Belarus considering alternatives to privatization

Belarus considering alternatives to privatization

Belarus may introduce the institution of trust management of enterprises. On February 9 the Government presented the new legislative initiative to the President. Its meaning is simple. Unprofitable plants, factories and state-owned agricultural farms will be given to private investors temporarily (for five years).

The new leadership should help restore the work of these companies, and in return the temporary managers will keep part of the profits.

According to officials, this is a good alternative to privatization. The president insists that one must carefully consider all the details and not get bogged down in red tape.

Alexander Lukashenko, President of Belarus:
How many unprofitable enterprises did these managers save? I don't remember any. Therefore, should we start it altogether? Is it so difficult to sit, take your head into your hands and see how life goes on and only then make these suggestions? We have our owner - the state, we distributed the property between the district executive committees, regional executive committees and the government. Let's manage them. We can't find normal managers to manage companies properly but you are proposing to find trust managers somewhere! Can't you make it easier and clearer for our people and managers? Why follow the example of the Russian Federation? Let's see what we need ourselves and what effect we would get.

The head of state demanded to consider the feasibility of the new initiative, so that it does not duplicate existing laws. The new economic proposal may relate to more than 2,000 organizations. Every sixth is the organization of agricultural profile.