Belarus Capital vs Regions: A Growing Gap
Minsk is progressively distancing itself from its neighboring regions.
In Belarus, the average net salary for March 2025 stands at around $750, with Minsk leading the pack with an impressive 3048 rubles net, while Bobruisk, the largest regional center, lags behind at 1624 rubles. But let's take a closer look at the evolution of this wage imbalance.
In the past, Minsk's wage levels were more balanced with regional centers. For instance, in 1995, the difference was a modest $113 in Minsk versus $96 in Vitebsk. However, the chasm has widened significantly over the years. By 2010, Minsk's average salary had risen to $558, while Grodno, a regional center, managed only $438 - a difference of 18%.
Fast forward to 2020, the average salary in Minsk increased to 42% higher than in Grodno, and by 2025 it has soared even further, standing at 50% more than Mogilev's average salary. Economist Anastasia Luzhina of BEROC argues that this stark difference is troubling.
"The difference in salaries between cities should not be this large," Luzhina warns. "Life in a large city is more expensive, so some difference in wage levels is normal. But in the case of Belarus, it is very noticeable, and the gap between the capital and the regions continues to grow."
Minsk's Cemented Status as a Magnet
- Minsk's allure is multifaceted, pulling in residents not just with attractive salaries, but also due to differences in the development of services, infrastructure, and educational institutions. The high concentration of universities in the capital, for instance, reinforce strong centralization in Belarus.
Comparing Belarus to Neighboring EU Countries
- On the flip side, Poland and Lithuania exhibit a more balanced distribution of salaries between their capital and regional areas. In Poland, regional differences in salary levels are less pronounced, with Krakow and Gdansk close behind Warsaw in terms of average salary.
- Luzhina admires Poland's approach, noting that several large foreign companies have established their headquarters not only in Warsaw but also in other major cities, such as Krakow. This dispersal of economic power across cities is absent in Belarus where many top-ranking universities are concentrated in Minsk.
Is Equalization Sustainable?
- Addressing the issue of excessive centralization in Belarus requires a comprehensive, long-term strategy that involves significant investments in infrastructure and the creation of a favorable climate for attracting investments. However, the Belarusian government and economy face challenges in realizing these changes.
On the other side of the border, the situation in Lithuania presents an interesting contrast. Despite Vilnius being the capital, the average salary there is only 6% higher than Kaunas, and just 12% higher than the national average, demonstrating a more balanced economic landscape.
- The stark difference in salaries between Minsk and the regions in Belarus necessitates a focus on the development of services, infrastructure, and educational institutions outside the capital to prevent further centralization.
- In contrast to Belarus, the neighboring EU countries like Poland and Lithuania have a more balanced distribution of salaries between their capital and regional areas, which could be a model for Belarus to consider in addressing its issues of excessive centralization.
