Belarus
Background
After seven decades as a constituent republic of the USSR, Belarus attained its independence in 1991. It has retained closer political and economic ties to Russia than any of the other former Soviet republics. Belarus and Russia signed a treaty on a two-state union on 8 December 1999 envisioning greater political and economic integration. Although Belarus agreed to a framework to carry out the accord, serious implementation has yet to take place. Since his election in July 1994 as the country's first president, Alexandr LUKASHENKO has steadily consolidated his power through authoritarian means. Government restrictions on freedom of speech and the press, peaceful assembly, and religion remain in place.
Geography
Area: 207,600 sq. km. (80,100 sq. mi.); slightly smaller than Kansas.
Cities: Capital--Minsk.
People
Nationality: Noun--Belarusian(s). Adjective--Belarusian.
Population (July 2008 est.): 9,685,768 (Urban 73%; rural 27%).
Population decline (2008 est.): -0.393%.
Ethnic groups (1999 census): Belarusian (81.2%), Russian (11.4%), Polish (3.9%), Ukrainian (2.4%), Jewish (0.3%), other (0.8%).
Religions (2004 est.): Eastern Orthodox 80%, Catholic 14%, Protestant 2%, other (including Autocephalous Orthodox, Jewish, Muslim, and Krishna) 4%.
Languages: Belarusian and Russian (official).
Education: Literacy--99.6%.
Health: Infant mortality rate (2008 est.)--6.53/1,000. Life expectancy (2008 est.)--70.34 years (men 64.63 years, women 76.4 years).
Work force (4.3 million as of December 31, 2005): Industry—34.7%; agriculture and forestry--14%; construction--7.9%; transportation, communications--7.6%; trade, catering--12.2%; education--10.7%; other--24.3%.
Economy
GDP (purchasing power parity):$116.7 billion (2008 est.)
GDP (official exchange rate):$57.68 billion (2008 est.)
GDP - real growth rate:8.1% (2008 est.)
GDP - per capita (PPP):$12,000 (2008 est.)
Natural resources: Forest land, peat deposits, potash, small amounts of oil and natural gas.
Agriculture: Products--grain, potatoes, vegetables, flax, beef, milk.
Industry: Types--machinery and transport equipment, chemical products, fabrics, and consumer goods.
Trade (2007): Exports--$24.47 billion (refined petroleum, potash fertilizers, machinery and transport equipment, chemicals, foodstuffs, metals, and textiles). Major markets--Russia, Germany, Netherlands, Poland, Great Britain, Ukraine, and Latvia. Imports--$28.32 billion (mineral products, machinery and equipment, metals, crude oil and natural gas, chemicals, foodstuffs). Major suppliers--Russia, Germany, Ukraine, Poland, Italy, Lithuania.
Exchange rate (October 2008): 2,113.5 BYR (Belarusian rubles) = U.S. $1.
Belarus has seen little structural reform since 1995, when President LUKASHENKO launched the country on the path of "market socialism." In keeping with this policy, LUKASHENKO reimposed administrative controls over prices and currency exchange rates and expanded the state's right to intervene in the management of private enterprises. Since 2005, the government has re-nationalized a number of private companies. In addition, businesses have been subject to pressure by central and local governments, e.g., arbitrary changes in regulations, numerous rigorous inspections, retroactive application of new business regulations, and arrests of "disruptive" businessmen and factory owners. A wide range of redistributive policies has helped those at the bottom of the ladder; the Gini coefficient is among the lowest in the world. Because of these restrictive economic policies, Belarus has had trouble attracting foreign investment. Nevertheless, government statistics indicate GDP growth has been strong in recent years, reaching more than 8% in 2008, despite the roadblocks of a tough, centrally directed economy with a high rate of inflation. Belarus receives discounted oil and natural gas from Russia and much of Belarus' growth can be attributed to the re-export of Russian oil at market prices. Trade with Russia - by far its largest single trade partner - decreased in 2007-08, largely as a result of a change in the way the Value Added Tax (VAT) on trade was collected. Russia has introduced an export duty on oil shipped to Belarus, which will increase gradually through 2009, and a requirement that Belarusian duties on re-exported Russian oil be shared with Russia - 80% was slated to go to Russia in 2008, and 85% in 2009. Russia also increased Belarusian natural gas prices from $47 per thousand cubic meters (tcm) to $100 per tcm in 2007, and increased to $128 per tcm in 2008, and plans to increase prices gradually to world levels by 2011. Russia's recent policy of bringing energy prices for Belarus to world market levels may result in a slowdown in economic growth in Belarus over the next few years. Some policy measures, including improving energy efficiency and diversifying exports, have been introduced, but external borrowing has been the main mechanism used to manage the growing pressures on the economy. Belarus felt the effects of the global financial crisis in late 2008 and reached agreement with Russia in November for a $2 billion stabilization loan and with the IMF for a $2.5 billion stand-by agreement in January 2009. In line with IMF conditionality, Belarus devalued the ruble approximately 20% in January and has tightened some fiscal and monetary policies. Belarus's economic growth is likely to slow in 2009 as it faces decreasing demand for its exports, and will find it difficult to increase external borrowing if the credit markets continue to tighten.
|
Copyright © 2012 East Europe Franchise Forum. All Rights Reserved.
|
|
NewsThe worldwide chain of McDonald's fast food restaurants plans to invest around US $1 bn into developing its franchises in Europe next year, the Reuters newswire reported. At the same time, they will pay greater attention to developing countries. "The potential for growth in Central and Eastern Europe is huge. We have only opened 350 restaurants in Ukraine, Poland and Romania, which have a combined population of more than 100 million and flourishing economies", says Executive Director Ralf Alvarez. There are 63 McDonald's restaurants in Ukraine in 19 cities. The total amount of investments since they began operating in Ukraine (since 1997) exceeded US $100 mn. McDonald's Ukraine has around 5,000 employees across the country. Reuters Sep 2008
|
