{"id":128826,"date":"2025-03-06T14:42:23","date_gmt":"2025-03-06T11:42:23","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/128826\/"},"modified":"2025-03-06T14:42:25","modified_gmt":"2025-03-06T11:42:25","slug":"officials-struggling-to-find-fair-pricing-formula","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/128826\/","title":{"rendered":"Officials struggling to find \u201cfair\u201d pricing formula"},"content":{"rendered":"\n

On February 28, Alaksandar \u0141uka\u0161enka instructed executives of state-run companies to cut costs if they want to increase profit margins, emphasizing that he would not compromise on price controls. He also criticized Deputy Prime Minister Mika\u0142aj Snapko\u016d and the chief statistician, Ina Miad\u017adzviedzieva, for failing to establish a fair pricing formula.<\/strong><\/p>\n\n\n\n

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\n (Jakub Zerdzicki \/ unsplash.com)<\/span>\n <\/div>\n <\/figcaption>\n<\/figure>\n\n\n\n

Belarus struggles with inflation<\/h2>\n\n\n\n

Russia\u2019s invasion of Ukraine in 2022 triggered inflation across Europe, including Belarus. The Belarusian government managed to curb inflation through price controls. However, the government’s deep involvement in the economy has made it difficult to reverse these measures. While inflation has been kept in check, it has come at the cost of low profitability, bankruptcies and an overheating economy.<\/p>\n\n\n\n

Local businesses have been hit hardest, losing market share to importers. As a result, foreign brands have gained dominance in the domestic market, while Belarusian manufacturers have seen their positions weaken both locally and internationally.<\/p>\n\n\n\n

\u0141uka\u0161enka returns to basics amid market struggles<\/h2>\n\n\n\n

After two years of market intervention, the government is considering a return to basic economic principles. The focus has shifted to benchmarking\u2014an approach commonly used to assess efficiency.<\/p>\n\n\n\n

\u201cLet\u2019s examine the production costs of cucumbers and tomatoes and identify the farms that should serve as benchmarks. The weaker ones will have to catch up, and those above average will thrive,\u201d \u0141uka\u0161enka explained at the meeting.<\/p>\n\n\n\n

However, the core issue is far more complex. Excessive regulation is eroding the competitiveness of Belarusian companies, making imports more attractive than domestic products, thereby weakening the economy.<\/p>\n\n\n\n

Bie\u0142stat head Miad\u017adzviedzieva attempted to explain how the market operates, but her comments were met with severe criticism. Snapko\u016d\u2019s objections were swiftly dismissed.<\/p>\n\n\n\n

Leadership paralysis<\/h2>\n\n\n\n

The main challenge for Belarusian officials lies in their lack of initiative. They strictly follow orders and avoid making independent decisions or demonstrating creativity. Vague directives from \u0141uka\u0161enka are often ignored, as any decision risks a mistake.<\/p>\n\n\n\n

\u0141uka\u0161enka demanded a \u201cfair\u201d pricing system without clarifying his expectations. However, during the February 28 meeting, he provided more specific instructions:<\/p>\n\n\n\n