What would be the 5 key lessons for Belarus
after 30 Years of Economic Transformation in CEE?
It seems that the economic authorities of Belarus have sustained more transformation efforts during 2015-2018 than in the previous 24 years since 1991. As the relative welfare level in Belarus is currently 64% compared to the Central and Eastern Europe (CEE) countries average, Belarus still needs to speed up implementation of institutional transformation, primarily by fostering elimination of existing administrative mechanisms of inefficient resource allocation.
Feedback from the Central and Eastern European countries may be very useful for Belarus at this point. Today, 30 years after the beginning of the economic transformation, the relative welfare level in all the post-socialist countries of Central and Eastern Europe is higher than in the so-called times of socialism. Despite not being a completely homogeneous group, the CEE countries share a common experience of economic transition. Evidently, countries that started reforms earlier and acted consistently and fast achieved the greatest successes. The continuous development of the institutional environment and structural competitiveness has been a key element of the CEE economic transition, ensuring convergence with the Western European economies. Poland was a pioneer of economic transformation that started in 1989, and it achieved one of the best economic and social results among almost 30 post-socialist countries.
Based on the experience of the CEE countries’ economic transformation, we highlight five lessons for the purpose of the economic reforms that Belarus still faces today:
1. keeping macroeconomic stability
2. restructuring and improving the governance of state-owned enterprises
3. developing the financial market
4. increasing taxation efficiency
5. deepening fiscal decentralisation
To read more about those 5 lessons in a short (13 pages) paper prepared by CASE Belarus together with CASE please click: