the same period, but they held only 2% of the arable land. The fragmentation of land was due to family inheritance patterns and the need to provide land for the growing rural population. In 1930, nearly 50% of the agricultural labor force was unemployed, and winter employment dropped to 30%. Deflation and increased taxes to stop foreign debt caused the total income of the rural population to drop down half of it between 1929 and 1933. The industrial sector is weak and does not play a significant role in the economy. Between 1895 and 1928 a number of measures were taken to stimulate industry, such as duty-free imports of machinery, tax exemptions and low freight rates. In the period between World War I and the Great Depression, especially between 1926 and 1929, industrial output doubled. The increase was mainly in textiles, pottery, and electricity; almost all other industries, including milling and food processing, leather, woodworking and metalworking were weakened. In the 1930s many of the incentive measures were withdrawn, and the establishment of new enterprises was virtually prohibited. Existing ones continued to be uncompetitive. By 1941, there were 3,467 private, 130 state-owned, and 275 cooperative enterprises in the kingdom, with an average of 26 workers. In that year, 41.3% of industry consisted of small-scale manufacturing and handicrafts, 54.6% of larger-scale manufacturing, and 4.1% represented construction activities. Internationally, Bulgaria lagged behind the leading European industrial countries. See also History of Bulgaria History of Bulgaria (1878–1946) References Bibliography Khristo Angelov Khristov. Bulgaria, 1300 years. Sofia, Bulgaria: Sofia Press, 1980. Pp. 192. States and territories disestablished in 1946 Bulgaria Bulgaria 1908 in Bulgaria States and territories established in 1908 Bulgaria 1946 disestablishments in Europe 1908 establishments in Europe Bulgaria Axis powers History of Bulgaria