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On the Way to Technological Breakthrough

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					ECONOMY OF BELARUS No. 4, 2010   www.belarus-economy.by                           INNOVATION – INVESTMENT – INITIATIVE




                                                             On the Way to Technological
                                                                           Breakthrough
                                                                           The forthcoming five-year period will mark a major
                                                                         breakthrough in the economic development of Belarus

                                 Belarus’ technological development strategy for 2011-2015 is designed
                                 to promote the innovative development of the country, facilitate
                                 restructuring of the national economy, and create new science-intensive
                                 and high-tech enterprises. The strategy provides for enhancing the
                                 competitiveness of the economy by means of embracing cutting-edge
                                 technologies and introducing incentives to encourage innovation activity
                                 of businesses. Economy Minister of Belarus Nikolai Snopkov reveals
                                 the major points of the strategy in an interview with the Economy
                                 of Belarus Magazine.
                                     The President of Belarus         extended national innovation sys-
                                 ?   called a new technological
                                     strategy essential for the
                                                                      tem.
                                                                          The country’s position on the
                                 social and economic develop-         global market of innovative prod-
                                 ment of the country in the years     ucts in the medium-term and
                                 to come. What goals does this        long-term perspectives will hinge
                                 strategy pursue?                     on its ability to generate scien-
                                                                      tific knowledge and devise mod-
                                    First of all, we are going to
                                                                      ern-day technologies promoted
                                 upgrade traditional industries
                                                                      by innovation-aggressive domes-
                                 to increase labor efficiency, cut
                                                                      tic enterprises. This is why it is
                                 down on energy and material con-                                           clusion of R&D centers into these
                                                                      crucial for the national economy
                                 sumption, turn out new types of                                            holding companies;
                                 products to reduce the country’s     to embrace new knowledge and
                                                                      technologies.                            Creation of new high-tech en-
                                 reliance on imports and build                                              terprises and industries based on
                                 up the export potential. Another         Therefore, the number one
                                                                      challenge of the forthcoming fi-      domestic technologies and strate-
                                 important area of work is the de-                                          gic partnership with the world’s
                                 velopment and manufacture of         ve-year period is to create con-
                                                                      ceptually new production facili-      leading companies.
                                 new generation products, imple-                                               The new legal framework pro-
                                 mentation of cutting edge tech-      ties, enterprises and industries
                                                                      manufacturing high-tech export        vides for the commercialization
                                 nologies enabling the production                                           of R&D products and protection
                                 of competitive goods with a high     products.
                                                                          To this end, we are determined    of intellectual property rights.
                                 value added.
                                    The strategy provides for         to create a favorable business cli-
                                                                                                                The creation of innovati-
                                 the development and implemen-        mate for domestic and foreign
                                 tation of domestic technologies      investors to carry out structural     ?   on-friendly environment is
                                                                                                                viewed as an important
                                 and adoption of progressive for-     economic reforms, boost the out-
                                                                                                            factor contributing to the com-
                                 eign technologies of the fifth and   put of competitive innovation
                                                                                                            petiti-veness of the national
                                 sixth technological paradigms        products with a high value add-       economy. What is your vision
                                 (information and communication       ed and increase the earnings of       of this environment?
                                 technologies as well as biological   businesses and households.
                                 technologies) and technical up-          The structure of the Belaru-         Innovation-friendly environ-
                                 grade of traditional enterprises     sian economy will be optimized        ment means greater latitude for
                                 of the fourth paradigm.              in the following two ways:            businesses, sound competition,
                                    The strategy focuses on cre-          Restructuring of traditional      focus on innovations, a signifi-
                                 ating an economic environment        enterprises and their incorpora-      cant number of small and medi-
                                 conducive to innovations and an      tion into holding companies; in-      um-sized companies, creation of
18
      INNOVATION – INVESTMENT – INITIATIVE                                       www.belarus-economy.by




                                                                                                                        ECONOMY OF BELARUS No. 4, 2010
big state-private companies. The         The market incentives for in-    hout a large input of investment
economic liberalization, includ-     novation activity should be based    capital. What is planned to be
ing optimization of tax legisla-     on the optimization of property      done to boost the volume and
tion, is a major pre-condition for   relations and streamlining of        quality of investments? What in-
turning the national business        functions of the relevant min-       vestment areas are of the top
into the innovation locomotive of    istries and concerns. The latter     priority?
the economy. The liberalization is   should focus on the implementa-
expected to make innovations an      tion of the state economic policy       Investments boosting techni-
essential condition for survival     in the given industry. The direct    cal development and competitive-
of companies amidst tough com-       control over enterprises should      ness of the national economy in
petition.                            be minimized.                        the long run should be based on
    At present R&D products have         Management and privatiza-        concerted efforts of the state,
limited use in the economy. This     tion of state property and ref-      business, science and civil socie-
is why we need to come up with       ormation of property relations       ty with the leading role played by
strong incentives to encourage       in general should be targeted at     the state as initiator and guaran-
innovations. This includes:          creation of favorable environ-       tor of agreements.
    – the improvement of cus-        ment for innovation activities of       Therefore an indispensable
toms, administrative and other       all the economic agents. Manage-     source of funding priority pro-
regulations that can influence a     ment and privatization of state      jects and implementing the long-
company’s decision regarding in-     property as part of the country’s    term technological development
novations. Innovation-active com-    common economic policy aim to        strategy are budget funds allo-
panies should be given tax pre-
ferences;
    – legalization of the manda-
tory transfer of royalty payments
to R&D companies and individual
scientists;
    – freedom to determine the
production volume and prices by
companies who are implementing
new technologies and developing
import-substituting products;
    – the right to use other pay-
ment mechanisms besides the
tariff-based system to enhance
labor productivity;
    – tougher control over incen-
tive payments (rewards, premi-
ums, bonuses), social packages
and non-financial recognition
of employees and managers of
the real economy sector via a wid-
er use of collective labor agree-
ments;
    – enhancement of qualifica-
tions (training, re-training and
advanced training);
    – development of insurance
system for innovation activities;
    Hiring scientists and engi-      attract foreign investment, first    cated under specific budget pro-     Akadempharm
                                                                                                               has introduced
neers from the CIS and non-CIS       of all, for the purposes of struc-   grams and state funds.               a new antiviral
states to promptly meet the coun-    tural and technological economic        In order to safeguard forma-      drug, Fluestop,
try’s demand for highly-qualified    reforms taking into considera-       tion of technological corridors      to prevent and
                                                                                                               treat acute
specialists.                         tion the needs of not just today,    and implementation of specific       respiratory
    Top on the agenda is training    but those of tomorrow and the        high-risk applied R&D projects       viral infections
professionals who can offer out-     day after tomorrow.                  we will have to strengthen the
of-the-box solutions which im-                                            role of the public and private
plies the radical improvement of         It goes without saying that      partnership through concession
education and professional train-
ing across all the levels.
                                     ?   structural reforms of the
                                         economy are impossible wit-
                                                                          agreements, project financing,
                                                                          venture and other funds.
                                                                                                                         19
                     www.belarus-economy.by                          INNOVATION – INVESTMENT – INITIATIVE


                                                                                                    – setting up sectoral associa-
                                                                                                 tions of producers and exporters
                                                                                                 and a wide network of sales rep-
                                                                                                 resentation outlets abroad.

                                                                                                       Today developed economies
                                                                                                 ?     are about to complete tran-
                                                                                                       sition to the sixth techno-
                                                                                                 logical paradigm. Unfortuna-
                                                                                                     ,
                                                                                                 tely in our country there are not
                                                                                                 many companies that are ready
                                                                                                 to make this transition. What
                                                                                                 is set to be done to bring the
                                                                                                 Belarusian industry closer to
                                                                                                 the level of developed countries?

                                                                                                     Among the key indices of
                                                                                                 the economic development of Be-
                                                                                                 larus for the next five years are
                                                                                                 those assessing efficiency of per-
                                                                                                 formance of the industrial sec-
                                                                                                 tor. Thus, in the next five years
                                                                                                 the profitability of industrial
                                                                                                 sales is projected to go up from
     Cutting-edge        Other major sources of invest-       It is necessary to put in pla-     an estimated 7.5% in 2010 to 14-
     technologies
         and high
                     ments include proprietary funds      ce a set of measures to protect        15% in 2015, the average share of
    qualifications   of companies and bank loans.         and support economic interests         the shipped innovation products
    are the basis    Raising foreign investments, first   of exporters in compliance with        should jump from an estimated
    for producing
 competitive and     of all, direct ones should remain    the current strategies and plans.      11% in 2010 to 20-21% in 2015.
 quality products    high on the agenda as well.          I would like to single out the fol-    Besides, in line with a presiden-
        at Polotsk
  Steklovolokno.         We will have to fund creation    lowing measures:                       tial instruction it is necessary
Prime Minister of    and development of innovation            – providing state support in       to double the share of science-
  Belarus Sergei
 Sidorsky visited
                     infrastructure comprising tech-      the form of targeted export in-        intensive and high-tech products
 the company in      noparks, business incubators,        surance and lending, insurance         in the total Belarusian exports by
 November 2010       technology transfer centers; to      of export loans to shield export-      2015. Reaching these targets will
                     boost investments in the innova-     ers from commercial and politi-        only be possible by modernizing
                     tion sector and personnel devel-     cal risks. Export insurance may        production facilities, introduc-
                     opment programs (by supporting       be provided in the form of state       ing cutting-edge technologies and
                     higher learning institutions and     guarantees under export loans;         setting up new high-tech manu-
                     professional education programs,         – providing state support to in-
                                                                                                 facturers.
                     etc.), innovation companies and      novation and investment projects
                                                                                                     The first step to setting up
                     clusters.                            to produce high-tech goods which
                                                                                                 high-tech production facilities
                         This is quite logical, as key    will significantly increase their
                                                                                                 of the fifth and sixth technologi-
                     factors of their development in-     credibility in the eyes of domes-
                                                                                                 cal paradigms based on domes-
                     clude a sophisticated university     tic and foreign investors;
                                                                                                 tic high technologies will be a
                     network integrated with the in-          – developing leasing of export-
                                                          oriented high-tech products;           drastic increase in R&D expen-
                     ternational educational system,
                     transport infrastructure ensur-          – ensuring a free amortization     ditures, first of all, the share of
                     ing public mobility (airports,       policy and creating high-tech          proprietary funds of industrial
                     high speed motorways and high-       production facilities with special     companies. In particular, in the
                     way networks), large and diversi-    amortization standards for main        next five years domestic expendi-
                     fied labor markets that increase     assets;                                tures in the area will grow from
                     importance of satellite towns            – introducing official account-    an estimated 0.64% in 2010 to 2.5-
                     around big cities and make the       ability statistics of high-tech        2.9% of GDP, i. e. the same level
                     life of their dwellers more com-     products sales;                        of expenditures as in such devel-
                     fortable.                                – providing exporters with in-     oped countries as Switzerland,
                                                          formation, consultation, market-       Denmark and Austria. This tar-
                         How are you going to sti-        ing and technical support;             get is attainable. For instance, in
                     ?   mulate national high-tech
                         products exporters?
                                                              – providing scientific support
                                                          to high-tech export development;
                                                                                                 the Republic of Korea the R&D
                                                                                                 expenditures grew from 0.77%
   20
      INNOVATION – INVESTMENT – INITIATIVE                                         www.belarus-economy.by




                                                                                                                         ECONOMY OF BELARUS No. 4, 2010
in 1980 of GDP to 1.58% in 1985       to presidential decree No. 123 of    ce of Israel, China and other
with business expenditures in-        March 2009 “On some measures         countries.
creasing more than nine-fold to       to stimulate innovation activi-          In an economy based on
1.18% of GDP (in 2003 business        ties in the Republic of Belarus”     knowledge, the creation of in-
expenditures were at the level        and secure the right of universi-    tellectual property and develop-
of 1.98% of GDP). In Belarus,         ties and scientific organizations    ment of a supply-demand phi-
non-budget R&D expenditures           to set up not only unitary com-      losophy become more profitable
are set to reach 1.3-1.55% of GDP     panies but also economic asso-       than a simple increase in the
in 2015.                              ciations comprising universities     production. Belarus has a high
    The second step will be the       (intellectual property), state-run   scientific potential. For example,
foundation of an electronics and      companies (production facilities     according to the Thomson Scien-
optoelectronics sci-tech park in      and technology) and private com-     tific, Belarus is ranked 20th by
Minsk as well as a biotechnology      panies (financial resources).        total cites on nanocrystals, 16th
sci-tech park Polesye in Pinsk.          In order to ensure the financ-    on photonics and 6th on photonic
    The third step will be develop-   ing of small innovation-active       crystals. According to experts,
ment of small innovation-active       companies we will promote the        the future technological and so-
companies producing high-tech         creation of venture capital organ-   cial impact of nanophotonics
commodities. For this purpose         izations (funds). The Belarusian     can be compared with the im-
it is necessary to set up sci-tech    Innovation Fund will provide         pact of semiconductor electron-
parks in all oblast capitals and      preferential financing of venture    ics on technological advance and
universities in order to involve      projects of small innovation-ac-     quality of life. It is important to
young scientists and students in      tive enterprises.                    create conditions for turning ba-
innovation activities and provide        The fourth step is the pro-       sic research results into applied
support to small companies and        motion of private research and       research products and their in-
sole traders in implementing          science-technology centers (labo-    dustrial commercialization.
innovation projects on creation       ratories), including those at mi-        For these purposes we deem
of high-tech production facili-       cro and small organizations and      it necessary to encourage the es-
ties specializing in high-tech end    also at enterprises created by fo-   tablishment of private research
products. In this respect it is ad-   reign high-tech companies. He-       centers, redeploy R&D personnel
visable to introduce amendments       re we will rely on the experien      into the research sector of manu-
                                                                                                                 Scientists of the
                                                                                                                 United Computer
                                                                                                                 Science Institute
                                                                                                                 of the National
                                                                                                                 Academy of
                                                                                                                 Sciences of Belarus
                                                                                                                 have developed
                                                                                                                 the SKIF-GRID
                                                                                                                 supercomputer
                                                                                                                 based on 12-core
                                                                                                                 processors. Chief
                                                                                                                 engineer of the
                                                                                                                 project Alexander
                                                                                                                 Lavrinenko,
                                                                                                                 Executive Director
                                                                                                                 of the Union State
                                                                                                                 program SKIF-
                                                                                                                 GRID Anatoly
                                                                                                                 Krishtofik and
                                                                                                                 engineer Mikhail
                                                                                                                 Budrevich




                                                                                                                         21
      ECONOMY OF BELARUS No. 4, 2010   www.belarus-economy.by                         INNOVATION – INVESTMENT – INITIATIVE


                                                                                                                    Developed countries are start-
                                                                                                                ing to form a new technological
                                                                                                                base of their economies using
                                                                                                                the latest achievements in bio-
                                                                                                                technology, IT and nanotechnol-
                                                                                                                ogy (fifth and sixth technological
                                                                                                                paradigms). These cross-indus-
                                                                                                                try technologies will provide fuel
                                                                                                                for a new technological break-
                                                                                                                through and ensure both the
                                                                                                                emergence of fundamentally new
                                                                                                                industries and the production
                                                                                                                of traditional goods and ser-
                                                                                                                vices that will have the proper-
                                                                                                                ties and parameters which were
                                                                                                                out of reach in previous techno-
                                                                                                                logical paradigms.
                                                                                                                    During the formation of new
                                                                                                                technological paradigms, new
                                                                                                                economic sectors, nano-industry
                                                                                                                among them, may emerge in the
                                                                                                                short and long term perspective.
                                                                                                                In addition, new enterprises will
                                                                                                                be created on the basis of brand
                                                                                                                new technologies and products in
                                                                                                                existing industries.
                                                                                                                    The main trends in the scien-
    Belarus’ space
                                                                                                                tific and technological develop-
       technologies                                                                                             ment include:
     are in demand                                                                                                  – increasing convergence of
abroad. Belarusian
 research centers                                                                                               technologies;
  not only execute                                                                                                  – increasing diffusion of mod-
domestic projects,
        but also win                                                                                            ern high technologies in the me-
        international                                                                                           dium-technology sectors of the
  tenders in space
         exploration.                                                                                           manufacturing industry;
     Pictured is the                                                                                                – growing importance of
     receiver of the
   space research                                                                                               multidisciplinary scientific re-
    center in Minsk                                                                                             search;
                                                                                                                    – growing impact of new tech-
                                       facturing industry, including in     teria is a value added per one
                                       private research laboratories.       new job (the productivity of one    nologies on management and or-
                                          The fifth step is the appraisal   new workplace should average        ganizational forms of business,
                                       of existing facilities to deter-     at least $60,000 per year). So      stimulation of the development
                                       mine the level of technological      far domestic organizations have     of flexible network structures.
                                       development (paradigm). Accord-      not used the concept of “value          Each of these trends provides
                                       ingly, government support to or-     added” in their accounting and      growth to new technologies and
                                       ganizations will depend on their     statistical reporting. Therefore,   new areas of science in terms
                                       technological level and expected     in 2011 we are planning to make     of their potential application in
                                       investment (innovation) projects     the necessary amendments to         various areas of human activity.
                                       that are proposed for implemen-      the regulations for determining     These technologies are in fact a
                                       tation.                              the value added in the account-     response to global challenges and
                                          The sixth step is the introduc-   ing and statistical reporting of    create a new technological image
                                       tion of the indicator “value add-    organizations.                      of the world.
                                       ed” in 2012 and abandoning that                                              In recent years, Belarus has
                                       of “industrial output”. During           Do you think the implemen-      carried out work to preserve
                                       the development and selection
                                       of projects to develop high-tech
                                                                            ?   tation of the technological
                                                                                development strategy will
                                                                                                                and promote scientific, techno-
                                                                                                                logical and innovation potential.
                                       enterprises and manufactures,        help Belarus advance in the         We have improved the system of
                                       one of the major economic cri-       global ranking?                     science management, expanded
     22
      INNOVATION – INVESTMENT – INITIATIVE                                         www.belarus-economy.by




                                                                                                                         ECONOMY OF BELARUS No. 4, 2010
and strengthened the regulatory      es, municipal transport, medical      tic scientific and technological
framework of science and inno-       equipment and medicines, sensor       capacity.
vation, taken measures to raise      technology.                              The next five-year priorities
the level of innovativeness of the       However, some negative trends     include the technological devel-
manufacturing industry, to de-       in science and innovation per-        opment of economy and its re-
velop the related infrastructure     sist. Innovative activity of the      structuring through the creation
and create small innovation-ac-      manufacturing industry of Bela-       of high-tech industries that can
tive enterprises.                    rus is mainly generated by a sta-     offer fundamentally new kinds
    Belarus holds leading posi-      ble group of companies where in-      of goods (services).
tions in some areas of fundamen-     novation activity is ongoing and         The main task is to create a
tal research in physics, mathemat-   is associated with the acquisition    globally competitive knowled-
ics, and new materials. The fund     of machinery and equipment at         ge-intensive, resource-conserving
of ideas and concepts, previous      their own expense. The develop-       economy by identifying promis-
and new scientific achievements      ment of the innovation economy        ing ‘technology corridors’. We
allow the Belarusian science and     implies engaging in innovative        need to accelerate the develop-
economy to successfully cooper-      activities a wide range of busi-      ment of an effective national in-
ate with the international scien-    ness entities with a wide range       novation system, and make the
tific community in such areas as     of innovations from different         maximum use of existing con-
computerization and software,        sources.                              ditions for the integration of
nanotechnology and nanomate-             The level of scientific devel-    education, science and industry,
rials, energy-efficient technolo-    opment of a country is the deter-     develop market incentives to im-
gies, genetics and biotechnology,    mining factor of competitiveness      prove the innovative activity of
environmental sustainability, ra-    of its economy. Technological         business entities.
diation safety, etc. The results     development fueled only by bor-          If we materialize everything
of applied research and develop-     rowed foreign technologies inevi-     we have planned (and we certain-
ment in recent years have helped     tably reduces the level of compet-    ly will), we will raise the Belaru-
to achieve tangible results in       itiveness. Therefore, the strategic   sian economy to a qualitatively
automotive and tractor industri-     focus for us is to enhance domes-     new technological level.
                                                                                                                 A new high-speed
                                                                                                                 tram 84300M is
                                                                                                                 assembled at
                                                                                                                 Belkommunmash.
                                                                                                                 The tram can
                                                                                                                 accelerate to
                                                                                                                 120km/h and
                                                                                                                 can be used
                                                                                                                 for commuting




                                                                                                                         23
                                               Strategy To Develop Transit Potential
                                 www.belarus-economy.by                                                         рУБрИКа
ECONOMY OF BELARUS No. 4, 2010



                                                              General description of the strategy, goals, tasks

                                   At present the complex program       country’s transit opportunities.      the transit policy, keeping the
                                   for effective use of Belarus’        Interested government agencies,       policy effective.
                                   transit opportunities in 2006-       state organizations run by the        The strategy is supposed to bring
                                   2010 is the document to guide        Belarusian government, oblast         about conditions and realize
                                   the coordinated policy for the       administrations, Minsk City Hall      measures for the sake of the
                                   optimal use of the available         will continue working to increase     development and effective use of
                                   transit potential. The program       Belarus’ transit potential in         the country’s transit potential.
                                   was adopted by Belarus’ Council of   2011-2015 as part of the 2011-        The following tasks will have to be
                                   Ministers resolution No. 700 of 26   2015 Belarus Transit Potential        accomplished to reach the goal:
                                   June 2005.                           Development Strategy. The             - improvement of transit
                                   The program has allowed              strategy was approved by Belarus’     regulation;
                                   improving transit conditions,        Council of Ministers resolution       - reconstruction and
                                   bringing them closer to those        No. 1181 of 9 August 2010. The        modernization of the national
                                   of neighboring countries. It has     efforts will be also guided by the    transit infrastructure;
                                   resulted in an annual increase in    state program for developing          - promotion of international
                                   the majority of quantitative and     Belarus’ transit potential in 2011-   cooperation in transit affairs;
                                   financial indicators that describe   2015. It will allow preserving the    - development of existing
                                   the effectiveness of using the       continuity of major directions of     financial corridors.

                                                                             Initial conditions
                                                                    (assessment of the present situation)
                                   Belarus does not have sufficient     stands at 0.4 kilometer while the     367,200 people, or 17.3%
                                   reserves of fuel, energy and raw     figure is as low as 0.2 kilometer     in comparison with 2008.
                                   materials. However, thanks to        in Russia’s European part.            Respectively earnings from
                                   well-developed infrastructure        However, there is a discrepancy       passenger transportation fell by
                                   and the attractive geographical      between Belarus (38 tonnes)           $13.9 million (21.1% down).
                                   location the country can serve as    and the European Union (40            In 2009 transit cargo
                                   a link in the trade between the      tonnes) as far as the capacity of     transportation by railroad
                                   European Union and the Asian-        national motorways to bear road       fell by 7.2 million tonnes
                                   Pacific region.                      trains with five and more axles,      (14.1% down), with earnings
                                   In 2009 Belarus earned $2,017.7      with the load per axis at 11.5        down by $57.5 million (11.9%
                                   million from transit, or 2% above    tonnes, is concerned, except for      down).
                                   the targeted amount ($1,978.4        the motorway M-1/E-30, which is       In 2009 the number of transit
                                   million). Deductions paid to         part of the second international      foreign trucks fell by 181,400
                                   the state budget amounted to         transport corridor.                   (19.8% down), with the number
                                   $330.5 million.                      In 2009 Belarus’ position in the      of transit foreign buses down by
                                   Belarus’ motorway network            World Bank’s cross-border trade       837 (5.3% down).
                                   is one of the most developed         rating moved from 134 to 129          In 2009 natural gas transit
                                   networks in the CIS. Over the        out of 183 countries. Belarus’        volume shrank by 6.8 billion
                                   last ten years more than 30,000      logistics index stands at 74.         cubic meters (13.2% down),
                                   kilometers of roads has been         In 2009 the number of transit         with earnings from natural gas
                                   built, 60% up.                       flights via Belarus went down by      transit down by $83.4 million
                                   Hard-surface roads account           14,760, or 8.6% down on 2009.         (16.5% down).
                                   for 86% of the total length of       Respectively earnings from            In 2009 oil transit went up by
                                   Belarusian roads, or 74,000          services for transit aircraft fell    2.4 million tonnes (3.7% up) due
                                   kilometers. The density of           by $7.8 million, or 13.4%.            to larger Russian oil export, with
                                   automobile roads per 1 square        In 2009 the number of transit         earnings from oil transit up by
                                   kilometer of Belarus’ territory      railway passengers fell by            $11.7 million (5.5% up).

 24
in the Republic of Belarus for 2011-2015
                     рУБрИКа     www.belarus-economy.by




                                                                                                                  ECONOMY OF BELARUS No. 4, 2010
                                              Planned measures
In line with priority tasks for the   traffic every year;                    into attracting more cargo and
development of Belarus’ transit       - 18 transportation and logistics      passenger traffic to the transport
opportunities the following           centers will be set up in              corridors that cross Belarus;
measures will be taken in 2011-       addition to ten logistics centers      - transboundary cooperation will
2015:                                 of the Belarusian company              be stepped up;
- the Customs Union legislation       Beltamozhservis, including 22          - an information and marketing
will be completed. Better customs     centers along the second and           strategy aimed at complex
control is one of the ways to         ninth international transport          development and promotion of
reduce administrative barriers in     corridors. Logistics will reduce       cashless transfers will be worked
export and import operations and      the amount of money spent to           out;
in transit;                           make and deliver products to           - the stability of the national
- the legal acts that regulate the    customers by 15-20%.                   currency will be enhanced and
operation of motorway service         - the speed of trains will be          more flexible mechanisms will be
outlets and transit will be unified   increased;                             used to shape the exchange rate;
with those used by the European       - the infrastructure of airport        - the national system for insuring
transit system;                       terminals will be built, rebuilt and   export risks will be improved,
- the infrastructure of Belarusian    modernized;                            partially through specialization
parts of the second and ninth         - the throughput of data networks      of insurance companies, which
international transport corridors     used to transit European, Russian      are authorized to insure export
will be developed. Only 70-75%        and Asian Internet traffic will        risks with state support, and
of the throughput capacity of the     be raised up to 70Gbit/s and           through maximum involvement
Belarusian automobile transport       beyond;                                of exporters in the insurance
is used at present. Only one third    - cooperation with neighboring         system;
of the throughput capacity of         countries and international            - the infrastructure of
Belarusian motorways along the        organizations in transit matters       insurance companies, including
main routes is used at present        will be promoted;                      infrastructure in small and
and allows raising transit cargo      - marketing efforts will be put        medium towns, will be developed.


                                               Expected results
The strategy for developing           expected to total:                     Belarusian resident companies
Belarus’ transit potential            - $73.8 million (42.8% up) from        are expected to pay $25.4 million
in 2011-2015 will ensure a            transit flights of foreign aircraft;   (55% up on 2010) in fees to the
quality breakthrough in the           - $691 million (35% up) from           state budget for international
country’s economic development        transit cargo and passenger            automobile transportation via
via expanding transport,              transportation by railroad;            Belarus.
communication and financial           - $392.2 million (60% up)              In 2015 road toll earnings from
corridors.                            for international automobile           public roads will make up $11.2
In 2015 Belarus is expected to        transportation via Belarus by          million (60% up), with road toll
earn about $3.1 billion from          Belarusian residents;                  earnings from the M-1/E-30
transit, 41.6% up on 2010.            - $392.2 million (60% up) from         motorway at $79 million (64.6%
Income from transit (excluding        motorway service;                      up).
revenues from oil transit and         - $10.2 million (100% up) from         In 2015 transit cargo
natural gas transit) will make up     export of communication services       transportation by railroad will
$2.4 billion, 60.2% up on 2010, or    (lease of data channels);              make 62.9 million tonnes (35%
2.6-2.7% of the Gross Domestic        - $220.6 million (no increase)         up on 2010).
Product.                              from oil transit via pipelines;        In 2015 passenger transportation
When compared with 2010, in           - $447.4 million (0.5% up) from        by railroad will amount to 2.3
2015 the volume of income is          natural gas transit via pipelines.     billion people (35% up on 2010).

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