Development of Small and Medium Towns
Currently, implementation of “the State Comprehensive Program for Development of Regions, Small and Medium Urban Communities in the Republic of Belarus for 2007–2010” is underway. This Program has set a target for creating conditions to turn towns into safe and sustainably developing places with a favorable living environment for the residents.
In total, 183 small and medium urban communities with a population up to 50 thousand residents are available in Belarus. To implement the Program-outlined actions, the following targets need to be addressed: creating new jobs, increasing rates of construction of dwelling houses and cultural and sports facilities and developing the services sphere. The policy to be pursued includes promotion of establishment of new enterprises, branches and shops of existing production facilities and also promotion of small business, primarily development of works for servicing the agricultural sector, processing agricultural produces, manufacturing products from local raw materials and providing services for the consumers.
Nearly 1000 investment projects are to be implemented in small and medium urban communities, and it is noteworthy that out of this number 195 most significant projects are to be set up in 111 communities.
To implement the Program, special Decree No. 265 of 7 June 2007 ”On State Comprehensive Program for Development of Regions, Small and Medium Urban Communities in the Republic of Belarus for 2007–2010” was issued by the President of the Republic of Belarus. The Decree introduces a range of measures aimed at creating conditions for the prioritized socioeconomic development of the regions and small/medium communities.
Thus, the Decree stipulates that during 2007–2010 period, organizations registered and operating in small and medium urban communities are to pay 50% profit tax of the rate set by the legislation and are to be exempted from payment of the road user tax, fees to the national fund for support of producers of agricultural products, food and agrarian science.
Given that the small business is to be a main contributor to intensive development of small and medium urban communities, the Belarusian Government is to take additional actions to promote the business, improve the investment climate and debureaucratize the administration system in the regions. The governmental actions to assist the development of legal entities and individual entrepreneurs located in small and medium urban communities are, in particular, provided for by Decree of the President of the Republic of Belarus No. 108 of 27 February 2007 “On Specific Measures to Transfer Unused State Property to Production” which introduces measures to substantially simplify the procedures of purchasing unused equipment and other state-owned units by the small business sector’s entities.
To intensify the entrepreneurial activity, stimulate production and sale of goods, attract investment in the development of small and medium communities, Decree of the President of the Republic of Belarus No. 1 of 28 January 2008 “On Stimulating Production and Sale of Goods (Works, Services)”, subject to which a range of privileges for commercial organizations (including those with foreign investment) established from 1 April 2008 in communities with the population up to 50 thousand residents have been set.
Therefore, a long-term and systematic process of establishing an environment for sustainable development of small and medium urban communities is to solve current social, economic and urban development problems, maintain a stable economic growth, an enabling environment for investment and innovations and meet social needs of the communities’ residents, is fully supported by the Government and is one of its short-term priorities.
