The Index of the Future of Belarus

2019

An expert survey by the Center for New Ideas

Although the future is often perceived in abstract terms, "tomorrow" is not composed of fantasies, accidents or black swans.

The future is shaped by an elaborate tangle of long-term trends.

How will Belarus look in five years? In what condition will our economy be? Will Belarus pay more attention to gender equality? How competitive is its system of education in the region? Will there ever be political reform? The Index of the Future of Belarus has been created to answer exactly these questions.

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    Values
    Index
    • improvement
    • stagnation
    • deterioration

    We have chosen 24 indicators affecting the future of Belarus. Our survey of 58 experts shows that Belarus is in decline or in a state of stagnation with regard to most of these indicators. This makes this year’s Index somewhat more pessimistic than last year’s, when the future was looking a little bit rosier.

    Performance distribution ():

    improvement
    0
    stagnation
    0
    deterioration
    0

    Analysts representing 37 different organizations, including analytical centers, academic institutions and civil society organizations (the full list of organisations is available in the data set), rated the probability of various scenarios for Belarus from 0% to 100%, the complex of which is a quantitative indicator which we have termed the Index of the Future of Belarus. For example, a result of 1.1 means that the situation will change by 10% in comparison with the five-year period immediately preceding the half-decade covered by these surveys.

    We readily admit that we’ve had to make a few exceptions to this formula. For example, as GDP growth has remained close to zero for the last five years, it is difficult to calculate the index on that basis. In some cases, we asked about development scenarios without using numbers (such as the chances of political reform taking place). In such cases no index is specified. Finally, we did not evaluate two indicators even qualitatively (where elsewhere we predicted improvement, stagnation, or deterioration). These are foreign policy priorities and health care expenditure. Although we do have inklings regarding developments in these fields, we have chosen to leave them out for the following reasons: the first issue remains highly politicised, and our Index aims to serve all Belarusians regardless of their political views. As for health care expenditure, it is difficult to assess what share of the national and local budget it deserves. In most cases, we have not asked outright what will happen to the country in five years, but rather how a specific indicator will look over the next five years on average, as what economic growth will look like in 2023 per se is much less relevant than the average pace of growth up to that point.

    While quantitative indicators are based on our survey, the qualitative evaluation (improvement, stagnation or deterioration) are on the conscience of the authors of the Index (Ryhor Astapenia and Andrei Kazakevich).

    Economic Prospects

    GDP Growth

    Gross domestic product is a boring indicator, but it is more effective than others at measuring the health of the economy. As much as it hurts us to say it, the GDP has certainly not grown significantly. Quite the opposite, it is difficult to keep track of the many crises we have experienced recently.

    Over the next five years experts predict the economy will grow by 1.5% - 3%, which in practice is stagnant – this growth rate would not compensate for the loss caused by the economic crisis and is lower than the global growth.

    Average Salary

    The average salary in Belarus is not only an economic indicator, but also a cultural meme and political talking point. The struggle for "five hundred dollars for all" has lasted a very long time. Unfortunately, although there have been times when the average salary has reached this point, it seems to inevitably come back down.

    Between 2019 and 2023, the average salary in Belarus is likely to be between $ 500-600.

    Gross External Debt

    External debt is perhaps one of the greatest threats to the Belarusian economy. The more dependent on foreign funding Belarus becomes, the less stable our economy will be, especially if the situation in the external environment also worsens.

    External debt will most likely comprise 50-70% of the GDP of Belarus. This year, experts seem more optimistic about the dynamics of gross external debt growth than last year. A year ago, experts predicted a debt level of 70-90% of the GDP of Belarus.

    Russia’s Proportion of Belarusian Exports

    Dependence on the Russian market is the bane of Belarusian officials and economists, a problem exacerbated by the decrease in Russian purchasing power and growth of competition in the Russian market and limitations to access to it. Therefore, Belarus is at least formally seeking to diversify its partners for export in order to reduce its dependence on the Russian market.

    It is likely that Russia's share in Belarusian export of goods will decrease slightly: to 35%-40% of the total.

    Number of Countries Receiving more than 5% of Belarusian Exports

    Diversification is one of the most frequently repeated words of the Belarusian establishment. The more countries we export goods and services to, the less vulnerable we are to Russian crises (or trade wars).

    The number of countries receiving more than 5% of Belarusian exports is likely to rise to 3-5.

    Preparedness for Reform

    We asked the experts if the Belarusian economy would ever see reforms aimed at improving its economic efficiency. By improvement of economic efficiency, we mean changes focused on speeding up economic growth, increasing household income, optimising expenses in the public sector, increasing labour efficiency, and raising international assessments of economic development. According to our findings, any economic reforms in Belarus are not predicted to be major.

    Forecasted indicator in 5 years

    Socio-Demographic Development

    Population

    For Belarus, as well as for other countries, demographic load (the ratio of people of working to non-working age) means a lot. If the population decreases, the demographic load will probably increase.

    Unfortunately, we do not expect Belarus’s population to grow. Although the population of Belarus will continue to decrease at more or less the same rate as now, we have decided to interpret this result as "deterioration". In practice, this tendency will result in a further increase of demographic load, which worsens the prospects of Belarus even more.

    Minority Rights

    The level of development of a state (and society) is reflected in how prepared it is to accept different minorities. We asked experts to assess on a scale of 1 to 10 the degree to which Belarus respects various minority groups (people with disabilities; sexual, religious and other minorities), and whether we should expect positive changes. The most likely scenario is that the situation won’t get any worse; according to the second-most likely scenario there could be small improvements.

    Current state: 5 out of 10

    Minority rights and individual social and demographic groups dissociate themselves. At the same time, restrictions are selective, related to individual areas and activities.

    Forecasted indicator in 5 years:

    Data source: survey

    See the whole scale:

    1-2. The state has a non-inclusive character. Minorities, particular social and demographic groups, are under significant pressure or constant threat. There have been acts of violence by the state and organized groups.

    3-4. There are systemic and persistent obstacles for minorities and some social and demographic groups; rights realization is obstructed. Systemic barriers are legislated and implemented in practice.

    5-6. Minority rights and individual social and demographic groups dissociate themselves. At the same time, restrictions are selective, related to individual areas and activities.

    7-8. The state is inclusive to a large extent. Manifestations of exclusion are limited and sporadic.

    9-10. The state is inclusive. The rights of minorities are guaranteed and implemented in practice. Exclusion is absent or insignificant.

    The Level of Mutual Assistance in Society

    Ideally, solidarity should permeate all levels of society, acting as a foundational value not only for the civil society community, but for the whole country. We asked experts about the current level of mutual assistance in Belarus and what it would look like in five years. Things won’t get worse: the level of mutual assistance will probably even grow.

    Current state: 4 out of 10

    Belarusian society has a very low level of mutual assistance. An insignificant part of the population (5-10%) regularly (at least once a year), while a significant part of the population sporadically (25-35%) keeps abreast of developments in society, donates money to solve social and community problems, spends personal time participating in community initiatives, and helps strangers in difficult situations. Most of the population does not help strangers or participate in other forms of solidarity.

    Forecasted indicator in 5 years:

    Data source: survey

    See the whole scale:

    1-2. Belarusian society has a very low level of mutual assistance. The number of people who provide regular assistance is negligible. A significant part of the population (25-35%) only sporadically keeps abreast of developments in society, donates money to social and community causes, spends personal time participating in community initiatives, and helps strangers in difficult situations. Up to 2/3 of the population do not help strangers or engage in other forms of solidarity.

    3-4. Belarusian society has a very low level of mutual assistance. An insignificant part of the population (5-10%) regularly (at least once a year), while a significant part of the population sporadically (25-35%) keeps abreast of developments in society, donates money to solve social and community problems, spends personal time participating in community initiatives, and helps strangers in difficult situations. Most of the population does not help strangers or participate in other forms of solidarity.

    5-6. Belarusian society has an average level of mutual assistance. A minority of the population (15-20%) regularly (at least once a year), and the majority (over 50%) sporadically keeps abreast of developments in society, donates money to social and community causes, spends personal time participating in community initiatives, and helps strangers in difficult situations. A considerable part of the population does not help strangers or participate in other forms of solidarity.

    7-8. Belarusian society has a sufficiently high level of mutual assistance. A significant part of the population (25-35%) regularly (at least once a year), and the rest sporadically keeps abreast of developments in society, donates money to solve social and community problems, spends personal time participating in community initiatives, and helps strangers in difficult situations.

    9-10. Belarusian society has a high level of mutual assistance. A majority of the population (over 50%) regularly (at least once a year), and the rest sporadically keeps abreast of developments in society, donates money to social and community causes, spends personal time participating in community initiatives, and helps strangers in difficult situations.

    Income gap between Minsk and the rest of Belarus

    In many countries there is a clear divide between the capital and the regions when it comes to income. However, in Belarus this difference is particularly stark. Minsk absorbs resources from the entire country while the situation in the regions gets worse and worse.

    The wage gap between Minsk and the rest of the country is likely to grow.

    Gender Equality

    This year we have decided not to rely on the Global Gender Gap Index (the World Economic Forum study which we used last year). This is because Belarus’s score was artificially inflated (for example, by setting a quota for women members of parliament). Therefore, we have created our own scale to see how common discrimination and limitations on the ground of sex are in Belarus. Over the next five years, it is unlikely that gender inequality will increase. Instead, it will either remain at the current level or society will become a little more equal.

    Current state: 5 out of 10

    The state and society only partially function in accordance with the principles of gender equality. Gender equality is partially guaranteed and supported by public institutions and is enshrined in the legislation and upheld by law-enforcement practices. In day-to-day life there are noticeable divergences from the principles of gender equality.

    Forecasted indicator in 5 years:

    Data source: survey

    See the whole scale

    1-2. The state and society do not function in accordance with the principles of gender equality. Gender equality is not guaranteed and is not supported by public institutions; various forms of gender discrimination are fixed in the legislation, which determines law-enforcement practice. In day-to-day life significant deviations from the principles of gender equality are common and various forms of discrimination are encouraged.

    3-4. The state and society do not function in accordance with the principles of gender equality. Gender equality is not sufficiently guaranteed, although it is supported by public institutions, enshrined in the legislation and upheld by law-enforcement practice. There are significant divergences from the principles of gender equality in day-to-day life, discrimination is present.

    5-6. The state and society only partially function in accordance with the principles of gender equality. Gender equality is partially guaranteed and supported by public institutions and is enshrined in the legislation and upheld by law-enforcement practices. In day-to-day life there are noticeable divergences from the principles of gender equality.

    7-8. The state and society function in accordance with the principles of gender equality. Gender equality is fully guaranteed and supported by public institutions. It is enshrined in the legislation and upheld by law-enforcement practices. In day-to-day life there are minor divergences from the principles of gender equality.

    9-10. The state and society function in accordance with the principles of gender equality. Gender equality is fully guaranteed and supported by public institutions. It is enshrined in the legislation and upheld by law-enforcement practices. Civil relations are also based on the principles of gender equality.

    Budget Expenditure on Health Care

    The ageing of Belarusian society means that more has to be spent on medicine. As the budget of Belarus has seen better times, a larger portion of it is being devoted to healthcare. Will this trend continue over the next five years?

    It appears that health care’s share of the national and local budget has reached its peak and will not grow significantly. It may even decrease.

    Educational and Innovative Potential

    Internal Expenditure on Research and Development

    The amount of state money spent on science clearly shows whether its economic agents see research and development as an engine of the economy. Unfortunately, Belarus is not a country where such expenditures are high. States such as Norway or the Netherlands spend about 2% of GDP on research and development, while Belarus spends 3-4 times less.

    It seems plausible that research expenditures will remain at the same low level.

    Budget Expenditure on Research and Development

    For better or worse, scientific development needs funding in the long-term. In this area, budget expenditure is especially important, given that half of the Belarusian economy still belongs to the state. Sadly, the pool of available funds for science has dried up significantly over the last few years.

    Even more sadly, growth in this area seems highly unlikely.

    Number of Patent Applications

    The number of applications for patents measures new ideas from scientists. Unfortunately, in recent years, this number has been decreasing in Belarus. Today Belarusians apply for patents 10 times less frequently than Poles (although the size of the population should also be taken into account).

    It seems that this negative trend will continue. The number of patent applications will be around 300-500 annually in the next 5 years.

    Number of Belarusian Universities in the top 500

    Belarusian universities really want to rank among the best in the world. This is not only a question of prestige, but also the attractiveness of the educational services market. However, only one Belarusian University – the Belarusian State University – made it to the top 500 in one rating. It got 354th place in the QS World University Rankings.

    Current situation

    The Belarusian State University appears among the top 500 in only one ranking.

    Forecasted indicator in 5 years

    It seems unlikely that the number of Belarusian universities among the top 500 will grow in the next five years. This is a less optimistic forecast than last year’s, when it was expected that one or more universities would join the Belarusian State University in international rankings.

    Share of Foreign Students

    Unfortunately, many foreign students who come to study in Belarus are not here for a prestigious or high-quality education, but rather to “buy” a diploma. Nevertheless, they bring money to the country which is spent on studying and living expenses in Belarus. They also contribute to the internalisation of Belarusian education.

    It appears that Belarus may increase its share of foreign students (although this will not necessarily be connected with growth in the number of foreign students, but rather a decrease in the number of students from Belarus)

    Quality of Education Compared to our Neighbors

    This year, we have decided to measure the quality of the Belarusian education system in comparison with three neighboring countries: Poland and Lithuania (examined together), and Russia, as Belarusian students headed abroad mostly go to these three countries. By quality of education, we mean the depth and relevance of acquired knowledge, the degree of development and relevance of obtained skills in international assessments and rankings, and the demand for trained professionals. Unfortunately, according to Belarusian experts, the quality of education in these countries is higher than in Belarus, and the difference may even increase.

    Current level compared to Poland and Lithuania: 4 out of 5

    The quality of Belarusian higher education is now slightly lower than in neighbouring EU countries (Poland and Lithuania).

    Forecasted indicator in 5 years:

    See the whole scale

    The quality of Belarusian higher education is now

    1. considerably higher than in neighbouring EU countries (Poland and Lithuania).

    2. slightly higher than in neighbouring EU countries (Poland and Lithuania).

    3. at approximately the same level as in neighbouring EU countries (Poland and Lithuania).

    4. slightly lower than in neighbouring EU countries (Poland and Lithuania).

    5. considerably lower than in neighbouring EU countries (Poland and Lithuania).

    In 2023, the quality of Belarusian higher education will be

    1. considerably higher than in Poland and Lithuania.

    2. slightly higher than in Poland and Lithuania.

    3. at approximately the same level as in Poland and Lithuania.

    4. slightly lower than in Poland and Lithuania.

    5. considerably lower than in Poland and Lithuania.

    Current level compared to Russia: 3 out of 5

    The quality of Belarusian higher education is now at approximately the same level as in Russia.

    Forecasted indicator in 5 years:

    See the whole scale

    The quality of Belarusian higher education is now

    1. considerably higher than in Russia.

    2. slightly higher than in Russia.

    3. at approximately the same level as in Russia.

    4. slightly lower than in Russia.

    5. considerably lower than in Russia.

    In 2023, the quality of Belarusian higher education will be

    1. considerably higher than in Russia.

    2. slightly higher than in Russia.

    3. at approximately the same level as in Russia.

    4. slightly lower than in Russia.

    5. considerably lower than in Russia.

    Political Trends

    Corruption Assessment

    This is not the first decade that Belarus is supposedly fighting against corruption, nor is it the first decade that it has failed in this endeavour, albeit doing better than Ukraine or Russia. Ratings remain significantly lower than our Western neighbors. We combined the ratings of two organisations (Transparency International and Freedom House) to create our own scale from 0 (perfect condition) to 10 (the worst condition). Here is the result.

    Expert opinion was approximately fifty-fifty: some thought that corruption in Belarus would retain its current scope and prevalence, while and others believed that the situation would improve. Slightly more belong to the former camp.

    National Consolidation and Identity Durability

    National identity is a huge sore point and perhaps our biggest problem. We asked analysts to assess the current state of consolidation and identity and predict at what point we would be in five years. According to the survey, the situation may improve slightly.

    The current level: 5 out of 10

    National identity is unstable. Competitive interpretation of history, culture and language are formed; there is no clear understanding of differences from other nations. Internal conflict on the issue of national identity has a political character. There is a notable external influence on the formation identity.

    5-Year Forecast

    See the entire scale

    1-2. The collapse of national identity. Individuals prefer to latch on to national identities of neighbouring countries and denigrate competitive interpretations of history, culture, and language. There is acute internal conflict on the issue of national identity with clear tendencies towards separatism. External factors play a defining role in defining national identity formation.

    3-4. Critical state of national identity. Competitive interpretation of history, culture and language are in conflict and incompatible. The internal conflict on the issue of national identity has a sharp political form. The question of national identity is the main factor of political division and confrontation. External influence is one of the most important factors in identity formation.

    5-6. National identity is unstable. Competitive interpretation of history, culture and language are formed; there is no clear understanding of differences from other nations. Internal conflict on the issue of national identity has a political character. There is a notable external influence on the formation identity.

    7-8. National identity is stable enough. Differences in the interpretation of history, culture, language and resemblance to neighbors are minor and resemble academic debate. Internal conflict on the issue of national identity is limited to discussions in cultural and intellectual spheres. External influence on identity formation is minor.

    9-10. National identity is stable. Holistic interpretation of history, culture and language are formed; there is a clear understanding of differences from other nations. There is no internal conflict on the issue of national identity. There is no external influence on the formation of identity.

    Status and Conditions of Civil Society Development

    An active civil society is an essential element of democracy. We created an indicator for the non-profit sector based on estimates by USAID and Freedom House on a scale of 1 to 7 (where 1 is a perfect state featuring very favourable conditions for the development of civil society, and 7 is a complex condition with extremely unfavourable conditions for the development of civil society).

    Status and conditions of civil society development in the next five years will remain approximately at the same level.

    Foreign Policy Priorities

    After Russia’s annexation of Crimea, many wrote that Belarus’s foreign policy would move further and further away from union with Russia, and many wondered in which directions Belarusian foreign policy would head. However, our survey shows that preserving the status quo or even closer rapprochement with Russia is the most likely scenario for the next five years.

    5-Year Forecast

    Political Reform

    The Belarusian authorities (including President Alexander Lukashenko) have been warming up to future transformation of the political system for several years now, stating that Belarus will hold a referendum on a new constitution. So far, these statements have not had any concrete results, so there is definite skepticism among experts about whether there will be change. However, experts believe that the possibility of some form of reform is more likely now. The question here is mostly the nature of this reform – whether it will strengthen the government or the parliament.

    5-Year Forecast

    Reorganisation of the Party System

    The Belarusian parliament has long been a "sleeping institution" where not much happens. However, over the past several years, the House of Representatives has begun to show signs of life. What’s more, the authorities periodically declare that they are considering a mixed parliamentary election, in which half of the deputies would be elected from party lists. But will the party system be reorganized in the next five years? Experts believe that this reform will most likely not take place. Nevertheless, we should not completely disregard the possibility of reorganization of the party system, although it is also possible that such reorganization would have no real results.

    5-Year Forecast

    About the Index Creators

    Ryhor Astapenia

    Ryhor Astapenia is a founder and chairman of the Center for New Ideas. Ryhor holds a PhD in political science.

    Ryhor Astapenia

    Andrei Kazakevich

    Andrei Kazakevich is a director at the Institute of Political Studies “Political Sphere”. Andrei holds a PhD in political science.

    Andrei Kazakevich

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