Global Perspectives Mid-term Memo - Assignment Example

1) The rising Human Development Index (UNDP Report, 2010) a) A recent UNDP report published in 2010 has identified a rise in the index of human development for Belarus. i) Human Development Index (HDI) is an internationally accepted measure of national development. It assesses health, income, education and some other trends for a country. ii) The recent rise is not sudden and the country is steady moving up in the ladder.HDI has risen from 0.619 to 0.624 in 2010. iii) The country is categorized as a country with High Human Development in this report which means a developed country. b) We can assume following from the HDI rise; i) Higher buying power at consumer level. ii) Higher level service expectations from the consumers. iii) Belarus social indicators are satisfactory and if these trends continue to flourish there are bright chance of business in this country. iv) Encouraging business environment. 2) Belarus’s Economic Environment a) A Highly industrialized state with many features of planned economy. i) A country with a Gross National Income (GNI) per capita of US$ 1,590. ii) A decline in Belarus GDP was observed in 2009 as it dropped to US$ 48.

984007391 billion from US$ 60.7634483146 billion of 2008 and was ranked 70th in the world. iii) A net inflow of foreign direct investment was declared to be US$ 1.8844 billion. (World Bank, 2011) b) A strict control government over the prices and private enterprises makes the business environment difficult for foreign investors. i) Rigorous government inspections to ensure policy compliance. ii) A higher frequency of policy and business regulation changes. iii) An overall restrictive business environment. iv) A strict control government over the prices and private enterprises makes the business environment difficult for foreign investors.

(Economy Watch, 2011) c) Our recommendation from business point of view are as follows; i) Government should move towards market driven economy ii) State control over private enterprises should be reviewed and removed iii) Competitive business environment should be provided to business community iv) Tax free and investment friendly policies should be introduced to support direct foreign investment. 3) Belarus’s Political Environment a) Belarus had declared its independence in 1994. It is presidential republic, governed by the President Alexander Lukashenko, the National Assembly and a Council of the Republic.

The President is ruling the country for last sixteen years and has got legitimacy through controversial referendum process. Most of the Western powers have termed the rule of Lukashenko as a dictatorship. i) Human rights violations are witnessed commonly. ii) Several opposition parties exist but are strictly suppressed in the country. iii) However, government controlled Belarusian telegraph agency declared the political situation in the country as ‘calm’ in a recent survey. (Belta, 2010). b) We suggest following political steps in Belarus; i) Restoration of true democracy ii) More political freedom to the masses, particularly suppressed opposition parties iii) Respect of human right at all level of the society iv) Frees press and media policies Under these circumstances business operations in Belarus does not suits