BULGARIA
 

Statement

by

H.E. Mrs. Christina Christova
Deputy Minister for Labour and Social Policy

at the
Second World Assembly on Ageing

Madrid, Spain
8th-12th April 2002




Dear Mr./Ms. President,
Excellencies,
Delegates,

I would like to thank you for the opportunity to address on behalf of the Government of the Republic of Bulgaria this competent world audience which has been discussing for a week now the exceptionally important problem - the ageing of the population.

Bulgaria is not an exception to the general trend, especially when we have in mind the birth rate decrease in the last years as well as the increase of the emigration of mainly young people.

According to the last census of 2001 the population of Bulgaria is approximately eight million persons (7 977 646). In comparison with the previous census of 1992 there is a decrease by 510 000 persons. This unfavourable tendency is accompanied by changes in the age structure of population towards ageing. The children under eighteen years of age are 19.5%. The population between eighteen and sixty-six years of age is 63.4%. For less than a decade the number of people above 65 years of age has increased by 150 000.

In Bulgaria there is a constant decrease of the share of population under 14 years of age, which is one of the highest on the Balkans - around 15%. On the other hand, there is a continuous increase of the ageing population. These processes develop further and, in the next decades, the prognosis is that the elderly will be the greatest part of the population. The changes in the age structure influence both the rural and the urban population.

The aging affects all spheres of the economic and social life: health care, employment, labour market, social protection and economic growth. In transition countries like Bulgaria this process is accompanied by a decrease of the income and the financial resources of population, which requires a special adaptation of the policy and measures for the improvement of the life style of the elderly. This policy should encourage social integration of ageing persons and their active participation in the economic and public life and initiatives for the strengthening of the generation solidarity for the prevention of eventual social and economic tension and the burden over family. Special attention and efforts should be aimed towards elderly people living in the rural areas.

A profound pension reform started successfully in Bulgaria in 2000. The pension insurance system in Bulgaria is comprehensive and obligatory for all employed and selfemployed persons. Pension insurance is an important factor for the prevention of poverty according to the World Bank study of 2002.

The idea of a three pillar pension system is implemented in Bulgaria by virtue of the Compulsory Social Security Code and the Supplementary Voluntary Pension Insurance Act. The major objective of the pension reform is the gradual increase of pensions and their alignment with the insurance contributions. The increase of the social expenses necessary for the implementation of this objective is guaranteed in two directions: a change of parameters and criteria for access to pension insurance /the length of insurance period and age are increased/ and introduction of supplementary pension insurance system. Different normative acts were adopted in the following years dealing with this sphere and further developing the system as a whole.

At the moment there are nine pension insurance companies registered in Bulgaria. The State Agency for Insurance Supervision and the Council for supplementary social insurance were created to control the supplementary pension insurance activities. So it can be assumed that in Bulgaria the system of supplementary pension insurance is institutionally developed in its two parts - compulsory and voluntary social insurance.

The elaboration of a Strategy and an Action Plan for a reform of the social services system is underway, following the socio-economic changes in the country and the EU requirements and member-states best practices.

The Strategy aims to create a new philosophy of providing social services and to ensure the transition from an institutionalised care towards community based services. State standards for care and services will be implemented to guarantee life quality and personal dignity. The commitments and responsibilities of the state and municipalities as well as the mechanisms for cooperation with NGO sector in social services provision for elderly people will be specified.

We have good traditions in home care services in Bulgaria so they will further be developed.

The analysis of the Bulgarian legislation confirms that there is no age limit for access to formal and non-formal education and training. The newly adopted Act on Employment Promotion stimulates to a maximum extent the training of unemployed and employed persons with regard to life-long rising of their qualification. On a national level the policy of life-long learning is implemented in cooperation with the state institutions and trade unions, employers and non-governmental organizations.

Due to the complex and manifold nature of the problems stemming from ageing of population as well as the necessity for improving the national policy towards elderly, a working group was established within the Ministry of Labour and Social Policy with representatives of the governmental and non-governmental sector, researchers and medical specialists and elderly people themselves. An examination of the best practices of EU member-states in this sphere and an analysis on the United Nation strategy and policies on elderly people was done. The national report on the policy of Bulgaria towards elderly people is under elaboration in accordance with the commitments of the Vienna Action Plan. The report covers all aspects of social policy like social insurance of old people, possibilities of employment, life-long learning, health care and social services, culture and recreation activities, relations between generations, challenges to the national economy resulting from the negative demographic trends. The elaboration of a National Action Plan for improvement of the policy towards elderly people is forthcoming.

The Second World Assembly on Ageing and the European conference in Berlin on this subject, which will take place this autumn, activated the sensitivity of the public. As a participant in these international fora Bulgaria will search for partners for solving these problems. Bulgaria is ready to be included in a net for exchange of information and experience on problems related to ageing and its socio-economic results.

To conclude, let me join the appeal contained in the Plan of Action to the International Financial Institutions and Banks for Development to support developing countries and countries in transition to market economy, such as Bulgaria, in their efforts to confront the consequences of the multifaceted problems related to ageing. I consider the problems are starting to rapidly multiply, that is why we cannot wait for another 20 years to meet and exchange views and experience in that field. We must annually strike the balance of our efforts, while the efforts are to be undertaken on a daily basis.

Thank you for your attention.