Economy

Minsk is the economic capital of Belarus. It has developed industrial and services sectors which serve the needs not only of the city, but of the entire nation. Minsk's contributions form nearly 46% of Belarusian budget. According to 2010 results, Minsk paid 15 trillion BYR to state budget while the whole income from all other regions was 19.9 trillion BYR.

Industry Minsk Tractor Works, main entrance.

Minsk is the major industrial centre of Belarus. The city has over 250 factories and plants. Its industrial development started in the 1860s and was facilitated by the railways built in the 1870s. However, much of the industrial infrastructure was destroyed during World War I and especially during World War II. After the last war the development of the city was linked to the development of industry, especially of R&D-intensive sectors (heavy emphasis of R&D intensive industries in urban development in the USSR is known in Western geography as 'Minsk phenomenon'). Minsk was turned into a major production site for trucks, tractors, gears, optical equipment, refrigerators, television sets and radios, bicycles, motorcycles, watches, and metal-processing equipment. Outside machine-building and electronics, Minsk also had textiles, construction materials, food processing, and printing industries. During the Soviet period, development of the industries was linked to suppliers and markets within the USSR, and the break-up of the union in 1991 led to a serious economic meltdown in 1991–1994.

However, since the adoption of the neo-Keynesean policies under Alexander Lukashenko's government in 1995, much of the gross industrial production was regained. Unlike many other cities in the CIS and Eastern Europe Minsk was not heavily de-industrialised in the 1990s. About 40% of the work force is still employed in the manufacturing sector. Over 70% of produced goods are exported from Belarus, especially to Russia and other members of the Commonwealth of Independent States. However, the recent industrial revival did not lead to updating technologies and equipment (as FDI was discouraged), therefore much of the local industry is not highly competitive by international standards.

Major industrial employers include:

Minsk Tractor Plant – specialised in manufacturing tractors. Established in 1946 in eastern Minsk, is among major manufacturers of wheeled tractors in the CIS. Employs about 30,000 staff. Minsk Automobile Plant – specialising in producing trucks, buses and mini-vans. Established in 1944 in south-eastern Minsk, is among major vehicle manufacturers in the CIS. Minsk Refrigerator Plant (also known as Atlant) – specialised in manufacturing household goods, such as refrigerators, freezers, and recently also of washing machines. Established in 1959 in north-west of the city. Horizont – specialised in producing TV-sets, audio and video electronics. Established in 1950 in north-central Minsk. Unemployment

Official statistics quote unemployment in Minsk at 0.3%. During 2009 census 5.6% of Minsk residents of employable age called themselves unemployed. The government discourages official unemployment registration with tiny unemployment benefits (70 000 BYR ≈ $14 per month) and obligatory public works.