Will trust management replace privatization in Belarus?

Will trust management replace privatization in Belarus?

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 operation of these companies, and in return the temporary managers will keep part of the profits.

According to officials, it's 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 also warned that this new provision in law must not lead to raider attacks.

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 these companies then! We can't find normal managers to manage companies properly but you are now 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 could get.

The head of state asked to assess the feasibility of the new project so it does not duplicate the existing legislation.The novice must resolve questions of financial improvement of enterprises and attract bona fide investors.

Andrei Gayev, chairman of the State Property Committee of the Republic of Belarus:
A legal entity that starts managing the property complex is able to expand its production on the existing basis. That company whose property is taken into trust management is able to use raw materials, dealer network. So both subjects get positive economic effect and social effect, because it is very important to maintain labor collectives.

The new economic proposal may relate to more than 2,000 organizations.Every sixth entity is the organization of agricultural profile.