Analytics, Belarus, Direct Speech, EU – Baltic States
International Internet Magazine. Baltic States news & analytics
Thursday, 18.04.2024, 16:26
Belarus – EU: reliable neighbourhood turning stable partnership
The country boasts a well-performing economy. Its voice
sounds loud and clear in international fora. We list a growing number of
countries worldwide as our partners and keep reaching out to new promising
markets.
Modern Belarus draws from centuries-old state and cultural traditions
of Eastern Europe ascending to Slavic principalities of early Middle Ages and
the Grand Duchy of Lithuania with its sophisticated society, rich philosophic
and legal heritage.
In the Soviet times, Belarus rightfully prided itself on its
highly advanced human potential, research and manufacturing.
Belarus as a state turned a new page of its history in the
early 1990s. Peace and social harmony became prime objectives of a new sovereign
nation.
In Belarus, just like elsewhere across the ex-Soviet Union,
the first years of independence were marked by a painful struggle with social
and economic crisis. But the country’s economy was one of the few in the region
that emerged from this struggle stronger than ever before. Since 1994, its GDP,
industrial output and export have multiplied.
By 2000, the economy reached its pre-crisis level thus
substantially boosting prosperity of its countrymen. Average wages in dollar
terms grew by 5.5 times, while real salaries – by 7.3 times. The UN rates Belarus
among countries with high Human Development Index. Its GDP per capita is one of
the highest in the region. The export-to-GDP ratio makes Belarus the most open
post-Soviet economy, as confirmed by the World Bank’s “Trading Across Borders”
scoreboard.
This small but open economy finds itself increasingly
exposed to numerous external shocks in recent years, including the Ukraine conflict
and the drop in energy prices. Their knock-on effect shows both directly,
through shrinking markets and downward price pressure on our key exports, and
indirectly, through mounting investment risks and borrowing costs.
These challenges demanded urgent macroeconomic response by
the Government. External shocks were effectively contained through a range of
conservative fiscal measures, tighter monetary and lending policies, flexible
exchange rates and Belarus regained its firm standing both domestically and
abroad.
Slower inflation and recovering currency markets bolstered
public trust for the rouble. Balanced external trade and budget surplus contributes
to the country’s credibility with foreign lenders and investors. Belarus
asserts itself as a reliable and diligent partner that meets its obligations
timely and in full.
We pursue a multidimensional foreign policy with its
European focus a longtime priority to us. The EU is Belarus’ second biggest
market and an important source of investments, cutting-edge technologies, know-how,
modern marketing and managerial techniques. The EU accounted for 43% of the
overall foreign investment inflow in 2011-2015.
Belarus, for its part, has a lot to offer. First and
foremost, a wide array of quality products that goes far beyond the traditional
segments of oil refinery, woodworking and potassium fertilizers. The country’s
hallmark export at present is machine-building.
Thanks to its sophisticated industry Belarus enjoyed for
decades the reputation of USSR’s main “assembly plant”. Nowadays one in almost every
ten tractors in the world is made in Belarus. The country ranks the 5th as an
exporter of dairy products globally, including the 4th biggest exporter of
cheese, and number three supplier of whey and butter.
Second, the nation of just 9.5 mln but featuring 55 high
schools and universities with up to 500 thousand graduates per year can be considered
as fairly rich in intellectual asset and home-grown talent.
A fast-growing IT sector increasingly spearheads research
and innovation. A Hi-Tech Park operational in Minsk since 2005 is home to 165
companies that are frequently contracted by world’s giants like Western Union, Google, Microsoft, Airbus,
etc. In 2016 alone the Park’s export to its clients in 67 countries surpassed
USD 820 mln, Western Europe accounting for almost 50 % of the volume.
Third, Belarus offers a conducive business environment. To launch
a company here is easier than some may think, as proven by successful examples
of reputable European companies like Stadler
Rail Group and Kronospan Holding East
Ltd. The country ranks the 37th among 189 countries on the ease of doing
business, reports the World Bank’s flagship publication “Doing Business 2017”.
Fourth, Belarus contributes significantly to European
security. With 1250 kilometres of shared border Belarus and the EU have a long
history of successful synergies to suppress smuggling, drug trafficking and
illegal migration.
Belarus is well aware of its interests in Europe and
actively pursues them. Responsibility and pragmatism are at the core of our
policy vis-a-vis the neighbouring EU with whom we have a lot in common.
Now that the EU has lifted its political barriers, our
relations are gaining in terms of substance and mutual trust. Since 2016 a Belarus
– EU Co-ordination Group has been acting as a platform for a structured
political dialogue. To make it more systemic in the years to come, bilateral
“Partnership Priorities” are negotiated. Sectoral dialogues are ongoing in
areas of mutual interest. Project activity under EU assistance schemes has
intensified and new opportunities emerge for international investment and
borrowing.
Belarus seeks to put in place a new contractual framework
with the EU, join the WTO and progressively integrate into the European
political and economic landscape with due account of our commitments under the
Eurasian Economic Union.
Neighbourhood is but a stepping-stone to a deeper kind of relationship.
If, in the words of EEAS head Federica Mogherini, “my neighbours’ weaknesses
are our own weaknesses”, then the opposite is also true: my neighbours’
strength makes me stronger. To Belarus and the EU this implies a natural and
urgent imperative of upgrading their relations beyond a simple neighbourhood to
a substantial, equal and sustainable partnership.