ECONOMY
Despite a paucity of natural resources, Belarus enjoyed a relatively high level of prosperity during the Soviet era compared to other ex-Soviet republics. However, the last 12 years have brought continuous decline. The main agriculture crops are sugar beet, grain and potatoes; livestock breeding is also substantial. The manufacturing industry is focused on the production of agricultural machinery vehicles and chemicals, most of which have been exported in the past. Apart from a few oil and gas deposits, Belarus has no energy reserves and relies on imports, most of which come from the Russian Federation. Like other Soviet republics, Belarus suffered a sharp decline in output and a variety of other problems following the dissolution of the Soviet Union; this was then followed by a period of stabilization, which took hold during the mid-1990s as the government and people adjusted to new economic circumstances. A new currency, the Belarusian Rouble, was introduced at the beginning of 1995. The economy recorded GDP growth of 6.8 per cent in 2004, however, it still suffers from high inflation of about 28 per cent. Reluctance to implement measures recommended by the IMF, World Bank and the EBRD (which Belarus joined in 1992) has limited access to these sources of finance. The government has since been engaged in a tentative program of privatization. In 2002, 200 state-owned enterprises in the Minsk area were privatized; the government has (under Russian pressure) committed itself to selling major national enterprises.
Membership of the World Trade Organization is another government objective. Belarus’ trade is largely conducted with the countries of the former Soviet Union. In 2002, these accounted for two-thirds of Belarusian trade (nearly 80 per cent of that was with Russia). Most of the remaining trade was with the EU, USA and Japan. Belarus has been trying to develop its trade links with the Arab world, especially Iraq and the Syrian Arab Republic, with limited results.
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