The industrial complex of Belarus managed to retain a rather powerful production and technological potential and competitive advantages:

• possesses one third of the fixed industrial production assets;
• employs one forth of the total labor force;
• and uses almost half of the working capital in production and circulation.

Diversity of the manufactured and sold industrial products defines the Belarusian foreign trade profile (nearly 90% of the total export) and earns a larger share of foreign exchange receipts. In contrast to other sectors, the industry’s competitive advantages manifest themselves also in: (i) higher rates of industrial production growth compared to the GDP growth; (ii) in ratio (in favor of industry) of the nominal average monthly accrued wage of the industrial production personnel in the industry and national economy; and (iii) higher level of profitability of sold products.

Over 20 thousand industrial enterprises and works operate in Belarus. The country’s industry comprises over 100 sectors. Fig.

In 1998, the Government initiated implementation of the Program of Industrial Complex Development in the Republic of Belarus for 1998-2015 specifying main parameters, spheres and mechanisms of a sustainable growth of industrial production, increase in its efficiency through intensified investment and innovation activity, acceleration of management restructuring and also improvement in institutional and legal, proprietary, technological, personnel and financial spheres.

The industrial complex developed pursuant to the Program of Socioeconomic Development of the Republic of Belarus for 2001-2005, with the production growth being the main contributor (the growth rate reached 151.7% over the five-year period), also supplemented such qualitative indicators as improved performance and reduced material and energy intensity of the products. In 2005, the industrial production increased by 10.4% compared to 2004 and was accompanied by the increased share of new and certified products – it reached 10.4% and 61.9%, respectively.

In 2006-2010, the industrial fixed assets are expected to be replaced at a higher rate and the investment and innovation activity to modernize the industries is to be intensified. The industrial policy would prioritize as follows: resources and energy saving, innovative materials and new energy sources, medicine and pharmacology, information and telecommunication technologies and industrial biotechnologies.

The focus of attention is to be placed to the development of industries utilizing local raw materials, namely, forestry, woodworking and pulp-and-paper industry, processing subsectors of the agribusiness sector and construction materials industry. The marketing activity, intra- and intersectoral cooperation and also activities of reorganizing, performing bankruptcy procedures and reprofiling of operating inefficient and loss-making enterprises and establishing new ones, including joint ventures and foreign enterprises are being intensified.