Credit and Forestry Cooperatives in Bulgaria: Historical Development, Economic Rule and Legal Framework and their Contribution to Sustainable Development of Rural and Forestry Regions
Todor Stoyanov *
Forest Research Institute – Bulgarian Academy of Sciences, 132, “Saint Kliment Ohridski” Blvd., 1756, Sofia, Bulgaria.
*Author to whom correspondence should be addressed.
Abstract
This study examines the emergence, development and contemporary role of credit cooperatives in Bulgaria, focusing on their contribution to the sustainable development of rural and forest areas.
For the analysis, there are used the literature on the subject, the legal acts of the Republic of Bulgaria regulating the activity of credit co-operatives, the European legislation, regulations in the research area, data from the National Statistical Institute and from different Bulgarian Ministries, reports and materials of the World Council of Credit Unions (WOCCU).
A brief historical overview of the cooperative movement in the world, Europe and Bulgaria is provided.
In Bulgaria, according to statistics from 1944 over 76% of all co-operatives in the country fell into the category rural credit cooperatives.
The period 1948–1989 characterize cooperatives by the loss of their independence and by their institutional survival and their role as providers of social functions under the conditions of a planned economy.
After the 1990 there established in Bulgaria 33 rural credit cooperatives with a focus on microfinance with the support of EU. In the field of forestry was formed only 44 forest cooperatives, 38 of which are in the Rhodopes, region Smolyan. The share of private forests managed by forestry cooperatives is very small and according the legislation they cannot fulfil saving and credit activities.
In conclusion, cooperatives must consider as a modern and democratic tool for sustainable resource management, social solidarity and economic empowerment of marginalized communities. In the face of growing challenges to forestry – fires, erosion, climate change – the co-operative model offers a long-term solution based on collaboration, local knowledge and shared responsibility.
Forest owners in Bulgaria must be assisted in development the necessary changes in legislation and in the formation of new forestry cooperatives in regions with a large share of private forests.
Keywords: Credit cooperatives, cooperative movement, forestry, microfinance, rural areas, legislation