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Mr. Fritz, this is USAID’s last year in Bulgaria. Why are you leaving the country?

Michael Fritz:

First let me explain that this it is not exactly our last year in Bulgaria. Most of our projects will close this year, in 2007. The Mission itself will shut down in the fall of 2008.  And I am pleased to note that through some new funding mechanisms, limited USAID funding will continue to be available for local Bulgarian organizations after we leave.

What were your aims here? What have you managed to achieve?

Michael Fritz:

What we have achieved is really about what Bulgaria has achieved. We have pursued a wide variety of programs, but the fundamental aims have been the same—to support Bulgaria’s transition to a market economy and a democracy. Working in close cooperation with our Bulgarian partners, we have assisted with developing private businesses, improving local democratic governance, supporting reform of the rule of law, building human capacity, and addressing the needs of vulnerable populations.  Your readers can also see our website, http://bulgaria.usaid.gov , for more information about our work.

Is there something that you haven’t achieved yet? Is there anything unfinished?

Michael Fritz:

There is always room for improvement and reform. To compete effectively for foreign investment and sustain economic growth, Bulgaria has to make a rapid transition to a more knowledge- and people-based economy. This requires a significant investment in the development of workforce capital. Bulgaria needs to continue its painstaking effort to improve the environment against corruption. The rules and practices in every branch of government must be reviewed, addressed and updated. There needs to be more high-level investigations, trials, convictions. Bulgaria, as a government, needs to demonstrate its political will and courage to oppose corruption and organized crime and Bulgaria, as a people, needs to make it known that it will not tolerate corruption in its institutions or organized crime in its communities.  As always there are initiatives that didn’t succeed as much as we would have liked.  One of these is our $22 million investment in Environmental programs. These were quite successful in the early years, but currently there seems to be little interest in preserving the gains that were made. We as a donor can help, but the driving force for change must come from the Bulgarian people and their government officials. Looking back on the incredible accomplishments of Bulgarians over the last 15 years, I am confident they can and will continue to meet these challenges.

How many projects have you implemented in Bulgaria?

Michael Fritz:

We estimate that we have implemented more than 250 full programs, and more than 1,000 individual projects, because many of our programs have included small grants to local organizations to conduct their own projects.   

Which of your projects in Bulgaria do you estimate as most successful? Please, give us examples.

Michael Fritz:

We are proud of many of our achievements. I’d like to give you just a few examples of what we consider our most successful and lasting legacies: The American University in Bulgaria and the National Institute of Justice are two of the most important.  Additionally, USAID helped to establish the National Association of Municipalities and other influential local organizations.  We have helped to train and educate many of Bulgaria’s future leaders and improve the business environment.   We supported the government’s efforts to create a secure pension system that combines public and private involvement.  Our microfinance program has helped people to start and sustain new businesses and create new jobs.  We helped launch a network of 24 career centers in universities throughout the country. We helped facilitate the reform establishing the profession of private enforcement agents.  

Now much money has USAID invested in the country during your activities here?

Michael Fritz:

The American people, through USAID, have invested more than $600 million.

USAID is working in the area of institutional development. What is your opinion about the Bulgarian institutions? Do they help the Bulgarian business? Are they more transparent and responsible now?

Michael Fritz:

The Bulgarian institutions have substantially improved their performance in the recent years. We have been working with many of the key institutions in Bulgaria.  For instance, we supported the State Energy and Water Regulatory Commission, the National Audit Office, and the Public Procurement Agency.  These are just a few examples.  I am proud to say that today they function more transparently and competently. However, a lot remains to be done.  Corruption is still an issue; we hear reports on mismanagement of public funds.  I hope that institutions in Bulgaria will build on our common achievements to continue to serve as modern, transparent and effective bodies, supporting a open and fair business and investment environment in Bulgaria.  As an EU Member, Bulgaria needs strong institutions, capable to manage and absorb EU funds.

In addition to USAID work with public institutions, we have been involved in supporting institutional development for the business sector and for civil society organizations.  Through our training program, more than 3,000 people were exposed to international best practices in various fields, including civic advocacy and business.  USAID has provided funding and training for non-governmental organizations to help them become stronger advocates for change in society.  

USAID technical assistance has targeted business at both the firm and industry level to improve efficiency and competitiveness.  The Authentic Bulgaria Quality Mark is an example of one of our recent initiatives to build capacity in a certain industry, in this case tourism. We have also worked on strengthening the capacity of local business support organizations to provide sustainable, market-oriented solutions for their small-business clients.  

What do you think about the Bulgarian judicial system? Is the end of the judicial reform close?

Michael Fritz:

The judicial system in any country is conservative because it is a guardian of stability in society. This relative conservatism is both its biggest virtue and its most significant challenge. Change in the judiciary is therefore hard and its pace is slower that the pace of change in most other areas. I have seen a lot of positive developments in the last years; and I hope more will follow.

It is difficult to speak about the end of judicial reform; a system like this will always be undergoing development to meet the challenges of a dynamic environment. Yet, in my opinion, the painful, dramatic reforms will have succeeded when we are able to notice a substantial improvement in the public perception of Bulgaria’s judiciary.  Unfortunately, the Bulgarian public does not yet have sufficient confidence in its judiciary. I think that this perception will change when citizens see that criminal figures, that have become household names, are finally behind bars.

Should the local authorities and the municipalities get more independence from the central authorities in the country?

Michael Fritz:

USAID has been providing considerable technical assistance to all key stakeholders since Bulgaria’s decentralization reform started in 2001– MPs, ministries, municipalities. Decentralization is built on the premise that  by making local government accountable and responsible to its citizens it will be more effective and transparent.  The current government has adopted a far-reaching decentralization strategy and action plan with clear targets for various legislative and administrative actions. The recently adopted constitutional amendment allowing local governments to set local tax rates represents a great achievement and critical step towards increasing municipal fiscal autonomy. In order to implement this constitutional provision, there needs to be a new Local Taxes and Fees Act. The USAID Local Government Initiative is committed to support Bulgarian policy-makers at the central and local level in their efforts to draft a modern and enforceable act by the end of June 2007. 

In which countries is USAID going to work in the future?

Michael Fritz:

The USAID Missions in Romania and Croatia will close at the same time as the USAID Mission in Bulgaria. USAID will continue working in other countries of southeastern Europe and Eurasia, as well as in many countries in Africa, Asia, and Latin America.