The average salary in 1994 was $21, pension was $7. What happened to the economy during 30 years of the presidency?

Vitaly Piluy Deputy DIRECTOR of the Institute of Economics of the National Academy of Sciences of Belarus for scientific and innovative work Candidate of Economic Sciences Three decades of independent development of Belarus were fraught with a number of difficulties, it is all the more gratifying that, having overcome them, today we can talk about a balanced and sustainable economy, the ability of the state to provide everything social guarantees for its citizens. You can be amazed at the scale of the path the republic has traveled if you look at the facts. Remember: at the time of the collapse of the USSR, Belarus had one of the most dynamically developing economies with advanced industry, which is why it felt the severance of fraternal ties more painfully than others, having experienced in practice what a shortage of many vital goods was like. And then - a decline in industrial production by almost 40% and an intensification of inflationary processes. It’s hard to imagine how people in 1994 could live on a salary of $21 or a pension of $7. In such conditions of collapse and famine, the country elected its first President. Deputy Director of the Institute of Economics of the National Academy of Sciences of Belarus for scientific and innovative work, Candidate of Economic Sciences Vitaly Piluy, helped the BELTA correspondent complete the picture with facts.

Call dishonest businessmen to account

. It is a fact that after the institution of the presidency was introduced, the national economy began to gradually recover. Already in 1996, inflation was 52%, in 2006 it dropped to 7% and in 2023 reaching 5%. As a result, at the end of last year, the average salary in the country over almost 30 years increased from $21 to $636, pension - from $7 to $230.

“It was at that time that the strength of our President manifested itself, he demonstrated the ability to make independent decisions in the interests of the state,” the candidate of economic sciences expressed his opinion. “I remember well the mid-1990s with parades of crimson jackets and fingertips, with easy money. How they got it then ? Buy and sell: go abroad, bring a car - and you are guaranteed a two-year or one-year worker’s salary.”

The deputy director of the Institute of Economics of the National Academy of Sciences recalled his student years in the 1990s. During one of the classes, the teacher gave the boys and girls sitting in the audience an example of a successful businessman. There were quite a few such businessmen back then: factories produced products that were bought by businessmen and resold at a large markup.

“Suppose Kazakhstanis come to MAZ with the desire to buy 20 cars. The stated price is $10 thousand. At the plant, potential buyers are told that they do not have the goods and are advised to contact a commercial structure. They are ready to sell the cars, but at $13 thousand for Foreigners have no choice but to buy. Such a “businessman” earns $60 thousand in two days. And what will the enterprise get from such a deal, what will MAZ get from such a sale, it could increase production efficiency and raise wages? - Vitaly Piluy asks a rhetorical question.

To overcome injustice, the newly inaugurated President is limiting the functioning of such commercial structures and obliging enterprises to form branded departments for selling their own products. As a result: the added value for each unit of goods remains in the wallet of the plant, which will use the money to develop production or improve social infrastructure.

Saying “no” to unfair competition

The candidate of economic sciences did not limit himself to one example of clear and verified decisions of the HEAD of state. When Belarus was thinking about joining the WTO (World Trade Organization), the participants immediately set a number of conditions mandatory for obtaining a membership card, one of which was limiting the level of state support for agriculture, almost reducing it to zero. According to the expert, when our republic was negotiating to join the organization in 2015, the state allocated $182 per hectare of farmland for support. Belarus was required to reduce the figure, while in EU countries the average level of state support was $440. Our country's direct economic competitors - Germany , the Netherlands, Finland - gave, with similar calculations, $700, $800, $1 thousand, respectively.

“We did not join the WTO, and this was, of course, a very wise decision. We began to develop along our own path,” the economist noted. “Every year Belarus supplies products worth up to $8 billion to the foreign market. Another consequence of the chosen course is the impetus for the development of small settlements."

And then - more. Belarus has achieved significant results in production. From 1994 to 2023, the country's real GDP increased 2.8 times. GDP per capita increased 7.3 times. Labor productivity increased almost 2.4 times. Added value in industry, including construction, increased 3.6 times.

Among the best

Today Belarus ranks 2nd in the world in the production of dump trucks, 6th in the EXPORT of flax fiber, and 10th in the production of tractors. Our country also has high positions in social development ratings. Belarus ranks 69th out of 193 countries in the Human Development Index, 30th out of 167 countries in the Sustainable Development Index. Belarus has some of the lowest mortality rates for children under five years of age and in the first 28 days after birth.

Belarus ranks 55th out of 113 countries in the global food security rankings; we rank 11th among the world's largest dairy producers. Belarus ranks 1st in the world ranking for MILK spreads, 3rd for concentrated and sweetened milk and cream, 6th for cheeses, 7th for butter, 9th for powdered milk and cream, 14 1st for beef, 17th for poultry.

We have something to be proud of in the international arena. Our republic has established connections with 181 countries. A developed system of international treaties has been created. This year, Belarus became a member of the Shanghai Cooperation Organization, and an application has already been submitted to join the BRICS format as a participant.

“To develop the export of transport services, more than 60 transport and logistics centers have been created with a total area of ​​more than 1.5 million sq. km. About 60% of the products produced in the country are supplied to foreign markets,” Vitaly Piluy cited the figures. “ Export of Belarusian goods since 1995 increased from $4.8 billion to $40.2 billion, that is, more than eight times. Behind all these indicators is the long, painstaking and persistent work of the government, scientists and, of course, our President. The results were achieved thanks to his clear, wise and timely efforts. decisions. They must be valued."