Marholin: Authorities Are Most Afraid Of Unrest Of Belarusians At Large Enterprises

The authorities provide immense money to unprofitable enterprises.

Economist Leu Marholin explained to Radio Racyja why the state provides huge amounts of money to enterprises that do not make a profit.

Deputy Prime Minister of Belarus Uladzimir Siamashka and Industry Minister Vital Vouk announced such figures: the authorities plan to invest half a billion dollars in the development of MAZ and BATE. The development of BelAZ has already taken 800 million dollars, and Homselmash needs 800 million.

– Of course, in order to draw any conclusions, one needs to know in detail the investment plans. But the whole experience of public investment shows that they are mostly not effective. In the best case, it is possible to foment the enterprise a little, so that it does not sink completely, and in the worst case, the losses only increase. As for MAZ, the majority of experts agree that this company cannot be profitable of itself, and it should enter a certain group, because it is the smallest truck plant of all known.

– Then why does the state invest money in these enterprises?

– The authorities are most afraid of people's unrest at large enterprises. If these plants are simply closed, then the reaction of workers can be unpredictable. And if nothing is done with these plants, they will die, and people will again find themselves without work. In a word, it was decided to keep these "suitcases without pens" afloat at least somehow. In another way, the authorities are not able to do anything, and the reforms are not on. It is good that they have learned how to manage state money, which, in fact, they do. But with no effect out of it.