The Bulgarian International Business Association (BIBA) is a non-governmental organisation that strives to represent the foreign investor community in its relations with the Bulgarian government. Supported by its highly reputed members, the organisation has contributed greatly to the positive economic developments in the country.

The BIBA came into being in 1992, roughly the time when Bulgaria started its transition to a market economy, and opened up to foreign investment. The founding members of the BIBA, British Gas, Rank Xerox, Shell, Pricewaterhouse, ITT Sheraton, International Computers Ltd., and the Bulgarian-American Enterprise Fund, were among the first foreign companies who sought to do business in Bulgaria. As of today, BIBA's membership has reached 150 and these numbers are estimated to have contributed to roughly 70 per cent of the total value of foreign investments in Bulgaria between 1992 and 2000.

Over the years, the group has exerted influence on Bulgarian authorities by convening regular meetings with key government figures, and by providing state institutions with its analyses and proposals. The meetings are conducted on two levels: monthly-general - where the guest speaker makes a presentation followed by a question and answer session, and committee - where government representatives meet with the experts of BIBA to discuss very specific issues. The White Paper on Foreign Investment is the most influential and comprehensive analytical material prepared by the BIBA annually.

"For our monthly general meetings, we invite speakers that could provide BIBA members with timely and precise information of interest," said Nikolay Babev, executive director of the BIBA.

This policy was finely illustrated by a meeting with Levon Hampartsoumian, head of the Privatisation Agency (PA) this January. The presentation by Hampartsoumian was his first public appearance after his appointment. During the meeting, he informed the foreign investor community of the changes that would be introduced in the agency, as well as the latest amendments to the privatisation law.

"The meeting with Mr Hampartsoumian was very successful," said Babev. "In response to the corruption concerns voiced by our members, he promised that a public register of privatisation deals would be set up. And we are now hearing that the PA is soon to complete the project."

The BIBA has seven committees geared around key business areas - tax and duties, banking, personnel management, privatisation, trade and distribution, industrial, and information technology. The committees sit on a regular basis and hold extraordinary sessions, where the need arises, to analyse various legislative issues, identify problems of common concern, or formulate BIBA official statements.

"We are especially proud of the achievements of the Tax and Duties Committee. The comprehensive reform of the tax administration in the second half of 2000 was firmly based on the proposals and recommendations of BIBA," said Babev.

Key achievements of the committee included the establishment of a Tax Policy Directorate with the Ministry of Finance, the establishment of a Consultative Committee with BIBA representation to the General Tax Director, and the shortening of the term of VAT reimbursements.

Finally, the association has managed to influence the economic policies of the Bulgarian authorities through its annual White Paper on Foreign Investment. This document represents an in-depth analysis of the business climate in the country through the eyes of foreign investors. The document is discussed on the sessions of the Consultative Council on Foreign Investment to the Prime Minister.

"The White Paper for 2000 was a particular success for BIBA," said Babev. "There, the organisation made 153 proposals to the government and achieved a success ratio of over 60 per cent."

The words of Prime Minister Ivan Kostov during the last session of the Consultative Council, in February 2001, back up BIBA's confidence. "This government regards the dialogue with foreign investors as an ongoing process," he said.

"In this respect, we've accepted the BIBA White Paper, which was presented to us in December last year, as a basis for adopting urgent measures to address the problems identified therein."