29 March 2024, Friday, 4:01
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In Belarus Real Wages Are Even Less Than Minimum Ones

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In Belarus Real Wages Are Even Less Than Minimum Ones

This is a shameful result of Lukashenka's presidency.

Since the New Year the minimum wage on paper has risen from Br305 to Br330 ($152) in Belarus. Despite such a "generous" increase, in comparison with neighboring countries, Belarus has found itself on the last place among the "minimum wage" level. Even in the neighboring warring Ukraine it is higher.

Charter97.org asked economist Leu Marholin for comments:

- Such a minimum wage is a disgrace, even though the minimum wage is raised every year. Let me say that the main challenge is not that the minimum wage is only 330 rubles, which is less than in neighboring countries, but that people do not earn it in many settlements, especially in district centers.

They get 150-200 rubles. Employers can easily bypass the restriction. Although, it would seem that the law does not allow anyone to pay less. People just work less, that is, as less as the employer needs. If there is a possibility to pay 2/3, it means that a person gets legally 220 rubles ($110), if not, then 165 rubles - a part-time job.

The situation is such that the minimum wage in our country is extremely low, but it is impossible to raise it yet. This is the result of Lukashenka's presidency. If the minimum wage, for example, is 400-500 rubles, then everyone will work short hours and a short-time week. The economy can't afford such a minimum wage. This is the position we are in. In my opinion, unless the economy is reformed, the situation will not change.

- Why is the minimum wage formal in Belarus? After all, it is not real to live off such money at current prices.

- The thing is, if we had a market economy, then the state would be obliged to protect workers' rights. When the major part of the economy belongs to this state, the minimum wage becomes formal.

Belarus is a member of various international organizations and trade unions. To prevent any complaints there, the minimum wage should be fixed. On paper. Although, as I said, it does not make any difference.

- In the 1990s Belarus, Lithuania and Poland had equal economic conditions. Why have we fallen behind the neighboring countries?

- Apparently, Poland has taken a decisive step on the way of reforms, while the Belarusian government has decided to suck up to neighboring Russia and “piggy-back” on it. As long as Russia was "flourishing", we could survive somehow. When Russia faced problems, they increasingly affected Belarus.

I emphasize that unless decisive, cardinal, systemic economic reforms are carried out, no use will be made.

- Salary remains after basic payments indicate the standard of living in the world. This year Belarus is planning to increase the utility charges in two steps, while many people say that little money is left after all payments. What should people earning $152 do?

- I'm sure the imbalance between utility charges and wages will only increase. I would highlight two reasons here. First of all, because utility bills are a "black box". Nobody knows how tariff rates are settled. We are told that we are already paying 80 percent of the cost of housing and utility services, but next year it turns out that it's only 60 percent. This sphere is very opaque and, unfortunately, no competitive environment exists here.

The situation will continue as long as the people tolerate it. As soon as they stop doing so, previous figures will be immediately restored. It is necessary for the Belarusians to become indignant and fight!

What do the authorities do? The price is gradually raised, they watch the reaction. Just remember how gasoline prices rose 28 times last year.

Belarus inherited the Soviet housing and utilities system. It needs to be reformed. It should not be a system, but a market environment where legal entities and entrepreneurs compete for the right to provide services.

I assure you, these services could be quite profitable. If the service provider overpriced, he or she would face the termination of contract and another provider could perform. People would have benefited a lot from that.

It seems to me that the state must get rid of this burden - housing and communal services. In general, our entire economy requires radical reform and the housing and utilities sector is no exception here.

- What do you think would happen to officials and ministers if they had to be in shoes of ordinary Belarusians and to live a month on $152?

- Of course, they wouldn't live off this money. It's easy to write numbers on paper, but it's different to experience it. Although I assure you that many people have to live on less in the countryside. People have to run plot activities, pick mushrooms, berries.

Officials are far from problems of the population. They would find thousands of excuses. They would discuss that the economy should be reformed, but it all depends on one person and unless the people make him decide, we will keep living like this.

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