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Strasbourg,
September 1998
Pf/legis/govtbks/docfinal
DECS/CULT-POL/livarc
(98) 6
BULGARIA:
A Report
Prepared by For the joint activity “Governments
love Books (electronic books too)” of the Council of Europe, Unesco
and Börsenverein des Deutschen Buchhandels
SUMMARY THE BOOK SECTOR AND GOVERNMENT
PUBLISHING BOOK DISTRIBUTION
AUTHORSHIP AND
TRANSLATION LIBRARIES
LEGISLATION RELATING
TO BOOKS BANKING AND FINANCE
BOOK SECTOR ORGANISATIONS
AND ASSOCIATIONS SOURCES OF INFORMATION
AND ADVICE
‘Books are indispensable tools and vehicles,
they are outstandingly effective in transmitting knowledge and communicating
ideas and experiences, in embodying innovation and originality, in improving
living conditions and the national economy in general.’ J.A. Koutchoumow
Needs and Demands for a Legal Framework for the Book Community
Bulgaria has all the ingredients of a successful book industry, a high level of literacy, a strong tradition of book authorship, readership and ownership and entrepreneurs willing to take risks in a very difficult economic climate. However, the Bulgarian book sector is far from healthy and there is a need for the removal of a number of obstacles which limit access to books and their availability and affordability and a recognition of their national importance by the adoption and implementation of co-ordinated National Book Policy which should help to achieve a potentially astonishing increase in the publishing potential of the country.
All sectors of the Bulgarian book trade have been adversely affected by both the macro-and micro-economic changes since the beginning of this decade and it is beset by problems:
Bulgaria is typical of all countries in economic transition in suffering from the after- effects of Soviet-style socialism and its abrupt demise and the book sector has suffered particularly badly as a result of the collapse of the centralised distribution system. Under the previous regime, there was widespread access to books as a result of centralised distribution, subsidised low pricing and the absence of any commercial criteria. Unable to sustain the former structure with its heavy support for the book sector the state abruptly withdrew, allowed an elaborate infrastructure to collapse and now looks to market forces alone to determine the future development of book publishing and distribution. The abolition of the state monopoly opened up the market and the number of private publishing start-ups mushroomed with a peak in 1993 but since then the industry has been struggling to survive. Print runs have collapsed and 1,500 to 2,000 copies would be regarded as a big print run. The focus of much of the industry is on ‘bestsellers’ mostly translated popular fiction, licensed editions of multi-colour books, mainly for children, and translations of computer books. The weak link in the book sector is distribution. The number of retail bookselling outlets has collapsed partly as a result of a movement into other more profitable goods, partly because of restitution of property and partly because in smaller towns and villages subsidised bookshops were never truly viable. Book retailing has been taken over by street traders each with a small table or booth and only a limited range of titles, usually ‘hot’ bestsellers. There is an extensive library system ranging from the National Library down to those in reading clubs in local cultural centres. However, from top to bottom the library system is underfunded and unable to develop or maintain its collections.
1. That there should be drawn up a National Book Policy drawing together all matters relating to books. The scope of the policy should range from literacy and the teaching of reading through matters concerning authorship and translation, publishing, book distribution and libraries of all kinds. 2. That a key objective of such a policy should be to embody such a policy in a Book Law bringing together in one legal instrument all the present and proposed legislation relating to books. 3. That a National Book Council be set up, attached to the Ministry of Culture, to draw up a National Book Policy, to introduce a Book Law and to monitor and advise on all matters relating to books. 4. That role and function of the National Book Centre be reviewed and expanded to embrace all aspects of the book sector 5. That level of VAT on books be reviewed and hopefully reduced to zero in the spirit of the Florence Agreement which Bulgaria recently ratified. 6. That reduced postal rates for books be introduced. 7. That the deposit copy requirement be reduced from 20 copies to five. 8. That tax incentives be considered for private and commercial sponsors of books of cultural importance. 9. That at least some of the remaining state-owned bookshops are privatised individually with a guarantee by purchasers of continuity in bookselling 10. That a survey be carried of book distribution 11. That the Council of Europe use its position to encourage a co-ordinated programme of assistance to help establish bookshops 12. That the provision of student textbooks be reviewed on a national basis 13. That electronic publishing be regarded as part of the book sector
The Bulgarian economy has suffered badly from the changes which took place following the collapse of the communist systems of Central and Eastern Europe. Bulgaria was not only one of the most centralised economies in the socialist system, it was also very dependent upon Comecon and in particular upon trade with the Soviet Union. Between 1990 and 1993 Bulgaria’s economy contracted by more than 25 per cent while successive governments introduced elements of reform without tackling essential structural changes. The state was hesitant to withdraw from key areas of the economy and privatisation was slow and often questionable. The lack of a clear government economic strategy for reform until 1997 has taken a significant toll. 1994 and 1995 saw an apparent recovery with a rise in the private sector but this was followed between 1995 and 1997 by further economic collapse fuelled by a high level of external debt, large numbers of non-performing bank loans and capital flight from the country. The response of the government was an attempt to revive central planning with the reimposition of price controls and subsidies with heavy support for a loss-making public sector at heavy cost to the banks and disruption of an economy in transition. This led to a crisis of confidence in both the financial system and the lev, Bulgaria’s national currency which plunged in value during 1996. The dramatic fall in the value of the lev meant a catastrophic drop in living standards and by late 1996 average per capita monthly wages had fallen by two-thirds in barely 12 months to around US$30.00 per month. Living standards continued to fall in 1997 a decline exacerbated by escalating inflation; bread prices alone increased five-fold in 1996 and by 300 per cent in one month in January 1997. Faced by inevitable social discontent the socialist government gave way to an interim, caretaker administration which in turn led to elections in April 1997 that were emphatically won by the Union of Democratic Forces on a platform of economic stabilisation and fast-track reform. With the support of the International Monetary Fund and international financial institutions the new government is committed to a program of rapid economic reform. In the period since the present government was elected there have been significant legislative changes, privatisation and restructuring have been accelerated, foreign investors targeted and closer integration with western countries pursued. At the core of government strategy is the desire for Bulgaria to return to the European stage and early membership of both the European Union and NATO are key objectives. A independent currency board which was set up in July 1997, with the lev pegged to the deutschemark at BGL 1000/DM1, has been a resounding success and the economic situation is now much more stable. Between May 1996 and February 1997, when inflation was 250-300 per cent in one month, the lev fell from 70 to 1 US$ to 2800 to 1 US$. The activities of the currency board have had a significant impact on inflation which has dropped to it present level of between 4-5 per cent per month while interest rates have also fallen significantly. This in turn has laid the foundation for a re-growth of confidence in the currency and increasing movement on privatisation and foreign investment. The state deficit is under control although still high at 70 per cent of GDP. There is also a sizeable foreign debt of around US$10 billion but both interest and capital repayments are being serviced. There is a positive trade balance. Unemployment remains high but the figures have fallen recently by about 8 per cent. Over 70 per cent of all enterprises are still state-owned and there is a great deal of hidden unemployment in these organisations which are unwilling to shed staff. Living standards are still low with a current average monthly salary of approximately 100 DM; a university professor might earn between 200 - 300 DM. Most state-owned companies are paying no taxes and are absorbing subsidies and industrial credits and many have high levels of debt. It is the intention of the Government to privatise as quickly as possible and this process is accelerating with a target of over 50 per cent of state owned assets being sold into the private sector in 1998-99 raising US$655 million.
Bulgarians have a very strong culture and are great readers but almost everyone agrees that the book is dying and needs to be supported. It is understandable if a government struggling with the major economic challenges facing Bulgaria does not feel it has the time or the inclination to pay particular attention to the problems of the relatively small book industry. The book industry may not be large but a free, vibrant and commercially healthy book sector is not only one of the best guarantees of written national cultural identity , it is essential for a nation committed to social, political and economic reform. Bulgaria which has for so long been subject to others and which stands at the interface between two major religions is fiercely supportive of its culture Books are indisputably a key component of the culture life of any country but it is, perhaps, a misfortune of the Bulgarian book industry that its serious problems appear to be seen by many in government in a purely cultural context. Even to sympathetic politicians book publishing is seen as just one of a number of competing cultural activities, often subject to the advice and intervention of ‘intellectuals’, rather than as an essential medium of communication and education in every walk of life which would amply repay the time and attention needed to draw up and implement a coherent policy for the book sector. The government has no such policy towards books other than a general support for the ‘principles of pluralism, freedom and non-interference in the creative process and equal opportunities for all businesses operating in the area of artistic creation, production and distribution of books’. In practice, with few exceptions, this is a policy of laissez-faire. Unable to sustain the former structure with its heavy support for the book sector the state abruptly withdrew, allowed an elaborate infrastructure to collapse and now looks to market forces alone to determine the future development of book publishing and distribution.
Responsibility for books falls under the Ministry of Culture which is suffering from the financial strictures which afflict the rest of the government and struggling with many competing cultural interests. The activities of the Ministry towards books are implemented by the National Book Centre.
The National Book Centre is primarily a cultural organisation which was set up within the Bulgarian Ministry of Culture in 1991 as a legally autonomous, non-profit making body. In Bulgarian Cultural Policy in a State of Transition the main functions of the National Book Centre are described as:
The National Book Centre is in a difficult position. It is the only governmental body dedicated to books but shortage of funds limits what it can to do to support the book sector. It needs the strength of a Ministry behind it but its location within the Ministry of Culture restricts its direct influence only to cultural matters whereas many of the problems of the book sector that need to be addressed lie elsewhere. It is recommended elsewhere in this report that there is a need for a national book policy in which a primary objective should be to revise and strengthen the role of the National Book Centre to enable it more fully to represent the interests of the book sector across all areas of government and the public sector.
A Presidential Committee has been set up to look at all aspects of culture consisting of 20 leading intellectuals from all aspects of the cultural life of Bulgaria including 5 or 6 writers. There is also Parliamentary Committee on Culture and the Media which is concerned with all legislation to do with culture and which takes an active interest in the book sector.
The state has no money to spend on the book sector which is not looking for financial support. Nevertheless, the state can do much more to support the book sector by developing a National Policy for Books which brings together all matters which relate directly or indirectly to books especially those spread through the many state agencies. The establishment of a National Book Council under the aegis of the Ministry of Culture is recommended. Such a Council would serve as a advisory body to government with the primary objective of formulating a National Book Policy and for overseeing the implementation of existing book related laws and for co-ordinating them into a single Book Law. The suggested National Book Council should be
made up of the following or their representatives:
Bulgarians love books and the publishers feel that the interest and the wish to own books is there but they recognise that low incomes make it difficult if not impossible for many people to buy them. Publishers are very concerned at the deterioration in the book sector and that the government appears to be making no effort to slow the decline. All the book sector asks is to have a situation where it can survive and grow. There are no subsidies for the book sector and they are not asking for them. They are looking primarily for the removal of obstacles such as VAT where they see an already struggling book sector burdened by one of the highest rates on books in Europe. There is no state goal-oriented policy on books that the publishers can recognise and they feel let down by a government which declares support for the book but apparently does nothing about it. The publishers feel that the voice of the book trade is not being heard in government and the proposed National Book Council would go a long way to relieving these concerns.
Despite the problems of the book sector, National Library Statistics indicate that up to 10 new publishers a month are registered and that there are now thought to be about 1,600 commercial organisations registered with publishing as one of their activities but many of these are either inactive or have just one or two publications. Nobody knows for sure but there are an estimated 450 or so companies actively engaged in publishing of which about 40 or 50 are significant for their size and output. In 1988 there were 27 state publishing houses and over 100 others attached to institutions; most of the former have now been privatised or are in the process of privatisation
The output of titles between 1998 and 1994 fell in the early 1990’s, rose to a peak in 1993 and then began a further fall which has continued to the present. It is probable that the number of titles published in 1998 will be no higher than a decade ago while printing numbers have fallen considerably. Average current print runs are thought to be between 2000 and 3000 copies but, as these include bestselling popular fiction and children’s books, typical printing numbers are unlikely to more than 1,000 copies with many below this, often as low as a few hundred.
The trend of publication by market is absolutely typical of the experience of all post-communist countries with a growing predominance of bestselling fiction and childrens’ books, mostly in translation, which account for about half of all new titles published. This is a reflection, not just of reader demand, but of the difficulty for publishers in selling economic quantities of any other type of book in the current state of book distribution. There is a demand and need for all types of books of more limited appeal and there are publishers who would like to satisfy it but the distributive system as it stands cannot cope with that demand and undercapitalised publishers simply cannot take the risk.
The bulk of the Bulgarian book sector is a classic ‘new’ book market. Most private distributors are concerned only to get new books as soon as they are published and to make them available on the streets before their competitors. The active selling period normally lasts no more than a few weeks before newer publications take their place. Distributors and retailers are concerned to buy only what they are confident of selling in that very short space of time and, as there is no effective mechanism for follow-up orders, once a book has gone through the system its sales are dead. As a result the distributive system is concerned with little but bestselling fiction and children’s books to the virtual exclusion of all almost all other types of book.
Years during which the price of books was heavily subsidised by the Government have left a reading public unready to accept economic pricing for books. Publishers recognise that their books are too cheap and should be sold at more economic prices but they are unwilling to jeopardise their already slender sales by raising prices as they feel that most readers could not, or would not, afford them. In effect, the burden of subsidy has passed to publishers. Almost all materials used in book production in Bulgaria have to be imported leaving publishers facing costs at, or above, western levels for materials and, especially for paper, a major component of the cost of producing a book . Despite this, they feel unable to charge prices (inclusive of VAT) of more than one third of that for a similar books in the west. A typical breakdown of list price including VAT is as follows: Percent Discount to distributors 28 - 30 Even without VAT this would leave a publisher with a barely adequate margin to cover cost and risk and allow for reinvestment. With the added burden of VAT a typical publisher is left with an totally inadequate margin on which it would be impossible to pass on to distributors more than the minimum in discount. The result is that all participants in the book sector, publishers, wholesalers and retailers, are surviving on the most narrow of margins, vulnerable to the slightest movement in costs and lacking any ability to accumulate capital on a scale necessary to rebuild the retailing and distributive infrastructure that is so badly needed. The infrastructure of the book sector, especially in distribution, has been destroyed and capital is needed in the industry to rebuild it. The state cannot provide it, significant inward investment is unlikely and banks will continue to be cautious in lending money until margins and profitability improve. The government can make a major contribution to the economic health of the industry by the removal of VAT on books while publishers must help themselves by taking the risk of adopting a progressively more robust attitude to pricing.
School textbooks are supplied free to all children in Grades I to VIII from the national education budget as it is felt that charging parents would be unacceptable. The contracts for the publication, inclusive of distribution, of new and replacement school textbooks are open to all publishers in a bidding system. This has been successful both in raising the quality of textbooks and in providing help for publishers. However, there are problems and the books are often late getting to the schools. In a time of rapidly rising costs some publishers have been unable to keep to the contract price and there have been instances of publishers delaying or withholding publication in order to gain an increase. Normally textbooks are expected to last for three years but lack of money in the Ministry of Education budget precludes printing large quantities and reprinting is often very slow which causes unacceptable delays. As part of the contract each publisher is responsible for delivering the textbooks to the schools and this creates delays and errors in delivery. Above Grade VIII parents pay for school textbooks and there are problems here also with distribution which is not carried out in bulk by the publishers but through the book sector network. This has led to problems of availability and inflated pricing. Consideration should be given to removing from publishers responsibility for distribution of books for Grades I to VIII produced for the Ministry of Education and opening to established book distributors the opportunity of tendering for the distribution of all such books to all schools. This should not increase overall expenditure on school textbooks but it would channel some money into book distribution. It would also provide a very strong incentive to publishers to deliver the books on time.
University student numbers have risen by 60 per cent in the past five years but a downward trend is now expected. There are approximately 250,000 students and 42 universities which are thought adequate to meet likely future demand. The provision of university textbooks has improved and some private publishers are taking an interest in the market although it is almost impossible for them to compete against the university presses which have a virtual monopoly in this area. University presses are not strictly state-owned organisations but Bulgarian Universities are state institutions and their publishing activities are funded from a university budget which covers most of the costs including about 90 per cent of the salary bill. Sales income goes directly to the publishing house and is used to reinvest which gives them a financial and commercial strength denied to the rest of the publishing industry. It is felt that university text books cannot be sold at economic prices and the university presses often price below cost. University textbooks are usually written by academics for their own students and published by their own university press. Very few university textbooks are translated, even where demonstrably better books could be made available to students, ostensibly because licence fees and translation costs make the books very expensive. An attempt was made by the Ministry of Education to persuade universities with similar courses to combine to adopt one translated textbook but this was unsuccessful and the numbers of students on most courses are too small to make translating a textbook viable for use in one or two universities. There are, of course, the usual issues of academic freedom and institutional independence in higher education to say nothing of the determination of professors to see their students use the material they have prepared. Nevertheless a system which fragments the provision of university textbooks for similar courses among a number of different institutions cannot be economic and the true cost is disguised by the financing system and subsidy. There is a strong case for national review of university textbook provision.
Publishing on CD-Rom is in its infancy although Bulgaria has a strong information technology capability. The first Bulgarian first products were on display at the Sofia Book Fair in May 1998 but most were produced with foreign participation. This market is unlikely to develop rapidly as very few people can afford home computers and the sales of computers equipped with CD readers have been even more limited which obviously restricts the potential market. Electronic publishing and multi-media should be regarded as part of the book sector and covered by the recommended National Policy for Books.
State subsidy of book publishing is still widespread at all levels of education.. Most school textbooks are produced by the Ministry of Education and provided free up to Grade VIII. Academic textbooks are published by presses which are heavily subsidised from the budgets of their university. Elsewhere state subsidy is much reduced. Ministries occasionally sponsor the publication of a book of special interest but it is not state policy and subsidy is now reduced to the Book Support Program of the Ministry of Culture which co-finances about 100 publications each in contemporary Bulgarian writing and heritage and Bulgarian humanitarian and reference works with the objective of eliminating some major gaps in available Bulgarian literature. Publishers submit proposals which are evaluated by a commission. This system is not thought to be very efficient and many of the subsidised publications have very low print runs. This experience highlights the classic dilemma of producer subsidy which supports the publisher and the consumer but expects the distributor to handle books of limited appeal, involving just as much risk and work as more profitable books, for a small margin on an artificially reduced price. Low price is not in itself enough to ensure sales if the means of distribution is lacking or distributors are unwilling to handle subsidised book of only limited appeal. The National Book Centre wants to create a new system of supporting the book and not the publishing process by purchasing a number of copies of important titles to distribute free to key libraries of which there are about 800. This would enable libraries to begin to rebuild their collections and provide readers with access to important books. The present scheme has an annual funding of 100 million lev and the alternative scheme would require a substantial increase on this. The Open Society Foundation continues to provide sponsorship in many areas of the book sector. In the present parlous state of the industry, publishers are becoming aware of the potential of support from commercial sources but the potential has to be limited and there are no tax incentives for sponsors of books.
Some Bulgarian printing is of international standard and printing prices are generally are lower than in neighbouring countries by between 10 and 20 per cent. However, any competitive advantage for printers and publishers is eliminated by the need to import almost all materials. The quality of local paper is not good and most is imported together with inks, films and plates on which taxes and duties have to be paid. It is estimated that the international price of book paper is between US$350-380 per ton and the imported price for Bulgarian publishers is closer to US$580-600 per ton after tax, duties and freight. In an industry geared up for the former higher levels of output there is more than enough capacity to meet current local demand and competitive pressures are leading printers to become more service-oriented and to give longer period of credit to publishers. Some printers are carrying out work for foreign customers and more could be done to attract such work. However, few companies know how to go about it, have no foreign partners and no help from the government. Printing is also being privatised and about half the formerly State-owned companies are already in private hands and the rest will probably be private by the end of the year with a few special exceptions such as the Sofia University Printing House. Training in printing and related skills including graphic design is provided at School of Polygraphy in Sofia run by the Ministry of Culture.
Exporting is seen as a possible way to develop sales and there are an estimated 500,000 Bulgarians living overseas, particularly in the US, and there are also 250 international libraries which have collections of Bulgarian materials. This should provide a major opportunity to export but no one has the resources to explore the market overseas. The Government pays half the cost of a stand at Frankfurt but it is still very expensive for a publisher to pay for travel and accommodation. So far few publishers have been successful in establishing any links with importers in western countries and it is very difficult to get money from individuals in the west because of the difficulties of payment. If a Bulgarian Books in Print were available on the internet this would help promote Bulgarian books internationally but as payment by credit card is impossible and as few clients, especially in the US, will pay in any other way, sales will be limited until problems of payment can be simplified.
There are two Bulgarian Book Fairs, a national fair in the Spring and international fair in the Autumn, both of which provide a major opportunity for readers to see and buy recently published books. The fairs are held at the National Palace of Culture which has been set up as an entirely independent and self-financing organisation dedicated to culture. The Spring and Autumn Book Fairs are a partnership between the National Palace of Culture, the National Book Centre and the Association of Bulgarian Publishers under which the latter receives a discount of between 30 and 50 per cent on space which is then rented on to publishers at a profit to the Association.
Various attempts have been made with no success to start a trade journal for the book sector but it has not proved viable and there is nothing available at the moment. Neither are there any really reliable statistics. It is difficult, if not impossible, to gather data for trade statistics. The National Book Centre is trying to do this in co-operation with the National Library but their resources are limited and the industry not always co-operative so very little has come out of it.
There is a Department of Publishing at the University of Sofia which is producing more trainees than the industry can currently absorb. In an early initiative the National Book Centre ran, in conjunction with the UK Know How Fund, a series of seminars for publishers but this has not been continued. There is still in existence a plan to bring together on one site the Publishing Department from the University of Sofia and the School of Polygraphy to create a Training Institute for the Graphic Arts as a regional centre of excellence.
There is no state help, no incentives and no government policy towards book distribution which is universally identified as the major problem facing the Bulgarian book sector. There is no trade association specifically for booksellers and distributors which might properly represent their interests. Everyone in the industry is confident that, as Bulgarians are such prolific readers, a significant market exists for books which is not being serviced as a result of poor distribution. Specific steps are needed to help book distribution but the problem is where to look for investment as the State cannot help. It is suggested that if funds could be made available that a survey should be made to focus exclusively on book distribution to establish the true situation. Such a survey should attempt, among other things, to establish the following:
If such a survey were available it would be much easier to formulate possible help targeted as book distribution. Before 1989 book distribution was a state monopoly carried out centrally by powerful book distributors which owned substantial assets in form of warehouses, bookstores and transportation. There were bookshops or book kiosks throughout the country from the largest cities down to small villages. Since 1989, the number of retail bookselling outlets has collapsed partly as a result of a movement into other more profitable goods, partly because of restitution of property and partly because in smaller towns and villages subsidised bookshops were never truly viable. There seems little doubt that a major opportunity was lost when bookshops were privatised or leased without guarantees of continuity in bookselling. It is estimated that 80 per cent of the former state-owned bookstores have been sold or leased and that most are now boutiques, cafes or liquor stores. It is difficult to establish the true situation as firm statistics on book retailing are scarce. There are estimated to be 600 bookshops in Bulgaria but most have moved out of bookselling into other goods and there are probably no more than 30 to 40 real bookshops in the whole country some of which are owned by publishers. It is very expensive to open a bookshop and no one has capital, there is thus a yawning gap in the distribution chain. It is impossible to buy books in the smaller towns and villages whilst in the cities it is estimated that as much as 90 per cent of all books are sold on the streets from tables and booths carrying no more than 50 titles each.
No one knows for sure how many street traders there are or how they are organised. Many are sole traders but there are street trading chains employing people to run stalls at various locations which are controlled by individuals, or groups of individuals or are the outlets for some private distributors. Most street traders are interested only in the latest bestselling titles but this is not true of all of them and there is a surprising variety of books available on the streets of Sofia and the other big cities. However, buyers wanting a particular title or range of titles have to search often without success. The street traders are seen by many as opportunists, who will move on to more profitable goods given the chance, and this is probably true of many. On the other hand, they can also be seen as providing a classic entrepreneurial response to an unfulfilled demand for books and there is no doubt that among their numbers are some who have the potential to become skilled professional booksellers but who lack the capital to do more than stand beside a small table at the side of a street in all weathers.
There was a suggested move by the Mayor of Sofia to clear street traders from the centre of the city, and especially Slovakia Square, a focal point of book retailing, but fortunately the Association of Publishers dissuaded him. Until there is more capital in book retailing, and proper bookshops begin to emerge, the street traders will provide a valuable function essential to the survival of many publishers. However, the municipalities are in a position to accelerate the re-establishment of book retailing in city centres where rentals are already becoming beyond the means of booksellers. Municipalities control most city-centre rentals and they could help by offering concessions for bookselling start-ups as was done in some other major cities which have experienced the same problems. The cost in such concessions would be very small as only a few premises would be involved and good well-stocked bookshops attract buyers to city centres for the benefit of all traders.
Attempts are being made to alleviate the problems of bookselling by financial support from various sources. The Open Society Foundation has opened a small chain of bookshops and the PHARE Fund is in process of setting up an international bookshop in the Ministry of Culture. There is also a plan to set up a major bookstore in the National Palace of Culture in partnership with the National Book Centre. It is very difficult to find affordable space for a bookstore in Sofia and the National Palace of Culture will provide space and personnel as its share of the investment in the bookstore. The National Book Centre hopes to use its influence to persuade publishers to provide books on consignment and to achieve the participation of foreign publishers. The aim is to create a normal major bookstore with a wide range of titles, making full use of Books in Print and possibly with an Internet link to Amazon.com. It is hoped to start in September and to have the bookstore open by Christmas. Anything which helps widen the sale of books must be welcomed but the real need is to encourage individuals to take the risk of establishing their own commercial stock-holding shops and it must be asked whether such initiatives by organisations which do not have normal commercial constraints, and thus have a major competitive advantage, help or hinder that process.
The situation in book distribution is very fluid and the best figures available indicate that book distribution is handled by about 28 state-owned distributors and approximately 130 private companies but these numbers disguise the truly serious problems of book distribution. Most of the state companies suffer from inefficient management and are virtually moribund while the majority of private distributors are undercapitalised and economically unstable. The state distributors have moved increasingly away from books while few of the private companies carry more than a limited range of titles and most are not ‘stockholders’ as their major preoccupation is to get hold of the latest ‘hot’ bestsellers and to get them on to the streets before their competitors. Distributors mostly serve only the bigger cities and with few exceptions are not thought to be efficient. They operate on very narrow margins but are usually supplied on consignment while they supply on a cash basis or give very limited credit. Publishers usually have to fund overdue debts and have to live with the constant fear of a distributor collapsing. The state-owned chains still exist and they control the remaining bookstores in state ownership but where these still trade they have moved increasingly into office supplies and stationery. To all intents and purposes the state distribution system has collapsed and is virtually moribund. The process of privatisation of the remaining distributive chains has begun and it is hoped to attract foreign investment but realistically this is unlikely. The status of the distribution and bookselling organisations is not clear as responsibility for them is divided between the Ministries of Culture, Trade and Tourism and Industry. There is a fear that the remaining state-owned distributive chains will be sold as as a whole which, even at a favourable price, would be beyond the reach of anyone in the book industry; it is thought that a possible price for SOFKNIGA, a chain with warehouses and 40-50 shops in Sofia will be in the region of US$6 million and no one in the book industry could offer this sort of money. The chains are listed as state assets for sale as a whole to the highest bidder. The Ministry of Culture is campaigning to have the shops sold individually on favourable terms subject to a guarantee that they are use solely for books for at least 10 years from the date of sale. A key objective of privatisation is to raise cash and the government does not appear to be interested in bringing fresh capital into the book sector and its own needs for money are such that it is unlikely to be swayed and will sell the remaining networks to the highest bidder probably without any controls over their future use. It is recommended that at least a few of the shops be sold or leased on favourable terms to publishers, distributors or individuals willing to guarantee their continued use as bookshops for five years or more.
A recent phenomena are book exchanges which are a form of brokerage for books where publishers, distributors and retailers meet to buy and sell books. Some see book exchanges as a potential solution to the problems of distribution. A planned central book exchange in Sofia which could resolve at least some of the problems of distribution will need considerable investment.
Mail-order selling of books has developed very rapidly in other post-communist countries with similar distribution problems. In Poland some publishers are achieving more than 15 per cent of their sales by mail and expect that proportion to rise. Mail-order could offer a powerful answer to distribution problems within the Bulgarian book industry, especially for more specialised publications, but the cost of postage makes this unlikely as it very expensive relative to the price of books. There are also potential problems of payment without widespread use of credit cards but the postal authorities also run a COD system but the cost is prohibitive for books. Reduced postal rates for printed matter are common in many countries and they should be seriously considered in Bulgaria. There would be little loss of revenue for the postal service as there is no business there at the moment while the cost would be marginal. On the other hand the potential for extra business could be substantial over time as in most other countries the book industry is among the largest users of postal services.
The National Book Centre is currently working on an initiative to establish a Books in Print which it regards as an essential step towards the stabilisation of the market and rebuilding a network of bookshops. This was produced in 1997 in both print and on CD-Rom. Only approximately one third of publishers were covered in the first issue and it is hoped to widen the coverage in the next issue. There are also plans to publish on the Internet if funds can found. This project was begun with funding from the Council of Europe but prospects of future funding are not promising. Book in Print is put together within the National Book Centre when staff and time are available. The information has to be collated from three sources: National ISBN Agency: Details of projected forthcoming
titles The task of compilation is not easy even though information comes in electronically from the ISBN Agency and the National Bibliography Centre as publishers problems which add to the work and make difficult. Deposit copy legislation requires publishers to submit 20 copies of every publication which most regard as penal and many simply ignore this requirement so that the National Bibliography is not comprehensive. Many books registered for an ISBN never see the light of day and the lists have to be checked against information from publishers and other sources to weed this out. It is important not to let this initiative die for lack of funds. Every book industry needs a reliable source of information on available titles if it is efficiently to meet the needs of readers and to make possible the publication and sale of all kinds of titles.
There is no formal training for booksellers and others in book distribution. Sofia University runs a publishing course and there is hope that it might lead to some courses on bookselling but there is no guarantee that this will happen and nothing is likely to take place soon.
It is accepted that the state cannot be expected to solve the problem of book distribution but there are several aid and sponsorship organisations which have been active in their support of the book sector throughout the post-communist world and it is suggested that the Council of Europe might use its influence to co-ordinate a small but targeted programme to assist a carefully selected group of up to ten individuals wishing to start-up as stockholding book retailers. The Know How Fund in Ukraine has financed extensive training for a selected group of booksellers including secondment to the UK. Such training covered not only market assessment, setting up and running a bookshop but also business planning and financial control. The Open Society Foundation has a scheme in some countries which guarantees small loans to the book sector which they might be prepared to extend to Bulgaria and specifically to those successfully completing such training. The planned bookshop being set up by the PHARE fund could provide an important training facility for aspiring booksellers. If shop premises could be made available at reduced rents by municipal authorities and the National Book Centre could persuade publishers to give favourable terms and conditions to these start-ups it should be possible to see 10 new stockholding bookshops opening around the country within twelve months. If the number of stockholding bookshops in Bulgaria really is no more than 30 or 40 this would represent a 25 per increase.
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