Economic Progress from Liberation to the End of the Century (1878-1900)
Peasant Settlements and Limited Capital (1878-1880)
After the Liberation, landless Bulgarian peasants settled on the land abandoned by Turkish beys. The Bulgarian government paid indemnities for this land. However, the departure of Turks led to a depletion of capital in the country, limiting investment opportunities.
Land Redistribution and Emergence of Small Farms (1880-1890)
In 1880, a law granted peasants land ownership if they farmed it for 10 years and paid a designated sum to the state. This broke up large landholdings, creating a mosaic of small farms. The economy gradually shifted to a money-based system. Increased importation of farm machinery and mechanization in craft industries modernized agriculture and crafts.
Development of Infrastructure and Foreign Trade (1880s-1890s)
The unification of North and South Bulgaria led to government loans to boost local industry. Factories, railroads, harbors, and communication lines were established. Machinery importation increased significantly, reaching 6,482,000 leva annually from 1891 to 1895. New credit institutions and joint-stock companies played vital roles in economic growth. Foreign trade, primarily with England, Austro-Hungary, and France, faced competition from West European goods due to Treaty of Berlin restrictions Guided Istanbul Tour.
Preferential Treatment for Bulgarian Industry (1894)
Under the Stambolov government in 1894, laws were enacted to favor Bulgarian industry. However, a conservative party government led by Stoilov took power the same year. The conservatives shifted taxation to real estate from agricultural yield. In 1897, they successfully renegotiated trade agreements, breaking free from Treaty of Berlin constraints. Protective tariff walls were established to shield the growing Bulgarian industry.
Economic Pioneering and Opportunities (Late 19th Century)
Governments led by Stambolov and Stoilov played pioneering roles in opening vast opportunities for economic development. Their initiatives, including preferential treatment for local industries and breaking free from restrictive treaties, laid the foundation for Bulgaria’s economic progress at the turn of the century.