Opinions & Interviews

MINSK, 2 November (BelTA) – Belarus has the majority of necessary factors for a successful implementation of structural reforms, Young Chul Kim, World Bank Country Manager for Belarus, said at the presentation of a new economic review on Belarus on 2 November, BelTA informs.

“If there is a country with the majority of necessary factors for a successful implementation of structural reforms than it is Belarus. The only goal is to reformat these factors in order to make Belarusian producers competitive on the world market,” Young Chul Kim said. In his words, if we assess the quality of the human capital in Belarus, including in the engineering, scientific and production areas, we will not find reasons why the incomes of the population in Belarus cannot increase considerably.

According to Young Chul Kim, the macroeconomic stability is a preliminary and mandatory requirement for holding structural reforms. If one undertakes some drastic reforms or launches the rebuilding of the economy when it is extremely volatile, the results of such structural changes can be unpredictable. “The first condition for structural reforms is economic stabilization and the creation of prerequisites to generate bigger revenue is already underway. It is natural that it will take time to get rid of accumulated misbalances. It is important to note that we see the authorities’ commitment to the chosen course. It is seen in the policy of inflation and the exchange rate,” Young Chul Kim said.

Since 2014 the World Bank has held regular discussions to examine each of the components of the structural reforms. The roadmap of the reforms prepared by the World Bank is based on dialogue which the parties were engaged in over the past 18 months. "We presented the document to the government, and they agreed with the majority of the areas identified in it," said Yang Chul Kim.

The WB new review noted that the implementation of consistent reforms with the support of international partners and investors can be a powerful stimulus to growth. The essence of the reforms should be the removing of barriers to more effective business, primarily through freeing the resources concentrated in the state-owned enterprises and inefficiently used, including through support in the form of soft loans and debt restructuring. "Time has come for the systemic and targeted action to address the imbalances in the domestic economy, which should ensure sustainable economic growth in the future,” the World Bank experts said.

The World Bank was founded in 1944. The company is headquartered in Washington, D.C. The Bank is composed of five organizations: the International Bank for Reconstruction and Development, the International Development Association (IDA), the International Finance Corporation, the Multilateral Investment Guarantee Agency and the International Center for Settlement of Investment Disputes. The World Bank operates more than 120 offices worldwide. Since the Republic of Belarus joined the World Bank in 1992, lending commitments to the country have totaled $1.5 billion. In addition, grant financing has been provided to various programs.