Belarus may become logistics center of Eastern Europe

Belarus may become the logistics center of Eastern Europe, American economist, professor from San Francisco University Peter Young told the First National TV Channel on 14 May.

“You are in the center, millions of consumers are around you. It is advantageous to place factories here. I would recommend Belarus to become the logistics center of Europe. It is essential to transport more goods from the European Union to Russia and back via Belarus,” the economist believes.

According to him, the geographical position of Belarus between the EU and Russia is a great location for industry. Single customs tariffs operating within the Customs Union where Belarus is included is also good. The whole world is on the way to such integration, now it is essential to move even further, to the free trade zone. The professor assumed that it will be not easy for Belarus to change standards in economy this year, but the effect will be seen in a couple of years.

When speaking about the business environment in Belarus, Peter Young noted that there are both pluses and minuses. “An investor needs clarity in the evaluation of ruble, how much it costs and we see that the government is dealing with it right now,” the expert said. The next important question is the prices for energy resources. “For Belarus which has no gas and oil it is necessary to preserve and regulate them strictly. In case the prices increase to the world ones, the industry will become less attractive,” Peter Young concluded.

However, Belarus has advantages. The first one is education which has reached a very high level in the country. There are many talented people in IT ans industry. “Your tractors are known even in our country, in their price category, of course,” Peter Young said. He believes, that Belarus may raise investments to heavy industry.

Peter Young came from the Silicon Valley in California. “Within the last three years I submitted more orders to Belarusian specialists than anyone from our staff. Your companies employ the best specialists, project managers, and it is very advantageous to produce programs in your country,” he said.

The professor also spoke about the privatization in Belarus. He believes, Belarus should not take an example of Russia. “I am not sure that Russia is the best example for you, maybe, the best example is China where the planned privatization is in progress,” Peter Young noted. He stressed that it is better to turn half of the property into private one. The state should leave many industries and give place to private business. The most important thing is to have clear rules here. “Private ownership is always more efficient than public one, the profitability of private companies is higher, thus it will be praised higher,” Peter Young concluded.

According to