29 March 2024, Friday, 2:57
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New fetish

The Belarusian government promises salaries of $1,000.

An average salary of $500 is a closed chapter for the authorities, though many people still don't receive it. The authorities need a new “fetish” to demonstrate how they care about the population. The Belarusian capital sets an example. The government promises to raise average wages in Minsk to 1,000 dollars by the end of 2015, the year of the presidential election, Belorusskie Novosti informs.

The Minsk city executive committee, the Minsk city association of trade unions and the republican association of industrial enterprises signed an agreement on January 13 for the period from 2014 to 2016. Under the agreement, the average wage at the end of 2015 will reach $1,000 in dollar equivalent.

The minimum salary is expected to reach not less than 250 dollars, Minsk-Novosti information agency promises. The average salary in Minsk in November 2013 was $722. According to Zahna Birych, a deputy head of the Minsk city executive committee, the average wages will grow to 780 dollars in 2014. The capital plans that the gross regional product will grow 3.7% and exports of goods and services will increase by 15%.

Minsk is undoubtedly the most economically successful city in the country. But Belarus's economy is not in the state to consider these plans to be real.

Belarus's GDP should not just increase, but rocket for the miracle of average salaries of $1,00 to come true. But there's no grounds for it so far.

“If the salary growth rate of 2013 continues in 2014, the economy will fall to never recover again,” Georhy Hryts, a deputy head of the Belarusian Science and Industry Association, thinks.

The state increased salaries last year to reach the pre-crisis level, but if wage growth is faster than production growth this year, if the increased salary is just “drawn”, the consequences will be “grave and even fatal”, the expert says.

Heorhy Hryts thinks such brave forecasts “don't show a high professional level of officials”.

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