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Business called seven reasons of the Belarusian crisis

Бизнес назвал семь причин белорусского кризиса

In Minsk presented the project “National business platform in 2016”. It claims that the country is faced with four crises that do not allow the economy to develop.

2 March in Belarus was held Assembly of business circles, representatives of business and government discussed the current economic situation and the reforms needed to overcome it.

Traditionally, the event discussed policy document, which is prepared annually business alliances — “national business platform of Belarus”. At this time, the Platform has the subtitle “Call to crisis”.

The platform declared that in 2015 hit the country just four of the crisis: systemic, structural, cyclical and conjunctural. Seven reasons “of Quadragesima”:

Centralization of decision-making

“The authorities themselves recognize the high degree of uncertainty of markets, increased competition in the global economy, high speed of introduction of new technologies, revolutionary changes in communications, information and production. In this situation, the concentration of capital, resources and property in the hands of the state inevitably leads to the Commission of gross errors”, – stated in the Platform.

The lack of multi-vector foreign policy

The degree of dependence of Belarus on Russia is the result of neglecting the European market, ignoring the most important processes of integration into the global economy. Our country since 1993 leads the negotiations on accession to the WTO. We still have not received the status of country with market economy from the EU.

Stringent price regulation

Price regulation creates confusion for lenders, producers and entrepreneurs in the market of goods and services. Prices in Belarus can not fully play a coordinating, informational function. Manual control of prices exacerbates investment, financial and consumer errors.

Lock private property

“De facto in Belarus is the Institute of interim managers asset, which de jure are private. No private owner may not feel 100 percent property safety. Therefore, the country is dominated by the logic of casual workers, distorted the system of risk management and narrowed horizons commercial projects”.

Investment disorientation

“The Belarusian authorities think that it is better to centrally invest a lot of money in 100 – 150 large projects than to create conditions for the country came hundreds of thousands of small investors with private money. This approach to investment policy has become one of the causes of the high concentration of crisis phenomena in Belarus in 2015 -2016 years”.

Ineffective the institution of bankruptcy

In Belarus refused to liquidate the investment and production errors. There is a strong group of commercially unpromising enterprises, which has become the collective budget is “cleaner”. In 2015, the issue of commercial structures, which, in the opinion of the government, “too-important-to-fail” has exacerbated macroeconomic instability and inequality of economic conditions.

Human stagnation

The existing system of admission to work in the public administration has not created effective barriers to nepotism, clans, regional, sectoral groups and associative fraternities. They blocked access to the bodies of public administration professionals, modern technocrats and policy administrators. The rotation of subjects within one and the same “human cage” indicates a threat for the country personnel hunger. The absence of “social elevators” and open competitions to fill vacancies prevents the optimization of the personnel.

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