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CONTENTS: FOUNDER: MODERNIZATION Council of Ministers of the Republic of Belarus MEMBERS: Alexei DAINEKO Ministry of Economy of the Republic of Belarus, Modernization: Ministry of Finance of the Republic of Belarus, Priorities and Essence Ministry of Foreign Affairs of the Republic of Belarus, Belarusian Telegraph Agency BelTA A country’s prosperity hinges on the pace of its economic modernization 4 EDITORIAL BOARD: Tatyana IVANYUK Mikhail Prime Minister of Belarus, MYASNIKOVICH Corresponding Member of the National Academy Learning of Sciences of Belarus (NASB), Doctor of Economics, from Mistakes Professor (Chairman of the Editorial Board) Total investment spent on the upgrade of Belarus’ wood processing industry Boris BATURA Chairman of the Minsk Oblast is estimated at €801.9 million 9 Executive Committee Olga BELYAVSKAYA Igor VOITOV Chairman of the State Committee for Science and Technology, Doctor of Technical Sciences, A New Lease on Life Professor Belarus is set to upgrade about 3,000 enterprises in 2013 13 Igor VOLOTOVSKY Academic Secretary of the Department of Biological Sciences, NASB, Doctor of Biology, Professor Dmitry ZHUK Director General of Belarusian Telegraph Agency BelTA Vladimir ZINOVSKY Chairman of the National Statistics Committee Alexander Director General of the NASB Powder Metallurgy ILYUSHCHENKO Association, NASB Corresponding Member, Doctor of Technical Sciences, Professor Yekaterina NECHAYEVA Viktor KAMENKOV Chairman of the Supreme Economic Court, Ingredients of Success Doctor of Law, Professor Belarusian companies can rival many world-famous producers 16 Dmitry KATERINICH Industry Minister IN THE SPOTLIGHT Sergei KILIN NASB сhief academic secretary, NASB Corresponding Member, Doctor of Physics and Mathematics, Tatyana POLEZHAI Professor Business Plan Nikolai LUZGIN First Deputy Chairman of the Board of the National for the Country Bank of the Republic of Belarus, Ph.D. in Economics Rational use of resources and modernization of enterprises are the major preconditions Sergei MASKEVICH Education Minister, for sustainable economic growth 24 Doctor of Physics and Mathematics, Professor Yekaterina MARKOVICH Anatoly MOROZEVICH Rector of the Academy of Public Administration under the aegis of the President of Belarus, Smart Construction Doctor of Technical Sciences, Professor Regulations were enacted in Belarus on 1 April to allow designing only energy-efficient housing 30 Alexander MOSHENSKY Director General of Santa Impex Brest LABOR MARKET Oleg PROLESKOVSKY Information Minister Striving for Balance Nikolai SNOPKOV Economy Minister Belarus is working to create civilized conditions for export and import of labor resources 34 Anatoly TOZIK Deputy Prime Minister, Ph.D. in History, Professor Andrei KHARKOVETS Finance Minister ©ȅDzǶǵǶǴǰDzǨǩǭdzǨǸǻǹǰ(&2120<2)%(/$586ª1R Registration certificate No. 346 of 23 April 2009 Vladimir SHIMOV Rector of the Belarusian State Economic University, by the Ministry of Information of the Republic of Belarus Doctor of Economics, Professor EDITOR-IN-CHIEF Tatyana VLASOVETS EDITORIAL BOARD: Dmitry ZHUK, Svetlana BALYSHEVA, Irina BUFETOVA, Yulia KOMAR BELTA photographers: Natalya ABLOZHEY, Alexander DIDEVICH, Gennady ZHINKOV, Nikolai PETROV, Viktor TOLOCHKO, Oleg FOINITSKY, Alexander KHITROV, Sergei KHOLODILIN QUESTIONS TO THE MINISTER TRANSPORT Mineral Wealth Tatyana IVANYUK Rational mining and investment in subsoil use Belarusian Railways: are the key to sustainable economic growth 38 151 Years and Counting Every year about 150 million tonnes of cargo and 100 million passengers are transported by rail 80 AGRICULTURE Alexei MELESHCHENYA, Tatyana SHAKEL Lucrative Abundance Belarus has been steadily increasing STATE AND BUSINESS the export of dairy and meat products 88 Irina NOVIKOVA REGIONAL NEWS Public-Private Partnership: Tamara MARKINA Fashion or Trend? Successful Start The business model of public-private partnership (PPP) is the 44 Today products made in Lida District are sold key to fast socio-economic growth in 70 countries worldwide 94 FOREIGN ECONOMIC TIES BUSINESS ENVIRONMENT Marta ASTREIKO Protos Means “First” in Greek Living Within Means, Protos Group is investing about €20 million 98 Trading Wisely in the expansion of metal structures production Belarus is set to expand its export by 15.2% in 2013 50 INVESTMENTS Yekaterina BABKEVICH Nadezhda RADIVON In Search of New Ways Stadler settles in Belarus and Solutions The Belarusian-Swiss electric transport factory in the town 102 In 2012, Belarus and the Czech Republic secured of Fanipol will start manufacturing merchandise in late 2013 an almost 23% increase in the bilateral trade EXHIBITIONS which now stands at $571.3 million 57 BANKS AND FINANCE Latvia: A View on the Baltic Sea The National Expo of the Republic of Belarus held in Riga Modern Payment Trends in December 2012 marked an important milestone in the Belarusian-Latvian relations 104 The share of cashless payments in the total number of card transactions increases year to year 62 Platform for Pundits The 20th Healthcare in Belarus 2013 expo Anna KOT took place in Minsk on 26-29 March 108 Cards, Banks, Cash Know How to Change the World The share of non-cash transactions in retail trade Belarus ranks sixth in the pace of advance of information in Belarus is expected to increase fourfold and communication technologies 110 to make up 50% by 2016 66 TRADE Alexander BENKO Vladimir VISHNEV Bringing Down Stereotypes Demand Creates Supply Is it possible to “spin up” the Belarusian stock market? 71 Belarusians see benefits in bringing big supermarket chains to the regions 116 Steady Forecast for Leasing Business PLACE ON THE MAP In 2013 the demand for manufacturing equipment available Capital of via leasing is expected to rise in Belarus in view of the plans to modernize the economy 74 the Land of Castles 118 DESIGN: Andrei BORODUN Printed in the printing house Minsktipproekt 13/61 Very Khoruzhei Street, Minsk, 220123, Belarus. License No. 02330/0494102 as of 11 March 2009 PROOFREAD BY Natalya PYATNITSA Subscription index: Russian edition: for individual subscribers – 74987, Format 60x90 1/8. Enamel-paper. Offset printing. Edition: 3750 copies for corporate subscribers – 749872; English edition: for individual (3100 – in Russian, 650 – in English). Open price. Order No. Approved for printing 18 March 2013. subscribers – 74986, for corporate subscribers – 749862. Publication date 26 March 2013. Company address: BelTA, 26 Kirova Street, Minsk, 220030, Belarus Mail address: 30 Engels Street, Minsk, 220030, Republic of Belarus, phone: 327-37-80, © Contents may not be reproduced without Editor permission. fax: 222-33-29. E-mail: [email protected], www.belarus-economy.by Liability for ad content is borne by advertisers. www.belarus-economy.by MODERNIZATION MODERNIZATION 2013 , 1 o. N Modernization: US AR Priorities OMY OF BEL and Essence ON A country’s prosperity hinges on the pace EC of its economic modernization Alexei DAINEKO, up new capacities and providing Doctor of Economics, Professor, Director of the Institute of domestic producers with new com- Economics of the National Academy of Sciences of Belarus petitive technologies and produc- tion facilities. Economic modernization has been suggested by the Belarusian Developed and developing coun- President as a major instrument to enhance competitiveness and tries have different views on how maintain national security. It is viewed as a timely and most adequate economic growth targets should be response to challenges and threats posed by downturns of the global met. The former strive to sustain economy. Globalization, acceleration of sci-tech progress, and growth of technological leadership and associ- ated benefits. The latter are trying transnational corporations toughen up competition on the international to break to the forefront of scientific market in terms of speed and quality of innovations. and technical progress and occupy Earlier, competition mostly revolved around traditional products with their niche in the global division of competitors focusing on the quality and economic parameters of products, labor. Therefore, countries pursu- while in the past 20 years the major driving force behind competition ing aggressive innovation policies has been the creation of fundamentally new products and services should focus on creating and build- with a considerable share of added value. Against the backdrop of the ing up capacities in a narrow field global recession, the growth capacities of traditional export commodities of studies and innovative activities. are more than limited. The one who creates a new commodity and, In this context, the central issue consequently, a new sales market gets super profits until competitors to be addressed by modernization turn out a similar product. You need not look hard to find examples. We can be defined as “speed differ- have witnessed mobile phones, laptop computers and Internet services ence issue”. Belarusian companies transforming from novelties to mass-market products. upgrade their production facilities and refresh the product offer more slowly than the companies set up Fundamental outpace investments in equipment using foreign direct investments and construction. The government of transnational corporations in Objectives policy in the field of research, inno- neighboring countries. The first decade of the 21st cen- vations and education will play a Even having government sup- tury was marked by an increas- bigger role in creating an environ- port, domestic companies are una-
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