The People's Republic of Bulgaria is a country located in the eastern Balkans. It is led by General-Secretary Todor Zhivkov, an experienced statesman and political ally of Khrushchev. Bulgaria's communist regime appeared in 1926, when the Romanians and their communist Bulgarian allies resulted victorious in the East Balkans War. These two nations were instrumental to the Trotskyist wave which swept over the Balkans, perhaps more so than the Soviet Union itself, and were the two founding members of the South European Pact. Bulgarian forces fought on the Comintern's side during World War II, and due to its position away from the frontline, many industries of their Balkan brethren were relocated to its territory, creating a large number of Bulgarian machinists, engineers and factory workers which would improve the nation's economic standing later. Amongst the communist world, Bulgaria distinguishes itself for introducing a third type of enterprise to the Soviet dual economic system; state market companies. Salaries in these organisations are dependent on their profitability, making them more competitive than traditional state-managed companies.