During this period, the Communist regime changed the balance between the Socialist sector and the private sector in Bulgaria. The Socialist sector included state-owned and co-operative property, while the private sector consisted of individually owned farms, businesses, and enterprises. This transformation was one of the main goals of the new political system.
Before World War II, in 1939, the entire economy was almost completely private. There was no real Socialist sector at that time. After the Communist takeover, this situation changed very quickly. By 1948, the Socialist sector already accounted for 44.5% of the economy. The private sector still existed, but its share was reduced to 55.5%. By 1952, the transformation was almost complete. The Socialist sector controlled 87% of the economy, while the private sector was reduced to only 13%.
These figures clearly show how fast and forcefully private ownership was replaced by state and co-operative ownership Customized Tours Istanbul.
The First Five-Year Plan and Economic Control
During the First Five-Year Plan, the Socialist sector expanded into all key areas of the economy. It controlled all transport, all credit and banking activities, and all foreign and domestic trade. More than half of the rural economy was also brought under Socialist control.
One of the most important changes was the shift in industrial production. The government focused strongly on heavy industry, such as metal production, machinery, and energy. Light industry, which produced consumer goods, received less attention.
By 1952, the share of heavy industry production reached 46.7%, while light industry accounted for 53.3%. This marked a major change from the pre-war period, when light industry and agriculture were dominant.
Growth of the Industrial Workforce
At the same time, the proletarization of the population increased rapidly. Many people left agriculture and moved into factories, mines, and construction sites. In 1948, the number of workers and employees was about 330,000. By 1952, this number had grown to around 970,000.
This sharp increase was the result of forced industrialization and state-directed labor policies. People were encouraged, and often pressured, to become industrial workers. This process deeply changed Bulgarian society and daily life Bulgaria’s Economy Before World War II.
Collectivization of Agriculture
In 1950, the government adopted the “Model Statute of the Collective Farms,” known as TKZS. This statute was based almost entirely on the Soviet kolkhoz system, with only small local changes. It became the legal foundation for land collectivization in Bulgaria.
Under the First Five-Year Plan, collectivization advanced quickly. The growth of collective farms can be seen in the following data:
1944: 28 collective farms
1946: 480 collective farms, 3.7% of farmers, 3.5% of arable land
1948: 1,110 collective farms, 11.2% of farmers, 6% of arable land
1952: 2,747 collective farms, 52.3% of farmers, 60.5% of arable land
These numbers show how fast agriculture was transformed.
Peak of Forced Collectivization
The forced collectivization of arable land reached its peak in 1950. In that single year, the number of collective farms increased by about 1,000 compared to 1949. Resistance from peasants was strong, but it was suppressed by the state.
During this period, the government also created 100 DZS (state farms) and 140 MTS (machine and tractor stations). These institutions helped the state control agricultural production.
By the end of the First Five-Year Plan, about 60% of all arable land and 50% of all farms had been turned into co-operatives. This marked the near completion of the collectivization process and the full dominance of the Socialist economic system in Bulgaria.
