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Deep Economic Crisis

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Belarus is "a deep economic crisis', says ex-head of the National Bank Stanislav Bogdanovich. About this expert said, speaking March 30 in Minsk on anti-crisis forum of the United Democratic Forces. On He said, 'the origins of the crisis – in the country and the world financial crisis has only exacerbated it. " The main reason for the crisis Bogdankevich called mistakes in economic policy of the authorities: selection of command-administrative model development, the failure of structural adjustment, saving the economy through profitable sector (Russian price subsidies), 'substantial economic ballast' in the form of inefficient jobs, inhibition of Small and medium businesses. As a result, said Bogdankevich, with GDP at 129 bln. rubles in 2008, not sold 46 trillion., or 35% of annual production. Bogdankevich noted several deficiencies in the conduct of the government's anti-crisis policy.

He believes that authorities lack a holistic anti-crisis program, de-bureaucratization and liberalization are slow. Bogdankevich stressed that the authorities need to address the nation in recognition of their mistakes. 'You must abandon the Soviet model of governance and access to the market, unleash the human capital to pass a substantial portion of finance and authority to the regions' – he said. The former head of the National Bank says necessary to reduce 30% of funds allocated for the maintenance of government, impose a moratorium on taxes and validation for small and medium-sized businesses. International Monetary Fund forecasts that in the current year Belarus expects recession. Meanwhile, recession going on in Belarus for more than two consecutive quarters – from September 2008. Given the rise of other negative factors – the increase in the deficit, reducing the profits of the enterprises – we can say that the economy is already in recession.

General

Yet Another Related Posts Plugin

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General

World Industry Economy

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It is expected that in the second half of 2012 the global industry growth is going to decline, but still remains to slow recovery tendency. The traditional industrial growth will slow down, while the emerging industry maintains a rapid growth momentum. The trade deficit in some developed countries continues to increase, whereas the trade growth is about to expand among the emerging nations. Along with the quickening backflow trend of the developed countries, the emerging ones have accelerating the industrial transformation and upgrading, which is bound to lead to fiercer competition among the global manufacturing. Affected by the constant upgrading from European sovereign debt crisis, the world economy growth in the second half of 2012 will slow down obviously. Moreover, some new circumstances may emerge in the world industry development as well.

The recovery momentum in American manufacturing (ore beneficiation) turns out to be evident, but it shrinks in European manufacturing industry obviously. It appears a quick decline in industrial growth in emerging countries. On July, 20th, the industry trend forecasting group of CCID think-tank world published to report about Analysis and Forecast of the World Industry Trend in the Second Half of 2012. It is pointed out that there exist a lot of profound problems in the global industrial development. It is estimated that in the second half of 2012, the industrial growth is prone to a slight decline, but still maintains a slow recovery.

The traditional industry growth will slow down, and the emerging industry will keep a rapid increasing tendency, the trade deficit is about to augment while the trade growth is going to expand continuously among these new countries. Along with the quickening backflow trend of the developed countries, the emerging ones have accelerating the industrial transformation and upgrading, which is bound to lead to fiercer competition among the global manufacturing. Our country is still at the critical stage of industrial transformation and upgrading, therefore taking active actions will do a great help to reinforce the sustainable development capacity of our industry and mean a lot for the overall industrial development.