The government launched "systemic" implementation of "presidential orders"

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April 22, 2016 17:49

Regardless of the ambiguity of concrete means to implement the controversial governmental economic programme for 2012, there will be no further discussions of any adjustments or alternative development programmes in 2012. The readiness of the government officials to implement the plan becomes a criterion of their loyalty and professionalism.

On 7 and 9 February meetings of the Council of Ministers were held. Prime Minister Mikhail Myasnikovich said that in order to “implement presidential decrees” the government “must implement consistently” the projected targets adopted for 2012 (GDP growth at 5-5.5%).

The command nature of the Belarusian economy and centralized administrative style of management have been reaffirmed. Economic arguments do not have serious impact on the determination of the economic policy.

Mikhail Myasnikovich’s government in November 2011 was ready to abandon the high GDP growth rates and to defer the projected plans for the next five years until better times, supporting their position with arguments and figures. However following a three months fight with the Presidential Administration, the Government agreed to implement the plans and orders of the President, no longer questioning their substance and / or benefits.

The Belarusian government plans to achieve the GDP growth via increased exports and foreign direct investment, acknowledging insufficiency of the domestic resources. Regardless of the obvious utopianism of the plans (the economic crisis in the world, lack of competitiveness of Belarusian products, poor investment image of the country, etc.), in February the government issues formal declarations again and orders all state agencies to attract FDIs and to implement an action-plan to attract them (and export growth, import substitution indicators, etc.). It says a lot about the quality of management in the public administration.

Moreover, during the meeting of the Council of Ministers M. Myasnikovich personally instructed the Head of the National Bank of Belarus Mrs. Yermakova to provide the economy with the maximum of credit funds, non-emission by nature (it is a new trend in rhetoric, which is optional for implementation). In a similar way (without resorting to printing money) the government plans to increase workers’ wages.

The Government intends to increase incomes via increase of productivity. However, the Ministry of Economy assessed that due to the threefold devaluation in 2011, Belarusian incomes fell to ... the level of productivity. Therefore, what should be the level of the production growth in order to reach the level of earnings of 2010? In particular, if budget revenues are spent on current consumption without any hope for modernization of the economy.

De facto, increased incomes for the population (to USD 500 by the end of 2012 and USD 800 by the end of 2015, the year the following presidential campaign), if such a decision is made, will lead to a massive emission and a new, even deeper crisis. In any case, the government once again initiated populist rhetoric. Therefore, high level officials like Mr. Snopkov, occupying the post of the Minister of Economy, stopped paying attention to their image as professionals and men of their word, and started reiterating the utopian promises of President Lukashenko.

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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.

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