U.S. Assistance to Belarus

U.S. Government Assistance FY 96 Annual Report

As a result of the Belarusian Government's inattention to reform, U.S. Government assistance to Belarus was extremely modest in FY 1996--an estimated $65 million (this includes appropriated funds, as well as approximately $40 million in donated humanitarian goods transported by the U.S. Government). As in prior years, our assistance programs for Belarus were sharply focused on the grassroots level in areas where reform showed the most promise of taking hold and where U.S. interests were most clearly defined. Most of these programs were effective, particularly those in support of economic restructuring and democratization.

Political and Economic Overview

The goal of our assistance to Belarus is to support the country's development as an independent, non-nuclear, market-oriented, democratic state; however, in FY 1996 Belarus retreated further from democratic and economic reform. During the latter half of the fiscal year, the Government of Belarus took further measures to limit the independent media, closing two radio stations and impeding the work of several newspapers. Meanwhile, the state media provided one-sided coverage of the president's illegitimate November 1996 referendum aimed at amending the constitution to expand his own powers. In the run-up to the referendum, the president reintroduced price controls on basic goods and services.

Business Development Committee

The second session of the U.S.–Belarus Business Development Committee was held in late May in Minsk. The U.S. side urged Belarusian officials to adopt stable and rational economic policies to attract foreign investment and addressed the need for adherence to human rights, pointing out that international financial support will only come as a result of such economic and political reforms. The U.S. side stressed the importance of working with the International Monetary Fund (IMF) in developing and implementing macro-economic reform and privatization, and outlined specific steps necessary for establishment of a viable commercial environment in Belarus. The two sides also discussed actions to be taken to resolve problems related to specific commercial projects.

Security Programs

In FY 1996, $13.9 million was obligated under the Defense Department's Cooperative Threat Reduction (CTR) programs in Belarus; as of the end of FY 1996, $77.4 million out of a total of $120 million in CTR funds for Belarus had been obligated. Through CTR programs, the U.S. Government has provided assistance in the destruction and dismantlement of weapons of mass destruction, emergency response equipment and training and export control assistance. Through CTR, the U.S. Government is assisting in the disposition of liquid rocket fuel and the elimination of SS-25 launcher foundations in accordance with START procedures. With such U.S. assistance, the last SS-25 nuclear rocket was removed from Belarus in November 1996 making Belarus a non-nuclear weapons state. Also among the highlights of the CTR program for Belarus in FY 1996 were the equipping of an AN-26 aircraft with remote sensors and photographic equipment to enable Belarusian scientists to collect data about contaminated areas, the remodeling of a laboratory to analyze the data collected by the AN-26, and security upgrades at the Sosny research facility to prevent the smuggling of nuclear materials. However, the implementation of CTR programs in Belarus encountered several problems in FY 1996. The Government of Belarus denied U.S. contractors access to installations for providing agreed-upon assistance in the destruction of SS-25 launch pads. In addition, the Belarusian Government attempted--in violation of the CTR agreement--to tax the U.S. contractor building housing under a defense conversion project for former military officers in Grodno. Other security related program activities were also limited over the year in Belarus.

Economic Restructuring Programs

Since late 1993, USAID has been funding the International Finance Corporation's (IFC) small-scale privatization program, which has been hailed as the only successful privatization program in Belarus. The IFC now operates in ten cities, including Minsk. As of the end of FY 1996, the IFC had assisted in the privatization of 248 stores and restaurants through 88 auctions; the vast majority of these were sold to individual Belarusian citizens (only four were sold to foreigners and 24 to workers' collectives). The auctions generated revenue totaling over $6.3 million, and the privatized businesses have proven successful and have encouraged competitive practices among neighboring state-owned businesses. By contrast, the Western NIS Enterprise Fund (WNISEF) has yet to establish a functioning presence in Belarus. In September 1996, the fund hired a Belarusian citizen to serve as its representative in Minsk.

Democracy Programs

USIA-sponsored exchanges, the American Bar Association's Central and East European Law Initiative (ABA/CEELI), and the Eurasia Foundation were the backbone of the U.S. Government's efforts to build support for democratic institutions in Belarus in FY 1996.

USIA Exchange Programs: In March, USIA sent 12 parliamentarians to the United States for three weeks to study legislative structures and practices at the federal and state levels. In May, the Chairman of the Belarusian Supreme Soviet Semyon Sharetskiy traveled to the United States on a USIA program, during which he met with members of Congress and studies North Carolina's state legislature. In addition, USIA brought Belarusian students and teachers to the United States on secondary school exchanges, teacher exchanges, and undergraduate and graduate fellowships ; and sponsored the visits of two U.S. legal experts who led seminars on legal skills.

ABA/CEELI: USAID funded two permanent ABA/CEELI representatives in Minsk. In February, ABA/CEELI sponsored a seminar on the rule of law, in which over 200 people participated, including members of the Constitutional Court. In cooperation with the Soros Foundation and the Union of Jurists, ABA/CEELI opened Belarus's first publicly accessible international law library. In addition, ABA/CEELI conducted seminars throughout Belarus to educate jurists in legal skills, initiated efforts to support the establishment of a law students' association, and assisted with the production of a manual on legislative drafting as a supplement to training provided to 75 Belarusian legislators, government employees, lawyers and judges in October 1995.

Eurasia Foundation: The Eurasia Foundation provided grants to support economic reform, non-governmental organizations (NGOs), independent media and electronic communications. Many of the grants awarded by the Eurasia Foundation in FY 1996 were aimed at providing Internet access to schools and teaching computer skills; for example, one such grant will fund the purchase of computer equipment to improve the quality of economic education at a women's school.

Humanitarian Assistance

USAID-funded NGOs, such as Counterpart, continued to support victims of Chernobyl by distributing donated commodities such as medicine and clothing. In addition, the U.S. Government funded shipments to Belarus of humanitarian goods collected and distributed by Citihope International; and provided $388,000 to support U.S.-Belarusian hospital partnerships. The Coordinator's Office delivered approximately $40 million in privately donated and Defense Department excess commodities to Belarus in FY 1996.

USDA Food Assistance

In FY 1996, the U.S. Department of Agriculture provided approximately 36,000 metric tons of soybean meal to the Government of Belarus under a P.L. 480 Title I food assistance program. The Belarusian Government agreed to continue its efforts to improve food security, alleviate poverty, and promote broad-based, equitable and sustainable agriculture. USDA also donated approximately 1,600 metric tons of commodities to Citihope International under its Food for Progress program. Citihope began monetizing the commodities and using the proceeds to support small business development in Belarus. USDA was not able to include Belarus in its initial allocation list for FY 1997 Title I food assistance as Title I resources are quite limited.