By Olga Makei: The Government has proposed to improve business environment in small towns and rural areas. 2012 saw the adoption of the President’s Decree No. 6 in order to enhance the economic potential of the regions and create an attractive environment for investments in the country’s economy. The document provides for a number of preferences for local businesses. As noted by the Government, positive effects of its implementation are obvious. The number of economic entities in these territories has increased by 38 percent. Now the main goal is to give new impetus to Decree No. 6 in terms of creating new jobs and companies.
The private initiative in the provinces has been given scope for creativity in 2012, unprecedented terms of benefits and business organisation in small towns and rural areas. To stimulate entrepreneurship in the regions, the income and property taxes, as well as state duty for licensing have been abolished. If the company operates in a rural area (i.e. registered there and produces goods), it is eligible for benefits in the first 7 years. In the first year when the new rules were introduced, the number of newly registered companies in the regions grew three-fold compared to major cities.
The liberalisation of doing business in the provinces means the inflow of investments, and, consequently, new jobs and an incentive for the regions, resulting in the even development of the country’s economy, which is a priority for Belarus.
It has been three and a half years since the entry into force of Decree No. 6. Is there any effect and what has to be improved? Such questions have been asked by the President at today’s meeting. According to First Deputy Prime Minister Vasily Matyushevsky, the number of newly registered companies in the regions grew 14 times compared to major cities since the introduction of Decree No. 6. 38,000 new companies in the regions is the main result of the Decree, which is a major contribution to the budget and a plus to the country’s GDP. However, the Government is confident that the Decree requires being amended. The Government is now taking a 2-3 week break to complete the document. The changes are aimed at giving impetus to creating of new companies and, therefore, jobs in small towns, where labour is abundant, but initiatives are lacking.
The improvements in Belarus’ business climate can be traced in the World Bank’s authoritative Doing Business ranking. This year, Belarus has gone up from the 57th place to the 44th, entering the CIS top three and outrunning all BRICS countries. Belarus is the 7th in terms of the ease of registering a business, 12th in registering an enterprise in the country’s territory, 25th in the absence of barriers in foreign trade and 34th in the ease of obtaining a construction permit.
According to the World Bank, since 2006 Belarus has conducted 32 reforms. Among the important decisions taken recently in the business sphere are the abolition of the “golden share”, Decree No. 1 with declarative business registration and Decree No. 4 on economy liberalisation.
In short, a lot of complex work has been done to make Belarus attractive to foreign investors and develop internal business activity. According to experts, the regional business is currently one of the main market players and one of the sources of the country’s economic growth.
