Siarhei Balykin: Situation with Belarusan economy is appalling

Anti-corruption meeting conducted by Aliaksandr Lukashenka shows that Belarusan economy is in a very poor state, the economist believes.

Let us recall that on August 1 the head of the state demanded to toughen anti-corrupt measures and measures against economic crimes. In the talk with the EuroBelarus Information Service Siarhei Balykin, the head of the Association of Small and Medium Business, reminded that Aliaksandr Lukashenka struggles with corruption and false entrepreneurship since he first came to power.

- Our country has a long history of fight against phony companies. We have already tried to fight them by means of re-registration as far back as 1996-1999 and have destroyed quite a number of economic management units at a time. And many of those who survived left business after that. As a result these were phony companies who won, because it is only favourable for such companies to be closed down by administrative decision without proper procedures. For example, recently false entrepreneurship register was created; however, companies cannot be included to it without a court decision, and the criteria for such inclusion are rather random. Besides, the deals arranged with such companies can be voided ex curia by decision of tax authorities. And tax authorities do not disturb themselves to adduce evidence and only take the word of the founders of false entrepreneurship register for it. I.e. regular economic management units can be easily recognized as a “false entrepreneurship structure”. In fact, there has been established a small state with racketeering authorities.

- At the meeting the level of shadow economy was established. How can you characterize the named rates?

- I can say that the meeting conducted by Lukashenka and his statement about the shadow sector only demonstrates that the situation with Belarusan economy is appalling. Belarusan Tax Minister says that shadow economy accounts for only 10 per cent of GDP and also includes here illegal trade of vegetables from personal farmlands. If our state wants even this money, it means that our economy is very small and rotten, as nobody struggles with that in the countries with normal economy.

- Do you think that this time Lukashenka won’t fight corruption again?

- The more frequently the administrative measures are used, the more corruption and false entrepreneurship appears. Only trade economy can combat it. However, it seems that all the previous experience of administrative struggle has never, actually, taught the authorities anything.