Articles in English
One of the most remarkable pieces of presidential legislation this year entered into force on November 13. It is an edict, #520, on "improving legal regulations for selected economic relations," which Alyaksandr Lukashenka signed ten days earlier. The document is designed to develop and specify provisions of Presidential Edict #418, dated October 17, 2005, "On Improving the Procedure of Exempting Business Entities from Economic Accountability."
Transparency International published its new report in October to show the spread of corruption in the world. This year Belarus ranks 107th among 159 nations with Corruption Perception Index at 2.6, according to the report of the anti-corruption watchdog. The country fell 33 places within a year. It is equal now with Eritrea, Honduras, Kazakhstan, Nicaragua, Palestine, Ukraine, Vietnam, Zambia and Zimbabwe. Ukraine and Kazakhstan are noted as improving their reputation, while Belarus seems to be losing its reputation as a decent, law-abiding and honest country.
It has been two months since the UNDP presented its new country report, Belarus: Addressing Imbalances in the Economy and Society. National Human Development Report for 2004 - 2005. While speaking at a presentation ceremony on August 31, Deputy Minister of Economy Tatsyana Starchanka pointed out that the purpose of such reports was to involve a large scientific and public audience into debate for the sake of streamlining the country's socioeconomic policies. Alas, debate still gives its place to monologues by one and the same person at meetings dealing with economic policy.
The World Bank and the International Finance Corporation have published one of the most profound business environment studies in the world, "Doing Business in 2006: Creating Jobs." The report gives ratings of business climate regulations and reform in 155 countries. Belarus ranks as low as 106th.
On the face of it, the arithmetic of Belarusian agriculture is simple and clear, but a closer look at it can be rather perplexing. Government experts estimate that direct and indirect subsidies and subventions to the farming sector will amount to $1.5-1.7 billion in 2005. Net profit of the country's farms totaled 383.2 billion rubels, or nearly $180 million, for the first six months of this year. At the same time, overdue accounts payable amounted to 903.7 billion rubels as of July 1, which is more than twice larger than the profit. Tax and duty arrears alone account for 201.5 billion rubels. With such indicators in place, the Ministry of Agriculture and Foodstuffs reports nevertheless that the share of unprofitable farms is just 5.1 percent, or 104. Just one year ago the respective figure stood at 25.6 percent.
Belarusian business associations and lawmakers are actively discussing a new governmental bill "on the support of small- and medium-sized enterprises." The government offers a format of support that would be beneficial for itself rather than for businesses. It actually seeks to create a structural and regulatory cage for small and medium-sized business owners.
Corruption Perception Index 2003 score: 4.2, 53rd place out
of 133 countries
Bribe Payer Index 2002 score: not surveyed
On October 2, 2002 the president passed the decree № 500 “On the state program to intensify fight with corruption for the period of 2002 – 2006”
On May 26, 2003 the law “On ratification of Convention on criminal responsibility for corruption” № 199-З was put into force.
On November 5, 2003 the Council of Ministers passed the Resolution № 1471 “On adoption of the plan of activities to counteract corruption in state bodies”.
Decree of the president №122 as of March 1, 2004 “On signing by the Republic of Belarus the Convention of the United Nations against corruption”.
