Events

President delivers State of the Nation Address on 20 April

The year 2010 should lay the foundation for making a breakthrough in the development of Belarus, a new stage in creating a strong and prosperous state, President of Belarus Alexander Lukashenko said in his annual State of the Nation Address on 20 April. The focal point of the address is “The dynamic breakthrough in the development of the country – a way to a new quality of life”.

“The year 2010 is literally a key milestone in shaping the strategy of Belarus’ further development. First, the year marks the completion of a number of state programs, first of all, the program of social and economic development of Belarus for 2006-2010,” the President said. In his words, despite some objective difficulties facing the national economy, the state does not abandon the commitments taken on five years ago at the Third All-Belarus People’s Assembly.

“Second, in 2010 we should completely overcome the consequences of the crisis that affected our economy and at a minimum to restore the pre-crisis economic growth rate,” the Belarusian leader underlined. “Our well-being, social and economic progress hinge on the efficiency and quality of our work in 2010,” he added.

 

Economy

Belarus begins economic revival

Belarus is starting an economic revival. The President remarked that Belarus is one of the few countries that managed to raise their GDP in the crisis year of 2009. In 2009 Belarus’ GDP edged up by 0.2% in comparison with 2008. Belarus acted fast to minimize negative consequences of the crisis, reinforce the banking system and prevent backdoor sales, stimulate exporters and manufacturers, liberalize business operation terms.

“The timeliness and correctness of our actions not only in the last few years but the overall balance of the Belarusian social and economic development model are confirmed by international experts. Inclined towards skepticism, the World Bank and the International Monetary Fund nevertheless had to admit that the recession phase in Belarus is over. The country is beginning a revival!” The country has managed to preserve the manufacturing, scientific and manpower potentials. Mass discharges have been prevented unlike in virtually all European countries and the USA. Belarus did not cut down on social expenses and did not curtail most important state programs.

However, with countries mutually dependent and Belarus’ economy open, the country could not avoid the negative influence of the crisis. In 2009 the export and industrial output declined for the first time in recent years. Meanwhile, the country managed to preserve macroeconomic stability and increase investments in fixed capital and housing construction, agricultural production and retail trade.

Among causes behind the global crisis the Belarus President mentioned the lack of responsibility in business dealings. “Nowadays the world needs an economy that will not threaten everyone’s future in order to please egoism and the love of gain of a few people. An economy with moral values in mind is needed. An economy that will not resolve problems by unscrupulous deals and corruption to the detriment of the country and the society is needed”.

Belarus will come through crisis more advanced, stronger Belarus should emerge from the crisis more advanced and ready for a tough competition in the post-crisis conditions. The President stressed that quality remains the key point in all areas of the activity. It is the quality of goods and services, management and, what is most important, the quality of the people’s life. “The issues concerning quality have always been among the country’s priorities. They have become even more urgent as we are emerging from the financial and economic crisis,” Alexander Lukashenko said. “There is no chance to return to the old positions as new consumer requirements are laid down. On a global scale the privilege will be given to that economy that reaches the highest rates in labor productivity, the quality of products and the prime cost reduction,” the Belarusian leader noted.

According to the head of state, Belarus has achieved a lot over the past years. “But it is impossible to move further by inertia, without additional efforts, without setting forth new promising and even ambitious goals,” the Belarusian leader said. Alexander Lukashenko drew attention to the fact that the economic principles are reconsidered in today’s world. Those economies that never stop moving forward and adopt the best practices become the most successful.

“In this respect we are in a desperate need of a qualitative breakthrough in the national economy,” the President remarked.

Belarus remains committed to economic liberalization

“First comes a new technological strategy. It envisages structural reforms in the economy to promote industries manufacturing high value added products; creation of high-tech production facilities to offer brand new goods and services; introduction of market incentives to galvanize innovative activity of all economic entities,” the head of state said.

These strategies are followed by a transit strategy that envisages the broadening of transport, communications and financial corridors. “This should become a major instrument to make a quality economic breakthrough and help Belarus occupy its niche in the international division of labor using its geographic advantages,” he stated.

An energy strategy envisages a more active use of renewable energy, creation of new cutting-edge energy capacities and diversification of traditional energy sources. 

The economic breakthrough is impossible without an IT development strategy aimed to make electronic services available to people and businesses.

“These strategic guidelines will help Belarus advance even further and work much more efficiently than earlier. They underpin the focus on quality in our national policy and the decision to declare the year 2010 the Year of Quality,” the President said.

The head of state emphasized the need to cultivate the general culture of quality in the country, to promote a high quality of life, labor and education.

The ultimate goal is to create a modern competitive economy, the state, and the nation in general. “We should reach the European level of life in the near future,” the President said.

Fresh ideas for Belarus’ new five-year development program

The program for Belarus’ social and economic development in the next five years should be brand new, without clichés.The government should invite scientists, the business community and maybe international experts to put the program together. It should be complete by 1 July so that the draft document would be ready for preliminary extensive discussion before the All-Belarusian People’s Congress, remarked the head of state.

The new program will be implemented by people who can do it, stressed the President. “If the present staff are unable to fulfill tasks this year, the new program will be implemented by other people, no offence,” said Alexander Lukashenko. “Those who are exhausted should get another job. Yet I am not sacking anyone. If you can, do it. If you can’t, quit. Don’t wait to get the sack,” added the head of state.

Belarus President urges drastic optimization of tax system

The tax system and accounting procedures should be dramatically simplified.

Despite its strides Belarus is far from top positions in international ratings of tax systems, the President said. For example, the World Bank placed Belarus at the bottom of the ranking. According to the WB experts, taxpaying in Belarus takes an average of 900 hours a year, while in the United Arab Emirates just 12 hours.

“Entrepreneurs are literally groaning – high tax and fine rates and complicated paperwork became a great burden for national businessmen. This adds to billions of dollars of lost investments, a failure to create thousands of jobs, millions of unsold products,” Alexander Lukashenko underlined.

He added, “I was assured that the introduction of the Special Part of the Tax Code on 1 January will optimize tax paying regulations. But it proved to be insufficient to make taxation easy and comprehensible for business.”

“This is why by the autumn the government should come up with decisions to simplify the tax system. This should be done in cooperation with practitioners and representatives of the business community”, the President said.

Belarus President against frequent legislation changes

New business operation terms will be enforced at least three months after a relevant legal act is signed.

“The relevant instructions have been given to the Prime Minister and the Chairman of the Board of the National Bank,” said the head of state.

According to Alexander Lukashenko, Belarus should have stable business operation conditions. The legislation should guarantee simple and, above all, steady rules. One cannot introduce some rules today, change them tomorrow and tweak them a bit the day after.

From now on a legal act cannot be revised more than once a year. The new approach will be applied not only to laws and decrees of the President but also legal acts of all levels, stressed the Belarus President.

“The practice of enforcing new legal acts, especially economic ones, on the day they are signed or a week after should be eradicated. How can people and companies re-arrange their work for the new terms, new taxes and customs procedures in such a short time?” wondered the head of state.

No red tape for investors in Belarus

Investors should not run into any red tape practices in Belarus.

The President stressed that investors should be supported instead of getting pushed away. “I warn you that I will consider any reports about the failure to resolve an issue for investors as sabotage. It is time to get rid of laziness and bureaucracy,” he stressed and drew attention of Head of the Belarus President Administration Vladimir Makei to responsibility for such failures.

“We must straighten out these things immediately. People ready to invest millions in Belarus come to us. But we put projects on hold for 4-5 years,” said the President. Alexander Lukashenko demanded that foreign and domestic investors should get freedom.

The task of attracting and protecting foreign investors has been outlined. The country’s potential is huge and Belarus will welcome anyone able to assist with its development.

Belarus’ agribusiness open to investments

Belarus’ agribusiness should become a kind of a free economic zone for attracting all kinds of investments: proprietary savings of the companies themselves, private investments and foreign sources.

“There is enough space for everyone! The government will guarantee the freedom of operation of the investments and will create conditions to properly protect them,” said Alexander Lukashenko.

The President reminded that it is the last year of the rural revival and development program. “Major results are not yet seen because little time has passed. We have managed to detect major areas of efforts in agricultural production. The program has been producing results in manufacturing for three years in a row: a 6-8% increase in the output of major products – milk and meat”.

The head of state is convinced that in the near future the program will bring tangible results. “Every year the effect will grow. At present we should earn $3 billion, tomorrow - $7 billion, the day after tomorrow - $10 billion by selling agricultural products. We can do and make everything. Food will always sell. There are seven billion people across the globe, they need food. Food and fresh water are in short supply. We have them and they are most valuable for people”.

Belarus to tap more into mineral resources

The government and the National Academy of Sciences of Belarus should step up the development of deposits of commercial minerals, which are in short supply and promising for commercial exploration.

Belarus should delve deeper into the extraction of glass sand, facing stone, iron ore, gypsum stone, and carbonate bergmeal. It is possible to invite foreign investors and sign concession agreements.

“The Prime Minister and I discussed the matter of shale gas a while ago. Have you and Myasnikovich extracted it? Some time ago Europeans said that thanks to shale natural gas they will cut down Russian gas imports by a third soon. Why did we miss it? If we cannot do it, tell me directly. I will find someone who can. If it is possible, let’s get to work. Let’s focus money on it. It is small investment”.

In his words, better energy effectiveness and energy saving, frugality across the national economy should be the key principle of Belarus’ life. “The fuel and energy industry should considerably increase the use of renewable energy sources. It is where our scientists should make their contribution,” said Alexander Lukashenko.

Unfortunately, the frugality directive of 14 June 2007 has not yet become the guideline for households and manufacturers. It is one of the main ways to save hard currency and ensure Belarus’ economic independence. Only those, who can save money, can become rich, said the President.

Belarus to get into HDI’s top 50

In the next five-year period Belarus should become one of the 50 countries with the highest human development index (HDI). This is among the target criteria for Belarus’ social and economic policy.

In the post-Soviet period, Belarus was ranked first among the CIS states in terms of human development almost every year. The recent UN Human Development Report placed Belarus on the 68th position in the list of over 170 counties.

“All our economic aspirations are aimed at the constant raising of human development potential,” the President said.

Alexander Lukashenko underlined that at present Belarus can boast an increase in the life span and educational attainments, which are the major components of the human development index. It means there are good preconditions to further increase the HDI.

Social policy

Strong social policy is Belarus’ most important priority

Despite all kinds of difficulties, a strong social policy remains the most important priority of the Belarusian state.

Absolutely everything that is being done in the country is aimed at further improvement of the quality of life of Belarusians, the head of state said.

Alexander Lukashenko noted that this year’s budget remains socially oriented. The social expenditures have been even increased regarding most important positions. This year social and culture expenses have been increased by 14% over the past year.

The most efficient measure of the social policy is high employment when an individual can satisfy all his/her social needs.

Even when the unemployment hit new lows worldwide during the crisis, the number of jobless in Belarus remained low (1 -1.5%).

New jobs are created in the country every year. Some 170,00 new jobs were created last year, with fourth part of them in small towns and rural areas. Another 175,000 jobs are projected to be set up in 2010.

“Yet we have the cases when some companies had to reduce working hours. In such situations the government and employers need to take measures to support people who face difficult life situations.” These can be re-training and enhancement of qualifications on-job courses, targeted assistance to those who need help.

Major healthcare overhaul will be over in the next few years

The large-scale overhaul of the healthcare system will be over in the next few years.

This will enable us to proceed to a new qualitative level in providing medical services both in the capital city and in the regions, the President said.

According to Alexander Lukashenko the healthcare remains the state priority. Despite all the difficulties, Belarus is not introducing fee-for-service medicine. This is one of the most important measures of social security and manifestation of the care of people’s health. “Anticipating the unfounded critical remarks in the future, I would like to say here that some healthcare services are provided on a fee basis indeed. Yet the basic medical services are provided at the expense of the state! Fortunately our people do not know what it is to pay for every day in hospital or for every appointment to see a doctor, the head of state said.

Medical services in Belarus do not yield in quality to those provided abroad, the President noted.

Alexander Lukashenko urges to upgrade adult social care services

There is a need to develop advanced forms of adult social care services. According to the President, it is necessary to develop personal care services and care home services. “We need to take a closer look at this problem. We need to create modern-day conditions to take care of the elderly people,” Alexander Lukashenko said. The state will undertake to take care of the people with no families, while children will pay for the services to their parents if they cannot take care of them by themselves due to some reasons.

The head of state urged to improve the efficiency of medical and social services to the elderly people and disabled persons who need not only financial assistance. These people also need moral and psychological support, decent care, medical supervision. The number of care homes is not enough in the country to satisfy the demand.

The government should to develop a comprehensive social care program.

Foreign policy

Belarus wants rapprochement with US

Belarus is still in favor of a comprehensive rapprochement with the United States.

“It is in the interests of both Mink and Washington. We have enough areas to develop mutually beneficial cooperation and areas of common interests. We offer the Barack Obama administration, the first steps of which were encouraging, to enter a comprehensive partnership. We are keen on constructive cooperation,” the Belarusian leader said.

“The contacts with US representatives, including a meeting with a delegation of the US Congress, are a testimony to the mutual interest of the parties. However, a civilized, truly efficient dialogue is hardly possible when one of  the parties is openly pressurized. It is good that US business people, first of all, are aware of that. Top executives of a number of US companies said this during my recent meeting with them. By the way, nothing frightens or discourages them about our country,” the President said.

The Belarusian leader reiterated that it was discriminating on part of  Washington not to invite Belarus to the Nuclear Security Summit because “we did not dance to the tune of the United States and Russia”. “They told us to give away highly enriched uranium. I said, I do not give away anything – it is not mine, it is the property of the nation, under the control of the IAEA from who we do not hide anything. In addition, as far as I understand it, Russia reassures the US: don’t worry, we will take away the uranium from Belarus. I should say, neither Russia nor anyone else can do that without our consent.

We are ready to embark on negotiations. It is not about money, oil or gas. We are a nation, and what we have is ours,” the Belarusian leader said.

The President emphasized, “We are not blackmailing anyone. Neither are we going to create atomic bombs, we don’t need them. We just want a good attitude.”

Belarus ready for most sincere talk with EU

Belarus is ready for the most sincere talk with the European Union about every thing Belarus’ partners may be interested in.

“I guarantee that no topics will be avoided. We, however, expect that the talk will be objective, mutually respecting, sincere, without double standards,” stressed the head of state.

“In recent years we have managed to advance relations with the European Union to a quality new level. Our productive and consistent approach has received a response: Europe has understood the hopelessness of old approaches to Belarus. Dictate and pressure are replaced with an open and objective dialogue. We are pleased that such powerful European countries as Germany, France, Italy and others pioneer this sound approach”.

“I am glad that the European elite is rejecting the false stereotypes about the situation in Belarus. I am glad that Europe understands that Belarus is an island of stability and security,” said the President.

Alexander Lukashenko remarked that Belarus has never tried to hide its interest in more vigorous and comprehensive rapprochement with Europe. “It is our second largest trade partner and our key trade partners as far as some commodities are concerned. In addition, we have several serious problems and issues, which have been on hold for a long time. Our nations are looking forward to their resolution. The facilitation of visa regulations between our country and the European Union is the most vital one. We would like the Belarusians to avoid artificial barriers and formalities as they cross the border,” he said. Belarus welcomes the European Union’s Eastern Partnership Initiative, which is meant to enable large-scale involvement of several countries, including Belarus, in common European processes, added the President.

“Our relations in this project cannot be but those of equals. Without imposing any development model or cooperation format on us. Not like they are trying to do in the Eastern Partnership’s parliamentary dimension EuroNest. In EuroNest you, parliamentarians, should represent Belarus. The nation has elected you and it will not understand or support any other decision. Why do only we have to meet these requirements? There are other partner nations with the same problems we have. Why is Belarus singled out? If we don’t fit into the Eastern Partnership, tell us about it. Moreover, we have not received anything from it and will unlikely ever receive,” said Alexander Lukashenko.

Further development of political and foreign trade ties with such neighboring nations like Poland and the Baltic states will remain a priority of Belarus’ foreign policy. The head of state also remarked that long-term cooperation with Ukraine meets Belarus’ strategic interests. “The similar geopolitical position, the economy structure make the country our natural ally in several sensitive matters. This is why it is necessary to build a system of deep and comprehensive cooperation with the southern neighbor. The system was formed during top level meetings that have taken place recently,” he stressed. “I am convinced that if we are united, our opinion will be heard sooner both in the West and the East,” added Alexander Lukashenko.

Belarus to continue cooperation with Asia, Africa, Latin America

Belarus will continue developing relations with the countries of Asia, Africa and Latin America.

According to Alexander Lukashenko, all-round cooperation with Asia, Africa and Latin America is an important area of Belarus’ international policy.

“Let them criticize us for penetrating into Africa, America and so on although we are a small country. We are not there, we are here. We are creating the platforms to advance our interests, to sell our goods and help people develop. The same goes about Africa,” the Belarusian leader said.

The President drew special attention to a strategic partnership with China.

“Today this country is among the global leaders. It gives us a helping hand. Why should we refuse it?” Alexander Lukashenko said.

“We can also have a closer look at Japan. It is a powerful country, and we have solid grounds for cooperation with this state in many positions. Let’s expand this cooperation,” the President noted.

Lukashenko calls on Russia to get back to normal cooperation

Belarus President Alexander Lukashenko called on Russia to get back to normal cooperation and to build partnership bilateral relations.

The President also added that he would not want to have the problems pile up in the relations with the close neighbor, the Russia and Russian people.

He also stressed that no anti-Russian hysteria will be ever allowed and that Russian people will be always most welcome in Belarus.

Belarus President calls for honoring Customs Union commitments

The full-blown Customs Union of Belarus, Kazakhstan and Russia is only possible provided there are no exemptions and restrictions.

Belarus’ stance is extremely clear: the viability of a union is based on equality, regard for the interests of the parties, and observance of obligations. In this case, other countries will want to join it, this union will have weight on the international arena, the President said.

The head of state underlined that the full operation of the Customs Union will remove all barriers in the trade between the member states, give an impetus for the development of the national economies and the well-being of people.

“However, it is only possible provided there are no exemptions and restrictions,” Alexander Lukashenko believes.

The President noted that Belarus’ partners in the Customs Union “interpret trade terms in the Customs Union their own way and disregard legal provisions.” “What would our partners have not promised and guaranteed! Fair trade terms, transparent decision-making mechanisms and coordination of our interests. Where are all these promises and vows now? In the first months since the Customs Union was enacted we faced a number of difficulties and fundamental disagreements,” the President said.

He pointed out to the obviousness of the fact that if rational principles are abandoned, the single economic space will hardly be established within the time limit.  “Because of that any integration initiatives on the post-Soviet space have no chances to succeed. We will get to our own corners and sulk over there. But who is going to benefit from it, besides foreign competitors? Not our peoples, for sure,” the head of state said.

The President expressed strong confidence that the potential of economic integration on the post-Soviet space is not exhausted.

Belarus forced to seek new markets

The need to stop being dependent on monopolies, primarily from Russia, forces Belarus to seek and secure its foothold on new markets.

“It is our vital need to avoid dependence and dictate, primarily that of Russian monopolies. To avoid being kicked about and blamed that we live at someone else’s expense,” said the head of state. “We are forced to seek other markets and we have found them, not only in Venezuela,” he added.

As an example Alexander Lukashenko recalled the sugar dispute: “Who was behind it? The tycoons that deal with this sweet matter in Russia. They came to Putin and said that [Belarus] sets dumping prices, subsidizes, supplies cheap sugar to the Russian market, destroying our economy. I was trying to prove my point to the president and the prime minister of Russia: you make about 50% of the sugar you need in Russia. For instance you import 1 million tonnes and we supply 150,000 tonnes. Why do you reject Belarusian sugar? You still buy the rest! You say that we set dumping prices. Good. Let’s say that the income we gain with these low prices is sufficient for us. Name the body we should sell this cheap sugar to. Take it away and sell to the Russian people at a tripled price in order to keep the prices high. They couldn’t do it”.

The President also reminded that due to the blocked supplies of Belarusian sugar the sugar price in Russia went up several times. “What kind of politics is that? Why did anyone have to make sugar in Russia that expensive? People have to buy it! So this is the kind of politics I am talking about. We were ousted, they got what they deserved,” said the Belarusian head of state.

“Then we are building the Customs Union. Customs duties have been imposed on oil, making it almost twice as expensive. Why do you do it? Is it your politics? Well, we have to comply because it is their commodity,” said the President.

Alexander Lukashenko remarked that in this situation Belarus had to seek oil in other countries and today it successfully and profitably extracts oil in Venezuela and has started extracting oil in Iran. “You are our closest allies. You and we built the oil pipelines together and explored gas deposits together. Why do you push us away? Why do you force us to seek our happiness, this hydrocarbon raw stock at the back of beyond? If it is transported from Venezuela, a tanker has been on its way for two weeks now. But Russia is nearby! Let’s us extract oil and natural gas. On your terms,” said the President. He said that Russia has not made the decision yet.

The President stressed that one should not search for some undercurrents in Belarus’ active actions aimed at pursuing a real multiple-vector policy. “Such is the time. If we don’t learn how to respond fast and adequately to challenges of the present, we will suffer as poor cousins in someone else’s backyard,” he said.

“The Belarusian nation is a nation of working people. Maybe not in Russia but overseas, we will honestly earn our living. I am sure that Russian people understand and support us. Because we will never do anything that may harm the brotherly nation. It is impossible to destroy by any clichés that Russian mass media and sometimes politicians try to put on us,” concluded Alexander Lukashenko.