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New Adventures of Italians in Belarus

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New Adventures of Italians in Belarus

Lukashenka has invited the Italian business to Belarus again.

He declared it as soon as he arrived to Rome.

"We invite you to Belarus. We can revive our agreements on creation of an industrial zone in Brest. When I visit other states, I always offer to start low, go slow: two-three projects on my own responsibility. I will control their development. If you like it, then ask for more".

Is it worth expecting a great flow of investments to Belarus now? Or, now, the Italian business will listen to those who have already tasted the hospitality of the system with Lukashenka in the lead. Perhaps, the example of one of Italian businessmen Francesco Ranconi would be the most prominent to show the Lukashenka's practical approach.

In September 2004 Bialetti Industrie, one of the largest producers of Moka pots and a vessel with non-stick coating in Europe, registered in SEZ Brest its subsidiary Bialetti Brest. Italian ambitions were warmed up with handsome promises of Brest bureaucrats.

The potential investor was proposed to buy a building of radio engineering plant (Francesco Ranconi did not accept the variant with rent). As soon as bureaucrats saw a rich Italian they burst into hyper salivation. First he was offered to pay $600 000. The businessman was surprised, but agreed to initial the document. However, in a day and a half the price equaled to $800 000 (apparently, the possibility to make a fast buck made their brain dead).

However, that was not the end of adventures of Italians in Belarus. A few days later Brest bureaucrats bred their appetite and asked for $1.2 million. Thus, the whole thing was about an unheated space in a bad condition. The potential investor began to drink valerian. Bureaucrats continued playing cat and mouse. The businessman was given a short sketch of bright outlook to organize production on Tsvetotron. The businessman was ready to pick a glass of champagne, but it all failed to come together: it turned out the local authorities had tried to sell the same premises to different investors.

Misunderstanding turned into a scandal. Italians had no one to address to: Belarus has no Independent Court, there is only Lukashenka's Administration instead of the Parliament, and greedy verticals at places. The circle was closed. Francesco Ranconi launched his business in Turkey.

The businessman was given the building of 20 thousand sq. m for free(!). There was only one condition - to create 500 jobs. And he did that! He created 500 effective jobs (It is, by the way, the issue of "One million new jobs" #МиллионНРМ).

Well, Lukashenka, of course, is able to offer Belarus as the ground for laundering money for the Italian mafia, but neither he nor his government can provide for normal, civilized conditions for businessmen like Francesco Ranconi. This is how the system works.

Belarus needs system reforms, private property protection, independent court, an attractive investment climate.

It is symbolic that the Lukashenka's toy carriage for the Pope was made of macaroni. Cock-and-bull story is one of the fundamental principles of Lukashenka's policy.

P.S. Economy of Belarus stuck in recession in the Ist quarter of 2016. It shriveled by other 3.6%. In crisis year 2015 the first quarter ended by GDP's drop of 2.1%.

The industry dropped by 4.3% (in the same period last year it equaled to 7.3%). Investments to capital assets decreased by 26.3%.

There were 12.7% less transportations carried out (it used to be 6.1%). 28.1% less housing was introduced into service (last year it made up plus 25.6 %).

Retail turnover reduced by 0.9 %, wholesale one fell by 4.5 %.

In January – February 2016 real wage fell by 3.6 % (in the comparable period a year earlier the reduction equaled to 3.2%).

Receivables and payables have sharply increased. Loan debts made up Br630.2 trillion. It makes plus 11% in comparison to the beginning of the year. Overdue loans equaled to Br17.5 trillion, this is 18.4% more than that of the beginning of 2016.

Anatol Liabedzka, especially for charter97.org

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