Belarus: Developed Or Developing?

Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus has a population of around 9.1 million people, with about 81% of its residents belonging to the urban population. The country has a well-developed manufacturing industry, services sector, and agriculture, and is regarded as a developing country by the International Monetary Fund (IMF) due to its lower economic performance. However, Belarus ranks highly on the United Nations Human Development Index (HDI), placing it in the category of countries with very high development. With a strong emphasis on full employment and a dominant public sector, Belarus's economy has been described as a welfare state or market socialist.

Belarus has a developing economy, but a very high human development index ranking

Belarus is a developing country with a "very high" human development ranking. According to the International Monetary Fund (IMF), Belarus is a developing country due to its lower economic performance. However, with a Human Development Index (HDI) of 0.801, it is considered one of the highly developed economies by the United Nations (UN) definition. Belarus ranks 60th out of 191 countries on the HDI and is in the top tier of countries with a very high level of human development.

The economy of Belarus is an upper-middle-income mixed economy. As a post-Soviet transition economy, Belarus has maintained centralized political and economic controls by the state, rejecting most privatisation efforts. Belarus is the world's 74th-largest economy by GDP and has experienced high rates of economic growth during 2003-2013, with a steady and dynamic growth of its GDP, mainly driven by the performance of the industrial sector. The country has a well-developed manufacturing industry, services sector, and agriculture, with manufacturing contributing about 31% of its GDP in 2019. Belarus is also a major exporter, with Russia accounting for about 45% of its exports and the EU countries accounting for 25%.

Despite its economic development and high human development ranking, Belarus faces some challenges. The country's income levels remain below regional peers, and it has a negative population growth rate and a negative natural growth rate. Additionally, Belarus has been criticized for its human rights record, lack of freedom of the press, and civil liberties. The country has continued several Soviet-era policies, such as state ownership of large sections of the economy, and it is the only European country that continues to use capital punishment.

Belarus is a welfare state with a highly centralized economy

The country's economy is an upper-middle-income mixed economy, ranking 74th in the world by GDP. Belarus has a well-developed manufacturing industry, services sector and agriculture. The country has a high Human Development Index (HDI) score of 0.801, and is considered to be a high-developed economy by the UN definition.

Belarus has a strong health system, with a very low infant mortality rate of 2.9, and a high rate of doctors per capita. The literacy rate is estimated at 99%. According to the United Nations Development Program, the Gini coefficient (inequality indicator) is one of the lowest in Europe.

The country has a strong focus on exports, with an emphasis on technological upgrades to major industries and the development of new innovative sectors. Belarus also prioritises high-productivity jobs to harness labour potential and ensure social stability.

The Belarusian economy has experienced both growth and decline in recent years. Between 2001 and 2005, the national economy demonstrated steady and dynamic growth, with an average GDP growth rate of 7.4%. However, the period between 1996 and 2000 was characterised by significant financial distress, particularly due to the financial and economic crisis in Russia.

In recent years, Belarus has faced economic challenges due to its facilitation of the Russian invasion of Ukraine, resulting in trade sanctions from the EU and the US. The country has also experienced a brain drain, with many IT specialists leaving the country following the 2020 protests and the Russian invasion of Ukraine in 2022.

Despite these challenges, Belarus remains a significant player in the global economy, with a highly centralized economic system that prioritises full employment and social stability.

Belarus is a post-Soviet transition economy with a modest expansion of the private sector

As a post-Soviet transition economy, Belarus rejected most privatisation efforts in favour of retaining centralised political and economic controls by the state. The highly centralised Belarusian economy emphasises full employment and a dominant public sector. It has been described as a welfare state or market socialist.

Before the Soviet Union's October Revolution, Belarus was a relatively backward and underdeveloped country, heavily reliant on agriculture. However, after the construction of railways in the late 19th century, it experienced rapid economic and industrial growth, with several cities becoming significant industrial centres. During the post-war years, Belarus rapidly industrialised and became an important trade hub between the Soviet Union and Europe. Manufacturing became a pillar of its economy, with an emphasis on products such as tractors, heavy trucks, oil processing, and metal-cutting lathes.

Since the disintegration of the Soviet Union, Belarus has maintained government control over key industries and avoided the large-scale privatisations seen in other former Soviet republics. This has resulted in a mixed economy, with a dominant public sector and a modest private sector. The private sector has expanded gradually, with the government providing incentives such as tax-free profits and discounted VAT for businesses operating in Free Economic Zones (FEZ).

The benefits of trade, especially with energy commodities, have contributed to the success of Belarus' gradualist strategy in terms of real GDP growth and poverty reduction. Between 2003 and 2013, high rates of economic growth were accompanied by a fall in the number of households below the national poverty line and an increase in household income among the bottom 40% of the population.

However, despite high GDP growth rates, Belarus' income levels remain below regional peers. The country's economy has also been impacted by financial distress, particularly due to the 1998 and 1999 financial and economic crisis in Russia, which resulted in a sharp increase in prices, devaluation of the national currency, and a decline in trade with Russia and other CIS countries.

In recent years, Belarus has faced economic challenges due to political unrest, state repression, and its facilitation of the 2022 Russian invasion of Ukraine, which led to trade sanctions from the EU. Nevertheless, the Belarusian economy remains an upper-middle-income mixed economy and is ranked 74th largest in the world by GDP.

Belarus has a high literacy rate and efficient health system

Belarus is a landlocked country in Eastern Europe with a population of 9.1 million. It is officially known as the Republic of Belarus and has a highly centralized authoritarian government led by President Alexander Lukashenko.

While Belarus is considered a developing country due to its lower economic performance, it has a high literacy rate and efficient health system. According to the United Nations Development Program, the literacy rate in Belarus is estimated at 99%. This is impressive, considering that over 99% of Belarusians aged 15 and older are literate.

The country's efficient health system is evident in its very low infant mortality rate of 2.9, compared to 6.6 in Russia and 3.7 in the United Kingdom. Additionally, Belarus has a high rate of doctors per capita, with 40.7 doctors per 10,000 inhabitants. This is significantly higher than in other European countries such as Romania (26.7), Finland (32), and Sweden (41.9).

The high literacy rate and efficient health system in Belarus can be attributed to its socially-oriented market economy and investment in human development. The country has made significant progress in sustainable development and ranks 34th on the SDG Index and Dashboards Report. Additionally, Belarus ranks 60th out of 191 countries on the Human Development Index, placing it in the top tier of countries with a very high level of human development according to the UN classification.

In conclusion, Belarus has successfully prioritized education and healthcare, which has resulted in a high literacy rate and an efficient health system, contributing to the overall well-being and development of its citizens.

Belarus has a strong manufacturing and agricultural industry

The most important sector is the food industry, which accounted for 29.9% of total manufacturing output in 2019. Belarus's food sector not only fully satisfies domestic demand for food products but is also one of the country's main sources of revenue in foreign currency. The country's chief agricultural products include potatoes, flax, hemp, sugar beets, rye, oats, and wheat. Dairy and beef cattle, pigs, and chickens are also raised. Belarus's main crop products are barley, rye, oats, and wheat, as well as potatoes, flax, rapeseed, and sugar beets.

Other well-developed sectors of industry include the chemical industry (oil refining, petrochemistry, manufacturing of fertilizers and other chemical goods), automotive industry, and manufacturing of machinery equipment. Belarus has two state-owned oil pipeline operating companies and is a major producer of potash.

Belarus's economy is highly centralized, emphasizing full employment and a dominant public sector. It has been described as a welfare state or market socialist. The country's labour market is highly regulated, with important elements of the central-planning system still in place.

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