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Background Note:
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. Further Electronic Information National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information. |