Economic recession unlikely to prompt Belarusian authorities to privatisation in 2016
The State Property Committee has published a list of 56 companies and 4 proprietary complexes to be put for privatisation in 2016. There are no economy’s cornerstone enterprises on the list and most companies require financial recovery. Due to special requirements, such as preservation of working places and other financial burdens, only few enterprises may be privatised. It is easier for a potential investor to open a new enterprise than privatise state ones, due to the fact that the state would like to interfere in management at the privatised enterprises even after their sale. According to the authorities, the IMF has softened its position with respect to privatization during the economic recession, therefore the state is unlikely to reduce control over the Belarusian economy in 2016.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.