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EBRD Board approves new strategy for Belarus
The Board of Directors of the European Bank for Reconstruction and Development has approved a new strategy for Belarus that takes into account last year's elections and the serious concern of the Bank's shareholders over the political situation and slow pace of its transition to a market economy.
The two-year strategy, following an interim strategy adopted in early 2001, urges Belarus to return to the region's political and economic mainstream and makes the degree and nature of the EBRD's engagement in that country clearly dependent on the course of action chosen by the Belarus authorities themselves.
The new strategy and the text of a letter from EBRD President Jean Lemierre to the President of Belarus are published on the EBRD Web site www.ebrd.com.
The strategy expresses serious concern over Belarus's compliance with Article 1 of the Agreement establishing the EBRD, which requires countries to be committed to and applying the principles of multi-party democracy, pluralism and market economics.
The document notes that the investment climate remains one of the most difficult in the region, and that the authorities are still reluctant to address the problems identified by the international community or to embark on the path towards a market economy.
The strategy envisages a three-step system under which the EBRD will support international efforts to foster progress towards democracy and market economics by remaining engaged in Belarus.
But unless the authorities move forward in allowing civil society to operate and market reforms to take root, it will be impossible for the Bank's involvement to go beyond a basic scenario under which it will simply monitor existing projects and develop carefully selected private-sector initiatives, particularly those that support small- and medium-sized enterprises.
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