The Transition
That Never HappenedAt Least Not The Way That Was Recommended

Interviews

Mark Bloomfield

In 1990 Mark Bloomfield was President of the American Council for Capital Formation, a nonpartisan, business-backed, non-governmental organization that advocates and engages economic education and research on growth economic policies. He still holds the same position today.

Q: I understand that you lived for a time in Bulgaria, while your father was a U.S. diplomat. Did that experience influence you in wanting to be a part of the Transition project and if so, how and in what way?

A: I definitely did, because I had very fond memories of Bulgaria, it is a beautiful country, great history and great potential. So, given my background in politics and economics, I welcomed the opportunity. I was lucky because one of my closest friends is Richard Rahn.

Q: How did you get involved in the project and what was your role?

A: I think Richard just approached me and it was sort of natural, because I spent some time in Bulgaria and followed the history a little bit. I think my role was backing up Richard in general terms, but I was also involved in the tax component, because that’s where we spend a lot of time in my organization.

Q: You have continued to be involved in Bulgaria since your time with the transition. Why and what have you done in Bulgaria in the years since the transition?

A: Well, I was very intrigued by the transition but there was also a personal story. In the course of my visits I met my wife who was a French expat in Bulgaria. So I was involved personally, but I was also very intrigued professionally in what was happening in Bulgaria.

Q: What conditions did you find in Bulgaria when the project started?

A: It was a poor country emerging from a dictatorship and it faced transitions in politics, civil society and the economy.

Q: What was your role in tax reform?

A: Taxes is a key government policy and what I did, with the help of others, was to identify Dr. Charles McLure, who was one of the leading scholars employed by all international organizations to reform the tax system. I remember visiting with the existing finance minister, just asking fundamental questions like “what is your tax system and how is it working”? It was very difficult to find out, because there was no free market to determine profit and loss. But it was a very compelling experience.

Q: Were you involved at all in providing any advice in terms of the political side of things?

A: I was, and ironically it was with with both the regime of Andrey Lukanov, who was trying to turn an old communist party into a social-democrat socialist party and at the same time with the SDS, which was the emerging democratic party. Unlike other countries where they have a long history of dissent, this was a new experience for them and it involved basic things like how you set up political parties, election reform, the role of mediating among various interest groups….

Q: What happened when the Report was prepared?

A: Well, after the Report was prepared we continued the fascinating story of the Bulgarian transition. I would go to Bulgaria on a personal relationship, because of my wife, but would also engage with, whether it be the Slavy show on TV, or whether meeting political leaders or civic leaders, encouraging the progress along the lines of our report but primarily political, civic society and economy.

Q: At the time when the Report was finalized, did you feel that it would be implemented by the Bulgarian government?

A: I think there was to a large extent chaos and I think it was very much unknown. I felt very good because it was at least a benchmark and outline of what needed to be done. I think it was a miracle in some way that Bulgaria was able to go from the bottom to a European country. My major concern, then and now, as I was involved in advising various people, is the rule of law. I think that is still troublesome, because unless you have a rule of law your political reform and your economic reform will suffer.

Q: What relationship did you have with the Bulgarian government and the opposition in Bulgaria?

A: I think it started on a professional basis during the Report but subsequently I would travel to Bulgaria almost every year and would renew those friendships. I think I was both a formal advisor and friend, whether it be to the SDS or to the Socialist party or other emerging institutions and business organizations.

Q: What about your access to information. Were you provided with the necessary information to work with?

A: I think that’s always suspect. Obviously the government gave us what they think it was in their interest and there was a backup from the opposition, so yes, we had information, but quite frankly some of the needed information simply did not exist.

Q: Can you tell us one of the more memorable stories that happened in Bulgaria?

A: My last day in Bulgaria in 1962 as a child- the night we left, a gentleman who actually lived above us and obviously was an employee of the security services, came to us in the middle of the night and said – I hope that someday my child and your son (he was talking to my father), can meet in the open and can have a good future together.