At the Helm of IME, Bulgaria’s Trusted Voice on Economic & Policy Reform

Svetla Kostadinova, Institute for Market Economics

We partnered with Bulgarian lifestyle magazine EVA to present female leaders from the Bulgarian nonprofit and public sectors. The result was EVA’s Optimistic Issue: 15 Stories of Success. This is one of the featured stories, republished with permission.

Text: Teodora Nikolova
Photography: Kostadin Krastev-Koko

Svetla Kostadinova joined the Institute for Market Economics (IME) in 2001 as an economist and has served as its executive director since 2007. She holds a master’s degree in finance and specializes in policy impact assessment, entrepreneurship, and economic freedom. Under her leadership, IME has spearheaded numerous public policy reform campaigns aimed at protecting individual freedom and limiting the role of the state. She is a fellow of the German Marshall Fund and the American Council on Germany.

Svetla believes that success stems from persistence and preparation. While many people tend to procrastinate or get distracted, she emphasizes the importance of consistency—both personally and professionally—as key to gaining expertise and standing out. Despite recent unpredictable global events, she remains optimistic about Bulgaria’s openness and integration, convinced that progress continues to unfold.

IME’s latest project features a logo of a dancing black cat against a dark gray background. The project provides reliable, up-to-date information about the judicial system and its challenges, enabling citizens to hold it accountable and propose solutions for improvement. The aim goes beyond simply analyzing the judiciary or current political events in Bulgaria; it seeks to change public perceptions. “It’s crucial to show that the rule of law has real-life consequences that affect each one of us.” This sums up IME’s mission: changing public attitudes by emphasizing how systems and hierarchies directly impact everyday life.

Founded in 1993, IME has spent 30 years advancing its mission of providing independent assessments of government policies and serving as a platform for economists and observers to share insights on key issues. Since 2002, IME has published an annual alternative budget proposing reforms, including tax and insurance reductions, optimizing public spending, broadening choices in insurance systems, and promoting financial decentralization. IME’s motto, inspired by Friedrich von Hayek’s quote—“The more the state plans, the harder it is for individuals to plan”—reflects its unwavering commitment to individual freedom.

Svetla, you are ranked among Bulgaria’s most influential women by both Capital weekly and Forbes magazine. How does it feel to be recognized as influential, and what qualities do you think contribute to that?

I don’t see myself as an influential woman. I consider myself part of a collective effort for a free and prosperous Bulgaria. Many positive changes in our country result from the combined work of many individuals, and I am just one of them. Persistence and composure are two qualities that have helped me tremendously in my work.

At IME, we achieve our goals through perseverance. We propose solutions for public policy issues that aim to expand individual and business freedom. Each decision is meticulously analyzed. We understand that it takes time for our proposals to be understood, accepted, and implemented. This is why we engage on multiple fronts—with the media, all stakeholders, opponents, government bodies, NGOs, and parliament. We develop a strategy and execute it with patience and conviction. Even when we face setbacks, we never give up.

What public attitude in Bulgaria would you most like to change?

There is often a pessimistic view that nothing positive happens or can happen in Bulgaria. This is a misconception. Positive changes occur every year, both in the public and private sectors. While it’s natural for people to desire rapid improvement, we must recognize that we live in a thrilling, fast-changing world.

Over the past 10–20 years, Bulgaria has been actively involved in major global developments such as artificial intelligence, the pandemic, online learning, Brexit, the global financial crisis, the rise of online commerce, blockchain, cryptocurrencies, and social media. Today, we have the freedom to travel and work from anywhere, which gives individuals the power to shape their own present and future. Bulgarian businesses are exporting goods and services and competing in the European market. I hope people will adopt a more optimistic outlook on what they can achieve and appreciate the progress that has already been made.

What do you consider IME’s most significant achievement?

IME’s greatest success has been its unwavering dedication to its core values over the past three decades. People who have followed our work closely often say that when they hear a controversial idea in public discourse, they can already predict our stance and reasoning. Over its 30-year history, IME has shaped two generations of journalists, public figures, young people, and citizens who understand, support, and defend the principles of individual and economic freedom.

More specifically, several IME-initiated or supported reforms have contributed to Bulgaria’s recent successes, including the adoption of a flat income tax, business start-up reforms, reductions in insurance obligations, the abolition of compulsory military service, deregulation efforts, and improvements in the judicial system.

Your experience at IME spans various aspects, from independent assessments of government policies to comparative analyses of regional development. What has this experience taught you on a personal level, and how do you handle the challenges?

The biggest challenge for anyone working to shape or influence public policy is finding the right people. No one can reform, govern, or advocate alone. Therefore, it’s crucial to attract capable, knowledgeable, and courageous individuals who have the freedom to act. This principle aligns closely with our belief that economic development and prosperity come from expanding individual freedom.

How does IME maintain its independence, both professionally and personally?

IME has built its independence over the past 30 years by developing skills and expertise that make us valuable. We adhere to a few guiding principles: we avoid partnerships that cannot be publicly disclosed, we constantly build our capacity and explore new opportunities, and we communicate our work transparently. Inside the organization, we prioritize transparency and integrity in all our partnerships. We also collaborate with many other organizations that share our values.

On a personal level, independence is supported by having a strong network of family and friends who help keep me grounded and confident in my work.

What do you believe is more important than economic freedom?

Economic freedom allows individuals to choose, trade, collaborate, and compete as they wish. While economic freedom is essential, I believe basic human rights—such as freedom of speech, equality, and the right to life—are even more important. However, I also think one cannot exist without the other.

As IME’s executive director, you are likely involved in highly significant matters. How do you maintain personal boundaries? Are you different at work compared to your personal life? Do you involve your loved ones in your work? Do you share your work challenges and seek advice?

When I first joined IME, there wasn’t much of a separation between my personal and professional life. However, since I had my two children, my perspective has shifted. My time outside the office is now devoted to parenting. At work, I’m highly organized and detail-oriented; at home, I’m more action-driven and have little time for personal opinions. Although I appreciate advice, I’ve been told I don’t handle criticism well, which is something I’m working on—but not very successfully so far!

What do you enjoy doing in your free time when you’re not focused on financial matters at IME?

Unlike my work, where the results are often long-term and difficult to measure, I enjoy activities in my free time that offer immediate outcomes. Whether it’s engaging in sports, learning a new language, or spending time with my children, these activities provide relaxation and inspiration for my work.

What role does IME’s partnership with the America for Bulgaria Foundation play in its overall activities, and what does this partnership mean to you?

The America for Bulgaria Foundation has been a loyal and proactive partner of IME since the beginning. Their support allows us to engage in initiatives with long-term planning, which is essential for our work. Reform proposals, advocacy, educating the public, and discussing issues with various stakeholders all require resources and time. In times of crisis or opportunity, preparedness is key, and our partnership with the Foundation significantly enhances our readiness.

Where do you see the institute in ten years?

Since its inception, IME has often been reactive, responding to current developments and events, which sometimes slows us down and distracts us from exploring topics directly related to individual freedom. I hope that, in ten years, the IME team will have the opportunity to engage in more in-depth analysis and research, exploring topics with long-term implications. These might include the economics of happiness, the impact of medical advancements on the economy, promoting parental engagement in math education to create more opportunities for children, and understanding the root causes of the negative perceptions of entrepreneurs in our country, among others.

I hope for inspiration and new ideas to keep motivating IME’s exceptional team. I also hope we can attract more energetic and proactive people to join our efforts—because, in the end, people are the key to success.

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