Belarus’ Economy

Belaruss deliverance has done fairly salutary from the situation it started in. The sparing has some strengths, but it is also non without its weaknesses. Also the Republic has not done yet enough to restructure its economy after the stifle up of the USSR. Belarus has a fairly well balanced economy with an cultivation capable of feeding its population and a well highly- softened industrial base. Belarusian manufacture is capable of producing 1. 1 million tons of mark per year, and it manufactures machine tools, rustic machinery, motor vehicles.It also has a well developed chemical manufacturing plants, and there is also a branch of industry for consumer goods such(prenominal) as radio, television sets and bicycles. Furthermore its industrial construction complex ensures a considerable scope of construction. The Republic also has a diversified agricultural crop ranging from potatoes and grain to flax and livestock. The agricultural sector accounts for 20% of the GDP objet da rt the industrial around 43%. Besides helping to develop the industry, Russia helped to develop the infrastructure of Belarus making most of the country accessible.Belarus has a reasonably well developed industry and a long history of agricultural development. Problems for the economy of Belarus began to arise after the collapse of the Soviet Union. The weakness with Belarusian industry is two-fold. It has to import much of its naked materials from other nations and it imports most of its energy. As a result industry came under severe economic pressure currently after independence. The problem with its agriculture is that it that about two thirds of the peasants are tacit organized into collective farms and the remainder in state farms.A hardly a(prenominal) backstage farms were established but the treatment they received from the state demoralised other from trying. Also Belarus has a 14% trade deficit, which increase the pic of the economy. Another drag on the economy is th e continuing cost associated with the 1986 Chernobyl thermonuclear disaster, estimated in 1995 at a quarter of the case economy. The southern expound of Belarus was severely hit by the nuclear fallout and many of the estimated 2 million victims live in Belarus.The Belarusian economy has room for improvement, nonetheless if attribute in the right circumstances it could thrive. After the dissolution of the USSR the national economy of Belarus was being restructured to introduce science intensive and low political science agency consuming industries. However, Belarus has seen little reform since 1995 when president Lukaschenko launched the country on a path of market socialism. Privatization of enterprises controlled by the central government virtually ceased in 1996. Only about 10% of all enterprises under central government control had been privatized.In addition, Lukaschenko has re-imposed administrative control over prices and the national currencys transposition rate, and expanded the states right to intervene arbitrarily in the management of private enterprise. Lack of structural reform, and a climate hostile to business, have hold extraneous investment in Belarus in 1995-97. Belaruss economy consisted in general of secondary industry, dependent on Russia and other Soviet republics for both raw materials and markets. The second problem is that it inherited a weak political leading at independence that never managed to even begin economic reform.To rush the conditions favorable for investments Belarus is taking steps for creating an adequate base of legal standards for foreign investment security, liberalization of taxation order and customs regulations, granting cost benefits to investors and providing versatile information and business services. The economy of Belarus has great potential. Its strengths can be strengthened and its weaknesses can be improved. Having a strong trading partner would put Belarus in a position to over come the crisi s in its economy.