In the economic sector the BKP blueprint for reform commonly referred to as the New Economic Model offered innovations in decentralized decisionmaking that delegated more responsibilities to public and state organizations on the lower level as well as to individual enterprises. The attention given to economic reform at the time--late 1965--was motivated not only by Zhivkov's need to shore up his own political position after the attempted coup but probably more so by the examples of new economic programs that were sweeping the Eastern European communist countries and the Soviet Union. More important than the liberal reforms for decentralized management of the economy was the decision to allow planning from the bottom to the top. From the time of the enactment in 1965 up to about 1968 there were definite signs of change. The July plenum of the BKP Central Committee in 1968, however, formalized a number of changes that called for considerable reduction in the autonomy of the existing public and state organizations, thus setting aside the entire economic reform program. After the July plenum and another in November 1968, a reorganization of state enterprises took place in line with the new centralization policy.

During the remainder of the 1960s and into the early 1970s, Zhivkov's position remained stable, and there were no overt threats to his regime such as the 1965 plot to overthrow him. In 1969 and again in 1970 agreements were signed in Moscow that tied the Bulgarian economy even closer to that of the Soviet Union. Bulgaria's position, or more precisely the BKP's position, on relations with the Soviet Union was summed up in a statement made by Zhivkov just before the Tenth Party Congress in 1971: "The fraternal friendship and cooperation of the Bulgarian Communist Party with the Communist Party of the Soviet Union and the ever broader and deeper alignment of Bulgaria with the Soviet Union will remain the immovable cornerstone of the entire work and the domestic and foreign policy of our party."

Area Handbook for Bulgaria — Part 163

At the Tenth Party Congress, which was attended by General Secretary Leonid Brezhnev of the Soviet Union, there were no startling changes either in party policy or in high-ranking personnel assignments. The same Politburo, with an average age of sixty-three, was returned to office, and the party program promised no alteration in the heavily centralized, pro-Soviet policies that had marked most of Zhivkov's tenure. A new constitution was proposed by the party and later adopted by the government and, although some institutional changes were made--for example, creation of the State Council as a collective executive branch of government--the absolute supremacy of the BKP over every aspect of Bulgarian life was in no way diminished. On the contrary, the power of the top leadership was probably enhanced along with its ability to perpetuate itself in office.

Area Handbook for Bulgaria — Part 163