Belarus should make a commitment and set clear goals to reduce the share of state-owned economy and enhance management in the public sector.
Galina Yaschenko, Project Manager at McKinsey&Company, made this statement on September 8, at a roundtable conference dealing with the findings of a survey, which sought to find solutions for creating a more effective system of state property management in Belarus.
One of the knotty problems of Belarus’ privatization is that it has been a protracted process spanning 25 years, the expert said. In her opinion, in the next several years Belarus needs to reduce the share of state-owned economy to 30%.
“International practices show that private companies are more flexible and mobile, demonstrating a higher degree of efficiency in comparison with state-owned companies”, said Galina Yaschenko.
In the meantime, the public sector remains dominant in Belarus: according to 2010 estimates, the share of state-owned economy accounted for 70%, to compare with 40% in Ukraine, 35% in Russia, Slovakia and Estonia – 20% each.
It is important that the remaining state-owned companies should become more effective in terms of property management. The expert believes the most acceptable solution for Belarus would be to keep state-owned enterprises under the wing of state-owned holding companies. A holding company is a way of centralizing resources and attracting effective managers, using the best international practices and creating an effective motivation system based on the long-term shareholder value. (Prime-TASS/Business World Magazine)
