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Economist: Lukashenka's Administration Chief Reveals 'Terrible' Secret

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Economist: Lukashenka's Administration Chief Reveals 'Terrible' Secret
Siarhei Chaly

This will be more serious than Goethe's Faust.

Aliaksandr Lukashenka's proposal to allow heads of district executive committees to appoint heads of private companies and carry out a number of other duties caused heated discussion.

Economist Siarhei Chaly offered his version of what "revolutionary changes" in the vertical can mean and why the Chairmen of District Executive Committees want to grant new powers.

"In fact, this was an attempt of the second approach to solving the regional crisis, namely the formation of local poverty traps at the level of individual districts," says the analyst on the Chaly:Economy channel. "These traps were the result of the crisis, the hybrid devaluation of December-January 2014-2015, when the authorities found that nothing was developing, because people had nowhere to work and, accordingly, there was no reason to stay there [in the regions — Ed.] -----

Since there is nowhere to work — accordingly, there is no solvent demand, so there is no point in opening a business there, since there will be no one to buy.

According to Siarhei Chaly, the authorities have not been able to cope with the problem for 10 years.

— They do not have their own strength to pull themselves, like Munchausen, by the hair from the swamp. Without external assistance, this is no longer possible, they have no sources,” the economist explains. "And then the spiral of immersion in this very poverty becomes self-sustaining. In general, 'whatever they do, things do not go well'. The situation with the regions is deteriorating.

At the same time, the authorities not only in the regions, but also at the macro level manage to create all conditions for the skilled labor force to flee the country, the analyst clarifies. And it began even before the 2020 elections.

"As Krutoi said, by the way, these words were left in Soviet Belarus' article, but deleted on Lukashenka's and BelTA's web pages, on average, 300-400 people leave the area for 8,000-10,000 people employed in the economy, according to Belstat annually. 4% of the employed annually! This, I will tell you, is more terrible than Goethe's Faust," exclaims Siarhei Chaly.

Lukashenka's task before the district executive committees is to stop the outflow of the economically active population.

"Well, we understand that the chairmen of the executive committees are tasked with stopping the outflow, and GESTAPiK [derived from GUBOPiK Main Directorate for Combating Organized Crime and Corruption — Ed.] is already tasked with the opposite — as if the economically active population should be reduced as much as possible: either imprisoned or expelled.

However, no one canceled economic development." Therefore, the economist believes, the authorities have found someone to entrust it to.

"The vertical of power began to work. It works in such a way that all assignments ultimately go down to the very bottom. Like in "The Turnip Tale", where Zhuchka the dog, cat, mouse... So we got to the "mice". Below the chairmen of the district executive committees, there is no longer any power.

So let's write down that in the economy all this is done by district executive committees. Well, that's great! Good idea! For the sake of this recognition of their own helplessness, they are ready for a completely different arrangement of the country," concludes Siarhei Chaly.

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