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Belarus


The FSU was responsible for importing 90 percent of its energy and 70 percent of raw materials.
             Even though the country has recently passed through several stages in its political and economic development it still retains many features of a planned economy. Belarus retains a small level of development of small and medium enterprises and an unreformed agriculture sector. The Government holds significant power to manage the factors of production and the power of making many economic decisions. .
             The mains sources of economic development are trade, services and the industrial division. In 2000, industrial production was estimated at 26.5 percent of GDP, agriculture at 11.6 percent, and services contributed 41.7 percent. Belarus exports large amounts of machinery, transport vehicles, chemical and petrochemical products, fibers, fertilizers and transport services. However, raw materials remain the main import, most coming from the Russian Federation, where the majority of foreign trade (approximately 60 percent) is concentrated.
             Over the past few years, macroeconomic stability has been an important issue for Belarus. Inflation reached 50 percent in 2001 and over 100 percent in 2000. The Government then took action and announced the unification of the exchange rate and adopted a market-based monetary policy. This helped the foreign exchange policy in the fall of 2000 and helped to improve the confidence in the economy and gave initial contact with International Financial Institutions.
             In the area of education, social services and health, the Government maintains an expensive input-based approach (World Bank). There are new designs in progress to help the social and health problems today. Poverty in recent years has been somewhat influenced by the political and economic impacts. The situation peaked in 1999 at 46.


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