Belarusian Economic Research and Outreach Center

A special issue of the Bankauski Vesnik by the National Bank of Belarus featured nine policy papers by BEROC researchers

 

A special issue of the Bankauski Vesnik magazine No. 3/680 March 2020, "From Stability to Growth", was published by the National Bank of Belarus with the participation of BEROC Economic Research Center.

Nine policy papers by BEROC researchers were featured in the issue:

 

Economic Growth in Belarus: Identification of Barriers and Choice of Priorities

Author: Dzmitry Kruk

The article is devoted to the analysis of economic growth in Belarus. It shows that the steady rate of economic growth in Belarus has noticeably weakened in recent years, which was due to accelerated capital accumulation. In order for the growth rate to reach the desired values and become stable, the country needs to ensure the growth of the overall productivity of factors of production by increasing the efficiency of the economy. The article identifies barriers that hinder productivity growth today, as well as measures to ensure its growth in the future.

 

Demography as a Challenge for Economic Growth

Authors: Kateryna Bornukova, Lev Lvovskiy 

Population ageing and declined in birth rates are among the major challenges to Belarusian economic development. The labor force is projected to decline, and the Social Protection Fund would run into deficits. To make the pension system sustainable, we need to switch to a partially funded pension system. To stimulate fertility, we need to support combining parenthood with labor force participation, and redirect funding on early development. Emigration and immigration are also challenging, and demand pro-active policies.

 

Stabilization in Monetary Sphere: Limiter of Growth or Necessary Condition?

Author: Dzmitry Kruk

This article analyzes present-day realities of the monetary environment in Belarus. The author describes the state of monetary policy in Belarus, reasons and consequences of such state, as well as probable strengthening of monetary policy orientation towards smoothing the output fluctuations. The study shows a number of institutional deficiencies in the Belarusian monetary environment. The most serious ones are the absence of anchors for inflation expectations and weak and unstable equilibrium output growth. Efforts aimed at eliminating institutional deficiencies are necessary for increasing monetary policy effectiveness.

 

Entrepreneurial Activities as a Determinant of Economic Development

Author: Radzivon Marozau

The impact of entrepreneurial activity on economic growth is not unconditional. At the same time, it is impossible to explain how technology or knowledge can determine total factor productivity without taking into account the role of entrepreneurial activity in innovation. The article examines the relationship between different types of entrepreneurial activity and economic development, as well as factors that determine the role of entrepreneurship in the economy. The author  emphasizes that in addition to formal institutional factors, such as legislation, informal factors are important for the development of the private sector – norms and values in society, which are formed, among other things, in the education system and within the framework of state policy to support entrepreneurship.

 

Innovations and Entrepreneurial Activity

Author: Maryia Akulava

The article is devoted to the importance of innovations for the economic development. The paper describes the current situation with the innovativeness of Belarusian economy and presents main weakest points compared with the neighboring and developed countries. The article provides a number of potential directions for the improvement of situation related to innovativeness and gives a number of examples of how other countries dealt with that problem. 

 

Reasons of the Interregional Disparities in Belarus and Possible Directions of Regional Policy

Author: Alexander CHUBRIK, Aleh MAZOL

The article tackles certain tendencies in regional development that lead to increase in differences between Belarusian regions at the level of regions and districts, their nature and certain negative consequences, possibilities of lowering the interregional imbalances. In addition, the authors propose a number of improvements for regional policy aimed at smoothing negative outcomes of the economic activity concentration in the most developed regions.

 

Confidence in the Economy: What Is It, How It Works And Why We Need It?

Authors: Kateryna BORNUKOVA, Nadezhda GODES, Evgenia SHCHERBA

The article provides an interdisciplinary analysis of the confidence category, examines the influence of confidence in the authorities and the expectations of economic agents on economic growth, stability, and reveals the role of communication policy in building confidence.

 

Digital Transformation of the National Economy: Challenges and Development Perspectives

Author: Anastasiya Luzgina

Today, processes of digital transformation develop rapidly all over the world. Digitalization is seen as one of the drivers of economic growth. At the same time, the success of digital transformation at the national level is difficult to assess without a clear understanding of its essence and international comparison. The article reveals the concept of digitalization in a narrow and broad meaning as well as defines the difference between digitalization and informatization. The analysis of the Republic of Belarus positioning in international ratings allows to determine the digital adaptation degree of certain areas of the Belarusian economy in comparison with the situation in neighbouring countries. The author analyses the impact of the ICT sector on the Belarus’ economy, taking into account the significant of the sector in the process of digital transformation. Finally, the article reveals the main advantages of digitalization and identifies the challenges that governments face in the process of transfer economies to digital format.

 

Potential and Directions of Development of Financial Markets in Belarus

Authors: Dzmitry Kruk, Alena Tsiulya

This article is devoted to the analysis of the financial sector in Belarus and its potential positive effects on economic growth. The article shows that the scope of financial intermediation in Belarus is lower in comparison to the countries of the similar income group. The article postulates that the Belarusian financial sector should develop according to dual-track concept: getting rid of institutional barriers should go in line with selective measures of development. The article formulates specific measures for each track.

 

The papers are available only in Russian.