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Belarus is rapidly losing currency revenue

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Belarus is rapidly losing currency revenue

Adherents to the socialist policy prevail in the government.

Within six months of 2016 the country earned $3 billion less compared to the same period last year. Instead of fixing the core of failures the government relies on spells.

The currency revenue, according to the National Bank, equaled to $13.7 billion in January-June. It is less than 18%, or $2.96 billion than in the first six months last year.

Export drops not only with commodities (by $2 billion), but also with produced Belarusian food and agricultural products. The negative dynamics of exports has continued for the fourth year. Experts are not optimistic about the matter, despite plans of Belarusian officials to reduce the cost of production and investment attraction.

- Drop in exports of Belaruskali, our refineries, auto industry and other Belarusian industrial giants form the loss of revenue. The reason for it is clear as well - high production cost and low competitiveness, economist Leanid Zlotnikau answered EuroBelarus. - Again, it is clear that it is needed to invest much money and to take substantial changes in the organization, as well as to introduce new technologies to improve competitiveness and reduce cost...

There are many things to be done, like it was in the Baltic States, Poland and the Czech Republic and other countries of the socialist camp. But it takes much time to switch to other model, as well as the urge of the government to make changes. Therefore, despite the fact that everyone, including the government, knows what to do - nothing is being done. It will be even worse. Still measures taken by the government, for example, under Decree №78 remind of the same prescription of a chief doctor to all patients in a hospital.

In addition, according to Leanid Zlotnikau, supporters of socialist ideas keep a lid on reformers in the government.

- How much time is it possible to survive with such position? It depends on many factors - both political and economic. But we see North Korea, Cuba, who, so to speak, live in such conditions for long. Although Belarus has recently mentioned privatization, not a large-scale one, but at least a small part of enterprises.

It has been decided to allocate some money to support small businesses. In general, it's a drop in a bucket that does not make a difference. There are a lot of people in the leadership, who still adhere to socialistic model which turn blind eye to the current situation.

As regards the adaptation resource of the Belarusians that seems to be boundless, Leanid Zlotnikau offers to refer to works of sociologist Pitirim Sorokin, the creator of social stratification and social mobility theory.

According to Sorokin, the core of revolutions lies in suppression of basic needs of the majority of the population in the existing social system, in ineffectiveness of the system and law enforcement bodies. According to Sorokin, reforms carried out by legal and legislative means are the only way to improve the situation.

- There are a lot of ways here to influence the society - by force or by propaganda. And what concerns the economy, there is optimism.

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