As a part of the Local Economic Development and Marketing of Bulgarian Municipalities Project under the Bulgarian Resource Cities Program, FLGR and ICMA provided organiza tional and financial support to the first participation of Bulgarian municipalities at an international fair, in Hanover , Germany . Additional technical and financial support to the municipalities was provided by the U.S. city of Auburn , Alabama .

The traditional trade and industry fair at Hanover was held on April 19 24, 2004 . The purpose of attending the fair was to provide the Bulgarian municipalities with an opportunity to present their business resources and Bulgaria s potential as a business location. Five municipal economic development experts, all selected by a clear set of criteria, attended the fair.

A cocktail party was organized at the fair to promote the www.invest.bg marketing Web site.

Partners efforts resulted in a series of business contact requests by companies from Greece , Italy , Germany , the United States , and Jordan , among others. The municipal local economic development (LED) experts, together with FLGR staff, disseminated and responded to these requests with specific proposals of Bulgarian companies. One of the first successful contacts implemented through the Bulgarian Local Economic Development Partnership (BLEDP) network, with the assistance of the municipality of Gabrovo , was with a German company, BIT Analytical Instruments GmbH.

More and more municipalities identify LED as a priority, but so far their efforts have been sporadic and unfocused. Generally, they apply the reactive approach, mobilizing their resources upon receiving a request or upon demonstration of interest in the respective community. In most cases, this proves to be the wrong approach, and successes happen mostly due to chance and to great efforts on behalf of municipal management.

Practice has proven that one-time initiatives, in-depth understanding of municipal resources and problems only by the mayor, and presentations of municipal potential in the form of paper brochures are insufficient to make use of development opportunities.

The global competition, the lack of awareness that Bulgaria is a location for a successful business, the lack of trust in institutions, and the pressing need for a professional approach in dealing with potential investors and municipalities aspiration toward a sustainable socio-economic growth brought up the issue of establishing new LED units.

The 14 municipalities under the Local Economic Development and Marketing of Bulgarian Municipalities Project hired specialists who would be prepared to apply the new concept of a professional approach in dealing with businesses. With the support of U.S. experts, the project provided training for 18 individuals. These specialists conducted community self-assessments, initiated a proactive dialogue with their local businesses and institutions, developed inventories of available buildings and lots and marketing materials, and gradually grew to be reliable assistants and partners of their respective mayors.

Logically, the municipalities involved in the project had to consolidate their efforts and create the BLEDP. It was the partnership that presented Bulgaria at the Hanover fair, with a focus on the opportunities provided by the partner municipalities.

In early 2003, FLGR encouraged and supported the establishment of a new position, a local economic development specialist, in 14 Bulgarian municipalities that have identified improved quality of life as a priority. Following a year of training, practical work, and periodical analysis of results, five BLEDP representatives had the chance to attend one of the largest trade and industry fairs worldwide, the Hanover trade fair, and tried to create a new, positive image of Bulgaria.

The preparations for the visit were a result of the combined efforts of all experts from the BLEDP and FLGR. The following work was completed prior to departure: workforce surveys; identification of traditional industries; identification of priorities for these industries; survey of local business positions on international markets, their expansion plans, and willingness to work with foreign partners; and identification of municipal property available to meet the needs of potential recruits. Each municipality updated its marketing brochure and developed a brief multimedia presentation of its strengths.

A special presentation was dedicated to Bulgaria as a whole. This presentation was developed with the assistance of the Foreign Investment Agency and included facts that answered questions most frequently asked by businesses. Apart from information on location and transport access, the presentation contained data on gross domestic product, unemployment, inflation, credit rating, foreign investment, real estate, business incentives, and successful examples of foreign business relocations to Bulgaria . A small brochure was developed specifically to promote the goals of the BLEDP and the opportunities it provides.

The partners main goal was to focus attention on Bulgaria . Therefore, they needed a special event to remind investors of something positive that Bulgaria is known for and to inform potential investors about the new, better investment opportunities. And what event would be more appropriate for making the presentation than a cocktail party featuring Bulgarian wine?

Preliminary preparations proved critical. The lack of previous experience in presenting Bulgarian municipalities at trade fairs was offset by the friendly and professional support on behalf of the Auburn partners during the fair. They helped with the design of the booth, and their support was crucial for the partners professional performance.

On the very first day, the municipal specialists and the FLGR representative split into three groups. Each team had different objectives and territories in different parts of the day. The teams studied the catalogue of companies represented at the fair and identified several to contact.

Usually, the Bulgarian booth was manned by two representatives in special clothes. They greeted visitors and responded to questions about the business climate in Bulgaria . The other four representatives went to visit the selected companies. Their task was to use specific information to generate basic interest that would be further pursued after the fair. Information was collected on companies goals, requests, and contacts; the information was then summarized into a database. During visits, the representatives extended invitations for the Bulgarian cocktail party on April 22, 2004 .

A representative of the Foreign Investment Agency joined the municipal specialists a day prior to the cocktail party. With his assistance, Bulgaria was represented for the first time at the Hanover trade fair. The presentation was attended by some 60 representatives of foreign and Bulgarian companies, media, and national and municipal authorities. Inviting Bulgarian business to the party proved to be a good decision; they all maintained a friendly dialogue and shared successful business experiences from Bulgaria . The BLEDP, its goals and the opportunities it provides, as well as the new marketing Web site of the 14 municipalities were also presented at the cocktail party.

The visit to the Hanover trade fair was from April 19 to 24, 2004 . However, the preparations required two months of hard work for Bulgaria s virtual and real representation. It is difficult to say whether this initiative will be repeated in the future. At the same time, what has been initiated at Hanover needs to be completed. This is a very positive initiative, a very practical investor recruitment approach that other countries have long adopted as a national policy.

Upon returning to Bulgaria , FLGR organized a meeting to share results and lessons learned and to disseminate information about the contacts established.

The presentations of Bulgaria and the 14 municipalities, as well as the launch of the www.invest.bg Web site, resulted in a series of business inquiries for contacts on behalf of companies from Greece , Italy , Germany , the United States , Jordan , and other countries. The LED specialists responded to all inquiries within reasonable timelines and are maintaining dialogues with the interested companies.

One of the first successful contacts implemented through the BLEDP network, with the assistance of the municipality of Gabrovo , was with a German company, BIT Analytical Instruments GmbH. Representatives of the company came to Bulgaria in early June 2004, visited Impuls Co. in Gabrovo, and discussed business opportunities in CNC technology for the production of medical equipment.

Specific business contacts were also established with the municipalities of Pazardzik and Pleven . These have the potential to become successful practices in the future,

The Hanover Fair generated 48 inquiries by potential investors. Some of them wanted to find distributors for their products. In general, Bulgarian municipalities do not pay much attention to this type of business. Being over-focused on trying to recruit manufacturers, they forget that ensuring consumers would bring manufacturers closer. Many foreign companies declared their willingness to do business with Bulgarian suppliers, an exceptional opportunity to have Bulgarian companies expand their markets. Some companies were interested in greenfield investments.

The Bulgarian municipalities attended the fair with the purpose of presenting their business resources and Bulgaria s potential as a business location. The experience and the results accumulated indicate that the desired attention on behalf of international business may only be achieved by common efforts .

The fact that the first visit by an investor was to a city represented at the fair, Gabrovo, is proof of the skills of the specialists who participated at the fair, as well as of the profession alism of the Gabrovo team.

The Hanover fair marked the beginning of an initiative to change Bulgaria s negative busi ness image. This initiative is a result of the combined efforts of local and national authorities and nongovernmental organizations. A real effect may only be achieved by maintaining this consolidated effort over time.

Recruiting an investor and creating jobs is usually a long-term project. Its overall success depends on the business ethics, consistency, and transparency of municipal procedures.