World Bank's Belarus: prices, markets, and enterprise reform PDF

By World Bank

ISBN-10: 0821339761

ISBN-13: 9780821339763

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Additional info for Belarus: prices, markets, and enterprise reform

Sample text

These problems were made even worse by the distortions that were introduced to compensate for these imbalances and sustain living standards. For example, the directed credits that were used to support failing enterprises led to high rates of inflation; efforts since early 1995 to control inflation by stabilizing the exchange rate have produced a serious overvaluation of the exchange rate. This has seriously eroded the competitiveness and profitability of the enterprise sector in this traditionally open and heavily trade-dependent country.

This infrastructure was poorly suited for competition in world markets when the former Soviet Union collapsed in 1991, and it is in even worse condition today because of inadequate investmenteven for maintenance in many casesduring the intervening years. The investment required vastly exceeds that which the Government could possibly mobilize. One of the top priorities of the Government today is therefore to attract private investors, both foreign and domestic. Current rates of net fixed capital formation are close to zero, and foreign direct investment is among the lowest in the FSU and Eastern Europe on a per capita basis, reflecting serious problems with the business and investment climate in Belarus today.

This infrastructure was poorly suited for competition in world markets when the former Soviet Union collapsed in 1991, and it is in even worse condition today because of inadequate investmenteven for maintenance in many casesduring the intervening years. The investment required vastly exceeds that which the Government could possibly mobilize. One of the top priorities of the Government today is therefore to attract private investors, both foreign and domestic. Current rates of net fixed capital formation are close to zero, and foreign direct investment is among the lowest in the FSU and Eastern Europe on a per capita basis, reflecting serious problems with the business and investment climate in Belarus today.

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Belarus: prices, markets, and enterprise reform by World Bank


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