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                    BELARUS: COUNTRY ASSISTANCE STRATEGY

                         CHAIRMAN'S CONCLUDING REMARKS

                                 Meeting of Executive Directors

                                        December 4,2007



      The Executive Directors welcomed the joint IBRDIIFC Country Assistance Strategy for
Belarus for FY 08-FY11.

      Directors noted that Belarus has achieved good progress in broad-based economic growth
and significant poverty reduction, while maintaining comprehensive social security and good
basic health and education services. However, they expressed concern about the sustainability of
such growth in the absence of sufficient structural reforms, and urged the authorities to accelerate
reform efforts and foster a more conducive environment for a more diversified economy. They
highlighted the importance for the Bank Group to support Belarus in its efforts to improve the
business climate and competitiveness, enhance fiscal accountability and transparency in public
sector management, and accession to WTO.

      Directors broadly agreed with the Bank's proposed strategy and assistance program. Some
Directors however, suggested that the program should be scaled up particularly in the area of
infrastructure. Directors noted that the strategy draws on lessons learned and focuses on areas
where the Bank Group can play a valuable role by aligning its interventions with Government
priorities.  Some Directors stressed the need to further develop the results matrix indicators.
Directors urged that the Bank continue to provide assistance to Belarus in coping with the
aftermath of the Chernobyl accident.

      Several Directors expressed support for IFC's donor-funded technical assistance activities,
and urged that it continue its effort to improve the environment for private sector development,
particularly for SMEs. They also encouraged the IFC to expand its investment program in
Belarus. The importance of continued close coordination between the Bank and the IFC was
highlighted.

      Finally, Directors looked forward to the CAS Progress Report that will help to shape the
assistance program for the remainder of the CAS period.