Economy modernization to advance Belarus to new technological paradigm

The modernization of the national economy will allow Belarus to reach a new technological paradigm – the sixth one, which envisages the development of high nano and bio technologies. The statement was made by Andrei Tur, Deputy Head of the Belarus President Administration, at the international science to practice conference held on 18 April to discuss the state regulation of the economy and ways to improve the performance of economic entities. The conference is hosted by the Public Administration Academy under the Belarus President on 18-19 April, BelTA has learned.

Andrei Tur remarked that modernization in Belarus is now a key aspect of the economy development. “Modernization as a key avenue of increasing the competitive ability and ensuring the national security is a timely response to globalization challenges,” said the official. He underlined that modernization is not a one-time event, modernization processes go on all the time and are part of the economy life. At present 74% of the basic manufacturing assets in Belarus are deteriorated. “With this degree of deterioration and our dependence on imported resources it is necessary to take care of modernization,” he remarked.

Belarus is an export-oriented country but import accounts for 64% of every unit of export. Therefore, the reduction of the resource component in manufacturing is a key aspect of performance improvement.

Andrei Tur mentioned cycles of the economic development of the global economy. At present the transition to a new technological paradigm, the sixth one has started. Researchers, including those in Belarus, Russia, and other countries, state that the transition began in late 2012-early 2013 and will last till 2018. “These five years will be a kind of transition window that creates unique conditions for any state,” said Andrei Tur. The countries that lag behind should grab the opportunity and jump to the modern level of social and economic development. “If we break through into the sixth technological paradigm, then it will objectively guarantee our very stable social and economic development for the next 40-50 years,” concluded the Deputy Head of the Belarus President Administration.

Meanwhile, a drastic increase in the scale and quality of the state involvement in the economy development is required. “Whether we want it or not but many admit these days, particularly after the crisis of 2008-2009 that the role of the state is on the rise,” said Andrei Tur. There are several financial and resource conditions in the transition from one technological paradigm to another where the role of the state is irreplaceable, he believes.

Rector of the Public Administration Academy Anatoly Morozevich also mentioned the topicality of the problems the conference was discussing. “Crisis phenomena in the global economy only grow more pronounced. Not only major corporations but entire countries become financially insolvent,” he remarked. The change of the technological paradigm is one of the reasons. But there are more reasons than that. “The disease becomes more acute as the paradigms change,” said the scientist. This is why those survive, who manage to radically upgrade the economy. Apart from that, economics scholars believe it is necessary to introduce modern effective systems of state administration. The reports presented at the conference are a proof of that.

The conference gathered 77 representatives from eight countries including Russia, Ukraine, Kazakhstan, China, Poland, and Estonia. Participants of the conference are expected to discuss the use of innovations for stimulating national economies, the attraction of foreign investments for raising the competitive ability of enterprises, the state regulation of the banking industry, mechanisms to finance and modernize an economy, the ideology of state administration.