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.

Prices for apartments in Belarus have doubled just within a few years. On the one hand, rising housing prices are not something special only for Belarus. The country follows European trends in this respect. On the other hand, the government is working to the effect of raising the prices even further, instead of trying to bring them down. However, the business cycle laws are inexorable. Belarus is already at the peak of housing prices. Any downward changes can become an unpleasant surprise for banks, construction companies and depositors.

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."