World Bank2012-03-192012-03-192010-06-25https://hdl.handle.net/10986/2908This note attempts to analyze and tentatively answer these questions by focusing on the drivers of growth and productivity, labor markets and enterprise restructuring, as well as the state system of enterprise support, which is key to understanding the interplay between the state and the economy in Belarus. The period of analysis covers 2004-08 with appropriate references to the previous periods and comparisons with Russia and/or other Commonwealth of Independent States (CIS) countries. The final section explores the Belarus's industrial performance in the period of the global crisis (late 2008-09) and reviews the government's policies that have been largely responsible for a relatively mild effect of the crisis on economic dynamics in the country. The analysis is based on the official statistics provided to the team by the National Statistics Committee (Belstat), National Bank, and various ministries, as well as statistics from other national and international statistical sources. In addition, the analysis benefited from the data provided by various enterprise surveys undertaken by the Research Institute by the Ministry of Economy (RIME) and from two sector case studies (in machinery and dairy sub-sectors). Belarus has weathered the crisis so far better than most of its neighbors, in part due to the government policies to boost domestic demand in a predominantly state-owned and controlled economy. This was achieved at a considerable macroeconomic cost. The country's ability to sustain possible future shocks declined, and macroeconomic risks increased. The crisis has further exposed risks associated with the Government of Belarus (GOB) practice of heavy reliance on administratively set targets for large and medium-size enterprises, especially targets for output and average wage growth.CC BY 3.0 IGOACCOUNTINGADMINISTRATIVE CONTROLSADVERSE EFFECTAGRICULTURAL PRODUCEAGRICULTUREAPPARELAVAILABILITY OF BANK CREDITAVERAGE PRICEAVERAGE PRICESBANK LOANSBARRIERS TO GROWTHBENEFICIARIESBILATERAL TRADEBUSINESS ENVIRONMENTCAPITAL GOODSCHANGES IN TRADECOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGESCOMPETITIVE POSITIONCOMPETITIVE PRESSURESCOMPETITIVENESSCONSUMER GOODSCOST EFFECTIVENESSCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDEVELOPING COUNTRIESDOMESTIC DEMANDDOMESTIC MARKETDOMESTIC MARKETSDURABLEDURABLE GOODSECONOMIC COOPERATIONECONOMIC CRISISECONOMIC LIBERALIZATIONECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIC POLICYECONOMIC RELATIONSECONOMIC STRUCTUREECONOMIES OF SCALEEMERGING MARKETEQUIPMENTEXCHANGE RATEEXCHANGE RATE POLICYEXPORT DIVERSIFICATIONEXPORT DYNAMICSEXPORT GROWTHEXPORT MARKETEXPORT MARKETSEXPORT OPPORTUNITIESEXPORT PERFORMANCEEXPORT PRICEEXPORT PRICESEXPORT PROSPECTSEXPORT VOLUMESEXPORTEREXPORTERSEXTERNAL FINANCEEXTERNAL MARKETSEXTERNAL SHOCKSEXTERNALITIESFACTOR MARKETSFACTOR PRICEFINANCIAL SYSTEMFOOD EXPORTSFOOD INDUSTRYFOREIGN BANKFOREIGN COMPETITORSFOREIGN DIRECT INVESTMENTSFOREIGN EXCHANGEFOREIGN FIRMSFOREIGN MARKETFOREIGN MARKETSGDPGDP PER CAPITAGLOBAL ECONOMYGLOBAL EXPORTSGLOBAL INTEGRATIONGLOBAL MARKETGLOBAL TRADEGOVERNMENT INTERVENTIONSGOVERNMENT REGULATIONSGOVERNMENT SUPPORTGROSS DOMESTIC PRODUCTHOLDINGHOST ECONOMYIMPACT OF TRADEIMPORT RESTRICTIONSINCOMEINCOME GROWTHINDUSTRIAL PRODUCTSINDUSTRIAL SECTORINDUSTRY TRADEINFORMATION ASYMMETRYINTANGIBLEINTELLECTUAL PROPERTYINTERMEDIATE GOODSINTERNATIONAL BORROWINGINTERNATIONAL DEVELOPMENTINTERNATIONAL MARKETSINTERNATIONAL TRADEINVESTMENT CLIMATEKNOWLEDGE ECONOMYLEGAL FRAMEWORKMACROECONOMIC STABILITYMACROECONOMIC VOLATILITYMARKET ACCESSMARKET COMPETITIONMARKET CONCENTRATIONMARKET CONDITIONSMARKET DEMANDMARKET DIVERSIFICATIONMARKET PARTICIPANTSMARKET PRICESMARKET SEGMENTSMARKET SHAREMARKET SHARESMARKET SIZEMARKET TRADINGMARKET TRENDSMARKETINGMERCHANDISEMERCHANDISE EXPORTSMERCHANDISE IMPORTSMERCHANDISE TRADEMETAL PRODUCTSMUTUAL TRADENATIONAL BANKNATURAL RESOURCESNEGATIVE SHOCKOIL PRICEOPEN ECONOMYOPPORTUNITY SETPATTERNS OF TRADEPREFERENTIAL MARKET ACCESSPRICE ADVANTAGESPRICE CONTROLSPRICE INDEXPRICE LEVELPRICE MOVEMENTSPRICE REGULATIONPRIMARY GOODSPRODUCT MARKETSPRODUCT QUALITYPRODUCTIVITYPRODUCTIVITY GROWTHPROFIT MARGINSPROPERTY RIGHTSPURCHASINGPURCHASING POWERREAL GDPRESERVESRETAILRETAIL PRICESRISK SHARINGSALESALESSALES MARGINSSERVICES MARKETSHARE OF INVESTMENTSOCIAL NETWORKSSOFT BUDGET CONSTRAINTSPECIALIZATIONSUBSTITUTESUPPLIERSSUPPLY CHAINSTARIFF BARRIERSTAXTAX POLICYTAXATIONTECHNOLOGY TRANSFERTERMS OF TRADETOTAL SALESTRADE BALANCETRADE CREDITTRADE DATATRADE DEFICITTRADE DISPUTESTRADE FLOWSTRADE INTEGRATIONTRADE OPENNESSTRADE PARTNERSTRADE PATTERNTRADE PATTERNSTRADE PERFORMANCETRADE POLICYVALUE ADDEDVOLATILITYWAGESWORLD MARKETWORLD MARKETSWORLD PRICESWORLD TRADEWTOWorld Bank10.1596/2908