**5. Conclusions**

*Public Sector Crisis Management*

growth in Belarus. Now it faces new dilemma *if* the state capitalism is capable of doing that. If public values behind economic anemia have changed dramatically, then it would mean that the issue of state capitalism efficiency has moved from

Belarusian's public values could be compared in different time periods of economic growth and economic anemia (**Table 2**). There is no strong evidence that people are looking for solutions of economic problems in the ownership of business. More likely they see other reasons of economic anemia in Belarus rather than private vs. state ownership of business, as the two are interconnected in the country. Moreover, Belarusians prefer the government to take more responsibility during hard times and less the people themselves. When economic growth is high, people also have high confidence in the government. But when economic growth is low, the public confidence in the government is decreasing. So it is easy to see that economic growth fluctuations in Belarus are reflected in the public opinion on the responsibil-

Some more observations of Belarusians public values behind economic anemia could be added that influence on the business climate and the health of society. So important for economic growth trust is decreasing during economic slowdown. In 2010–2014, the answer "most people can be trusted" has been decreased from 41 to 33%, and the answer "need to be very careful" has been

GDP growth, average % 0.1 5.18 7.68 3.52

A great deal, quite a lot 47 Not

Private ownership should be increased

People should take more responsibility

Not very much, not

at all

*Public values and economic growth in Belarus, % of total respondents [30].*

Government ownership should be

Government should take more responsibility

increased

**1994– 1998**

Medium 22 23 26 21

Medium 5 19 19 5

46 Not

Very good, fairly good 49 34 62 47 Bad, very bad 39 50 25 52

Very good, fairly good 44 63 52 56 Bad, very bad 34 17 30 42

Very good, fairly good 12 16 13 9 Bad, very bad 74 69 72 91

Very good, fairly good 66 67 72 85 Bad, very bad 16 8 9 15

**1999– 2004**

8 9 8 11

18 8 4 6

5 12 12 4

29 16 6 23

60 56

30 43

available

available

**2005– 2009**

**2010– 2014**

economic to sociological and political fields of science.

ity of the government and its state capitalism.

Private vs. state ownership

of business

Responsibility: government vs. people

Confidence: the government

strong leader

democracy

Political system: having a

Political system: having experts make decision

Political system: having the army rule

Political system: having

**80**

**Table 2.**

Belarusian state capitalism is the hybrid regime of transition economy. Currently it covers only half of GDP, half of employment, and around 60% of banking assets and banking capital. It is based on the high level of public expenditures to GDP, medium level of tax burden, and wide range of state-owned enterprises. There are plenty of underdeveloped financial instruments in Belarus that could support its state capitalism nowadays, like banking system, financial market, monetization of GDP, and foreign direct investments.

In 1996–2010, state capitalism boosted high economic growth in Belarus on the level of average 7% per year. But it was also accompanied by high inflation, current account deficit, and currency crises. In 2011–2019, Belarus faced some traps on the way of its economic growth: "debt trap," "middle-income trap," "social burden trap," "resource curse trap," "conflict neighbors trap," and "forceful pressure trap." They all lead to the economic anemia in the country on the level of a little more than 1% per year during last decade.

Belarusian state capitalism exists because of public support, based on economic equality, and the rise of incomes. During economic growth such public values like the memory of the war, family orientation, language, sense of ownership, and various phobias supported state capitalism in Belarus. But, during economic anemia, the fall of incomes, the public attitude to political system has changed dramatically and brought state capitalism existence to new crossroads.
