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In Belarus, the authoritarian methods of management of the economy is hindering its growth

В Беларуси авторитарные методы управления экономикой сдерживают ее развитие

Still there are disputes between professionals and economists from different countries, what system of management is most effective, particularly in the field of agriculture. There are advocates of large collective farms, the type of collective and state farms, where the members of these associations are self-employed workers, and ownership of land and means of production is in the hands of the state. It’s the government and controls all economic processes. Other economists have very opposite opinion. They are supporters of a purely capitalist relations, when everything is dictated by the market, each economic entity carry out its tasks at its own discretion, at the risk of their property and possessions.

But neither one nor the other system are not optimal. On the one hand “the original wild capitalism” has almost no basis of planning. Overproduction and crises alternate with each other, creating market chaos and confusion. An example of this great American depression, when tens of thousands of farmers were ruined, and on the other hand the major owners, not to lower prices, abundance of grain burned in the furnaces. Another example of the chaos and impoverishment of the people in the 90 years of the last century on the territory of the former Soviet republics. Another example is the huge Soviet Union, whose authoritarian economy was uncompetitive in the global market system. Although a lot of impact, not compliance with political and ideological assumptions.

In the end, the Soviet system collapsed, and her followers introduced into the economic system the elements of capitalist relations. In Europe and America also made the appropriate changes, which have mitigated, to some extent, social injustice in these countries, – the “КазахЗерно.kz”.

Economist LEU Marholin says about the fate of the Belarusian agroindustrial complex in an interview Charter97.org. Published his statements with contractions.

Six months ago, Lukashenko made a “dressing” on a farm in Sligo Shklov district, where he saw dirty cows. Many officials after it was dismissed, but recently in the same Mogilev region, in the agro-Parshino Gorki district, surfaced new shocking facts of mismanagement.

I like a man older generations actually remember the days of the Soviet Union. If shouts and punishments would be possible to achieve economic prosperity, our economy would begin to “prosper” even in Stalin’s time. Then for such omissions deprived not only of office, but of freedom, and even life.

However, this does not work, and the economy to thrive it did. Because thrive can only be a free economy when it is developing according to market laws, when every business has a personal interest.

The state should only create the conditions for this and not interfere, because it is proven that the government is the most inefficient owner the most inefficient businessman. This was proven by the contrasts of development in one and the same country. Let’s at least remember East and West Germany, North and South Korea.

– I would not say that the Belarusian agriculture is the slave system, because slaves did not pay. I’d say it’s closer to a feudal system where people something to pay, but still all the property belongs to the feudal Lord – in this case the state, represented by its chief of “agrarian” or his deputies in the field.

As for efficiency, it is best to compare the figures in Belarus with those in the developed countries, That is, to take a developed country, which roughly corresponds to the population of Belarus, and see what percentage of the population there is engaged in agriculture. These figures even a layman can easily find on the Internet.

I think we in agriculture employs three times more people than in the advanced countries. That is, labor productivity in Belarus in this region is three times lower than that of its European neighbors.

The private sector in agriculture, of course, is much more effective, but it is impossible to build capitalism in a single country or in only one farm. The entire infrastructure needs to be sharpened to a market economy – then no farmer would think to demand that the state had bought something.

Belarusian farmer produces at your own risk and it is very difficult to compete, for example, with their Polish colleagues, because the European Union agricultural production is subsidized. Moreover, it is subsidized not because we have a collective who are weaker, and to help. European farmers are subsidized in equal conditions – on one Euro or zloty for each unit of output.

We have the same, if the collective is still something you can get from the state, the farmer is forced to survive by himself. And if you survive he has learned thanks to some personal connections, some corruption of the authorities, to fight with nature, we unfortunately, do not know how.

So when suddenly there is a good crop, like strawberries or tomatoes, it turns out that the farmer better crop than such an abundance. Because a good harvest is no public infrastructure will cope not.

Better worse than better – that’s a paradox has developed the farmer. Because when the harvest is poor, there is still hope that product prices can go up and get somehow to survive. And when the harvest exceeds the limit, it turns out that in Belarus even have the ability to process the strawberries or tomatoes.

I would say that the mistakes made not only in agriculture. A strategic mistake is the entire economy of the country. General miscalculation occurred when it was decided that it is possible to revive the system that existed under the Soviet Union, but with slight adjustments.

Lukashenko for some reason decided that the use of force, the repression and threats-something you can squeeze out of the economy. But he wasn’t. All that could be squeezed out of the country in the mid-90s, already squeezed. Now everywhere, where there were no reforms in agriculture, industry, construction – it is a critical situation. The laws of Economics were stronger than Lukashenko.

Laws on the laws, because they exist regardless of the wishes of even the most authoritarian rulers, and sooner or later return them to earth.

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