Social and Economic Development

SOCIAL AND ECONOMIC SITUATION IN BELARUS

A COMPARATIVE SURVEY

Belarus was the first CIS country to regain the Soviet-time gross national income (GNI) per capita level (2003) and the first CIS country to double it (2006).

As the financial crunch persists in the world economy generating detrimental economic conditions for Belarus development, pressures continue to build up on the dynamics and major indicators of Belarus’ socioeconomic performance.

This comparative study indicates, though, that Belarus stands up rather well to the crisis effects which even places the country well in the lead in terms of major development indicators.

The European Commission’s study The EU’s neighbouring economies: emerging from the global crisis (Occasional Papers, issue 59, April 2010) notes that:

·    In 2009 Belarus was one of the two countries (alongside with Azerbaijan) in the Eastern Partnership (EaP) that had a GDP growth (overall fall in the region is -8.0 per cent).

·    Belarus is the only EaP partner that finished the year without budget deficit.

·    In terms of GDP per capita Belarus ranks second among EaP partners.

·    Belarus has one of the highest (after Moldova) economic openness rates in the region (.120 per cent of GDP).

·    Belarus together with Ukraine are the two EaP partner countries with an important export sector and a balanced trade performance.

·    Belarus has one of the lowest levels of public debt (after Azerbaijan).

·    Out of six eastern partners, only Belarus and Azerbaijan have full employment.

·    Belarus has one the lowest non-performing loans rates in the region (1.7 % by the end of 2009).

In the opinion of the European Commission, Belarus was the country in the region that used the most the crisis as an opportunity to reinvigorate economic reforms.

As far as the business climate is concerned, according to the IFC-World Bank Doing Business 2010 annual report, Belarus took the 4th position globally among the countries most actively implementing reforms aimed to improve business and investment climate including simplification of government regulations in business doing. Belarus improved significantly its relative position in the Doing Business index jumping by 62 positions in just two years, reaching the 58^th spot.

Belarus reformed in six out of 10 areas studied by the report authors. It became much easier to start a new business in Belarus. It sprang to the 7^th (from 97^th) position in the world.

According to the report, doing business is less problematic in Belarus than in a number of EU countries (namely Spain, Luxembourg, Poland, Czech Republic, Italy, Greece).

Belarus improved its position on the ‘Corruption perception index’.

According to the Heritage Foundation Economic Freedom 2010 report Belarus features the following positive indicators:

·    Business Freedom – 72.1 out of 100;

·    Trade Freedom – 80.34 out of 100;

·    Fiscal Freedom – 85.2 out of 100;

·    Labour Freedom – 84.8 out of 100.

The economic liberalization reforms are being accompanied by a progress in the political field. According to the Freedom House Index for post-communist countries in transit in 2005 – 2008 Belarus was the only country in the EaP region to improve its score in the areas of democracy, electoral process, civil society, independent media, national democratic governance, and corruption.

The UN Human Development Report 2009 indicates that:

·    Belarus ranks 68^th in the Human Development Index (HDI), belonging to the high development group of countries, well ahead of all CIS countries;

·    By the gender-related development index Belarus ranks 52 among 182 states and is No. 1 in the CIS;

·    In poverty reduction, Belarus ranks 16 among 135 countries (outside OECD) and is second in the CIS;

·    In HDI education, Belarus ranks well ahead of many countries classified as very high HDI countries and is second in the CIS.

The International Telecommunication Union in the Measuring the Information Society 2010 report places Belarus at No. 55 out of 159 countries by the ICT Development Index. By this indicator, Belarus is ahead of all CIS countries except Russia and leaves behind a string of big countries.

This report also lists Belarus 27^th in the overall chart by the ICT Price Basket bearing on access to telephone connection and broadband Internet for the population putting Belarus ahead of all CIS countries, a number of EU member states (Hungary, Greece, Poland, France, the Czech Republic) and big nations like Brazil, India, China and Japan.

By the fixed telephone line, Belarus is in the top ten of the world by price affordability.

According to the Inter-Parliamentary Union (IPU), in 2009 Belarus was the leader in terms of women’s share in the parliament among the CIS countries, standing at No. 19 in the 188-countries list.

By the Education for All Development Index, Belarus is listed 41^st in the overall chart above some EU countries.

The UNESCO Institute for Statistics – released Global Educational Digest, estimating the attainment of the Millennium Development Goals in education, indicates that Belarus is one of 19 countries that are a positive gender equality exception at the highest level of tertiary education, ISCED 6. In those countries women have equal or higher graduation ratios than men.

Also, one of major education development indicators, which is a percentage of the adult population having attained tertiary education, levels Belarus (38%) with France and Spain.

Economic and Social Development of Belarus: preliminary results of 2008 and estimates for 2009 by national and international statistics

Economic Development Review: Belarus 2008