Bulgaria's transitional pathway from socialism to free market liberal democracy has been extremely troubled and hesitant, with the European Union only satisfied that the country had created a functioning market economy in November 2003. Freedom House considered Bulgaria as a parliamentary democracy from 1991, but as a mixed statist-transitional economy until 1998. What accounts for the various delays, obstacles, and setbacks the country has faced since 1989? I argue that for the period 1989 to 1997, there was a lack of consensus among the Bulgarian public and elites on the pace and extent of political and economic reforms. This lack of consensus explains the delayed, inconsistent, and incomplete consolidation of democracy and a free market economy, as it permitted successive governments to avoid tough and unpopular policy decisions, at national, regional, and local levels, and ensured that those reforms that were undertaken were poorly and incompletely implemented. Lack of consensus allowed parliament to draft and approve poorly written legislation full of ambiguities and loopholes, while local politicians and government officials found it politically, ideologically, or economically expedient to delay and otherwise hinder the reform process. This dissertation shows how the lack of consensus is a result of the way Bulgarians experienced the latter years of socialism economically, politically, and socially. The social pact between rulers and ruled remained intact in Bulgaria through the end of communist authoritarianism, and had brought considerable economic, social and cultural development to the country. As a result, the population was not prepared for the inevitable pain of the structural economic and political changes necessitated by the transition to a free market liberal democracy. Focusing on the role of consensus adds a further layer of complexity to the study of transitions, and through the dual case study of Bulgaria and the Rousse region, this study highlights the points of convergence among a range of theoretical approaches, opening the door for greater pooling of knowledge and research findings in future.