Preliminary socio-economic results of the first year of the five-year plan were analyzed at a joint meeting of the regional executive committee and the presidium of the regional council.
As noted by the Chairman of the Regional Executive Committee, Nikolai Sherstnev, in the past year, the Vitebsk region worked with net profit, profit from sales, and positive sales profitability. Targets for a number of other indicators set by the government and the regional council are also being met. At the same time, it was not possible to ensure the volume of gross regional product produced at the level of 2015. In addition, there are problems with the export of goods and services, and less than half of the target for net direct foreign investment was attracted. To rectify the situation, it is necessary to utilize the potential of unused reserves, taking this into account when building the strategy for the future year, the head of the region noted.
According to the assessment of the Deputy Chairman of the Regional Executive Committee, Oleg Matskevich, all the main sectors forming the GRP worked with a negative result, and there are objective reasons for this. Namely, a decrease in the volume of processing of oil raw materials, a shortfall in the harvest due to weather conditions, a reduction in preferential housing loans and budget financing of investment programs. However, gross regional product is an objective reflection of the work of each district and organization, when successes in certain areas can be offset by the negative results of outsiders. Therefore, it is important to maximize the utilization of growth reserves in all sectors of the economy, including industry, which operates profitably but has idle capacity, and agriculture, where integrated structures are gaining weight, but the overall state of agricultural organizations is far from ideal, and so on. Analyzing the current situation, Oleg Matskevich placed a special emphasis on two areas.
The most important criterion is export
According to expert assessments, up to 70% of the products produced in the region should be sold in foreign markets.
for obtaining resources for the maintenance and development of the region. At the same time, the conditions for operating in foreign markets have become more stringent.– Analysis shows that specialists of most executive committees are aware of the state of foreign trade at the enterprises under their jurisdiction, but today a completely different level of competence is required, – noted Oleg Matskevich. – No one knows better than the head of the region what resources can be used to increase exports, optimize imports, and ensure the inflow of foreign exchange earnings.
A wide arsenal of tools and opportunities is now available to improve the effectiveness of operations in foreign markets, including the potential of specialized regional organizations and the mechanism of state support for exports. If ties with twin regions are effectively used, and the positive image of high-quality Belarusian products is leveraged, then most issues related to promoting products abroad can be resolved in each district, Oleg Matskevich is confident. However, for the second year in a row, the export of goods indicator has not been met by Beshenkovichi, Glubokoe, Lepel, Orsha, Polotsk, and Tolochin districts. In Beshenkovichi, Orsha, Tolochin, Ushachi, and Sharkovshchina districts, there is consistently a negative balance of foreign trade turnover.
– There are a number of objective factors, but today a manager of any level must understand: without diversifying sales, establishing a presence in new markets, and bringing the entire technological production process into compliance with international standards and technological regulations, there will be no positive result. Moreover, the domestic market itself will be filled with imported goods, and the workforce will become redundant, – emphasized the Deputy Chairman of the Regional Executive Committee. – To be a good exporter, one must also be a good importer; it is necessary to cooperate, share markets, and negotiate, rather than sit on the sidelines and wait for the situation to resolve itself. Otherwise, there will be no currency for importing raw materials or for technological re-equipment.
Small business takes center stage
Oleg Matskevich also focused attention on
one development priority – small and medium-sized businesses, which are an important component of the region's economic system and operate successfully in all sectors. Today, more than a quarter of the economically active population of the region works in the entrepreneurial sector. It significantly influences budget formation in Gluboksky, Orshansky, Polotsky, Verkhnedvinsky districts, and in Sharkovshchinsky, such organizations fill the district budget by 50%. At the same time, receipts from small and medium-sized businesses are insignificant in Gorodoksky, Sennensky, Dokshitsky districts, as well as in Novopolotsk and Vitebsk.– If we want to increase the contribution of entrepreneurship to the economy, we must clearly understand that working with capable and initiative people to stimulate their independent economic activity should be carried out constantly, not situationally, – Oleg Matskevich recalled.
And the result of such work can be traced by the example of creating new enterprises. For 10 months of 2016, 206 micro and small organizations started operating, 15 production facilities were created. At the same time, 1750 jobs were organized. The figures provided mainly relate to Orshansky, Polotsky, Vitebsky districts, Vitebsk and Novopolotsk. Only in Dokshitsky and Dubrovensky districts, not a single enterprise and production facility was created, although this process is of particular importance as it helps to solve economic problems and population employment issues. In 2017, at least 340 new organizations must be created, while city and district executive committees have planned the implementation of only 77 business plans, Oleg Matskevich expressed bewilderment.
– The potential of entrepreneurship is not fully utilized, executive committees underestimate its significance as an alternative sector of the economy capable of ensuring economic growth, employment, and budget replenishment, - said the Deputy Chairman of the Regional Executive Committee. At the same time, for the creation of a favorable business climate, coordinated work of all state organizations without exception is required.
Sergey Antonov, "Vitebskiye Vesti".