medical, dental, preventive and sports services in the enterprises; use of low-priced childcare places at the enterprise; scholarships for the studying children of long-time employees of the organization and others. In the second half of the XX century, the economy of Bulgaria changed from a typical farming to a highly industrial one. In the early 50s the predominant share of the production and of the employed was in agricultural production. The executed collectivization of agriculture in the 60s and the intensively pursued policy of industrialization radically changed the structure of production and employment. More than one million agricultural workers changed their occupation with one in other sectors - mainly industry and to much lesser extent, construction and services. The share of industrial production and employment was continuously growing and at the end of the 80s, by share of industrial production, investment, long-term assets and employees, Bulgaria had the characteristics of a typical industrial economy. Several years before the beginning of the transition, in accordance with the ongoing at that time attempts to reform the socialist economy, the distribution of the workforce and its mobility was freed from administrative interference. The very beginning of the transition to a market economy coincided with the realized liberalization of the movement of the population and the workforce - in and outside the country, between different settlements and to large towns; wages; employment and dismissal and others. The first half of the 90s was a period of economic reform: establishment and development of markets, including the labor market; a change in the pattern of
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employment and formation of adequate policies to address the social problems arising from the privatization, the structural reforms and the evolved unemployment and impoverishment of the population. Since the late 90s а policy of EU integration was pursued and related actions of strategic plan character were carried out on reduction of unemployment and increase of employment. Strategies were adopted (including the Employment strategy and national plans) for linking the economic development with job creation. The inherited (considerable in volume and diversity) social benefits enjoyed by the population at the time of socialism led to a kind of turn in the situation during the transition. On the one hand, people expected that they would be preserved and on the other hand, the budget constraints, the poor financial situation of the enterprises, the uncertainty on the part of the management team regarding its own future and that of the organization proved to be an obstacle to this. In practice, the costs of these benefits increased labor costs, reduced profits, worsened the economic conditions of the transforming state enterprises and for the newly established small private enterprises there was a lack of practice and often desire or inability to stimulate and motivate the staff. In 1991 in the country was first introduced the negotiation of the employment salary within the settlement of individual and collective labor relations. The corresponding government act created three levels of formation of wages: national - for determining the minimum wage for the country, the types and the minimum amount of the additional payments for work (for continuous work, overtime work, etc.); collective employment contracts – at sectoral and branch level and at enterprise level; individual employment relation. Based on the legislation and the relevant regulations, there was a fundamental change in the form of employment – through negotiation of both parties of the employment relation and not as it was, unilaterally, by order of the respective head of the enterprise. During these years of transition the existing situation in the labor market predetermined that hiring took the form of fixed-term contracts (with a maximum duration of three years under the current legislation). The practice and the specific situation of the labor markets widely approbated the hiring under short-term employment contracts (with up to 1 year) and the hiring not based on a contract, but on civil contracts, the employment without any contract, without social insurance and others. The foundations of industrial relations, completely unknown and undeveloped at the time of socialism, were laid during the years of the transition to a market economy.
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This happened in the early years (1989-1990) and in the subsequent years they developed and enriched. The legislation established the principle of tripartism in the management of human resources at national level, determined the subject of the three-way partnership (regulation of labor and social security relations and issues related to the living standards of the population), regulated the manner of the state partnership with the representative organizations of employees and workers (consultation and cooperation), determined the basic criteria for representativeness of the organizations of employees and workers and of employers (membership, representation of sectors, availability of national and regional structures). The institutions of industrial relations in Bulgaria were built. They came into existence mainly in the form of tripartite cooperation councils (in enterprises - bipartite). For this purpose, in this regard it was used the rich experience of the European countries and the relevant conventions and recommendations of the International Labor Organisation (ILO). The creation of guarantees for the realization of the fundamental rights of workers required the preparation and the adoption of a number of specific laws and the development of the relevant institutions, funds and other conditions on their basis. It was impossible for the National Assembly to prepare and adopt the numerous acts on labor and social protection of the population for such a relatively short period. Besides, in the same period there was a need to be adopted a number of laws in other areas of the public life. That’s why the relevant governments prepared and adopted a number of regulations (decrees, regulations, etc.) on the issues of the labor market regarding the creation and development of its institutions, insurance and unemployment assistance, stimulation of unemployed and employers to increase employment, vocational training and qualification, etc.; about the social insurance of employed people and self-employed, entrepreneurs, people of liberal professions and others; social assistance and social care; health care; education; wages; work conditions and others. Based on that, the relevant institutions were also developed with central management and corresponding regional structures. The development of the labor market followed the main trends in the economy restructuring, privatization, liquidation of inefficient industries and activities. Throughout the first period there was a high labor supply and a shrunk, very limited demand. This turned the low employment and the high unemployment into a significant social problem for the successful integration into the EU. The changes in the volume of production affected the unemployment and employment rate of the population. In the process of the complex market restructuring of the
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Bulgarian economy, since the late 80s specific factors of the actual situation have been generated and activated. In the first period they suppressed the growth, leading to deterioration and even to certain deformities in some key macroeconomic relations and proportions. During this period the liberalization of trade and prices happened and the painful and protracted reforms in the agricultural sector began. Since the beginning of 2000 and especially after 2003, the reduction of unemployment in Bulgaria has been associated with the attenuation of the processes of privatization and liquidation of unprofitable businesses, as well as with the pursued active policy, creating a high share of offered subsidized jobs. Since the mid2008 one could observe again processes of increase of the officially registered unemployment, which are connected not only with the usual seasonal fluctuations in production and employment, but also with the started global financial and economic crisis, which had repercussions in Bulgaria – a country with an open economy, with a significant export to the developed countries affected by the crisis and with a high proportion of import of raw materials and materials, whose prices were rising. The global financial crisis resulted in a drop of the foreign investments in the national economy. An additional factor were the constraints, the drop in the transfer of financial resources in the country by Bulgarian emigrants which were significant in volume and share, including in the financing of consumption and investments and therefore in the GDP growth. In 2010 the labor demand was formed mainly under the influence of the economic situation in the country, the seasonal factor and the active employment policy. At the end of 2010 the total business climate indicator, according to data of the National Statistics Institute, showed an increase trend compared to the end of 2009, while the rate remained unchanged as compared to the rates in 2000-2001. The main reasons were the uncertain economic environment and the market contraction. The consequences were insufficient financial security, reduction in the consumption of goods and services, reduction of the volume of production, closure of companies, substantial limiting of foreign investment in new productions or for expanding existing productions, cost optimization and more. The specificity of the reactivity of the labor market to the changes in the economy over the year explains the continuing decline in the labor demand on the primary market, regardless of some optimistic signs at the end of 2010. At the same time, the efforts of the Ministry of Labor and Social policy and the Employment Agency to balance the labor market were related to the implementation of an active policy for promoting employment through the state budget and the European Social Fund, respectively the Operational
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Program "Human Resources Development" and the announcement of a large number of jobs for subsidized employment. As a public recruitment agency, the Employment Agency was among the major and preferred intermediaries in the labor market. Through its services connected to the labor demand and supply, in spite of the competitive environment created by private employment agencies, print and electronic media, specialized sites, etc., it had a market share of almost 25%. In 2010 the contraction of the labor market continued as a result of the negative impact of the economic crisis in the country. It dramatically affected the labor demand and the trend of reduction of the announced jobs in labor offices continued. Due to the crisis, a significant decline (compared to 2009) was observed in the real economy and in particular in the private sector. There was also a great reduction in the number of jobs for subsidized employment within programs.
BUILDING
A
FUNCTIONING
LABOR
MARKET
AND
EMPLOYMENT
POLICIES IN THE CONTEXT OF THE EUROPEAN INTEGRATION The institutions and the legislation related to the labor market were created at the beginning of the transition and this gave the opportunity to have them developed in accordance with the existing ones in the European Union countries. At the outset of the transition, with the advent of the first groups of unemployed, was adopted a special government decree (Decree №57 of the end of 1998), which regulates the establishment of employment services and cash payments in case of unemployment - benefits (for the insured) and social benefits (for those with no insurance, mainly the ones graduating from secondary and university education institutions, with vocational training and registering as unemployed in employment services). This regulation, which has been changed (supplemented, amended or elaborated), gave rise to conditions for: registration of unemployed and others seeking employment and of the vacancies from employers; payment of cash benefits to employees dismissed not because of their fault, but on the initiative of employers and mainly due to full or partial liquidation of enterprises, structural changes, cuts in the number, expiration of the employment contract; payment of cash benefits to registered unemployed graduated from secondary schools and universities with vocational training, registered in public employment services (labor offices);
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 training, career guidance and retraining of employees, dismissed from the organizations. This training was organized by labor offices at the expense of the special fund "Professional Qualification and Unemployment" (Fund "PQU") aiming at the more rapid return of the unemployed to work;  development of a state system for organizing mediation, retraining, registration, payment of benefits and unemployment benefits, implementation of state employment policy and regulation of the labor market - National Employment Service at the Ministry of Labor and Social Affairs, which includes the central management, 9 regional offices and labor offices (some of them with branches) in all district centers and larger towns and settlements in the country;  formation of a special fund for the unemployed - for the payment of cash benefits in case of unemployment, recruitment mediation, training and other active employment measures - Fund PQU whose source are the monthly contributions of employers from the business sector (currently 5% of the accrued funds for salary) and the state budget. Essentially there are two contradictory trends in the developed and functioning state Employment Agency- decentralization of most of the functions and at the same time centralization, administration regarding the provision of resources for the various institutional levels in the labor market, development of strategies and measures of active employment policy and others. The role of a main mediator in the labor market is assigned to labor offices. Over the past years their functions have evolved, their priorities have enriched and changed. In the early years they mainly carried out functions of registration of unemployed, announcing vacancies to them and paying cash benefits and benefits to the unemployed. Until recently these activities of the so-called "passive policy" occupied over 90-95% of the work of labor offices. And still today, although much less, there are labor offices for which these functions are the main or sole ones. Unemployed still got registered in labor offices mainly because of the opportunity to receive benefits or unemployment benefits. In support of this claim come the data for the relatively mass refusal of the unemployed to retain their monthly registration at labor offices after the expiry of the term for receipt of these cash payments. This means that the unemployed do not trust, do not expect that, by using public employment services, they would return to work. In the public employment services there has been a gradual development of the activities of the so-called "active" employment policy:
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recruitment mediation, including information on vacancies and work conditions, vocational guidance, motivation and professional qualification with the purpose of getting jobless people employed in the available jobs on the market; stimulation of self-employment, entrepreneurship of the unemployed; implementation of programs and other measures of the state policy for regulation of the labor market; performance of specialized control over the observance of laws and other normative documents in the field of unemployment insurance, payment of cash benefits and compensations, use of the provided incentives for hiring unemployed for the purpose intended, entrepreneurship and others. During the first transitional period, passive policy measures prevailed in the labor market. The share of the costs of this policy varied from 93.7% (1991) to 68% (1999). The majority of the measures were in the form of unemployment benefits paid only to the people dismissed. At first, their size was generously determined and depended on the remuneration received by then, and the period of receipt of the benefits was the same for all. Very soon another, more restrictive system was introduced. The policies got more oriented towards the labor supply and less towards the labor demand. Dominating were passive policy measures: payment of benefits and social benefits for certain groups of unemployed, encouraging early retirement and withdrawal from the labor market of part of the working age population. The number of the people who continued their education increased; there was also considerable external migration, which reduced the supply of labor. There was a lack of purposeful state policy for employment restructuring. Significant development was given to the social policy and the passive policy for the labor market, with adverse long-term consequences for the economic activity of certain groups of the population. The deindustrialization resulted in the implementation of employment programs with sectoral focus – for qualification and employment of the massively dismissed workers from the restructuring or the closure of inefficient industries (ore mining and coal mining, steel industry, etc.). Since the late 90s, and especially since the beginning of the new millennium, there has been a change in the strategy on the labor supply - from passive to active measures; from social benefits to employment; from individual measures and programs to national action plans in favor of employment. The employment policy got included in the macroeconomic and regional policy. There emerged the understanding that employment policy is rather an economic than a
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social problem and that the solution to the problems of high unemployment and poverty is in the economic and not in the social policy, social benefits and temporary subsidized employment. The employment policies started to become more regional. There appeared more programs that reflected the socioeconomic priorities of the regions. Business promotion and mitigation of social problems are among the main guidelines. The actions are aimed at: supporting the establishment and operation of small and medium-sized enterprises, particularly in the regions in need of diversification of the economic structure (regions of industrial decline, underdeveloped rural areas); projects for employment and restructuring of manufacturing plants, mainly in regions with high unemployment and risk of exacerbation of social problems; creation of entrepreneurial and innovative environment (establishment of networking cooperation, regional marketing and distribution of information, support to the creation and operation of market and technological infrastructure, business services, improving the quality of human resources, improving the quality of the environment as a general condition for increasing the investment attractiveness, etc.). The programs with a focus on infrastructure sites are aimed at the reintegration of unemployed and are expected to have a positive impact on the development of municipalities. The total effect of the transition from a planned-distributive to a market system in key economic areas such as changing the form of ownership through privatization or transformation of the financial system from a state to a mixed one (establishing a system of commercial banks, stock and other exchanges, etc.), seems relatively transparent today. The area related to labor relations remains more diffuse. It is generally accepted that an economic planning and distribution system inherently denies the existence of market regulators of labor processes. At first glance, it is true. In the planning and distribution system one of the fundamental public relations – the right of labor – is interpreted as an obligation of people to engage in socially useful labor. In contrast, in a market economy voluntary labor is fundamental - the right of people to choose freely between self-employment and voluntary unemployment without any coercion. In both systems the state's role in providing employment is determined in a different way. If in the first case, in response to the binding nature of labor, the state declares a guaranteed provision of work to its nationals, in the second case, by virtue of the different distribution of rights and responsibilities between the nationals and the
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society, there is no such guaranteed obligation in respect to every person. If the planning system based on state ownership involves the regulation of wages centralized through a unified tariff network or system, in the market economy operate more complex mechanisms that involve wage determination by the labor market, through a developed system of collective contracting (but not in all countries), a legislative determination of the minimum wage, limiting the wage growth in order to curb inflation, etc. The planning system also uses its immanent instruments to influence the demand and supply of labor, the regulation of hiring and dismissal of workers. Among these tools are: statutory limits on numbers, rules for determining the wage, the ratio between the increase of wages and the labor productivity, a progressive tax on the raising of wages, payment for labor resources, the institute of address registration, planned distribution of university graduates, agricultural migration, organized borrowing of workers, etc. Such tools are not characteristic of the market economy. However, despite the quality differences, the staunch opposition is not always fair. The constitutional obligation of people to work, for example, was combined with the free choice of profession. In the search of a job employees had the right (with certain restrictions related, for example, to the place of residence) to communicate freely with employers. In turn, employers had relative freedom in choosing the needed employee (within, for example, the staff listing and the settlement). Đ•mployees had the right to leave of their own free will, which is more characteristic of the nature of a market economy. Generally the freedom of movement of employees from one establishment to another was not restricted. If tariff rates were determined at the central level, within the established systems of labor remuneration, non-cash income (company housing) turned into a factor of market differentiation. These and many other facts are evidences of the presence of elements of market labor relations in the planning and distribution system characteristic of Bulgaria. Perhaps the main difference between the two systems, erected years ago to the rank of a political advantage of the planned economy, is the absence of open unemployment. Since it was believed that full employment was achieved, there was no policy on unemployment. The main task of the state was to maintain full employment and its rationalization. This policy direction was determined as employment policy. Given that the chronic problem of the Bulgarian economy was not unemployment, but the deficit of personnel, the senior management considered the provision of workforce for the national economy as Đ° main economic objective of the employment policy.
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However, in the 70s and 80s there was an observed retreat from the pure planning system. Problems, connected not with the shortage of staff, but with the possible deficit of jobs were indirectly recognized. Thus, for example, one of the main tasks of a number of decrees and regulations was connected with an improvement in the organization of wages and introduction of new tariff rates and wages for the workers in the productive sectors of the national economy and in achieving a better balance between the number of jobs and the number of employees. This expanded the degree of freedom of employers to dismiss workers for economic reasons. The possible occurrence of unemployment forced the taking of such decisions (as temporary rules) on the procedure for recruitment and retraining of workers exempt from associations, businesses and organizations, as well as to ensure effective employment of the population, improvement of the employment system and increase in the social guarantees for workers. However, these and other changes took place within the existing political and economic paradigm. Its change at the beginning of the reforms in the 90s questioned the basic steps of the transition and the features of the transitional period itself. Perhaps the least dramatic turned out to be the transition related to the return of democratic civil rights. The Act on Protection against Unemployment and Employment Promotion of 1997, and before that the new Constitution of the Republic of Bulgaria adopted in 1991, gave the statutory right of citizens to self-administer their ability to work without any coercion. But in economic aspect this transformation proved much more dramatic. On the one hand, many workers remained "attached" to the companies through different non-monetary levers (housing, kindergartens, etc.), with the preserved institute of address registration, the absence of housing market, etc. Job loss or change meant also loss of significant social benefits. On the other hand, the redistribution of economic responsibility between citizens and the state led to the irrelevance of the state's obligation to ensure the provision of jobs for its citizens. The latter became impossible due to the leveling of the balance of the rights and the obligations of employees and employers. Unlike within the previous centralized system, the state lost its right to dictate the conditions of employment for people in need of work (through mechanisms of non-economic coercion) to the increasing range of privatized enterprises. The shrinked public sector of the economy, on which the state could have a direct influence (e.g. by increasing the jobs in the civil service), had its limitations and by volume it could not accumulate all who lost their jobs. But, if the legislative recognition of the new relations required minimum time, the formation of new institutions and instruments to support employment,
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offsetting to some extent, the old ones, could not be achieved so quickly. As a result of such transformations inequality arose in the labor market. Graduates, persons returning from places of detention, women trying to return to work after maternity leave due to pregnancy and childbirth and many other groups of citizens found themselves in a more disadvantaged position in the labor market. Inadequate tools or lack of tools for their support and their return to employment, implemented in the market economy, brought back the attitude to the state as to an institute obliged to provide guaranteed employment. But very rarely one could find an answer to the question where these people could be employed. Another consequence of the democratic changes in the labor law in the transitional period was the increase of discrimination in recruitment and dismissal. But, as in the previous case, these processes were caused not only by the nature of the labor market, but rather by the transition state, when the area of traditional state control over the compliance with the labor rights of citizens narrowed and new tools and institutes (institutions) had not yet been created or were not working effectively enough. The transformation of the Bulgarian economy into a market one revealed numerous peculiarities and paradoxes in the formation of the labor market, which are not usually characteristic of the countries with a traditional organization of the market economy. Thus the absence of major economic growth in the first years of the reforms contributed to the establishment of a view of the uniqueness of the Bulgarian transition phase in the sense that the successfully selected macroeconomic strategy resulted in the avoidance of serious problems in the labor market. This "success" however was accompanied by hypertrophic appearance of intermediate forms in the status of the employees who were not completely unemployed, but were also not working. "Unemployment in the workplace", including the one connected with the preservation of excessive, economically unjustified employment, paradoxically coupled with a shortage of staff. The actual unemployment resulting from a periodic change of jobs met the inflexible employment system, the weak points of the labor market, the insufficient understanding of the role of some market mechanisms such as the employment services (primarily with their functions in informing about available vacancies and workers seeking employment). Structural unemployment, usually determined by the recession in some industry branches and the growth (including the increase in the number of jobs) in new sectors is generally eliminated by systems for retraining of employees. But in the transition conditions in Bulgaria, the compensating creation of new jobs was clearly insufficient, and the new jobs often
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required no training but professional habits and skills of a lower level than the ones in the previous job. In response to cyclical unemployment (unemployment of insufficient demand) are often used measures for recovery of aggregate demand (or for retention of its decline), promotion of job creation (tax concessions, removing the obstacles to the creation of small businesses, provision of know-how, etc.), promotion of part-time employment. But in the Bulgarian transitional conditions, cyclical unemployment rather took the form of systematic unemployment as a result of the continuous and prolonged economic recession, sectoral imbalances and other causes that put into question the traditional means of counteracting to unemployment. Similar paradoxes of the labor relations in an economy in transition often suggest that the measures of state influence on the labor market make no sense in such a situation. Therefore, their application should be postponed until the moment when the labor market and the economic system as a whole finally acquire classic market features. But the problem is that not only the listed, but also many other paradoxes of the transitional period entirely dictate the situation in the labor market. The increasing discrimination in hiring and dismissal, for example, can hardly be attributed to the regularities of the transition. Even the distortions related to the causes of unemployment cannot be used to deny the fact that each year tens of hundreds of people change their jobs remaining in a state of frictional unemployment for a certain period of time. Structural changes, although acquiring the form of almost universal, but uneven decline, coexist with different points of growth both in new sectors (e.g. financial and commercial sector) and within the industries that are experiencing recession (some companies hire new workers and others dismiss workers). The weak points of the institutions in the labor market, regulating the wage dynamics (e.g. employment contracts and agreements) can not also be used as a starting point for conclusions about their temporary inappropriateness. Nowadays the transformation of the labor relations from such that are typical of the planning economy to ones typical of the market economy is significantly delayed, compared with the advent of other attributes of the market (formation of different forms of ownership, financial and other markets). A delay of this kind may become an essential factor leading to the delay in the completion of the transformation period. It could be stated that this period will not end if the labor relations, the creation of effective institutions in the labor market remain inadequate to the other economic transformations. It seems that one of the main differences in the regulation of the processes connected with the employment of the population in a planning and market economy is the
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unacceptability (to a large degree) of the linear management dependencies, characteristic of the previous economic system, in the new conditions. The relations between the state (guaranteeing a job for everybody) and employees (bound by the state to work) were replaced by more subtle and complex relations, free from such a direct dependence (it is required to maintain employment while respecting the right of people to work or not work and the right of employers to hire only the needed workers in the right amount). Furthermore, the state is no longer the sole participant in the policy in the labor market. The role of employers (through their associations) and employees (with trade-unions) is increased. There is a change in the distribution of competencies between government bodies. In place of the state planning system (such as the Ministry or Planning Committee) as the primary institute for planning the distribution of labor resources is established a new division of labor between government structures that have an impact on the processes of generation, distribution and utilization of workforce. This division of labor is impossible without a proper division of responsibility within a unified state employment strategy. Such a strategy is a targeted image of the employment arrangement and a kind of a set of actions in different areas (finance, taxation, employment relations, income, education, labor market, etc.), which are implemented by legislative and executive state bodies and are aimed at non-inflationary achievement of full, productive and freely chosen employment. One of the areas of influence on the state of employment and unemployment, whose role remains undervalued to this day, is connected with the policy of the state on the labor market. The nowadays existing variety of interpretations of the term "labor market", the influence of the state on it, but also of the factors that directly or indirectly affect its condition and functioning, are also a reflection of the state of transition.
CONCLUSION Taking into account all these aspects of the development of the labor market, depending on the periods of economic development and the place and role of the policies on the labor market in the general economic policy, it is possible to make some major conclusions for the future development: 1. The sensitivity of the labor market and its main parameters will increase in the future and will experience both the positive and the negative effects of the cyclical economic development. The openness of the Bulgarian economy determines the effects of external influences and the ongoing reform process in the country
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predetermines additional internal effects on the labor market. Therefore, the efforts to increase the flexibility of the labor market through a relevant policy should continue as they are an essential tool for softening the impacts and for timely adjustments. The more flexible the market, the higher its adaptability will be to internal and external influences and the smaller the negative consequences will be. 2. The flexibility of the Bulgarian labor market is developed by diversifying the forms of the labor relations and the working time arrangements, by introducing new regulations on the labor relations, such as home-based work and distance working, by establishing an Agency for temporary employment. Yet the traditional models of labor relations and stereotypes of behavior of employers and employees still predominate. 3. The informal sector of the labor market complements the traditional patterns of labor relations by more flexible, but illegitimate forms of employment and working time. The presence of this sector significantly deforms not only the image of the real employment in the country, but also the picture of its form and level of pay. Therefore, a policy for limiting this sector should remain one of the highlights not only of the policy on the labor market, but also of the economic policy in general. 4. A significant problem in the development of labor relations is the combination of flexibility and security. So far the flexibility of the Bulgarian labor market has been developing more actively than the security in labor relations in terms of employment contracts, wages and working conditions. In this sense, further development should be given to both the organization of the operation of labor inspectorates and its effectiveness, but also to the actions for increasing the liability of employers, employess and the general public. 5. The underlying point in the evolution of the labor market and the employment in Bulgaria remains that for formation of a coherent and sustainable strategy for economic development, with a clear vision for the structure of the economy and the demand for labor in the medium term. The deindustrialized Bulgarian economy determines the change in the structure of the labor demand in Bulgaria and the segmentation of employment. At the one pole stands the shrinking skilled workforce and at the other – the increasing mass unskilled labor. A similar structure of the workforce could hardly supply "intelligent" economic growth and substantial growth of economic development in general. Bulgaria is experiencing serious difficulties in ensuring a quality workforce of specialists with secondary education, well-trained professionals with the necessary communication skills and ability to work with modern technologies. The outflow of specialists from the "middle class" from the
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country, in addition to the continuing emigration of young people, outlines not only quantitative but also qualitative problems with the workforce in the coming years. The stagnation in the economy, already continuing for several years, will come to an end in the coming years and then the revival of the labor demand will meet the limit of the proposed low-skilled labor. That is why at short notice the country has to solve two very important issues that are outside the labor market, but directly affect it: first, how to stimulate the creation of jobs and second, in what sectors of the economy these jobs will be created - in sectors that provide high performance and competitiveness or in traditional and less productive sectors. The answer to these two questions will determine the future development and in more distant horizons, it will provide a shift to a higher economic growth supported by productive and competitive work or development within the existing inefficient and technologically obsolete economic structures, seeking cheap workforce.
REFERENCES Terziev V. Impact of active social policies and programs in the period of active economic transformations in Bulgaria. “East West” Association for Advances Studies and Higher Education GmbH, Vienna, 2015. Terziev V., Dimitrova S. Social programming in the context of stimulating social activity and regulation of social development through active policies. “East West” Association for Advances Studies and Higher Education GmbH, Vienna, 2015. Terziev, V. (2015). Methodological approach to research and evaluate main states and transitions on labor market. Problemay sovremennoy ekonomiki №24, pp. 22-48. Terziev, V. (2015). Social policy and labor market development in Bulgarian transition period. Ekonomicheskie nauki. Prioritetnaye nauchnaye napravleniya: ot teorii k praktike, pp. 139-154. Terziev,
V.
Predizvikatelstva pred sotsialnoto programirane v konteksta na
nasarchavaneto na sotsialnata aktivnost i reguliraneto na sotsialnoto razvitie chrez aktivni politiki, Primaks – Ruse, Bulgaria, 2015.
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Journal of Innovations and Sustainability
Volume 2 Number 3 2016
Mitigation Efforts in Rural Communities after Extreme Weather Events - New Insights for Stakeholders Vesela Radović1 Institute for Multidisciplinary Research, Belgrade University, Serbia Abstract Global climate changes are undoubtedly course of the increasing frequency of extreme whether events all over the world. Rural communities belong to the “group of victims” which is greatly jeopardized by consequences of the extreme weather events. Having in mind limited capacities for the preparedness, response and recovery after any kind of emergency it is clear that the rural community mostly needs external help. That is the point of this paper: to make new insights about this important issue, and to discuss: “how to provide adequate help in the rural communities and build adequate adaptive and response capacities”. In many countries agriculture and rural tourism are main economic activities in the rural area and its interruption could be the obstacle for implementation of sustainable development. Various stakeholders omit to be aware of this issue. Emergency agencies and many others have to make the comprehensive plan for rural communities (having in mind all its limitations). In the Republic of Serbia rural communities do not have enough capacity for recovery and usually it takes many years after an event. A minimum of an economic recovery standard has to be created for the rural community. It also has to be a specific contingency plan in the future reorganizations of emergency services in Serbia and at the Western Balkan region. It should be one of the priority issues for stakeholders in the near future in disaster risk reduction. Providing equal access to resources to population in the rural community after the extreme weather event has to be the priority task for policy makers and all actors in emergency management. Key words: extreme weather events, agricultural households, rural, economic recovery.
1
Corresponding author:
Prof. Vesela Radović, Ph.D. E-mail: veselaradovic@yahoo.com
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INTRODUCTION Improvement in the quality of life of rural people is an important issue in global agenda of rural development program in the 21st century. In the Republic of Serbia – a country characterized with significant regional disparities, and not so favorable life of population in rural areas, successful rural development program is a necessary aspect of future sustainable development2. Regarding the definition of rural area in the scientific literature a permanent debate existed. In majority of documents a definition is accepted made by the Organization for Economic Cooperation and Development (OECD) which states that “rural areas are those communities with a population density of less than 150 inhabitants per square kilometer”3. Following the dynamic change in modern society and specific circumstances in some areas, European Commission (EC) decided also to use population density criterion, but pointed a lower level than those defined by OECD (less than 100 persons per square kilometer)4. In the European Union (EU) rural areas cover 90% of the territory and are home to approximately half of its population5. EU`s rural development policy help the rural areas to meet the wide range of economic, environmental and social challenges. Among other priorities in the complex of rural development process is: promoting social inclusion, poverty reduction and economic development in rural areas6. Throughout decades in Serbia migration flows follow a recognizable pattern: from rural to urban, from mountains to plains, from undeveloped region to those more developed. According to the data of the World Bank rural population in the Republic of Serbia counted 44,55% of total population in 2014. This percentage declined in comparison with this in 1990 when it counted 49,6%7. Central Intelligence Agency
2
National Strategy for Sustainable Development. Official Gazette of the Republic of Serbia,
No. 111/09. 3
OECD. 1994. Creating Rural Indicator for Shaping Territorial Policy, Paris.
4
European Commission Rural Development CAP 200 Working Document, 1997.
5
Rural
development
in
the
EU:
http://europa.eu/rapid/press-release_MEMO-05-
215_en.htm/. Brussels 21st June 2005. 6
EC Agriculture and rural development: http://ec.europa.eu/agriculture/rural-developmen-
2014—2020_en/. 7
Trading
economies.
2016.
Rural
population
growth
(annual
%)
in
Serbia:
http://www.tradingeconomics.com/serbia/rural-population-growth-annual-percent-wbdata.html/. UN Rural Development - Serbia.
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(CIA) in it’s World Fact Book presented data about Serbia and its rural population which, counted on data in 2015, is 44,4%8. As rural development is a policy area that is of vital importance for the EU, on its path to the full membership Serbia starts to follow the main recommendation in this area. In Serbia “a rural area” is defined as “an area whose main physical and geographical characteristics are the primary use of the land for agriculture and forestry”9. The first task for stakeholders in Serbia is to create the adequate legislations in this area and competent authorities mostly fulfilled it in the last decade. What was not conducted in a satisfied way is the implementation of proposed preventive measures in rural area regarding the issue of emergency management10. The risk of insufficient capacity of rural community in the emergency management was more than obvious in numerous emergencies which hit those areas. Because agriculture is still the predominant activity and the major economic contributor in terms of food, incomes, public goods and services in rural areas of Serbia, it is obvious that its weather dependence is the most serious problem which jeopardizes the sustainable development in rural areas. Serbia is a country highly exposed to the threats and risk of global climate change, natural disasters and extreme weather events11. Having in mind limited capacities of rural communities for the preparedness, response and recovery after any kind of emergency, it is clear that they mostly need
8
Central
Intelligence
Agency
(CIA)
the
World
Fact
Book
–
Serbia:
https://www.cia.gov/library/publications/the-world-factbook/geos/ri.html. 9
Bogdanov, N., Meredith, D., Efstratoglou, S. 2008. A Typology of rural areas in Serbia.
Ekonomski anali 53(177). 10
National Strategy for Protection and Rescue in Emergency Situations. Official Gazette of the
Republic of Serbia, No. 86/11. Law on emergency situations. Official Gazette of the Republic of Serbia, No. 111/09. 11
Index for Risk Management 2015 (INFORM 2015). Inter-Agency Standing Committee Task
Team for Preparedness and Resilience and the European Commission: http://www.informindex.org/. Radović, V., Mercantini, J. M. 2015. The Importance of Risk Communication as an Integral Part of Risk Management in the Republic of Serbia. In Mercantini, J.M., Faucher C. (Eds.) Risk and Cognition, Berlin Heidelberg, Germany. Verlag Springer, pp. 61-88. Kraft, S., Ecklstein, D., Dorch, L., Fosher Germanwatch, L. 2016. Global Climate Risk Index 2016. Who differs Most From Extreme Weather Events. Weather –related loss Events in 2014 and 1995 to 2014.
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external help. The paper aim is to provide new insights about important security issue in rural areas and to discuss how to provide an adequate support to the rural communities and build adaptive and response capacities in various emergencies, especially in extreme weather events which permanently affected the wellbeing of rural population. In numerous reports it is obvious that the discussion of security issue still lag behind all other issues12 (it is tackled sporadic only as a part of provision of public services, even it is clear that this is a much broader issue). It starts from ecological risks linked with the inadequate maintenance of local water supply system, health and education facilities, insufficient energy capacities, ruined local roads and lack of telecommunication services, shortage of volunteer and trained human resources needed for adequate response to risks and etc. The conclusion confirmed that this issue should be urgently included in all strategies and plans regarding the future sustainable rural development because the cost of consequences seriously impact development of every community. The methodology used in this article is characteristic for social researches: historical analysis, comparative analysis and data analysis. It allows authors to use various documents from electronic databases, books, scientific journals, official documents and positive practice from developed countries. After a careful analysis of the data, all facts confirm that the activities of policy makers in the area of strengthening the capacity of rural communities in the process of emergency management were insufficient. The article is divided in few chapters. After introduction chapter, there is a part with few insights about improvement of sustainable rural development in the Republic of Serbia. The next chapter presents some cases of extreme weather event in rural communities and the way of response. The third chapter discusses how stakeholders could make more resilient rural communities on path to the sustainable development. The last part is devoted to the conclusion remarks and list of references used in the article’s preparation. Presented facts show that “the lesson” is not still learnt, and if Serbia in the future wants to avoid the long term consequences of extreme event on rural development, policy makers should be more proactive in the process of implementation positive examples from practice of developed countries.
12
Radović, V., Keković, Z. 2012. Improving Corporate Sectors Responses to Extreme Weather
Events in the Republic of Serbia. In: Čaleta, D. (Ed.), Corporate security in dynamic global environment: challenges and risks (pp. 215-227). Ljubljana, Slovenia, Institute for Corporative Security Studies-ICS.
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Having in mind all the facts, it is obvious that stakeholders in Serbia have to be more engaged in the actions to improve the life condition in the rural areas.
INSIGHTS
ABOUT
THE
IMPROVEMENT
OF
SUSTAINABLE
RURAL
DEVELOPMENT IN SERBIA The Republic of Serbia in the last decade is faced with serious consequences of weak institution capacities and unsuccessful privatization concept which lead to decrease of population standard and jeopardize economy, as well as with the highest budget deficit in the history of Serbia as a state13. Hence, attempts of politicians to improve national economy and global positions after years of conflicts were not as successful as whole society expected to be. The improvement the conditions in the sphere of rural development in Serbia was a permanent plan in numerous strategies from one side, and a long history of neglecting the need of people in rural communities from the other. Rural areas in Serbia are significantly different in social, economic and demographic characteristics, but the main problems in every of them are almost the same. They face the permanent migration to urban areas, poor diversification of economic activities, extensive agriculture as the dominant economic activity, aging population, high unemployment rate, lack of employment opportunities, poor and underdeveloped infrastructure, low gross domestic products (GDP) per capita compared to urban regions and different kind of threats and risks which makes situation even more complex. Furthermore, in work of numerous academicians exploring this issue in detail, like Bogdanov and her colleagues, it is confirmed that in four types of rural areas “for effective rural strategies and policies to be developed and implemented in rural areas, it is necessary to recognize these differences, identify their strengths and weakness and develop strategies which incorporate them”14. Unfortunately regarding the security facts about the participation of rural communities it is shown that this action is regularly missed and top-bottom approach is applied in almost all cases of different emergencies. In the period after 2000, a systematic and structural reform of agrarian sector in the Republic of Serbia began and since then agricultural and rural policy in Serbia has 13
Radović V., Domazet, S. 2010. Uloga privatizacionog procesa u Republici Srbiji u funkciji
ugrožavanja bezbednosti građana i životne sredine - drastični primeri. Poslovna ekonomija, Univerzitet EDUCONS, Sremska Kamenica, No. 2, 2010, str. 151-169. 14
Bogdanov, N., Meredith, D., Efstratoglou, S. 2008. A Typology of rural areas in Serbia.
Ekonomski anali 53(177).
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gone through several phases. Because agriculture dominated the social and economic wellbeing of most of rural population, public policy in Serbia related to agriculture still is a dominant force shaping rural life both on farm and in rural communities. Therefore, in the past period the rural development policy was mostly a part of overall agricultural policy of the country proposed by the Ministry of Agriculture, Forestry and Water management (MAFWM) which was in charge for that task at the beginning of this process (based on Law on Ministry in power in that period). Hence, the national legislation is created, such as: The first Agriculture and Rural Development Strategy of the Republic of Serbia which was adopted in 2005 and defined the general strategic policy framework which should ensure the support for sustainable rural development15. At the same time, the structural reform in the area of the national system started to be more serious and visible in Serbian societies. Government established an integral emergency sector and a new age started with organizational and operational changes in different ministries16. Competent institutions built the needed capacity to create new support tools in the area of sustainable rural development. Rural Development Network of Serbia (RDNS)17 has been established that leads to improving the quality of life in rural areas trough engaging, building and enhancing capacities of local communities and building a partnership between the civil and the public sector. Rural Development Network of Serbia (RDNS) defined a specific Action Plan for the period 2011-2015 in which its role and numerous activities are explained, especially those about launches of new initiative for the adoption, amendment of laws and other regulations and measures important for the future development of rural areas. In this activity, as many other stakeholders, RDNS is devoted to follow the current EU policy based on the following principles: multifunctionality of agriculture, multisectoral and
15
Law on Agriculture and Rural Development. Official Gazette of the Republic of Serbia,
No.41/09. Agriculture and Rural Development Strategy in the Republic of Serbia. Official Gazette of the Republic of Serbia, No.78/05. 16
Radović, V., Mercantini, J.M. 2015. The Importance of Risk Communication as an Integral
Part of Risk Management in the Republic of Serbia, Chapter 3, Book Risk and Cognition, Eds Mercantini, J.M., Faucher C. Verlag Springer Berlin Heidelberg, 2015, pp. 61-88. 17
Rural development network of Serbia. Action Plan 2011-2015, December 2010:
http://www.ruralinfoserbia.rs/dokumenta/action%20plan%202011%20-%202015%20%20rural%20development%20network%20of%20serbia.pdf/.
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integrated approach to rural economies, diversification of activities, creating new sources of income in rural areas, expanding employment opportunities, protection of rural resources, decentralization and partnerships at local and regional level, transparency in the creation and management of development programs. Anyhow, after all evident efforts of the competent authorities in this area, there are a lot of room for improvement. The state is not still creating sufficiently supportive environment for development of rural areas. Some societies consider that: National Rural Development Program for the period 2011-201318 was too ambitious regarding circumstances and many useful measures missed19. The revitalization of rural areas in the Serbia is currently a matter of considerable efforts of all stakeholders. This issue catches the attention of scientific and wider public, policy makers, international organization and ordinary citizens but the solution still misses. It is obvious that this goal could be achieved only in close collaboration between national, regional and local authorities and using the Leader bottom-up approach (selection of the best local development plans of local action groups – LAGs – representing public-private partnerships)20. The basic task for all is to create the measures which will improve the quality of life, human resources and decrease migration, provide adequate public services, infrastructure and employments for rural population. In Serbia there were a lot of measures which support such development, especially in those rural areas where there are favorable conditions for fruit trees and an increase in the area under the new plantations. This support was carried through the disbursement of the scheduled amount per plant, and for berry fruit sorts per hectare. Anyhow, when the people from rural areas face storms, floods, hails, droughts, their response is insufficient. In reformed emergency sector in Serbia rural areas are not so well covered in their plans and programs. The reasons for this statement are numerous, and one of them is the inadequate media coverage, lack of communication and knowledge about how system works, and etc. Risk communication should be a 18
Ministry of Agriculture, Forestry and Water management (MAFWM). National Rural
Development Program of the Republic of Serbia from 2010 to 2013. RS Official Gazette of the Republic of Serbia, No.83/10 19
Ristic, L. 2013. Strategijsko upravljanje održivim ruralnim razvojem u Republici Srbiji,
Ekonomski horizonti, Godište XV sveska 3, str. 229-243. 20
Serbia – rural development. Government focal point(s): Ministry of Agriculture, Forestry
and Water Management – MAFWM: http://www.un.org/esa/agenda21/natlinfo/countr/serbia/ruralDevelopment.pdf
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Journal of Innovations and Sustainability (2016) Vol. 2, No3
paramount issue in the future actions of employees in emergency sector21. Anyhow it is obvious that people from rural area stayed behind the curtains. Only in emergencies of greater scope media cover their stories, and after few days they stayed again alone and continue to struggle for livelihood. The facts which confirm this statement are also numerous. One of the most serious was the ecological accident in Krupanj. The incident at the ‘Stolice’ mine tailing in Kostajnik (Krupanj) is one of the main stand-alone environmental problems caused by extreme weather event and floods22. None competent institution recognized that the risk from this event could be significant. The Ministry of Agriculture and Environmental Protection in few statements just promised to monitor the affected area, but denied any chance for greater population health risk. Environmental protection in different disasters23 is an important issue in global world and there is an urgent need for creation of preparedness culture in Serbia as everywhere else24. Due to the above mentioned disaster, Serbia had to accept the international environmental disaster help, and consequences of that event were costly25. After all years of different efforts the main question still needs to be answered: “When, where and under what circumstances rural development emergency strategies should be created and proved as successful?”. It should be clear that various strategies 21
Terziev, V., Arabska, E., Radovic, V. 2015. Risk communications in environmental crises
advent on the Balkans, 15th EBES Conference – Lisbon, January 08-10, 2015, Lisbon, Portugal. Proceedings CD Volume 4, pp. 2103-2121. 22
Serbian Government, World Bank, United Nation Development Programme (UNDP). Serbia
Floods. 2014. Serbia Floods: http://ec.europa.eu/enlargement/pdf/press_corner/floods/20140715-serbia-rnareport.pdf/. 23
Global risk identification program (GRIP), (2010): Serbia Assessment Report for a purpose
of regional program on disaster risk reduction (DRR) in South East Europe, WMO/UNDP Joint activities: www.gripweb.org/~gripwebo/gripweb/sites/default/files/Serbia%20assessment%20report% 20from%20government%20input_SRBinput_0.pdf/. 24
Radovic, V., Arabska, E. 2015. Preventing contamination in disasters – from theory to the
practice in Serbia. XXIII International Conference „ECOLOGICAL TRUTH“ Eco-Ist‘15, 17 – 20 June 2015, Serbia, pp. 653-660. 25
Reeves, H.J. 2014. UNDAC Landslide advisory visit to Serbia. British Geological Survey.
Open Report, IR/14/043: http://www.eecentre.org/Modules/EECResources/UploadFile/Attachment/UNDAC_Report _Serbia.pdf.
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tailored to particular types of rural areas may be more effective than broader “one size fits all” rural areas. And of course building a resilient rural community should be an equally important question for policy makers than the same question in urban areas.
DO EXTREME WEATHER EVENTS AFFECT THE SERBIAN RURAL COMMUNITIES? Global climate change and extreme weather events which caused enormous consequences all over the world are finally recognized as a threat for the Serbian sustainable development. The legislation in emergency area has been significantly changed after the great floods in 2014. One new institution has been established with the aim to be more efficient in reimbursement of jeopardized population and rebuilding ruined objects26. The Public Investment Management Office is a new body of the Government of the Republic of Serbia tasked with managing the projects of reconstruction and aid allocation following natural and other hazards. Despite numerous activities, more detailed measures and adequate solutions for building more resilient rural community to threats, like extreme whether events, are missed as a specific subject in contingency plans of competent authorities. The recognition of extreme weather and climatic events in Serbia is pretty new, and was previously mostly visible in scientific papers rather than in actions of competent authorities. Stakeholders should have in mind that at any moment the severe weather event could be experienced with consequences that might have been avoided if there is an adequate prevention. Anyhow, the frequency of this events and serious consequences in last few years forced the set up of this issue in the highest place of Serbian policy makers’ agenda, and they finally started to seek solutions for that extremely complex issue. Having in mind that the status of natural resources is the main base for rural community development, each threat to them should be taken more seriously in the future. Data devoted to only one kind of extreme weather event – snowstorm,
26
The Public Investment Management Office: http://www.obnova.gov.rs/english/about-us/.
The Public Investment Management Office has been established by the Decree of the Government of the Republic of Serbia, published in the Official Gazette of the Republic of Serbia, No. 95/15.
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Journal of Innovations and Sustainability (2016) Vol. 2, No3
confirmed that in period 2000-2013 happened 106 snowstorm which caused 12 deaths, affected 140275 of citizens and total loss was 3455169,637 RSD27. Economic consequences of extreme weather normally occur through losses in primary production inputs: human resources, physical capital, infrastructure, land endowments and productivity28. Therefore in rural communities where extreme weather event happened, consequences usually were significant and rural population was additionally exposed to the deterioration of basic public services. For the purpose of closely explanation of this paper, current study presents the situation in the Eastern part of Serbia. They chose this territory because it is recognized as an undeveloped rural area which made a lot of efforts to improve its economic state. It happened thanks to the interest and financial help of international community and of course the Serbian Government. Local economic development in Eastern Serbia has been recognized as a part of urgent action after the Serbian Government has declared its intention to reduce regional economic disparities. A project was developed - Municipal Economic Development in Eastern Serbia (2007 – March 2017). This project is commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and Swiss Agency for Development and Cooperation (SDC), and the lead executing agency is the Serbian Ministry of Economy. The most municipal authorities in Eastern Serbia have been unable to provide services that stimulate economic development while also meeting the criteria of the good governance. Therefore, the key project partners are the nine Eastern Serbian pilot municipalities (Boljevac, Golubac, Kladovo, Knjazevac, Majdanpek, Negotin, Sokobanja, Veliko Gradiste and Zajecar) as well as the Ministry of Economy, the Ministry of Finance, the Ministry of Regional Development and Local SelfGovernment, the Ministry of Agriculture, the Serbian Standing Conference of Towns and Municipalities and the Regional Development Agency Eastern Serbia. During the period of project implementation and actions numerous improvement had been made: provision of a heating system for a school, waterworks for several villages, LED 27
EM-DAT
(Feb.
2015)
-
The
OFDA/CRED
-
International
Disaster
Database:
http://www.emdat.be/. Université catholique de Louvain Brussels – Belgium. 28
Calzadilla, A., Pauli, F., Roson, R. 2004. Climate Change and Extreme Events: an
Assessment of Economic Implications, Proceedings from II International Workshop on Integrated Climate Models: An Interdisciplinary Assessment of Climate Impacts and Policies, 29-30
November,
2004,
CTP,
http://users.ictp.it/~eee/workshops/smr1579/roson.pdf/.
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Trieste,
Italy:
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street lights, a basketball court, and changing rooms at the football pitch and etc. There was also an action in support of various organizations like the association of medicinal herb producers in Negotin29. Although numerous improvements have been proved, one emergency seriously affected few municipalities and caused enormous damage which interrupted the implementation of existed plans. Each disaster is a threat to the sustainable development, and so far this region suffered from great economic loss in the winter of 2014. That was the reason this study to choose this example because there were numerous efforts to improve living condition, from one hand, and from another despite all positive actions, consequences of extreme weather event for which communities were not adequately prepared affected those visible achievements and brought them back in the past. Snow and ice disasters affected the Eastern part of the Republic of Serbia in November and December of 2014/ 2015 and they have inflicted enormous damages to forest ecosystem in this undeveloped region. In various scientific articles which consider sustainable rural development, the protection of forest ecosystem is highlighted as an issue of a paramount importance. Forests in rural areas are as significant as farming. Sustainable forest management contributes to rural economies in many ways. Its role in climate mitigation and livelihood benefits for rural population are enormous. Therefore damages to forest ecosystems affect directly the life of rural population in long term. Hence, along with the disaster losses in numerous spheres (roads, telecommunication infrastructure, and water supply system, shortage of electricity, food, and drugs), current study chooses to highlight the damage which happened to the forests in the affected area. This disaster was the largest in terms and scope and also the quantity of damage of trees so far. In towns Knjazevac, Svrljig and Boljevac on 9th December the emergency was announced. The villages were bounded by snow and ice, without electricity, telecommunication network, health services and water supply. Situation was serious also in Negotin, Majdanpek, and Donji Milanovac. The access to many villages was obstructed with failed trees and the state authorities tried to improve the life conditions for the population sending generators, food and drugs. The cattle also struggled because of insufficient food and water. In the village of Krenta an
29
Local economic development in Eastern Serbia:
https://www.giz.de/en/worldwide/22002.html/ and https://www.giz.de/projektdaten/index.action?request_locale=en_EN#?region=4&countries =RS/.
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evacuation of cattle had to be provided. People from Sector of Emergency Management were there as army forces and gendarmerie, and tried to help people and offer them a feeling of security. Despite all efforts the help was limited because of the extremely cold temperature. Freezing rain and heavy wind tore cables and knockdown concrete poles, and more than 30 villages were without electricity for days. Some villages should wait till the warmer weather in spring when they would be able to completely restore the transmission system because of the rough terrain in winter condition30. The snow storm and ice rain created ice coat on branches and on tree tops, which caused heavy catastrophic consequences on forest ecosystems. Due to pressure and weight of ice,whole forest area has been destroyed. The Institute for Nature Conservation of Serbia conducted professional supervision on February 9th, 2015, at the area of the natural reserve “Stara planina”, precisely at the management units Zaglavak II, Šaška - Studena - Selačka Reka and Vrška čuka - Babajona – Treći vrh. Very serious and grave consequences were determined at the coniferous and deciduous forest ecosystems31. The public enterprise “Srbijašume” was in charge for forest management in the area of Serbia out of Autonomus Province of Vojvodina. Forest experts were organized and made the preliminary report about the consequences of extreme weather event in the affected region. The report was made and the damages were noted in following forest area: Južni Kučaj- Despotovac, Severni Kučaj-Kučevo, Timočke šume-Boljevac, NišNiš and Rasina- Kruševac. This preliminary data are presented in Table 132. Because of that enormous damage the hunting season also suffered. In December 2014 the Department for Forest prepared a specific “Instruction on the procedures during adverse weather conditions”. That instruction declared the temporary prohibition of hunting in affected rural areas. It is necessary to mention that apart from the economic function, the ice breaks have completely ruined the aesthetic function of the destroyed forest. There is no doubt that the process of recovery of damaged forest stands due to ice break will be demanding and long lasting. However, it is of upmost importance to implement the recovery in a qualitative and timely way.
30
Public Enterprise Electric Power Industry of Serbia. Annual report 2014.
31
Institute for Nature Conservation of Serbia. Forest devastation caused by storm in Nature
Park Stara Planina: http://www.zzps.rs/novo/index.php?jezik=_en&strana=vest&n=228/. 32
Public
Enterprise
“Srbijašume”.
http://www.srbijasume.rs/pdf/GodProg2014.pdf/.
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2014.
Annual
Report:
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Table 1. Damages in the forest area under investigation - preliminary data from the Report of PE “Srbijašume“ in 2014
FOREST AREA
Total damage area in ha
Total damage in m3
Kučevo
2 351,60
2 461
Boljevac
10 888,89
161 714
Despotovac
297,2
26 984
Kruševac
902,99
23 219
Niš
3 978,95
241 948
Total
18 419,63
456 326
The damage of forest and forest ecosystems in this event has been assessed as that 266 065 m3 of timber volume on the area of 23886, 00 ha. The total approximate damage of this emergency in 2014 was 290 658 808,00 counted in Serbian dinars (RSD). The public enterprises prepared an Action plan for revitalization of state forests and so as private owned forests in the period 2015-201833. Experts stated that needed actions for complete rehabilitation of damaged forest will last between 30 and 120 years.
MAKING RURAL COMMUNITIES MORE RESILIENT ON THE PATH TO SUSTAINABLE DEVELOPMENT National security in the 21st century is affected by numerous kinds of threat and risks. Some of them are more visible and society is more engaged in the process of seeking adequate solutions. Anyhow, since some of threats are familiar and in front of public all time, the others are sporadic and permanent action is missed. Various campaigns about the building towns more resilient are well known in Serbian public, but at the same time in Serbian rural community this actions are absent. While developed countries and international organizations highlight this issue, it looks that Serbian Government chooses the different approach and sets up all actions in the area of providing external assistance to reach rural population once a disaster strikes, and organization of a system which is mostly devoted for the post disaster recovery.
33
Public Enterprise “Srbijašume”. 2015. Annual Report:
http://www.srbijasume.rs/pdf/GodProg2015.pdf/.
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Developed countries like the United States of America (USA) made a lot of efforts to create adequate policy options for a changing rural America, and even the president Barrack Obama is involved in that action. He stated: “Strong rural communities are keys to a stronger America. That’s why I have established the White House Rural Council to make sure we’re working across government to strengthen rural communities and promote economic growth”. He has taken significant steps to improve lives of rural Americans and has provided a broad support for rural communities34. In Australia and New Zealand this topic is exploited in numerous ways. In 2000 the First National Conference on the Future of Australia`s Country Towns is organized.35 Also, in many countries all over the world specific researches were conducted how to improve the life of the population in rural areas, especially in the area mostly jeopardized by different kind of disasters (China, Indonesia, Malawi, and etc). Some of them are available on the webpage of the most important global platform created as a project of the United Nation’s Office for Disaster Risk reduction (UNISDR)36. Based on all presented facts in the study, it is obvious that the future plans regarding rural development could be more holistic having in mind the specific security circumstances in those areas. Therefore the issue of rural emergency management and the challenges facing rural communities should be set up as a specific topic for Emergency Management Sector as well for other stakeholder. Considering the events described in this study, the most important role in the area of protection of forest ecosystems is of actors which is recognized in laws on power and existing organizations in the Republic of Serbia. It would be useful for all of them to explain in the public how they would handle the challenges of emergency management in Serbian rural communities which for example in the USA are categorized into four
34
President Executive Order 13575. White House: https://www.whitehouse.gov/the-press-
office/2011/06/09/executive-order-13575-establishment-white-house-rural-council/. 35 36
The Regional Institute: www.regional.org.au/countrytowns/keynote/keller.htm/. PreventionWeb – serving the information needs of the disaster reduction community:
http://www.preventionweb.net/english/. PreventionWeb – serving the information needs of the disaster reduction community: http://www.preventionweb.net/search/pw#query=rural+&hits=20&sortby=default&view=pw
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major themes (exactly the same like those important for the rural population in Serbia)37: Resource limitation; Separation and remoteness; Low population density and Communication, When disaster strikes the first response is the most important and therefore scarcity of human resources is one of the most serious issue in rural communities. Nevertheless, the conducted studies found only 20% to 30% of villagers are confident that they have the ability to protect themselves and their family members in a disaster38. For improvement of capacity of the rural community it is very important to work on development of human resources. Since education and training opportunities in rural areas are limited, it could be useful to accept the positive practice and established specific institutions in some of the universities, as in the USA. That Institute for Rural Emergency Management could be useful as an outreach center focused on the emergency management needs of rural Serbia, which are different from the needs of urban communities. That institution could be able to provide students, deliver training workshops and exercise on topics like: Rural Disaster Preparedness and Response and Planning for Transportation in Rural areas, because current system is characterized with high cost of engagement of first responders, service delivery, operations and maintenance of infrastructure in emergencies. In Eastern Serbia during the above-described event transportation network was not function properly. Aging population is exposed by nature to different health risks and they are not able to commute and seek for help kilometers away from their home. Hence, this part of contingency plan should be considered more carefully after all. It is unreasonable that in media every case of help to jeopardized people is presented like a heroic act even it is clear that first responders are obliged by numerous laws and Serbian Constitution Act to protect the life, health and property of citizens in every place in the Republic of Serbia.
37
Bryant, D. Challenges in rural emergency communication.
http://www.homeland1.com/disater-preparedness/articled/480917-Challemges-ruralemergency-management/. 38
Training
Manual
on
Health
and
Disaster
Preparedness
in
Rural
china:
http://ccouc.org/_asset/file/public-health-manual-eng-small.pdf/.
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In the Republic of Serbia many tasks regarding development of rural areas stayed without implantation in reality. Competent authorities have the intention to maintain the population base, improve farm job opportunities, and provide public services. They also want to strengthen human and institutional capacities and regulatory policies in rural areas. They have plans for infrastructure improvement as to establish the National Investment Plan - building the regional infrastructure for the purpose of rural development, e.g. roads, electricity, networks, water systems, flood protection systems. Unfortunately, sometimes the finance provided from that plan jeopardized forest ecosystem on numerous way, and the political game among different parties to keep the power contribute to that. That event happened in the Nature Park “Stara Planina” where a ski resort is built despite all the legal regulations and warnings of competent institutions and experts that this action will deteriorate flora and fauna in Nature Park in a long term39. In the area of protection of forest ecosystems the most important is the role of public enterprise “Srbijašume”. Because if the above-analyzed disaster in Eastern Serbia they created and started to realize an Action plan of sanitation of damaged forests in state and private possessions for the period 2015-2018 in total value of 64 million Serbian dinars40.
CONCLUSION A large part of Eastern Serbia was affected by the so far the most serious ice storm in the history in terms of affected area as well as quantity of damaged trees (more than 1600000 trees). The severity of damages may be reduced by implementing adequate renovation measures in forest ecosystems. The experts should be engaged in the next years to seize for more ice storm resistant tree population because in the future the frequency of this events will increase. The impact of ice storm can be minimized trough planning, tree selection, and tree maintenance. Where severe ice storms occur, disaster plans should be developed to assist in recovery. Joint efforts of stakeholders in the future will undoubtedly reduce monetary losses in Serbian forest, damage of forest ecosystem, and cleanup costs in rural communities in regions 39
Serbian association for Conservation and sustainable development of the Stara Planina
Nature Park. Save Park of Nature Stara Planina from wild tourism development: http://www.thepetitionsite.com/1/save-staraplanina-petition/?page=76/. 40
Odluka
nadzornnog
odbora
31/2015-2
in
11
http://www.srbijasume.rs/pdf/Akcioni plan sanacije 2015--2018.pdf/.
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2015:
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where extreme weather event occur. At the same time, it will require all available assistance and support to the management of Nature Park “Stara planina”, and Public Enterprise “Srbijašume” to cope with the consequences of this and similar extreme weather events. The consequences of the global climate change, extreme weather and climatic events in global community, analyzed through the example of the Republic of Serbia, could have a great impact on the planned implementation of sustainable rural development. Among the policy makers should be the understanding that “revitalizing rural area” must include the participation of rural communities in search of their partnership in the broadest scope. They have to educate and train local people to be more able to put into practice their planned activities for securing adequate responses to possible emergencies. Capacity building, therefore, deals mostly with the ability of local people to try solving problems. These actions seek to bring within rural communities a feeling of partnership in emergency management business, and the articulation of a joint vision.
Acknowledgments This paper is produced as a part of the Project “Modulation of Antioxidative Metabolism in Plants for Improvement of Plant Abiotic Stress Tolerance and Identification of New Biomarkers for Application in Remediation and Monitoring of Degraded Biotopes”, coded III 43010, financed by the Serbian Ministry of Science and Education, and technological development.
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First International Scientific Conference SUSTAINABILITY CHALLENGES IN MODERN ORGANIZATIONS Knowledge & Innovation in Management & Operation
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