Corruption is the greatest barrier facing American investors, US ambassador to Bulgaria John Beyrle said in a February 15 speech at Sofia’s University of National and World Economy.

He said that in recent months, more and more American companies had been looking for ways to invest in Bulgaria. Beyrle said that unfortunately, some had met insurmountable obstacles and had been compelled to re-think their intentions.

He listed the four largest barriers preventing American investments developing in Bulgaria.

First of all, Beyrle said, was a lack of skilled labour force.

He said that in 2006 an American company had been looking for an Eastern European country to develop a $2 billion plant to make hi-tech equipment for producing renewable energy, and Bulgaria had been among the primary choices of the investors. They had decided not to invest here because of the “shortage of skilled engineers and technicians in Bulgaria”, Beyrle said. He said a short-term solution could be for companies to train their own work forces, while the sustainable solution would be co-operation between companies and universities.

“Some American companies, such as Microsoft, Cisco and NuImage Boyana, are already working closely with Bulgarian universities in this way.  Businesses and universities should be seen as partners, not rivals,” Beyrle said.

A second barrier to more American investment was the “spotty enforcement of copyright and intellectual property laws”, he said. The biggest danger was counterfeiting and the still minimal ability of the Bulgarian Government to cope with it.

Barrier number three was that the Bulgarian government was creating a favourable environment mainly for the biggest American companies but was ignoring small and medium enterprises. “They also provide much of the innovation and creativity” and “make an economy more resilient”, Beyrle said. Closing a big company could cause chaos in a sensitive economy, but closing a small firm could quickly be overcome.

He said that the greatest barrier facing US investments was the climate of corruption and delays. “Potential investors fear that they will have to face long administrative delays and obstacles, which are really excuses for demanding bribes or kickbacks,” Beyrle said.

He said that he had agreed to speak at the University of National and World Economy because it was there that “the future business leaders and economic policy makers of this country” were educated.

He welcomed his audience of university leaders and students to the “global economy of the 21st century”.

In his opening remarks, Beyrle outlined how Bulgarian-American economic relationships influenced the lives of ordinary people.

Beyrle said relationships in the business and economy sector had the greatest influence over the lives of ordinary people, more so than any influence by diplomatic or other relations.

He said that the people of Bulgaria, even if they did not know it, had already “met” American products.

“So Bulgarians making Swiss chocolates for an American company in a small town north of Sofia are successfully exporting them not just to Romania and other neighbouring countries, but also to Sweden and the United States,” he said.

Beyrle also referred to young Bulgarians seeking a better future abroad, and said that American investments in Bulgaria could prevent an exodus by creating a favourable living environment for future generations.