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Ford and Belarus:
successful
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mezalyans?
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The intensity of investment process in the Republic of Belarus (RB)
is the most discussed problem nowadays. The existence of exclusively tendencies
defining the evolution of the existing situation is acknowledged by everybody.
The RB is less attractive for world bourgeoisio, the slight volume of capital
is invested in the economy of the RB.
Nowadays tear and wear of the basic funds is nearly 60% (on the average
in the national economy) and for a year they are renewed by not more than
2%. It is necessary in the shortest time (5-10 years) to draw about 50
bln. dollars to prevent economical aggravation (for the comparison: the
direct foreign investments were 4 bln. dollars in 1995, the own investment
potential of the republic is rather slight 13000 bln. Roubles were directed
to renew the basic funds).
Macroeconomics forecast: the economy will be plunged into a crisis,
which is characterised b y the destruction of economical relation, crisis
in finance and credit system. But has the glimpse of hope become seen?
On the 23 of May of 1996 new Belorussian - American joint stock company
was founded. Its founders are
"FordMotor&Co", the government
of the RB and "LadaOMC&Co",
which have the following
shares in the authorised capital stock: 51%, 26%, 23% accordingly. The
volume of the authorised capital stock is 20 mln. Dollars. It is expected
that plant will be able to output two models of Ford cars: "Ford-Escort"
and "Ford-Transit". Their production will be started in the 3rd
quarter of 1997.
In 1998
-
6000 of cars
will be assembled.
This project is a part of the global programme of the expansion its
presence on the strategically important world markets. This project is
element of the common plan "Ford-2000" as well. The idea of creation
of joint stock venture arose in 1994 and during its evolution had a lot
of critical moments. Even for a few days till the solemn signing the foundation
documents of a new company the parties had not full assurance in the successful
signing.
The government of the RB it must be admitted has done a lot in order
to promote the projectūs realisation. The production squares of "
MinskTractor Plant" were alienated under the workshops of "Ford-union".
Concerning it a consensus with the supervises of the plant was reached
very hard.
The "Tractor plant" saved testing polygon in " Obchac"
for itself, but they will have it leave some production premises. Despite,
the expenses involved will be compensated by the government according to
the words of the prime-minister. Besides, the government granted favourable
tax and border treatment, which will allow to the joint venture to pay
only a tax on salary of workers for 5 years according to the words of M.Chigir.
Taking into consideration that American investments to production of the
cars are a little more than 10 mln. dollars such protectionism maybe explained
only by the desire to carry out a parterre action, which must have a considerable
foreign policy and economical effect.
It would be appropriate to mention a speech of the ambassador of the
USA in the RB (K.Yalovits) at the conference devoted to creation of "Ford-Union".
Mr.Yalovits in contrast with the rest of the members of the meeting with
journalists did not have to fill his speech with compliments flattering
to somebody. From Yalovitsūs point of view the creation of the joint venture
is a reassuring fact beyond all doubt. If the Ford's experience is a success
it can affect the opinion of American businessmen about the investment
climate in the RB. However, foreign investor does not need any advantages
and privileges, the exclusive regime of functioning.
Moreover it will cause a counter effect, which will push away foreign
businessmen. A stabile and simple tax system, the right are necessary.
Moreover all these rights and obligations must be applied both for residents
and strangers.
Their were speeches f Mr.Bucker (the executive director of "FordMotor&Co"),
A.Sasonov (assistant of the president), M.Chigir (prime-minister), V. Kokorev
(vice-primer), A.Vaganov (general director of the joint venture "LadaOMC&Co")
during the press-conference. The speech of the manager of the joint venture
"LadaOMC&Co" (Mr.Vaganov) was a little more emotional than
the speech of the ambassador of the USA, but it was also not deprived of
pragmatism. He dwelled upon some practical aspects of the project. From
Mr.Vaganovūs point of view about 20% of the manufactured goods can be absorbed
by the home market and the rest of 80% will be exported.
The new company will allow to provide about 10 000 workers places
,
moreover the first 600-900 of the workers places will appear within the
nearest weeks (the employment of new workers who will build new workshops
and rebuild old premises will begin). Mr.Vaganov believes that importance
of this project for the RB is hard to evaluate: besides, new workers places
and considerable finance investments in the economy of the RB he sees a
lot of the positive effects.
The collaboration with "Ford&Co" will allow to break
a cautiousness of potential investors in regards of our country will provide
development of the branches connected with the machine-building industry
direct or indirect. The attracted currency sums will influence the finance
and credit system on the whole. Time will show if the businessmenūs expectations
will come true.
However, from vice-primerūs point of view there are some factors which
encourage us: nowadays more than 10 global investment project are being
considered by the government. Will be hope that the words of Mr.Bucker
(the executive manager of "Ford&Co") are not diplomatic reverence,
which are addressed to the government of the RB: The opportunities of the
business for " Ford&Co" in the RB and other countries of
this region inspire great enthusiasm.
This new joint venture is a step to arrangement of more durable presence
of the company in the East Europe and Asia.
From the agency "Business
Trend News."
Phone/Fax: +7 375 17 268-80-70 E-mail:
btnews@fit.belpak.minsk.by
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