Belarus

Economy

Belarus's manufacturing industry produces trucks, motorcycles, agricultural and mining equipment, machine tools, chemicals, fertilizers; textiles and consumer goods. The chief trading partners are Russia, Ukraine, Poland, and Germany. The GDP is 70.5 billion USD, with a growth rate of 6.4 percent. Over 50 percent of the population work in the service industry, and 34.7 percent in the manufacturing sector. Currently, the workforce numbers 4.305 million, with an unemployment rate of only 2 percent. However, many Belarussians are underemployed, and about 27 percent of the population are either at or below the poverty line.

Related Topics:
Truck - Russia - Ukraine - Poland - Germany - GDP - USD - Service - Unemployment - Underemployed - Poverty line

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President Lukashenko launched the country on the path of "market socialism" in 1995. In keeping with this policy, he re-imposed administrative controls over prices and currency exchange rates and expanded the state's right to intervene in the management of private enterprise. In addition to the burdens imposed by high inflation rates, businesses have been subject to pressures from central and local governments, such as apparently arbitrary changes in regulations. Many profitable businesses that were privatized during early 1990s have now been nationalized, in what has been described as "creeping nationalization". {{ref|marketsocialism}}

Related Topics:
Socialism - 1995 - Inflation

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Bad harvests in 1998 and 1999 and persistent trade deficits have strained the economy. Close economic relations with Russia remain important for Belarus economy. The notion of introducing a common currency between the two countries dates back to the formation of the Union of Russia and Belarus by both Yeltsin and Lukashenko in the 1990s. The scheduled introduction of the common currency, which was to be on January 1 2006, has been delayed by the Russian government. The Russians blamed the delay on the Belarusian government's lack of preparation and the Belarusian demand for compensation for the costs of introducing the common currency.{{ref|commoncurrency}}

Related Topics:
1998 - 1999 - January 1 - 2006

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The Belarussian economy remains relatively isolated from the West. Belarus has made no request to join the European Union, but a trade office has been established in Kiev, the Ukrainian capital. The office aims to bring Belarus, Ukraine and Moldova closer on policy issues such as trade and bilateral relations. However, Belarus does have indirect economic partnerships in Europe through the Commonwealth of Independent States and the Eurasian Economic Community. Belarus has tried to increase the amount of foreign investments by offering tax breaks and relaxing various laws and regulations on corporations.{{ref|pravda}} However, the Heritage Foundation has noted that international investors are cautious towards Belarus because of its political instability, government corruption and slow rate of privatization. {{ref|heritage}}

Related Topics:
European Union - Kiev - Commonwealth of Independent States - Eurasian Economic Community - Heritage Foundation

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