ant); Charge d'Affaires CHEREPANSKY
chancery: 1619 New Hampshire Avenue NW, Washington, DC 20009
consulate(s) general: New York

Diplomatic representation from the US:
chief of mission: Ambassador Daniel V. SPECKHARD (recalled to
Washington in June 1998; Charge d'Affaires Randall LE COCQ)
embassy: Starovilenskaya #46-220002, Minsk
mailing address: use embassy street address

Flag description: red horizontal band (top) and green horizontal
band one-half the width of the red band; a white vertical stripe of
white on the hoist side bears the Belarusian national ornament in red

Economy

Economy--overview: Belarus has seen little structural reform since
1995, when President LUKASHENKO launched the country on the path of
"market socialism". In keeping with this policy, LUKASHENKO
re-imposed administrative controls over prices and currency exchange
rates and expanded the state's right to intervene in the management
of private enterprise. This produced a climate hostile to private
business, inhibiting domestic and foreign investment. The Government
of Belarus has artificially revived economic output since mid-1996
by pursuing a policy of rapid credit expansion. In a vain attempt to
keep the rapidly rising inflation in check, the government placed
strict price controls on food and consumer products, which resulted
in food shortages. Long lines for dairy products, chicken, and pork
became common in the closing months of 1998. With the goal of
slowing down the devaluation of the Belarusian ruble, LUKASHENKO in
1997 introduced a new, complex system of legal buying/selling hard
currencies. The new "command" system proved to be totally unworkable
and resulted in galloping devaluation. In addition to the burdens
imposed on businesses by high inflation and an artificial currency
regime, businesses have also been subject to pressure on the part of
central and local governments, e.g., arbitrary changes in
regulations, numerous rigorous inspections, and retroactive
application of new business regulations prohibiting practices that
had been legal. A further economic problem is the sizable trade
deficit.

GDP: purchasing power parity--$53.7 billion (1998 est.)

GDP--real growth rate: 7% (1998 est.)

GDP--per capita: purchasing power parity?$5,200 (1998 est.)

GDP--composition by sector:
agriculture: 20%
industry: 43%
services: 37% (1997 est.)

Popula