Government has overimplemented plans to liberalize economy?

The government of Belarus was expected by March 10 to have implemented 24 positions in the plan to liberalize the economy. However, the web site of the Council of Ministers mentions 28 documents, passed during the implementation of the plan. The plan of immediate measures to liberalize the conditions of economic activities in 2009 was approved on January 16. It comprises 52 positions, including among others the abolition of some wage restrictions, the simplification of the taxation system, the reduction of office rental fees, and the improvement of price regulation.


Many positions that were to be implemented in February or early March are yet to be implemented. Alexander Tsimashenka, a spokesman for the Council of Ministers, says the timeframe is not mandatory. Some resolutions were even passed ahead of schedule.


“The schedule is working. Officials set their schedule for themselves. That’s why some documents were passed ahead of schedule. Some still require an additional approval. Therefore, this is a normal working process”, Tsimashenka said.


The web site of the Council of Ministers also contains a special section devoted to the implementation of the plan. It lists both the already implemented and planned activities. The ministries are yet to submit their progress reports. All the information is monitored by Mr Tsimashenka himself.


The plan to liberalize the economy lists 52 positions which actually unite the activities for 2008 and 2009. Secondly, it also posts the resolutions which are not part of the either plan. But Alexander Tsimashenka describes them as the ones that also push our country forward on the path of liberalization.


Economist Yaraslau Ramanchuk approves of the plan. However, he reckons that this is being done just due to formality. In the view of Ramanchuk, the current policy of the government demonstrates that it has not yet begun implementing several important priority measures. Anything done with those positions makes no sense of the whole think, in his view.


Ramanchuk: “The position that deals with the price liberalization has not been implemented. Because prices still remain under the control of the state. The currency market liberalization has not started, either. It creates difficulties for investors and enterprises. There has been no progress in privatization. There is no progress in reducing taxes and abolishing the licenses for retailers. It is good when plans are implemented. But what we face is a formal attitude mainly for reporting not for real work”.


According to the web site of the Council of Ministers, the list of the implemented measures includes the resolutions in the field of taxes, rental costs, certification, pricing, wages and others.



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