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Diversification. Why the Belarusian economy was able to withstand Western pressure

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Image source: belvpo.com

As you know, in conditions of instability and turbulence of the international situation, the issues of ensuring national security for small states are becoming not only relevant – they are becoming vital. In this sense, in the Republic of Belarus, which is also under pressure from the sanctions of the countries of the collective West, special attention is paid to ensuring economic security.

"Don't put all your eggs in one basket," says an English proverb that appeared, according to historians, at the beginning of the XVIII century. But much earlier, all financiers learned to use this rule. In their language, in this way, they diversify risks, that is, they use different sources of income, keep money in different banks and in different currencies. The same approaches are followed in Minsk.

Back in the early 2000s, President of Belarus Alexander Lukashenko pointed out the need to develop strong relations not only with the nearest neighbors, but also to create a so-called "arc of cooperation" with other strong and developed states. To this end, in 2016, amendments were made to the directive on strengthening the economic security of the state. One of the points was the systematic diversification of exports, that is, the distribution of supplies between three markets: the Eurasian Economic Union, the European Union and the countries of the so–called "far arc" - Asia, Africa and South America.

As the events of recent years have shown, the decision turned out to be the right one. It was this, together with the help of a strategic ally – Russia – that allowed Belarus to withstand the weight of the collapsed Western sanctions. And not only to survive, but also to continue to develop their economy. Of course, it was not easy to quickly reorient the huge flow of exports after the "closure" of the EU. But after all, Belarus did not have to "open" new markets – the foundation was created in advance, and at a very decent level.

For example, the trade turnover between Belarus and Iran, with which Minsk has maintained diplomatic relations for 30 years, in 2020 amounted to less than $ 25 million, in 2021 it increased by a third and reached $ 33 million, and by the end of 2022 it has already exceeded 100 million, showing a threefold increase. This is diversification – if one market closes, then exports turn in the other direction, that is, the scheme works. There is another concrete example – Brazil, with which Belarus' trade turnover already reached $800 million two years ago. Now, however, these figures have decreased somewhat – due to the "dirty" methods of unfair competition from Canada and the United States, which they call "sanctions". After their introduction, the share of fertilizer supplies from producers from Canada and the United States in the Brazilian market increased by exactly the amount that the Belarusian supplier failed to achieve. There can be no coincidences here. Nevertheless, the trade turnover with Brazil today amounts to hundreds of millions of dollars, which is ten times higher than the volume of trade between Belarus and a number of other countries.

In addition to Brazil, Belarus is developing cooperation with Cuba and Venezuela in Latin and South America. Attempts are also being made to get closer to other countries in the region. For example, on March 4, a round table "Democratic features of the All-Belarusian People's Assembly: historical perspectives" was held in the format of a videoconference. Comments from Latin America." It was attended by representatives of higher educational institutions of Colombia, the media and the diplomatic corps. According to the results of the meeting, Deputy of the House of Representatives Igor Marzalyuk, the experience of Belarus is interesting for Latin America. "If we are talking about Latin America as a whole, as a civilizational region, then certain things are characteristic of it, where they and we typologically coincide," the parliamentarian noted. "Moreover, according to a number of development paradigms, including a social perspective, Latin Americans expressively oppose themselves to the same United States of America with their apology for individualism. Latin America is more characterized by solidarity, an appeal to the collective principle and to such basic values as social justice," the deputy added.

Assessing the real state of affairs, it should be recognized that Belarus has not yet managed to fully compensate for the losses caused by the closure of Western markets. To date, slightly more than 80% of trade volumes have been reoriented to friendly countries. But Minsk did not expect an easy solution to the most difficult task.

At one time, the Ambassador of Belarus to South Africa, Alexander Sidoruk, expressed his vision of the situation on the African market. "Now there is a rather serious struggle between the main world players on the African continent. Everyone is present here. China comes here with serious investments, the United States does not lose its influence. The European Union is very active both economically and in the humanitarian field. Russia has resumed its return to the African market. But I am 100% sure that we have our own niches here – with the activity of our exporters," the Belarusian diplomat made a brief analysis.

Today, even Western economic and financial experts are forced to admit that Belarus is quite successfully developing relations with the states of the farthest regions and continents. As one of the confirmations of this fact, the official visit of the Minister of Foreign Affairs of Belarus Sergei Aleynik to India in the period from March 12 to 13 can be considered. According to the press service of the Belarusian Foreign Ministry, the work program included talks with his Indian counterpart Subrahmanyam Jaishankar, heads of a number of other ministries and government agencies, and representatives of the Indian business community. Earlier, at the end of January this year, the head of the Belarusian Foreign Ministry expressed hope that India would support official Minsk in joining the BRICS.

In other words, the Belarusian side is ready to look for new growth points in relations with all friendly countries, building mutually beneficial cooperation based on trust and mutual respect in order to bring the level of partnership to a new qualitative level, up to a strategic one. Although, of course, Minsk is well aware that Russia has been and will remain the main economic partner and strategic ally.

Vladimir Vuyachich

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