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WEEKLY DIGEST OF BELARUSIAN NEWS

April 21, 2005

NATIONAL NEWS

President of Belarus Addressed the Nation and the Parliament 

Belarus is a sovereign state with an independent, strong and truly democratic policy, president of Belarus Alexander Lukashenko stated on April 19 when delivering his Annual Message to the Belarusian people and the National Assembly. 

The Message was divided into several topics: economy, implementation of new technologies, the people and the land, social policy and healthcare, culture, government, security, foreign policy, Second World War and the Great Victory, ideology of patriotism.

Belarus nowadays is in a completely new stage of development. Positive results reached in different areas will allow Belarus to provide steady movement ahead, said the president. 

Time passed, when the nation was on its knees, when miserable salaries had been eaten away by hyperinflation, and the society was shaken by deficit of goods, lack of medicines, permanent stagnation of industry and almost total unemployment.

The president shared the recent UN data: only about 2% of the Belarusian population lives for the minimum of $2 per day or $60 per month. These are good figures even if compared with economically developed countries.

Last fall’s referendum clearly showed that the Belarusians realize that the government protects their interests and addresses their urgent issues, noted the president. 

It is expected that the GDP production in Belarus in the next five years will grow by 44% instead of 35% forecasted 5 years ago. The industrial production will increase by 50% in comparison with earlier projected 28%. The growth of the agricultural products’ output is envisaged at the level of 35% against 22%. Capital investments will grow by 75% against 60%. All this will let the level of the average wage reach the total amount of $250 by the end of 2005.

Alexander Lukashenko mentioned statements made by the United States that the Belarusian president supposedly has foreign accounts. “For three years now that they have been looking for the accounts. The more they throw stones at me the less the Belarusians believe them”. 

“It is possible that our independence is undesirable for some countries. However, we are not going to renounce it”. The West allocated considerable funds for the information pressure on Belarus. “We can counteract this only by telling the truth”. Those, who speak about the lack of democracy in Belarus, fail to ensure the democracy themselves. “The systematic violations at the presidential elections in the USA and referendums on the EU accession by new members testify to the fact”.

Belarus is interested in resuming a full-scale dialogue with the U.S. taking into account the development of trade relations, but without political pressure from the U.S. 

“We will not accept political pressure and threats to use sanctions. We hope common sense will prevail,” Lukashenko said.

Belarusian multi-vector foreign policy envisages strengthening of contacts with all countries of the world. “In 2004 the trade turnover with Asian and African countries rose by 50% and for the first time exceeded $1 billion. We reached a new cooperation level with China, India, Iran, Persian Gulf countries and a number of other states,” the president said.

Belarus will continue supporting the enhancement of the United Nations’ role in settling international problems. At the same time, Belarus is against attempts to politicize the UN. “Negative political tendencies become apparent in the activity of the OSCE. Belarus comes out for reforming this institution together with Russia, Kazakhstan and some other countries,” president Lukashenko said.

“Our foreign policy can be characterized as adequate and consistent. This is the position of a country that knows what it is worth and respects itself and others,” the president said.

The president is convinced that it is necessary to develop tourism industry. “Belarus is a unique country with a rich natural potential”. Its territory includes over 15,000 objects, which have historical, cultural and architectural value. “We should arouse the interest of thousands of foreigners to visit our country in order to see all this beauty. We should create a relevant system which would be able to invest the money of Belarusian people and foreigners into our economy”, Alexander Lukashenko considers.

The complete text of the Message can be found at the web site of National News Agency http://president.gov.by/rus/president/speech/2005/.

UN Resolution on Belarus Was Approved under Unprecedented US Pressure 

A resolution on human rights in Belarus at the 61st Committee on Human Rights was approved under unprecedented pressure from the USA on the members of the Committee, - said Head of information Department of the MFA of Belarus Ruslan Esin.

"It is obvious, that the US is trying to take revenge for its defeat at 59th session of the UN General Assembly, when the draft resolution on Belarus was denied by international community. Even under such conditions a lot of member-states of the Committee (30 of 53) did not support the initiative. Belarus has the same approaches: we are not accepting the resolution either in form or in contents. It does not have any legal effect and has recommendatory status", - stated Ruslan Esin. 

First Belarusian Space Satellite "BelKa" Will be Delivered into Orbit in December

First Belarusian space satellite "BelKa" will be delivered into the orbit of the Earth on December 5, 2005. Russian booster "Dnepr" will carry "BelKa" to the altitude of 510-515 km. The Belarusian satellite will be used for five years for geodesic, cartographic and meteorological purposes. 

There are only three satellites in the world of such kind. Two of them belong to the USA and one to Taiwan. According to technical data, "BelKa" will become one of the best in the world.

"BelKa" is a Belarusian space satellite for remote sensing of the surface of the Earth. It was designed by Russian Rocket and Space Corporation "Energia" on the base of universal space platform "Victoria" at the request of the National Academy of Sciences of Belarus. The satellite is being assembled in the Belarusian enterprise "Piling".

An estimated cost of the satellite is about 9 mln USD, which is dozens of times cheaper than the US analogues. It is expected that all expenses for the new spacecraft would be covered in the first six months of its exploitation. 

 

INTERNATIONAL COOPERATION

Belarus, FAO to Define Cooperation Areas in Minsk April 18-29 

Belarus and the Food and Agriculture Organization of the United Nations (FAO) are expected to define cooperation areas and instruments of support at the national and regional levels during a visit of David Sedik, Chief of the Economic Assistance Division with the FAO, to Minsk on April 18-29.

FAO experts are to meet with representatives of the Ministry of Foreign Affairs, Economy Ministry, Finance Ministry, Statistics Ministry, Agriculture Ministry, Forestry Ministry, Natural Resources Ministry, Chernobyl Committee and Institute of Agrarian Economy with the National Academy of Sciences. 

The visit is part of the preparation for Belarus accession to FAO, which may take place at the 33rd FAO Conference scheduled for December 2005.

Accession talks were launched in 1991, but practical moves were made only after membership fees were reduced for UN organizations. In May 2004 Belarus applied for membership in FAO.

IMF Mission to Support Bank Supervision in Belarus April 11-20

A mission of the International Monetary Fund (IMF) will work in Belarus on April 11-20 to provide technical support regarding an effective use of bank supervision instruments.

The mission is led by Head of Monetary and Credit Policy and Financial Systems Department with the IMF, Narain Aditya. The IMF officials are to meet with representatives of the NBB and Belarus commercial banks and the Economy Ministry. It is planned to discuss the organization of bank supervision in Belarus, prudential restriction of risks, including risks in the banking sector.

Since Belarus joined the IMF, it received two tranches under the structural adjustment facility of U.S. $98 million in August 1993 and $101.7 million in February 1995, and a $70 million tranche of the stand-by loan in September 1995. Subsequently, the IMF halted the extension of loans to Belarus due to the discrepancy between the government’s economic policy and the fund’s recommendations.

In early 2004 Belarus called off its request for stand-by loan negotiations. Belarus fully repaid its debt to the IMF as of February 1. 

 

BUSINESS AND ECONOMY

Belarus to Sign Protocol with WTO on Access to Its Markets in September 

Belarus is ready to sign a final protocol with the World Trade Organization (WTO) in September 2005 regarding the conditions of access to Belarusian markets. The final protocol will allow Belarus to start signing bilateral agreements with WTO members.

Belarus held another round of talks with the WTO and country-members in Geneva on April 14-17. This round of talks was focused on defining the parameters of Belarus commitments in agriculture support and competition and monopoly on the domestic market.

The draft memorandum was prepared and coordinated with the Russian Foreign Ministry. “The draft is being coordinated in Geneva by the Belarusian and Russian delegations to sign it as early as possible. Russia holds talks in Geneva simultaneously with the Belarusian delegation.

Next WTO Accession Group Meeting to Take Place May 24

The next meeting of the World Trade Organization (WTO) working group for Belarus accession is to take place in Geneva on May 24, Belarusian Foreign Minister Sergei Martynov said after a regular round of talks between Belarus and the WTO held on April 14-17.

“We hope we will soon start preparing the Report – the final document needed for Belarus to join the WTO,” Minister Martynov noted.

The final document is a summary of bilateral agreements with WTO member-states regarding Belarus’ market access commitments. “Belarus is ready to sign from 12 to 14 protocols with WTO members,” the minister said.

Belarus may reach an agreement with the WTO on a transitional period for this country to adapt to the new open market conditions for banking and insurance capital. “The talks are underway now, and I cannot make any comments yet,” Minister Martynov said.

Belarus' Third GSM Operator to Open Tender for Equipment Supplies

Belarus’ state-owned third mobile operator providing GSM standard services Belorusskaya Telekommunikatsionnaya Syet (Belarus Telecommunications Network) BeST has decided to open an international tender for supplies of equipment, software and services necessary to create a GSM 900/1800 network and started accepting bids. 

Bids are to be accepted until May 16. The cost of tender documentation has been set at U.S. $3,800. The bid is to include design, supply, assembly, setup and putting into operation of all components of equipment and software, consulting services within the first year of operation, personnel training and warranty service. Potential suppliers are to have a Belarusian certificate for the equipment supplied and service centers as of the supplies date. Also, bidders are to keep to BeST’s schedule, which says the first phase of the project should be launched by September 19, 2005. BeST is to pay for services in U.S. dollars. All bids are to be valid within three months of the date the tender is closed and have a $280,000 guarantee.

BeST received the state license for communications services on March 24, 2005 and launched a U.S. $200 million network development project for 2005-2008. A foreign investor, which will be defined after the tender, is supposed to finance the project.

German holding Siemens AG already expressed interest in participation in the tender.

CEO of EPAM Systems on Eastern European IT companies 

Mr. Dobkin, CEO of EPAM Systems (http://www.epam.com), was invited to represent Eastern European IT service providers at Gartner Outsourcing Summit 2005 (http://www.gartner.com/2_events/conferences/std8.jsp). During the panel discussion "Offshore Growth Accelerators and Inhibitors around the World" Mr. Dobkin as well as other panelists admitted that Indian providers definitely take the lead in the IT outsourcing market. Mr. Dobkin also presented the case of strong and dynamic growth of Eastern European IT companies both in service offering and quality over the last two years. The panel agreed that the IT service providers from Eastern Europe have a good opportunity for further growth and should be able to grab a visible share of the market in Europe due to the quality and geographical advantages. This can happen on condition that the governments of the Eastern European countries provide support similar to what India did for its companies around a decade ago.

CULTURE AND SOCIETY

International Organization for Migration Supports Belarusian Efforts in Fighting Illegal Migration and Human Trafficking

General Director of the International Organization for Migration (IOM) Brunson McKinley supported the Belarusian efforts in fighting illegal migration and human trafficking. Talking to reporters April 20 after the meeting with Belarusian foreign minister Sergei Martynov, Brunson McKinley focused on the prospects of bilateral cooperation.

“We would like to continue strengthening Belarus' role in fighting illegal migration and human trafficking”, the IOM head said. Brunson McKinley stressed the importance of interaction with other CIS countries and EU states while addressing these issues.


 

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