UCP urges Lukashenka and government to resign

The Political Council of the United Civil Party (UCP) has released a statement.

Below is the text of the statement received by charter97.org this morning:

– After the currency crisis of 2011, when the ruble exchange rate soared from 3,000 to 8,350 a dollar, the Belarusian economy has been in a state of stagnation for the third year. According to official data, GDP grew only 1.7% in 2012, 0.9% in 2013. The growth in 2014 is expected to be 1.5%. Taking into account the significant amount of products that cannot be sold and the two-digit inflation rate that distorts the real picture, all signs of a recession can be seen in the country. The annual inflation rate is around 15-20%, the amount of unsold finished goods exceeds 34 trillion rubles (almost 79% of the average monthly production) and continues to grow. Accounts receivable are 215 trillion rubles. Overdue receivables increased 136% this year, including a 168% growth of the overdue foreign debt. Loan arrears grew 174%. Loss-making plants make 26.7% of the total number of industrial enterprises; loss-making and low-profit plants comprise 50% of all enterprises. Investments fell more than 10%.

The National Bank of the Republic of Belarus took a decision on December 19 to impose a 30% duty on purchasing foreign currency by companies and individuals. The authorities say the measure is temporary and has a market nature. But this and other decisions taken at the end of the month have nothing in common with the market economy. They were made to achieve two aims: to preserve a semblance of acceptable results of average wages in dollar terms and to halt the outlined trend of converting Belarusian rubles into foreign currency. The authorities still believe it is an outburst of feverish demand for foreign currency that can easily be stifled.

Imposing the duty cannot solve the country's economic problems, first of all those relating to losses of export operations on the Russian market. It will inevitably lead to the formation of the black foreign currency market and two parallel exchange rates. There are no arguments to suppose that the problems on the foreign currency market are temporary and can be solved by the date set by the authorities. The government will have to return to the market exchange rate policy sooner or later, and the current measure will only make it more difficult.

The Political Council of the United Civil Party states:

This measure is another attempt to shift responsibility for the absence of a wise economic strategy on the population and business. It can be proved by a decision to impose a moratorium on price growth amid at least a 30% increase in costs and to close down a number of big stores in an attempt to redirect financial flows to Belarusian products at the moment of a possible panic buying.

The Political Council of the United Civil Party recalls:

The UCP repeatedly said in 2009 and 2011 that the government and experts should join their efforts to find a strategy of tackling the crisis and resuming the economic progress. In 2011, a working group led by Stanislau Bahdankevich created the anti-crisis platform and introduced it to the Government. Prime Minister Mikhail Miasnikovich met with the group head and discussed possible ways of reforming the economy, but no actions were made.

The Political Council of the United Civil Party thinks:

Having driven the country into a financial crisis for the third time in five years, the authorities have demonstrated their complete helplessness and lost the moral right to rule the country. We believe that no decorative measures can help. Let's call things by their proper name. The country is in an ongoing deep crisis. It gives people the right to demand the resignation of the government and the leaders of the National Bank as well as the resignation of Aliaksandr Lukashenka as the person bearing personal responsibility for the power vertical that he created and that forbids people to have other than official views.