Poland broadcasts "truth" to Belarus

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Not until they're bankrupt.

Why would they go bankrupt?

The burden of state ownership. Their currency is weak, Lukashenko's government often prints money to finance expenditures. It's exacerbating its value.

Compared to Russia, with its strong Ruble(which some say is too strong), Belarus' inflation is considerably smaller, with 6.6% inflation, compared to Russia's 9.9%. Also, they were going to have common currency with Russia, but changed their mind December 6th, even before even the Gazprom negotiations.

Even if inflation is exceeding, there's no answer to how the government will adequately finance its expenditure. The lack of financial market cause the inability to borrow and raise investment.

There's enough finances for expenditure right now, no? I mean there's probably investment into Belarussian enterprises from Russia and Ukraine. It's business legislation is similar to Russia's except there was no privatization.
You can still start a joint stock company. Large enterprises like MAZ(makes busses and trucks) are still RUP's(Republican Unitary Enterprises), but no one's stopping you from starting your own if you get enough investment(of course most of this comes from abroad...).

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There's enough finances for expenditure right now, no? I mean there's probably investment into Belarussian enterprises from Russia and Ukraine. It's business legislation is similar to Russia's except there was no privatization.

Ideally, an economy must have a well managed banking and financial sector. It guarantees the easiness of raising loans for companies to finance operation and such. These days, that is the necessary rudimentary support. Now, FDI inflow will be needed, not just by foreign companies, but also by government. FDI inflow into Belarus was poor.

World Bank Report on Belarus wrote:

International experience suggests that high rates of growth in exports and considerable economic growth in general, are impossible without substantial FDI inflow. Meanwhile, FDI inflow to Belarus remains very low, suggesting Belarus is underutilizing its strategic advantages, such as geographical location, human capital capacity, and privileged access to the Russian market.

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Large enterprises like MAZ(makes busses and trucks) are still RUP's(Republican Unitary Enterprises), but no one's stopping you from starting your own if you get enough investment(of course most of this comes from abroad...).

Well, not with the current laws which controls the market penetration I think.

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Ideally, an economy must have a well managed banking and financial sector. It guarantees the easiness of raising loans for companies to finance operation and such. These days, that is the necessary rudimentary support. Now, FDI inflow will be needed, not just by foreign companies, but also by government. FDI inflow into Belarus was poor.

The Belarussian economy is mainly a command economy, so the defitions change. If the economy is performing as successfully as it is now, I don't see why it needs much more investment. What I don't understand is that with the current state of things - why would it fail for internal factors?

By the way, Belarussian state bank(s) give loans for businesses.

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What I don't understand is that with the current state of things - why would it fail for internal factors?

Why not? When they command massive industries, they need to control the debt. How many industry will be needed to be financed? If the goverment owns the bank, then further loans made is another debt to the government. The debt accumulates and they won't find enough money. FDI inflows regulate these areas, it offers injections for the enterprise coffer.

If the industry is profitable, it contributes to the treasury instead of taking away from it. The bank makes loans from deposits(the amount of money Belarussians put in banks grew 1.4 times from July 2005 to July 2006, though still pretty insignificant.) Though the banking sphere isn't as developed as say Russia's, business loans are still done from both state and private banks, as the government sphere uses most of the crediting potential in Belarus.

By the way, sorry that my links are in Russian, but that's the only lnaguage that most of the financial news about Belarus is available in.

The industry is under heavily tax regulations, it's not allowing any expansion and profitability. Belarus is hardly a place to do business. Even if the state enterprise make profit, they are doing so because of massive subsidies. Subsidies to the state industry amounted 6% average of GDP.

Tim you contradict yourself. If real GDP is increasing, they will get the funds by themselves to pay their debts.
Belarus external debt is not that much.

Anyway, when a state bank give a loan to a state enterprise, that only means that the State re-invest its cash flows into its own economy.

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Even if the state enterprise make profit, they are doing so because of massive subsidies.

And where do the funds come to pay the subsidies? From taxes on enterprises revenues.
In the end, everything balance. And real GDP increase by 9%.

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Lukashenko's government, unlike the others, has tried to maintain some of the Soviet state systems to prevent the social degradation that happened to the rest of Eastern Europe.

Belarus' government is republican (even if the alleged election fraud did not happen in Lukashenko's most recent reelection, he still would have won fairly)

Eastern Europe is in a far better situation then it was under Soviet Union

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Yeah, Belarus had a growth rate of only 9.9%/year, which is higher than Russia's 6.9 - where the enterprises have been privatized.

You have probably never done business in Russia. Doing business in Russia is a lot different then doing it anywhere else in the world. Highest corruption I have ever seen.
The law is a joke.
In Russia you either loose the investment completely or make a lot of money. Thats the only possibility's there.

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The industry is under heavily tax regulations, it's not allowing any expansion and profitability. Belarus is hardly a place to do business. Even if the state enterprise make profit, they are doing so because of massive subsidies. Subsidies to the state industry amounted 6% average of GDP.

Belarus is the place to do business if you want to do it off the books If you try to do business there honestly it is impossible.

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And where do the funds come to pay the subsidies? From taxes on enterprises revenues.
In the end, everything balance. And real GDP increase by 9%.

Why subsidies the industry? I would rather pay less money to the government and choose what I do with my money. Subsidized businesses are almost always inefficient.

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Eastern Europe is in a far better situation then it was under Soviet Union

You just all the time say some slogans as:'Socialism was bad' etc.

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You have probably never done business in Russia. Doing business in Russia is a lot different then doing it anywhere else in the world. Highest corruption I have ever seen.
The law is a joke.

In every post soviet country or post east block is enormous corruption and it's all by the 'elits' that 'liberated' these countries, the country without law is also better for making money from it by the foreign capitalists. See many examples from past:
Turkey in the XIX and later till I world war and many others half-colonial states which now are many in eastern Europe.

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Why subsidies the industry? I would rather pay less money to the government and choose what I do with my money.

What you call subsidies are in fact reinvestment into its own production. In capitalism too, companies reinvest their own cash flows in their own business. That's a normal thing to do, because of comparative advantages. They know where investments are needed, since it's their own company, where individuals (especially people like you) don't know at all.

What is abnormal is when the State subsidy the private sector. Useless and inefficient waste, I agree.

'Belarussia's only free and independent media'. To translate and understand what the US and its proxies such as Poland mean when they use this langauge; a free and independent media is one thats funded by US corporations or the state department, run by people in another country, whose stated goal is to to create hostility against a wildly popular government that is improving the living standards of its people, destabilize and overthrow said government, and replace it with one that will be subserviant to US corporate interests.

Ah yes, a good topic to voice your views on, especially since it is so topical for... *squints* 2007? Where did you even find this?

lol if it weren't for necroposts like this we'd have like no traffic.

Honestly tho I expected a western oriented coup to have succeeded in Belarus by now. Seems pretty improbable now.

Belarus kinda mirrors Russia, if Russia goes to the right and is all about capitalism, liberalism, etc, Belarus goes to the left with Soviet nostalgia, state management of economy, etc. Now that Russia has gone somewhat to the "left" with Soviet nostalgia and import substitution, Belarus is going to the right by tolerating ethnic nationalists, increasing foreign investment, etc. I'm sure that at some point the contradictions between the two approaches will one day mobilize a part of the population against Lukashenko while leaving the others indifferent, but like Mubarak in the 80s and 90s, he is still able to handle having ambitious political positions