This policy brief is exploring the stateof the human capital in Bulgaria by positioning the HCI as abaseline for analyzing the differences and gaps with respectto other comparator countries in the region. The documentproposes a focused discussion on education policy outcomesidentified as key area of policy investments that cansignificantly boost the productivity and human potentialtogether with improvements in required health outcomes.Education policy actions are needed in several areas:expanding access and improving quality of preschooleducation, rethinking the student tracking functions of theeducation system to provide better opportunities for all,strengthening education financing, promoting schoolimprovement policies to target learning, and investing inteacher policies.