WEEKLY DIGEST OF BELARUSIAN NEWS

WEEKLY DIGEST OF BELARUSIAN NEWS

September 21, 2004

NATIONAL NEWS

Dazhynki Harvesting Festival Held in Volkovysk

The traditional national harvesting festival and fair “Dazhynki” were held on September 18.

Belarusian President Alexander Lukashenko participated in "Dazhynki–2004", a festival which is hosted this year by the town of Volkovysk in Grodno region.

At the festival and fair the President had a meeting with reporters.

(You may find the typescript of the press conference at www.belta.by).

Majority of Belarusian voters abroad live in the USA, Germany, Russia and Poland

Belarusian citizens permanently living abroad and having the right to vote at the coming elections are mainly from the USA, Germany, Russia and Poland.

Voting stations for Belarusians permanently living in the US will be opened in the Embassy of Belarus in Washington, D.C. and Consulate General in New York.

INTERNATIONAL COOPERATION

Deputy Foreign Minister on Belarusian Agenda for 59th Session of the UN General Assembly

At the 59th session of the UN General Assembly a Belarusian delegation intends to pay significant attention to issues on enhancing the role of the UN Security Council as one of the mechanisms of maintaining international peace and stability, Deputy Minister of Foreign Affairs of Belarus Alexander Sychev stated at a press conference dedicated to the participation of the Belarusian delegation in the forthcoming UN General Assembly.

Belarus considers important to further promote forward of the initiative, which was earlier approved by the General Assembly, on forming a global system under the UN aegis of counteracting modern challenges and threats. Alexander Sychev expressed hope that comprehensive consideration of a report of the working group will become a basis for the contents of a new resolution of the General Assembly on the issue.

In the course of the session Belarus will pay considerable attention to such urgent problems of today as increased international terrorism. The position of Belarus is that the United Nations should play the main role of coordinating the process of the post-war development of Iraq.

Alexander Sychev noted that the Belarusian delegation is going to support the activity of the Counter-Terrorist Committee of the UN Security Council (CTC).

The delegation will also inform the world society about measures taken by the Belarusian government in the area of fighting against international terrorism.

Belarus is a participant to all 12 UN resolutions on fighting against terrorism. It is important to implement resolution 1540 of the Security Council on nonproliferation of weapons of mass destruction. Belarus considers that this will contribute to strengthening international mechanisms and regimes of nonproliferation.

The delegation will take part in discussion of issues on disarmament.

Belarus attaches great importance to the Treaty on Conventional Armed Forces in Europe which is regarded as a key element of the European security. At the UN session the Belarusian delegation will speak for earliest coming into force of the adapted treaty.

On Meeting of Belarusian Prime Minister with World Bank Vice President For Europe and Central Asian Region

Belarus and the World Bank have made another step on the way of developing new joint projects, Prime Minister of Belarus Sergei Sidorskiy stated at a meeting with World Bank Vice President for the Europe and Central Asian Region Shigeo Katsu. The talks took place on September 10 in Minsk.

Sergei Sidorskiy underscored that he respected greatly the work conducted by the bank in Belarus. Agreements with the bank are being implemented and there are prospects for implementing new joint projects, the head of government noted.

Shigeo Katsu mentioned the constructive cooperation between the World Bank and the Belarusian government. He thanked for the help rendered to the bank’s regional director for Belarus, Ukraine and Moldova Luca Barbone and introduced Paul Birmingham who is taking up this post. Shigeo Katsu has expressed confidence that the new regional director will continue the work on intensifying and extending the cooperation between the World Bank and Belarus.

BUSINESS AND ECONOMY

U.S. to Suspend Jackson-Vanik Amendment for Belarus for another Year

The U.S.’ Department of State confirmed that the suspension of the Jackson-Vanik amendment for one year for Belarus has been made, which means the extension of normal trade relations with Belarus.

“The U.S. Congress did not turn down U.S.’ President George Bush’s notification regarding the extension of the Jackson-Vanik amendment’s abrogation for one year, which he had sent to the Congress on June 3,” Government official said.

The suspension of the Jackson-Vanik amendment is automatic unless the Congress rejects the President’s notification. Belarus has enjoyed the suspension of the amendment since 1992.

According to the 1974 Trade Act, the Jackson-Vanik amendment denied normal trade relations to certain countries with non-market economies that restricted emigration rights.

The amendment is now imposed on all Former Soviet Union countries, except for the Baltic States, for which the amendment was cancelled in 1990, and Georgia and Kyrgyzstan.

In line with the amendment, normal trade relations, unrestricted loans and credit and investment guarantees of the U.S. Government may only be available to the countries that secure emigration rights.
In 2004 U.S. Representative Ron Paul submitted to the House of Representatives the bill on full abrogation of the Jackson-Vanik amendment for Belarus. However, the issue has not been decided yet. The cancellation of the amendment would give an impetus to the Belarus-US trade relations.

Belarus’ Prime Minister Sergei Sidorsky during his meeting with U.S. Ambassador to Belarus George Krol last November noted that the abrogation of the amendment would result in an improvement of trade relations.

Belarus’ exports to the U.S. rose by 76% in January-June 2004 to U.S. $64.967 million, while imports from the U.S. rose by 29.9% to $70.782 million.

U.S.’ capital ranks second in terms of foreign investments in Belarus following Russia. U.S.’ companies contributed $106.323 million in the charter capitals of 419 joint ventures and foreign companies as of January 1, 2004, up 10.75% on the year.

Belarusian Delegation to Participate In EurAsEC-Business America Congress

Belarusian governmental delegation is going to participate in the International Congress EurAsEC-Business America, which is to take place in Moscow’s International trade Center on September 21-22.

The Congress is timed to the meeting of the Interstate Eurasian Economic Community (EurAsEC) Council at the level of national governments.

Heads of economic ministries and agencies, governors and representatives of political and business circles will attend the congress. The Belarusian delegation includes representatives of the companies, whose investment projects were approved by the American side. The projects include the upgrade of Belarusian flax-processing companies.

It is expected, that there will be more than 300 leading international banks, funds, finance institutions and 500 companies taking part in the congress, which initiate projects in EurAsEC priority sectors, including innovation technologies, telecommunications, fuel and energy, industry, construction, tourism, finance and trade.
The Eurasian Economic Community was created in Astana on October 10, 2000. Currently the EurAsEC includes Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. Armenia, Moldova and Ukraine are observers with EurAsEC.

WB to Draft Country Econ Memorandum for Belarus in Feb-Mar 2005

The World Bank is to prepare the country economic memorandum for Belarus in February-March 2005, which is to include the analysis of Belarusian social and economic situation and foreign investments climate. The country economic memorandum is the bank’s key instrument to analyze the situation in the country. It is prepared every four or five years depending on the country’s development. The document defines problems and provides a range of recommendations.

Financial Foreign Investments Advisory Service (FFIAS) is to analyze Belarusian climate for foreign investors. FFIAS is an independent department with the WB and has got its own budget.

Belarus became WB member in July 1992. Since then, Belarus received $184.8 million in loans from the WB. Besides, the Bank provided $15 million of gratis aid from special funds aimed at financing environment projects, supporting low-income population, preserving biodiversity of forests and cutting the use of ozone-depleting substances.

On Growth of Belarusian GDP in January-August

Belarusian Gross Domestic Product (GDP) expanded by 10.7% in January-August 2004, the Belarusian Statistics and Analysis Ministry stated.

Industrial output increased by 15%, the output of agricultural produce grew by 10.3%.

Fixed capital investments grew by 20.8% as compared with January-August 2003 (the growth predicted for 2004 makes up by 19-20%).

The output of consumer goods increased by 13.4% in January-August, with output of foodstuffs increasing by 13.2%, non-food products by 14.4%. The growth of retail trade turnover totaled by 11.2% and services 13.2%.

Foreign trade, including services, grew by 30.2% in January-July 2004, with exports rising by 29.3% and imports 31%.

The country’s social and economic development forecast for this year figures GDP growth of 9%-10%. It had expanded 6.8% in 2003 and 4.7% in 2002.

Belarus Increases Industrial Output by 15% in 8 Months

Belarus increased industrial output by 15% to 30 trillion Belarussian rubles in January-August. Output grew by 1.7% in August compared with July.

Forecast growth is 9%-10% in 2004 and 8% in January-September. Industrial output rose by 6.8% in 2003.

(Exchange rate is $1 for 2,165 Belarusian rubles).

Interdepartmental Commission Extends Deadline for Filing Applications for Tender on Third GSM Operator till October 19

The interdepartmental commission extended the deadline for filing applications for the tender on the third GSM 900/1800MHz license till October 19.

At present 3 republican companies render mobile communications services. The joint venture limited company “Mobile digital communications” (Velcom) and the limited company “Mobile TeleSystems” work in the GSM 900/1800MHz standard, the joint venture limited company “BelSel” (Diallog) – in NMT-450 and IMT-450 standards (cdma2000). The amount of mobile communications subscribers has exceeded 1,85mln people. Velcom and MTS render services to 1,800,000 people and “BelSel” – to more than 70,000 people.

CULTURE AND SOCIETY

Deputy Education Minister of Belarus on Education System in Belarus

Belarusian Deputy Minister of Education Kazimir Farino believes that Belarus has one of the best education systems in the world.

He stated at the opening of the press conference of the Teacher of the Year contest, that the number of highest-qualification teachers in Belarus grows 5% to 7% annually. Every year local authorities allocate 40%-50% of funds from municipal and district budgets for the sphere of education.

Speaking about safety of Belarusian schools, Kazimir Farino informed that their preparedness for emergency situations is checked every year.

On International Fire Rescue Championship in Minsk

Participants from 19 countries will take part in the World Fire Rescue Championship in Minsk on September 23 – 26.

Teams from Belarus, Latvia, Lithuania, Estonia, Mongolia, China, Pakistan, Iran, Nepal, Ukraine, Russia, Uzbekistan, Azerbaijan, Germany, Czechia, Poland and Slovakia will participate in the Championship.

The Belarusian team is the defending World Champion in fire rescue sport. It won the first place in 2002.

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