Zhan Videnov
Encyclopedia
Zhan Vasilev Videnov (born 22 March 1959 in Plovdiv
) was prime minister of Bulgaria
from 25 January 1995 until 13 February 1997, a term remembered for the most severe economic and financial crisis in recent Bulgarian history. He was chairman of the Bulgarian Socialist Party
(BSP) from 1991 to 1996.
English Language School (ELS). He subsequently graduated in Foreign Economic Relations in Moscow
.
such as VIS-2
, SIC
and Multigroup
, alleged government patronizing of dingy business groups (such as the so-called "Orion friend circle") and the emigration of young and educated Bulgarians. Despite this, the BSP still had popular support for a time, as it was able to win the local elections in 1995. One significant initiative was the government's launching of a campaign for mass privatization, in which ordinary middle-class citizens were to acquire shares in the factories and firms that were being de-nationalized.
government (Union of Democratic Forces
, UDF) in 1992, ran out and no further postponement was granted despite Bulgaria' continuing inability to pay. The government also failed to negotiate a loan to relieve the situation. This decreased the country's credit rating
and initiated the destabilization of the finance system. In a short period of time, more than half of Bulgaria's commercial banks went bankrupt, with hundreds of thousands of people losing their savings, while the so-called "credit millionaires" profited enormously from the situation because their immense debts to the banks were reduced to nothing. Simultaneously, inflation skyrocketed
, with the lev
's value plummeting from 70:1 USD in early 1996 to 3,000:1 in early 1997, causing a sharp decline in purchasing power. According to the Bulgaria-based Institute for Market Economics and the near-general consensus in Bulgarian politics, the hyperinflation was caused by the government's inept finance policy. Videnov himself blamed the Bulgarian National Bank
's incompetent actions, and abuses committed during the previous coalition government headed by Lyuben Berov
. Despite its initial refusal in order to save its reputation during the presidential elections campaign in 1996, the government was forced by the crisis to accept eventually the currency board
proposed by the International Monetary Fund
, a decision that was officially implemented by the next government in July 1997.
and a siege of the house of Parliament, which was stormed and set on fire by the protesters. Bowing to popular pressure, BSP leaders eventually agreed to early elections and a caretaker cabinet headed by Stefan Sofiyanski
(UDF) took over on 13 February 1997. Videnov stayed for a brief period as a figure in the hardline opposition within BSP and as a low-ranking functionary, but he soon left politics altogether.
from 1988 to 1990 as a keeper of a secret meeting-place for agents.
Zhan Videnov is married and has one son. He speaks English
, French
, Russian
and Arabic
. He presently teaches European integration
at the private European College of Economics and Management in Plovdiv
.
Plovdiv
Plovdiv is the second-largest city in Bulgaria after Sofia with a population of 338,153 inhabitants according to Census 2011. Plovdiv's history spans some 6,000 years, with traces of a Neolithic settlement dating to roughly 4000 BC; it is one of the oldest cities in Europe...
) was prime minister of Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
from 25 January 1995 until 13 February 1997, a term remembered for the most severe economic and financial crisis in recent Bulgarian history. He was chairman of the Bulgarian Socialist Party
Bulgarian Socialist Party
The Bulgarian Socialist Party is social-democratic political party in Bulgaria and successor to the Bulgarian Communist Party. The BSP is a member of the Party of European Socialists and Socialist International, and is currently led by Sergei Stanishev....
(BSP) from 1991 to 1996.
Education
Zhan Videnov graduated from the PlovdivPlovdiv
Plovdiv is the second-largest city in Bulgaria after Sofia with a population of 338,153 inhabitants according to Census 2011. Plovdiv's history spans some 6,000 years, with traces of a Neolithic settlement dating to roughly 4000 BC; it is one of the oldest cities in Europe...
English Language School (ELS). He subsequently graduated in Foreign Economic Relations in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
.
Term in office
Despite promises for change, the stagnation that had characterized the entire post-communist period since 1989 persisted during Videnov's term, as did the shady privatization schemes,the underfunding of social services, government inaction against organized crime groupsBulgarian mafia
The Bulgarian mafia is an informal term to describe any number of organized crime groups originating from Bulgaria.-Organised crime groups and activities:...
such as VIS-2
VIS (criminal organisation)
Vasil Iliev Security, or VIS, is a security and insurance company in Bulgaria thought to be a front for a criminal organisation dealing in extortion, car theft, drug trafficking and more. Set up in the early 1990s by Vasil Iliev. The company was declared illegal in 1994 but continued operating...
, SIC
SIC
Sic is a Latin word that means "thus" or, in writing, "it was thus in the source material".Sic may also refer to:* Sic, Cluj, a commune in Romania* SiC, Silicon carbide, a semiconducting material, also used to make metalworking tools from...
and Multigroup
Multigroup
Multigroup is a business conglomerate in Bulgaria mostly known for its alleged involvement in various scandals and organized crime. Its founder is the Bulgarian businessman Iliya Pavlov, who was its leader until his assassination on March 7, 2003...
, alleged government patronizing of dingy business groups (such as the so-called "Orion friend circle") and the emigration of young and educated Bulgarians. Despite this, the BSP still had popular support for a time, as it was able to win the local elections in 1995. One significant initiative was the government's launching of a campaign for mass privatization, in which ordinary middle-class citizens were to acquire shares in the factories and firms that were being de-nationalized.
Crisis
During the second year of Videnov's term, Bulgaria experienced a severe economic crisis and declining quality of living standard. One element of this was the grain crisis. In mid 1996, the first reports appeared that the country's grain reserves were near complete depletion due to excessive exports, and bread did actually become scarce for some time in the winter of 1996-1997. At the same time, the postponement of the payment of interest on Bulgaria's foreign debt, which had been negotiated by the Filip DimitrovFilip Dimitrov
Philip Dimitrov Dimitrov is a Bulgarian politician, Prime Minister of Bulgaria for the short period 1991-1992, MP in the 36th , 37th and the 40th National Assembly, and MEP from January 2007 to May 2007....
government (Union of Democratic Forces
Union of Democratic Forces (Bulgaria)
The Union of Democratic Forces is a political party in Bulgaria, founded in 1989 as a union of several political organizations in opposition to the communist government. In February 1997 the Union was transformed into a single unified party with the same name...
, UDF) in 1992, ran out and no further postponement was granted despite Bulgaria' continuing inability to pay. The government also failed to negotiate a loan to relieve the situation. This decreased the country's credit rating
Credit rating
A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by a credit rating agency of the debt issuers likelihood of default. Credit ratings are...
and initiated the destabilization of the finance system. In a short period of time, more than half of Bulgaria's commercial banks went bankrupt, with hundreds of thousands of people losing their savings, while the so-called "credit millionaires" profited enormously from the situation because their immense debts to the banks were reduced to nothing. Simultaneously, inflation skyrocketed
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...
, with the lev
Bulgarian lev
The lev is the currency of Bulgaria. It is divided in 100 stotinki . In archaic Bulgarian the word "lev" meant "lion".It is speculated that Bulgaria, as a member of the European Union will adopt the Euro in 2015 .- First lev, 1881–1952 :...
's value plummeting from 70:1 USD in early 1996 to 3,000:1 in early 1997, causing a sharp decline in purchasing power. According to the Bulgaria-based Institute for Market Economics and the near-general consensus in Bulgarian politics, the hyperinflation was caused by the government's inept finance policy. Videnov himself blamed the Bulgarian National Bank
Bulgarian National Bank
The Bulgarian National Bank is the central bank of the Republic of Bulgaria with its headquarters in Sofia. The BNB has been established on 25 January 1879. It is an independent institution responsible for issuing all banknotes and coins in the country, overseeing and regulating the banking sector...
's incompetent actions, and abuses committed during the previous coalition government headed by Lyuben Berov
Lyuben Berov
Lyuben Berov was a Bulgarian economist. He served as prime minister of Bulgaria from 1992 to 1994....
. Despite its initial refusal in order to save its reputation during the presidential elections campaign in 1996, the government was forced by the crisis to accept eventually the currency board
Currency board
A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target....
proposed by the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
, a decision that was officially implemented by the next government in July 1997.
Fall from power
The BSP lost the November 1996 presidential elections by an almost 20% margin. Following the results, several chief members of cabinet resigned and joined the internal BSP opposition against the party leader. Videnov tendered his own resignation as both prime minister and chairman of the BSP on 21 December 1996, but stayed on as acting prime minister until a successor could be appointed. The BSP, which still held the majority in Parliament, attempted to form a new cabinet. However, the UDF-headed opposition responded by organizing month-long street protests in big cities, demanding that the parliament should be dissolved and that elections must be held immediately because of the BSP's responsibility for the crisis. The protests culminated in a general strikeGeneral strike
A general strike is a strike action by a critical mass of the labour force in a city, region, or country. While a general strike can be for political goals, economic goals, or both, it tends to gain its momentum from the ideological or class sympathies of the participants...
and a siege of the house of Parliament, which was stormed and set on fire by the protesters. Bowing to popular pressure, BSP leaders eventually agreed to early elections and a caretaker cabinet headed by Stefan Sofiyanski
Stefan Sofiyanski
Stefan Antonov Sofiyanski has been a leading member of the Union of Democratic Forces in Bulgaria. He served as interim Prime Minister in 1997 and was a three term Mayor of Sofia....
(UDF) took over on 13 February 1997. Videnov stayed for a brief period as a figure in the hardline opposition within BSP and as a low-ranking functionary, but he soon left politics altogether.
Legacy and personal life
Despite the widespread corruption and swindles of his time, Videnov is commonly said to have been a personally honest man whose naivety was misused by his own associates. This assessment is supported with the argument that, unusually for Bulgaria, he apparently didn't make any personal profit from his position and indeed left politics as poor as he had entered it. In 2007, it was disclosed that he had collaborated with the Communist Bulgaria's secret serviceCommittee for State Security
The Committee for State Security , popularly known as State Security was the name of the Bulgarian secret service during the Communist rule of Bulgaria and the Cold War ....
from 1988 to 1990 as a keeper of a secret meeting-place for agents.
Zhan Videnov is married and has one son. He speaks English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
, French
French language
French is a Romance language spoken as a first language in France, the Romandy region in Switzerland, Wallonia and Brussels in Belgium, Monaco, the regions of Quebec and Acadia in Canada, and by various communities elsewhere. Second-language speakers of French are distributed throughout many parts...
, Russian
Russian language
Russian is a Slavic language used primarily in Russia, Belarus, Uzbekistan, Kazakhstan, Tajikistan and Kyrgyzstan. It is an unofficial but widely spoken language in Ukraine, Moldova, Latvia, Turkmenistan and Estonia and, to a lesser extent, the other countries that were once constituent republics...
and Arabic
Arabic language
Arabic is a name applied to the descendants of the Classical Arabic language of the 6th century AD, used most prominently in the Quran, the Islamic Holy Book...
. He presently teaches European integration
European integration
European integration is the process of industrial, political, legal, economic integration of states wholly or partially in Europe...
at the private European College of Economics and Management in Plovdiv
Plovdiv
Plovdiv is the second-largest city in Bulgaria after Sofia with a population of 338,153 inhabitants according to Census 2011. Plovdiv's history spans some 6,000 years, with traces of a Neolithic settlement dating to roughly 4000 BC; it is one of the oldest cities in Europe...
.