Viktar Marhelau: The main problem of Belarusan business is price formation

Belarus should elaborate integral economy development strategy with the account for the international challenges.

The strategy is very simple: we need to decide how to develop economy during decrease of Belarusan export, how to provide economic growth, and how to improve the standard of well-being in Belarus. Any solution separately cannot stabilize the economic situation in the country.

Viktar Marhelau, the Co-Chair of the Republican Confederation of Entrepreneurship, told the “EuroBelarus” Information Service about the results of meetings with the representatives of Trade and Health Care Ministries with the representatives of large business and business unions.

- At the end of the last week the Trade Ministry held working meetings with the representatives of large business as well as unions of entrepreneurs. What problems were discussed at these meetings?

- On January 22 the representatives of Trade and Health Care Ministries met with the representatives of large trading networks, and on January 23 – with the business associations. At the meeting all major problems of relations between the state and business were touched upon: wholesale trade and retail trade, industry, and import of goods.

The government was represented by the Trade Minister and Deputy Minister, Chief sanitary inspector of Belarus; the other side was represented by the large trading networks and business unions.

- A number of business-unions as early as in January 14 submitted their suggestions about the formation of the working group for resolving pending problems. Did the reaction of the government follow?

- Business associations voiced their concern with the conditions of running the business in the country; representatives of the government voiced their opinion. On Saturday they are to report on the results of our meeting to the Prime Minister and to the Vice PM. Business unions submitted two letters to the government; and these meetings were, actually, the result of our suggestions. Within the competences of the parties to the meeting a number of concrete decisions were made.

We reached agreement with the Trade Minister about improving the assortment list, as in the present look it is basically impossible to implement. We have agreed to elaborate the lists together, which would conform to the possibilities of the national business.

We have agreed to simplify sanitary requirements we set up to the shops’ work. Now we are elaborating a bid list, which will be considered at the next sessions.

As to the price formation, it was decided to deal with the problems of Belarusan producers. The moratorium on price increase was introduced for support of the national producer, who came to be in a worse situation than the importers.

- Are you satisfied with the results of the meetings?

- I attended dozens of such meetings; however, such problems were never resolved in a moment; we will need the second and the third meeting. The same situation is in the government: the decisions are usually taken after long-term negotiation process. We have certain result. By the way, the Trade Minister said that we can continue our meetings, though not for discussion of the whole spectrum of painful issues, but for resolving two-three concrete problems.

- What problems require the quickest solution?

- The main problem for business is price formation.

However, we are working in the situation of three uncertainties: we don’t know what the price of oil will be tomorrow, we don’t know what will be the Russian ruble rate, and we don’t know what will happen in Ukraine in a week. All the mentioned factors have extreme influence on the Belarusan economy. In this situation the government cannot merely abandon state regulation. However, in the understanding of the government certain stabilization has to happen.

- Have the specific temporary limits for problems’ solution been established?

- On February 12 a Council for entrepreneurship development is to take place. At the Council the whole spectrum of painful problems will be discussed. Business unions introduced their suggestions to the Government Plan for 2015 – the sessions are to start in the near future.

On February 10 we are organizing a round table “entrepreneurship development in the context of international challenges”; the problem exceeds the frames of the traditional relations of business and power. We need to form economic development strategy with account for international factors. And this strategy is, basically, simple: we need to find out how to develop economy in the situation of export decrease, which will be falling; how to provide economic growth and to improve the standard of well-being in Belarus.