IT-Pros: Not Sure Lukashenka’s Smart Enough

The experts seem skeptical about the “IT Decree”.

Mass media reported yesterday that Lukashenka’s decree on simplification of functioning of the High Technologies Park was under preparation. It was reported this Decree would turn Belarus into an “IT Hong Kong for the Slavic world”.

General Manager of a Minsk IT-company-member of the HTP commented upon the innovations for the Charter97.org on condition of anonymousness:

- Thirty years ago, Deng Xiaoping proposed the famous formula "one country - two systems": in one state, the capitalism of Taiwan and Hong Kong and the socialism of mainland China can coexist. Lukashenka decided to try himself in a similar role by choosing the High Technology Park as his Hong Kong - which follows from the news about the current discussion of the draft decree on HTP in the government agencies.

The official text of the draft bill has not been published yet, but some serious websites and key figures of the Belarusian IT published the digests of the proposals which this Decree contained. The digests show that rather competent IT-people were engaged in the development thereof (I think at least Viktar Prakapenia, and maybe even the Hurski brothers, participated in it), and really serious things got into it.

Let us consider the said proposals one by one:

1. Considerable expansion of the list of activities accepted to the HTP, and, correrspondingly, of the number of potential residents.

This means that not only almost any IT companies (previously there were nuances) will be able to enter, but also the companies practicing non-IT high-tech (which will allow hundreds to get to the "island", and there may be thousands of non-programmer engineers and scientists afterwards), and also, what is extremely important, investment funds - there are chances that this will help to keep at least some of the start-ups growing like mushrooms after the rain in the country, many of which now have the main development path of searching for investors or incubators and moving the whole team abroad.

2. Cancellation of subsidiary responsibility in case of bankruptcy for the HTP members.

One of the craziest Belarusian norms, due to which, it is only possible to handle any business here only risking own property, even if you are not a manager but a minoritary owner. It’s terrific they are going to cancel it for the HTP residents, but it’s sad they won’t cancel it fully.

3. Simplification or abolishment of currency control.

This refers to the decrease of risks connected with the national Belarusian fun – devaluation and numerous rates, for the companies.

4. Simplification of obtaining a residence permit for IT-immigrants, and start-up visas.

In principle, specialists from Ukraine and Russia are now moving here without any problems, nevertheless, any simplification of bureaucratic procedures can only be welcomed - it is a signal to the neighbors that our doors are open.

5. Separate institutions of English law – in particular related to shares and warrants.

Now, the companies which want to offer warrants to their staff are forced to open front offices in other countries (Great Britain, USA).

6. An opportunity to make agreements on non-competition with employees.

Non-competition is most often understood as a ban on working with direct competitors of the employer for a certain period - in cases when an employee can "take away" valuable ideas and knowledge. Among the IT people themselves, the attitude toward such agreements is often negative (and in different countries and even some US states it is regulated differently - in California, for instance, it is forbidden), but for some companies the possibility of such agreements is an extra argument for.

7. Milder demands regarding accounting documentation.

This is extremely useful for small companies-beginners as it lowers the entry threshold.

8. Legalization of activities connected with blockchain and cryptocurrencies.

Blockchain technologies will significantly change the world in the nearest 5-10 years, there is no doubt about it. The uniqueness of the situation with them is that (unlike, let us say, the technologies connected with artificial intellect) the main barrier on the way of introduction thereof is legislative regulation in different countries which seem afraid to lose control and release a genie from a bottle. At present moment, coming out of the grey zone and legalization all over the world have just been started (Japan, Switzerland, South Korea go ahead), it’s not too late to jump into the train and get a piece of this pie. And the pie is very big and tasty.

9. Legislative base for elaboration of technologies related to autonomous cars.

This is the letter for the concrete addressees - Gett and Uber. Both companies actively hinted on a possibility to open development centers in Belarus (Gett already has a besa in Minsk after purchasing Juno).

What is the bottom line?

The bottom line of the project is an island of common sense and legality, which will swim merrily in the gross stinky swamp of the market socialism. Lukashenka needs money and at least some success, Yancheuski needs to demonstrate to Lukashenka that he is way cooler than the recently dismissed Tsepkala, IT-pros need everything listed above. It’s a lucky coincidence and really can bring good results – more companies, more people involved in the probably only sphere in Belarus which gives an opportunity of a decent living; correspondingly, an inflow of at least some extra money to the accompanying branches – education, health care, services.

Will it work?

It will if the authorities are smart enought not to dig out and eat the potatoes they planted to cope with hunger.