Belarusian government may review state’s role in economic regulation

After ‘optimising’ the state employees in number, the Belarusian authorities seek to revise their functions. Perhaps, their intention is due to the lack of positive results from previous attempts to reform the state apparatus and due to the need to create a favourable environment for negotiations with external creditors. Nevertheless, the Belarusian authorities seem to be ready for some changes in economic regulations in order to create a positive environment for investors and creditors.

Chairman of the Council of the Republic of the National Assembly Mikhail Myasnikovich have spoken in favour of reasonable bureaucracy.

In the past, Myasnikovich repeatedly raised the issue of state de-bureaucratisation, which however did not lead to significant changes in the economic regulation. An experienced state manager, Myasnikovich understands the existing conflict of interests, when state officials are not interested in cutting back their regulatory functions. The president is unlikely to overcome the inertia in the state apparatus and fully lift restrictions on business, however, some concessions are possible.

Amid the lack of opportunities to ensure 100% employment, the government will be prompted to accept some restrictions on its regulatory functions in the economy. For instance, Economy Ministry officials talked about allowing more types of activity without registering as a private entrepreneur. In all likelihood, by doing so they would aim to legalise shadow economy workers and to reduce the pressure on the population due to the enacted ‘social parasitism’ regulation.

Nevertheless, despite some possible reductions in regulatory activity of the state in the economy, the state will still be a major player in the economy and will continue dominating on the property market. In all likelihood, some liberalisation for business will be due to the need to redistribute excess workforce from state enterprises due to the ‘optimisation’.

Under the pressure of economic circumstances and requirements by external creditors, the Belarusian government may be ready to review the functions of state officials in economic regulation.