Embassy of the United States

Your Excellency, let’s start with the election of Barack Obama for President of the United States.  This event was named the second most important event in 2008 by the listeners of Darik Radio.  What changes does this vote bring to the world?

There were so many reasons why the election of Barack Obama captivated people in the United States and around the world.  One of the first, which I think мany people were astounded by, was the campaign itself.  Just look at the number of precedents that were set and the records that were broken during the course of that campaign.  In American history, and probably in the history of the world, that was the longest, it was the most expensive, and we had, for us, what was I think a record-shattering experience in terms of turnout – more than 130 million Americans participated in this election, which is more than ever before – but also in terms of eligible voters we had a very high turnout – well over 60%.  And that tells us a lot about where our people are, how they are thinking about it.

But there is another factor that made the elections so extraordinary, and that was the role of the Internet.  I think people are still learning the importance, and the lessons about what the Internet can do to bring information directly to the voters.  They don’t need a filter; they don’t need people telling them certain things; they can find out the information themselves. 

But we should not disregard the personal story of Barack Obama.  He is a man whose father comes from a village in Africa; very humble beginnings in Hawaii; he lived without a father for a while; he lived without both parents while he was living with his grandparents; but through the force of his own character, his own talent, and his own tenacity he was able to build a life for himself, to carve a career and then to ascend to the very highest office in our nation.  That’s an extraordinary thing – as an African American, a member of a minority – that is something that I think world politics really lacked. 

But perhaps the thing that was most important maybe for Bulgarians and for world audiences everywhere was a phrase that he used as the title of his book: “Audacity of Hope.”  The audacity of hope – and it’s what many average Bulgarians have come to me and they have said how exciting they found it, how captivating they found the concept and the kind of agenda that he is presenting.

Is it interesting that our listeners consider this event the second-most important event in 2008?  Why?

You’ll have to ask your listeners.  That will be up to them.  I can’t tell you why they would decide on one or another, but certainly I know that for many people the American election – for the reasons that I laid out – has been a crucial event.  For many of the Bulgarians this was important maybe because the United States is a friend and partner, and they know what happens in the U.S. is important for Bulgaria and for other parts of the world.  I know that many Bulgarians care deeply about what happens in America; they care deeply about what happens between America and Bulgaria.

The top event of the year will be the global financial crisis.  Why did this crisis begin in the U.S.?

Excellent question.  Мany people are still asking themselves that question and trying to find the answer.  I’ll give you a couple of answers – my version of it.  First of all – on the technical side: We know that there was a problem with what we call – it’s a technical term – unsecured mortgages.  People were entering into loan arrangements principally to buy houses, which is understandable – everybody wants to own a home, everybody wants security for their families – but many people made a mistake.  They entered into an arrangement that was more than they could afford.  The individuals made a mistake and then the loan organizations, the banks and these other institutions that were setting up these financial arrangements, they made a mistake there.  But all of us can now learn from that mistake.  We are taking steps and I know that many other financial institutions are taking steps to create a better regulatory framework so that we don’t repeat that kind of mistake again.

But also as we have watched this mortgage crisis evolve into a credit crisis, which caused markets to drop and consumer confidence to drop so that people are now not spending, and we’ve seen major American automakers, for example, who are closing operations for a month.  I was reading recently – fifty-thousand workers will be put on furlough for a month.  Those are dramatic results.

What are you planning to do now?

We have to now use this crisis as an opportunity and we need to do two things.  First, we need to address the regulatory framework so that we don’t have the specific problems at the same time that we put forward a stimulus program, a program of government spending so that we can inject energy and vitality into our economies and get the global economy going again.  But the second thing we have to do, and this is really key, this is the most important thing – we have to see the crisis as an opportunity.  We have to say, OK, bad things have happened.  How can we turn this into our advantage?  And what we are talking about in the U.S., and I know people across Europe are talking about this, is to say: use this massive government spending that is coming in the U.S. and Europe to fix the things that we should have fixed a long time ago.  In the U.S. we are talking about expanding broadband Internet coverage across the nation, we are talking about transforming old outdated industries so that they are high-tech, so that they are environmentally friendly, so that we protect our environment.  We are talking about turning our primary and secondary school system, which is dropping in global ranks, and trying to make it one of the best in the world. 

The same things, the same transformation things could go on here in Bulgaria.  And that the stimulus package that is coming from the EU and that the government here is looking at can go beyond the traditional elements and to say not just where we want to be tomorrow or next week but where we want to be five years from now.  That’s really a crucial question that people need to be asking and answering.

Because of the crisis, do you plan to withdraw your investments in Bulgaria?

Well, first of all, withdrawal of private investments does not depend on the U.S. government.  But it is important for all of us to acknowledge the reality of the financial crisis and every company around the world – American, Bulgarian, of whatever nationality – all of them are taking a hard look.  They are reassessing investments, rebalancing cost and benefits, and they are also taking a very hard look at how much risk they are prepared to take.  Now as the companies do that, what the countries, the governments, need to do is to acknowledge that reality and to say we – whether it is the U.S. or Bulgaria – but let’s talk about Bulgaria since this is where we are – the Bulgarian government needs to make this place one of the most attractive places to invest anywhere in the region.  And I know that sounds like an ambitious statement, and it is, but it’s also a very achievable one.

Do you think that Bulgaria is the most attractive place to invest in the region?

I think Bulgaria can be the most attractive place to invest in this region.  And I think there are two steps that need to be taken in order to make that possible.  The first one is to create a track record so that the companies that have already invested here can be the ambassadors, can be the people who sell their experience to other companies.  And that means resolving all the bureaucratic delays and issues that are outstanding with the companies that are already here.  But secondly, the government can take steps to build a program of incentives.  There are a variety of things they can do.  There can be rebates on taxes.   There can be special arrangements on tariffs.  But there can also be simply a statement that is carried through with concrete steps to say – we want this country to draw innovation, we want it to draw high-tech, we want it to draw companies and workers from around the region and make it possible for foreign investors to come here.  You know, earlier this week I participated in a signing ceremony for an American company that has just started a new project in Bulgaria, which is a very innovative approach.  It’s a wind farm – it will provide clean energy, it will capture the natural wind and turn it into the electricity that Bulgaria needs.  It will protect the environment.  It does it in a very high-tech way, and it comes with a company that has world-class standard both in terms of its internal corporate behavior and how it approaches its relationship with the community around it.  It’s a great news story.

Do you know more names of investors in Bulgaria?

I know a lot of names of first-class American companies who are present in Bulgaria.  If I mention some and don’t mention the others, I think I might hurt some feelings.  American companies are in virtually every sector of the Bulgarian economy – they are in manufacturing, they are in beverages and food production, they are in distribution, telecommunications, the hotel industry, they are in energy.  And that’s an important fact because it shows you that in the same way that we don’t have a one-dimensional or one-sided political relationship, we also don’t have a one-dimensional commercial relationship.  We have a commercial relationship that’s across the board.  And there are companies that have been here for a long time and who are truly invested in, they are committed to Bulgaria.  And when these companies raise issues, as they recently did at a public forum that I was really pleased to participate in, what they are saying is let’s work together, let’s fix some of the procedural problems that we have identified, let’s throw open this economy for a dynamic innovative approach and position Bulgaria on the cutting edge.  That’s what I think this country deserves to be, needs to be, and can be.

Who likes Bulgaria more – Brussels or Washington?  Does America share the EU criticism about Bulgaria?

You know, questions of liking and loving are always a little complicated to answer.  So let me offer you the following answer.  It is clear that Bulgaria has a significant problem with corruption and organized crime.  That is an undeniable fact.  And in fact denying is really a waste of time.  The point now is not to deny it, the point now is not to complain, talk about double standards, talk about who’s better, who’s worse.  As I have pointed out to people recently, no country is immune from the issues of corruption, including the U.S.  Bulgaria is not alone in having corruption; it is not alone in dealing with corruption and organized crime.  The U.S. is committed and enthusiastically working together with Bulgaria to solve the problems of organized crime and corruption.  The focus now has to be on concrete steps to move forward.

People have been talking about this issue for far too long.  And it is now that concrete steps need to be taken, and I’ll give you two examples because I know you are getting ready to ask.  First, there has been a lot said back and forth about the decision the EU took to cut assistance money to the PHARE program.  I know that was a hard decision and I know it was received here with some unhappiness.  The point now is to take the steps necessary to ensure that future EU assistance money, which is coming in a very significant amount to this country, is controlled properly, and what that means is that oversight mechanisms are put into place, that the National Auditing Agency is independent and benefits from expert consultants, and that Bulgaria sets the gold standard for transparency and control so that this money that is coming through the Bulgarian government, but that is for the Bulgarian people, ends up benefiting the Bulgarian people.  And that is a really essential element.

But there is a second thing that needs to happen as well.  First, the control of the EU money and to make sure that programs are effective and the money is effectively spent.  But the second thing is for action to be taken against organized crime and corrupt government officials, and that means that the prosecutors need to gather court-admissible evidence, indict the people that are guilty, and that the courts need to proceed in a quick and effective fashion toward conviction.  That is the job of the prosecutor.  That is the job of the courts.  And that is what needs to happen.

Do the American institutions believe in Bulgaria about fighting OC and corruption?

I think I just gave you the answer in terms of what needs to happen – the two things that need to happen now are control and oversight of the money and practical steps in the judiciary with the prosecutors and the courts.  But to the larger question that you asked – does the U.S. believe in Bulgaria, in the Bulgarian people?  We believe that this country has a very bright future.  We believe that this country has made tremendous progress over the course of its accession to the EU.  We also believe that now is the time for concrete and demonstrable progress forward on these very key issues.  And I said to you that Bulgaria is not alone, and I meant that.  We are working together with ministries inside this government.  We are working together with civil groups, which also try to move forward on this, and let me explain why. 

I know that for many people corruption is a large and kind of abstract concept.  But it’s actually a very personal thing. When corrupt officials take money from the EU or out of the government budget and they put it in their own pocket, they take it out of your pocket.  When organized crime siphons off things that should be happening in the society, they are hurting the people who are listening to your program, they are hurting average Bulgarian citizens.  What I believe is the people in this country deserve better.  They deserve to live in a place where things work, where people trust their institutions.  They deserve what they have worked for.  Because it’s the people of Bulgaria that worked to get into the EU, did the hard effort over the course of the many years of transition, and it’s now when they need to be able to say: yes, we’ve made progress, and point to practical steps that prove it to themselves and prove it to the world.

Isn’t it early for Bulgaria to withdraw its troops from Iraq?

No it’s not early.  On the contrary – the Bulgarian soldiers, which is – you know, Bulgaria was one of the earliest members of the coalition, and this is an interesting fact that I think many people don’t focus on: if you look at Bulgaria’s contribution on a GDP basis, if you look at the size of Bulgaria’s population, and its economy, Bulgaria actually has been one of the largest contributors of troops to the region.  These forces which did a wonderful job during the course of their deployment in Iraq have successfully fulfilled their mandate.  They are not coming home early.  They are coming home right on time.  They were sent to do a job.  They did a competent and professional and expert performance on this job, and they’ve now come home.  I want to use some words which I think are important words here – they come home as heroes and as patriots.  Those Bulgarian men and women – and it was actually a couple of thousand during the course of the years who served there in places like Karbala, Ashraf, Camp Cropper, they served just outside Baghdad patrolling the streets – these soldiers were very brave, they did very hard work, and they come back proud of what they accomplished.  And they have not just done something which was great for themselves or for the Bulgarian military, but they’ve done something which every Bulgarian across this nation can take great pride in, because they distinguished themselves and their nation in a very, very difficult circumstance.  They bring stability to a really crucial part of the world.  That’s an extremely important thing.

Will the American position about the military operation in Iraq change in the light of the negative international reaction and the recent shoe incident?

It was a very, very unfortunate incident and I was very sorry to see it.  I know many other people were sorry to have seen something which indicated that a person had lost their words and reverted to a very crude action.  But in terms of policy – no, that does not have an impact on policy.  President Bush has worked hard throughout the course of his administration to try to bring about peace and stability in Iraq and to build a better future for the people of Iraq and that’s something that we need not to lose sight of.  Barack Obama will take over as President on January 21 – so there are just a few weeks left when we’ll have a new administration, and he and his senior advisors will decide the policy that they want to pursue.  We’ve heard some things about a new direction that President-elect Obama will take.  We look forward to hear more about what the specifics of his policy will be, but as you know we’ve recently concluded an agreement between Iraq and the U.S. that has already laid out the roadmap for the withdrawal of the American forces and the readjustment of security in that country across the board.

How would you estimate the first whole year of the existence of the American bases in Bulgaria?

Tremendous success.  I estimate it as a tremendous success and one that I’m very gratified by.  Let me start by clarifying for some of your listeners – you know that what we are talking about through this Joint Task Force – these are Bulgarian bases under Bulgarian command.  The U.S. and our forces is an invited and expected guest.  We come into Bulgaria, we exercise together with our Bulgarian friends and partners, and then we leave.  So that’s the arrangement that we have.  It is an arrangement that we appreciate very much and are very pleased with.

As you know, as part of this arrangement we committed somewhere over 70 million dollars for an upgrade of these bases which will benefit both Bulgaria and the U.S.  We found during the course of our joint exercise that we learn a great deal through the exercise and our Bulgarian partners benefit as well from this joint exercise.  We become more effective; we both become better as a result of this.  I think is the key message to come out of here and that’s the message that when President Parvanov, as Commander-in-Chief, visited the Bulgarian bases during the course of our very major exercise this year, and saw what was happening and others saw what was happening there.  It was clear that this is something that is good for Bulgaria, it makes the Bulgarian military more effective and it makes Bulgaria as a NATO member clearly a strong contributor to the NATO Alliance and a country that’s ready to stand up and fulfill its responsibilities of an Alliance member.

Do you think that the U.S. military presence will be extended not just in terms of Bulgaria but Europe-wide?

When you bring out the crystal ball to predict the future I’ll stand with you and stare into it.  But for now what we have to proceed on is the basis of the agreements that we’ve reached.  What we have agreed upon both nationally and multi-nationally with our partners.  We have no plans to go beyond those agreements, but we do have plans to fulfill those agreements and to work together in as robust and active a fashion as we can here because it is good for us and it is good for Bulgaria.

I’d like to go to America without a visa.  When will this be possible?

That’s a wonderful way to phrase your question.  And the answer to your question is that you will be able to go to America without a visa and that Bulgaria will be admitted into this Visa Waiver Program just as soon as it has met the qualifications, just as soon as Bulgaria has met the criteria that it has agreed to meet for this program.

Tell me about those criteria?  Is it enough for me to just have a biometric passport?

It is not enough, and let me explain.  There are three criteria that the country of Bulgaria must meet before you get on that airplane.  First, you must have a biometric passport in your hand, in your pocket, and there must be a system of biometric passports throughout the country.  Number one.  Number two – the overall refusal rate for Bulgarian applicants for visas must be below 10%.  And it is not yet there.

And how many percent is it now?

It varies from month to month, and so it’s hard at any given time to say what it is, but trust me it is above ten percent and frankly the trend lately has been a bit higher.  The overall trend line has been going up rather than going down.  I hope that’s going to change, but that’s the second issue.  And the third issue is security criteria.  We need to have assurances that there are not security problems here that would then travel to the U.S., and this takes us back to the issues of corruption and organized crime.  I can see the frown on your face.  What we are doing is working together – the U.S. and Bulgaria – we are working with the different ministries, we have a game plan, we have steps we’ve put into place because we want Bulgaria in this program.  We want Bulgarian students and business people and tourists to be part of it because it’s good for us and it’s good for the relationship.  And I understand why Bulgarians want to travel to the United States without the visa.  I understand the symbolism, I understand the emotional content behind that question, and I’m committed to working to help this country meet the required criteria so that it can become a reality.

Last are the impressions from your first months in Bulgaria?  What is your opinion about the Bulgarian politicians?

I would leave opinions about individual Bulgarian politicians to the people and the voters of Bulgaria.  That is a subject for them to consider and decide upon.  But I can tell you as an American diplomat and also as someone who has now become a resident and a neighbor and a personal friend to many Bulgarians that I think it is a terrific place.  I have traveled around this country to different cities out into the countryside.  I’ve also done a lot of reading about Bulgarian history, I’ve explored the Bulgarian culture, music, the arts – I’ve been to art galleries – it is a wonderful place.  And I will tell you honestly, it is a place that I think is not sufficiently appreciated for its talent and its humor and its ingenuity either by the outside world and, or in some respects, by the people of Bulgaria.  I was recently reading a beautiful passage of Bulgarian history, by Paissiy Hilendarksy, which was really beautiful – a monk who was writing right before the national revival period, and he was calling upon the citizens of Bulgaria both to unite in their national identity but also to be proud of what they’ve done and who they are.  It’s that call for pride that I found so compelling and that I have thought about as I’ve looked around this beautiful country and explored some of the really fascinating things and people.

What are your plans for Christmas?

Bulgaria is our home and we will enjoy Christmas at home here in Bulgaria and we are actually planning to have a traditional vegetarian meal for Christmas Eve.  And we want to stay here and enjoy all of the great things this place has to offer.  And we are hoping for snow.  I want to wish happy holidays to all your listeners and readers and I am looking forward to working and living together in the upcoming 2009.