ADSactly World - Business in Belarus
Business in Belarus
After the collapse of the Soviet Union in Russia, privatization of enterprises and factories that previously belonged to the state began. A similar situation took place in neighboring Ukraine. Thus, in Russia and Ukraine, an oligarchic system of governance has emerged which is now in force. It was from those times that big businesspersons and oligarchs appeared. Many residents of these countries consider this privatization illegal, but they cannot do anything about it. What is the situation in Belarus?
In fact, enterprises in Belarus remained under the control of the state. Lukashenko took control of all Belarusian organizations. All large enterprises are controlled by the state. The big business belongs to the people "close" to the dictator. Lukashenko monopolized all areas of activity that bring high cash income. In 2018, he decided to create his network of pharmacies. The authorities plan to monopolize the pharmaceutical market and take control of the pharmacy business. Alas, any business for which the dictator turns his attention to eventually becomes bankrupt.
Individual entrepreneurs in Belarus
Over the past years, individual entrepreneurs of the republic are experiencing the worst times. Their number is constantly decreasing. According to official statistics in 2018, their number increased by 136 people. However, in the period from 2011 to 2016 the country lost 26,000 entrepreneurs who closed their businesses. A huge difference. Lukashenko has repeatedly shown his dislike for individual entrepreneurs. He called them "lousy fleas".
Normal business development in Belarus is problematic. In the country, decree No. 222 was issued, which implied an improvement in the quality of the products sold. Nevertheless, this decree created many problems for entrepreneurs and caused monetary losses for the country close to 100 million dollars. But if we do an elementary calculation, then we get a different figure. 100 million dollars did not receive a budget, as much as the Federal Social Security Fund (the social protection fund of the population), there was no rent - and this is 20% VAT + taxes - another 100 million dollars. In the end, we get an amount of about $ 300 million.
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The budget lost $ 300 million, and people lost their jobs. Is this done on purpose? According to some information, Lukashenko is doing this to create another monopoly. This is one example of the consequences of the intervention of the president.
Business Empire of Lukashenka
According to official estimates, about 80 organizations have the following words in their name: "Office of the President of the Republic of Belarus". An organization is subordinate only to the president. The leaders of this organization keep on the "threads" (note - hidden channels for transferring money) the most profitable sectors of the economy. On these "threads", they send the millions of profits of the controlled organizations to the secret (offshore) accounts of the president.
This includes numerous hospitals inside and outside, countries that inherited from the BSSR. These include Tuapse, Druskininkai, Yalta, Sochi, Jurmala. Also, mention should be made of the hospitals that are located inside the country. Pines, Borovoe and Yunost are the main hospitals that receive foreign tourists. In addition, the organization owns a network of pharmacies in the city of Minsk.
Do not forget about the organization called "Belarusian Lotteries". President Dmitry Lukashenko’s son owns one of such lotteries under the name «SuperLoto». In addition, he is the head of the presidential sports club and a number of other enterprises.
According to unofficial information, the president's eldest son owns the largest supermarket chain in the country "Euroopt" . He also manages power structures and a number of other organizations.
There are five national parks in the country: Narochansky, Braslav Lakes, Belovezhskaya Pushcha, Pripyatsky, and Berezinsky. All these unique natural objects came under the control of Lukashenka in the mid-1990s.
In addition, Lukashenko controls hotels. The largest and most prestigious of them is the President Hotel. It is located near the presidential residence (by the way the president has more than 16 of his own private residences). Also near this hotel is the elite presidential hospital.
That's not all. This list also includes numerous shopping centers, construction organizations, and office buildings. This brings a big profit to "managing the affairs of the president" and therefore the president himself. It is also worth taking into account the "personal" businessmen of Lukashenko, who control his "secret" business - weapons, oil, and sport.
All this is a carefully organized Business Empire of Lukashenka, which, over the years, is becoming stronger.
Work of State Enterprises
source The inscription is made in Belarus
Let's start with the fact that state-owned banks are under threat of incurring losses.
The total share of loss-making enterprises is constantly growing. This is not surprising since the president makes every effort to do this. To improve the situation at many enterprises, so-called "upgrades" are carried out. In theory, they should improve the state of enterprises, but in practice make the situation much worse.
Obviously, the fault of the whole situation can be called incompetent management of enterprises. I will give an example of one shameful case. It occurred at the state enterprise Integral which is engaged in the development and production of electronic equipment.
The history of this shameful and at the same time ridiculous case is as follows. In 2009, a Belarusian firm of research institutes planned the purchase of monitors. In such cases, a "tender" is conducted within which you must choose the "best" monitor manufacturer. Thanks to the tender, many favorable offers were received from foreign companies. But the state banned the purchase of foreign monitors. Therefore, they had to apply to the Belorussian firm called Integral.
After the firm's monitors were delivered to the customer, they were unpacked. Further, we will leave without comments. Just look at the wonders of Belarusian production.
This case is a vivid example of how the Belarusian state business works. Buy Belarusian :)
The result
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The president needs financial support. Therefore, he goes against his own principles and sells state enterprises to those who support his regime. In particular, they are Chinese and Russian. What in Belarus already belongs to China?
During the last years of Lukashenka's rule, doing business in Belarus is not a profitable occupation. Entrepreneurs are forced to pay high taxes, and this forces them to raise the price of their goods. At the same time, the purchasing power of the country's population is constantly falling. Half of the wages of "ordinary" people from the middle class are spent on the purchase of food.
A logical question arises: Why are Belarusians engaged in opening a business if this is not profitable? The answer is simple - because for people, this is the only way to make money. There are many unemployed in the country, but not enough work. In addition to rising unemployment in Belarus, labor immigration, prices and the cost of foreign currency are constantly growing.
Fact: Belarusian industry has brought $ 730 million loss for 2017.
At the same time, goods produced at state-owned plants are sold at an overpriced price. For example, the main building component is cement. Belarusian cement in a neighboring country is sold 1.5 times cheaper than in Belarus. And this is not the only example. This is an outright disrespect for our people.
Every year the situation becomes even worse. Now the government destroys and sells the main asset of the country - the forest. What will remain of Belarus after the dictator's reign?
Authored by Belarus Insider
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The privatisation scheme in the Czech Republic produced a party eleite, judicial and political collusion built a 'new party' . It has taken time to dismantle corrupt practice. The Lukashenko regime can obnly be defeated at the ballot box and by a new generation that may have to produce an intelegent velvet approach. The 'crackdown; was brutal; like Hungary in 56. Poland have been intelegent and thier other post soviet V-4 group could do a lot. Pressure from Russia may happen, if they say no to oligarcs and insist on tax payments to give a return to the poor. Putin for all his faults could insist that in privatisation transparent tax methods prevail in Belarus. He saw post Yeltsin economy 'rape of money' and although he was authoritarian tax was collected. No easy answers, but to keep those in suffering in mind and heart.
This is the results of EGO- a breeding ground of corruption and greed, once a person became so powerful with the money weapons; they can do whatever they want and it's so addicting to do whatever you want and they became a slave to money and power that they became psychopath and apathetic oligarch that they forget people who are suffering from poverty and it makes the country into an economic collapse for the sake of monopolistic and selfish behavior .
It seems like another North Korea 🇰🇵 is becoming out of Belarus 🇧🇾. People are not allowed to protest... They have to become policeman to have some kind of chance. Once you become a policeman, you have to turn against regular people. Individual entrepreneurs are diminishing, because they don’t have any government’s support instead Lukashenko calling entrepreneurs "lousy fleas"? Here in US we call them “The future!”. It’s obvious what Lukashenko is doing is to create another monopoly. If I lived in Belarus, I would be really frustrated. I believe Belarusian’s are very frustrated watching how their freedom is being taken from them. Next post should be about what Lukashenko and his “friends and relatives” don’t own in Belarus. I bet it would be one of the shortest posts. Just like I mentioned “Belarus is becoming another North Korea”. It’s very difficult to change the course since Russia and China are supporting this kind of regime. They actually profit on this.
From the author:
You're right. If you make a list of what Lukashenko does not own, then this list would be very short.
Many Belarusians are upset by this. But they are afraid to tell the truth. You can get to the prison for speaking out your own opinion. Alas.
Even worse.
For applause in a public place, a one-armed man was arrested. You can read about it here.
It’s written in Belarus language, but I get the picture.
The state of affairs in Belarus is so tragic! Lukashenko's lack of leadership and his apparent arrogance are leading Belarus to a continuing decline without an end in sight. It seems that it's hard to even have hope in this environment; entrepreneurs often can inspire other people to start businesses of their own, promoting a healthy economy, but if thousands of the boldest of Belarus' are unable to maintain a business, largely due to this kind of ridiculous government control, then what hope does the rest of society have for improving their lot?
Well, I guess they do have some hope - become friends with Lukashenko.
I'd have hoped that in this day and age, people would finally have realized the value of meritocracy over nepotism; but that's primarily if they have a vision of the future that includes all the people of a nation. It seems that Lukashenko's vision is primarily for himself...
That's a hilarious example of the state-run "industry" - just buy the already manufactured item, put a sticker on it, and sell it for even more money. And the state-run enterprises, with their incompetent leadership, lose more and more money - where do they get their money in the first place? One has to speculate that if the money isn't coming from inside the country, then maybe it's coming from outside the country, perhaps by other nations with a vested interest in propping up Lukashenko, where they care not for the people of Belarus but rather for their own geopolitical aims, or simply Russian or Chinese entrepreneurs who see an opportunity to get rich quick because they presumably don't have to follow the same rules.
I guess that the news media is also beholden to Lukashenko and his cronies, and that there'd be a black market for goods because it sounds like people's wages are so low that they couldn't afford the marked up state-"manufactured" items anyway... But it must feel terrible to be in this situation, and even more terrible to feel powerless to do something that can change it...
Omg, what is this man doing, what doesn't he owns?? It is so sad zo read this, that one family took control of the whole country, leaving people behind and not caring for them.
Like it's not enough to be rich, you must be extra rich -.- I really don't understand people with money. Or, all they want is the power. So they sell their country to gain one. He is havin monopolies on so many things, and I cannot see how that will make progress in country. It's not gonna make it, that is the problem. But what will hapoen when Belarus stops to ne that interesting. The president will just step up and will be left with enormous richness for himself. Not only for himslef, but I see he cares about his whole family..
Similar things are happening here in my country. We got a president nobody knows who she is, we gor primeministers that are stealing from the nation, and their big friends, coorporative ones... They are all stealing from the people, while people need to work more and morw hours a day for less paychecks..
I don't see future in this anf I hope people will wake up, finally. Thanks for sharing the knowledge about your country. People should know what is happening in the world. Have a great day. Luka.
Russia 😂
fantastic picture
I had no idea europe had dictators! This means that their friendly cryptocurrency regulations are likely a ploy to lure business to Belarus and then steal their funds ore even while businesses. How underhanded!
The bipolar world is not bipolar any more, the regime may have sold the enterprises to the Russia and China for their support but doesn't it seem the views are little biased.
Though I don't have too much Knowledge about Belarus polity as well as economy but most economies are leaning towards China. Chinese trade economy had some promising last decades, the result may be biased because of that too.