Belarus
After seven decades as a constituent republic of the USSR, Belarus attained its independence in 1991. It has retained closer political and economic ties to Russia than any of the other former Soviet republics. Belarus and Russia signed a treaty on a two-state union on 8 December 1999 envisioning greater political and economic integration but, to date, neither side has actively sought to implement the accord.
There are no known threats against expatriate residents and visitors under what has become a Soviet-style authoritarian regime lead by President Alexander Lukashenko. Nevertheless, protests against the government have increased in frequency and police response has been violent at times. In January 2005, incoming U.S. Secretary of State Condoleezza Rice named Belarus along with Cuba, Myanmar and Zimbabwe as "outposts of tyranny." Lukashenko has isolated the country from the West since his election in 1994 by clamping down on the political opposition and by returning the Belarussian economy to a form of market socialism. Belarus continues to suffer from 60% inflation, and although the official unemployment rate is approximately 2.3%, the actual figure is believed to be much higher.
Although an important element of Lukashenko’s 2001 re-election campaign was a promise to end corruption, the polls were criticized as fraudulent by opposition parties, independent monitors and Western governments; and since, Lukashenko's rule has become increasingly characterized by corruption, nepotism and arbitrary decision-making. The opposition has been increasingly emasculated; vocal opponents of the government can expect arrest and jail, especially as insulting Lukashenko is a criminal offense. Lukashenko held a referendum on his rule in October 2004, but European observers concluded that the referendum was grossly flawed and undemocratic. Subsequent demonstrations in the capital, Minsk, were violently dispersed. This was one of the major factors which led to the European Union imposing a travel ban on a number of top Belarussian officials.
Belarus has sought closer ties with Russia. Currency union is scheduled for 2008 and there had been talk of a union. However, in summer 2002, Lukashenko rejected Kremlin proposals to embrace union under the Russian constitution with a single government and parliament. Belarusian commentators saw the Russian proposals as a potential danger to sovereignty and far from the union of equals sought by Lukashenko.
Business initiatives in Belarus are affected at all levels by a corrupt government, antiquated and unequally enforced taxation system and organized crime. Many western businesses ventures that attempted to operate in Belarus in the recent past have recently shut down and suspended all operations.
