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Economic Reforms Are Inevitable And Painful, World Bank’s Manager For Belarus - udf.by - Belarus
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Economic Reforms Are Inevitable And Painful, World Bank’s Manager For Belarus
We have always believed and are still convinced that the economic future of Belarus depends on whether structural economic reforms will be carried out. Our message remains unchanged: today, structural reforms are even more important and relevant than it was in the past. The Belarusian economic model the country chose around 2003 is currently under severe stress. Belarus has consumed more than it has produced for a long time and thereby making significant progress in terms of improving the living standards of people. There are not so many ways to close the gap. The country is like a family. If you consume more than you earn, this is due to the depletion of your own savings and reserves, external borrowing or help from other countries. The ability to use all these options has recently been declining. The state of balance leaves much to be desired: household savings are running out, and it is more difficult for the country to borrow from its traditional lenders. As a result, the country has to live within its means: it cannot afford the previous level of state support for agricultural enterprises, subsidizing heating services for the population. The need for structural transformations became much more acute in 2017 when foreign debt reached 130% of exports than in 2003 when it was only 30%. The Roadmap is a process of in-depth technical discussions and consultations of the World Bank and the authorities in 2016–2017, and then in 2018–2019. The roadmap includes five chapters. The first and most important is the real economy. We focus on the situation with state-owned enterprises and competition policy. State-owned enterprises use national capital less effectively than private ones. They create a debt burden that increases the need for borrowing, including external borrowing. Economic growth is impossible without the effective use of capital. If Belarus continues to borrow outside the country in order to support its state-owned enterprises, its position will remain very fragile. The World Bank does not insist on large-scale privatization. Some businesses will work better if they become private. Others may well remain state-owned, be restructured and made subject to market discipline. Some businesses will have to be closed down. Another chapter of the roadmap is social protection. Belarus needs a broad and effective unemployment protection program. Expenditures on unemployment benefits in Belarus amount to 0.006% of GDP. The cost of targeted social assistanc...
Flexible Stagnation: How Lukashenka Has Held On To Power For 25 Years In Belarus - udf.by - Belarus - Eu - Ukraine - Russia
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Flexible Stagnation: How Lukashenka Has Held On To Power For 25 Years In Belarus
And a 39-year-old former collective farm director with a deep, nasal voice and a knack for populist pronouncements won the first — and so far only — democratic presidential election in Belarus. Alyaksandr Lukashenka was sworn in on July 20, 1994, beginning the first of five presidential terms — and counting. Europe and the world have undergone startling transformations over the last quarter-century but the presence of Lukashenka has been a constant. Or has it? The wily leader of this resource-poor nation of 10 million bordering Russia, Ukraine, and three European Union and NATO countries has proven endlessly flexible in his constancy, turning his country into a textbook example of adaptive authoritarianism. To the surprise of most observers, the political neophyte Lukashenka proved from the beginning to be an adroit politician with formidable instincts. At a turbulent time he tapped a vein of conservatism in Belarus, whose citizens overwhelmingly voted against the dissolution of the Soviet Union in the 1991 referendum and have often sought stability but had to settle for stagnation. He moved quickly to lay the foundations of the authoritarian system that has become entrenched under his rule by holding a constitutional referendum in 1996 that extended his term to 2001, gave his decrees the force of law, and gave him virtually complete control over the state budget. With these powers, he quickly established personal control over all key institutions — the judiciary, election commissions, unions, law enforcement and security agencies, all major media, and so on.
Lukashenka and Putin part ways leaving idea of forced integration in air - udf.by - Belarus - Russia
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Lukashenka and Putin part ways leaving idea of forced integration in air
«Today we have a program. This is more or less a strategic document. And today we have a big volume or, to put it in plain language, a heap of current problems. The Group and the governments see these problems. And we have developed a program, which, according to government estimates, has been agreed upon by 80-90%,» says Alyaksandr Lukashenka. What are these contentious issues or «current problems»? In fact, there are quite a few of them. If we talk about the main issues, it is compensation for the Russian tax maneuver, determination of the gas price for Belarus for the next year, payment of long promised Russian loans. All these «controversial issues» from Moscow, from the representatives of the Russian government, were answered by the following: «First, integration, then...». It seemed that after the talks between the leaders of Belarus and Russia in St. Petersburg, the question of what would come «first» was removed from the agenda, but... The Forum of Regions ended, and the leaders went home, but «current problems» reminded of themselves. «Tax maneuver is a sovereign right of Russia, so it's unlikely to be correct to talk about any „compensation“ for Minsk, we may talk about possible assistance to Belarus in mitigating the consequences of its introduction,» said Deputy Foreign Minister Grigori Karasin to RIA Novosti on July 19. According to Associate Professor of Political Science at the Moscow State Institute of International Relations, Kirill Koktysh, such a development of events was to be expected. After all, Russia's goal today is to limit any financial support to Belarus. «It will be very profitable for Russia today to reduce the amount of money, which it used to give to Belarus, retaining the existing status of relations. The tactics is simple: pay a little less for the existing union. From Moscow, it sounds like: „First integration, then negotiations on gas prices. The same applies to Russian loans or compensation for tax maneuver. Minsk says that this is unacceptable for Belarus. In Moscow, they rub their hands: “Well, then, no loans and compensation, and pay as much for gas as we tell you! If nothing is done, if there are no counter-proposals and initiatives from Minsk, the Russian government will be able to implement this game. After all, when you remain just an object, you do not offer anything, you do not make any moves in response and just say „this can't be right, it's wrong,“ it won't work, because everyone will play in their favor,...
Where Does Belarus Rank In 2019 Sustainable Development Report By UN - udf.by - Belarus
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Where Does Belarus Rank In 2019 Sustainable Development Report By UN
The report was published by the United Nations, Emerging Europe writes. Countries in the report were evaluated on 17 key criteria for sustainable development, including eliminating poverty and hunger, establishing quality education, providing access to clean water and sanitation, promoting responsible consumption and production, having access to a decent workplace and contributing to the economic growth. Belarus appears in Top 25, according to EE, and neighbors Croatia (22nd) and Latvia (24th). Other countries in Top 25 are Estonia (10th), Slovenia (12nd), Croatia (22nd), Hungary (25th), while Montenegro closes the index, ranking only 87th. Four years after the adoption of the Sustainable Development Goals (SDGs) and the Paris Agreement, no country is on track to meet all the goals. Overall, emerging Europe’s countries obtain their best performance when it comes to erasing poverty and promoting affordable and clean energy. For instance, the leader of the ranking Czech Republic scored best in the No Poverty index, having already met the criteria for achieving this goal. However, major challenges remain in the area of Climate Action, although only Latvia performed slightly better. Still, compared to other regions, when it comes to the rule of law, peace, justice, and strong institutions, CEE lags behind, due to relatively high perceived corruption in some countries, poor freedom of speech or insecurity.
Belarus eager to raise Russian oil transportation tariffs by 21.7% - udf.by - Belarus - Russia
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Belarus eager to raise Russian oil transportation tariffs by 21.7%
The letter says that as a result of the bad quality oil getting into the Belarusian main pipeline system, the transportation of raw materials to Adamava and Brody was suspended. So far, the transportation in the direction of Adamava has been carried out partially. Due to such force majeure, the Belarusian company lost $23.7 million. The losses were calculated taking into account additional revenues from oil transportation in the reverse direction. Consequently, the volumes of transportation decreased and the level of current tariffs does not allow to cover operational costs linked to the maintenance of the main oil pipeline facilities, as well as the implementation of the technical re-equipment program in 2019. The Russian Transneft has not yet commented on the proposals of the Belarusian side. In April, the Russian oil polluted with chlorides entered the pipeline system in Belarus. In this regard, the transit of raw materials to Europe was stopped on April 24. Supplies of clean oil later resumed, but Belarus still has to clear its pipeline system of substandard oil and this process will only end in mid-August. The annual volume of Russian oil transit through Belarus is about 50 million tons. The proposal to raise tariffs was made in mid-April, and Minsk explained it by the need to preserve the environmental safety of pipelines. However, Russia did not support this proposal, citing its lack of justification. Then the issue of tariff increase was overshadowed after the polluted oil incident.
Vladimir Putin - Time to pay attention to Belarus - udf.by - USA - Belarus - Eu - Ukraine - Russia
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Time to pay attention to Belarus
Lukashenko likely thought hosting the games would be an opportunity to rally Belarusians around his leadership. Instead, his country is feeling increasingly anxious amid mounting tensions with Russia. Russian president Vladimir Putin's attendance for the closing ceremony on June 30 didn't calm the situation. Ever since winning the presidential election in 1994, Lukashenko has ruled the country with an iron fist, obsessed with staying in power. He disappeared several opponents and critics in the late 1990s. In 2006, he resorted to fraud to secure victory in the presidential election and cracked down violently against his opponents. The United States and European Union in turn slapped sanctions on him and his regime. After Lukashenko released all the political prisoners in 2008, the West eased sanctions; they reimposed sanctions after another bad election and crackdown in 2010. They lifted them almost entirely after the 2015 elections, which did not see a repeat of the crackdown in previous elections; this easing of sanctions also came against the backdrop of Putin's illegal annexation of Crimea and invasion of Ukraine. Before Putin, the doddering Boris Yeltsin was Lukashenko's Russian counterpart, and Lukashenko was convinced he could outmanoeuvre Yeltsin. Lukashenko thought a union treaty between Minsk and Moscow signed in December 1999 would be the path for him to run the two countries together. Lukashenko's plans were scuttled, however, when Putin replaced Yeltsin as Russian president. In Putin, Lukashenko found himself with a new Russian leader who had no intention of serving as second fiddle. Putin steadily pursued a more assertive policy toward Russia's neighbours, including invasions of Georgia in 2008 and Ukraine in 2014. Pressure on Belarus grew as well, as Putin reduced oil subsidies and other financial support to Belarus. He convinced Lukashenko to join various regional entities — the Collective Security Treaty Organization and Eurasian Economic Union – as part of an effort to establish a Russian sphere of influence. Putin also wants to set up a military base in Belarus, which would take to another level the increasing integration of Belarusian and Russian military and security forces. The recent report of the International Strategic Action Network for Security clearly demonstrates Putin's «creeping assault on the sovereignty of Belarus.» More recently, the Russia-Belarus union, dating back to 1999, is back in fashion, because formalising suc...
IMF urges Belarus to raise retirement age - udf.by - Belarus - Ukraine - Turkey - Russia
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IMF urges Belarus to raise retirement age
The reasons are low birth rates and migration in Europe. In this regard, the IMF recommends demographic reforms, including some for Belarus. The experts claim that the reduction of the population entails three negative consequences. First, it will have a negative impact on economic growth, living standards and financial stability. Secondly, as the population ages, the pressure on health care and pension systems will increase. Third, the ageing of the population will affect the economic productivity. For each country, the IMF experts propose their own measures. In particular, it is recommended to raise the retirement age for Belarus. «Pension age reform is likely to be required in most countries of Central, Eastern and South-Eastern Europe, but it will be especially expedient in Belarus, Moldova, Russia, Turkey and Ukraine — both in terms of the number of labor force and financial stability,» the report says. In addition, the IMF experts recommend that Belarusian authorities pay attention to the employment of women, as well as of people over 55 years of age. The latter measure, according to experts, could be very effective: «Belarus would get a great benefit if it would increase the employment of older people even without raising the retirement age. Back in 2016, the IMF strongly recommended that Belarusian authorities continue pension reforms in order to close the pension gap after 2022. The experts of the Fund advised to raise the pension plan for both men and women under 65 years old.
Vladimir Putin - Minsk pushing for removal of Russia’s sanctions on importing Belarus apples - udf.by - Belarus - Eu - Ukraine - Russia
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Minsk pushing for removal of Russia’s sanctions on importing Belarus apples
In simple terms, they are checking whether the apples that soon might be labelled ‘made in Belarus’ do grow in the country. In April, Rosselkhoznadzor, the Federal Service for Veterinary and Phytosanitary Supervision, imposed temporary restrictions on the imports of apples and pears from Belarus claiming that it makes deliveries of sanctioned food of EU origin to Russia. Rosselkhoznadzor stressed the agency did not receive reliable information about the volume of imports and the volume of goods that passed through the procedure of customs clearance in our country. This leads to falsification of the goods’ true country of origin, the Russian side added. Over the past two days, Rosselkhoznadzor experts have made a number of visits to Belarusian gardens. According to the watchdog, they are estimating the production capacity of farms in Brest, Vitsebsk and Hrodna. They came to Belarus at the invitation of Alyaksandr Piskun, Director of the Main State Inspectorate on Seed-growing, Quarantine and Plant Protection. In May, Rosselkhoznadzor said they had no intention to lift the ban. In late June, Russian president Vladimir Putin signed a decree extending ‘specific economic measures against countries that imposed sanctions against Russia until December 31, 2020. Since August 2015, Russia has destroyed about thousands of tons of food from countries that were put under the Russian food embargo. Most of these products made it into Russia through Belarus. Belarusian companies gained notoriety for purchasing food products ‘made in the EU’, ‘editing’ some inscription on their packages and then delivering them to Russia which took retaliation measures against the bloc for its sanctions list and support of Ukraine.
2019 Parliamentary Elections and New Constitution - udf.by - USA - Belarus - Poland - Russia
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2019 Parliamentary Elections and New Constitution
Currently, the statements of the Belarusian side on diversification of oil supplies is an attempt to blackmail Russia. In reality, the Lukashenka team do not take any measures aimed to diversify oil supplies. It is highly unlikely that in response to increasing US military contingent in Poland Lukashenka would agree to deploy Russian military contingent or Russian military bases. Lukashenka will bid for the presidency at the presidential elections that are to take place in 2020, after the parliamentary elections. In the next presidential term, he will be thinking of a successor. Lukashenka speaks of a new Constitution, meaning the forthcoming hand over of the authority to a successor. Despite the growing disagreements in the issues of the integration within the union state, the Kremlin and Lukashenka will not announce the end to the project. On December 13, 2018, the Vice Premier of Russia Dmitriy Medvedev claimed: “Russia is ready to keep moving on the way of building up the union state, including the creation of the single currency emission centre, the unified customs, courts, auditing chamber.” Since then, practically every month the sides have been exchanging statements of strongly different variants of developments in the relations within the union state. The Russian side suggests discussing its initiatives on deepening integration. On December 14, Lukashenka claimed: “If someone wants to pop us into Russia – that will never happen… Under the pretext of the deep integration, Moscow wants to incorporate Belarus into Russia. I understand these hints: get the oil, but go ahead, ruin the state and enter Russia.” Lukashenka claimed that it is through Russia’s fault the union state has not yet been created. The union implies equal rights, equal conditions for economic subjects. And these conditions are getting more and more uneven. According to Lukashenka, currently, the Belarusian enterprises pay 200 USD for a thousand cubic metres of gas, whereas Russian enterprises pay 60 USD. Commenting on the statements from Medvedev regarding the unified emission centre and unified customs, Lukashenka claimed that Russia offered “to create the union from the roof, and not from the basement”. Such basement, in his opinion, is the creation of equal conditions for economy subjects, i.e. supplies of oil and gas at home Russian prices and absence of barriers for Belarusian exports to Russia. The problem is not about the logic or sequence of integration (basement-roof),...
Why Belarus Doesn’t Compromise With EU To Abolish Death Penalty - udf.by - Китай - USA - Belarus - Eu
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Why Belarus Doesn’t Compromise With EU To Abolish Death Penalty
In Belarus, criminals are executed for the most heinous and brutal crimes. Since 2007, there were less than five death sentences per year. However, the very existence of capital punishment distinguishes Belarus not only from the rest of Europe but also from other post-USSR countries. The European Union and the Council of Europe don’t neglect a single death sentence in Belarus, usually reacting with the statements of condemnation. For many European capitals, the death penalty is a dark stain on Belarus’s reputation that seriously hinders the development of mutual relations. The death penalty doesn’t prevent the EU from building relations with other countries, such as China, Japan, or the bastion of democracy – the United States. When the argument is brought up in a conversation with Western diplomats, one always hears the same mantra: “this is Europe, and there is no place for the death penalty.” The EU insists on the moratorium not only because of some European values but also because this concession is politically convenient, it is very easy to record. It’s not clear how to measure freedom of speech or assembly, while the death penalty – either you have one or you don’t. For the EU, this is an understandable criterion of progress. Most often, the government refers to public opinion, particularly to the referendum of 1996, where the majority voters voted in favor of retaining the death penalty. Truth be told, independent polls also show that Belarusians don’t support the abolition of capital punishment. But since when this was a problem for the authorities? What’s stopping the government then? There can be two explanations: either Lukashenko is really a staunch supporter of capital punishment or he doesn’t want to sell this concession cheaply. Some officials familiar with the subject admit that attempts to lobby for a moratorium on the death penalty within the system always rested on the unequivocal refusal of the president. The second reason – the lack of a counteroffer from the EU – looks more realistic. For moral reasons, the EU cannot simply offer Minsk a bag of money for stopping the executions. In general, in Brussels, there are neither the means to work with Belarus nor the enthusiasm to buy any concessions. On the upside, since the moratorium on the death penalty is a one-time favor, Minsk doesn’t want to give a trump card for nothing. Therefore, there are only two ways out. Either the EU should radically reconsider its relations with Belarus a...
MP Kanapatskaya turns to Prosecutor's Office over integration talks with Russia - udf.by - Belarus - Russia
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MP Kanapatskaya turns to Prosecutor's Office over integration talks with Russia
«My concern about such secrecy in the work on integration of the two states is caused by the threat of loss of real independence and sovereignty of Belarus… as well as an unexpected forced integration process,» Kanapatskaya wrote on her Facebook page. She stressed that the Belarusian society is also concerned about this problem. «The lack of information on this subject, its secrecy, only fuels concern and social tension within Belarus,» said the deputy. Despite the fact that the head of state and officials reassure people, saying that there is no threat to independence, Belarusians see ultimatums, pressure and blackmail from the Russian leadership. Deputy Hanna Kanapatskaya demands that «full information about the ongoing processes of integration of Russia and Belarus» as well as about the work of the Belarusian working group and the joint group with the Russians on integration be provided to her. Kanapatskaya also demands that the media produce regular reports on the «integration» negotiations. «The issue of independence and sovereignty of Belarus is one of the few and the most important ones that unites the authorities, the opposition and the Belarusian people,» writes MP Kanapatskaya. «Thus, only openness in this matter will allow to preserve the independence and sovereignty of the country, as well as to consolidate the Belarusian society,» says the MP. On July 9, Alyaksandr Lukashenka spoke about the work of the joint group on integration. He saw in the actions of Russians «one promises» and «slowing down of the processes».
Wimbledon umpires hand down record number of fines for swearing and racquet smashing - udf.by - Belarus - Russia - Italy
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Wimbledon umpires hand down record number of fines for swearing and racquet smashing
Fifteen players were fined a total of $106,400 (£84,950) throughout the first six days of this year’s competition, already overtaking last year’s total of $68,000 (£54,300) enforced over the full two weeks. The heaviest fine this year was given to Bernard Tomic, who was penalised a record $58,500 (£45,000) for lack of effort in his first round clash against Jo-Wilfried Tsonga on Tuesday. Belarusian player Aryna Sabalenka was fined $10,000 (£7,990) for “unsportsmanlike conduct,” whilst $5,500 (£4,400) was levied against Russia’s Daniil Medvedev for the same offence after he attacked the grass court with his racquet and refused to shake the umpire’s hand at the end of the game. There are a total of 24 offences that Wimbledon bosses can hold players to account for — including punctuality, dress code, swearing and abuse of racquets and balls. In 2016, $93,500 (£70,700) worth of fines were handed out during the whole tournament, up from $62,500 (£40,000) in 2015. Saturday’s play saw Italy’s Fabio Fognini say he wished “a bomb would explode” on the AELTC after he was scheduled to play on a smaller court. Wimbledon CEO Richard Lewis said that there is likely to be a small fine for the “unfortunate” comment, adding: «It was one of those heat of the moment comments which is a very unfortunate and he was good enough to apologise straight away.” The Wimbledon boss also suggested that the “bay boy of tennis” Nick Kyrgios could be fined for how he spoke to the umpire during his match on Thursday. »Whether there's anything to do with some of the conversational discussion Nick had with the umpire, I think that maybe is worthy of scrutiny," he said.
Single currency to follow single gas prices -- Ambassador Syamashka - udf.by - Belarus - Russia - county Union
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Single currency to follow single gas prices -- Ambassador Syamashka
«By the end of 2018 [Belarus and Russia] had to work out a common formula in order to reach comparable gas prices for Belarus and for consumers of Smolensk region of Russia in the future. And on July 1 this year, we we supposed to sign the corresponding intergovernmental agreement. It would have been a decisive and beneficial step on the way to the convergence of economic conditions for the enterprises of Belarus and Russia. It would allow to start solving other more complicated tasks of the Belarusian-Russian and Eurasian economic integration. We sent our proposals to the Ministry of Energy of the Russian Federation, Gazprom and the Russian government. We proposed different methods but have not yet received any official conclusions. A similar situation is happening with the tax maneuver. We believe that this is a violation of the Eurasian Union Treaty,» the website of the Ministry of Foreign Affairs of Belarus quotes the diplomat. According to the diplomat, it makes no sense to solve the problems of a single customs and tax legislation, single currency and emission center until the issues of common prices for energy supplies are resolved within the Union State of Belarus and Russia. «MAZ has to pay $278 per thousand cubic meters of gas, while KAMAZ — $65. MAZ pays 11 cents for electricity, while KAMAZ — no more than 4 cents. „Until we equalize the economic conditions, it's premature to say that we'll immediately solve the problem of a single customs and tax legislation, single currency, single emission center,“ said Ambassador of Belarus to Russia.
Two world-famous bands to rock Minsk in July - udf.by - USA - Belarus - Britain
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Two world-famous bands to rock Minsk in July
On July 14, the British band Bring Me The Horizon will present their big program. It is not the first time that rockers will come to Belarus. In the past, every performance was sold out. There is almost no doubt that this time it will be the same, so it's better to buy tickets in advance. Moreover, the Belarusians will hear songs from the new album where the band changed its sound and moved away from the usual «metal» feel. The tickets are rather affordable with prices ranging from 67 BYN for the dance area (without commission). You can buy tickets at the ticket offices in the city, as well as here. The next day, «Chyzhouka Arena» will again host the main rock stage in Belarus, as the Thirty Seconds To Mars will come to Minsk once again. They have already visited Minsk three times — in 2011, 2014, and 2015. And in 2017, the performance was cancelled due to the economic situation in the country. Still, each previous gig was packed. Most likely, this time it will be the same. Americans are the idols of several generations at once and still remain in the tops of international music charts and awards. In addition, their front-man Jared Leto continues his acting career and has every chance to win more than one Oscar. So it will be possible to see and hear the person who is sometimes compared to a biblical hero for his appearance and voice in real life very soon. The Americans have chosen Mahiliou rockers Nizkiz which were competing with well-known European bands as their supporting band. And it is not surprising, because now the band is one of the most popular ones in the country. Tickets are still on sale with prices starting at 80 rubles. There are few seats left, but relatively good tickets can still be found on the organizers' website.
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