Business Plan for the Country
Rational use of resources and modernization of enterprises are the major preconditions for sustainable economic growth
The socio-economic development targets set for Belarus in 2012 were pretty tough. The country did its best to meet them and the efforts resulted in the $3 billion commodity trade surplus, something that had not happened in many years. However, five out of the twelve most important targets were not fulfilled. They include the GDP growth, increase in industrial production, reduction in material intensity in the manufacturing industry and GDP energy intensity, and the inflow of foreign direct investment. Almost all the regions failed to meet the gross regional product targets, while the city of Minsk performed even worse than in 2011.
The social and economic development of the country in 2012 and the tasks for 2013 were discussed at the Council of Ministers’ session led by President of the Republic of Belarus Alexander Lukashenko. The head of state warned the government right away that the discussion would focus on problems and failures, as well as new challenges.
The session lasted almost seven hours. Reports were delivered by the Prime Minister, Vice Premiers, Head of the National Bank, Chairman of the State Control Committee, governors, and company chiefs. That was a very detailed and focused discussion.
The Belarusian head of state made a policy statement as he spoke about the most pressing problems impeding the country’s economic growth. The President also outlined short-term objectives and tasks. According to Alexander Lukashenko, the country’s economic development is not proceed- ing as planned and leaves much to be desired.
However, in 2012 Belarus eventually reached financial stability and macroeconomic balance: inflation slowed down considerably, the foreign trade deficit was reversed, the domestic currency market stabilized, gold and foreign currency reserves were kept intact while the country fully met its external and domestic loan obligations. The most important economic sectors – manufacturing industry and agriculture – demonstrated good growth.
Belarus managed to consolidate positive trends in the social sphere: real income of individuals increased by 21%, pensions were revised upward four times; household deposits in Belarusian rubles and foreign currency rose 1.6 times. The average nominal monthly salary neared Br5 million ($552) in December. People on the government payroll received about $418 in equivalent.
“It is clear that in recent years we have had to deal with numerous challenges brought about by the economic crisis and the global