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"Reputational risks": Ministry of Economy reveals what's hampering Belarusian IT development

The Ministry of Economy published a report at the end of the year with a collection of global technology rankings. It states that Belarus’s results reveal «problems in the conditions and outcomes» of the local IT sector’s development.

The Ministry of Economy published a report at the end of the year with a collection of global technology rankings. It states that Belarus’s results reveal «problems in the conditions and outcomes» of the local IT sector’s development.

There are both internal and external factors at play. Among the internal issues are insufficient incentives for Belarusian software developers. Current benefits include preferences for technopark residents and opportunities to implement pilot digital development projects. However, there are no special preferences for R&D financing in the IT sector.

The country also lacks «crucial elements of the national software ecosystem,» including a marketplace for domestic software and registries of national and trusted software. Another limitation is that government programs outline only general digital development objectives without specific plans for key areas, particularly in AI.

Regarding external factors, the ministry notes that exporting equipment and software has become more difficult to the US, Canada, the UK, Japan, Ukraine, South Korea, Australia, Taiwan, Switzerland, and EU countries. «However, the purchase of Belarusian software by these countries is not prohibited. The main reason for the shrinking market is the reputational risks foreign companies face when cooperating with Belarusian residents,» the Ministry of Economy states.

Additionally, Belarus is affected by the global RAM crisis caused by the AI boom. Last November in Belarus, the average price for RAM increased by 78% compared to June. Belarusian companies also face greater challenges entering the Russian software market, partly due to requirements for software compatibility with trusted operating systems.

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