Strengthening our position on the competitive global market requires adjustment to our economic policy, keeping step with world trends

Recently, the National Assembly’s Council of Ministers hosted a session of the Scientific-Consultative Council, led by the Chairman of the Upper Chamber, Mikhail Myasnikovich. Two new draft laws were discussed alongside other aspects of Belarus’ social-economic development. Deputies joined senators, members of the Government, scientists and company heads in discussing advantages of indicative planning, while focusing on state-private partnership. Both draft laws are related to developing forecasts for the coming five years: a vital aspect of economic planning.

In 2016, the country may shift to an indicative planning system. Unlike the directive system, it offers more initiative, freedom and independence to local heads. It focuses on profit rather than GDP, encouraging enterprises, branches and regions to use their competitive advantages. For example, the Braslav District’s agricultural organisations won’t need to demonstrate new achievements, for which it’s impossible to set a GDP record. They are more likely to generate profit via tourism.

It’s important to teach local authorities to make full use of their advantages and prospects, independently outlining a development strategy for growth, with profit as the focus. Company heads will learn to become more flexible, reacting to trends domestically and abroad, and adapting to new circumstances.

Private businesses already work under these principles, so their experience is valuable. The resources, skills and technologies of the private sector could be applied to major state projects. The draft law on public private partnership now outlines conditions for liaisons between the state and businesses.

The institute of public private partnership is being applied in building schools, hospitals, roads, communal facilities and power stations. In attracting private capital, the state is developing necessary infrastructure without placing undue burdens on the budget. In the UK alone, this co-operation between state authorities and businesses has resulted in the construction of dozens of schools. In Spain, hundreds of kilometres of roads have been built. In France, the Sud Francilien Clinical Centre occupies the equivalent of15 football fields. In Tajikistan, the state and businesses have jointly constructed an electricity power station, supplying the most remote settlements in the country’s east.

In Belarus, the state and businesses also liaise. The Interior Ministry, and the Ministry of Transport and Communications are working with Austria’s Avonside Holdings GmbH to establish photo-registration of those breaking the speed limit, and seven more pilot projects are planned. With major transport corridors passing through the country, public private partnerships are the way forward for ensuring modern logistics, road modernisation and reconstruction. Naturally, efficient, stable, transparent and clear legislation is essential for investors. Private businesses need to feel on an equal footing with state partners.