Belarusian People’s Congress

The Minsk Oblast Governor mentioned five macroeconomic tasks of current interest for the country.

Semyon Shapiro believes that the central bank and the government should work out a monetary management policy to encourage investments in the national economy instead of bank deposits. “It is necessary to stop pumping financial resources from Belarusian enterprises via banks to a certain number of people, who invest in bank deposits these days. Sometimes employees of such enterprises fail to get their salaries while the enterprises have to pay high interest rates on loans and in essence give away the money to another part of the society that can afford making such investments,” stressed the head of the Minsk Oblast administration. He pointed out direct correlation between cheaper credit resources and an increase in the gross regional product.

Speaking about incentives designed to stimulate such investments, Semyon Shapiro mentioned that the foundation of prosperity of the Belarusian society is in Belarusian hands instead of foreign ones. “It is now important to unite economic interests of citizens and the state. I believe we should enable conditions conducive to making investments in the registered capital of Belarusian companies. It is necessary to develop the stock market. We should give our citizens the right to lease ineffective enterprises, with buyout several years down the road as an option,” said Semyon Shapiro. In his words, private investments, which origin will not be checked provided the money is invested in the real sector of the economy, can act as an additional resource. “Every piece of land, which is used ineffectively, should be handed over to those, who can work it and earn money by doing it. Such work has begun in Minsk Oblast. Over 200 farmer plots have been selected. We offer them to everyone, who has money and is willing to start working in this field,” added the Governor.

He also mentioned it is necessary to let the economy regulate itself. “While caring for people’s wellbeing, the government sometimes stimulates not so efficient enterprises and loses a lot of money doing that. I think when people feel the cost of ineffective management of enterprises, it will be a wakeup call both for executives and regular workers. Everyone should bear his or her part of responsibility for the fate of their company,” believes the Minsk Oblast Governor.

Semyon Shapiro spoke in favor of balanced understanding of business risks. “Unfortunately, many executives have been recently unwilling to make bold decisions due to fear of administrative sanctions or criminal prosecution. Quite many criminal cases have been opened for selling property below the prime cost. But in some circumstances it is economically advisable and necessary,” said Semyon Shapiro.

There are huge reserves in personal motivation for raising the effectiveness of manufacturing. “It is necessary to allow oblast administrations to stop paying salaries to corporate executives and civil servants on the basis of how much time they spend working. Instead salaries should be paid depending on increased output, better export diversification, and bottom line financial results,” suggested Semyon Shapiro. In his words, several heads of district administrations and agricultural enterprises in Belarus have already been paid like that for raising milk sales. “As a result, by spending millions on bonuses in recognition of higher milk sales we’ve been able to increase milk sales by billions. I think this system of incentives for managerial work should be used everywhere,” concluded the Minsk Oblast Governor.