Posts

, , ,

Understanding Poverty in Belarus

Poverty in Belarus
The Eastern European post-Soviet state of Belarus has had a tumultuous, bumpy ride in the last 30 years. A long-treasured satellite of the Soviet Union for almost the entirety of the 20th century forced the country to adopt massive changes when it broke off from the Soviet Union when it collapsed in 1991. Since then, one man has ruled this small country with an iron grip.

Alexander Lukashenko has been a dictator-like figure masquerading in a phony democratic society. He has been drawing social, economic and political policies in Belarus for the last three decades since the fall of the Soviet Union. Though he did reduce poverty according to official government statistics, there has been a high fluctuation in actual figures related to the poverty rate in Belarus since he took office in the early 1990s. Understanding the underlying causes and remedies of this poverty in Belarus is a complex affair, however, it is clear that certain political, economic and social actions have impacted the country in many ways.

Poverty in Belarus

Being one of the poorest countries in the geographical limits of Europe, the inability to properly take care of its citizens hampered Belarus. Showing its signs of instability, the Belarusian system creaked heavily during a brief two-year recession during 2015-2016. Within a matter of months, the share of the population living below the poverty line increased by three percentage points while in rural areas that number doubled. This fluctuation shows an economy and political system that is not yet resilient to normal market pressures. Additionally, according to a UNDP report, Belarus ranked in the bottom third in countries on the metric “socioeconomic sustainability” which predicts the longer-term impact of economic growth factors and the sustainability of economic output.

Compounding this dilemma, a comprehensive study concluded that much of Belarus’ economic growth in the past 20 years is quite vulnerable, citing both demographic concerns about aging and continuous reforms in the utility sector, which employs much of the workforce of the country. The myriad of challenges facing Belarus is not just abstract downstream economic impacts. President Alexander Lukashenko hampers the prosperity of his own citizenry in many ways through his brash leading style and the specific intricate political decisions that impact his citizens.

Mitchell Orenstein’s Views

According to the University of Pennsylvania professor of Eastern European Studies, Mitchell Orenstein, the Lukashenko regime “is certainly repressive. His regime regularly beats peaceful protesters and threatens and imprisons and tortures opposition presidential candidates.” This type of social order is not conducive to finding the best public policy that helps the most people, but rather a closed-off system that is resistant to change–which is important when advancing important economic interests that lift people out of poverty in Belarus.

Orenstein also noted that many Belurrusians tolerate much of this behavior, as President Lukashenko argues, “Belarus must have a powerful dictator to prevent invasion from outside forces, noting Belarus’s World War II history, and Russia’s desire to undermine Belarusian sovereignty. He also blames NATO for seeking to subdue Belarus.” This provides an underpinning of legitimacy that was successful at holding off dissatisfaction among his people, but as poverty trends stagnate, that dissatisfaction may inevitably boil over.

Improvements in Belarus

Upon examining the raw data, one might come to the conclusion that Belarus has been dealing with its poverty problem quite well since Lukashenko took office. In the year 2000, 41.9% of the population was below the national poverty line while in 2013 that number astoundingly fell 36.2 percentage points to 5.7% below the poverty line in the country. This was due to mass mobilization of the public sector for manufacturing–mainly to fuel the growing Russian economy at the time. Moreover, massive investments from multilateral organizations, such as the World Bank, spurred the production of critical infrastructure all around the country and international investment.

The World Bank’s Efforts

With the 90 million Euro investment from the World Bank in 2019, coupled with numerous other investments like the UNDP project, Belarus is making extraordinary strides in not only fighting poverty but also developing and cultivating the systems that attract foreign investment. Moreover, innovative NGOs are tackling every angle of the poverty cycle in the country. Organizations like Ponimanie are fighting to protect children’s rights and ensure positive outcomes for vulnerable groups of children.

This type of organization is crucial for breaking the cycle of poverty and providing opportunities to succeed in disadvantaged communities in the country. In addition, poverty in Belarus has received aid from the fact that Belarus’ main trading partners–like Russia–have experienced an economic boom as well. This reaction sets a favorable sequence into motion that spurs production in its energy and agricultural sectors lifting people out of poverty.

Looking Ahead

Importantly, while Belarus has made great strides in its ability to fight poverty (as shown by the successful years of positive economic policy and results), many of the trends have leveled off during recent times. Life expectancy, education and GNI per capita all increased dramatically over the course of the first years of the 21st century while then plateauing into the 2010s. This certainly shows progress but also highlights the inability of the Belarussian system to maintain and replicate the growth and prosperity that the country experienced 15 years ago.

While poverty in Belarus is most certainly an ongoing threat, understanding some of the more intricate causes of instability and continued poverty are important for determining the outcome of millions in this Eastern European country in the future.

– Zak Schneider
Photo: Flickr

Top 10 Facts About Poverty in Belarus

Top 10 Facts About Poverty in Belarus
Belarus is a country in Eastern Europe bordering Russia and Ukraine. Instead of integrating with the rest of the region, the country, known popularly as “White Russia”, is the last dictatorship in Europe. In the text below, top 10 facts about poverty in Belarus are presented.

Top 10 Facts about Poverty in Belarus

  1. In the 1990s, Belarus was one of the poorest countries in Europe due to the collapse of the USSR socialist system. Around 50 percent of the population lived below the poverty line at the time. It concerned the population so much that the campaign slogan of Belarus politician Aliaksandr Lukashenka in 1994 was to “take people away from the abyss”. He was a presidential candidate and he won the election that year.
  2. The proportion of people living in poverty fell from 60 percent in 2000 to less than 1 percent in 2013. This decrease in poverty headcount outpaced the general rate in Europe and Central Asia that started with 47 percent of people living in poverty in 2000 and decreased to 14 percent in 2013.
  3. The highest rate of economic growth that Belarus underwent was during the 2006-2011 period when many countries in Europe experienced the effects of the financial crisis. The bottom 40 percent of the people in most of the European countries saw their incomes fall massively, but in Belarus, the expenditures amongst the bottom 40 percent actually increased.
  4. The main causes of economic growth have been Russia’s favorable pricing of energy as well as economic growth that country’s nearby trading partners achieved. This fact heavily stimulated the agricultural and mining industries.
  5. Not everyone has reaped the benefits of this so-called “inclusive” growth. Recently, the distribution of wealth has begun to favor the already rich people with the poorest people still remaining economically immobile. In 2010, 20 percent of the richest Belarusians owned 36.7 percent of the total wealth. In 2016, this figure has jumped to 38.8 percent.
  6. Unemployment is a major problem in Belarus especially considering that less than 10 percent of unemployed people are not receiving welfare benefits. The benefits themselves are meager in real terms, ranging between $12 to $24, according to economist Aliksandr Chubrik.
  7. There is also a widening gap in the incomes between those who live in Minsk, the capital city of the country, and the outlying regions. According to the data released by the government, the poor constitute only 1.4 percent of the population in Minsk whereas they constitute 5.9 percent of those in the Homiel Region.
  8. In 2017, plans were announced to introduce a “social parasite tax” for the unemployed to discourage them from being work-shy and to instill discipline in those without jobs. It was first signed into law in 2015, then known as “freeloaders tax” that proposed a fine for people who went 6 months without a job. If one failed to pay the levy or find a job within 6 months, that person would be jailed.
  9. Belarus also faces challenges in containing tuberculosis (TB) and HIV/AIDS crises. Fortunately, the UNDP is providing health care assistance to those affected in the country. The government has recently received grants from the Global Fund to Fight AIDS and the Ministry of Health in Belarus.
  10. Human trafficking in Belarus has been in the constant decrease. This has been achieved by collaboration between the World Bank and the Government of Belarus and by creating the Country Partnership Strategy. This strategy was designed to increase employment in the energy, transport, forestry and public finance management sectors to attract more people into those that risk their lives in trafficking.

Despite the reforms and efforts that have been achieved, Belarus is in desperate need of internal and external reform. It needs to create a stable social security system that will allow social mobility rather than punishing people for being poor and reaching a more equitable society for all.

– Maneesha Khalae

Photo: Flickr

, , ,

Progress Made in Addressing Poverty in Belarus

Poverty in Belarus
The prevalence of poverty in Belarus has made a significant shift in the past decades, for the better. The number of people living in poverty dropped from 60 percent in 2000 to less than 1 percent in 2013. This dramatic change was largely due to an economic boom in Belarus. Fast forward a few years later to a period of less economic growth and one in which poverty is a problem once more. The following is a look at the progress made in addressing poverty in Belarus once more.

Current Economy in Belarus

Great economic growth has allowed Belarus to preserve high levels of employment and good wages for workers. A recent recession, however, has contributed to rates of poverty climbing once again. The economies of the Vitsiebsk region declined by 3.2 percent during the first half of 2017 and the Mahiliou region’s declined by 2.6 percent. In 2014, the average Belarus citizen made $7,500 annually but now the average Belarusan makes $4,000.

According to the World Bank, there are four major factors that contribute to poverty:

  • living in rural areas
  • youth
  • unemployment
  • lack of education

Unemployment and Current Poverty Crisis

In Belarus, unemployment is the most prevalent factor that affects poverty. Many complain that Belarus does not have an adequate social protection program for the unemployed. Additionally, the World Bank deduced in 2012 that the reported employment rate in Belarus, 0.5 percent, was actually seven times higher. Many Belarusians opt to not register as unemployed precisely because of the lack of government benefits. It is due to this that the World Bank reported the unemployment numbers as so skewed.

In the winter of 2017, around 20,000 Belarusians gathered to march against their government’s tax on the unemployed. The law required people who work less than 183 days out of the year to pay the government $250 each year. Thanks to the protests, however, the Belarusian government opted not to require citizens to pay that year. Unemployment is clearly still contributing to poverty levels, as can be seen from the number of people who protested the unemployment tax. Those living below the poverty line were not being provided for by their government.

Thankfully, the unemployment tax was officially canceled in January of this year. Belarusian President Alyaksandr Lukashenka canceled the tax, announcing that instead, unemployed citizens will have to pay in full for government services and they will not receive subsidies.

A Focus on the Positive

Belarus would benefit substantially from alleviating the issue of poverty in the nation. With poverty comes a higher rate of disease and a perpetual cycle that locks families into low-income statuses for generations. Although poverty in Belarus has ameliorated significantly, the country is not entirely out of the dark. The good news, however, is that conditions in Belarus are significantly better than the 1990s when poverty levels were much higher.

The amount of people living in poverty in Belarus is now 10 times less than it was in the 1990s. The country has come a long way but must continue to do everything in its power to keep poverty levels low. The government is a powerful tool in this fight, and they have the ability to create instant change such as amending laws surrounding the benefits unemployed people receive.

With a lack of government assistance, those unemployed in Belarus will have no ability to mobilize themselves out of poverty. An amendment to the program provided for the unemployed in Belarus could considerably contribute to progress against poverty. This is just one of many steps to be taken that would positively influence poverty rates in Belarus.

– Amelia Merchant
Photo: Flickr