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Home » Economy of the World » Belarus
 

Belarus Economy
Belarus economy is lower middle with a gross national income or GNI per capita of $2,760 as per 2005 economic reports. After the fall of the Soviet Union all the nations those were the former Soviet republics, went through severe economic crisis. The Economy of Belarus has, however, have opted many ways to overcome this prevailing crisis.

Alexander Lukashenko, the first president of Belarus who was elected in the year 1994, brought into a new idea, which he called as "market socialism". This differed a lot from that of "wild capitalism", which was prevalent in Russia.

In recent times Belarusian economy has started improving after sustaining through severe deflation. Today the country is becoming a key location for trade between European Union and Russia, which led to 9.9% growth of GDP in 2006 further rise of 9% in the current year.

The market socialism policy of Belarus Economy led to an administrative control over the exchange rates of currency and prices of products sold in the market. The government also expanded its right to arbitrate in the policies of the private companies taken by their management.

Among the products that are exported from Belarus the most important ones are chemical and petrochemical products, transport vehicles and machineries and oil products. The economy of Belarus banks largely upon these export products. The government of the country spends quite a huge amount on importing products like energy and raw materials.



The government has taken effective steps to upgrade its economic conditions. Some of which are controlling production procedures, a high tax rate on the income group and redistribution of funds, which provides huge support to traditional companies and employment of the population.

The economy of Belarus has improved a lot since its independence in 1991. The adopted a highest standard of living, which it inherited from the time it was a part of Soviet Union. After the country became independent it had to undergo rigorous economic phases from downfall to high growth rates. The country had seek support from international organizations of the world to transform its economic status.

The government however, after 1995 took steps valuable towards securing jobs and wages of the working population rather than making policies for reformation. The government also made it a point to use a handsome amount of the GDP for subsidies and welfare of the society. Reforms that led to growth of the economy were taken.