The longer delayed the adoption of radical decisions in the economy, the more the situation worsens.
During the year the number of unprofitable enterprises in Belarus has increased by 24.8% and 1 June 2016 amounted to 1.7 thousand. Their share increased from 18.3% to 22.8%, BelaPAN quotes the national statistics Committee.
The net profit of all companies amounted to 19 trillion rubles, which is 20.7% less than in the first half of 2015. Profit from sales was 59.9 trillion roubles (decrease by 4.4%). The return on sales decreased from 8.3% to 7.1%, the return on sales was 8.8%, against 10.5% in the first half of last year.
Revenues from sales of products, goods, works and services in current prices amounted to 841,1 trillion rubles. It is 12.3% more than in January-June of 2015.
As at July 1, receivables totaled 295,8 trillion roubles, including overdue – 73 trillion rubles. Trade payables amounted to 378,6 trillion roubles, including overdue is 69.5 trillion rubles.
What’s going on?
– There is a slow but sure degradation, the economist LEU Marholin. – Effective demand drops significantly, and in Russia, and, of course, we have. A normal company would be sharply reduced, the “extra” manpower, a normal state would take over the social protection of unemployed. But in Belarus this is not happening. Accordingly, the rising production costs, falling wages, leaving skilled workers, falling quality of products and reduced demand. Such a closed ring degradation can take years.
The main reason for the growth of loss-making enterprises the economist believes the reference to the Russian market.
– The main reason – the sanctions against Russia, a sharp reduction of incomes of Russia from oil and gas, decrease of solvent demand as a whole in the Russian economy. Because we are very much tied to the Russian market, sooner or later, the state of the Russian market had an impact on Belarus, – says Lev Margolin. There is a desire to preserve the remnants of the Russian market: when the market is shrinking, increasing competition. Data on MAZ show that exports to Russia declining not only in absolute terms, but declining market share of MAZ, which simply can not compete. Increased competition sometimes leads to dumping of the enterprise lower prices even below cost, the Belarusian legislation permits this.
The Chairman of the Free trade Union of Metalworkers (SPM) , Alexander Bukhvostov , even the official statistics calls “terrifying”, according to his opinion, the number of unprofitable organizations increased by 30 percent: “In engineering, for example, an accident.”
Even in times when the economy was still growing, official statistics showed approximately 30-32% of loss-making enterprises of the total, he said. In General, says the Union leader, effective enterprises in Belarus were only Belaruskali, refineries and some food processing companies.
“How can it be profitable Minsk bearing plant, if the company only uses 8% of production capacity! If at a bearing factory there are some changes, “Horizon” goes into oblivion,” Bukhvostau said.
He sounded gloomy statistics. Industrial production in 2015 has fallen by 7%. Rate of output per worker in 2015 remains at the level of 2010: about 50 thousand dollars a year. The structure of costs, mainly material (raw materials, electricity) – 70,6%, and only 11% wages. Hence the low wages. In Belarus in General, 33% of low-technology industries, which can not be unprofitable, and 51% srednetagelaya, and high-tech industries only 3.2%. That is, 84% of productions do not meet the requirements of a modern economy, the world level of production.
Fell capacity utilization. Power tractor companies are only used by 41%, machine building – by 38%. Of course, they are all unprofitable, because the simple maintenance of production facilities requires huge costs, says Union leader.
What to do?
– It is necessary to enter other markets, but not with spells and presentations, which are held periodically. We need systemic reforms, new investment, new production, which will be of interest to new markets. In Belarus enterprises, albeit slightly, which retain profitability – these should all be, – says Lev Margolin.
Bukhvostau believes that the slow withering away of enterprises can last for a long time. “Some plants have to close, and some (tractor, MAZ) will work. If these enterprises to carry out internal reconstruction, even without reforming the industrial policy in General, they can have another 10 years to work”, – said Alexander Bukhvostov.
According to him, we should not forget about the bankruptcy of unprofitable enterprises.
We need to actively to resort to the liquidation and bankruptcy of unprofitable enterprises. But in this case there is a question about creating new jobs, high-tech jobs. And in the engineering industry the situation is very difficult. You need to solve the problem of restructuring production facilities: plants – large, the number need to reduce (over five years of industry had lost about 200 thousand): in 2010, there were a million 75 thousand jobs in 2015 were only 923 thousand. We need to radically revise the industrial policy, which is impossible under the current political power. I do not think that there is no industry personnel who do not understand what is happening and what to do; but we need political will.
In addition to political will, which is absent in the Belarusian leadership is needed and the investment that without fundamental reforms in the country will not come:
– Investment opportunities – very low, all in debt. Previously, the industry held in Russia, which, being under sanctions, has begun to protect its own industry. Russian markets declined, and the Belarusian miracle Yudo burst, – concludes A. Buhvostov. – The longer delayed the adoption of radical decisions, the more the situation worsens. All you have to do at the time. Belarusian industry is chronically ill for a long time, exacerbations occur more and more often. And in the end lead to the death industry.
