Stara Zagora's new groove

Stara Zagora region is centre of the luthier manufacturing in Bulgaria

Stara Zagora's new groove

From industry to operas and luthiers, the region has the best economic growth potential in Bulgaria

Stara Zagora region is centre of the luthier manufacturing in Bulgaria

© Nadezhda Chipeva


Stara Zagora is a peculiar region. On the one hand, it's Bulgaria's champion in terms of value-added growth. Wages are second only to Sofia, unemployment is low, infrastructure is good and students regularly score higher than the national average in-state exams.

On the other hand, with a few exceptions, there have barely been any new investors in the region. Moreover, over the last three years, total investment in Stara Zagora has been decreasing, contrary to the general trend and economic activity in the country. According to the mayor of Stara Zagora, Zhivko Todorov, two obstacles lie behind this - a lack of suitable industrial space and a shortage of workers.

Municipalities have been waking up to the need for industrial space in the past few years, with each one now looking to launch its own hub. In Central Bulgaria specifically, Stara Zagora, Kazanlak, Sliven and Yambol are already progressing with their plans. This is good news, as long as these don't dissolve into the typical bureaucratic ideas that usually accompany similar initiatives. Bulgaria's economic revival hinges on production, not warehouses.

The second issue is more interesting.

People? You can have them

The labour shortage is now a structural problem for the Bulgarian economy. Moreover, it's getting worse - the mid-90s generation is entering the labour market and their demographics are not looking so good. However, Stara Zagora cannot use that as an excuse.

Firstly, although the industrial sector can be affected, the quantity of labour at hand in the province is not a challenge for any medium-sized or large investor. Secondly, the region should be able to attract young people from all over the country considering its central location and economic potential. Its inability to do so is an issue that should be addressed by the local government. Thirdly, at this point, it is clear that every Bulgarian city's future will be determined by how successfully it will be able to attract human resources and not by the number of European funds it can absorb. In this race, Stara Zagora has a very good head start.

Lately, everyone has been looking at the booming IT sector with envy, including the city mayor Todorov. There is nothing wrong with wishing to be the next tech hub but it would be better to focus on more achievable goals.

For example, Stara Zagora has the only veterinary university in the country, in addition to housing one of Bulgaria's several medical institutions. These are highly specialized niche markets which can attract capital, and Stara Zagora is neglecting the chance to foster a galaxy of connected businesses and services around them.

Similarly, the nearby town of Kazanlak is home to two boutique sectors - the production of rose-based products and the luthier industry. Both have untapped potential and because of their peculiarities, they have the ability to give the whole region a new image - the home of the rose and the violin has a nice ring to it. Better than the house of coal at least.

Big hopes ahead

These are opportunities which the region cannot afford to ignore if it wants to prosper. Roads and well-equipped schools are important, but they also need students to occupy them. And that demands looking at long-term prospects, rather than the current political term of office. Rather than politicians, a better example would be 83-year-old Maria Zhekova, who donated a house worth 1 million levs to be transformed into a centre for young talent.

2019 is a year of elections in Bulgaria and Europe. But Stara Zagora's most important decisions will not be related to MEP's or even a new mayor. They concern the future, and they will be made every day from now on.

Stara Zagora is a peculiar region. On the one hand, it's Bulgaria's champion in terms of value-added growth. Wages are second only to Sofia, unemployment is low, infrastructure is good and students regularly score higher than the national average in-state exams.

On the other hand, with a few exceptions, there have barely been any new investors in the region. Moreover, over the last three years, total investment in Stara Zagora has been decreasing, contrary to the general trend and economic activity in the country. According to the mayor of Stara Zagora, Zhivko Todorov, two obstacles lie behind this - a lack of suitable industrial space and a shortage of workers.

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