Pro­gram-Based Ap­proach

Pos­i­tive changes in the de­vel­op­ment of the in­dus­trial com­plex took shape in Be­larus last year

Economy of Belarus - - INDUSTRIAL SECTOR -

Yuri CHE­B­O­TAR, the Head of the In­dus­try, Trans­port and Com­mu­ni­ca­tions

Depart­ment at the Econ­omy Min­istry of the

Repub­lic of Be­larus

In 2012 a pro­gram doc­u­ment was adopted in Be­larus defin­ing the main tar­gets of the in­dus­trial pol­icy for the pe­riod till 2020. The pro­gram is built around struc­tural changes of the pro­duc­tion sec­tor. The state man­age­ment of the pro­duc­tion sec­tor has to im­prove, qual­ity-based tar­gets to eval­u­ate the de­vel­op­ment of the pro­duc­tion sec­tor are sup­posed to be in­tro­duced. The pro­gram also en­vis­ages man­u­fac­tur­ing co­op­er­a­tion with other coun­tries, the choice of growth points and promis­ing mar­ket niches. The pro­gram out­lines con­cep­tual guide­lines for ac­com­plish­ing these tasks. In prac­tice the tasks will be ful­filled by adopt­ing an­nual fore­casts of the so­cial and eco­nomic de­vel­op­ment of the pro­duc­tion sec­tor and its branches. An­a­lyz­ing the progress that has been made since the pro­gram was adopted, we see sev­eral suc­cess­ful ac­com­plish­ments.

New Ap­proaches and Forms of Work

Since the pro­gram was launched, the ap­proaches to pro­vid­ing state sup­port to the pro­duc­tion sec­tor have changed. In or­der to stim­u­late the im­ple­men­ta­tion of in­nova- tive and highly-ef­fec­tive projects, a num­ber of le­gal acts have been passed to guar­an­tee state sup­port for the projects. The amount of sup­port will be com­men­su­rate with the im­por­tance of a project. These le­gal acts are Be­larus Pres­i­dent’s De­cree No.357 of 7 Au­gust 2012, which reg­u­lates the re­plen­ish­ment and use of in­no­va­tion funds, De­cree No.231 of 6 June 2011, which stip­u­lates mea­sures to en­cour­age the de­vel­op­ment of highly-ef­fec­tive man­u­fac­tur­ing, and De­cree No.301 of 8 July 2013, which stip­u­lates mea­sures to en­cour­age in­vest­ment projects with a high added value. For the sake of sup­port­ing the mod­ern­iza­tion of ex­ist­ing en­ter­prises Be­larus Pres­i­dent’s De­cree No.182 of 28 March 2006 has been amended. The de­cree pro­vides for mea­sures to op­ti­mize the pro­vi­sion of state sup­port to le­gal per­sons and self-em­ployed busi­ness­men.

Within the frame­work of the Sin­gle Eco­nomic Space and the Com­mon­wealth of In­de­pen­dent States work is in progress to shape a uni­fied in­dus­trial pol­icy for the sake of ex­pand­ing the use of man­u­fac­tur­ing co­op­er­a­tion, in­creas­ing lo­cal­iza­tion of as­sem­bly projects, and ex­pand­ing co­op­er­a­tion with for­eign transna­tional cor­po­ra­tions.

The draft treaty on es­tab­lish­ing the Eurasian Eco­nomic Union has a sec­tion ded­i­cated to the pro­duc­tion sec­tor. It was pre­pared by ex­perts of the Sin­gle Eco­nomic Space mem­ber states. The sec­tion out­lines uni­ver­sal ap­proaches to im­ple­ment­ing na­tional in­dus­trial poli­cies in the mem­ber states as well as com­mon rules for

pro­vid­ing in­dus­trial sub­si­dies. Be­larus’ ap­proach to in­te­gra­tion terms re­lies on the need to en­able com­pet­i­tive­ness and suc­cess­ful oper­a­tion of Be­laru­sian en­ter­prises in the medium term and the long term. Push­ing jointly man­u­fac­tured prod­ucts to third coun­tries is the idea.

Work is in progress to cre­ate an in­dus­trial pol­icy min­istry. Mak­ing the tran­si­tion to a branch-wise pol­icy is the ul­ti­mate goal. In­stead of man­ag­ing in­di­vid­ual en­ter­prises min­istries will en­able con­di­tions for the de­vel­op­ment of en­tire in­dus­tries.

The im­prove­ment of the or­ga­ni­za­tional and le­gal forms of in­dus­trial en­ter­prises continues via re­or­ga­ni­za­tion and es­tab­lish­ment of hold­ing com­pa­nies.

In 2013 the share of hold­ing com­pa­nies in the over­all in­dus­trial out- put rose by 4 per­cent­age points from 2012 to reach 15.8%.

The In­dus­try Min­istry alone has cre­ated 12 hold­ing com­pa­nies. The com­pa­nies are Hor­i­zont, BelOMO, Au­to­com­po­nents, Belav­toMAZ, Amkodor, Be­laru­sian Met­al­lur­gi­cal Com­pany, Bel­stankoin­stru­ment, Be­lAZ Hold­ing Com­pany, Lid­sel­mash, Bo­bruisk­a­gro­mash, Minsk Mo­tor Plant, and In­te­gral.

Work has be­gun to hand over non-core as­sets to mu­nic­i­pal au­thor­i­ties. Those are halls of res­i­dence, sana­to­ri­ums, and health camps. In the­ory these as­sets are sup­posed to en­hance the ba­sic ben­e­fits pack­age. In prac­tice, how­ever, they suf­fer from in­ef­fec­tive man­age­ment.

The prac­tice of out­sourc­ing re­pair, guard, clean­ing, and other kinds of sec­ondary ser­vices is get­ting more and more pop­u­lar. The sub­con­trac­tors are some­times for­mer struc­tural di­vi­sions of the cus­tomer com­pany, which have been con­verted into in­de­pen­dent daugh­ter en­ter­prises. Af­ter the con­ver­sion they are free to of­fer their ser­vices not only to the par­ent com­pany but to the en­tire mar­ket.

Out­sourc­ing has proved to be an ef­fi­cient so­lu­tion for the Be­laru­sian state-run petro­chem­i­cal in­dus­try con­cern Bel­neftekhim. Last year Grodno Azot set up five uni­tary en­ter­prises, Svet­l­o­gorsk Khimvolo­kno set up one en­ter­prise, with an­other en­ter­prise es­tab­lished by Mogilevkhimvolo­kno. Plans have been made to set up an­other 14 en­ter­prises in 2014, in­clud­ing in Belshina, Gomel Chemical Plant, and Naf­tan.

Work is in progress to cre­ate an in­dus­trial pol­icy min­istry in Be­larus. Mak­ing the tran­si­tion to a branch-wise pol­icy is the idea. In­stead of man­ag­ing in­di­vid­ual en­ter­prises min­istries will en­able con­di­tions for the de­vel­op­ment of en­tire in­dus­tries

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