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Authorities not to Live on Their Own Plans, Experts Say

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Authorities not to Live on Their Own Plans, Experts Say

"Only slogans and no specifics", economists commented on the new development plan for the next five years.

Until 2020 Belarus "must take the economic growth exceeding average ones in the world, the inflation is subject to 5% decrease." On April 5 the "House of Representatives" adopted such objectives for 2016-2020 years.

According to experts, the program is made up of "right slogans", which have been voiced for 20 years already. Thus, it misses specifics, and does not mention mechanisms promoting the country to come out of the profound crisis, intex-press.by writes.

What the Program Is About

The full version is still absent on open access. The only way to form a view of it is to address to statements of Prime Minister Andrei Kabiakau, who's presented it to "deputies".

According to him, the document involves 10 major objectives, "which must provide for improvement of the quality of life."

Andrei Kabiakau stated that the document specified three conditions for better economy functioning:

1. To guarantee macroeconomic balance with a gradual inflation reduction up to single values already in 2017 while reducing real interest rates and inflation to 5% in 2020.

2. To achieve the volume of gold and currency reserves that is not less than three months' volume of imports in the end of the five-year plan.

3. To provide for non-debt financing of the country's balance of payments and the formation of international reserves.

Besides, the plan specifies the complex steps grouped together in five main blocks: measures on restoration of competitiveness of the industry sphere, lowering costs and restructuring of energy and housing and public utilities block, job creation, development of small- and mid-size business; infrastructure and construction complex: mechanisms of lowering costs, export growth and diversification of construction materials; the implementation of social programs to improve the quality of life.

Until the end of 2016 the government intends to decrease rates for commercial credits to 24-27%. Credits will be granted only for effective projects. The share of export of goods in new perspective markets is subject to increase to 10%.

Leanid Zaiko, economic expert: "There will be no one to be responsible"

- Why is the program kept in secret? They are afraid. We can only be onto its content. And there in nothing to be aware of, it has nothing. Lukashenka says we do not need reforms. It was needed to create something to make someone go somewhere.

I find these theses published hilarious. The most hilarious one is the growth exceeding the average one in the world. It makes up only 2%. What is the obstacle? Let they have the tempo of Vietnam - 8%! They wanted to state it, the crisis is getting worse. Will we voice 3%? Let these 3% be higher than the world ones!

I think the document will be forgotten in 30 days, 16 hours and 15 minutes. The program is developed until 2020. I guarantee that the Prime Minister and other key minister will not take their positions in 2020: there will be no person responsible.

Stanislau Bahdankevich, ex-head of the National Bank: "The program misses specifics"

- The program, having voiced for 20 years, cannot guarantee any changes. The main thing which it misses is absence of sources, which are necessary to animate the economy.

I saw nothing that could contribute to revival of the economy. To do this, radical measures on reduction of taxation, restricted interference of the state in business and industry are necessary.

The documents says enterprises must stop being loss-making. However, it does not specify the way. It also keeps silence about the necessity to reduce a number of employees, as well as about the necessity to amend the enterprise management system to prevent interference from above.

It happens because the ruler does not see the poor state of the economy. He says all the time that there is no crisis and an old ineffective model should be upgraded. If he recognized the crisis in the economy and the management system, he would engage young and wise specialists in the system.

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