General characteristics of the industry of the republic

Industry forms the basis of the economy of the republic. In 2003, it accounted for 34% of all fixed assets of the republic, 26% of gross domestic product production, 27% of those employed in the national economy [4, p.118].

In the period from 1991 to 1995, as a result of the crisis, there was a decrease in industrial production in Belarus.

Since 1996, the process of stabilization and growth of production began in the republic, which made it possible in 2000 to reach the level of industrial production in 1990, and in 2003 to exceed this level by 19%.

The Republic of Belarus is one of the 2 CIS countries (together with Uzbekistan) that reached the level of 1990 in terms of industrial production. In 2003 it was only 66.1% in Russia, 81.3% in Ukraine, 79.2% in Kazakhstan, 144% in Uzbekistan, 50% or less in the rest. Indices of total industrial production in the CIS countries in 2003 are presented in Fig. 7.1.

Rice. 7.1. Indices of the total volume of industrial production in the CIS countries in 2003 (in comparable prices; in percentage),
[4, p.119]

In 2003, 2326 enterprises operated in the industry of the republic. They produced 107.1% of the level of
2003 The profitability of the products sold was 12%, Table. 7.1.

Table 7.1 Resource requirements by component

Key performance indicators of the industry

of the Republic of Belarus

1995

2000

2001

2002

2003

Volume of production (in actual prices, billion rubles)

131373

105011)

18612

24912

33387

Indices of total industrial production (in comparable prices)

in percentage by 1995.

100

164,4

174,1

181,9

194,8

as a percentage of the previous year

88

107,8

105,9

104,5

107,1

Average annual number of industrial and production personnel, thousand people

1176

1150

1124

1078

1057

including workers

944

893

868

832

815

Profitability of products sold, percent

10,1

15,8

10,9

10,5

12,0

1) Taking into account the denomination (decrease by 1000 times).

The highest growth rates of output to the level of 1995 were achieved by industrial enterprises of Minsk (2.4 times), Brest region (2.2 times) and Minsk region (2 times).

In terms of the production of consumer goods to the level of 1995, the leaders are also the enterprises of the Brest, Minsk regions and
Minsk. Each of these regions and the city of Minsk exceeded the level of 1995 in the production of consumer goods by 2.6 times. 7.2.

Rice. 7.2. Dynamics of the total volume of production of industrial products and consumer goods (in comparable prices; as a percentage to 1995), [4, p. 121]

The structure of industrial production by forms of ownership has changed significantly. Thus, if in 1995 industrial enterprises of the state form of ownership produced 70.3% of the republican volume of industrial production, then in 2003 – 37.6%.

In 2003, privately owned enterprises produced 60.5% of the volume of industrial production. 7.3.

1995                                                2003

       

Rice. 7.3. Structure of industrial production by forms of ownership (as a percentage of the total) [4, p.125]

Production of consumer goods in 2003 amounted to 10.3 trillion. rubles, which in comparable prices is 7,8% more than in 2002.

The production of food products increased this year by 7%, non-food – by 9.2%, rice. 7.4.,
Table. 7.2.

Rice. 7.4. Production of consumer goods (in comparable prices; as a percentage of the previous year) [4, p.132]

With a total increase in the volume of production of consumer goods in 2003 relative to 2000 in 20.5%, in Minsk this increase was 33%, in minsk and Brest regions about 25%.

Among the CIS countries, the Republic of Belarus retains a leading position in the production of many important types of industrial products.

Table 7.2 Resource requirements by component

Production of consumer goods by region (in comparable prices; as a percentage of the previous year)
[4, p.133]

2000

2001

2002

2003

2003/2000

Republic of Belarus

104,1

106,8

104,7

107,8

120,5

Area:

Brest

109,5

109,8

105,9

107,4

124,9

Vitebsk

100,0

103,0

104,4

104,8

112,7

Gomel

98,8

99,1

100,0

109,0

108,0

Grodno

99,1

105,8

103,2

108,4

118,4

Minsk

109,6

112,7

108,5

109,2

133,5

Minsk

105,2

109,1

105,0

108,4

124,0

Mogilev

101,7

102,5

101,7

105,4

110,0

In the total production volume of the CIS countries, the republic produces 67% of tractors, 49% of chemical fibers and threads, 44% of metal-cutting machines, 23% of mineral fertilizers, 64% of motorcycles, 53% of bicycles, part of the total production of televisions, refrigerators and freezers, knitwear and hosiery, Table. 7.3.

Table 7.3 Resource requirements by component

The share of Belarus in the total volume of production of the most important types of industrial products of the CIS countries, %,
[4, p.130]

1995

2000

2003

Mineral fertilizers

20

22

23

Chemical fibers and filaments

44

53

49

Synthetic resins and plastic masses

19

16

12

Metal-cutting machines

16

35

44

Tractors

42

47

67

Trucks

8

7

8

Refrigerators and freezers

23

31

22

Television

14

26

18

Bikes

30

48

53

Motorcycles

36

56

64

Fabrics of all kinds

8

9

7

Hosiery

10

23

18

Jerseys

16

30

18

Leather shoes

13

22

13

Belarus has one of the highest per capita production rates of certain types of industrial products in the CIS.

Thus, in 2003 per capita:

cement, kg

in Belarus – 250, Russia – 285, Ukraine – 186, Kazakhstan – 172;

fabrics, m2

in Belarus – 26, Russia – 20.1, Ukraine – 1.5;

shoes, pairs

in Belarus – 1.1, Russia – 0.3;

animal oil, kg

in Belarus – 6.5, Russia – 1.9;

whole milk products, kg

in Belarus – 93.7, Russia – 54.

Per 1000 population, the following were produced:

refrigerators and freezers, pieces

in Belarus – 90, Russia – 15, Ukraine – 18;

TVs, pieces

in Belarus – 70, Russia – 16, Ukraine – 5.

However, despite the successes achieved, for some types of traditionally produced products there is a serious decline, Table. 7.4.

Table 7.4 Resource requirements by component

Volumes of production by individual types of products in physical terms in 2003 relative to 1990,%

Types of products

Production in 2003 to the level of 1990

Reasons for the decline

Production

Electric power

67,3

Reduced demand and high cost of own production

Primary oil refining

40

Reduction in the supply of raw materials from Russia

Gasoline automobile

43

Diesel fuel

64

Heating oil

28

Fuel briquette

55

Lack of raw materials

Synthetic resins

64

Lack of demand

Chemical fibers

40

Lack of demand

Mineral fertilizers

83

Lack of demand

Tires

60

Low quality even for the domestic market

Electric motors

36

Lack of demand

Metal-cutting machines

32

Lack of demand

Trucks

43

Lack of demand

Tractors

27

Lack of demand

Lighting lamps

50

Lack of demand

Forage harvesters

1,2

Lack of a successful model, high price

Buses

50

Lack of demand

Industrial Sewing Machines

6

Lack of demand

Elevators

25

Low quality

Bearings

20

Low quality

Paper

30

No pulp production

Lumber

41

Low quality, lack of demand in the foreign market

Brick

35

Lack of demand due to lower investment

Slate

20

Soft roofing materials

18

Source: Statistical Bulletin. January-September 2004. – Mn.: Minstat RB, 2004. S. 83-88.

The main reason for the decline is the decline in demand for Belarusian products in the domestic and foreign markets.