Инглиш / Economy of the Republic of Belarus
.docx1. Read the text and identify the main features of the economy of the Republic of Belarus. What branches of Belarussian economy in your opinion are the most prospective? Why?
Economy of the Republic of Belarus
Economy in the Republic of Belarus is formed on the basis of a socially oriented market model. Centralized distribution and planning, except for national measures, is absent. The country has a developed power industry, engineering industry, agriculture, chemical and timber industry, construction and manufacture of building materials, mining industry. The country’s GDP accounts for approximately $76.2 billion.
Belarus is not rich in natural resources, so it belongs to the group of states that develop not due to the use of resources, but due to factors of production. Human capital is the most important resource of the Belarusian economy. Many investors call availability of highly qualified human resources in the country one of the reasons why they are investing their capital in Belarus.
Labour market
According to the official statistics, in February 2015 the employed population size was 4 460,1 thousand people, which is 1% less than in February 2014. The number of the unemployed, registered in the bodies of labour, employment and social protection of the population by the end of February 2015 was 35, 9 thousand people, which is 54,9% more than by the end of February 2014 and which is 17,1% more than by the end of January 2015. The level of the registered unemployment for the end of February 2015 was 0.8% of the economically active population.
Main branches of the Belarusian economy
Agro-industrial complex
Belarus remains one of the leading producers of agricultural products in CIS. The basis of the agro-industrial complex are crop growing and livestock breeding, and both spheres are undergoing reconstruction, introduction of new technologies and attraction of investment money. The basic crops are cereals, legumes, potatoes, flax, as well as fodder crops; the main vegetable crops are carrots, beets, cabbage. Livestock breeding is focused on the production of meat and dairy products. Belarus delivers agricultural products to 35 countries of the world, 70% of which is exported to Russia, about 13% — to other CIS countries, 14% — to non-CIS countries.
It is worth mentioning that organic agriculture has developed in Belarus. There are manufacturers working according to organic methods, and three farms have already received European certificates, which open opportunities for these enterprises to export products to the EU countries.
Banking and finance
The function of management, planning and forecasting in the financial sphere is performed by the Ministry of Finance, the Ministry of Economy and the National Bank of the Republic of Belarus.
The banking system of the republic has two levels. It consists of the National Bank of the Republic of Belarus and other banks, among which are banks with foreign capital and subsidiaries of foreign banks registered on the territory of Belarus.
Woodworking industry
The share of the woodworking industry in Belarus amounts to about 2% in the structure of the industrial production and includes a number of segments: production of sawmill materials, plywood, furniture, fabricated houses and wood construction details, production of matches. Enterprises of the woodworking industry are united by the “Bellesbumprom” concern which is a monopolist in timber harvesting and production of some products from it. “Bellesbumprom” includes 60 enterprises, which account for about 70% of the processing of wood and approximately 45% of furniture production in the Republic of Belarus.
The largest woodworking enterprises of the Republic of Belarus are “Gomeldrev”, “Mostodrev”, “Ivatsevichidrev”, “Vitebskdrev”, “Pinskdrev”, “FanDok” and others.
IT-industry
In the past several years Belarus has earned the reputation of the leading “IT country” in the Eastern European region. According to the Global Services 100 rating, the Republic of Belarus placed 13th among the 20 leading countries in the sphere of IT outsourcing and high-tech services. Moreover, Belarus ranks 48th in the UN IT-ranking.
The key “point of reference” from which the development of the IT sphere in Belarus began is considered to be September 2005 marking the creation of the “Belarusian Silicon Valley” – the High-Tech Park. In September 2012 HTP announced that it earned its first 1 billion US dollars. According to the International Finance Corporation, by 2020 the revenue of the IT-sphere of Belarus may reach 3-4 billion US dollars, or 4.5% of the total GDP of 2012. About 6 thousand workplaces have been created during the existence of the Park with the participation of foreign investors.
Information and communication technologies are the priority investments attracting areas. The number of companies in Belarus producing intelligent products, which are in demand around the world, is growing rapidly. Among them are Wargaming.net, the producer of the popular MMO-shooter World of Tanks, IBA Group, EPAM Systems, etc.
Light industry
According to various estimates, the light industry in Belarus accounts for about 28-30% of the total production of non-food goods. The largest enterprises of the industry are part of the “Bellegprom” concern and produce about 80% of the total industry volume. In general, there are about 500 light industry enterprises in the republic, producing over 5,000 product names.
Mechanical engineering
Mechanical engineering remains the most important sector with the active development of the agricultural and transport aspects. The republic produces over 59,000 tractors, 2,000 combine harvesters, 22,000 trucks, 2,000 buses per year. Over 60% of Belarusian mechanical engineering products are sold abroad.
The Belarusian enterprises in mechanical engineering are widely known abroad thanks to such national brands as dump trucks “BelAZ”, tractors “Belarus”, trucks “MAZ”. Special equipment “Amkodor” and agricultural equipment “Gomselmash” also found their sales markets, constantly expanding the geography of export.
Metallurgical complex
The metallurgical industry of Belarus is represented by enterprises of ferrous metallurgy, organizations on preparation and secondary processing of metal scrap, as well as enterprises working in the sphere of powder metallurgy and casting of non-ferrous metals. The metallurgical complex of Belarus includes 8 enterprises which produce steel electric round and shaped tubes, steel cast blanks, rolled steel, various kinds of wires, metal cords, bolts, screws, nuts, nails, molding materials, heating equipment.
Petrochemical complex
The petrochemical industry of Belarus belongs to the category of strategic industries for the country. It includes:
the oil-producing segment with a specialization in oil production and its primary treatment;
the oil-refining segment — the basis of fuel industry;
the chemical industry.
The enterprises of the petrochemical industry are united by the concern “Belneftekhim”, it accounts for over 30% of the industrial production of the country. The concern contains over 60 organizations, including PA “Naftan” in Novapolack, refinery in Mazyr, CJSC “Belorusneft”, as well as the enterprises of the fertilizer industry — OJSC “Belaruskali”, OJSC “Grodno Azot”, OJSC “Gomel Chemical Plant”. The oil refineries of Belarus produce motor and diesel fuel, fuel oil, lubricating oils, road oil, raw materials for the petrochemical industry. The main export destinations of the petrochemical industry are CIS countries.
Energy sector
The development of renewable energy sources or RES remains one of the priorities recognized by law in Belarus. In 2012, 25% of production of electrical and heat energy shall be obtained through the use of local fuel types and alternative energy sources. All types of renewable energy technologies function in the republic today. It is safe to say that the greatest prospect in the republic is represented by hydro and wind power.
Building materials
The building materials industry in Belarus is represented by about 1,500 enterprises of different form of ownership, that specialize in the production of cement, wall, coating and finish materials, precast concrete and concrete structures, roofing materials, etc. In total, the country produces over 130 kinds of building materials and products. The enterprises of Belarus export about 50 types of building materials, products and constructions. Moreover, 80% of export volume accounts for ceramic tiles, polished glass, roll roofing materials, building constructions, ceramic and silicate bricks, cement, break stone.
“Green restructuring” of the Belarusian economic model
Systematic work is conducted to shift the economy to “green” principles in Belarus. Belarus pays considerable attention to the problem of climate change, considering it a serious global challenge on the way to sustainable development. Belarus supports the large-scale international cooperation on climate change, supports the need for a comprehensive new climate agreement, is making efforts to develop an effective, long-term equitable global climate policy that can meet today’s environmental challenges and threats.
Aware of the growing role of renewable energy sources for the implementation of the sustainable development concept, Belarus supports the positive trend to strengthen international efforts to develop a global strategy for the use of renewable energy. Belarus has been a member of the International Renewable Energy Agency (IRENA) since the creation of the agency in 2009. Our country has high hopes for this specialized international organization, which, as expected, in the future will be the global platform for the exchange of best practices in the promotion of new and renewable energy sources and increase energy efficiency.
2. Answer the following questions:
1. How do you understand the concept of socially oriented market model?
2.What are the main branches of Belarusian economy? Characterize them briefly.
3. What are the brand new trends in the development of Belarusian economy? Comment on them.
4. How do you understand the concept of sustainable development? What should a country do to ensure its sustainable development?
5. Can you provide your own suggestions how to make the economy of our country more efficient?
3. Mark the following statements as true or false. Correct the false statements:
1. Economy in the Republic of Belarus is formed on the basis of a command economic model.
2. The Belarussian agro-industrial complex is in decline.
3. There is a two-level banking system in the Republic of Belarus.
4. In the past several years Belarus has earned the reputation of the leading “IT country” in the Eastern European region.
5. Woodworking and light industries are the main pillars of Belarussian economy.
6. Belarus pays considerable attention to the problem of climate change as one of the major obstacles on the way to sustainable development.