Economic growth often depends on the structure of the national economy, i.e. the ratio of industries and spheres that have developed in the country’s economy. It is either inhibited or stimulated by it.
The main objective of structural adjustment in the Republic of Belarus can be formulated as follows:
formation of a sustainable, sovereign national economy capable of ensuring the growth of the vitality of the people of Belarus; giving the economy of Belarus a civilized character, access to the main parameters of functioning, which are characteristic of highly developed Western countries.
Among the main circumstances that affect this process are:
scientific and technological revolution, which provides an opportunity not to repeat all the “zigzags” of the technological development of the West, where there were negative consequences; integration processes within the CIS; the need to take into account the specific characteristics of the national economy, including the degree of availability of natural resources; the need for greater inclusion in world economic relations; search for alternative sources of raw materials and energy, development of export potential.
When determining a specific structural adjustment program, it is necessary to take into account, firstly, the possibilities of the budget to finance the relevant projects (and they are very limited); secondly, the prospects for the participation of foreign and national (private) capital; thirdly, the consequences of the inevitable temporary decline in production and the expansion of unemployment; fourthly, the share of unprofitable enterprises in many industries.
To maintain the standard of living of the population of the republic, the production of consumer goods is of priority importance. Agriculture provides 22% of GNP. But at the same time, the losses of agricultural raw materials are great.
In industry, there is a large proportion of enterprises that complete the processing cycle and are designed for the needs of many other republics. The same industries that should meet the needs of the republic and the balance of its economy have not yet received proper development. Thus, the mechanical engineering of Belarus is poorly adapted to meet the needs of agriculture, light, food, woodworking industries. All of this requires structural adjustment.
In conclusion, let us touch upon the following question: is economic growth always desirable? Are there limits to economic growth? In recent years, a number of scholars have questioned the need for continued economic growth for countries that have achieved a level of well-being in which the primary needs of the majority of the population are met. The main arguments against further increasing the rate of economic growth are as follows.
Economic growth based on industrialization multiplies the negative side effects:
increases the load on nature; degrades the human environment.
As a result of the intensification of production, the gas contamination of the air is growing, industrial and household waste is increasing, with the natural processing of which nature cannot cope. Therefore, according to some scholars, when a certain level of well-being is achieved, further economic growth should be restrained.
And yet, for all the costs that actually accompany economic growth, the following must be borne in mind. The scientific and technological development, on the basis of which modern development proceeds, not only conceals negative consequences, but at the same time opens up technical as well as economic opportunities for their mitigation and overcoming (the share of expenditures of economically developed countries on environmental protection is constantly growing). It is scientific and technological progress that will solve many environmental problems of economic growth. The potential for the growth of material and financial resources on the basis of NTP in the long term is almost limitless. Economic progress will make it possible to simultaneously solve the problems of the development of production, the problems of increasing the well-being of citizens, as well as to allocate more funds to save nature, to implement environmental measures.