MACROECONOMIC CLIMATE AND SOCIAL-AND-ECONOMIC DEVELOPMENT PROSPECTS
During 2012 the economic growth was procured at a sufficiently high positive level. A basis of such economic growth is a dynamically developing industrial complex. Over 2012 the index of the industrial production growth amounted to 106,3%.
There has been a growth of the production of oil products, coke, and nuclear materials – in 4,8 times, mobile machinery and facilities – 115,8 %, leather, leather products and footwear – 101,5 %.
For January-December 2012 the City’s companies attracted direct foreign investments on net basis amounting to USD 728,1 mio. with an annual assignment equal to USD 296,0 mio.
In 2012 the organizations and companies of all forms of property built 14 360 new flats (in 2011 - 14 974 flats). 1 047,7 thou. sq.m. of residential floor area were put in operation, which is 104,8% as compared to an annual assignment and 104,8% of 2011 level.
An average monthly earnest for January-November 2012 totaled to Br 4 655,2 thou. (which is 195,3 % as compared to a similar period of 2011.).
The employment level in Minsk is the highest in the country and in January-November 2012 it was 1075,8 thou. people.
The prospects of the country’s social and economic development are related to the standing positive tendencies in the country’s economic development, continued upgrading its national economy and adapting thereof to new challenges in the world market. The country’s major objectives of its social and economic development for the moment will be: continued macroeconomic stabilization and tax policy improvement (primarily streamlining and reducing tax burden), GDP energy content reduction, upgrading the monetary and pricing policy, developing the entrepreneurship and sphere of services, housing industry, minimizing the world financial, crisis consequences).
In 2012 14 organizations were involved in implementing of 20 projects within the framework of the Government Program of the innovation development of the Republic of Belarus for 2011-2015 years, the completion of which requires over Br 218,0 bln.
The organizations and companies in Minsk used Br 36202,2 bln. of investments in 2012, which is 98,1 % in comparable prices to the level of 2011 .
INVESTMENT CLIMATE. MOBILIZING DIRECT FOREIGN INVESTMENTS
A strategic objective of Minsk investment policy consists in mobilizing and efficient use of investment resources for implementing the national priorities and restructuring the economy in accordance with the demands of the domestic and foreign markets directed to procuring worthy living standards for the country’s population.
A priority direction in the investment policy remains mobilizing investment resources in the industrial sphere and centralizing thereof in implementing investment projects based on science-intensive and resource-conscious production technologies of export and import-substituting directional effect. Such projects shall be implemented with government support in the forms set forth by the existing law. In the building complex it is envisaged to mobilize investments in the export-oriented import-substituting productions, in the housing development, as well as for developing and implementing resource-conscious and energy-saving production technologies.
There has been systemized the work on defining free land plots to be offered to potential investors. For each land plot town-planning passports are developed.
Minsk city Executive Committee has started implementing in practice the principle of fairness of land plots providing for the offering to potential investors land plots for signing investment agreements within the framework of Decree No. 10 not earlier than in 3 business days following placing relevant data on such land plots in Minsk City Executive Committee’s the web-site.There has been prepared a draft Resolution of Minsk City Executive Committee related to the upgrading the investment activity in Minsk which specifies the criteria required for signing investment agreements and materially extends the lists and grounds for conducting land plots auctions
Alongside with the stable inside political situation, low level of criminality and corruption, no conflicts of inter-national or religious nature such indicators are promoting a growth of the number of investors to the country’s economy with every year. In Belarus there have been generated favourable legal conditions for operation of investors. According to the International Financial Corporation involved in the investment climate analysis in various countries the Belarusian investment legislation deserves high estimate and is one of the best among CIS countries.
A framework document defining general terms and conditions for exercising the investment activity in Belarus is the Investment Code directed to the promotion of the investment activity and protection of the investors’ rights in the country’s territory.
A factor of no little significance is the fact that investments may not be nationalized or placed in requisition without compensation. Such processes are possible only with timely and complete compensation for not only of a value of an investment property, but also other damages caused thereby.
When implementing separate investment projects important for our country’s economy with an investor there may be signed an investment agreement establishing additional legal guarantees and advantages of the Republic of Belarus thereunder stipulated for a validity period thereof. For promoting business Minsk City Executive Committee annually develops target programs directed to small business support, including direct lending, partial compensation for damage when paying interest for using bank loans, partial reimbursement of expenses when effecting leasing payments With a view to promote the business there has been incorporated a Center for entrepreneurship support and two Incubators of small business.
A free economic zone providing preferential conditions – Minsk free economic zone is running.
The growth prospects for its economy the city reconciles with the innovation development and mobilizing all information resources. A high-skilled manpower possesses enough operational experience.
Of 1000 people employed in the real economy sector 450 are PhD and MBA degree holders. Such high skills of the employees are achieved owing to put in place training system operative in such economy branches as motor industry, tractor and agricultural machinery, optics, radio electronics, precision instrument-making and others.
Minsk is an attractive, safe and, the main thing, promising and advantageous place for foreign investments, it is preferred by investors from many countries, including Russia, Switzerland, Austria, Germany, the Netherlands, etc.