Spotlight Interviews with Co-operators
Interview with Tsvetelina Marinova, Associate Professor of Economics, New Bulgarian University
“Spotlight Interviews with Co-operators” is a series of interviews with co-operators from around the world with whom ILO officials have crossed paths during the course of their work on cooperatives and the wider social and solidarity economy (SSE). On this occasion, the ILO interviewed Tsvetelina Marinova, Associate Professor of Economics of New Bulgarian University.
23 July 2025
Could you tell us about your background and what led you to work in the field of cooperatives and the wider social and solidarity economy (SSE)?
I am an associate professor of economics at the New Bulgarian University in Sofia and an associate researcher at the Paul Bairoch Institute of Economic History (IHEPB) at the University of Geneva, as well as at the Laboratory for Economics, Finance, Management and Innovation (LEFMI) at the University of Picardie Jules Verne, France.
My research interest in cooperatives and the broader SSE was triggered more than ten years ago when I was writing my PhD thesis and started working for the UNDP in Sofia.
Initially, I did archival studies on the emergence and evolution of agricultural credit cooperatives and popular banks in Bulgaria. From the beginning of the twentieth century till the Second World War the cooperative movement proliferated in the country which has not been the case in the transition period from socialist to capitalist economy since 1989. I explored the modern development of the cooperatives and the broader SSE, their driving forces and challenges.
I believe that the cooperatives and other SSE entities can play a major role in building a sustainable and inclusive economy. Moreover, knowledge, education and research are indispensable in creating a human economy.
What is the current state of the SSE in Bulgaria, and how have cooperatives contributed to promoting decent work and social inclusion in Bulgaria?
In 1989, the state embarked on a rapid application of the principles of market economy and private property through price liberalization and privatization. This trend was further accentuated after the 1996–1997 financial and economic crisis, which was followed by the orthodox monetary policy and the conservative fiscal policy of the currency board. Weak institutions, multiple crises and the collapse of the welfare state were among the main incentives for the emergence and development of civil society and new organizations of the social economy (associations, foundations, social enterprises).
The main external factor that favours the development of the SSE has been the accession of Bulgaria to the EU, which is associated with the setting of new economic priorities and the development of social policies, as well as opportunities for support and financing of the economy and the sector from EU funds and programmes.
For Bulgaria, the development of the SSE is of utmost importance in the context of deepening socio-economic problems, primarily related to job creation, high levels of poverty, social isolation and income inequality, the high share of the population under the poverty line as well as achieving the goals of the green and digital transition.
Regardless of the adoption of the Act on Cooperatives (1999; 2018), the Law on the Integration of Persons with Disabilities (2004; 2018), the national concept on the SSE in 2012, the Act on Non-Profit Legal Entities (2000) and the Social and Solidarity-Based Enterprises Act (2018), the SSE is still an emerging but dynamically developing sector, especially after the outbreak of the global financial crisis of 2008.
Today in Bulgaria, many people still consider cooperatives as socialist organizations, incompatible with the market and capitalist economy. The centuries long tradition of financial and multi-service cooperatives was interrupted, mainly due to the path dependence, unfavourable legal environment and the lack of relevant ecosystem. As for agricultural cooperatives, they mostly operate as traditional businesses. However, cooperatives and enterprises of persons with disabilities play an important role in the society. Their mission is related to the creation of opportunities for integration and reintegration of persons with disabilities by investing in the professional and personal development as well as organising training courses, qualification and retraining of management and executive personnel with diverse activities such as tailoring and knitwear, bookbinding, cardboard and packaging, production of plastic products, etc.
The available data on the SSE in Bulgaria are incomplete and inaccurate. The data provided by the Ministry of Labour and Social Policy and the National Statistical institute reveal that the gross value added of the SSE to the national economy was 0.3 per cent in 2019. The total employment in the sector was estimated at 1 per cent of the working population. Nevertheless, the National Development Program Bulgaria 2030 (updated in 2020) sets the target of it reaching 3 per cent of the GDP by 2030.
What are some of the main challenges SSE entities face in Bulgaria today, particularly in terms of policy or legal frameworks?
The institutionalization of the SSE has been a priority for the Bulgarian governments in recent years. Nevertheless, a lot of work is still to be done to create a favorable ecosystem for SSE entities.
First, the definition and the range of SSE entities need to be expanded to cover a variety of social and environmental topics to reflect the existing practices and features of the sector in the country. There is also the need to simplify the process of registration process in the Register of Social Enterprises, ensuring that all specialized enterprises and cooperatives of persons with disabilities —already registered under the Law for Persons with Disabilities—are automatically included in the Register of Social Enterprises maintained by the Ministry of Labour and Social Policy. Furthermore, the methodology for the evaluation of the social added value should include indicators that measure social impact based on Sustainable Development Goals.
Second, legislative changes and measures are needed for the establishment of a favourable environment for financing the SSE at national, regional and local level. These can include the development of cooperative banks and ethical banks as well as the study of legislation and good practices related to alternative methods and forms of funding such as complementary money, the issuance of social bonds, microfinance, etc.
Third, the availability of appropriate data and statistics is crucial for SSE development. This can be achieved through the preparation and conduct of responsible, comparative and interdisciplinary scientific and applied research on the SSE with the participation of all stakeholders (researchers and representatives of the academic community, non-governmental organizations, businesses, government and citizens).
Could you share an example of an SSE initiative in Bulgaria that has had a meaningful impact on a local community or marginalized group?
Cooperative Chernomorka Burgas was established in 1950 by war invalids. Located in southeastern Bulgaria on the Black Sea coast, Burgas has a population of over 198,000 and one of the country’s lowest unemployment rates. Since its creation the main goal of the cooperative has been to provide jobs to persons with disabilities from Burgas and the region. It produces babies’ and children’s clothes for 0 to 8-year olds. The cooperative uses 100 per cent natural materials, ecologically clean, easy to wear and resilient. Chernomorka Cooperative also provides bookbinding services.
Since its establishment, the cooperative has provided employment and decent work conditions to persons with disabilities and other vulnerable groups in the city. It currently employs 27 full-time staff, of whom 80 per cent are women and 57 per cent are persons with disabilities. Cooperative Chernomorka was awarded with Gold Medals in 2004, 2006, 2008 and 2010 at the International Fair of Consumer Goods and Technologies in Plovdiv, Bulgaria. It obtained the Annual Social Innovation Award by the Ministry of Labour and Social Policy in 2015.
In your view, how can the ILO best support the development and recognition of the SSE in Bulgaria?
Given that the ILO encourages and facilitates social dialogue in formulating SSE policies worldwide, it can support the development of the SSE through various means, including policy advice, education and training and improving access to finance.
Regarding the policy and legal framework, the ILO can provide advice on designing and implementing policies and laws related to social security, financial inclusion and occupational safety and health in the cooperatives and the broader SSE.
The ILO research, knowledge and best practices on cooperatives and the broader SSE can be helpful in education, training and capacity building on national and local level to promote the emergence and enhance the sustainability of cooperatives and other SSE entities. This can be done through the six regional centres on the SSE (SSE focus points) recently established by the Ministry of Labour and Social Policy, which aim at encouraging the creation of networks and conducting trainings, initiatives and partnerships to include cooperators and social entrepreneurs in social and civil dialogue with institutions, local authorities and communities.
The ILO expertise can be transferred to improve the access to finance for SSE entities by promoting microfinance and microinsurance schemes, the involvement of the Bulgarian development bank in SSE funding as well as integrating the SSE into digital financial strategies and platforms.
What is your message to young people and policymakers interested in advancing SSE in Bulgaria and beyond?
My message to young people is to be more curious and motivated to enrol in education and training programmes on cooperatives and the broader SSE and to mobilise their knowledge, creativity and energy in developing innovative and collective projects and initiatives with economic, social and ecological impact to adequately deal with the continuous challenges and crises in the economy.
Policymakers need to deepen cooperation with civil society organizations, traditional businesses and people in academia to elaborate a clear long-term vision for economic and social transformation based on strong commitment and actions in the SSE to ensure sustainable growth and shared prosperity.
The views expressed in this interview are those of the interviewee and do not necessarily reflect the official position or policies of the International Labour Organization.