OREANDA-NEWS. February 28, 2011. The Belarusian Parliament approved the Government Plan of action for 2011-2015.

When presenting the document to the deputies Belarus’ Prime Minister Mikhail Myasnikovich said that it is a sort of roadmap of the Government to implement the orders of the President and the tasks set at the Fourth All-Belarus People’s Congress.

The specific feature of the document is that it has a direct influence. The measures described in the document create a mechanism to achieve the country’s major objectives.

Mikhail Myasnikovich said that the Government has to deal with unheard-of tasks. “Belarus has to demonstrate economic growth similar to that of the Four Asian Tigers. Another specific feature of Belarus’ social and economic development in 2011-2015 is that the country has to move forward amidst the post-crisis recovery of the global economy. But this process is rather slow.”

The Prime Minister said that the Government of Belarus intends to seriously change the style and working methods in order to create the conditions for reaching the five-years targets. “We will create incentives to encourage Belarusian citizens to show more initiative and to be more enterprising,” he said.

According to Mikhail Myasnikovich, during the next five years qualitative indicators of economic development (efficiency, labor productivity, export, and trade surplus) will replace the pre-planned volume indices.

The Government will ensure equal conditions for effective and socially responsible owners, regardless of whether a company is state-owned, private, domestic or foreign.

“It is the first time that this program includes target measures to improve Belarus’ positions in leading international rating lists,” Mikhail Myasnikovich said.

In his words, to asses one’s own level of economic development is one thing. But if a country wants to build an open economy and attract investors, it should be guided by generally recognized criteria.

“We do not disregard conclusions and recommendations of foreign financial institutions. The IMF and World Bank ratings inform the global community about Belarus and outline prospects of cooperation with the country,” said Mikhail Myasnikovich, repeating that the economy of Belarus is open.

“This year we are planning to take all decisions to make sure that Belarus gets into the top thirty business friendly countries. Directive No 4 has proved very useful in this respect. As instructed by the President, the documents necessary for its implementation will be prepared by the Government in the first half of 2011. Specific areas of work are spelled out in the relevant section of the government’s program,” the Prime Minister said.

Today the country is dealing with the issue of improving the investment climate, he said. The government’s program includes specific measures for systematic work in this direction.

The Government has also prepared and already submitted to the Head of state a draft decree on the radical reduction of the number of forms of primary records required for the application.

In 2012 Belarus will start applying international financial reporting.

According to Mikhail Myasnikovich, Belarus needs to work hard to improve conditions for international trade, credit, and logistics. “The Government is considering the issue of Belarus' joining the rankings of global competitiveness, economic freedom, the transition to a higher group of classification of credit risks,” the Prime Minister said.

The Prime Minister reminded that the Government of Belarus pins high hopes on the Customs Union and the single economic space.

“Upon our invitation the session of the Union State Council of Ministers and the EurAsEC will be held in Minsk on 15 March 2011”, Mikhail Myasnikovich said.

“There are plans to set up powerful international corporations in partnership with Belarusian companies that will grow into major players in the raw materials market and global distribution networks,” he emphasized.

There is no doubt it makes more economic sense to compete as part of big companies. However, to turn from a competitor into a partner and to gain from the integration of the vast Customs Union market and other unions, we need a very strong economic strategy and tactics. “The Government of Belarus will embrace integration, be it in the dairy industry, in machine building, biotechnologies or chemical industry and advance national interests,” the Belarusian head of Government said.

He reminded that the cooperation negotiations are in full swing between MAZ and KaMAZ; microelectronics companies and other enterprises might follow suit.

Speaking in the Oval Hall, the Prime Minister touched upon a possibility to achieve a foreign trade surplus by 2015. In his words, many are skeptical about it and there are reasons for doubts. Mikhail Myasnikovich unveiled some specific steps to be made to boost exports and reach a foreign trade surplus. The Government intends to double exports and curb the import growth. An emphasis will be placed on local raw materials and products with a high added value and low import-intensity. The only exception will be made for the import of investments.

“According to our estimates, it should be increased fourfold, which means that consumer and intermediate import cannot grow more than 1.5-1.7 times. This is the only way to eliminate the trade deficit in 2014 and increase the share of machines and equipment in investments,” Mikhail Myasnikovich said.

According to him, “the Government Plan of action for 2011-2015 sets the course for formation of technological holding companies integrated with scientific and production associations both in the industrial and agricultural sectors”.

The Prime Minister noted that in the next few years holding companies will be created in the flax, leather and footwear sectors, and vertical integration in the agricultural, food production, woodcutting and woodworking sectors will be expanded. “These very industries running on local resources have the capacity to ensure a significant increase in production and exports with a minimum increase in imports,” the head of Government said.

The Prime Minister informed that the Government has set ambitious goals for investments. Over the five years, more than 200 breakthrough innovation projects are to be implemented. They will be financed by Chinese loans and other external borrowings raised by Belarusian banks.

Belarus plans to build cutting-edge pharmaceutical plants in cooperation with international brands, Mikhail Myasnikovich said.

“We are planning on launching construction of new turn-key cutting-edge pharmaceutical plants in cooperation with global brands. Together with the development of the microbiological sector, which is virtually non-existent in Belarus, and also with the production of phyto- and veterinary preparations, this will help build up a new industry,” Prime Minister believes.

Mikhail Myasnikovich also stressed that the Program of Government’s Activities focuses on the development of the agricultural sector. “The goal of increasing agricultural export up to USD 7.2 billion with the USD 4 billion trade surplus in the next five-year period means that we have to compete as equal with such transnational giants as Danone, Nestle, Parmalat and others,” the Prime Minister noted.

Talking about fears of returning to the “wild capitalism”, Mikhail Myasnikovich assured that the Government will take necessary steps to prevent it.

In his words, the Government has submitted a relevant draft decree to the president. In line with the decree, decisions to sell shares of joint stock companies included in the three-year privatization plans will be made by the State Property Committee. Only the President will make decisions on the strategically important companies.

“The revenues brought by privatization of state property should not be dispersed among current expenses,” the Prime Minister is assured. In his words, they will be put into the upgrade and creation of new companies. “We will sell some enterprises in order to set up new ones. When people really see this process, they will not mind it,” Mikhail Myasnikovich said.