The article analyses the transition to a market economy and the impact on its competitiveness. On this base the author brings out two strategies for market reform: first, orientation towards increasing competitiveness; second, reallocation, causing decrease in competitiveness because of slowly building of adequate market institutions.
It presents comparative analyses on the consequences of implementation of reallocation strategy in Bulgaria and competitive oriented strategy in Hungary. The circumstances and preconditions for transformation from a reallocated to a competitive oriented strategy are defined and on this base three scenarios of market reform perspectives in Bulgaria - optimistic, pessimistic and realistic are outlined.