A.Bruk: “Belarus occupies the 48th place in investment mobilization potential according to the world rate”

In 2007 global investment flows continued growing. That was reported by the UN representative in the Republic of Belarus Antonius Bruk at the presentation of the UNCTAD Report on world investments 2008.

In 2007 global investment flows continued growing. That was reported by the UN representative in the Republic of Belarus Antonius Bruk at the presentation of the UNCTAD Report on world investments 2008.

According to him the inflow of outward investments has increased by 30% in comparison with 2006. However, according to experts’ estimate, this process will slow down in the current year that can be explained by the world financial crisis.

“As it is underlined in the UNCTAD Report the Belarusian rates in the system of foreign investment mobilization are growing constantly, - said the UN representative. –The inflow of the direct foreign investment to the Republic of Belarus has increased by 5 times – from 354 million dollars in 2006 to 1 billion 772 million dollars in 2007. This increase exceeds greatly the average rate among the CIS countries and countries of the world in general. However, despite the high increase, in 2007 in Belarus the inflow of direct foreign investments made up only 12, 9% from the gross fixed capital formation. For comparison for CIS countries this rate made up 19, 7% and the global rate –14, 8%. The same concerns the accrued reserves of direct foreign investments of Belarus. In 2007 they made up 4, 5 billion US dollars, but it is still only 10% of GDP. In CIS countries this rate equals on average 26% and on average world scale - 27, 9%”.

As Antonius Bruk pointed out the Report also ranges the states in accordance with two indexes –one for factual mobilization of investments and the other for potential mobilization of investments. According to the first one Belarus takes the 95th place among 141 countries. What concerns the potential of mobilization of investments, this country takes the 48th place.

“In the Report Belarus belong to the group of states that are working under their real potential in the sphere of mobilization of investments, -- said the UN representative. – Meanwhile I’d like to point out that to this group also belong such countries as Russia, China and the USA, so there is no reason to worry. In the report there is also a group of so called “forward-countries” according to the high potential and real mobilization of foreign investments to the economy. Many of CIS countries and West Europe countries belong to this group. I sincerely hope that Belarus will soon join this group. This depends to a great extent on the Government’s efforts in the sphere of improvement of investment attractiveness of the country”.

According to Antonius Bruk today UN and Belarus are implementing the joint project on the preparation of the investment policy review. It will be soon published. The review will cover the recommendations on the improvement of the potential of Belarus in investment mobilization and their actual increase.

“The UNCTAD report shows that today there are certain spheres that require significant additional capital investments, both in developing countries and in countries with transition economy, - said the UN representative in Belarus. – Traditionally the governments of these countries are not in hurry to such infrastructure brunches as power production, telecommunications, water supply as well as transport automobile and railway systems, airports and seaports. But during the last decade the situation has changed. Today the country often acts as a regulator in infrastructure development involving more and more foreign companies in this process. I’m convinced that in Belarus, in the country situated in the centre of Europe that pays much attention to its transport infrastructure development, the Government will take into account the UNCTAD recommendations on investment mobilization in this sphere”.