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Development of the Regions: Numerous State Programmes, Prosperity of Unemployment

17.11.2008  |  Publications

There are 44.1 thousand unemployed in Belarus according to the official statistics data. However in reality this number is significantly higher in the villages and small towns due to the fact that people do not register as unemployed there at the Employment Centres for Population, believing there is no point in that.

This year the Government identified 23 towns with steady high level of unemployment where it was ordered to lower the tension at the labour marked in the course of the year. It concerns such towns as Gantsavichi, Mikashevichi, Belazersk in Brest Oblast; Pastavy, Novalukoml, Varapayeva in Vitebsk Oblast; Aktyabrsky, Rechitsa, Kamaryn in Gomel Oblast; Glusk, Khotimsk, Krasnapolle, Krychau in Mogilev Oblast. 346 ‘problem’ enterprises and organizations were identified in small and medium size towns of Belarus. A leading expert of the Ministry of Labour and Social Welfare Galina Trafimenka says that the State Progremme of the previous year listed 29 small towns where facing difficulties finding a job. This year Programme lists 23 of them, “the situation has stabilized in six of them. One should not talk about solving all the issues there however about 10 years ago in Gantsavichi, Brest Oblast, the unemployment rate reached 10%, while today’s rate is around 3-4 %. Indeed this level is still high, however the progress is obvious”, said Mrs. Trafimenka.

 

Regional Development Programmes are under special control of the President Lukashenko

 

“This is a global Programme and noone should disregard it. Its implementation is under very strict control”, said the President Lukashenko in the course of the specialized seminar for the regional leaders “Revival of small towns and settlements, priority goal of the social and economic development of the country”. “The population should be involved in solving the outlined issues at a maximum level. Everyone has to work for implementation of this Programme. People have to realize that it is done for our children and grandchildren”, said the President. The President assessed that there was a certain dis-balance in the speed of development between industrial centres and small towns.

 

The issue of unemployment at the peripheral level is planned to be solved via creating new work places. In particular it concerns areas of services and trade. It is also envisaged that foreign investment should be attracted in the regions. Also, the result should be achieved via provision of subsidies and interest-free loans from the Employment Funds for opening private businesses.

Naturally, large new industrial enterprises are rarely built in small towns. For instance, there is a news print plant in Shklov. However it faces certain problems too. Yet on 16 August 2008 Aleksandr Lukashenko was present in Shklov at the ceremony of the opening of the plant. However the plant is still not fully operational, regardless of the fact that all the necessary managerial staff has been hired.

“People should help themselves”

In Gantsevichi, for instance, there are no large industrial enterprises at all, only food production enterprises, wood-processing plants and some other industries of local significance. There was only one operational enterprise – Standardized Large-Panel House-Building Plant. However in October the work at the plant has been suspended timely. It was linked to the lack of raw and other materials. Form, armature and wood-processing entities, canteen and goods stock are not operational. ITP are only working for three days a week. The modernization of the plant was planned for this year as well as creation of 57 new working places. However so far people were only leaving their jobs at the plant. There were 262 persons working there in January and 201 in October. Those who were yet working there in September had to be paid out benefits in order to reach the minimal level of living – 220, 080 Br.


In October in the course of the meeting of the regional executive committee, officials and deputies analyzed the level of implementation of the local investment programme in 2006 – 2010, which envisaged the creation of 1,000 working places. In 2008 it was planned that two foreign enterprises will be opened. However only one joint stock company with Lithuanian capital opened, “Vetrya”. Its primary specialization is on gathering and processing cranberries, berries and mushrooms. It employs only 20 people. The second, enterprise on polyester production “Troika-by” which was planned to be opened by the Polish investor, unfortunately is not fully operational yet. So far it employs only a director.

 

In the course of the past 7-8 years all large industries closed down in the city. In summer and autumn, local forests and marshes provide people with an opportunity to make some money on mushrooms and berries for sale. Cranberries are particularly valuable. Men are massively leaving for making money to Russia and Ukraine.

 

A similar situation is in many other small Belarusian towns. One does not hope for support from the state in rural areas, people are surviving on their own and looking for opportunities to make money themselves. “People should help themselves and they have all the chances for that”, says an activist from Braslav Kastus Shydlovsky. People are active in developing eco-tourism given the beauties of the local nature: Braslav region is the region of blue lakes. A huge number of people are working as construction workers, guards and in the tourist services area. People are also making money in the area of border trade due to the vicinity of Lithuania and Latvia. That is how the European Union assists the local inhabitants of the bordering areas…

 

Ludmila Korsak

info@eurobelarus.info

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