Introduction

This introduction sets the stage for the book-monograph Bulgaria in the Global Economy: Dynamics, Challenges, and Opportunities by examining the broader global trends shaping economic policies and strategic choices. The twenty-first-century global economy is characterized by both deepening interdependence and rising fragmentation, influenced by geopolitical shifts, digitalization, and sustainability imperatives. These dynamics create both opportunities and risks, especially for smaller economies like Bulgaria that must strike a balance between integration and strategic autonomy. Bulgaria’s economic evolution has been shaped by shifting economic models, from Soviet-style central planning to rapid liberalization during the years of systemic transformation and European Union integration. This monograph argues that neither extreme, centralized state control nor unregulated market openness has adequately addressed Bulgaria’s economic development challenges. Instead, a strategic approach that balances global participation with domestic capabilities is essential for sustainable growth. The book provides a comprehensive analysis of Bulgaria’s macroeconomic foundations, trade relations, production factor flows, and participation in regional economic networks and global value chains. It critically evaluates past economic transitions while offering forward-looking insights on digitalization and sustainability, emphasizing the role of institutional reforms in ensuring long-term resilience. By highlighting both challenges and opportunities, the book offers valuable lessons for other small economies grappling with rapid global transformations and the need for adaptive policymaking.