Unit IX Main Tendencies of Economy Development

After gaining the sovereignty, the Republic of Belarus remained one of the most economically developed republics of the FSU. The 1992 -1995 economic recession was followed by product ion growth and political stability conditioned by the properly formulated develop-end strategy and refusal from inconsistent reforms. Traditionally high openness of the Belarusian economy complemented by initiation of reforms has predefined adoption of the multivector foreign economic policy. Belarus, while seeking to into rate within the CIS, capitalizes most effectively on the international division of labor and makes even- effort to efficiently collaborate with the West.

The active national economic policy allowed for stabilization and some growth in specific sectors of the economy in 1995. 1996 be came a turnaround year. After an absolute drop, the GDP started growing: in 1996-2004 the average annual growth rate amounted to 8.6% and it is showing an upward trend.

Compared to the neighboring countries, the GDP reduced at a significantly lower rate during the transformation period. Currently, Belarus is one of the leaders among the CIS countries in terms of the GDP per capita, purchasing power parity and UN-calculated human development index

Intensifying reestablishment оf severed intersect oral links and prioritizing development of export-oriented industries significantly contributed to the economic growth. In creasing role of the leading economy industries (machine-building, metal-working, chemical and petrochemical, power engineering, consumer goods and food, forestry and wood-working) in the world European production an evidence of competitiveness of the developing production potential of Belarus.

Belarus is a large exporter f trucks, tractors. TV sets, refrigerators chemical yarn and fiber, potash fertilizers, textile and consumer goods. The policy of strengthening economic relations pursued by Belarus increases its role in the world division of labor throughout the post-Soviet regime territory The export turnover per capita exceeds the respective indicators of many CIS countries.

Currently, large-sized industrial enterprises serve as a pillar of the Belarusian economy. They employ nearly half of the able-bodied population. Having managed to keep their production capacities from dwindling these enterprises are specifically concerned to enter new world markets. The government provides a sizable support to them to stimulate their export as one of the priority spheres of the social and economic development of the country. To increase their performance the majority of the state- owned enterprises are changing their category of ownership, are being corporatized and sold to investors

Free economic zones (FEZ) are created in Belarus to attract domestic and foreign investments, increase export potential, develop novel and advanced technologies, import-substituting and increase employment.

UNIT X