Belarusian Economic Research and Outreach Center

Research

One of the main BEROC goals is generating and spreading of new academic and policy knowledge on problems, tendencies and development of Belarusian economy. Academic and policy research aimed at the development of strategy encouraging economic growth and quality improvement of economic policy in Belarus.

National Specifics and International Experience in Foreign Direct Investment Attraction

The uncontrolled inflow of foreign investment in the country can have both positive and negative effects. In this regard, national governments develop and implement measures to attract foreign capital, taking into account the characteristics and interests of a particular state. With a view to better understanding the logic of the FDIs movement, the paper gives a brief description of the FDIs dynamics in the Republic of Belarus, as well as the study of the international experience based on the analysis of the FDIs attraction policies of the Visegrad Group countries (Hungary, Czech Republic, Poland) and Georgia.

Modern Tax System Transformations

Building an optimal tax system is a strategic objective for any state. Under the conditions of the economy openness, both internal and external factors can have a significant impact on the pace of economic development of a country that affects the level of tax collection. The article both emphasizes the importance of tax system improvement and explains the necessity of tax administration optimization. A tax system approximated to optimal one will be less affected by the negative trends and modern tax administration will reduce costs, increase transparency and the taxpayers’ trust level. The tax system analysis was carried out based on studying the Visegrad Group countries’ experience (the Czech Republic and Poland), as well as Georgia and Belarus. As a result, it was observed a single direction of all countries’ development in the area of the tax system improvement, while the presence of the individual characteristics.

 Aleksandr Vashchilko

FREE Policy Brief: Effects of Trade Wars on Belarus

The trade wars following the 2014 events in Ukraine affected not only the directly involved participants, but also countries like Belarus that were affected through international trade linkages. According to my estimations based on a model outlined in Ossa (2014), these trade wars led to an increase in the trade flow through Belarus and thereby an increase of its tariff revenue. At the same time, because of a ban on imports in the sectors of meat and dairy products, the tariff revenue of Russia declined. As a member of the Eurasian Customs Union (EACU), Belarus can only claim a fixed portion of its total tariff revenue. Since the decline in the tariff revenue of Russia led to a decline in the total tariff revenue of the EACU, there was a decrease in the after-redistribution tariff revenue of Belarus. As a result, Belarusian welfare decreased. To avoid further welfare declines, Belarus should argue for a modification of the redistribution schedule. Alternatively, Belarus could increase its welfare during trade wars by shifting from being a part of the EACU to only being a part of the CIS Free Trade Area (FTA). If Belarus was only part of the CIS FTA, the optimal tariffs during trade wars should be higher than the optimal tariffs without trade wars. The optimal response to the increased trade flow through Belarus is higher tariffs.

 Aleksandr Vashchilko

Effects of Trade Wars on Belarus

The trade wars following the 2014 events in Ukraine affected not only the directly involved participants, but also countries like Belarus that were affected through international trade linkages. According to estimations based on a model outlined in Ossa (2014), these trade wars led to an increase in the trade flow through Belarus and thereby an increase of its tariff revenue. At the same time, because of a ban on imports in the sectors of meat and dairy products, the tariff revenue of Russia declined.

22 may 2016 Александр Ващилко

Effects of Trade Wars on Belarus

This paper looks at the effects of the trade wars that followed 2014 events in Ukraine on Belarus. The estimation of the model predicts the increase in the tarif revenue collected by Belarus. Because of ban on imports, the tari¤ revenue of Russian Federation declines. Being a part of Customs Union, Belarus needs to participate in the tarif revenue redistribution. The need to participate in the tarif revenue redistribution and the decline in the tarif revenue collected by Russian Federation lead to the decrease in the welfare of Belarus. To avoid this decrease, Belarus should argue for the modi…cation of the redistribution schedule.

FREE Policy Brief: Intermediate and Capital Goods Import and Economic Growth in Belarus

FREE Policy Brief: The Economic Complexity of Transition Economies

FREE Policy Bried: The Inevitable Social Security Reforms in Belarus

In 2016, Belarus will face the need to reform its social protection policy. The three main directions of reforms will be to departure from subsidized tariffs, to reform the pension system, and to increase unemployment benefits. Needless to say, some of these reforms will be highly unpopular. The government needs not only to cut expenditures, but also to think about new ways of providing targeted social support.

FREE Policy Bried: The Role of Belarusian Private Sector

The development of a private sector and the expansion of its role in the economy is one of the key goals repeatedly announced by the Belarusian authorities. The reforms carried out in Belarus in 2006-2014 moved the country from 106th to 57th position in the World Bank Doing Business ranking. The official statement is that reforms boosted the rapid development of business initiatives and its impact on economic development. Unfortunately, there is no clear confirmation of this statement. The absence of a transparent and clear methodology in Belarusian statistics on how to evaluate the role of the private sector makes it difficult to evaluate the exact input of the Belarusian business in the economy and compare its role to other countries.

FREE Policy Bried: Local Self-Governance in the Republic of Belarus

This policy brief summarizes the results of our research on the development of local self-governance in the Republic of Belarus. The aim of this study was to analyze the existing system of local selfgovernance in the Republic of Belarus and to suggest directions for its improvement. The results show that the development of local self-governance should be directed to the reduction of concentration of the administrative-territorial division, real empowerment of local Councils of Deputies, improvement of the mechanism of alignment and balancing of local budgets, as well as the development of a financial base of local financial management and intergovernmental relations.