It dates back to 1918 and the initial declaration of Belarusian independence. Democratic opposition forces continue to recognize this flag. However, the breakup of the Soviet Union and its traditional trade ties in December 1991, as well as the government's failure to embrace market reforms, has resulted in a sharp economic decline.
Privatization is virtually nonexistent and the system of state orders and distribution persists.
The overvalued ruble has especially hurt Belarusian exporters, most of which now operate at a loss. Excerpted from the CIA's 1997 World Factbook. If link is out of date, see the CIA's home page.