The primary objective of this U.S.-Bulgaria cooperative research project between Dr. Robert Begg of the Indiana University of Pennsylvania and Dr. Boian Koulov of Sofia University is to study the impact of current changes in Bulgarian national policies on the regional organization of manufacturing. Efforts will focus largely on a case study of the Burgas region of Bulgaria chosen because it is the fastest developing region and the site of a massive petro-chemical complex with manufacturing heavily concentrated around the city of Burgas. The researchers intend to examine the effects of the decentralization of administrative and economic decision-making on the territorial organization of manufacturing as Bulgaria moves away from a centrally planned economy toward a market-oriented economy. In order to understand the changing pattern of production and the causes, the researchers will: establish the historical context and baseline data, identify and analyze national policy instruments, and undertake fieldwork in the Burgas region. Results should help chart the socioeconomic impact of new national policies on local economic planning, decision-making at the plant level, firm start-ups and plant failures. This project in geography and regional science fulfills the program objective of advancing scientific knowledge by enabling leading researchers in the United States and Eastern Europe to combine complementary talents and pool research resources in areas of strong mutual interest and competence.