The ruling group is strengthening control over assets which it considers important
Financial instability increases political risks and forces Lukashenko’s entourage to strengthen control over the property in the country. In practice this means the abandonment of the project ‘liberalization’, which was carried out in Belarus in 2008 – 2010.
On October 25th, President Lukashenko demanded to improve management efficiency at enterprises with sate shares.
A meeting at Presidential Administration concerning measures to improve the public shares management aimed to strengthen and foster the “success” from the partial re-privatization of Kommunarka and Spartak confectioneries. In particular, Lukashenko criticized the supervisory boards’ actions at enterprises with mixed ownership, which give “away all of the major decisions at Director’s mercy”, rather than securing public interests.
During the meeting it was proposed that the chairman of the supervisory board in a company with state shares (where the number of employees is 15 000 and higher) should be appointed by the President, i.e. he/she should not be subordinated to the investor. Earlier Lukashenko issued Decree № 8, allowing the Presidential Administration to issue additional shares at so-called strategic enterprises.
If these measures are implemented, the government will retain control over the most important public companies, even without the controlling shares. In a way it means that a so called ‘golden share’ rule, abolished in March 2008, is being resurrected. Instead, a ‘Golden Chairman of the Board’ rule could be introduced.
Simultaneously with the adoption of these unpopular among Belarusian nomenclature and business measures, the President reinforces populist patriotic rhetoric. On October 26th, took place a scathing meeting to discuss the Belarusian Olympic team performance in London, where the head of state suggested the Minister of Sport and Tourism, the Presidential Aide for Sport and the two Vice-Chairman of the National Olympic Committee to resign.
In populist terms, these measures look advantageously: both, the seizure of confectioneries from ‘oligarch bloodsuckers’ and returning them back to children, as well as restoring order among the gray mass of corrupt officials. However, for the successful mobilization of the state apparatus President Lukashenko needs to have the mass support of the population. Recent opinion polls show that today the President’s popularity is very low (30%), and that pure populist rhetoric fails to improve it.
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.