The Global Recession and the Belarusian Economy: Revealing Cracks in the Model

Abstract

In resolutely pursuing their own rigid economic policies, rather than engaging with international financial agencies and mechanisms and adopting market economic measures in common with their neighbours, the Belarusian authorities seem reluctant to part with the use of administrative measures to govern the economy and have become hostage to this dogma. At the same time, in the global crisis, the general worldwide tendency to increase the role of the state in the economy, including tightening of financial regulation and resorting to trade protectionist measures, provides some justification for the Belarusian authorities' actions in delaying policy reforms. However, in the light of the worsening economic situation in the first half of 2011, privatization of some strategic assets seems to be inevitable in the near future to address severe liquidity gaps.