Private or Market Economy in Bulgaria? An Institutional Approach to the Bulgarian Transition

The transition to a market economy in Bulgaria is a complex process that requires the privatisation of the economy. But, privatisation is not enough. Transition means a deep institutional change that has to do with the transformation of the behaviour economic agents. This article analyses the Bulgarian transformation from an institutionalism approach, focusing in the transformation developed in the sphere of means of production. The analytic framework presented allows evaluating the degree of installation of market relations in this sphere. In Bulgaria, a breakdown exists between the installation of formal market institutions and the creation of market relationships in this sphere, which have been developed not completely.