Belarus
The Development Challenge
Belarus gained independence in early 1990 and had a hopeful start in developing a market-based economy and democratic processes. However, for the past nine years of President Lukashenko's rule, the country has moved away from democratization, and the economy remains mired in state-controlled economic structures. Over the course of 2003, there were unprecedented attacks on political parties, independent media, and civil society writ large. The impetus for this harassment appears to be the President's desire to push for a third presidential term. Political freedom continues to be constrained, as numerous administrative and criminal measures are employed against political leaders attempting to exercise their rights. While Belarus' neighbors head towards the European Union, the country's policies are becoming more isolationist.
 |
| Please
note: All documents are in pdf format
|
In 2002, the Committee to Protect Journalists (CPJ) declared Belarus one of the 10 worst countries in the world in which to be a journalist.
In its 2003 Index of Economic Freedom, the U.S.-based Heritage Foundation characterized the economy of Belarus as "repressed." It ranked Belarus 151 out of 161 countries. The country still bears the hallmarks of a communist system: state-owned industries, collective and state farms, investment spending influenced by central fiat rather than by markets. The industrial base is deteriorating, and many state firms have negative net worth, kept afloat by government subsidies and orchestrated Russian import demand. Firms have little scope to rationalize production because of mandated wage increases and restrictions on employment reduction. Existing legislation hinders private business. The hostile climate for private investment inhibits foreign investment.
From a social perspective, the government is increasingly failing to deliver benefits and employment opportunities. While real wage growth is slow, the country budget for 2004 forecasts significant cuts in benefits and privileges for low-income citizens.
U.S. national interests: An authoritarian Belarus not only adds to regional stability, but credible allegations of the transfer of arms and dual-use equipment to states of concern underscore the importance of achieving a more open, transparent form of governance in Belarus. Although Belarus is currently led by an authoritarian regime and has a stagnant economy, it continues to have the potential, through pockets of its civil society, to develop both democratic institutions and a market-driven economic system.
The USAID Program: The USAID Strategic Plan for FY 2003 - FY 2005 for Belarus aims to engage diverse and, as yet, disempowered elements of Belarusian society, including independent media, non-governmental organizations (NGOs) and pro-democracy groups, under the single Strategic Objective: "Increased citizen participation in democratic practices." This strategic objective is in harmony with the joint State Department/USAID Strategic Goal - "to advance the growth of democracy and good governance, including civil society, the rule of law, and respect for human rights and religious freedom."
Other Program Elements: There are two additional activities not funded under the country budget. First, the Citizens Network for Foreign affairs currently implements the West NIS (New Independent States) Agribusiness Volunteer Program in Belarus. This initiative will receive regional funding until 2007. The program objectives are to strengthen private farmer associations, to develop private agribusinesses and to stimulate the development of farmers' entrepreneurial initiatives. This program is in harmony with the Presidential "Volunteers for Prosperity" Initiative. Second, a $100,000 seven-month anti-trafficking activity is being implemented regionally by Winrock International to reduce trafficking of Belarusian women by developing their job-market skills and by providing vulnerable women with economic opportunities in selected regions. These programs currently operate unfettered by governmental interference.
Other Donors: Multilateral: The U.N. Global Fund to Fight AIDS, Tuberculosis and Malaria approved Belarus for HIV/AIDS prevention projects in 2004 and 2005. The United Nations Children's Fund signed a joint $3 million plan with the GOB for the period until 2006 to promote children's and youth's health and protect their rights.
The World Bank's 2002-2004 Country Assistance Strategy for Belarus envisioned up to $140 million in loans to the government for targeted social issues. However, as of November 2003, the strategy has not been approved. A $1 million energy-saving project will be implemented in 2004. A World Bank $260,000 program supports Belarusian NGO partnerships with Ukraine and Moldova. The United Nations Development program and Economic Commission's TACIS program jointly launched a $1.5 million two-year program to combat trafficking in women. The European Bank for Reconstruction and Development has a limited portfolio of private sector development.
Back to Top ^
|
