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Belarus' economy needs structural reforms, says US charge d’affaires

The Belarusian economy needs structural reforms to emerge from the ongoing crisis, US Charge d’Affaires Michael Scanlan said in an interview with BelaPAN on Thursday.

“Every economy, whether that of a country or a family, has to be sustainable,” the diplomat said. “For years, economic growth in Belarus depended on external subsidies, primarily in the energy sector. Such measures are not sustainable; the longer one maintains an artificial economic reality, the harder the inevitable adjustment. One cannot solve the problem, however, through new subsidies or applying bureaucratic edicts. As many economists have already pointed out, this crisis is systemic in nature.”

Mr. Scanlan said that he was surprised by remarks by Belarusian government officials and journalists of state-controlled media outlets who “laid the blame for the economic situation in Belarus on a ‘conspiracy of wholesale suppliers’ and the import of used cars by the population.”

“I am not an economist, so I will not prescribe specific economic measures to remedy the present economic problem," he said. "However, there should be structural changes to unleash the pent up entrepreneurial potential of the Belarusian people.”

He emphasized the need for a level playing field for all economic players, be it state enterprises, foreign investors or Belarusian private small and medium-size businesses. “There has to be open discussion, the free exchange of opinions and ideas, and a dialogue in which the entire society takes part," said Mr. Scanlan."The media also has to play a very important role here, acting as a platform for public discussion. Unfortunately, such an inclusive and unfettered dialogue does not exist in the state media.”

Political and economic freedom are closely linked, he stressed. “You cannot achieve further economic development without political reform, involving the rule of law, an independent judiciary, media freedom, and the right of the people to freely choose their elected officials,” Mr. Scanlan added.