|
|
|
Belarus PROFILE
OFFICIAL NAME: Geography People Government Economy U.S.-BELARUSIAN RELATIONS The two countries have exchanged top-level official visits. Stanislav
Shushkevich, the Chairman of the Supreme Soviet of the Republic of Belarus, met
with President Clinton in Washington in July 1992, and President Clinton visited
Belarus on January 15, 1994. After this high point in relations, however,
bilateral relations cooled following the election of President Lukashenko in
July 1994. After the internationally unrecognized November 1996 constitutional
referendum, which resulted in the dissolution of Belarus's legitimate parliament
and the centralization of power in the executive branch, Lukashenko provoked a
diplomatic crisis by demanding and eventually confiscating diplomatic residences
on the Drozdy compound, taking the U.S., German, British, French, Italian, and
IMF residences away from those missions, ignoring outstanding lease agreements,
and leaving the confiscation uncompensated. In addition, Lukashenko used his
newly centralized power to repress human rights throughout the country, but
particularly members of the disbanded 13th Supreme Soviet, the legitimately
elected parliament at the time, or former members of his own government.
For these reasons, the United States began to pursue a "selective
engagement" policy with the Government of Belarus, limiting access for the
government to U.S. Government officials at the Assistant Secretary level and
below, and restricting U.S. assistance to the Belarus Government--with the
exception of humanitarian assistance and exchange programs with state-run
educational institutions. At the same time, the U.S. greatly expanded contacts
with lower levels of the government and with the democratic opposition within
Belarus.
U.S.-Belarusian Economic Relations In February 1993, a bilateral trade treaty guaranteeing reciprocal
most-favored-nation status entered into force. In January 1994, the U.S. and
Belarus signed a bilateral investment treaty, which has been ratified by Belarus
but has not been ratified by the U.S. Senate. In addition, due to continuing
repression of labor rights in Belarus, in 2000, the U.S. removed Belarus from
the Generalized System of Preferences (GSP).
The United States has encouraged Belarus to conclude and adhere to agreements
with the International Monetary Fund (IMF) on the program of macroeconomic
stabilization and related reform measures, as well as to undertake increased
privatization and to create a favorable climate for business and investment.
Although there has been some American direct private investment in Belarus, its
development has been relatively slow given the uncertain pace of reform. An
Overseas Private Investment Corporation agreement was signed in June 1992 but
has been suspended since 1995 because Belarus did not fulfill its obligations
under the agreement. Belarus is eligible for Export-Import Bank short-term
financing insurance for U.S. investments, but because of the adverse business
climate, no projects have been initiated. The IMF granted standby credit in
September 1995, but Belarus has fallen off the program and did not receive the
second tranche of funding, which had been scheduled for regular intervals
throughout 1996. Since that time, Belarus has had an ongoing discussion to
relaunch IMF-backed reforms, concluding an arrangement for an IMF
Staff-monitored program (SMP) in 2001. However, the authorities did not follow
through with reforms as hoped, leaving an uncertain future for IMF-backed
cooperation.
As a matter of policy, the U.S. Government currently does not encourage U.S.
companies to invest in Belarus. Belarus' continuing problems with an opaque,
arbitrary legal system, a confiscatory tax regime, cumbersome licensing system,
price controls, and lack of an independent judiciary create a business
environment not conducive to prosperous, profitable investment. In fact, several
investors into Belarus have left in recent years, including the Ford Motor
Company. The investment climate is exacerbated by the fact that the IMF and the
World Bank have had to cancel or suspend their programs of cooperation with
Belarus in recent years.
U.S. Assistance to Belarus Annual U.S. Assistance (including DoD excess and privately donated
humanitarian commodities) In FY 2001, the U.S. Government provided an estimated $30.73 million in
assistance to Belarus, including $10.82 million in FREEDOM Support Act (FSA)
assistance; $840,000 in Educational and Cultural Exchanges (ECE) funds; $500,000
from the Human Rights and Democracy Fund (HRDF) administered by the Bureau of
Democracy, Human Rights and Labor; and $18.57 million in U.S. Defense Department
excess and privately donated humanitarian commodities. U.S. Government-funded
technical assistance was largely focused on voter mobilization ("get out
the vote") activities related to the September 9 presidential election and
promoting independent media coverage of election-related issues. In FY 2001,
some 250 Belarusians ranging from high school students to mid-career
professionals traveled to the United States on U.S. Government-funded training
and exchange programs.
As mentioned above, U.S. Government assistance to Belarus continues to be
subject to the policy of selective engagement with the Government of Belarus,
under which no bilateral assistance is channeled through the Government of
Belarus, except for humanitarian assistance and exchange programs involving
state-run educational institutions. Virtually all U.S. Government assistance to
Belarus is targeted at the country's non-governmental sector, particularly those
NGOs that are working to promote the development of civil society and the free
flow of information.
Training and exchange programs. Since FY 1993, U.S. Government-funded
exchange programs have brought more than 2,200 Belarusian citizens to the United
States for short-term professional or long-term academic training, including
some 250 in FY 2001 alone. These programs are giving reform-oriented Belarusians
an opportunity to develop their skills and establish contacts with U.S.
counterparts.
Crossborder training programs. U.S. Government-funded Crossborder
programs provide training to Belarusians in neighboring eastern European
countries, giving the Belarusians an opportunity to see first-hand the results
of successful postcommunist democratic and economic reforms.
Democracy fund small grants program. The U.S. embassy's Democracy
Commission awards small grants to Belarusian NGOs in support of a wide range of
democracy-building activities, including civic participation, independent print
and electronic media, independent trade unions, legal aid organizations, youth
and women's groups and human rights groups. Although Democracy Commission grants
are limited in size--individual grants do not exceed $24,000, with most falling
between $5,000 and $15,000--they have proven to be a very effective vehicle for
supporting pro-reform segments of Belarusian society at the grassroots level.
Support for the National Endowment for Democracy. The U.S. Government
provides supplementary funding to the National Endowment for Democracy (NED) in
support of small grants to Belarusian NGOs and independent media outlets.
Political process programs. With funding from USAID, the International
Republican Institute (IRI) and the National Democratic Institute (NDI) conduct
in-country training focusing on party- and coalition-building, domestic election
monitoring, and strengthening political skills for democratically oriented
organizations, party leaders and activists.
Independent print media. With funding from USAID, the ProMedia II
Program implemented by the International Research and Exchanges Board (IREX)
offers technical and legal assistance to Belarus's independent media, especially
in the regions outside Minsk. IREX has adapted its activities to address the
extremely adverse working environment for independent media in Belarus by
providing legal assistance to help journalists defend their rights.
Rule of law programs. With funding from USAID, the American Bar
Association's USAID-funded Central and Eastern European Law Initiative
(ABA/CEELI) is strengthening law-related NGOs and educating average Belarusian
citizens about their rights under Belarusian law. ABA/CEELI has been working
with lawyers from 22 legal advice centers run by independent trade unions and
NGOs to improve the quality and increase the availability of free legal advice
to the population.
NGO development programs. With funding from USAID, the Counterpart
Alliance for Partnership (CAP) seeks to promote civil society development in
Belarus by providing assistance to Belarusian NGOs, with a focus on legal aid
and education to strengthen the capacity of its Belarusian NGO partners to
protect their own rights.
Support for Belarusian entrepreneurs. Although the lack of economic
reform in Belarus has precluded a broader program of USAID-funded economic
development assistance, USAID has sought to help Belarusian enterpreneurs to
organize and defend their rights.
Western NIS Enterprise Fund (WNISEF). WNISEF runs a small and
medium-sized enterprise (SME) credit and capital investment program in Ukraine,
Moldova, and Belarus. However, because of the restrictive environment for
private SMEs in Belarus, WNISEF has had no active credit and investment projects
in Belarus for the past several years.
U.S. Department of State--Operation Provide Hope. In FY 2001, the
Humanitarian Programs Division of the Office of the Coordinator of U.S.
Assistance to the NIS transported approximately $18.6 million in privately
donated and U.S. Defense Department excess humanitarian commodities to Belarus.
Security programs. Belarus was previously a recipient of assistance
under the U.S. Defense Department's Cooperative Threat Reduction (CTR) Program,
whose objective is to reduce the threat posed to the United States by weapons of
mass destruction remaining on the territory of the former Soviet Union, by
promoting denuclearization and demilitarization and preventing weapons
proliferation. However, since 1997, Belarus has not been certified annually by
the President as eligible to receive assistance under the CTR Program due to the
Belarusian Government's poor record on human rights. This resulted in the
suspension and reallocation to other countries of unobligated CTR assistance
funds originally intended for Belarus, as well as restrictions on other
security-related assistance to Belarus. The United States and Belarus signed a
government-to-government umbrella agreement on CTR assistance in 1992, seven
agency-to-agency CTR implementing agreements, and one memorandum of
understanding and cooperation; the umbrella agreement was extended for one year
in October 1997, but has now expired.
For more detailed information on U.S. Government-funded assistance programs,
please see the Annual Reports on U.S. Government Assistance to Eurasia, which
are available online at the following addresses: Principal U.S. Embassy Officials The U.S. embassy in Minsk, Belarus is located at Starovilenskaya 46; tel:
(375-17) 210-12-83 (375-17) 234-78-53.
HISTORICAL HIGHLIGHTS ECONOMY After an initial outburst of capitalist reform from 1991-94, including
privatization of state enterprises, creation of institutions of private
property, and entrepreneurship, Belarus under Lukashenko has greatly slowed its
pace of privatization and other market reforms, emphasizing the need for a
"socially oriented market economy." About 80% of all industry remains
in state hands, and foreign investment has been hindered by a climate hostile to
business. The banks, which had been privatized after independence, were
renationalized under Lukashenko.
Economic output, which declined for several years, revived somewhat in the
late 1990s, but the economy remains dependent on Russian subsidies. Until 2000,
subsidies to state enterprises and price controls on industrial and consumer
staples constituted a major feature of the Belarusian economy. Inflationary
monetary practices, including the printing of money also has been regularly used
to finance real sector growth and to cover the payment of salaries and pensions.
Peat, the country's most valuable mineral resource, is used for fuel and
fertilizer and in the chemical industry. Belarus also has deposits of clay,
sand, chalk, dolomite, phosphorite, and rock and potassium salt. Forests cover
about a third of the land, and lumbering is an important occupation. Potatoes,
flax, hemp, sugarbeets, rye, oats, and wheat are the chief agricultural
products. Dairy and beef cattle, pigs, and chickens are raised. Belarus has only
small reserves of petroleum and natural gas and imports most of its oil and gas
from Russia. The main branches of industry produce tractors and trucks, earth
movers for use in construction and mining, metal-cutting machine tools,
agricultural equipment, motorcycles, chemicals, fertilizer, textiles, and
consumer goods. The chief trading partners are Russia, Ukraine, Poland, and
Germany.
The massive nuclear accident (Apr. 26, 1986) at the Chernobyl power plant,
across the border in Ukraine, had a devastating effect on Belarus; as a result
of the radiation release, agriculture in a large part of the country was
destroyed, and many villages were abandoned. Resettlement and medical costs were
substantial and long-term.
In 2000, Belarus managed to unify its currency exchange rates, tightened its
monetary policy, and partially liberalized the foreign currency market. These
developments led to the conclusion of a staff-monitored program in cooperation
with the IMF, addressing, among other topics price and wage liberalization, a
widening of privatization, fiscal reform, the adoption of international
accounting standards in the banking sector, and the repeal of several egregious
laws and decrees to improve the investment climate. The program was conducted
between April and September 2001, with relatively disappointing results.
The World Bank is currently considering a new country assistance strategy for
Belarus, focusing on areas such as targeted social assistance, AIDS/HIV and
tuberculosis prevention, environmental protection, Chernobyl-related damage, and
small and medium enterprise development. In June 2001, the World Bank approved a
loan of $22.6 million to finance repairs in over 450 schools, hospitals, and
homes for orphans, the elderly and the disabled throughout Belarus.
Environmental Issues GOVERNMENT AND POLITICAL CONDITIONS In October 2000, parliamentary elections occurred for the first time since
the disputed referendum of 1996. According to OSCE/ODIHR, these elections failed
to meet international standards for democratic elections. In particular the
elections fell far short of meeting the minimum commitments for free, fair,
equal, accountable and transparent elections. Following on from the flawed
parliamentary elections, and based on the unrecognized 1996 constitution,
Lukashenko announced early in 2001 that presidential elections would be held.
International monitors noted sweeping human rights violations and nondemocratic
practices throughout the election period, including massive vote counting fraud.
These irregularities led the OSCE/ODIHR to find that these elections also failed
to meet Belarus' OSCE commitments for democratic elections.
Government restrictions on freedom of speech and the press, peaceful
assembly, religions and movement all increased in 2001. Despite the
constitutional provisions, a 1998 government decree limited citizens right to
express their own opinion. Although independent media remain widely available in
Minsk, as part of a continuing crackdown on opposition activity, the authorities
stepped up its campaign of harassment against the independent media. The
authorities continued to restrict severely the right to a free press through
near-monopolies on the means of production of newsprint; means of distribution
on national level broadcast media, such as television and radio, and by denying
accreditation of journalists critical of the regime.
Freedom of assembly is restricted under former Soviet law, which is still
valid. It requires an application at least 15 days in advance of the event. The
local government must respond positively or negatively at least 5 days prior to
the event. Public demonstrations occurred frequently in 2001, but always under
government oversight.
The constitution provides for freedom of religion; however, the authorities
restrict this right in practice. Although Article 16 of the 1996 amended
constitution, which resulted from an illegal referendum, reaffirms the equality
of religions and denominations before the law, it also contains restrictive
language that stipulated that cooperation between the state and religious
organizations "is regulated with regard for their influence on the
formation of spiritual, cultural, and country traditions of the Belarusian
people."
According to the constitution, citizens are free to travel within the country
and to live and work where they wish; however, the authorities restrict these
rights in practice. The authorities issue internal passports to all adults,
which serve as primary identity documents and are required to travel, obtain
permanent housing, and for hotel registration.
The constitution provides for the right of workers--except state security and
military personnel--to voluntarily form and join independent unions and to carry
out actions in defense of workers'rights, including the right to strike. In
practice, however, these rights are limited. The Belarusian Free Trade Union
(BFTU) was established in 1991 and registered in 1992. Following the 1995 Minsk
metro workers strike, the President suspended its activities. In 1996 BFTU
leaders formed a new umbrella organization, the Belarusian Congress of
Democratic Trade Union (BCDTU), which encompasses four leading independent trade
unions and is reported to have about 15,000 members.
In May 2001, a complaint was lodged with the ILO by several trade union
organizations. A trade union campaign was carried out to raise international
awareness and put pressure on the Belarus government. On July 27, 2001, they
continued to "create problems for him on the international stage." On
several occasions, warnings were given to trade unions condiered too political
and not sufficiently constructive. Twice, on July 27 and September 27, the bank
accounts of the FTUB were frozen by the authorities. FTUB leaders were
threatened with prosecution. Investigations were carried out, but with no
result. The accounts were then reopened.
Principal Government Officials Belarus' embassy in the U.S. is at 1619 New Hampshire Ave., NW, Washington,
DC 20009; tel: 202-986-1606; fax: 202-986-1805; website: http://www.belarusembassy.org DEFENSE AND MILITARY ISSUES The primary engagement between the U.S. military and Belarus continues to be
in the humanitarian assistance arena. Completion of the renovation of the Gomel
Regional Blood Transfusion Center in July of this year with a project cost of
$475,000 marked the high point of this assistance. Future programs have been
nominated and are expected to receive approval in fiscal year 2002. These,
coupled with continuous flow of Humanitarian Excess Property (HEP-EP) form EUCOM
Cold War stocks into the Republic, will continue to define the HA program. Direct military to military cooperation continues to be minimal. Belarus
currently has no IMET program, and bilateral exercises and cooperation are
nonexistent. There is a great desire on the Belarusian side to re-establish such
cooperation and contacts but it has not been possible due to the political
situation. The only program that is still functional within this category is the
attendance of Belarusian Military Officers in George C. Marshall Center
programs. Potential areas of cooperation can be seen in the area of mine disposal,
demining and small arms destruction. Belarus possesses an unstable inventory of
about 3.5 million anti-personnel mines, which require proper disposal. Officials
have been working with foreign governments to acquire financial and technical
support for these efforts but have met with little tangible success. In addition
to this there are numerous World War II vintage minefields which are still in
place and killing or injuring several Belarusians every year. The Belarusian
Government would quickly accept assistance in either of these areas. The new Minister of Defense is experiencing success in the area of military
reform. Planned changes include combining the Air and Air defense Forces,
downsizing the force structure about 30% from 83,000 to 60,000, transitioning
from a conscript to a contract force, and modernizing the command and control
structure by creating a Ground Forces Command between the Ministry of Defense
and the units in the field. Implementation of these reforms will take an
unspecified amount of time. The area of greatest concern continues to be the link between the Belarusian
MOD, the sale of arms, equipment services to, and the training of personnel from
States of Concern. Included in this category (but not limited to) are the sales
of weapons to Libya and Syria, along with reported weapons transfers, upgrades
of Iraqi equipment (S-300 system) and air defense training of Iraqi service
members. FOREIGN RELATIONS Following the recognition of Belarus as an independent state in December 1991
by the European Communities, EU-Belarus relations initially experienced a steady
progression. The signature of the Partnership and Cooperation Agreement (PCA) in
1995 signaled a commitment to political, economic and trade cooperation.
Significant assistance was provided to Belarus within the framework of the Tacis
Program and also through various aid programs and loans. However progress in
EU-Belarus relations stalled in 1996 after serious setbacks to the development
of democracy, and the Drozdy conflict. The EU did not recognize the 1996
constitution, which replaced the 1994 constitution. The Council of Ministers
decided against Belarus in 1997: The PCA was not concluded, nor was its
trade-related part; Belarusian membership in the Council of Europe was not
supported; bilateral relations at the ministerial level were suspended and EU
technical assistance programs were frozen. Acknowledging the lack of progress in relation to bilateral relations and the
internal situation following the position adopted in 1997, the EU adopted a
step-by-step approach in 1999, whereby sanctions would be gradually lifted upon
fulfillment of the four benchmarks set by the OSCE. In 2000, some moderately
positive developments toward the implementation of recommendations made by the
OSCE AMG were observed but were not sufficient in the realm of access to fair
and free elections. Russia is the largest partner for Belarus in the economic and political
fields. In terms of trade, two-thirds of Belarusian exports go to Russia. Due to
the structure of Belarusian industry, Belarus relies heavily on other CIS
countries and Russia in particular both for export markets and for the supply of
raw materials and components. The introduction of free trade between Russia and
Belarus in mid-1995 led to a spectacular growth in bilateral trade, which was
only temporarily reversed in the wake of the financial crisis of 1998.
Lukashenko seeks to develop a closer relationship with Russia. The framework for
the Russia-Belarusian Union was set out in the Treaty On the Formation of a
Community of Russia and Belarus (1996), the Treaty on Russia-Belarus Union, the
Union Charter (1997), and the Treaty of the Formation of a Union State (1999).
The integration treaties contain commitments to monetary union, equal rights,
single citizenship, and a common foreign and defense policy. They also have
established a range of institutions modeled after the EU. After protracted
disputes and setbacks, the to countries' customs duties were unified as of March
2001. Belarus has made progress in monetary stabilization in the context of
ongoing negotiation with the Russian Central Bank on monetary union.
TRAVEL AND BUSINESS INFORMATION Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000. Passport information can be obtained by calling the National Passport Information Center's automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648). It also is available on the internet. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800. Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency. |
|