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Survey of the Efficiency of Foreign Consultant Firms, May, 1994


The beginning of the reforms in the economy brought about the establishment of a market for consulting services. Its formation was determined on the one hand by the appearance of demand for consulting services, and on the other - by the wide range of legal and economic analyses, expert evaluations and recommendations offered by the rapidly growing number of private persons and firms engaged in this specific sphere of the economy. The extremely liberal conditions for economic activity in Bulgaria allowed the mass registration of consulting firms unrestricted by any licensing procedures. The lack of such restrictions makes it impossible to make even a rough estimate of the number of firms working in this field. The absence of restrictions with respect to Bulgarian natural and legal persons carrying out such activities also applies to foreign persons. Unlike Poland, for instance, where the activities of foreign consulting firms are subject to licensing, Bulgaria is more liberal. This allowed for the registration of most of the largest international consulting firms - Price Waterhouse, Deloitte &.Touche, Arthur Andersen, Moore Stephens, KPMG, and others. The overall effect has been beneficial both in terms of a wider range and of higher quality of the consulting services offered. The increasing competition has proven to be of benefit above all to potential clients. Providing technical assistance in company management, as a normal practice in market economies, has very rapidly become common practice in Bulgaria. These processes are characteristic of all countries undergoing transformation. The role and efficiency of consulting services in the countries in transition are of particular interest not only to macroeconomic theory and to decision-makers, but likewise to the consumers and producers.

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