A high rate of economic growth in Belarus – an average of about 8% annually from 2001 to 2011 – has helped reduce poverty almost seven-fold. A favorable external environment supported the economic growth in Belarus.
Read More »
Belarus has moved very slowly to
dismantle its state enterprises and associated trading
monopolies. Nevertheless, a private sector clearly is
emerging. A recent Wor... Show More +ld Bank survey shows that so far the
private sector has developed through three basic channels:
1) start-ups; 2) 100 percent buyouts; and 3) spin-offs.
Belarus requires a comprehensive strategy to create a more
conducive environment for private sector activities. This
Note explains the approach the Bank used for designing such
a strategy in Belarus, and it identifies three critical
constraints to enterprise development: rudimentary business
strategies, ill-defined property rights, and limited
availability of investment credit in the high-inflation
environment. The private sector survey showed that it is not
enough to set up legal infrastructure and institutions.
Faster privatization and the tightening of subsidized
credits to enterprises need to be implemented together with
regulatory reforms and the business centers. Show Less -