PROFILE
OFFICIAL NAME:
Republic of Lithuania
Geography
Area: 65,200 sq. km. (26,080 sq. mi.); about the
size of West Virginia.
Cities: Capital--Vilnius (pop. 541,278); Kaunas
(364,059); Klaipeda (188,767); Siauliai
(130,020) (January 2004).
Terrain: Lithuania's fertile, central lowland
plains are separated by hilly uplands created by
glacial drift. A total of 758 rivers, many
navigable, and 2,833 lakes cover the landscape.
The coastline is 90 km. (56 mi.) long. Land
use--44.2% arable land, 0.91% cultivated, 53.87%
other.
Climate: With four distinct seasons, the climate
is humid continental, with a moderating maritime
influence from the Baltic Sea. January
temperatures average -5oC (23oF);
July, 17oC (63oF). Annual
precipitation averages 62 centimeters (24.4
in.).
People
Nationality: Noun and adjective--Lithuanian(s).
Population: 3.4 million (July 2005 est.).
Growth rate: -0.3%. Birth rate--8.9/1,000.
Death rate--11.9/1,000.
Ethnic groups: Lithuanian 83.4%, Poles 6.7%,
Russians 6.3%.
Religions: Catholic (79%), Orthodox (4.1%),
Protestant (1.9%).
Languages: Lithuanian; a minority speaks Russian
(8%) and Polish (5.6%).
Education: Years compulsory--10 (until
the age of 16). Literacy--99.6%.
Health: Infant mortality rate--67.8/1,000.
Life expectancy--66.48 yrs. male, 77.85
yrs. female.
Work force (2005 est.): 1.61 million: services
56%; industry and construction 20%; agriculture
16%.
Government
Type: Parliamentary democracy.
Constitution: On October 25, 1992 Lithuanians
ratified a new constitution, which officially
was signed on November 6 that year.
Branches: Executive--popularly elected
president (chief of state); prime minister (head
of government). Legislative--Seimas
(parliament--141 members, 4-year term).
Judicial--Constitutional Court, Supreme
Court, and Highest Administrative Court.
Administrative regions: 10 counties and 60
municipalities.
Principal political parties/coalitions: Labor
Party--39 seats, Conservative Party--25 seats,
Social Democratic Party--20 seats, Liberal and
Center Union--18 seats, New Union--11 seats,
Liberal Democratic Party--10 seats, Union of
Peasant and New Democracy Parties--10 seats,
Independent--6 seats, Polish Electoral Action--2
seats.
Suffrage: 18 years, universal.
General government budget (2004): $4.96 billion
(average exchange rate of 2004--2.78 Lt=$1).
Economy
GDP (2005 est.): $25.5 billion.
Annual GDP growth (2005 est.): 7.5%.
GDP per capita (2005 est.): $7,487.
Inflation (at the end of 2005): 2.7%.
Unemployment rate (2005 est.): 4.8%.
Major sectors of the economy: Manufacturing
21.5%, wholesale and retail trade 17.7%,
transport and communications 12.9%, real estate,
renting and business activities 10%.
Trade: Exports--$11.82 billion (2005): mineral
products 27.5%, machinery and mechanical
appliances 12.4%, textiles and textile articles
9.2%, wood and paper products 4.6%. Major export
partners--Russia 10.4%, Latvia 10.1%, Germany
9.4%, France 7%. Imports--$15.48 billion (2005):
mineral products 25.6%, machinery and equipment
17.9%, transportation equipment 11.7%, chemicals
7.8%, base metals 7%, textiles and clothing
5.6%. Major import partners--Russia 27.8%,
Germany 15.2%, Poland 8.3%, the Netherlands
3.9%.
GEOGRAPHY
The largest and most populous of the Baltic
states, Lithuania is a generally maritime
country with 60 miles of sandy coastline, of
which only 24 miles face the open Baltic Sea.
Lithuania's major warm-water port of Klaipeda
lies at the narrow mouth of Kursiu Gulf, a
shallow lagoon extending south to Kaliningrad.
The Nemunas River and some of its tributaries
are used for internal shipping. (In 2000, 89
inland ships carried 900,000 tons of cargo,
which is less than 1% of the total goods
traffic). Between 56.27 and 53.53 latitude and
20.56 and 26.50 longitude, Lithuania is
glacially flat, except for morainic hills in the
western uplands and eastern highlands no higher
than 300 meters. The terrain is marked by
numerous small lakes and swamps, and a mixed
forest zone covers 30% of the country.
The growing season lasts 169 days in the east
and 202 days in the west, with most farmland
consisting of sandy- or clay-loam soils.
Limestone, clay, sand, and gravel are
Lithuania's primary natural resources, but the
coastal shelf offers perhaps 10 million barrels'
worth of oil deposits, and the southeast could
provide high yields of iron ore and granite.
According to some geographers, Lithuania's
capital, Vilnius, lies at the geographical
center of Europe.
PEOPLE
The earliest evidence of inhabitants in
present-day Lithuania dates back to 10,000 BC.
Between 3,000-2,000 BC, the cord-ware culture
people spread over a vast region of eastern
Europe, between the Baltic Sea and the Vistula
River in the west and the Moscow-Kursk line in
the east. Merging with the indigenous
population, they gave rise to the Balts, a
distinct Indo-European ethnic group whose
descendants are the present-day Lithuanian and
Latvian nations and the now extinct Prussians.
The name "Lietuva", or Lithuania, might be
derived from the word "lietava," for a small
river, or "lietus," meaning rain (or land of
rain).
Lithuanians are neither Slavic nor Germanic,
although the union with Poland and Germanic and
Russian colonization and settlement left
cultural and religious influences. This highly
literate society places strong emphasis upon
education, which is free and compulsory until
age 16. Most Lithuanians and ethnic Poles belong
to the Roman Catholic Church; Orthodoxy is the
largest non-Catholic denomination.
Enduring several border changes, Soviet
deportations, a massacre of its Jewish
population, and German and Polish repatriations
during and after WWII, Lithuania has maintained
a fairly stable percentage of ethnic Lithuanians
(from 79.3% in 1959 to 83.5% in 2002).
Lithuania's citizenship law and constitution
meet international and OSCE [Organization for
Security and Cooperation in Europe] standards,
guaranteeing universal human and civil rights.
The Lithuanian language still retains the
original sound system and morphological
peculiarities of the prototypal Indo-European
tongue and therefore is fascinating for
linguistic study. Between 400-600 AD, the
Lithuanian and Latvian languages split from the
Eastern Baltic (Prussian) language group, which
subsequently became extinct. The first known
written Lithuanian text dates from a hymnal
translation in 1545. Written with the Latin
alphabet, Lithuanian has been the official
language of Lithuania again since 1989. The
Soviet era had imposed the official use of
Russian, so many Lithuanians speak Russian as a
second language while the resident Slavic
populace generally speaks Russian or Polish as a
first language.
HISTORY
The first written mention of Lithuania occurs in
1009 AD, although many centuries earlier the
Roman historian Tacitus referred to the
Lithuanians as excellent farmers. Spurred by the
expansion into the Baltic lands of the Germanic
monastic military orders (the Order of the
Knights of the Sword and the Teutonic Order)
Duke Mindaugas united the lands inhabited by the
Lithuanians, the Samogitians, Yotvingians, and
Couranians into the Grand Duchy of Lithuania (GDL)
in the 1230s-40s. In 1251 Mindaugas adopted
Catholicism and was crowned King of Lithuania on
July 6, 1253; a decade later, civil war erupted
upon his assassination until a ruler named
Vytenis defeated the Teutonic Knights and
restored order.
From 1316 to 1341 Vytenis' brother and
successor, Grand Duke Gediminas, expanded the
empire as far as Kiev against the Tatars and
Russians. He twice attempted to adopt
Christianity in order to end the GDL's political
and cultural isolation from western Europe. To
that purpose, he invited knights, merchants, and
artisans to settle in Lithuania and wrote
letters to Pope John XXII and European cities
maintaining that the Teutonic Order's purpose
was to conquer lands rather than spread
Christianity. Gediminas' dynasty ruled the GDL
until 1572. In the 1300s through the early
1400s, the Lithuanian state expanded eastward.
During the rule of Grand Duke Algirdas
(1345-77), Lithuania almost doubled in size. The
1385 Kreva Union signed by the Grand Duke of
Lithuania Jogaila (ruled in 1377-81 and 1382-92)
and the Queen of Poland Jadwyga intensified
Lithuania's economic and cultural development,
orienting it toward the West.
Lithuania's independence under the union with
Poland was restored by Grand Duke Vytautas.
During his rule (1392-1430) the GDL turned into
one of the largest states in Europe,
encompassing present-day Belarus, most of
Ukraine, and the Smolensk region of western
Russia. Led by Jogaila and Vytautas, the united
Polish-Lithuanian army defeated the Teutonic
Order in the Battle of Tannenberg (Grunewald or
Zalgiris) in 1410, terminating the medieval
Germanic drive eastward.
The 16th century witnessed a number of wars
against the growing Russian state over the
Slavic lands ruled by the GDL. Coupled with the
need for an ally in those wars, the wish of the
middle and petty gentry to obtain more rights
already granted to the Polish feudal lords drew
Lithuania closer to Poland. The Union of Lublin
in 1569 united Poland and Lithuania into a
commonwealth in which the highest power belonged
to the Sejm of the nobility and its elected King
who also was the Grand Duke of Lithuania.
Mid-16th century land reform strengthened
serfdom and yet promoted the development of
agriculture owing to the introduction of a
regular three-field rotation system.
The 16th century saw a more rapid development
of agriculture, growth of towns, spread of ideas
of humanism and the Reformation, and book
printing. The emergence of Vilnius University in
1579 and the Lithuanian Codes of Law (the
Statutes of Lithuania) stimulated the
development of culture both in Lithuania and in
neighboring countries.
The Polish-Lithuanian Republic was weakened
by the rising domination of the big magnates,
and the 16th-18th-century wars against Russia
and Sweden over Livonia, Ukraine, and
Byelorussia. The end of the 18th century
witnessed three divisions of the commonwealth by
Russia, Prussia, and Austria; in 1795 most of
Lithuania became part of the Russian empire.
Attempts to restore independence in the
uprisings of 1794, 1830-31, and 1863 were
suppressed and followed by a tightened police
regime, increasing Russification, the closure of
Vilnius University in 1832, and the 1864 ban on
the printing of Lithuanian books in traditional
Latin characters.
Because of his proclamation of liberation and
self-rule, many Lithuanians gratefully
volunteered for the French Army when Napoleon
occupied Kaunas in 1812 during the fateful
invasion of Russia. After the war, Russia
imposed extra taxes on Catholic landowners and
enserfed an increasing number of peasants. A
market economy slowly developed with the
abolition of serfdom in 1861. Lithuanian farmers
grew stronger, and an increase in the number of
intellectuals of peasant origin led to the
growth of a Lithuanian national movement. In
German-ruled East Prussia, also called Lithuania
Minor, Königsberg or Kaliningrad, Lithuanian
publications were printed in large numbers and
then smuggled into Russian-ruled Lithuania. The
most outstanding leaders of the national
liberation movement were J. Basanavicius and V.
Kudirka. The ban on the Lithuanian press finally
was lifted in 1904.
During WW I, the German Army occupied
Lithuania in 1915, and the occupation
administration allowed a Lithuanian conference
to convene in Vilnius in September 1917. The
conference adopted a resolution demanding the
restoration of an independent Lithuanian state
and elected the Lithuanian Council, a standing
body chaired by Antanas Smetona. On February 16,
1918, the council declared Lithuania's
independence. The years 1919-20 witnessed
Lithuania's War for Independence against three
factions--the Red Army, which in 1919 controlled
territory ruled by a Bolshevist government
headed by V. Kapsukas; the Polish Army; and the
Bermondt Army, composed of Russian and German
troops under the command of the Germans.
Lithuania failed to regain the Polish-occupied
Vilnius region.
In the Moscow Treaty of July 12, 1920, Russia
recognized Lithuanian independence and renounced
all previous claims to it. The Seimas
(parliament) of Lithuania adopted a constitution
on August 1, 1922, declaring Lithuania a
parliamentary republic, and in 1923 Lithuania
annexed the Klaipeda region, the northern part
of Lithuania Minor. By then, most countries had
recognized Lithuanian independence. After a
military coup on December 17, 1926, Nationalist
Party leader Antanas Smetona became president
and gradually introduced an authoritarian
regime.
Lithuania's borders posed its major foreign
policy problem. Poland's occupation (1920) and
annexation (1922) of the Vilnius region strained
bilateral relations, and in March 1939 Germany
forced Lithuania to surrender the Klaipeda
region. Radical land reform in 1922 considerably
reduced the number of estates, promoted the
growth of small and middle farms, and boosted
agricultural production and exports, especially
livestock. In particular, light industry and
agriculture successfully adjusted to the new
market situation and developed new structures.
The inter-war period gave birth to a
comprehensive system of education with
Lithuanian as the language of instruction and
the development of the press, literature, music,
arts, and theater. On August 23, 1939, the
Molotov-Ribbentrop Pact pulled Lithuania first
into the German sphere of influence and then
brought Lithuania under Soviet domination
following the Soviet-German agreement of
September 28, 1939. Soviet pressure and a
complicated international situation forced
Lithuania to sign an agreement with the U.S.S.R.
on October 10, 1939, by which Lithuania was
given back the city of Vilnius and the part of
Vilnius region seized by the Red Army during the
Soviet-Polish war. In return, some 20,000 Soviet
soldiers were deployed in Lithuania.
On June 14, 1940, the Soviet Government
issued an ultimatum to Lithuania, demanding the
formation of a new Lithuanian government and
permission to station additional Red Army
troops. Lithuania succumbed to the Soviet
demand, and 100,000 Soviet troops moved into the
country the next day. Arriving in Kaunas, the
Soviet Government's special envoy began
implementing the plan for Lithuania's
incorporation into the U.S.S.R. On June 17 the
alleged people's government, headed by J.
Paleckis, was formed. Rump parliamentary
elections were held a month later, and Lithuania
was proclaimed a Soviet Socialist Republic on
August 3. Totalitarian rule was established,
Sovietization of the economy and culture began,
and Lithuanian state employees and public
figures were arrested and exiled to Russia.
During the mass deportation campaign of June
14-18, 1941, about 7,439 families (12,600
people) were deported to Siberia without
investigation or trial; 3,600 people were
imprisoned, and more than 1,000 massacred.
A Lithuanian revolt against the U.S.S.R.
quickly followed the outbreak of the war against
Germany in 1941. The rebels declared the
restoration of Lithuania's independence and
actively operated a provisional government,
without German recognition, from June 24 to
August 5. Lithuania became part of the German
occupational administrative unit of Ostland.
People were repressed and taken to forced labor
camps in Germany. The Nazis and local
collaborators deprived Lithuanian Jews of their
civil rights and massacred about 200,000 of
them. Together with Soviet partisans, supporters
of independence put up a resistance movement to
deflect Nazi recruitment of Lithuanians to the
German Army.
The Red Army forced the Germans out of
Lithuania in 1944 and reestablished control.
Sovietization continued with the arrival of
communist party leaders to create a local party
administration. The mass deportation campaigns
of 1941-52 exiled 29,923 families to Siberia and
other remote parts of the Soviet Union. Official
statistics state that more than 120,000 people
were deported from Lithuania during this period,
while some sources estimate the number of
political prisoners and deportees at 300,000. In
response to these events, an estimated several
tens of thousands of resistance fighters
participated in unsuccessful guerilla warfare
against the Soviet regime from 1944-53. Soviet
authorities encouraged immigration of other
Soviet workers, especially Russians, as a way of
integrating Lithuania into the Soviet Union and
of fomenting industrial development.
Until mid-1988, all political, economic, and
cultural life was controlled by the Lithuanian
Communist Party (LCP). The political and
economic crisis that began in the U.S.S.R. in
the mid-1980s also affected Lithuania, and
Lithuanians as well as other Balts offered
active support to Gorbachev's program of social
and political reforms. Under the leadership of
intellectuals, the Lithuanian reform movement "Sajudis"
was formed in mid-1988 and declared a program of
democratic and national rights, winning
nationwide popularity. Inspired by Sajudis, the
Lithuanian Supreme Soviet passed constitutional
amendments on the supremacy of Lithuanian laws
over Soviet legislation, annulled the 1940
decisions on proclaiming Lithuania a part of the
U.S.S.R., legalized a multi-party system, and
adopted a number of other important decisions. A
large number of LCP members also supported the
ideas of Sajudis, and with Sajudis support,
Algirdas Brazauskas was elected First Secretary
of the Central Committee of the LCP in 1988. In
December 1989, the Brazauskas-led LCP split from
the CPSU and became an independent party,
renaming itself in 1990 the Lithuanian
Democratic Labor Party.
In 1990, Sajudis-backed candidates won the
elections to the Lithuanian Supreme Soviet. On
March 11, 1990, its chairman Vytautas
Landsbergis proclaimed the restoration of
Lithuanian independence, formed a new Cabinet of
Ministers headed by Kazimiera Prunskiene, and
adopted the Provisional Fundamental Law of the
state and a number of by-laws. The U.S.S.R.
demanded revocation of the act and began
employing political and economic sanctions
against Lithuania as well as demonstrating
military force. On January 10, 1991, U.S.S.R.
authorities seized the central publishing house
and other premises in Vilnius and unsuccessfully
attempted to overthrow the elected government by
sponsoring a local "National Salvation
Committee." Three days later the Soviets
forcibly took over the TV tower, killing 14
civilians and injuring 700. During the national
plebiscite in February more than 90% of those
who took part in the voting (76% of all eligible
voters) voted in favor of an independent,
democratic Lithuania. Led by the tenacious
Landsbergis, Lithuania's leadership continued to
seek Western diplomatic recognition of its
independence. Soviet military-security forces
continued forced conscription, occasional
seizure of buildings, attacking customs posts,
and sometimes killing customs and police
officials.
During the August 19 coup against Gorbachev,
Soviet military troops took over several
communications and other government facilities
in Vilnius and other cities but returned to
their barracks when the coup failed. The
Lithuanian Government banned the Communist Party
and ordered confiscation of its property.
Despite Lithuania's achievement of complete
independence, sizable numbers of Russian forces
remained on its territory. Withdrawal of those
forces was one of Lithuania's top foreign policy
priorities. Lithuania and Russia signed an
agreement on September 8, 1992, calling for
Russian troop withdrawals by August 31, 1993,
which took place on time.
GOVERNMENT AND POLITICAL CONDITIONS
Lithuania is a multi-party, parliamentary
democracy. The president, who is elected
directly for 5 years, is head of state and
commander in chief overseeing foreign and
security policy. The president nominates the
prime minister and his cabinet and a number of
other top civil servants.
The parliament (Seimas) has 141 members that
are elected for a 4-year term. About half of the
members are elected in single constituencies
(71), and the other half (70) are elected in the
nationwide vote by party lists. A party must
receive at least 5% of the national vote to be
represented in the Seimas.
Since 1991, Lithuanian voters have shifted
from right to left and back again, swinging
between the Conservatives, led by Vytautas
Landsbergis (now headed by Andrius Kubilius),
and the Labor (former communist) Party, led by
former president Algirdas Brazauskas. This
pattern was broken in the October 2000 elections
when the Liberal Union and New Union parties won
the most votes and were able to form a centrist
ruling coalition with minor partners. President
Adamkus played a key role in bringing the new
centrist parties together. The leader of the
center-left New Union (also known as the Social
Liberal party), Arturas Paulauskas, became the
Chairman of the Seimas. The then-government of
liberal Rolandas Paksas got off to a rocky start
and collapsed within 7 months. In July 2001, the
center-left New Union Party forged an alliance
with the left-wing Social Democratic Party and
formed a new cabinet under former President
Algirdas Brazauskas.
In January 2003, former Prime Minister and
Liberal Union Party leader Rolandas Paksas
defeated incumbent president Valdas Adamkus in a
runoff presidential election. In December 2003,
an ad hoc parliamentary commission found that
President Paksas' vulnerability to influence
constituted a threat to national security. On
April 7, 2004, parliament removed President
Paksas from office. Parliamentary Speaker
Arturas Paulauskas became acting President.
Valdas Adamkus won the second round of
presidential elections in June 2004 and was
sworn in as President on July 12, 2004. The
first round of parliamentary elections was held
October 10, 2004 and a second round was held
October 24, 2004. A new government, led by Prime
Minister Algirdas Brazauskas, took office on
December 14, 2004. On April 11, 2006,
Parliamentary Speaker Paulauskas was removed
from his position following a vote of
no-confidence. That same day, Paulauskas
announced the withdrawal of his New Union party
from the ruling coalition, including Foreign
Minister Antanas Valionis and Social Welfare and
Labor Minister Vilija Blinkeviciute.
Lithuania officially became a member of the
North Atlantic Treaty Organization on March 29,
2004 after depositing its instruments of treaty
ratification in Washington, DC. Lithuania joined
the European Union on May 1, 2004.
Principal Government Officials
President--Valdas Adamkus
Prime Minister--Algirdas Brazauskas, Social
Democratic Party
Minister of Foreign Affairs--Antanas Valionis,
New Union
Minister of Defense--Gediminas Kirkilas, Social
Democratic Party
Minister of Interior--Gintaras Furmanavicius,
Labor Party
Minister of Justice--Gintautas Buzinskas, Labor
Party
Minister of Finance--Zigmantas Balcytis, Social
Democratic Party
Minister of Transportation--Petras Povilas Cesna
Minister of Economy--Kestutis Dauksys, Labor
Party
Minister of Agriculture--Kazimira Prunskiene,
Peasant Party
Minister of Education and Science--Remigijus
Motuzas
Minister of Health--Zilvinas Padaiga, Labor
Party
Minister of Social Security and Labor--Vilija
Blinkeviciute, New Union
Minister of Culture--Vladimiras Prudnikovas,
Labor Party
Minister of Environment--Arunas Kundrotas,
Social Democratic Party
Seimas Chairman--Vydas Gedvilas, Acting
Lithuania maintains an
embassy
in the United States, temporarily located at
4590 MacArthur Blvd, Suite 200, Washington, DC,
20007, tel: (202) 234-5860.
ECONOMY
The Soviet era brought Lithuania intensive
industrialization and economic integration into
the U.S.S.R., although the level of technology
and state concern for environmental, health, and
labor issues lagged far behind Western
standards. Urbanization increased from 39% in
1959 to 68% in 1989. From 1949-52 the Soviets
abolished private ownership in agriculture,
establishing collective and state farms.
Production declined and did not reach pre-war
levels until the early 1960s. The
intensification of agricultural production
through intense chemical use and mechanization
eventually doubled production but created
additional ecological problems. This changed
after independence, when farm production dropped
due to difficulties in restructuring the
agricultural sector.
The transportation infrastructure inherited
from the Soviet period is adequate and has been
generally well maintained since independence.
Lithuania has one ice-free seaport with ferry
services to German, Swedish, and Danish ports.
There are operating commercial airports with
scheduled international services at Vilnius,
Kaunas, and Klaipeda. The road system is good.
Border facilities at checkpoints with Poland
were significantly improved by using EU funds.
Telecommunications have improved greatly since
independence as a result of heavy investment.
The national telecommunications company had a
monopoly on the market until the end of 2002,
but now several cell phone companies provide
competition.
The economy of independent Lithuania had a
slow start, as the process of privatization and
the development of new companies slowly moved
the country from a command economy toward the
free market. By 1998, the economy had survived
the early years of uncertainty and several
setbacks, including a banking crisis, and seemed
poised for solid growth. However, the collapse
of the Russian ruble in August 1998 shocked the
economy into negative growth and forced the
reorientation of trade from Russia toward the
West. Since the ruble crisis, the focus of
Lithuania's export markets has shifted from East
to West. In 1997, exports to former Soviet
states were 45% of total Lithuanian exports. In
2005, exports to the East (the Commonwealth of
Independent States--CIS) were only 18% of the
total, while exports to the EU-25 were 65%. The
government of 1999, which was led by Prime
Minister Kubilius, managed to control raging
budget deficits in the midst of the crisis, and
all successor governments have maintained that
fiscal discipline.
The last couple of years have been good for
the Lithuanian economy. In 2005, Lithuania’s GDP
increased 7.5%, above expectations. Private
consumption has been the principal driver of
recent economic growth. The contribution of
domestic market oriented sectors, especially
construction, has also increased. Growth in 2005
was strongest in construction, retail and
wholesale trade, and processing and light
industries. Inflation was moderate, GDP growth
was strong, and the government’s budget deficit
stood at 1.2% of GDP in 2005. Lithuania
continues to harmonize its regulatory
environment with European Union requirements.
Weaknesses remain in public policy development
and structural and agricultural reforms.
Lithuania pegged its national currency, the
litas, to the euro on February 2, 2002 at the
rate of LTL 3.4528 for EUR 1. The government
hopes to join the single European currency zone
on January 1, 2007, but its current inflation
rate may reach or exceed the limit, forcing the
government to postpone entry.
Lithuania has privatized nearly all formerly
state-owned enterprises. More than 70% of the
economy’s output is generated by the private
sector. The share of employees in the private
sector exceeds 72%. The Government of Lithuania
completed banking sector privatization in 2001,
with 89% of this sector controlled by
foreign--mainly Scandinavian--capital. The
government completed privatization of the
national gas and power companies "Lietuvos
Dujos" (Lithuanian Gas) and “Vakaru skirstomieji
tinklai” (Western electricity distributor).
“Rytu skirtomieji tinklai” (Eastern electricity
distributor), "Lietuvos Energija" (Lithuanian
Energy), and "Lithuanian Railways" remain
state-owned.
Inflation reached 2.7% in 2005. The minimum
wage increased in 2005 to $198 per month,
slightly above the poverty threshold. The
average wage stands at $464 per month.
Exports to the United States make up 4.7% of
all Lithuania's exports, and imports from the
United States comprise 2% of total imports to
Lithuania. Lithuania has accumulated foreign
direct investment (FDI) of $6.8 billion. The
stock of U.S. investments amounted to $300
million at the end of 2005, accounting for 5% of
FDI. The current account deficit in 2005 stood
at 7% of GDP.
DEFENSE
Lithuania, a relatively new NATO member, fully
endorses the concept of "collective defense."
National policy recognizes the primacy of NATO
as the guarantor of security in Europe. The goal
of Lithuania's defense policy is to create a
military that can contribute to international
missions through the NATO alliance, the UN, and
other groups, and to continue to integrate
Lithuania into Western defense structures. The
defense ministry is responsible for combat
forces, search and rescue operations, and
intelligence. The government has committed to
achieving the goal of dedicating 2% of GDP for
defense spending.
Lithuania maintains 8,500 active duty troops
and 8,000 reserve troops. The core of the
Lithuanian force structure is the Iron Wolf
Rapid Reaction Brigade, which consists of five
battalions and appropriate support elements. The
Lithuanian Air Force operates 17 fixed wing
aircraft and nine helicopters. The Home Guard is
currently organized into seven districts. Plans
call for reorganization into five districts.
The Border Police are under the Interior
Ministry and are responsible for border
protection, passport and customs duties, and
interdiction of smuggling and trafficking
activities.
FOREIGN RELATIONS
Lithuania became a member of the United Nations
on September 18, 1991, and is a signatory to a
number of its organizations and other
international agreements. It also is a member of
the Organization for Security and Cooperation in
Europe, the North Atlantic Coordinating Council,
and the Council of Europe. Lithuania gained
membership in the World Trade Organization on
May 31, 2001, and in November 2002 was invited
to join NATO. Lithuania officially became a
member of the North Atlantic Treaty Organization
on March 29, 2004 after depositing its
instruments of treaty ratification in
Washington, DC. Lithuania joined the European
Union on May 1, 2004.
Lithuania maintains foreign diplomatic
missions in 60 countries on six continents, a
consular post in one country that is not
represented by an embassy, consular posts led by
Honorary Consuls in 32 countries that are not
represented by an embassy, and a special mission
in one country without other diplomatic
representation. Lithuania's liberal
"zero-option" citizenship law has substantially
erased tensions with its neighbors. Its
suspension of two strongly ethnic Polish
district councils on charges of blocking reform
or disloyalty during the August 1991 coup had
cooled relations with Poland, but bilateral
cooperation markedly increased with the holding
of elections in those districts and the signing
of a bilateral friendship treaty in 1994.
Relations with Poland are now among the closest
enjoyed by Lithuania. Although a similar
bilateral friendship agreement was signed with
Belarus in 1995, Lithuania has joined the United
States and other European nations in urging the
Government of Belarus to adopt democratic and
economic reforms. President Adamkus was
instrumental in brokering a peaceful resolution
to the electoral challenges in Ukraine in 2004,
and Lithuania plays an important leadership role
in promoting democracy throughout the region.
U.S.-LITHUANIAN RELATIONS
The United States established diplomatic
relations with Lithuania on July 28, 1922. The
Soviet invasion forced the closure of the
Legation to Lithuania on September 5, 1940, but
Lithuanian representation in the United States
continued uninterrupted. The United States never
recognized the forcible incorporation of
Lithuania into the U.S.S.R. and views the
present Government of Lithuania as a legal
continuation of the interwar republic. Lithuania
has enjoyed most-favored-nation treatment with
the United States since December 1991. Since
1992, the United States has committed more than
$100 million to Lithuania's economic and
political transformation and to address
humanitarian needs. The United States and
Lithuania signed an agreement on bilateral trade
and intellectual property protection in 1994--a
bilateral investment treaty in 1997, and in
1998, the United States signed a "Charter of
Partnership" with Lithuania and the other Baltic
countries. Under this partnership, bilateral
working groups focusing on improving regional
security, defense, and economic issues were
established.
Principal U.S. Officials
Ambassador--Stephen
Mull
Deputy Chief of Mission--Thomas Kelly
Political/Economic Officer--Nancy Cohen
Public Affairs Officer--Anthony Pahigian
Defense Attaché--LTC Joseph King (USA)
Defense Cooperation Officer--LTC R. Darr Reimers
Management Officer--Cheryl Johnson
Consular Officer--James Fellows
The
U.S. Embassy in Lithuania is located at
Akmenu 6, 2600 Vilnius [tel/fax: (370)
5-2665500]. The Embassy website is
http://vilnius.usembassy.gov/