Lukashenka’s modernization program failed. What’s next?

“Modernization is key to the survival of our economy. And the economy here means our state,” said Alyaksandr Lukashenka.

In 2011-2014, Belarus spent $ 30 billion on industrial modernization. The modernization program for 2017- 2020 is to be 10 times smaller. Although the said program is not the only one used for financing of modernization, experts have discovered an alarming trend: the amount of funds that the state is able to invest has been rapidly going down every year.

Alyaksandr Lukashenka launched a massive campaign.

The main objective of the program is a low-cost modernization of a number of industries in 2008. The year of 2013, called the year of modernization, was to become the deadline for the result of these investments.

Domestic wood finishing, after $ 2 billion invested into it, continues to operate at a loss. According to the latest public data, in the first half of 2016, all modernized woodworking enterprise except one operated at a loss. “Ivatsevichidrev” managed to break even. All of them are supported by the state this year.

In other words, the Belarusian taxpayers paid half of the annual GDP to ensure that the flagship of the domestic industry could, albeit with a loss, continue working and paying salaries.

Stanislau Ivashkevich, “Belsat”, photo:

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