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Belarus Government Policy
Although the government's stated goals during the first
years
of independence included promoting a market economy,
normalizing
monetary circulation, and lowering the country's
dependence on
monopoly suppliers, these goals were not met. Inflation
and
depreciation in the exchange rate stemmed from the
government's
compensation for decreased living standards and lower
industrial
output through subsidies (rather than changes in the
country's
economic structure and adoption of market reforms).
The government's economic timidity was prompted not
only by
the wish to maintain the status quo but also by a fear of
the
social consequences. Years earlier, calls for political
action
did not stir the populace, but the populace reacted
dramatically
to sudden price increases. In April 1991, demonstrations
occurred
in Minsk, Orsha, and other cities, frightening the
government
into wage concessions, a slowdown of reforms, and promises
not to
neglect the "social protection net" so as to avoid a
repeat of
such economically motivated unrest.
As of mid-1995, the government continued to look for
easy
solutions to its economic problems. It neglected
privatization
and price liberalization, instead continuing to increase
minimum
wages to offset minor price increases and to prop up
outdated
factories that piled up unwanted inventories.
Data as of June 1995
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