Privatization: securing rears
A letter of the State Property Committee of Belarus “Regarding holding of annual common meetings of members of business associations” rules that representatives of state can be appointed to the Supervisory Board of any joint stock company by passing elections when the state has at least one share in it.
Experts regard this new initiative as identical to the “golden share” rule, recently annulled in Belarus. It seems, the state strengthens its positions in Belarusian joint stock companies prior to a large-scale privatization. The state representatives will be protecting state interests while debating and voting on the company’s policy on production, employment, dividends, etc.
The country's leadership has instructed the local authorities to raise minimum wages at enterprises by the end of 2019 to BYN 1,000, which would lead to an increase in the average wage in the economy as a whole to BYN 1 500. The pace of wage growth in 2017 is insufficient to ensure payroll at BYN 1000 by late 2017 without manipulating statistical indicators. In order to fulfil the president’s order, the government would have to increase budgetary expenditures on wages in healthcare and education, enterprises – to carry out further layoffs and expand the practice of taking loans to pay wages and restrict investment in modernisation of fixed assets. In 2010, the artificial increase in wages led to a threefold devaluation in 2011, an increase in the average salary to BYN 1500 will not match the capabilities of the economy and would lead to yet another devaluation.