The population of Belarus became by 4,900 people smaller in 2005. Gross domestic product can be now divided into a small number of inhabitants. The country's GDP doubled in dollar terms between 2002 and 2005; inflation went down from 34.8 to 8 percent; people's bank savings increased to $2.5 billion; foreign reserves rose to $1.2 billion. The average nominal wage in 2005 was $205, up from $150 in 2004, and pension allowance - $98, up from $63 in 2004. Russia gave Belarus another $3-4 billion in energy-related subsidies and made it even more addicted to the oil and gas drug. Being confident in its genius planning skills, the Belarusian government did not even think about adapting the economy to the conditions of genuine competition. The year of 2005 has been another year of missed opportunities.

The Minsk-based Institute of Privatization and Management conducted a survey in the end of 2005 to investigate the situation of business development in Belarus. Representatives of 400 companies were asked 59 questions to that end. Their answers can be used to draw a credible picture of Belarusian business.

Belarus got an infection in 2005. But it has nothing to do with medical diseases. Despite strong anti-Western messages from the country's leadership, the Belarusians have successfully entered the Western society of total consumption. The Keynesian theory of anti-saving has become a prominent feature of Belarusian society. People in Belarus used to save 17 to 20 percent of their income as a rule. In 2005 this indicator fell below four percent. "Spend now! Tomorrow will be good!" has become a motto of the hot Belarusian economy.

The US's Heritage Foundation and Wall Street Journal published its 12th report on Index of Economic Freedom this January. Hong Kong is traditionally ranks first with Index of Economic Freedom (IEF) at 1.28, with one being maximum freedom and five - no freedom at all. The top five of most economically free countries consists of Singapore, Ireland, Luxembourg and Iceland. Belarus moved from 143rd down to 151st. Its IEF became worse from 4.04 to 4.11. It ranks seventh among the ten most economically unfree countries.

The National Committee, some sort of the opposition's shadow cabinet, has recently unveiled a draft economic program of the united pro-democratic forces. Titled, "Be the Master of Your Own Country," the document is now being submitted for public debate.

Belarusian public budget for 2006 has been passed in a usual, uneventful way, without any open debate of lobby groups, without listening to business people and without taking into account a more acute competition between taxation and administration authorities. The government again pretends that it will cut taxes and simply its tax administration. Private businesses and state companies again have to accept the task of carrying the biggest weight of fiscal burden.

The level of poverty in Belarus fell from 39 percent of the country's population in 1996 to 27 percent in 2002 and 18 percent in 2004. About two million people have moved out of poverty. These findings come from the recently published World Bank report for 2005, "Growth, Poverty and Inequality in Eastern Europe and the Former Soviet Union."

Many post-socialist countries have completed their planned-to-market economy transition. Poland, Hungary or Estonia can be already compared with Greece, Italy or Cyprus. Russia, Ukraine and Moldova can be in transition for rather long, since they are not yet completely sure where they want to go. Belarus, Uzbekistan and Tajikistan are following their unique ways, although not in the direction of a market economy. These conclusions follow from a recent annual report by the European Bank for Reconstruction and Development (EBRD), Transition Report 2005. Business in Transition.

UN reports predict that Belarus' population may shrink to 9.4 million by 2015 and to 7 million by 2050. "Brains" are leaving for where they are really appreciated. Young people prefer to start their careers where they are paid more. Human capacity as one of key components in national economy is being destroyed now.

Belarus will keep its progressive income tax in 2006. This decision follows from the House of Representatives' recent amendments to the Belarusian income tax legislation. Five tax rates, from 9 to 13 percent, are a senseless and harmful system. It is senseless because an effective individual income tax rate has been varying just between 9.1 and 9.5 percent in Belarus in the recent years. It is harmful because the government's pursuit of the so-called social justice makes tax administration very expensive and sends many incomes into the shadow.