BELARUS NEWS AND ANALYSIS

DATE:

25/04/2006

Belarus doubles its GDP

BY ELSA CLARO -Granma International staff writer-

Fleeting and hard won, this exclusive with Sergei Sergueievich Sidorskiy, prime minister of Belarus, was a fruitful one. We were able to confirm at first hand and with authority information that not even the most arrogant and polarized press could conceal in its campaign against the Belarusian authorities before and after the recently concluded electoral process that led once again to the win by Alexander Lukashenko and his working team. The premier first responded to Granma International's question:

With all the ferocious pressure from the United States and the European Union, how was Lukashenko's reelection achieved?

After the disintegration of the Soviet Union, each one of the states in that space chose their own form of development. The Republic of Belarus, which has no oil or gas, experienced a notable drop in its economy, something similar to the situation in Cuba at that time.

"We were obliged to take on a new economic policy to stand up to the loss of the production volumes that we had within the Soviet framework. When the disintegration happened, almost all the enterprises dedicated to manufacturing machines with complex technology - for example, the car industry - agriculture, transport, descended to almost zero. Even companies well known internationally, such as that of potassic fertilizer were literally at the point of bankruptcy in the 90s."

The drop was 11%-plus. The GDP fell to 15% and inflation went up to 25%. Moreover, it at should be recalled that in January 1994 the Soviet Union dismissed those in power because corruption had escalated, while there was a severe drop in the living conditions of the population. Power was assumed by the conservative Mechislav Hirb, who did not achieve the urgently needed balances. The presidential elections in the summer of 1994 were convincingly won by Alexander Lukashenko who, after various years of work, reconfirmed his popular acceptance in the 2000 elections, with which he acquired a broad parliamentary support. He was reelected in the presidential elections of 2001.

That political sequence illustrates what Sidorskiy told us in Havana, a few minutes after signing various trade protocols with Cuba. He continued explaining:

"In early 1994 with his electoral victory, President Lukashenko proposed a very precise economic development action program, clearly accepted by the majority of citizens without whose participation no goal would be possible.

"We selected the route of an economy oriented toward social development. The state took it upon itself to help every enterprise and, step by step, production levels began to be restored. The plan was successful because by 2000 they were supplying the open market with their products. Those enterprises already have a place in the national budget because in that year many of them attained the production levels they had before the disintegration of the Soviet Union.

"That could be considered as the initial jump. Since then and up to 2005 that program originally proposed 12 years ago by President Lukashenko has had great success, as we have doubled the gross domestic product with an annual increase of no less than 10%, industrial growth has stabilized and, most importantly, we can guarantee our own self-sufficiency in food."

Other indicators?

When the reforms were initiated, the average wage was 70 rubels and now it is 250. As a regulation, when wages are increased, pensions grow. We have preserved free medical attention and education and social programs related to different sectors of the economy - particularly agriculture - support for youth, and scientific development are being progressively reinforced.

In other words, virtually every sector of the economy in Belarus is running at the expense of the execution of those formulated development projects that are continuing to advance as each proposition is won.

The country is maintaining its stability. We can virtually affirm that there is no organized crime on our streets, thus our children and citizens feel safe. These are the bases of the 83% obtained in democratic elections that gave the Belarusian people their state and their president."

Immediate plans?

Over the next five years our president proposes to emphasize works aimed at fortifying the construction of a state directed to the wellbeing of our citizens. The necessary regulations are in place and the people are aware of them, and support the internal political policy previously carried out and the improvements proposed by Luckashenko.

In 1996 an economic union was created between Minsk and Moscow that includes political aspects and is open to other states. Currently, there is an attempt to fortify that idea which has the full and signed support of Belarus and Kazakhstan. The group should be joined by Ukraine, albeit with some doubts over certain sections of the integrationist agreement. The rest have decided to initiate this activity.

Based on that antecedent we would like to know how that experience is going?

We have been working on the structure of a federal state with Russia for 10 years. The heads of state of the two nations have signed the required commitments and each one of the governments has its own detailed program in relation to the development of that alliance directed at economic development.

There is a very clear idea on the joint annual budget and cooperation between enterprises in Russia and Belarus, linked in terms of the most important sectors of machine building. Up to 80% of exports made are cooperative ones; hence our successes depend on those of the Russian Federation and vice versa. The overall project benefits from unrestricted customs agreements. To date, everything is going forward as planned.

On your visit to Cuba?

We have once again confirmed that for us Cuba is a significant and solid ally, as has been seen in various international forums where we have likewise defended sovereign independence as a right.

Sidorskiy said that he was highly satisfied and impressed at the warm reception that Fidel gave him in the six hours during which he and his delegation discussed various issues, including mutually beneficial bilateral trade, with the Cuban president.

Source:

http://www.granma.cu/ingles/2006/abril/mar25/18belint-i.html

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