In an attempt to fixate and extend the effects of currency devaluation, the Belarusian government and the National Bank have chosen internal devaluation as its leading policy. Internal devaluation means lower incomes and a more prudent fiscal and monetary policy will follow. But can internal devaluation serve as an alternative to structural reforms in Belarus? And, most importantly, can the authorities truly commit to tightening up their policies in presidential election year and facing threats of unemployment?

Belarus is reeling from the effects of the wobbling oil price and Western-imposed sanctions on Russia. The economy is now paying for the absence of liberal reforms through a decrease in manufacturing, the depreciation of the national currency and the need for budget cuts. The lack of good economic and political news suggests that the recovery will take a long time. But approaching the bottom provides an opportunity to fix bad economic policies and to build a new economic structure using innovative technologies.

For 2015, any positive growth would be considered a great success for the Belarusian authorities. Apart from external shocks, several structural challenges have emerged. A spike in inflation, deeper depreciation of the national currency, the distress of the banking industry, and growing unemployment have all become urgent issues that must be addressed. The government is trying to formulate a coherent response to all of these issues. So far the signals from the government suggest it is going to focus on tools of direct administrative control.

Belarus's GDP growth managed to strengthen in November. But despite this, many signals about an upcoming downturn have appeared. The Russian economic contagion began to spread to Belarus through trade and informational channels. The government reacted by introducing a de-facto 30% devaluation that was accomplished in a rather ‘creative’ manner. But this decision seems to be more like a short-term relaxation than anything else, while further adjustments have become inevitable.

Belarusian Economic Research and Outreach Center (BEROC) in cooperation with the Swedish International Development Cooperation Agency (SIDA) and the Embassy of the Kingdom of the Netherlands launched the IV Student School in Modern Economics in Minsk on November 1, 2014.