Belarus - Industrial Performance Before and During the Global Crisis : Belarus Economic Policy Notes : Note No. 2
This note attempts to analyze and tentatively answer these questions by focusing on the drivers of growth and productivity, labor markets and enterprise restructuring, as well as the state system of enterprise support, which is key to understanding...
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| Format: | Country Economic Memorandum |
| Language: | English |
| Published: |
World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20100928233414 http://hdl.handle.net/10986/2908 |
| Summary: | This note attempts to analyze and
tentatively answer these questions by focusing on the
drivers of growth and productivity, labor markets and
enterprise restructuring, as well as the state system of
enterprise support, which is key to understanding the
interplay between the state and the economy in Belarus. The
period of analysis covers 2004-08 with appropriate
references to the previous periods and comparisons with
Russia and/or other Commonwealth of Independent States (CIS)
countries. The final section explores the Belarus's
industrial performance in the period of the global crisis
(late 2008-09) and reviews the government's policies
that have been largely responsible for a relatively mild
effect of the crisis on economic dynamics in the country.
The analysis is based on the official statistics provided to
the team by the National Statistics Committee (Belstat),
National Bank, and various ministries, as well as statistics
from other national and international statistical sources.
In addition, the analysis benefited from the data provided
by various enterprise surveys undertaken by the Research
Institute by the Ministry of Economy (RIME) and from two
sector case studies (in machinery and dairy sub-sectors).
Belarus has weathered the crisis so far better than most of
its neighbors, in part due to the government policies to
boost domestic demand in a predominantly state-owned and
controlled economy. This was achieved at a considerable
macroeconomic cost. The country's ability to sustain
possible future shocks declined, and macroeconomic risks
increased. The crisis has further exposed risks associated
with the Government of Belarus (GOB) practice of heavy
reliance on administratively set targets for large and
medium-size enterprises, especially targets for output and
average wage growth. |
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