Ninety-eight economists of 17 countries urge Belarus’ leadership to stop escalation of violence to prevent fatal impacts on economy and population
<p> MINSK, Aug 19 - PrimePress. Ninety-eight economists of 17 countries publicly addressed the Belarusian authorities, calling on to stop the escalation of violence to prevent fatal impacts on the national economy and the population of Belarus, such as an accelerated outflow of human and financial assets, a decrease of the sovereign credit rating of Belarus to the “junk” level, and the loss of macroeconomic stability. The appeal was signed by representatives of reputed universities and think tanks of Australia, Austria, Great Britain, Germany, Italy, Poland, the United States, including Leszek Balcerowicz, Stanislaw Gomulka, Roel Beetsma, Christopher A. Hartwell and Georg Fischer. The text of the appeal was published on the website of the Center for New Ideas on August 18. </p> <p> </p> <p> “Although the loss of human lives and suffering from the deliberate human rights violation cannot be recouped, you, the persons who influence policies, can still make every effort to save the nation from further tragedy and earn respect in the future,” reads the statement. </p> <p> </p> <p> According to the economists, escalation of force and further abuse of human and economic rights would have catastrophic economic repercussions for Belarus. Without well-articulated commitments to restore human and democratic rights and guaranteed discontinuance of the forceful confrontation with social and political protests, the country will face a devastating economic decline, in particular, an accelerated outflow of human and financial assets. </p> <p> </p> <p> Investments will decline, foreign capital will no longer be accessible, and the confidence in the financial market [of Belarus] will be lost. A great number of health professionals, engineers and skilled workforce will leave the country. Belarus will not become an “IT-country” by blocking the Internet for its residents and businesses for political reasons. </p> <p> </p> <p> The sovereign credit rating of Belarus would drop to a junk level, which would lead to an even greater increase in the cost of servicing public debt, and, consequently, to an increase in the tax burden and/or a decrease in government revenues and deterioration of public services. </p> <p> </p> <p> Macroeconomic stability would be lost. “The loss of human and financial assets and limited access to international financial markets will lead to macroeconomic instability. This will cause high inflation, depreciation of the Belarusian ruble, higher dollarization of the economy and, possibly, a crisis in the banking system. Belarus is a small open economy with relatively little natural resources. </p> <p> </p> <p> “As the economic history shows, disrespect for human dignity sooner or later leads to economic collapse, and the courage of officials who tell the truth and act openly is a catalyst for well-being. Belarus deserves a better future,” the economists say. End </p>
2020-08-20
Primepress
Ninety-eight economists of 17 countries urge Belarus’ leadership to stop escalation of violence to prevent fatal impacts on economy and population
MINSK, Aug 19 - PrimePress. Ninety-eight economists of 17 countries publicly addressed the Belarusian authorities, calling on to stop the escalation of violence to prevent fatal impacts on the national economy and the population of Belarus, such as an accelerated outflow of human and financial assets, a decrease of the sovereign credit rating of Belarus to the “junk” level, and the loss of macroeconomic stability. The appeal was signed by representatives of reputed universities and think tanks of Australia, Austria, Great Britain, Germany, Italy, Poland, the United States, including Leszek Balcerowicz, Stanislaw Gomulka, Roel Beetsma, Christopher A. Hartwell and Georg Fischer. The text of the appeal was published on the website of the Center for New Ideas on August 18.
“Although the loss of human lives and suffering from the deliberate human rights violation cannot be recouped, you, the persons who influence policies, can still make every effort to save the nation from further tragedy and earn respect in the future,” reads the statement.
According to the economists, escalation of force and further abuse of human and economic rights would have catastrophic economic repercussions for Belarus. Without well-articulated commitments to restore human and democratic rights and guaranteed discontinuance of the forceful confrontation with social and political protests, the country will face a devastating economic decline, in particular, an accelerated outflow of human and financial assets.
Investments will decline, foreign capital will no longer be accessible, and the confidence in the financial market [of Belarus] will be lost. A great number of health professionals, engineers and skilled workforce will leave the country. Belarus will not become an “IT-country” by blocking the Internet for its residents and businesses for political reasons.
The sovereign credit rating of Belarus would drop to a junk level, which would lead to an even greater increase in the cost of servicing public debt, and, consequently, to an increase in the tax burden and/or a decrease in government revenues and deterioration of public services.
Macroeconomic stability would be lost. “The loss of human and financial assets and limited access to international financial markets will lead to macroeconomic instability. This will cause high inflation, depreciation of the Belarusian ruble, higher dollarization of the economy and, possibly, a crisis in the banking system. Belarus is a small open economy with relatively little natural resources.
“As the economic history shows, disrespect for human dignity sooner or later leads to economic collapse, and the courage of officials who tell the truth and act openly is a catalyst for well-being. Belarus deserves a better future,” the economists say. End