Zaika: Words OF Myasnikovich - Profanation And Visibility Of Propaganda Care

Mikhail Myasnikovich made "revolutionary" statements.

The Chairman of the "Council of The Republic" proposed to build a "new economy" and to cancel the taxes for the brand new small and medium-sized enterprises for two years.

– We need new economy, new enterpises, – he declared. – This requires investments, which we don’t really have. The budget cannot afford it, the existing enterprises have no profit. According to the estimates of the Government, the working capital shortage amounts to $ 8.4 billion. We don’t have these funds either. They can only be ensured by the active development of the private sector and new enterprises.

Besides, the ex-prime minister suggested "to liberate the business initiative", namely, to grant a remission of all taxes to small and medium-sized manufacturing enterprises, set up in 2016-2017.

The well-known economist Leanid Zaika explains what will come of this in the express comments for Salidarnasts.

– There were such initiatives in other countries, only in the 70th-80th of the last century. I don’t think that this will save the small and medium-sized business, which is in dangered now in Belarus. It is simply falling apart and the process of ruining is pretty fast.

These innovations will not help, because the greatest damage to business is caused not by taxes, but by the rental prices, paying for utilities and so on. But this may well work as a certain profanity or some visibility of propaganda "care". But that will be that and nothing more.

The interviewer, commenting on the statements by the official about the creation of a "new economy", recalls that he has already been using this idea for the past eight years.

– It is good that Myasnikovich has finally read it and has decided to borrow it – the expert speaks ironically. – It’s right, but there is one "but": it is very difficult to do. For example, you have to invest about a billion dollars to introduce one new drug in the pharmaceutical industry. This is not real. None of the small nor medium-sized enterprises is capable of this. We can only produce drugs which were withdrawn from production in developed countries - and nothing more.

The well-known economist doesn’t take seriously also the plans of the authorities to increase GDP by 10-15%, and export - by 20-25% by 2020.

– We have already sunk a lot more, so these figures are the return to what it was 2-3 years ago. In this case, we simply will return to our start – nothing in particular is going to happen, – Leanid Zaika concludes.