Economic Reforms in Belarus Too Inert Says IMF :: Charter'97 :: News

Despite the significant progress, achieved in a range of structural reforms’ directions in Belarus, the authorities still prefer to follow the “slow reforms’ route”, RIA “Novosti” quotes IMF mission’s experts as saying following a fortnight of the country’s economic progress’ evaluation in the year 2002. According to the head of mission Thomas Richardson, the progress attained is of a twofold nature. Indeed, there has been reached a permanent GDP growth and rise in the ready goods reserves. However, inflation, which fell as compared to last years’ rates, remains highest of all CIS member-states.

The mission recommended to the Belarusian authorities to carry out a stricter fiscal policy and crediting, avoiding non-proportionate contraction of social expenditures.

IMF members’ mission shares the Belarusian authorities’ concern over the inevitable social consequences of a transition to the market economy. Meantime they assume that advantages of the accelerated implementation of reforms by far exceed the problems, caused by a gradual approach, which bring about greater and lengthier deterioration of living standard.

Richardson underscored that IMF is set to render technical assistance to Belarus, sending field experts on monetary and credit policy, taxation and budget’s transparency.

As concerns the stand-by credit’s allotment, which the authorities so much hope for, they first need a sufficient period of sustainable macroeconomic development. “We have great discrepancies with the Belarusian authorities concerning the parameters of this development,” – noted the IMF mission’s leader.