Posts Tagged economy
Belarus used to be one of the most technically advanced republics of the Soviet Union. Today, 21 years after the collapse of the USSR, it’s just one of the most Soviet. Years pass, but certain qualities stay.
Belarus’ strategic efforts to attract investment and modernise the industry are overshadowed by presidential orders and decrees. Recently at the stroke of a pen two of its biggest candy makers were nationalised. Decree No9 on planned reconstruction of the wood-processing enterprises also forbids their workers to quit their (yet poorly paid) jobs.
2012 is the Year of Books here, 2013 will be the Year of Frugality.
The country starts paying off its debts next year and plans no further loans so far. It is unlikely that they could get any from the West due to the lack of (promised!) structural economic reforms.
But Russia can never fail a true friend, even though this friend failed to fulfill the precondition for 2012, a $2.5 million privatisation. Moscow already signaled that the last of tranche of its EurAsEc grant ($440 million) will be wired in December.
Despite the difficulties, Belarus aims high. There are lists of factories for sale, with impressive price tags. For example, the state share of Belaruskali potash company can be acquired for $32 billion.
These attempts to sell the crown jewels remind me of a story about a neighbour, who hoped to sell his ancient car for $8,000. Just because he badly needed money.
I don’t mean to underestimate Belaruskali, it has some 40 percent of the world’s potash fertilisers market. But if you want to be effective, you have to be realistic.
Now all eyes on economic security! Economy should be economic was the Soviet slogan.