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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