Investment? In Belarus!

Development of market economy and restructuring the national economy requires the development and implementation of effective public investment policy. Its necessity is caused primarily by the fact that the investment and the associated structural changes in the economy play a key role in shaping the macroeconomic proportions.

Any business in the normal course of business faces the issue of lack of financial and material resources, in other words, needs investment.

One of the main criterion for creating a favorable investment climate is the presence of a full-fledged credit system that promotes the concentration of investment resources and their efficient allocation. In Belarus, a multi-level credit system is only beginning to emerge and is transient in nature. In fact, the problem is to complete the transition from a rigidly centralized credit system to a market model of organization of the credit system. But this change should be implemented to the extent of movement toward market organization of the economy as a whole.

Today Belarusian banks did not all in order to reduce inflation, the economy of Belarus.
Low proportion of lending operations of commercial banks. Creature negative trends in the development of own credit operations: still a big part of the credit goes into production, and service trade-brokering: a significant portion of the loans are short-term, there is no reliable mechanism to ensure the issuance and repayment, lack of development was a lien , sureties and guarantees, in general insurance.

All of this suggests that many of the activities of financial institutions and the development of the credit system as a whole in the country needs further improvement.

A major role in country's investment attractiveness is the state legislation, its conformity to international standards, stability, binding for all. When the relationships between entities and reforms are fixed by law, there is a high probability of their stability and durability, the investors have the confidence in the stability of the processes, and this country becomes more attractive for investment.

Currently, our law far from perfect, it has a lot of "white spots", coupled with issues of ownership and protection of proprietary rights. There are a number of contradictions in the laws on property of enterprises, between the law on privatization and regulations, does not specify procedures and safeguards for investors, renting the land for investment projects, many of the procedures in the legislation unnecessarily complicated. But all of this is correctable. Main observe the law and civilized to improve it, because otherwise we are unpredictable, and therefore unstable in the eyes of potential partners.

In the credits, both short-and long-term, require all businesses irrespective of ownership, management methods. Long-term lending in the high risk area, but alas, our commercial banks do not have such amount of funds to carry out this activity. Therefore, the proportion of investment loans remains low.

Before the national economy of the country the task to revive investment, and as soon as possible. Need a stable currency, stable laws and stable taxes, competent leadership. Necessary to achieve the economic development that went into the savings banks, investment funds, financial companies and began working for the benefit of the economy.

The ratio between foreign capital and private national capital, invested in investment processes, at first glance seems simple. Experience from other countries suggests that it is impossible to create attractive conditions for foreign capital is not created for her, or national. Must clearly understand that foreign investment will not go into the economy while it will not be internal. Investment should be attractive to the national capital in the first place, and then for a foreign language.

For our country, which embarked on integration into the global economy and strive to create an open economic system, participation in the processes of movement of capital and as an importer, exporter and as a matter of strategic importance. Today Belarus' participation in these processes can hardly be called active, and in terms of attracting foreign investment it will have to compete with countries whose markets are now more attractive to investors.
Therefore, the attraction of foreign investments into the Belarusian economy is one of the most important tasks to be in the coming years to solve the economic leadership of Belarus.

Alena Makarevich, a columnist of UTB