Key economic branches

Key Economic Branches

The basis of the production potential Belarus is constituted by the industrial complex. Its share includes about 35 percent of all production assets, almost one-third of the total output gross domestic product and over 26 percent of people employed in the national economy.

Belarus has over 20,000 industrial enterprises and production facilities. The national industry incorporates over 100 sectors. The greatest share in the total industrial output belong to such sectors as machine building and metalworking, fuel, chemical and petrochemical industries, energy sector, food and light industries. Figure 12 shows the sectoral structure of its industrial output.

Figure 1. The sectoral structure of industrial output (2004)

I	Electricity generation
II	Fuel sector
III	Ferrous metallurgy
IV	Chemical and petrochemical industry
V	Machine building and metalworking
VI	Forestry, woodworking and woodworking and pulp and paper industry
VII	Construction materials industry
VIII	Light industry
IX	Food industry
X	Others

The industrial complex of Belarus includes the following basic sectors: machine building and metalworking (21.3 percent of the total industrial output in 2003), chemical and petrochemical industries (12.5 percent), electricity generation sector (8.1 percent), light industry (6.6 percent) and food industry (16.4 percent), as well as enterprises of fuel, forestry, woodworking and pulp and paper industries and the construction materials sector.

The industrial complex of the Republic of Belarus has the following competitive advantages for industrial production: current technological developments in certain lines of modern and innovative technologies; skilled staff and a high education potential of labour resources; availability of free production facilities allowing increase of competitive products output with relatively low production costs.

In 1998, the Concept and the Programme of development of the industrial complex of the Republic of Belarus for 1998-2015 were launched. They determined the main parameters, lines and mechanisms of sustainable growth of industrial output, increase of its efficiency on the basis of more active investment and innovation activities, accelerated restructuring of management as well as processes of organisational and legal, ownership, technological, staff and financial restructuring.

In the medium-term period, the development of the industrial complex is based on the Programme of Social and Economic Development of the Republic of Belarus for 2001-2005; the most essential parameters of this programme are the growth of production output (this rate made 148-150 percent over the period of five years), and improvement of such qualitative indicators as labour productivity, reduction of material intensity and energy intensity in the production output.

In 2004, the industrial output increased by 15.6 percent against 2003, while the shares of new and certified products reached 10.5 percent and 59 percent, respectively.

The main targets for the near future are to ensure stable growth rates of industrial output, improvement of its structure and enhanced competitiveness of the manufactured products. It is planned to primarily develop export-oriented and import-substituting, hi-tech and science-intensive, profitable and socially oriented production facilities.

In conformity with the prognosis of social and economic development for 2005, it is expected that the industrial output will be increased by 8-9.5 percent against the previous year.

The machine building complex of the Republic of Belarus has a great industrial, technological and scientific potential and includes over 300 enterprises, organisations and production facilities, the strategic aim of which is to increase competitiveness of products, boost the production and export capacities, effectively use financial and labour resources and introduce energy- and resource-saving technologies.

The priority sectors in this complex are automobile, tractor and agricultural machinery sectors, machine building, microelectronics, instrument construction, optics and mechanics industry.

The highest share in the machine building complex of the country belongs to the automobile industry (31.3 percent), the enterprises of which have a high innovative capacity and have achieved certain positive results in boosting the competitiveness, and in the manufacture of new products and winning of new markets.

The Minsk Automobile Plant (RUE “MAZ”) is the leading enterprise in the automobile industry, manufacturing about 300 models and modifications of trucks and 32 models of buses. In the recent years, this enterprise has started to manufacture an extended nomenclature of products and has switched over to small-batch production using versatile parts and assemblies and introducing flexible technologies. More than half of the products (61.5 percent) are exported, basically to the regions of the Russian Federation.

The enterprise actively modernises its trucks and motor trains, creates units and assemblies for new modifications of trucks, develop principally new generations of trucks and motor trains meeting the EURO-3 requirements, and plans to start production of trucks according to EURO-4 requirements.

In 2005, it is planned to attain production growth rates at 110 percent against the level of 2004. Also, the share of new products in 2005 will make 35 percent.

The Minsk Automobile Plant has certificates of compliance with the national quality standards STB ISO 9001-96 for the design, production and maintenance of automobiles and buses.

The Belarusian Automobile Plant (RUPE “BelAZ”) specialises in the manufacture of quarry machines for production of natural resources by open-cast method; it is one of the seven largest producers in the world, and it has one-third of the world market and 96 percent of the Russian and CIS markets. The dump trucks manufactured by this enterprise are used in over 50 countries.

The RUPE “BelAZ” specialises in the design, manufacture and sale of quarry dump trucks that have high or very high carrying capacity (from 30 to 280 tons). They are designed for carrying of mined rocks and bulk cargo in open-cast mining fields and for construction of industrial hydro-technical structures. The enterprise also manufactures road-construction machines (frontal loaders and dozers); machines for quarry and tug trucks for evacuation of damaged dump trucks; mobile maintenance and service trucks; irrigation and sprinkling machines for open pits and roads maintenance; slug carriers up to 80 ton capacities; heavy-duty trucks rated up to 150 tons; aerodrome trucks for taxing airplanes with the take-off weight up to 260 tons.

The Minsk Wheeled Trucks Plant mostly manufactures tractor trucks and carriages for installation of crane equipment. Technical characteristics of the manufactured products make it possible to use motor vehicles in various economic sectors, in regions with developed and undeveloped road networks.

The enterprise has performed significant work for manufacture of new heavy-duty motor vehicles of various purposes that are competitive in foreign markets and have basic parameters similar to the parameters of such products manufactured by the world leading enterprises. The enterprise has developed more than 80 new specimens of motor vehicles within the conversion programme. Currently, management as well as quality assurance and modernisation activities are carried by the enterprise within the system which has been certified for compliance with international requirements.

To increase the technical level of manufactured products, a range of measures is implemented, including cooperation with such companies as Daimler-Chrysler (Germany), Alison (USA), and others.

The OJSC Minsk Bearing Plant is the largest manufacturer of bearings in the country; it manufactures over 600 typical dimensions of bearings. The enterprise has production capacities allowing it to manufacture up to 35 million bearings a year. The enterprise manufactures 6 main design groups of bearings (ball bearings, needle bearings, versatile joint bearings, spherical roller bearings, bevel bearings and swivel bearings).

The enterprise permanently updates about 5-6 percent of its products every year.

Modern agricultural machinery is the leading machine building sector, allowing production of actually all required machines and equipment for the plant growing and animal farming sectors of the agro-industrial complex.

Enterprises of this sector manufacture mostly tractors and agricultural machines. The leading among them are the Minsk Engine Plant, Tractor Works, “Gomselmash” (agricultural machines producer), and “Bobruyskselmash” (agricultural machines producer). A significant share of the sector belongs to the RUE “Minsk Gear Plant”, OJSC “Mozyr Machine-building Plant”, OJSC “Brestselmash” (agricultural machines producer), OJSC “Lidselmash” (agricultural machines producer), etc. This sector includes over 40 enterprises.

The Minsk Tractor Works (PA “MTZ”) is the leading manufacturer of wheeled tractors in the CIS countries. The production potential of the enterprise is sufficient to meet the needs in the above machinery not only of Belarus, but also of the Russian Federation, CIS and other countries. The range of tractors “Belarus” includes three families: small-size machines, universal row-crop tractors and tractors of general use. As a result, the enterprise products cover the entire range of potential required wheeled tractors, both in agriculture and in the transport sector. Besides, the enterprise has developed quite new types of machines. They include: a range of forestry machinery covering the entire technological cycle of timber making; a range of machines for underground mines; universal tractor undercarriage, communal machines and loaders installed on “Belarus” tractors. Technical indicators of these products are at the level of foreign models.

Products of the Minsk Tractor Works make 7-8 percent of the global tractor supplies. They are well-known in over 100 countries of the world.

The Minsk Engine Plant (UE “MMZ”) is one of the largest manufacturers of diesel engines (over 100 modifications). The enterprise specialises in manufacture of 4- and 6-cylinder diesel engines rated from 57 to 136 hp, and from 130 to 270 hp, respectively (their share in the enterprise output is 89 percent). The work has been started to develop 6-cylinder diesel engine rated up to 350 hp. Over half of the manufactured engines (60 percent) are sold in the domestic market. All products are certified according to international standard requirements and are the best products of their class manufactured in CIS countries.

Diesel engines produced by the enterprise are competitive in the world markets, have good performance characteristics, economical, and provide a simple access to units and assemblies. The products (separate units or parts of machines) are exported to more than 70 countries.

The UE “MMZ” expands the domain of use of engines and increases their power ratings, installing engines on diesel generators, trucks, buses, etc. The work will be continued to design diesel engines of high technological levels meeting environmental requirements of the international standards EURO-2, EURO-3 and EURO-4. Additional service centres will be set up to service its diesel engines.

The Production Amalgamation “Gomselmash” is the largest manufacturer of grain and fodder harvesters in CIS countries. It has organised guarantee service centres in Belarus and in other countries, including shops for restoration of parts and units of harvesters, and warehouses.

In 2005, the PA “Gomselmash” will continue to manufacture grain and fodder harvesters for the agro-industrial complex of Belarus and for other CIS countries. The work will be continued to design sets of machines based on a versatile energy facility, manufacture of grain machinery KZR-10, and fodder harvesters KZS-7 with traditional outfit. The work is under way to promote the products to other countries, besides CIS (China, Argentina, and Brazil).

Light industry is one of the most important sectors of the industrial complex. It includes 500 enterprises manufacturing 6.6 percent of the total industrial output and about 40 percent of consumer goods. The largest enterprises of the sector, manufacturing about 80 percent of the products, are part of the Concern “Bellegprom” (Belarusian light industry concern).

The Concern “Bellegprom” is a multi-sectoral production complex of the country, including textile, knitting, sewing, leather, footwear, fur and textile and haberdashery sub-sectors. Its enterprises also manufacture artificial and knitted fur, china and faineance tableware, and other products. Out of over 100 enterprises, 80 percent are nongovernmental and 55 percent are joint-stock companies.

In 2005, the enterprises of this sector will create and manufacture technologies required for the production of new types of yarn so as to make maximum use of domestic raw flax; textile and knitted materials using new chemical threads and fibres, modification of viscous and multi-filament polyester threads of the latest fashion; develop and introduce technologies for the production of footwear with removable vamps.

To substitute imported cotton and wool fibres, the work will be continued to introduce technologies for manufacture of textile and knitting materials using textile raw materials with improved hygienic properties; they will be produced by enterprises of the national chemical enterprises. It is projected to make broad use of new chemical fibres and threads.

Also, the light industry plans to organise a range of measures for technological, technical, organisational and information development of the enterprises. The main lines for the development are: increase of the technical level of production; development of the marketing activities and advertising; restructuring and organisation of joint ventures.

The main problem in trade with West European countries is the use of quotas for the supply of Belarusian textile items, although traditionally such items are in demand in 15 countries of the European Union. These articles include cotton fabrics, trousers, overcoats, jackets, outer garment, blouses, underwear, bed linen, sport suits, and flax fabrics. Currently, Belarus makes a gradual reduction of the customs tariffs on import of textile from EU and does not apply antidumping measures in relation to textile products from European Union countries. However, the issue of quota cancellation has not been resolved since the European Union Commission relates this issue to political demands.

Electronics and Instrument Making

The industrial capacity of science-intensive machine-building sectors, including radio-electronics, optical and mechanical sector and instrument making, represents an integrated complex of production enterprises and of scientific and design organisations. These sub-sectors have retained their production at the world technological level. New competitive production facilities have been developed, in particular, manufacture of integrated submicron microcircuits at the SPA “Integral”.

The joint programmes implemented with Russia include development of optico-mechanical and instrumentation equipment for super-large integrated circuits with topological elements 0.5-0.25 mm, as well as a range of modern optical equipment using principles of controlled topology for manufacture of optico-mechanical and optoelectronic products of the new generation. Qualitative update of technologies and of the currently used equipment allows a constant increase of competitiveness of the sectors and their export potential.

Reconstruction of machine building sectors has been reflected in the development of the electronic and instrumentation sectors through modernisation of production facilities used to manufacture a broad range of consumer devices, processing equipment for agrarian-industrial complex, farming units, construction mechanisms, passenger and cargo lifts.

Besides products designed for production use, the Republic of Belarus is one of the largest producers of some types of consumer goods. The TV sets “Horizont” and “Vityaz”, as well as refrigerators “Atlant” are well known in other countries.

Currently, the country implements a number of state and scientific-technical programmes for the development and production of new production and technical items and consumer goods that are in demand. These programmes include the Presidential Programme “Consumer Electronics”, the National programme for the development of export for 2002-2005, the State programme for substitution of import for 2001-2005, the State programme for the development and increasing efficiency of the microelectronics industry of the Republic of Belarus for 2001-2010, the programmes “Belarusian Automobile, Tractors and Harvesters Building”, “Radio-electronics, Telecommunication and Instrument Building”, “Belarusian Medical equipment”, etc.

Communication and Telecommunication

The current situation in the communication network in the Republic of Belarus can be characterised by high rates of development and introduction of new technologies (fibre and optical technologies with spectral compaction, high-speed access to Internet, digital mobile communications, etc.), new services, and a dynamic growth of output indicators. Today, the country has modern digital top-level communication networks (international and long-distance networks).

Fibre optical communication lines have been laid to 98 district population centres of the country. At the same time, long-distance primary communication lines have been updated by using equipment for divided band transmission (DWDM). The use of such technology has made it possible to radically increase the capacity of long-distance communication lines needed for future development of all networks and communication services.

Equipment of the transmission system with synchronous digital devices is used not only in primary zonal networks, but also in town telephone networks in all regional centres of the country.

The work has been continued to organise workplaces for Internet access in the district centres of the country. In 2004, joint use centres organised 168 Internet points, of which 76 workplaces were started at such centres where access had not been provided before.

Permanently growing demand for communication services dictated the growth of investment activities. In 2004, digital automatic telephone exchanges were put into operation, and the existing electronic automatic telephone exchanges were expanded. There was a growth in the number of telephone sets, including phones also used by population.

The cellular communication networks were developing rapidly, using GMS standards. The total number of clients of mobile communications exceeded 2.5 millions.

In 2004, the JV “Mobile Digital Communications Ltd.” (MDC) and the “Mobile TeleSystems” (MTS) continued the development of the GSM communication networks. Mobile communication operators MDC and MTS have covered the area of residence of over 90 percent and 80 percent of urban population, respectively.

On 5 November 2004, the Minsk City Executive Committee registered the CJSC “Belarusian Telecommunication Network” (BeST), which is the third GMS mobile operator in the country.

During 2004, 17 radio broadcast and 10 television transmitters were installed and commissioned. Twenty-six TV transmitters and 4 lamp radio transmitters were replaced by semiconductor transmitters; 8 TV transmitters were updated.

Implementation of the State Informatisation Programme of the Republic of Belarus for 2003-2005 and till 2010 will help develop a single (integrated) information space in the country as one of stages of transition to information society, thereby creating conditions for effective functioning of the national economy, state and local governing, rights for free search, transmission and dissemination of information about the state of economic and social development of the society.

Transport and Transportation Lines

The Republic of Belarus is a connecting link between East and West. The shortest railways and main motor roads, connecting countries of Western Europe with CIS countries, as well as Southern and Central Europe with north-western regions of Russia and Scandinavia pass through the country. The country is crossed by the shortest way between central regions of Russia and Kaliningrad Oblast.

Railway transport. Today, the length of main railways of the country is over 5,500 km. The territory of the country is crossed from southeast to northwest by the main railway Gomel – Bobruysk – Minsk – Molodechno and further on to Vilnius. It connects, in the shortest line, large industrial centres of Ukraine with the Baltic States. Of significant importance for communications between north-western regions of Russia and St. Petersburg with Ukraine and Volga regions is the motor road going through Gomel – Mogilev – Orsha – Vitebsk. The territories of the Brest and Grodno Oblasts are crossed by the line Luninets – Baranovichi – Lida, which gives access from western regions of Ukraine to the Baltic States.

One of the most important lines in the operation of the Belarusian railways in 2005 will be further continuation of work within the project of systems of automatic identification of the rolling stock (SAIRS). This system allows a fuller and more precise and rapid identification of the location and time of passage of any rolling units equipped with sensors.

It is planned to organise traffic of passenger trains at the speed up to 160 km/h along the section Brest-Minsk-Osinovka, which an important link of the transport corridor No. 2 Berlin-Warsaw-Minsk-Moscow.

The Belarusian railways actively cooperate with international transport organisations, such as the Council on railway transport of CIS and Baltic States, the Organisation for Cooperation of Railways, the International Union of Railways and the Forum Train Europe.

Airlines. The largest national airport of Belarus is Minsk airport. Other airports include Minsk-1, Gomel, Brest, Grodno, Vitebsk and Mogilev airports. The Belarusian National Air Company “Belavia” is a member of the International Air Transport Association (IATA). It carries about 90 percent of all passenger transportation; makes regular flights over 20 airlines to Berlin, Frankfurt, Warsaw, Rome, Vienna, Stockholm, Istanbul, Prague, London, Tel Aviv, Larnaka, Shannon, Hurghada, Moscow, Tashkent, Kiev, Yerevan, Baku, etc. This airline company has an extensive programme of chartered flights in summer time to Bulgaria, Greece, Spain, Italy, and Turkey. It also has agency agreements on sale of air tickets for its flights with over 30 airlines of the world.

Automobile transport and motor roads. Belarus has created a branched network of motor roads allowing the year-round communication with practically all populated centres. The length of general-use road network is over 80,000 km. The highway M1/E30 Brest – Minsk – Russian border (592 km) is the continuation of the European highway Cork – London – Berlin – Warsaw. This is an essential transport link connecting countries of Western Europe with Russia and Asian states. The highway Kaliningrad – Kaunas – Vilnius – Minsk – Gomel crosses Belarus from northwest to southeast, providing for transportation of cargos to the largest seaports (Kaliningrad, Klaipeda, Ilyichevsk, and Odessa). This large motor road, leading from St. Petersburg to Odessa through Vitebsk, Orsha, Mogilev and Gomel, also connects the north-western region of Russia and, through it, Scandinavian countries with Ukraine and ports of the Black Sea. The important route Minsk – Grodno – Gdansk is the shortest communication line between countries of the northern part of Western Europe through the seaport Gdansk in Poland with Belarus, Russia and Ukraine.

Automobile transport is the most flexible element of the transport complex. The commercial cargo transportation sector currently includes over 21,000 business entities. The bus routes continue to develop. As of the beginning of 2005, this network included over 5,000 bus routes. Of this number, over 4,000 routes are services by the organisations of the Ministry of Transport and of the City of Minsk.

The issue of update of the rolling stock is very important to ensure further growth of carriage and development the route network. The rate of update of the bust fleet in 2004 made 5.8 percent for the entire country, and 7 percent for the system of the Ministry of Transport.

To provide services to vehicle owners for state technical inspection, there are 128 vehicle diagnostic centres of different types of ownership; also, 6 mobile diagnostic centres have been put into operation.

Pipeline transport. The territory of Belarus is crossed by a branched network of main oil and gas pipelines. The oil pipelines include powerful and high capacity systems: “Druzhba” (Kuybyshev – Unecha – Mozyr – Brest, Unecha – Polotsk, Mozyr – Brody – Uzhgorod, Polotsk – Ventspils); and Surgut – Polotsk. The oil pipeline “Druzhba” transports crude oil to Polotsk, Mozyr and Majeikai Oil Refineries. This oil pipeline includes main oil pipelines systems Unecha – Polotsk, Polotsk – Ventspils, Polotsk – Birjai – Majeikai having a the complete technological cycle. Gas transit is organised by the system of long-distance gas pipelines: Torzhok – Minsk – Ivatsevichi, Ivatsevichi – Dolina, Ivatsevichi – Slonim – Grodno, Minsk – Vilnius, Minsk – Gomel, Kobrin – Brest –Warsaw, Yamal – Europe, Dashava – Minsk, Ivatsevichi – Vilnius – Riga.

Significant investments are required for the development of material and technical facilities of the transport system in the Republic of Belarus. More active investment activities in the field of transport and road facilities will be continued within the programmes approved by the Government of the Republic of Belarus, such modernisation of the road section Brest – Minsk – the border of the Russian Federation. Bypass roads are constructed around towns; common automobile roads are constructed, reconstructed, repaired and maintained.

A range of measures is undertaken in the Republic of Belarus to minimise harmful environmental impacts of transport, including the development of low-toxicity transport facilities in the towns, improvement of transport infrastructure in towns, supervision over technical condition of transport facilities, improvement of the design of transport facilities that are manufactured, and production and use of good quality motor fuel.

Fuel and Energy Complex

The fuel and energy complex (FEC) is an essential structural component of the national economy of Belarus which ensures stable performance of the economy and includes systems of mining, transportation, storage, production and distribution of all types of energy resources: gas, oil and its products, solid fuel, electricity and heat energy.

The Republic of Belarus does not have significant reserves of fuel and energy resource. Import of energy resources to Belarus makes 85 percent of their total demand, while annual costs related to energy supply to users make about 15 percent of GDP.

Organisation of import of energy resources in the most efficient way and increasing of its efficiency accompanied by diversification of energy resources represents a natural demand and is one of the main conditions for the economic development of Belarus.

Organisational and technical energy-saving actions taken at all stages of production, transportation and use of energy resources have allowed stabilisation of the use of energy resources in the Republic of Belarus and a growth of GDP without actual increase in the use of energy resources.

Development of the sectors that are part of the fuel and energy complex takes place according to the main lines of the long-term energy policy of the Republic of Belarus which includes such important priorities as stable supply to the national economy and population of the country of gas, energy and oil products at prices and tariffs that ensure competitiveness of products of the real sector of the national economy both within the country and in foreign markets; further increase of efficient use of energy resources as means for reduction of energy-related costs by the society.

The fuel and energy complex has the task to decrease the dependence of the national economy on risks related to supply of energy resources. At the same time, the task to involve as much as possible internal fuels, non-traditional and renewable energy resources into the fuel and energy complex of the country is also on the agenda.

Electricity generation sector is the nucleus of the fuel and energy complex of the republic. This is one of the leading sectors of the economy, with traditionally high technological and engineering potential, ensuring dynamic development of different spheres of the economy and increase of the standard of living of the people.

The electricity sector of the country generates and dispenses, annually, over 30 billion kW*h of electricity and more than 34 million Gcal of heat. The total use of electricity in the country in 2004 was over 34.1 billion kW*h and the use of heat energy was over 72.5 million Gcal.

In the Republic of Belarus, the Targeted Programme has been approved by the Government to provide at least 25 percent of electricity and heat energy by using local fuel and alternative energy sources – over the period till 2012. It provides for the use of energy capacities of the rivers, energy of reduced gas at gas-distribution centres, secondary energy resources, communal combustible waste (garbage), biogas, and industrial, agricultural and other waste.

Fuel industry of Belarus includes enterprises extracting and processing oil and peat; among them are dominant huge oil refineries OJSC “Naftan” and OJSC “Mozyr Oil Refinery”.

In 2004, the volume of primary processing of carbon material at oil refineries in the country made about 18.4 million tons (117 percent against 2003).

Putting into operation in 2004 of the catalytic cracking installation at the OJSC “Mozyr Oil Refinery” and completion of the construction of the cracking complex at the OJSC “Naftan” has allowed 65-68 percent oil refining rates at the oil refining enterprises.

To improve refining of oil and produce high-quality light oil products according to EURO standards, modernisation of the Mozyr and Novopolotsk oil refineries in Belarus will be continued. One of the essential lines of reconstruction of these refineries is to meet the European permanently increasing requirements to quality of produced motor fuels.

It is planned to commission, in 2005, at the “Mozyr Oil Refinery” a section of iso-polymerisation LK-6U No. 1 to produce high-octane additive, i.e. isomerizate. After this production facility is included into the production scheme, the enterprise will be able to produce petrol meeting European standards. In 2006, it is planned to commission alkylation and benzene production facilities. This will help significantly improve quality of petrol. Opportunity for increasing of productivity of the catalytic cracking will be used by putting into operation of vacuum refining unit and a range for hydraulic desilverisation of petrol by catalytic cracking which is planed for 2006.

Peat fuel plays an important role in the provisioning of solid fuel to population and communal enterprises in the country. Peat extraction enterprises and peat briquette making enterprises are oriented towards processing of local raw materials, i.e. peat. They produce 2-2.5 million tons of peat every year; in the future, they plan to increase peat output to 3.3 million tons. Future substantial increase of peat use as fuels can be achieved only through re-equipment of the existing of new boilers and mini CPHP. It is planned to organise export of peat briquettes.

Chemical and Petrochemical Industry

Chemical and petrochemical complex is one of the largest in the structure of the national economy. At present, this complex produces over 12 percent of all industrial output and more than 25 percent of the total national export. Due to dynamic development of the production output, the share of this sector in the national economy is gradually increasing.

The largest enterprises of the sector, the RUE “PA Belaruskaliy”, OJSC “Grodno Azot”, OJSC “Gomel Chemical Plant”, produce a broad range of potassium, nitric and phosphorus fertilisers. Belarus is one of world largest producers and exporters of potassium fertilisers. The share of the RUE “PA Belaruskaliy” is over 14 percent of the world production output and about 16 percent of the world export of potassium fertilisers.

The Republic produces all basic types of chemical fibres and threads: polyamide (OJSC “Grodnokhimvolokno”), polyester (OJSC “Mogilevkhimvolokno” and RUE “SPO Khimvolokno”), polyacrylnitril (OJSC “Polymir”), viscous technical and textile (RUE “SPO Khimvolokno” and OJSC “Mogilev Plant of Synthetic Fibres”). The available production facilities allow reaching the production output of up to 300,000 tons a year.

Chemical and petrochemical industrial sectors of the Republic of Belarus implement investment projects for the reconstruction of production facilities aimed at boosting competitiveness of the manufactured products and increasing industrial output rates: RUE “PA Belaruskaliy” implements a programme for further development of the enterprise for 2002-2010; the OJSC “Mogilevkhimvolokno” implements the programme for further reorganisation of the enterprise for 2004-2007; the OJSC “Grodno Azot” implement the programme for further organisation for 2005-2010.

The OJSC “Gomel Chemical Plant” implements a project for reconstruction of the sulphuric acid shop, increasing its output from 500,000 tons to 700,000 tons of monohydrates per annum; the OJSC “Lakokraska” implement a sectoral programme for manufacture of paints and varnishes for the domestic enterprises for 2004-2010.

In 2004, the manufacture of the important types of chemical and petrochemical products (in kind) was increased: mineral fertilisers (calculated as 100 percent nutrients) by 9.1 percent, continued glass fibres and its products by 10.5 percent, and tyres by 15.7 percent.

Over 2001-2004, the pharmaceutical industry increased output and expanded the range of basic medical drugs. This included reconstruction and technical update of the basic shops at the RUE “Borisov Plant of Medical Preparations”; putting into operation of the new RUE “Grodno Plant of Medical Preparations” manufacturing drugs; organisation of the production facilities for manufacture of crystalline glucose at the RUPE “Ekzon-Glukoza”.

The microbiological industry implemented a project for realignment of the RUPE “Novopolotsk Plant of Protein and Vitamin Concentrates” to manufacture fodder protein and vitamin additive made from grain waste. The State scientific and technical programme “Industrial Biotechnologies”, completed in 2004, included the start of the organisation of the small-weight biotechnology output. Enterprises of the Concern “Belbiopharm” organised a pilot output of preparations for plant protection, biologically active food additives and ferment preparations.

The OJSC “Belshina” is one of the largest enterprises in Europe, which today produces 192 typical dimensions of tyres and exports over 160 typical dimensions of tyres for cars, trucks and large-capacity motor vehicles, buses, trolleybuses, lifting and transportation and road construction machines, tractors and agricultural machinery. The range of products manufactured by the enterprise is constantly updated in accordance with the market requirements.

Technical update of the enterprise manufacturing widely-used types of tyres and starting of the production of integrated metal-cord radial tyres for quarry machines at the OJSC “Beshina” will allow improvement competitiveness of its car tyres, manufacture of extra big-size tyres for quarry machines and a further increase of its export output.

A positive factor stimulating growth of chemical sector output is its export potential. Export-oriented products include potassium and nitric fertilisers, chemical fibres and threads, tyres, polyethylene, ammonia and others products. The chemical products share in the commodity structure of the country’s export constitutes about 16 percent.

The main tasks and priority lines for the development of the chemical and petrochemical industry include: improvement of economic indicators of the organisations, increasing of production output and export of products, improvement of product quality, creation and production of new types of polyester, polyamide and other technical fibres for textile industry and special use fibres; polymer materials used for construction industry, for replacing metal in automobile industry; new types of fertilisers; development and production of new generations of tyres for heavy trucks, agricultural machines; and high-speed light-weight car tyres.

The main line in the development of the sector is systematic introduction of new technologies oriented towards resource saving and environmental aspects of the production process, rational use of natural resources. Special attention will be paid to comprehensive processing of raw materials, replacement of reagents and materials and use of production waste.

Agro-industrial Complex

The agricultural sector of Belarus has a significant production capacity. The agricultural sector includes over 15 percent of fixed assets of the country; about 11 percent of employees working in the national economy. The added value of the agricultural sector in the gross domestic product makes about 9 percent.

The agro-industrial complex (AIC) of Belarus ranks first among CIS countries as regards per capita production of potato, vegetables, meat and milk.

The agro-industrial complex (AIC) of Belarus includes three spheres: agriculture (plant growing and animal farming), processing industry (food, meal and flour, fodder grass, primary processing of flax), and the service sphere (production and technical, land reclamation, land planning, scientific, agro-chemical, veterinarian, construction, trade and other types of services). Of priority importance for the development of the AIC of Belarus are animal farming, flax, grains, and sugar beet and vegetable oil sub-complexes. The agro-industrial complex of the country employs about 20 percent of the entire working population; it manufactures over 20 percent of the gross domestic product.

The year of 2004 was marked, in the agricultural sector, by the reformation of the entire agro-industrial complex. Over 1885 agricultural organisations were reorganised by the start of 2005. Collective and state farms were transformed into entities with market forms of economy.

Agriculture is the main component of the AIC. The rates of growth of agricultural output in all categories were, in 2004, at 112.9 percent (in comparable prices). It is predicted that in 2005 the gross agricultural production in all categories of enterprises will increase by 8-9.5 percent.

In 2004, the food industry of the country increased its output by 14.2 percent and the output of food products by 13.3 percent.

The basis for further development of the agrarian sector is the development of effective, competitive and sustainable production of agricultural raw products and processed products so as to meet the demand of the domestic market and increase export.

This will be facilitated by the implementation of the State programme of revival and development of rural areas for 2005-2010, which stipulates a range of measures for the development of the agrarian production sector, and rural social facilities.

Special attention will be paid to further increase of efficient use of land resources, optimisation of the plant growing structure and concentration of animal farming production facilities, development of private farming units and households, and improvement of technical and technological equipment of production units.

Forestry and Woodworking

The forestry complex includes forestry and timber, woodworking and pulp and paper industry.

The Republic of Belarus has a significant potential in the state forestry reserves: total reserves of wood exceed 1.3 billion cubic metres. In 2003, 15.5 million cubic metres of merchandise timber were produced. At present, demand of the domestic market is almost completely met through the use of local timber materials. About 1.8 million cubic metres of merchandise timber were exported, including, basically, small merchandise timber that is not in demand in the country.

The production potential of enterprises working in forestry, woodworking and wood pulp and paper industry allows meeting the demands of the domestic consumer market for all products produced in this sector, since the production output of these enterprises is much higher than the demands of the country. About 50 percent of the products in this sector are exported.

The woodworking sector is dominant in the structure of this industry. Its share is 64 percent of the total production output. It is followed by the wood pulp and paper – 19 percent, timber production – 16 percent and wood and chemical industry – 1 percent. The woodworking sector is dominated by the manufacture of furniture – 64 percent.

The Concern “Bellesbumprom” (including forestry and paper industries) produces 50 percent of the industry’s products, including 46 percent of furniture, 65 percent of wood fibre boards, 92 percent of paper and cardboard, 39 percent of commercial timber and practically the entire volume of carton transport products, plywood, woodchip plates, wallpaper, and matches.

The largest manufacturers in the industry are closed joint-stock companies “Pinskdrev” (manufacture of furniture, plywood, matches, particle boards), “Molodechnomebel” and “Bobruyskmebel” (furniture), the open joint-stock companies “Gomeldrev” (manufacture of furniture, plywood, matches), “Gomeloboi” and “Belarusian Oboi” (wall paper), “Mozyrdrev” (manufacture of furniture, particle boards)), “FanDOK” (manufacture of furniture, plywood), “Ivatsevichidrev” (manufacture of furniture, particle boards), “Mostodrev” (manufacture of furniture, plywood, particle boards), and “Borisovdrev” (manufacture of plywood, matches, fibre wood boards).

In 2004, the total worth of exported products was 825 million US dollars. The exported wooden products from Belarus in dollar equivalent predominantly include furniture (34 percent) and saw timber (20 percent).

The wood pulp and paper industry is the weakest link of the forestry industrial complex of Belarus. In 2004, this sector used only 270,000 cubic metres of raw timber, or less than 2 percent of the total amount of produced timber.

The strategic task for the development of the forestry complex of the Republic of Belarus is further increase of timber processing efficiency based on the priority development of production facilities for chemical and mechanical processing of raw timber and waste, as well as export-oriented and import-substituting production facilities based on new and high technologies.

To ensure rational and comprehensive use of timber resources and increase competitiveness of the enterprises in the forestry, woodworking and wood pulp and paper industry, it is envisaged to implement in the country the following investment projects, in 2005-2010:

Completion of the construction of the second stage of the wood pulp enterprise in OJSC “Svetlogorsk Wood Pulp and Cardboard Enterprise”;

Construction of the plant for the manufacture of newsprint in the town of Shklov; and

Organisation of production of wood chip plates of improved quality in the OJSC “Vitebskdrev”.

Science and New Technologies

The Republic of Belarus has a significant intellectual and scientific-technical potential, which is an essential factor for sustainable social and economic development of the country, higher competitiveness of the national economy, and implementation of technical update of the real economic sector on the basis of innovative and high technologies.

The country has more than 300 scientific organisations, of which over 90 percent are state-owned. The National Academy of Sciences of Belarus includes over 90 scientific research and developments organisations with 11,000. Traditionally, research and developments in technical sciences are predominant in the country.

The scientific-technical potential has become rather stable in the recent years: national scientific budget remains at a permanent level, at about 3 percent; the material and technical facilities of the scientific sector at 10 percent of the budget; the number of personnel engaged in research and development makes about 30,000 persons.

The predicted indicator of science intensity in the GDP, as specified in the Programme of Social and Economic Development of the Republic of Belarus for 2005, makes 1.8 percent, i.e. in 2005 the share of science-related expenditures should be brought to 1.8 percent of GDP, which will allow 1.9-2.0-fold increase of domestic expenditures for research and development.

A broad range of scientific research facilitates a rapid growth of domestic production and winning of global markets. Advanced developments by Belarusian scientists in the field of laser and plasma technologies, new materials with specific properties (nanoscale technologies), microelectronics, informatics, computer software, instrument making, medical equipment, biotechnologies, production of medical preparations, agricultural chemicals, etc., have been widely recognised in other countries.

Last year, about 400 advanced production technologies have been manufactured in the country, involving 140 organisations. According to statistical data, the industrial sectors, higher educational institutions, science and scientific services include over 700 enterprises that use about 14,000 advanced domestic technologies (of which 70 percent have been introduced in the last decade). However, in the recent three years the share of new products in the total industrial output has been only 1 percent (up to 25 percent in the developed countries) and the share of certified products was 55 percent. Only 8 percent of the technologies manufactured in Belarus in the recent years are considered as innovative in other countries, and only 2 percent are considered as principally new technologies.

Technological changes that ensure technological advancement of the country’s production facilities and increased competitiveness of their products take place in the national economy on the regular basis. Free economic zones are organised, a park of high technologies is being developed, about 300 small enterprises specialise in new and high technologies, technological parks and about 50 centres for entrepreneurial support operate in the country.

International scientific and technical cooperation is an integral part of the state scientific and technological policy. The Republic of Belarus has made a number of international agreements and treaties on cooperation in the field of science and technology. At present, the country has made and implements over 40 international treaties. Traditionally, the main partners of the Republic of Belarus are the Russian Federation and other CIS countries. The Republic of Belarus has scientific cooperation with other countries such as Germany, USA, Poland, France, India, RSA, etc.