Official translation
SEIMAS OF THE REPUBLIC OF LITHUANIA
RESOLUTION
LONG-TERM DEVELOPMENT STRATEGY OF THE STATE
12 November 2002
No. IX-1187
seeking to create an open, just and harmonious civil society based on the rule of law;
asserting that the state regulates its economy to make it serve for the common good of the nation and that the state supports economic efforts and initiatives which are of benefit to society;
having regard to the Presidency Conclusions of the Lisbon European Council;
having regard to the fact that the formulation of the Long-Term Development Strategy of the State is essential in the implementation of the strategic management of the country as a function of the state and in defining the key targets in the long-term perspective of the development of the country;
mindful of the fact that strategic management of the country’s development is viewed as a function of the state in the formulation, implementation and analysis of the strategy,
h a s r e s o l v e d a s f o l l o w s :
Article 2.
To recommend to the Government:
1) to establish a system of strategic analysis and monitoring by attracting to it state and research institutions and to record periodically the results of the implementation of the strategy and market changes;
2) to revise the national strategies and programmes which have been approved to date; to develop new programmes and conceptions necessary for the implementation of the strategy, make them mutually consistent, taking into account the Presidency Conclusions of the Lisbon European Council;
3) to have regard to the provisions of this Strategy when reviewing and approving the strategic action plans and other documents relating to planning of state institutions.
CHAIRMAN OF THE SEIMAS
OF THE REPUBLIC OF LITHUANIA ARTŪRAS PAULAUSKAS
APPROVED
by Resolution No. IX-1187
of 12 November 2002
of the Seimas of the
Republic of Lithuania
LONG-TERM DEVELOPMENT STRATEGY OF THE STATE
Vilnius 2002
PRIORITIES OF THE LONG-TERM DEVELOPMENT OF THE STATE
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DIRECTIONS IN THE IMPLEMENTATION OF THE PRIORITIES
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Since 11 March 1990 when Lithuania re-established its statehood, the country has lived through a daunting period of transition from a planned to a market economy, overcoming on its way many obstacles, difficulties and crises. The reforms that have been implemented in all spheres of life afforded Lithuania an opportunity to change fundamentally its legal foundations, to implement the decisions which laid the basis for the functioning of the market. Major changes have occurred in the society and public life. The Lithuanian society realized its strategic goals and set them out in the 1992 Constitution. The Constitution of the Republic of Lithuania which was adopted by a referendum has laid down unequivocally provisions to create an open, just and civil society based on the rule of law, to contribute to the establishment of the international order based on law and justice, to join international organisations unless this contradicts the interests and independence of the State. The people of Lithuania enshrined in their Constitution the fundamentals for the relations between the individual and the state and between the society and the State based on the principles of democracy, the rule of law, respect for human rights and the ethnic minority rights. Lithuania has resolved that the State should regulate economic life in a way that would best serve the welfare of the nation.
In this way prerequisites were laid for Lithuania to formulate its strategic goals, above all, its accession to the European Union as a community of nations and states founded on democracy, respect for human rights and rights of ethnic minorities, a community where a welfare state and the European model of social and economic market have been established, where competition and solidarity, equality and justice are finely balanced. As a result, in 1995, Lithuania signed and in 1996 ratified the Europe Agreement establishing an association between the European Communities and their Member States, on the one part, and the Republic of Lithuania, on the other part. In 2002 Lithuania is about to complete the process of accession negotiations with the European Union.
The European Union, too, has witnessed momentous changes. The European Council meetings kept formulating long-term goals for the development of the European Union. An example of this was the Presidency Conclusions of the Lisbon European Council on 23-24 March, 2000 stating that by the year 2010 economy of the European Union must become the most competitive and dynamic knowledge-based economy in the world and must achieve full employment: “The European social model must be modernised by investing in people and building an active welfare state. People are Europe’s main asset and should be the focal point of the Union’s policies. Investing in people and developing an active and dynamic welfare state will be crucial both to Europe’s place in the knowledge economy and for ensuring that the emergence of this new economy does not compound the existing social problems of unemployment, social exclusion and poverty”.
The Presidency Conclusions of the Lisbon European Council were adjusted in March 2002 during the European Union Barcelona Summit. The guidelines for social, economic and environment protection policies adopted in Lisbon and adjusted in Barcelona also set the targets for the long-term development strategy of the State of Lithuania by envisaging the immediate goals as well as the goals for the coming decade. In the Regular Report on Lithuania’s Progress Towards Accession announced by the European Commission on 9 October 2002, Lithuania is rated as a country which meets the Copenhagen criteria, is a functioning market economy and is capable of coping with competitive pressure within the European Union.
The above assessment allows us to assume that the provisions formulated in the documents of the Lisbon and Barcelona European Councils are acceptable to us and set to us a target - to formulate a long-term development strategy for the State, giving an assessment of the current situation in the country, outlining a vision of the State and setting the priorities of the long-term development of the State and their direction. It is the only way to create the prerequisites for the successful participation of Lithuania in the social model of Europe and to realise the fundamental aspirations of our people to live in a secure society, to create a knowledge-based economy, to live in a clean and healthy environment, to have a competitive economy and to make it all serve our aspiration which is enshrined in the Constitution – the common good of the people.
THE ULTIMATE GOAL OF THE LONG-TERM DEVELOPMENT STRATEGY OF THE STATE
The ultimate goal of the Long-Term Development Strategy of the State is to provide an environment for the development of the country’s material and spiritual wealth which can be best defined as a knowledge society, a secure society and a competitive economy.
This would allow us to create the conditions for the development of a person’s possibilities of choice in all spheres of his life – economic, social, cultural and political; and, by investing into education, training and health care, to reinforce the human potential/human capital. Such an approach must apply to all the people of the country and provide conditions under which an individual could make use of his abilities for taking part in economic and creative activities, politics, public life and recreation.
I. SITUATION ANALYSIS
1. Environment Factors
In the coming fifteen years the following factors shall have the greatest impact on the international situation of Lithuania: consolidation and effective use of Lithuania’s membership in the European Union and NATO for securing the national interests; a consistent transformation of these organisations and their role in world politics; the success of the policy of good neighbourhood pursued by Lithuania and its ability to exploit the opportunities offered by the expanding co-operation in the Baltic Sea Area; the further development of the partnership between the USA and the European Union; the future reform processes in Russia and its vision of the Kaliningrad District; the processes of globalisation and its corollary - the development of international economic relations as well the variety of factors determining the security and stability of the world, diversity of cultures and the capacity of the world community to overcome non-traditional and transnational threats.
Strengths
Lithuania has lived through a very complicated period of transition to a market economy and is at present a country with a functioning market and an open economy. Democracy has taken root, the political situation is stable, the key market institutions and prerequisites for the economic development have been established and the capacities for delivering a consistent economic, financial, social and employment policy have increased considerably.
Lithuania’s geographical position in the region gives it a possibility to be active in both North-South and East-West directions and to make the most of the advantages afforded by its geographical position - the Baltic Sea region is an important hub of transport and trade routes in the centre of Europe. Lithuania’s geographical position is convenient for transit; two transport corridors of continental significance cross its territory. The development of transit is significantly aided by the fact that Lithuania is a maritime state with an ice-free sea port of Klaipėda having a modern container terminal. The country has a modern road network and a high quality system for their maintenance and repair. The processes of integration continue to play a dominant role in Europe. This is best evidenced by the development of the EU and NATO. Consolidation of the irreversibility of the advances of independence is Lithuania’s strategic objective and it is for this reason that membership in the European Union and NATO is regarded as the most effective and reliable way for the consolidation of these historic achievements.
During the current decade Lithuania will continue to strengthen its role as one of the leaders in the Baltic Sea region, especially in assisting the European Union and NATO to develop their policy towards its neighbours in the East which will, in its turn, contribute to the security and stability of the whole region. Targeted and balanced policy pursued by Lithuania towards Byeloruss, the Russian Federation and the Ukraine, the readiness of Lithuania to share its experience in establishing democracy and integration with the Trans-Caucasian and Central Asian countries by encouraging their relations with the democratic world will be a steady and continuous contribution of Lithuania to the enhancement of stability and Central and Eastern Europe.
At present Lithuania does not see any direct military threats to its national security; it does not hold any foreign country as its enemy, its security policy is open, transparent and non-confrontational and is not directed against the lawful interests of any other state.
Its work force has sufficient education and qualifications; it has greater capacities to meet the requirements of market economy and enterpreneurship.
An even distribution of major cities and smaller towns is favourable for a smooth economic, social and cultural development.
Forests cover one-third of the territory of the country. 12 per cent of Lithuania’s territory are protected areas where landscape sites, nature species and habitats, rare or endangered in the region of the European Union, are under conservation.
Lithuania has a relatively well-developed network of educational and research institutions boasting a strong scientific potential.
Foundations have been laid for the system of regulation, codification and oversight of the state language.
The sector of information technologies and telecommunications (ITT) is growing rapidly.
The country has a rich historical and cultural heritage, living ethnic and cultural traditions, historical and cultural relations with Western and Eastern Europe, professional arts of a superior quality and a dense network of cultural institutions.
Weaknesses
In its economic development Lithuania is far behind the Member States of the European Union; according to realistic estimates, it will need about thirty years for bridging this gap.
Lithuania is a small country which re-established its independence not long ago. It still lacks adequate administrative and economic capacities in order to be able promote its interests actively in the world.
The economy of the country does not yet provide adequate conditions for social development and employment. Social differentiation between the regions, differences in health and health care between social and economic groups of people have grown; the level of employment is low and unemployment is high and structurally unfavourable; territorial and professional mobility of its work force, job quality and flexibility of the labour market are inadequate; the unofficial labour market is quite large; shadow employment thrives; the country is losing a portion of its work force owing to migration; education and employment of juveniles receives too little attention; there is no system for the social integration of persons after release from penal institutions.
The work force is not able to adjust to the market needs; the physical capital in many places is technologically obsolete; introduction of innovations proceeds slowly, the level of enterpreneurship is low.
The system for interface between research and industry based on the contemporary model of introduction of innovations is non-existent.
Lithuania is far behind the Member States of the European Union in the sphere of computerisation and the use of information technologies.
The introduction of the Lithuanian language into the electronic media is too slow.
The structure of industry is outdated. Production of high technologies is minimal. The infrastructure of business services is still in its infancy.
Competitiveness in agriculture is insufficient. Manufacturing and social infrastructure in the countryside are underdeveloped.
The potential of the energy sector is used inefficiently. The electricity and gas networks of Lithuania have no direct connection to the energy systems of Western Europe. The consumption of energy in all sectors of economy is not rational.
The infrastructure of transport and the fleet of the rolling stock, especially in the railway system, are obsolete.
Lithuania lacks experience in the state strategic management of the development of economy and competitiveness on a national scale.
The area of natural and semi-natural territories is shrinking in the zones of intensive economic activity; the natural landscape is disappearing, its structure is changing; the development of information systems and recreational infrastructure is insufficient in the most widely visited territories; there are many old, small and polluting landfills and polluted areas; the system of waste collection and management is functioning unsatisfactorily.
The infrastructure of cultural property is outdated; cultural heritage has not been properly systematised and protected.
Little attention is given to the fostering of living ethnic culture in its natural surroundings.
Opportunities
Membership in the European Union will enable Lithuania to implement the EU social market model, to raise the levels of economic prosperity, quality of life and non-military security guarantees. Over the coming decade Lithuania will adjust itself to the economic order of the European Union and will have a smoothly operating system of market mechanisms. The EU aid funds will allow Lithuania to modernise its infrastructure. Improvements in the economic situation, more efficient administrative capacities as well as curbing of negative tendencies will create possibilities to secure a stable system of social protection and health care, and the development of national culture.
When Lithuania becomes a member of the EU it will be able:
to make use of the vast market of the EU,
to take over its institutional and administrative experience,
to get integrated into the technological and digital area of Europe, to prepare its state language for functioning on equal rights in the multilingual information area of Europe and the world,
to receive solid financial and technological aid,
to protect its economic interests while influencing the economic policy of the EU,
to have a stable currency and a stable macroeconomic environment,
to join, in the immediate future, the Schengen area which shall be assisted by the enhancement of the security of the eastern borders of Lithuania and the European Union;
to modernise and expand, through the use of the funds of the EU and other international institutions, the infrastructure of transport, energy and environmental protection (improvement of water quality and supply, collection and treatment of waste, waste management etc.).
Lithuania’s membership in the EU shall have a positive effect on the stimulation of employment and the development of the quality of labour and life and civilised labour relations.
Lithuania’s membership in NATO shall create conditions for the creation of an effective and reliable defence system in line with NATO standards.
By a rational use of the processes of globalisation and internationalisation of economy, Lithuania will be able to expand production co-operation of industry and services, to adopt new technologies and experience, to develop successfully the possibilities of e-business, to receive financial services of good quality and at a reasonable price.
Lithuania will secure for itself a niche in the European market of transport services.
The overall growth of the demand for food, organic food products and advances in biotechnology will open up new possibilities for agriculture and the food industry.
Planning and making use of the structural aid from the European Union which will make up the major part of all the investments in the country (up to 4 per cent of the GDP) will improve the management of national resources. Continuity of fiscal policy and fiscal discipline will allow to finance the demand for loans at minimum costs and risk, while the development of the internal financial market will guarantee a source of funds alternative to foreign markets.
An active promotion of the positive image of Lithuania in the world and its use for securing the interests of Lithuania.
A vigorous and open culture of Lithuania cherishing the traditional values and the Lithuanian language contributing to the linguistic and cultural diversity of Europe and the world; an successful development of professional art and regional culture.
Threats
Dissemination of weapons of mass destruction, their components and manufacturing technologies still remains a universal threat. The development of science and technology makes chemical, biological and bacteriological weapons more accessible. The spread of information technologies creates cyber threats. The democratic community of the world, including Lithuania will have to give a great deal of attention to transnational threats, international terrorism above all.
The likelihood of a direct military confrontation in the region is small , however, the danger of demonstration of military might, provocations and threats of use of force remain dangerous for the security of the Republic of Lithuania.
Political, economic and social tensions and the likelihood of conflicts in the neighbouring states and regions.
International economic and financial crises and international threats such as international organised crime, corruption, illegal trafficking in arms, narcotic drugs and people, illegal migration, violation of human rights and the rights of ethnic minorities etc. definitely deserve more attention.
With the changing geopolitical environment of Lithuania, the increasing domination of the English language on the material and intellectual market in the economic and social life of the country, the shrinking of the spheres of use of the state language weaken the motivation for acquiring a professional training and employment in the state language.
In international relations the impact of energy and natural resources remains highly important. The major part of oil and natural gas is produced in the world regions where stability, as a rule, is weak. Their instability , the likelihood of military conflicts through the prices of raw materials causes fluctuations in the economic growth of world nations and their blocks, including Lithuania as a constituent part of the international economic system.
The need for diversification in the supply of energy resources for Lithuania remains of primary importance. Excessive dependence of Lithuania on the strategic raw materials of one country or the concentration of foreign capital representing individual economies whose markets are not yet fully operational in the economic sectors, strategically vital for Lithuania, poses risks not only for the country’s economic welfare but also for the overall security of the country.
The continuing ageing of the population in the West, the rapid growth of population in the third-world countries and fluctuations in the development of whole regions will continue to be cause for the growing rate of migration. This will eventually result in additional problems of equality and accessibility to health care services, the spread of dangerous contagious diseases and drug addiction. Uncontrollable waves of migration stemming from regional or ethnic conflicts may become a destabilising factor for Europe on the whole and may pose a threat to the interests of Lithuania.
The demographic situation in Lithuania is deteriorating owing to the ageing of the population; demographic problems will in their turn have a direct affect upon the development of the country’s economic, scientific and technological potential.
Insufficient flexibility and mobility of the labour market will further exacerbate the problems of unemployment, will be an obstacle for innovations and development of modern technologies; the irregularities in the regional development will lead to a growing differentiation in employment and the level of social development, the emergence of marginal regions and emigration of the work force; owing to the insufficient economic and regional development the number living in poverty may remain unchanged, social exclusion and social differentiation will grow, posing a threat to the stability of democracy and society. The social differentiation of the population will also be affected by such new factors as ability to use modern information technologies and information resources.
After accession to the EU, the sectors of the country’s economy which at present are protected by import duties will find themselves in the environment of a fiercer competition as the import duties in the EU are lower in comparison with some of the import duties which used in Lithuania at present. On the other hand, imports from third countries shall become much more expensive for both the consumers and producers.
The growing number of motor vehicles and unsatisfactory repairs of road surface may have a negative impact on the road traffic security.
Inconsistencies in the lawmaking process, insufficient planning and legal regulation may have unexpected and unwanted consequences on public life, which, in its turn, will add to the growing social nihilism, disrespect for law and the state under the rule of law.
Globalisation not only promotes integration of people and cultures; it also results in their uniformity/homogenisation. The criterion of functionalism becomes dominant on the scale of values; as a result, the language is increasingly viewed as an instrument of communication rather than one of the most essential instruments of culture and identity; in this way, the language is set apart from culture and the people who create and consume it. A universal language - lingua franca is gaining dominance, bringing along a single culture. Under such circumstances, the Lithuanian language will hardly be able to retain its present role both in the state and public life. The individual character of Lithuanian culture can is longer given its full expression; artists, professionals working in the sphere of culture are emigrating from Lithuania which results in the loss of the unprotected cultural values.
The living tradition of ethnic culture, experiencing an ever stronger negative impact of accelerating globalisation, is losing its ability to compete with commercialised mass culture. National self-awareness – the foundation for the development of the living tradition, is weakening relentlessly in the absence of the necessary means for the promotion of ethnic culture, fostering of its values, and the retention of national self-awareness.
3. The Macroeconomic Situation
The aim of the economic policy of Lithuania is a stable macroeconomic environment – a competitive economy, a fast economic growth, a low level of unemployment and price stability. The implementation of Lithuania’s economic policy is closely linked with the changes in the external environment. Sudden changes of the external macroeconomic conditions would affect the implementation of economic policy the timely delivery of which is vital for Lithuania as a small country with an open economy.
A tight fiscal policy which is being implemented in Lithuania at present allows to reduce the fiscal deficit, to seek a balanced budget, to lay the foundations for a long-term policy of the fixed exchange rate of foreign currency and to enhance the resistance of economy to various external effects. As a result, borrowing expensess of both the state and private sectors has been reduced, a cyclically balanced budget may be achieved and the requirements of the Economic and Monetary Union are met. In future, the budget deficit rate will be brought in line with the criteria laid down in the Maastricht Treaty and the policy pursued by the EU.
Owing to the budget deficit, over the last ten years the external debt has reached nearly 30 per cent of the GDP. Though, according to the standards of industrial countries, such a rate is not excessively high, yet it is in need of a tight regulation in order not to overstep the mark which could pose a threat to a stable development of economy.
In comparison with the industrial countries and the Member States of the EU, the basic tax tariffs in Lithuania are fairly moderate. Yet the overall tax burden which may be measured by the ratio of all the state revenue to the GDP in Lithuania is markedly lighter (less than 30 per cent) in comparison with the above countries. For example, this ratio reaches about 41 per cent in the acceeding countries and as many as 44 per cent in Germany.
The tax reform covering the major taxes approved at the end of 2001 reflected the international trends directed at reducing the tax burden, ironing out the differences in taxation, enhancing investment attractiveness of a country and competitiveness of its economy, ensuring total alignment of national law with acquis in the fields which are regulated by it as well as ensuring effective tax administration.
One of the steps towards the reform of the tax system is changing the attitudes to the tax system – tightening of the conditions for the activities of economic undertakings which avoid taxes. The state’s response to negative tax planning schemes in the private sector must be prompt.
The major portion of state expenditure goes for the provision of public services (state defence, public order, state administration) as well as for education and health care. Yet, during the strategy time frame it is essential to ensure financing other needs as well. Financing of the measures relating to the integration in the EU and NATO, to the land, including land restitution, health care, education and pension system reforms should be singled out. Moreover, the state has committed itself to undertake two large-scale projects – co-financing for the restoration of deposits and the decommissng of the Ignalina Nuclear Power Plant. The state budget deficit is covered by loans, therefore the state must carry out a targeted and sound borrowing policy by ensuring a complete and timely financing of the borrowing need, by minimising the costs and exposing itself only to acceptable risks without exceeding the state debt and borrowing limits.
Until now the monetary policy of the Republic of Lithuania has been determined by the Law on the Credibility of the Litas which helped to stabilise and sustain a predictable situation in the country. Currently the Law on the Credibility of the Litas has been hampering the actions of the Bank of Lithuania in the sphere of the classical monetary policy. The future monetary policy will be conditioned by the process of integration into the EU and its key objective will be to guarantee a smooth entry of Lithuania into the EURO zone and integration of the Bank of Lithuania into the of the European System of Central Banks (ESCB). This will require a preparation of the legal and organisational infrastructure for the application of the ECB monetary policy in the domestic monetary market, to bring the standards of the banking market in line with analogous standards of the EU market.
In order to ensure a long-term and stable economic growth, it is essential to create a favourable investment and business environment. Efforts are made to continue the restructuring and privatisation of energy and transport undertakings, to encourage “green field” investments, to introduce the measures for improving the business environment and to attract direct foreign investments.
With a view to ensuring an effective use of labour resources, it is planned to pursue a policy promoting economic viability and employment. Structural policy will be used to provide more favourable conditions for the creation of new jobs, to orient the system of vocational education towards meeting the needs of the market, and to set up and implement a competition-based system of retraining. The major spheres targeted for the promotion of economic viability and employment will be creation of new jobs in order to promote enterpreneurship, reforming improvement of the forms to support employment, increased adjustment to the structural changes and ensuring equal opportunities in the labour market.
II. VISION OF THE STATE OF LITHUANIA
In 2015 Lithuania will be an active member of the European Union and NATO, fostering the Euro-Atlantic values and a civil society, contributing to maintaining peace and stability in the region and beyond its borders.
As a participant of the effectively integrated market of the European Union, Lithuania will be successfully applying the most advanced scientific technology and drawing on the developed intellectual co-operation both in the EU and beyond its borders.
By 2015, after modernising its strategy of the state and the state economic policy, making use of the financial and technological assistance of the EU, Lithuania will increase its GDP by 2-2.5 times. According to a per capita GDP, it will have reached over 50 per cent of the EU average instead of the present 30 per cent. This would allow to bring about a radical implementation of the social economic model of the EU – a welfare state with a low level of unemployment, high-priced labour, strong social guarantees, a minimal number of poor families and a high level of social cohesion.
In ten years Lithuania will be adjusted to the economic order of the EU and will have a smoothly functioning system of market mechanisms. The recovering economic situation and the improving administrative capacities of the state will curtail the rate of corruption and the influence of the criminal world on businesses.
The work force, capital, knowledge and enterpreneurship – the factors of economic growth will be developed sufficiently. The use of work force will grow at least by 10 per cent with the reduction of unemployment, a later retirement age and the influx of a new generation of people into the labour market. Yet the main achievement will be a higher degree of education of the work force which will result from a reformed education system and the introduction of in-service training and retraining.
The physical infrastructure will be modernised. Technological backwardness will be practically non-existent in the sphere of communications. The power system will be completely overhauled. The energy source supply networks will be fully integrated into the EU networks.
The technological level of manufacturing will in many cases be equal to European or will lag behind it insignificantly. The state will seek to meet the information needs of society and to ensure above all accessibility to the information networks in the state language on the whole territory. However, this will not ensure the efficiency of Western economy since value-added inputs (knowledge and science) will be still lower and the expenses of entry into the world market will be high.
Knowledge-based economy is becoming a priority target of Lithuania. The EU is determined to create a knowledge-based society during the coming decade: in 2015 Lithuania expects to reach a similar level in this sphere. However, a knowledge-based society is a challenging objective for Lithuania which may be difficult to deliver unless a high degree of consensus between the widest circles of society can be achieved and unless there is a strong intellectual political will.
(Long-Term Economic Development Strategy of Lithuania until 2015 approved by Resolution No. 853 of the Government of the Republic of 12 June 2002)
Science and education will continue to be a priority sphere in the development of the country; a harmonised and effective education system will be created, accessible to all categories of the population, providing conditions for life-long learning for the people of Lithuania, acquisition of social and professional competence, cherishing of community awareness and culture, making use of scientific knowledge for a sustainable development of the country, providing the highest growth of the national product and ensuring the optimal development of the country under the conditions of the toughening competition on the world stage.
The labour market will be dominated by a demand for qualified specialists able to use modern information technologies. The Internet will provide, among other things, conditions for distance learning at the best universities of the world. The level of qualifications in Lithuania will not differ markedly from Western standards. The structure and content of education will better serve the needs of economy; the mobility of the work force will increase.
A state is better able to deliver its functions through enhanced administrative capacities. Transparent and effective administration is a prerequisite for speedy progress of the country. Drawing on the institutional, administrative and political experience of the EU by direct participation in its institutions and the development of its policy, the administrative capacities of Lithuania will improve. The strategy targets will be towards smaller costs of government, better services and rapid response to the public. Confidence of the public in the government shall largely depend on the quality of life.
The sector of information technologies and telecommunications will take one of the key places in the economic structure of the state and will greatly influence the development of other economic sectors of Lithuania. Manufacture and sale of the sectoral products may reach 25 per cent of Lithuania’s GDP and no less than 50 per cent of these products will be exported. Non-paper information resources have become common practice in state administration, businesses, trading, services, finance and other sectors. State regulation shall insure a safe use of documents, while the information network of the country (the registers, cadastres and information systems) will be integrated and open.
Enterpreneurship in the country will spread through the acquisition of economic experience and closer co-operation between our economic undertakings and their partners abroad. During the coming fifteen years a large number of graduates from schools of economics and management at the universities both in Lithuania and abroad will come to work in the sector of public administration and the private sector. Business consultancy services will expand. Attitude of the public to business will become more positive. All the above developments will contribute to the scope of the resources of enterpreneurship and will upgrade their quality in Lithuania.
The economy of Lithuania will be integrated in the economic, digital and knowledge area of the EU which are increasingly being affected by the globalisation processes, and will develop by both adjusting itself to these processes and benefiting from them.
Lithuanian culture – an expression of the creative potential of an individual and the nation, a guarantee of their identity and survival. Culture will both reveal and foster moral and material values of the individual groups of society and ethnic communities, will contribute to the development and promotion of a democratic, free and open society, cherishing of ethno-cultural traditions, development of national self-awareness and patriotism, stimulation of the social and economic development of the country and reinforcement of its security.
In the face of the threats of globalisation nothing is more rational for a small country than its integration into an economic area with a stable environment and extensive financial and technological resources. By drawing on the modern institutional experience of such an area, Lithuania will be able to reduce its backwardness from the old-timers of the EU.
(The White Paper of Lithuania’s Science and Technology)
Factors of environmental protection will ensure a harmonious and sustainable development of Lithuania in line with the objectives of air, water and biological diversity programmes as well as the programmes for the protection of the Baltic Sea and the Curonian Lagoon, waste management, international commitments and EU standards as well as with the economic capabilities of the country. An integrated system of economic, administrative and legal levers for the protection of the environment is being implemented. The system will have the following constituent parts:
the highest permissible levels for environmental pollution in accordance with the EU standards and the systems of environment management and auditing;
a flexible pollution tax system incorporating economic and environmental objectives, embracing taxes for emissions and the product and user taxes;
a system of deposits and return, supplementing the product taxes applied to the reused waste; tradable emission licenses applied to emissions of one category and local emissions; the structure of the state budget revenue having the features of the “green budget”.
Efforts will be made to co-ordinate the development of all sectors of economy with the preservation of a clean and healthy environment.
National defence. An effective and reliable defence system will ensure security of the nation and the state, its independence, territorial integrity and constitutional order.
Public security. The system of public security will be developed where public bodies responsible for public security and/or public order, by a targeted, effective and rational use of the funds of the tax payers, will guarantee public security when solving the problems of the population and providing high-quality services.
Social development. The structure of the national economy will guarantee a relatively high level of employment. Unemployment will not exceed reasonable levels. Measures for an active labour market will be implemented, the labour market will become flexible, the system of life-long education will function successfully, regional differences will be reduced. The labour force will be sufficiently mobile and competitive in the EU and will be provided incentives to seek jobs in its own country. The quality of jobs approaching the EU standards will be achieved in terms of pay, labour relations, safety at work etc. The principle of equal opportunities will be observed consistently.
Well–coordinated systems of social insurance and social assistance will be in place, providing coverage for all the population and all risk groups. Income in old age will be guaranteed by combination of the mechanisms of current financing and accumulation. The purchasing power of the pay-as-you-go pensions will grow at the same rate as the purchasing power of the average wage.
Social assistance will be oriented towards the persons who are really in need of such assistance; assistance aimed at inclusion of the able-bodied recipients of assistance benefits to economic activities. More attention will be given to the improvement of the demographic situation, prevention of disability, poverty and social exclusion. Severe poverty will be eliminated. Social assistance will be carried out by co-ordinated efforts of the state, local authorities and non-governmental organisations.
The continuing growth of people’s income will allow to seek a universally accepted modern consumption structure.
Conditions will be provided for all families to get housing; to this end, the adequate legal, economic and administrative measures will be used.
Health of the country’s population which depends upon social and economic conditions determines the economic prosperity of the state. By implementing and developing reforms, health education and disease prevention will become priorities of the health system. Lithuanian people will be guaranteed an accessible, timely, safe and effective health care based on real health insurance and fairness.
The ultimate objective of health care is to improve public health, to provide high quality medical assistance and to promote a healthier life style; to increase life expectancy, reduce mortality of the population, improve the system of health care institutions, to ensure fairness in health relations and the right of choice of the patient; to prevent dependence diseases, to ensure that the medicines and medical equipment on the Lithuanian market are safe, high quality and effective and meet the standards of the Member States of the European Union; to develop a system of public health education, health improvement and health care; to improve the quality of health care services by introducing new medical technologies, improving the qualifications of the personnel, to ensure conformity of the health care institutions with the prescribed requirements. The development of the health care system in Lithuania, improvement of the network of health care institutions will be in line with the standards and principles of the World Health Organisation and the European Union.
In the sphere of foreign policy Lithuania will have secured its role as an active member of the EU and NATO. Seeking to ensure its interests within these organisations Lithuania will maintain relations of close co-operation with the Member States of the EU and NATO, will consolidate its role in the Baltic Sea Area and, through sharing its experience of membership in the EU and NATO and promoting the EU initiative of “Wider Europe” will develop relations with its eastern and southern neighbours. The relations with other states will be developed with due regard to Lithuania’s political and economic interests.
Within the EU, Lithuania will consult all the countries whose views on the issues to be solved are closest in their relevance to the Lithuania and its welfare. Rather than automatically affiliating itself with any of the groupings of states, Lithuania will seek allies according to its own interests. At the same time traditional measures of enhanced consultation will be used with the other two Baltic States, Nordic Countries and Poland.
Lithuania will take an active part in formulating and implementing the policy of the three pillars of the EU. Along with the national foreign trade policy, Lithuania will also pursue and contribute to the development of the common foreign trade policy of the EU. In the matters of common foreign and security policy and common European Union security and defence policy Lithuania will seek to maintain a balance between Atlantism and Europeism, emphasising the importance of the future presence of the USA in Europe.
After becoming a member of NATO, Lithuania will be active in voicing its opinion on the issues of further development of the relations by the Alliance with Russia, Ukraine, Byeloruss and will seek to keep the attention of the Alliance on the regions of Caucasus and Central Asia. The spirit of the Vilnius Ten will be sustained; Lithuania will share its experience of integration into NATO with the candidate countries which have not been invited to join the Alliance. Lithuania will take an active part in NATO missions, according to its capabilities, above all in the better known regions, where Lithuania has experience in the activities of this kind.
In the sphere of economic diplomacy Lithuania will make use of its position as one of the easternmost states of the EU by expanding its diplomatic representation and actively promoting economic and trade interests in this vast region. Efforts will be made to retain CIS markets.
Lithuania will actively use international organisations as forums for the promotion of human and civil rights and freedoms, for solution of universal, international problems having an impact on the well-being of Lithuania and its citizens.
An effective mechanism for the co-ordination of foreign policy institutions will be created in Lithuania. A better understanding between the public and the diplomatic service will be promoted; an open dialogue with the public on the key issues of foreign policy will be held.
In accordance with the strategic priorities of the Government of the Republic of Lithuania and with regard to the international commitments, a national legal system will be developed aimed at the protection of human rights and freedoms.
In compliance with the Constitution of the Republic of Lithuania, the provisions of laws and international agreements of the Republic of Lithuania, guidelines of other legal instruments and the legal system reform, measures will be implemented in the sphere of personal safety and rights, law making aimed at ensuring human rights, protection of human rights and interests, legal protection, and state administration and information society.
The state must orient the economy of Lithuania in the direction of intellectual production and provision of service: generating the income, it would remain a fully fledged, co-operative and competitive participant of the world market. Information technologies based on a consistent upgrading of telecommunications and information technologies must be developed.
(Long-Term Economic Development Strategy of Lithuania until 2015 approved by Resolution No. 853 of the Government of the Republic of 12 June 2002)
The structure of industry and the strategies of enterprises adequately reflect of the ever-changing impact of the global competition forces. Lithuania will become an attractive country for offices estblished by manufacturing and service businesses, of both local and foreign capital, competitive on international markets, prioritising high technologies and science-intensive resources. Industry will function in an environment favourable for innovations and delivery of the intended quality, encouraging high qualifications, fair competition and an infrastructure geared to the reduction of operational costs. The development of industry will be stimulated by a favourable legal environment, guaranteeing stability and credibility.
The sector of small and medium enterprises will have an advanced infrastructure and will function in an open and steadily developing economy; with the help of modern technologies and qualified labour force it will produce competitive, innovation-intensive products and provide services to local and international markets, creating the major share of the GDP. Small and medium businesses will adjust to the market changes, will rationally use the resources and create new jobs.
The energy sector will provide cheap, reliable and safe power for all branches of the economy, create favourable conditions for future progress of the country; integrated into the energy systems of the West and the East, it will be able to compete on an open international energy market. The future energy sector will be sustainable and will not pose any threats to the environment.
The key objectives in the sector of energy and the trends in the state policy will be the formulation of the energy policy with regard to the basic principles of the EU energy policy and the dominant trends in the world energy development, drafting of the appropriate legal framework, establishment of the energy management and regulatory institutions, planning of the measures for the implementation of energy policy on the basis of a detailed analysis of the sustainable development of the energy sectors of the country, optimisation estimates and the systematised available statistical information, in order to guarantee the viability of Lithuania’s energy, its economic competitiveness, reliability, effectiveness of energy consumption and minimal damage to the environment.
The infrastructure of transport will be modernised and integrated into the network of major motorways and TINA and through them into the Trans-European Networks. A safe and environmentally friendly system of transport has been built. Multimodal transport has been developed, the logistics centres have been founded in Kaunas, Klaipėda and Vilnius. The use of the potential of the I and IX European transport corridors will allow to extend transit capacities and the integration of Lithuania’s carriers into the market of transport services of the Baltic Sea Area and the continental Europe.
Knowledge economics and e-business. All residents of Lithuania, both in towns and rural areas, will be provided equal opportunities for continuing education and improvement of their qualifications by means of information technologies. Incentives will be offered for investment into the improved computer network facilities, traditional and mobile, and their use. The state and municipal institutions will be restructured with the help of the possibilities offered by information technologies, conditions will be provided to speed up the development of e-economics and the use of electronic documents. The telecommunications market has been liberalised, competition is being encouraged. Incentives will be given for the establishment of new and the development of the existing profit-making businesses which are based on knowledge and information technologies. Support and incentives are provided for the integration of business, science and studies in the production of competitive products and provision of competitive services. The residents in outlying regions and persons with disabilities have been provided conditions for being reintegrated into employment with the help of information technologies. Measures have been designed and implemented to curb the brain drain of information technology professionals abroad and to stimulate repatriation of those who have left the country. Efforts will be made to encourage manufacturing of demonstration samples, and focus will be given to the importance of visual communications and information technologies for economic development. Legislation protecting information security and privacy of persons will be improved.
In the sector of rural development and agriculture, the state policy will be targeted towards sustainable economic, environmental and social development; a favourable legal and economic environment for an independent functioning of farmers’ farms, agro-businesses and other rural enterprises on a competitive market, able to earn incomes sufficient for self-support and business development. Incentives will be provided for innovations, the production of competitive goods and provision of services with a higher added value; the infrastructure of intellectual, technological, technical, financial and information supply will be developed. Legal and economic preconditions are in place for a more effective use of financial and fixed assets of economic undertakings for investment intended for modernising agricultural production and development of non-traditional and alternative businesses. Restitution of the residents’ ownership of land, forest and water bodies will be completed, and legal and economic preconditions will be created for the consolidation of areas of land used and a rational use of natural resources. Stability of rural development and agriculture will be guaranteed.
The Lithuanian countryside, a place attractive for work, life and leisure, will have production and social infrastructures, a community of educated and enterprising people, a healthy environment and a landscape of great scenic value.
Production, processing and marketing of agricultural products will form a modern and environmentally friendly integrated system, having a developed infrastructure, modern technologies and a qualified work force; it will be receptive to the changing business environment and will seek to place on the market competitive and high quality products and services.
Two trends in the development of farms will emerge: one will be specialised farms producing traditional products, competitive on the EU market, supplying production to processing and trade businesses; the second – farms producing organic products engaged in non-traditional activities and having their own market niches. Smaller, co-operative farms will exist along large agribusinesses.
The areas of intensive agriculture will be dominated by grain, pig and dairy farms. Large specialised farms with vast areas under grain, rape and flax will grow in number. More products with a higher added value (meat, dairy) will be produced. Production of fruit and vegetables is expected to grow.
More meat cattle and sheep will be grown, especially on infertile lands. Natural and organic products will be a priority.
Fishing, the fish processing industry and fish trade, fish breeding and fish farming will be a modern sustainable sector integrated into the national economy, having a developed infrastructure and effective technologies, qualified work force and a system of their training, placing on the market high quality and competitive products.
Non-traditional and small agricultural businesses such as farming of medicinal herbs, mushrooms, apiculture, internal water fisheries and alternative activities such as rural tourism, crafts, services and other small businesses will be developed.
Environmental protection measures in agriculture, in compliance with the EU regulations, will ensure the development of environment friendly agriculture, the preservation and increasing of natural resources.
The state will implement the common fisheries policy of the EU aimed at balancing fishing with the fish resources, regulation of the competition relations between countries having fishing fleets, softening of the social consequences of structural changes. The policy will be made up of the following components: the management of fish resources, the structural, market, pricing and social policy. The mission of the state is to create a favourable legal, economic and institutional environment for the implementation of this policy.
Since the development of the financial sector will be faster than that of the manufacturing branches of economy, the contribution of the sector of financial mediation to the GDP will reach 7-10 per cent in 2015. Membership in the Euro zone will facilitate a fast acquisition of the know-how of financial technologies. Growing living standards will contribute to a greater role of the manufacturing branches of economy as the consumers of financial services. Over 5 – 10 years the major part of the population will purchase durable and semi-durable goods and services (cars, housing, furniture, home furnishings and appliances as well as goods and services intended for leisure) by taking out loans or availing themselves of other financial services (leasing etc.).
By the end of the period Lithuania will have various types of financial institutions (commercial, investment banks, private pension funds, collective investment enterprises, mortgage banks, non-bank financial institutions etc.) with a well regulated legal framework and a clearly segmented market. However, the nucleus of the financial system will belong to commercial banks of a universal character, combining provision of a wide spectrum of financial services with the function of retail banking.
E-banking and other services of financial mediation based on modern information technologies will out-rival “live” financial services and will become the dominant form of payment and other financial operations. On the other hand, longing for direct communication with people will remain; priority clients will gladly avail themselves of direct communication.
Eventually, the role of financial institutions of local origin or of only Lithuanian capital will diminish or these institutions will disappear altogether giving place to international companies or their structures and alliances. The national names of financial institutions as a business value will lose their significance.
The state will provide favourable legal conditions in the sector of finances for the development of investment culture and the integration of the capital market into foreign markets, above all the EU market; the possibilities of the market will be developed for the attraction of capital, for safe and effective investment and liberalisation of the finance market will be continued.
Regional development. The economy of regions will be developed and their competitiveness will be increased based on the available resources and priority development trends. Transport, communications and other physical infrastructure will be developed as an integrated network, seeking rational use of the EU and national resources. Dynamic rural settlements, increased mobility of the population will link the town and the countryside. By developing tourism and recreation, a proper environment will be created for the preservation of nature and cultural heritage. Regional institutions will co-operate on the international level while implementing the EU and national policy goals.
The goals of the regional development policy are as follows: ensuring the possibilities of a stable high living standard for all sections of the population; increasing the country's regional cohesion by reducing differences in their economic, social, cultural, educational conditions and in their administrative capacities; ensuring sustainable development of regional economy and increasing its competitiveness taking having regard to regional specifics; consistently developing physical and social infrastructure of the regions; ensuring efficient use of local resources, rational financing of regional development with both national and foreign resources and viability and development of rural communities.
The social, economic and technological infrastructure of small and medium-sized business (SME) will be built, legal and the institutional environment favourable for the development of SME and the system for co-operation with the institutions of science and education will be developed.
Lithuania will become a country of high economic and cultural potential for tourism, offering various high quality tourism products which meet the individual needs of tourists and are in conformity with the EU directives on tourism.
For this reason it will be endeavoured to develop and implement a rational tourism policy by creating favourable legal conditions and conditions for investment for all participants in the tourism business, to produce attractive tourism products for the domestic and international markets and to ensure rational use of Lithuania's natural, cultural and social potential, creating possibilities for competitive integration into the European and world tourism markets. Upon assessing competitive advantages of tourism and taking into account specialisation and differentiation of Lithuania's tourism resources, Lithuania's integration into the EU and implementation of the strategic goals and objectives set for the development of Lithuania's tourism industry, the following tourism branches will be given priority development: cultural and cognitive, business, resort, water (marine or river). ecological and rural tourism.
III. LONG-TERM STATE DEVELOPMENT PRIORITIES AND THEIR IMPLEMENTATION TRENDS
The following long-term state development priorities are recognised based on the situation analysis covering external factors, SWAT and macroeconomic analysis: a knowledge society, a safe society and competitive economy.
Economy based on knowledge is becoming one of Lithuania’s priorities. The EU has set a goal to create a society based on knowledge within the nearest decade; by 2015, Lithuania may reach the desired level in this sphere. A society based on knowledge is a very important challenge to Lithuania and Lithuania may fail in achieving it if no consensus is reached between wide sectors of society and there is no strong intellectual political will.
(Long-Term Economic Development Strategy of Lithuania until 2015 approved by Resolution No. 853 of the Government of the Republic of 12 June 2002)
1. Science and Education
While developing an effective, coherent, universally accessible and continuous education system, providing conditions for lifelong learning:
to seek the establishment of universal secondary education accessible to all sections of the population irrespective of their age, social status, place of residence and linguistic environment;
to guarantee universal preschool and pre-primary education and equal starting positions in acquiring education;
to develop the system of schools of various forms, first of all the system of preschool education accessible to children subjected to social exclusion, also the system of youth schools of all types; to expand the type diversity of schools of general education, higher educational establishments and scientific institutions; to enhance education in technology, economics at schools of general education;
to proceed with the structural reform of the system of institutions of science and studies, to ensure that the binary system of higher education should embrace all persons seeking higher education and capable to study; to participate in international programmes and projects for co-operation and exchange in education, science and studies; to develop and implement the system of promotion of scientific activities and their results; to develop the system of financial assistance to students (especially systems of offering credits for studies), investment projects;
to implement the concept of continued learning, to increase the diversity of part-time studies; to develop a modern system of adult education and training, ensuring every resident of Lithuania possibilities to engage in life-long learning, to acquire secondary education and professional qualifications, to upgrade one's qualifications and re-skill;
to strengthen the interaction of all chains of the education system, ensuring continuity of the chains;
to develop and implement a system of effective assistance for pupils and students; to shape modern competence of school and university teachers; to introduce the position of social pedagogue at schools of general education, to involve social partners from different interest groups; to shape and deliver the standards for general capacities, trends and quality of studies; to adopt a modular approach in teaching; to speed up the introduction of information technologies in the spheres of education, science and studies;
to organise external evaluation of institutions, to develop the system of monitoring, audit, diagnostic tests and strategic planning.
When implementing regional policy of the education system, to develop strategic planning in regions, strengthen the role of regional higher educational establishments in regional policy, to carry out a rational reorganisation of the school network guaranteeing possibilities for learning to people of all ages; to raise the number of schools for adults, increasing the number of training courses on offer at them; to augment children's attendance of additional education institutions, to attain socialisation of children who are not attending school.
Seeking to ensure the quality of education system while integrating into the common education area of the European states:
to guarantee a stable, rational and transparent system of education financing based on unambiguous obligations assumed with respect to every pupil by the state and municipality;
to develop continuos monitoring and diagnostic research of the education system; seeking recognition of qualifications, to ensure the quality of education meeting the standards of the EU countries;
to develop distance learning and to expand the application of educational technologies verified in practice as well as the use of information technologies in the teaching and studies process;
to reform the teacher training system and to expand their in-service training system, bringing both systems in line with the goals and objectives of education in order to prepare teachers for work in the knowledge society and to receive adequate remuneration for their work;
to define, develop and consolidate the independence and responsibility of school communities; to introduce the system of management based on situation evaluation, strategic planning and clearly defined institutional responsibility;
to improve the contents of general education, vocational training and studies, transferring from knowledge formation and development of limited professional skills to the development of general capacities (basic skills) and recognition of the system of values (democratic and civic values) which can bring the pupils the competencies required in personal life and society; to adjust the system of vocational training having regard to the demand on the regional job market;
to strengthen the cohesion of higher educational establishments and research institutions as well as the interface of science and studies within the context of the EU countries;
to ensure the participation of education and science in the EU programmes, to expand exchange opportunities for pupils, students, secondary school and university teachers;
to seek uniformity of the system for the award of qualifications and qualification degrees.
While training highly qualified specialists and seeking to ensure the country's required scientific and technological potential:
to seek that student admission should proceed based on employment studies conducted by specialists, national and European job market trends; to improve teacher training and re-skilling system, to increase the number of specialists-andragogues;
to determine priority trends in the development of science and to plan the training of specialists accordingly;
to support and strengthen the available scientific potential, stepping up investment into the infrastructure of the education and science institutions capable of training specialists in demand on the changing job market and competent to master new technologies;
to pursue a policy seeking the return of professionals who departed abroad as a result of braindrain.
When carrying out research work with a view to attaining the country's sustainable development and conformity with the demands of the national economy, promoting interaction between science and business and ensuring a more speedy progress of the country:
to create a system of research orders, to expand applied research and research aimed at creating and introducing new flexible technologies, to develop applied scientific activities;
to conduct financing of research by tenders, when financing priority research programmes to link the financing of other programmes with the preservation of the country's scientific competence;
to promote research quality having regard to the common European research area; to launch projects common with other countries, to carry out research on the international scale.
2. Competence of the Population
In order to ensure a successful use of modern information and communication technologies, the population of Lithuania will be provided with possibilities to acquire the required knowledge and to apply it in their everyday activities, at the same time the opportunities to use ICTs for the socially disadvantaged groups will be increased.
Ensuring the residents of Lithuania a possibility to acquire knowledge, skills and qualification which would allow, upon making use of the advantages offered by communications and information technologies, to more flexibly adapt themselves to the speedily changing conditions of life and work: to ensure free access to information; to develop the possibilities of lifelong learning; to provide conditions for the residents to exercise their right to cheap, secure and fast internet.
Reducing the differences in the possibilities for the application of ICTs conditioned by social status, estate, geographical location, etc.: to eliminate the disparities in the ICT infrastructure in towns and in the countryside, offering all residents of the country equal possibilities for using ICTs for personal and public needs; to establish public points of access to the Internet; to provide possibilities for library readers to access information via the Internet; to develop the possibilities of e-work, re-skilling and e-employment.
When developing special programmes for the inclusion of people with disabilities or people with special needs in the information society by using the possibilities of information technologies: to ensure the adaptation of information environment to people with disabilities.
3. State Governance and Self-government
Improvement of public administration is a continuos, systematic process, embracing the central, territorial and municipal levels of government as well as the public service as the underlying form of public relations in the sphere of public administration.
It is endeavoured that by 2010 Lithuania's public administration system should meet the European standards of reliability of public administration. The main objective is modernisation of the system of public administration with a view to creating the public administration system complying with the standards and traditions formed in the EU countries.
The main steps of public administration improvement will be undertaken in the following strategic directions:
Putting into effect e-government projects, development of e-government. This means application of new ICTs in the provision of public administration services to citizens and businesses. A modern state must give special attention to the development of possibilities of e-government, introduction of IT in the sphere of public administration, promotion of efficiency of public institutions, development of on-line services and e-democracy.
When developing the use of IT for promoting the efficiency of decisions taken by state institutions: to introduce ICTs in the work of institutions of public administration, to ensure their security; to create a fully functional integrated system of state registers, to ensure the interaction of state registers, quality and accessibility of the accumulated data; to introduce mutually interactive information systems of municipalities and courts; to apply requirements of correct usage of the Lithuanian language with respect to IT products.
Implementation of e-government projects will increase efficiency of the administration system, reduce the number of public servants, improve the quality and effectiveness of administration.
The application of IT achievements in State governance will open up new possibilities for communication between citizens and government institutions, improve transparency of administration and decision-making. Citizens will be offered entirely new possibilities for communicating and working with public administration institutions at a time of convenience to them, at any place and in a variety of forms.
To adopt the so-called "one-stop" approach and ensure transparency of decision-making. Every resident or business entity of Lithuania should be able to exercise his/its rights: to defend his/its interests at the institutions of public administration (state and municipal), receive prompt and detailed response to their queries, file complaints against the unlawful acts of public servants.
Modernisation of activities of the Government and government offices and agencies, ensuring transparency of internal administration and public administration procedures of the institutions of State governance. Here the following goals are sought:
to restructure the State governance system based on a systematic approach and basic principles of management, to optimise the functions of public administration institutions and reduce the number of the said functions, to achieve standardisation of the internal structure, to create the system of State governance organisation and activities supervision;
to harmonise the institutional framework of the central public administration system, to specify the spheres of competence of every institution of public administration, to assign related issues within the remit of competence of one state institution;
to develop a state governance organisation and activities supervision mechanism;
to cut the funds allocated for state governance, reducing the number of state institutions and employees. This may be achieved by limiting state functions and outsourcing appropriate services to private sector businesses;
to establish simple and transparent decision-making procedures for various Government institutions. To make decisions relating to State governance by reconciling different public interests, explaining to the public the meaning and consequences of the decisions and taking into account public opinion.
Optimisation of functions of central, regional and local governments and improvement of governance. Here the following will be sought:
to clearly define the government functions, taking into account the country's financial possibilities and acting in a simple and efficient manner. Closely related issues should be dealt with by one government institution;
to separate the functions of the central, regional and local governments and to base the separation of powers on the reconciliation of national interests and principles of self-governance;
to decentralise and de-concentrate state governance by applying the principle of subsidiarity - decisions on policy should be taken at the most decentralised level - the central government should not be swamped in detail that can be effectively and rationally addressed at municipality level;
taking into consideration the requirements of the Declaration of the European Regional Assembly and the European Charter of Local Government, to create an optimum system of territorial management that would meet the needs of the population,
to establish optimum links between central government institutions, higher administrative units and self-government institutions;
to implement the reform of territorial management taking into consideration the opinion of the population, the criteria of regional policy development, economic, social and cultural diversities of regions and the possibilities of economic-financial resources.
Development of self-government. Here the objectives are as follows:
to create conditions for the citizens themselves to take part in the management of community affairs;
to bring local government closer to the people setting the optimum number of municipalities. To strengthen and develop self-government with a view to ensuring satisfaction of the major part of the residents' public needs by the state and municipal institutions located in the appropriate administrative unit;
to grant municipalities the right to administer local taxes, to determine long-term sources of municipal budget revenue;
to form a coherent policy of tax revenue distribution between the state and municipal budgets. To ensure reliable funding of the functions delegated to the municipalities by the state, especially those relating to the payment of social benefits;
to provide conditions for municipalities to own land plots, to transfer a certain portion of state-owned land to municipalities for holding it in trust; to legalise the right of municipalities to land (disposal and holding) and settlement of land-related issues (including restitution of land); to improve the system of municipal council and mayor election and upgrade the institutional framework of municipalities.
Development of administrative capacities of public service. The main objectives in this area are as follows:
to create conditions for forming a professional public servants corps which would ensure the continuity of work of state government institutions and municipalities, political neutrality, efficiency, openness, high quality of provided services and responsibility for decisions made by them; to implement a transparent and clear-cut system of remuneration for the work of public servants, officials and politicians, to do away with disproportion in wages and unjustifiably large severance pay. To regulate the official position and career of public servants by applying a special schedule of qualification categories and grades, whereas the wages and social guarantees (for statutory public servants) must be made dependent on the qualification category and length of service in a certain position;
to determine the limits of activities of state institutions and officials; to establish individual liability for violations committed by state institutions and public servants;
to guarantee permanence and professionalism of public service; to require from public servants competence and continuos upgrading of qualifications; to introduce the system of training and in-service training of public servants and to prepare appropriate programmes;
to ensure the training of highly qualified public servants at higher educational institutions, to organise continuous in-service training, including improvement of professional language and foreign language classes, drawing on the experience of foreign countries in the sphere and using for the purpose the resources of the EU funds;
to observe the principle of equal opportunity, ensuring gender equality in education, in-service training, employment, promotion, wage setting. Women and men have equal rights in all sphere of political and public life, in prestigious activities and may on equal terms hold leading positions in state institutions;
to ensure proper representation of Lithuania's interests at the EU institutions under the EU membership conditions.
4. Culture
Culture is a significant section of public life, guarantor of its integrity. It is closely linked to science and education, environmental protection, information society, regional development, tourism, it promotes novelties and exerts a positive influence on the country's economic and public development. Culture strengthens public safety and civic awareness.
Under the conditions of globalisation and internationalisation, language protection should be understood not only as preservation of linguistic heritage, but first of all as an attempt at increasing the functionality of the language with a view to satisfying information and cultural needs of the society, enhancing the strength of national awareness.
Management of cultural heritage revealing its cognitive value and adapting it for public use and development of cultural activities (dissemination of culture and created cultural properties) creates favourable conditions for tourism, recreational activities, improves social and business environment, raises the quality of life in Lithuania, limits the emigration of artists, men of culture and other citizens of the country and promotes their re-emigration.
Integration into the EU and the intensifying processes of globalisation will not only make European and world cultural properties accessible to the Lithuanian public, but will also raise the issue of preservation of Lithuania's cultural identity, which, due to the peculiarity of the sphere of culture, will remain in the focus of attention when planning the development of culture in the immediate years and when drawing up a long-term cultural development strategy.
Contrary to the process of integration into the EU structures of the economy, foreign policy or law enforcement systems, the integration of culture cannot be viewed as a mere joining of infrastructures. The EU has consciously rejected the idea a common EU cultural policy, instead, it is promoting cultural diversity of the member states. Therefore the state of Lithuania is itself largely responsible for the identity of Lithuania's culture, for the preservation, development and dissemination of its cultural properties. On the other hand, ratification and implementation of international treaties, UNESCO and UN legal acts in the culture sector will not only provide favourable conditions for international cultural co-operation but will also help Lithuania's culture to secure a place of its own among the world cultures.
Alongside with the integration of cultural infrastructure and information systems, connection to the EU cultural infrastructure units and networks, the integration of values is of overriding importance for the development of Lithuania's culture. It lasts for decades, is unpredictable, nevertheless, it is inseparable from the development of Lithuania's cultural identity.
The conclusion drawn upon generalising the geopolitical and historical condition of Lithuania's culture, public discussions and the Cultural Policy Regulations approved by the Government is that the main objective of Lithuania's long-term cultural strategy is preservation and bringing on the contemporary scene the inherited cultural identity of Lithuania and to ensure its continuity, free dissemination and competitiveness in the context of contemporary Lithuanian, EU and world cultures.
The state of Lithuania seeks to preserve the Lithuanian language, Lithuanian ethnic and regional culture, its historical heritage, the cultures of Lithuanians residing abroad and those of ethnic communities residing in Lithuania.
In the modern world the actualisation, continuity and dissemination of authentic cultural properties is hardly feasible without their constantly regenerating expression meeting the cultural needs of the society and, consequently, the enhancement, continuity and development of Lithuanian cultural identity may not be separated from the promotion of cultural activities and artistic diversity. Therefore the state of Lithuania supports professional arts, artistic activities, artistic organisations, ensures dissemination of artistic works, promotes the development of the culture industry, provides conditions for professional training of artists.
The actualisation of Lithuania's cultural values, their dissemination among the Lithuanian and world public would be impossible without the potential for dissemination offered by the information society. Accessibility of cultural information, its use in the search for new means of artistic expression and new possibilities for international co-operation are directly linked to the priority goals of presentation of the authentic Lithuanian culture to the world and ensuring the openness of Lithuanian culture. The harmony of authenticity and openness in culture creates preconditions for the development of a modern distinctly individual culture. A culture is viewed as being open if the possibility for its cognisance is guaranteed to all members of society and provided it is ready for a dialogue with other cultures. On the one hand, an open culture society is aware of and has confidence in its identity and, on the other hand, it is not shunning competition with other cultures.
Confidence in one's cultural identity and promotion of tolerance to other cultures is possible only upon ensuring participation of the entire society in culture and accessibility of culture to the society. That is why the state of Lithuania supports the authentic cultural expression and traditional regional culture, amateur artistic activities and NGOs.
The basic strategy trends for state and municipal institutions seeking cultural policy goals are as follows:
In seeking to preserve and foster the identity of national culture:
- to ensure the protection and continuity of the Lithuanian language, promote its modern development in order to meet the needs of knowledge society;
- to foster ethnic culture, local traditions;
- to protect cultural heritage and its cultural value, providing possibilities for getting in touch with it and using it;
- to support the efforts of Lithuanian communities abroad to preserve their cultural identity;
- to support culture and education of ethnic communities residing in Lithuania.
In promoting creative activities and diversity of art:
- to support professional art, organisations of creative artists;
- to ensure the dissemination of artistic creation;
- to promote the development of culture industry;
- to provide conditions for professional education in art;
- to ensure legal and economic conditions for national film-making by implementing the law on cinema and drafting the necessary supporting legislation. To decentralise the development of national cinema by setting up the national film centre and developing its activities;
- to create legal preconditions for a rational use of funds allocated to theatres and concert organisations by drafting and implementing a law on theatres and concert organisations and the necessary supporting legislation determining the status of theatres, the system of Lithuania's theatres, ways of their funding, employment relations.
In developing the information society:
- to provide conditions for obtaining information about Lithuania and the world;
- to expand possibilities for getting access to Lithuania's and foreign nations' history, culture, art;
- to prepare the employees of the culture sector for work in the information society;
- to renovate and modernise public libraries following the programme for the renovation and modernisation of libraries. To seek the realisation of the basic purpose of the public library - the preservation, handling and dissemination of ideas, thoughts, information and experience accumulated in the documents;
- to renovate and modernise museums and their exhibits by drawing up a programme for the renovation and modernisation of museums. To encourage decentralisation of museum policy by setting up the museum council. To ensure security of museum expositions and repositories.
In promoting the openness of the national culture:
- to make arrangements for the dissemination of the Lithuanian culture abroad;
- to provide conditions for getting to know the culture of other peoples in Lithuania.
In providing conditions for the participation of the public in cultural activities:
- to support amateur artistic activities;
- to implement regional cultural policy;
- to support cultural activities of the NGOs.
In providing financial conditions for the development of the culture sector:
- to seek to prevent reduction of the share of state budget allocated to culture;
- to seek rational use of funds allocated to culture;
- to introduce programme-oriented financing of the culture sector;
- to make use of additional EU and UNESCO financing.
SAFE SOCIETY
In the face of the threats of globalisation the most rational step for a small country is integration into an economic area where, under the conditions of a stable environment, having at its disposal abundant financial and technological resources, taking over modern institutional experience, Lithuania will be able to more speedily catch up with the EU old-timers.
(White Book of Lithuania's Science and Technologies)
1. Environmental protection
In environmental protection long-term development trends are as follows
· to implement the principle of sustainable development;
· to create preconditions for a rational use, preservation and recovery of natural resources;
· to ensure adequate quality of the environment having regard to the EU norms and standards;
· to preserve the properties of natural heritage, the peculiar character and biodiversity of the environment;
· to increase the area of land under forests and the role of forest protection.
Environmental quality protection by sectors
Water protection: to reduce water pollution with household and industrial waste water; to improve the quality of drinking water; to reduce water pollution from agricultural sources; to improve the quality of water bodies used for recreation; to improve the condition of water ecological systems; to ensure rational use of water energy resources; to reduce sea water pollution; to seek to reduce polluted water in-come from neighbouring states.
Air protection: to promote energy efficiency and use of renewable energy resources; to reduce emissions from energy facilities; to reduce the effect of transport on the environment and human health; to reduce the effect on climate change, ozone layer, acidification/eutrofication process.
Protection of soil from pollution: to reduce soil pollution with organic and mineral fertilisers and other agricultural chemicals; to reduce soil pollution with oil products and heavy metals; to detect and eliminate old pollution.
Waste management: to create a rational waste management system; to ensure widest possible use of material and energy resources; to take care of prohibited and old pesticides; to regulate radioactive wastes management.
Protection from physical pollution: to reduce noise levels in cities; to avert radioactive threats posed by Ignalina Nuclear Power Plant; to reduce radioactive environmental pollution.
Protection of natural resources, landscape and biodiversity.
System of protected territories: to develop the system of protected territories; to upgrade the management of the protected territories system; to develop a positive public attitude to protected territories, their objectives.
Landscape preservation and land use structure formation: to optimise general land use structure; to prevent further natural landscape degradation and to preserve its characteristic diversity, to draw up and implement territorial planning and management programmes; to prevent further karst region and wetland landscape degradation; to develop a policy for the management and preservation of urban and agrarian landscape territories.
Protection of recreational environment: to adapt the protected territories for visiting; provide conditions for recreation, especially for development of cognitive tourism; to prevent further construction activities in the coastal zone, further degradation of sea beaches and sand dunes; to prevent degradation of recreational agrarian environment.
Use and preservation of natural resources: to strengthen and improve state regulation and control of the underground natural resources; to stop the extinction of plant, fungi and animal species and populations, to preserve their genetic stock.
Development of forest economy: to preserve and increase forest resources, ensure their rational and continuous use, to increase forest productivity and health; to ensure diversity of forest ownership forms; to increase the country's forest area by green-planting in territories not suitable for agriculture; to meet the general social needs of the society; to expand competitive private forest economy sector based on the principles of sustainable forest economy.
Basic actions and principal instruments:
Legal regulation of environmental protection. The majority of legal acts in various spheres of environmental protection must be revised with a view to: national goals and priorities; requirements of the European Union; obligations under conventions and treaties.
Due to transposition of the EU legal acts into the national legislation, numerous amendments have been made to national legal acts, consequently, revised versions of basic laws on environmental protection are to be drafted, including those on environmental protection, on water, on waste, etc.
Environmental protection management (administration)
Three principal reforms have been envisaged in the sphere of environmental protection management (administration): those related to enhancement of institutional capacities, waste management and water treatment.
Environmental impact assessment of the proposed economic activity. This is one of the principal preventive measures which allows to avoid irrevocable environmental changes. Environmental impact assessment must ensure that the proposed economic activities should be subjected to impact assessment performed before the economic activities are commenced. Environmental impact assessment of the proposed economic activities provides conditions for ensuring environment quality and population health and for making decisions relating to sustainable development of the economy.
Strategic assessment of the environment is a systematic and all-inclusive process which assesses the environmental effects of implementation of strategic planning documents (certain plans and programmes) by drawing up the assessment report which is used in decision-making.
The following plans and programmes shall be subject to environmental impact assessment: plans and programmes of proposed economic activities in agriculture, forestry, fish farming, energy, industry, transport, waste management, water management, telecommunications, tourism, urban and rural planning, etc.
Economic instruments
Pollution charges and penalties (product charges)
To revise the system of charges for environmental pollution with product waste. To introduce changes in the list of chargeable products introducing changes in the list by including in it the products which after the expiration of their life cycle become hazardous waste posing a threat to the environment (automobiles, household appliances, etc.).
To revise the system of charges for pollution from mobile pollution sources. To implement the principle "polluter pays", i.e. to set charges for pollution from mobile pollution sources to be imposed not only on legal, but also on natural persons.
Charges to reduce energy sector pollution
To revise the system of charges for pollutants emission, imposing or changing the charges payable for pollutants emissions from energy sector (SO2, CO2, NOx, volatile organic compounds, etc.)
Deposit for packaging (single and multiple use)
To expand and improve the system of deposit and return which would be applied with respect to packaging waste (for packaging of single and multiple use) to provide incentives for a reduced use of packaging materials and their collection.
Taxes on the use of natural resources
To revise the system of taxes on the use of state-owned natural resources, setting the tax rates which would promote rational and efficient use of natural resources and investment into oil and gas prospecting.
Other economic instruments:
to examine and apply the system of tradable emission licences;
to introduce the regional domestic waste management systems;
to apply administrative and economic measures promoting collection and recycling of secondary raw materials;
to set "green purchase" rules for public procurement.
The principal goal of environmental monitoring is to supply state institutions and NGOs with reliable information about the condition of the environment and the anthropogenic impact on the environment.
2. National defence
Lithuania's defence system is developed as a constituent part of the Trans-Atlantic defence system. The development of the national defence system means development of Lithuania's military capacity as a constituent part of NATO collective security and defence system while preparing the armed forces for the defence of the state and meeting Lithuania's international obligations.
When contributing to the dissemination of Euro-Atlantic values, the Lithuanian armed forces will share the gained experience and provide assistance to the interested countries. Lithuania will realise co-operation orientations through bilateral and multilateral defence projects.
When developing the military capacity a lot of attention will be given to the efforts to prepare the Lithuanian armed forces for action together with their allies in the NATO collective defence operations. Lithuanian armed forces will, as possible, participate together with their allies and partners in international operations, including crisis management and anti-terrorist operations.
Contributing to the EU rapid reaction forces, Lithuania will allocate specially trained military personnel for crisis management operations, not duplicating, however, the functions of NATO as the collective defence organisation.
To achieve the above goals, modern, well-armed, mobile, rapid deployment forces, capable of participation in large-scale operations are being developed. Lithuania is also developing Host Nation Support infrastructure for reception of possible partner reinforcement as well as capabilities ensuring defence of the country with the assistance of the allies.
The Lithuanian armed forces will specialise in the areas where capabilities are developed to address international obligations, contributing and adding value to NATO at same time enhancing Lithuania's security.
Lithuania will gradually increase the number of professional military servicemen in the units which will undergo training for participation in NATO collective defence operations. A mobilisation reserve meeting the defence needs of the state in case of crisis will be maintained.
Seeking to ensure the defence of the state and to meet Lithuania's international obligations, priority will be given to ground forces. Lithuania's Naval and Air forces will not be numerous, sufficient for the performance of specific tasks, for safeguarding Lithuania's sovereignty and territorial integrity as well as for participating in the Alliance missions.
Development of military capacities will entail creation of a centralised logistics system which will ensure supply and self-sufficiency of all military units and formations performing operations in time of war and peace.
The system of command, control, communications, computers, information and intelligence system (C412) agreed with the Alliance will step up further modernisation of the Armed Forces with a view to meeting the requirements of the future. The realisation of the system will create conditions for timely and effective response to arising threats and for acting jointly with the NATO forces.
Lithuania's Armed Forces and defence infrastructure will be developed in line with national defence needs and linked to economic growth. The Armed Forces will purchase modern munitions and armaments, make maximum use for military needs of the available infrastructure, scientific potential and R&D achievements.
Human factor is a determinant of Lithuania's military defence potential. Security and defence of the state will depend not so much on the munitions and armaments as on the level of training of the servicemen, their professionalism and motivation. Modern civilian and military personnel command system will be introduced in the Ministry of National Defence, ensuring retention of highly qualified specialists. Military personnel will be trained and educated, the servicemen will be guaranteed adequate service conditions and supplies.
Crisis management
Lithuania's national crisis management system is developed as a constituent part of the national security system integrated into the EU and NATO crisis management institutions.
Lithuania's crisis management system will fulfil functions of complex surveillance of factors posing a threat to Lithuania's vital and priority interests, of early warning in case of an emerging crisis, will prepare measures for crisis prevention, make provisions for their implementation, ensure crisis management and post-conflict rehabilitation.
Lithuania's crisis management system will integrate management efforts of separate institutions of state administration into a unified system and strengthen interinstitutional links.
3. Public security
When co-operating in the field of justice and home affairs, measures will be employed which are connected with international police co-operation, protection of future borders of the EU, data protection and lifting of internal border control, combating organised crime and drug trafficking, terrorism, revision of the system of provision of services for asylum seekers, visa policy, national Schengen information system.
Special attention will be given to international co-operation with the border control services of the EU states having external borders. When integrating into the EU and upon joining the Schengen Agreement before 2007, the EU internal border control will gradually shift over to EU external border control. A set state border regime will be maintained at the state border with each neighbouring state, the spread of cross-border crime will be prevented. Control of migration flow will be enhanced. Control of migration processes will be directed towards free movement of EU citizens and enhancement of control of migration of non-EU citizens.
The Republic of Lithuania will consider maintaining good neighbourliness relations with all states of the region as the unchanging priority of its foreign and security policy. Special attention will be given to strengthening co-operation in the sphere of public security with the neighbouring states: Belarus, Estonia, Latvia, Poland and Russia.
Close multilateral and bilateral co-operation will be further promoted in the sphere of public security with the Nordic countries - Denmark, Island, Norway, Finland and Sweden. Lithuania is an active participant in the activities of the Council of the Baltic Sea States. Stepping up its effort in the fight against terrorism, corruption, organised crime, trafficking in people, drug trafficking, illegal migration and smuggling and acting in response to other modern security challenges (e.g. cyber-crime), Lithuania together with foreign partners and international organisations will draft, ratify and implement international legal provisions giving special attention to the implementation of the UN Security Council resolutions; will promote interdepartmental co-operation between police, border protection services, special services both on bilateral basis and through international organisations, such as the Interpol and Europol.
Main trends of personal and public security development:
to protect the rights and lawful interests of the individual from criminal attempts by implementing effective state policy of crime control and prevention, giving more attention to crime prevention by economic, social, educational and other measures;
to create a new model of the crime control and prevention system, application of which will provide possibilities for the eradication of basic causes and conditions of crime and for rational use of funds allocated for the purpose: to enhance the role of municipalities in creating a safe residential environment; to address personal and public security problems by enlisting the assistance of the public and NGOs; to make use of positive international experience applying and introducing in Lithuania crime control and prevention forms applied in other countries;
seeking to curb organised crime, to take measures to undermine the economic potential illegally accumulated by the organised crime. To ensure money laundering prevention in conformity with international standards. To build up a witness and victim protection system. To give constant attention to combating organised crime, to take an active part in international operations aimed at fighting organised crime;
to implement radical corruption prevention measures, to eliminate its causes - to make appropriate amendments with a view to improving effectiveness of the national legislative basis through harmonisation of national legal acts with the EU legislation. The National Anticorruption Programme which has been provided an adequate funding will have a decisive role to play in this sphere;
to establish a civil protection and rescue institution meeting international standards with a capacity to organise efficient emergency situation management and meet public needs in the area - ensure the necessary emergency aid in case of fire, industrial accident or any other calamity. To develop, according to possibilities, the capacity permitting Lithuania to contribute to disaster and major industrial accidents response in foreign countries, including humanitarian aid and disaster relief upon foreign partners request. To develop crisis monitoring and management system;
to promote efficiency of public security and law enforcement institutions: to improve the methods of institution management and operation, institutional interrelation and relations between the above institutions between the above institutions and other state and municipal institutions and the population; to develop bilateral and regional co-operation, take an active part in the activities of international public security organisations; to ensure adequate material, technical and information supply of public security and law enforcement institutions; to create the officers training and in-service training system which would allow to make a rational use of the available departmental potential and potential of science and studies institutions and to take over positive officer training experience accumulated in European and other foreign countries.
4. Social Security
Main steps in this sector will be in the following strategic directions:
Seeking an increase in employment, reduction of unemployment, improvement of job quality. This trend will cover the 2001-2004 Programme for Increasing Employment in the Republic of Lithuania and the National Labour Safety and Health Programme, the National Programme of Equal Opportunities for Women and Men that is being drawn up.
Development of social insurance system. This trend will cover the pension system reform which has been launched. The reform of the pension system implies a gradual transition from the current social insurance pension system based on redistributive principles to a system based on savings, reform of state pensions and reform of unemployment insurance as well as measures aimed at expanding social insurance coverage and at increasing the stability of financial system.
Development of social assistance and eradication of poverty and social exclusion. This trend embraces the Poverty Reduction Strategy and the programme for its implementation, the National Drugs Control and Abuse Prevention Programme for 1999-2003, social adaptation programme for convicted prisoners and persons released from pre-trial detention institutions, correctional centres and social and psychological rehabilitation institutions, the National Programme for Social Integration of People with Disability for 2003-2012, the reform of cash social assistance, the reform of social protection measures for the disabled, the social services reform, the National Programme against Commercial Sexual Exploitation and Sexual Abuse of Children that are being implemented, also the programme for the improvement of activities of the municipal institutions for the protection of the rights of the child, National Demographic Policy Strategy which are being drawn up.
Improvement of quality of life and strengthening of social partnership. Main steps in this direction are aimed at increasing employment, reducing unemployment and improving job quality:
to increase employability (activating labour market policy, upgrading the activities of labour market institutions, improving the system of vocational training and developing the lifelong learning system);
to promote job creation (providing conditions favourable for the emergence of new jobs, upholding local employment initiatives);
to increase adaptability to changes (development of flexible forms of organisation of labour and payment for work, in-service training of employees, alleviation of consequences of structural changes);
to enhance male and female equal opportunity policy;
to enhance employment policy integration;
to create healthy and safe working conditions at workplaces, reduce the number of accidents at work and cases of occupational diseases;
to ensure that the Lithuanian language is used in the private labour and in-service training sector.
Main steps in the development of social insurance system:
to create an additional non-state insurance system (pension reform). To bring the state social insurance system in line with the non-state system;
to carry out the unemployment insurance reform, implementing a stable and reliable unemployment insurance system;
to expand social insurance coverage, seeking greater involvement in social insurance of rural residents, peasants working on the farm, self-employed persons, artists, etc.
to ensure the adoption and implementation of measures for the collection of tax and payments collection, economic and efficient use of funds;
to draw up medium-term and long-term social insurance and consolidated social security budget forecasts.
Main steps in the development of social assistance and eradication of poverty and social exclusion:
to carry out the reform of cash social assistance aimed at creating a common income and assets-tested cash social assistance system. The system aims at reducing the spread of poverty and combining assistance with the incentives for the families eligible for assistance to seek inclusion in the labour market and expand their economic activity;
to carry out the reform of social protection measures for people with disabilities aimed at combining provision of major aid devices and cash benefits to people with disabilities, creating more favourable conditions for their inclusion in the labour market, paying disability benefits based on the determined level of loss of capacity for work;
to carry out the reform of social services which would define more efficient methods for organising the provision of social services, encourage the recipients of services to seek for ways of self-help, restructure the funding of services, create a common mechanism for social services standards and quality assessment and control;
to provide preventive and rehabilitative social services to social exclusion groups, persons subjected to violence and abuse, suffering from dependence diseases, persons released from the places of imprisonment and other persons;
to strengthen, in conjunction with municipalities, the network of the institutions for the protection of the rights of the child;
to continue implementing measures under the National Programme against Commercial Sexual Exploitation and Sexual Abuse of Children;
to develop the municipal social housing stock, to support low income residents seeking to make housing affordable them;
to make better use of the resources and capacities of NGOs in order to upgrade social assistance; to ensure efficient functioning of the above non-state social assistance systems;
to implement the family assistance system, to provide for measures for the improvement of the country's demographic situation.
Other steps, relevant in all directions:
to upgrade the legal system and bring it in line with the international social law;
to implement and carry out legal, financial and administrative measures necessary for compliance with the mandatory EU requirements regarding free movement of workers and social policy and employment;
to prepare legal and institutional measures required for working with the European Social Fund and for efficient administration of its resources;
to monitor and assess social and labour policy; to use outsourcing by tender for carrying out examination and policy assessment. To establish and prepare data basis for the above purposes; to use automated processing, management and dissemination of information received via computer network;
to keep the society informed about social rights and possibilities for implementing the said rights.
5. Health Protection
The main trends in the long-term development of the health protection system are as follows: reform of the healthcare system, which conforms to the requirements of European Union law; development of the systems of public health strengthening, education and information; implementation of disease prevention and control; promotion of vocational improvement. By this strategy one seeks to create an up to date and modern healthcare system, based on strategic planning, analysis and management of the changes in the reform process, which ensures the accessibility, effectiveness of healthcare, rational use of funds and formation of a healthy lifestyle. The State ensures the effective functioning of the health system, incorporating for the implementation of this goal, all of the social and economic structures and creating the necessary conditions for the public and each member thereof, to lead a healthy life. For this reason, the unquestionable strategic prerequisite of ensuring an optimal health condition is a cohesive development of the entire health system, including the protection and strengthening of health, disease prevention, timely diagnosis of diseases, treatment and rehabilitation of patients.
The system of health protection will be developed as follows:
by forming the principles of a healthy lifestyle and healthcare in society and bringing them in line with the requirements of EU legal acts. We seek to reduce the morbidity and mortality of the population resulting of causes, which have a negative effect on the working and living conditions of the population, to ensure the effective functioning of the system of prevention and control of diseases, to develop the systems of health education and information, of assessment of the influence to health of the health risk factors, promotion of the vocational improvement of employees of the public health system and to invoke the assistance of other sectors to help solve health problems.
by developing the capabilities of social risk and health risk groups to adapt to the environment by encouraging them to join help groups, being able to independently overcome the public health problems and by supporting public organisations, which are involved in public healthcare. We strive to form a society, which is active and responsible for its health.
An improvement of the health education system itself is provided for in order to develop the principles of a healthy lifestyle. The inclusion of healthy lifestyle education in the vocational training and qualification improvement programmes of the employees of the health system and other sectors would strengthen a person’s individual responsibility for his health.
By reducing mortality of the population and extending the average lifespan. Efforts are being made to create equal opportunities for all residents of the country to obtain necessary health services, and to observe and assess the causes of mortality of the population. To secure reasonable in-patient and outpatient assistance for all residents. The need for preventive health examinations and highly specialised services, which effectively improve the quality of life, shall increase, owing to the impact of the change in the requirement of healthcare services, resulting from decreasing mortality, longer general lifespan and the changing demographic structure of Lithuania’s population (there will be a significant increase in residents over the age of 65). It is therefore necessary to develop the services, whose demand is currently not being met. We strive to improve the quality of the provided healthcare services by instilling new medical technologies, improving worker qualifications and ensuring conformity with the requirements raised by institutions and the EU.
In implementing the prevention of chronic and non-infectious diseases and traumas, we plan to improve the system of early detection and control system of the risk factors of non-infectious diseases and to implement integrated programmes of the prevention of these diseases.
To implement through respective programmes the prevention and control of communicable diseases.
By improving administration and funding of individual healthcare institutions.
Efforts are made to create a properly operating system of state, district and local government healthcare institutions. Provisions are made to improve the distribution of resources, and to optimise the healthcare expenditures. In seeking greater effectiveness of the health system, looking for and instilling more effective forms of fund utilisation, improving the system of secondary and tertiary healthcare institutions, and in the future also improving the health indexes of the population, the target will be met to provide more and better services for the funds allocated to healthcare. We aim to keep in check the direct expenses of the population relating to healthcare.
By implementing active prevention of dependence diseases and improving the healthcare of drug addicts and other persons who are suffering from dependence diseases. To hold drug prevention programmes the schools, expand the long-term and social and medical rehabilitation of drug addicts and persons infected by HIV. The Republic of Lithuania will implement and strive to join the EU and other international drug prevention programmes.
By ensuring that only safe, proper quality and effective as well, as reasonable with respect to cost medicines, which conform to the requirements, applied by the EU would be available on the Lithuanian Market. Legal documents are being drafted, which regulate pharmaceutical activity, introducing the requirements of EU directives in the sphere of medicines and medical devices.
Physical Culture and Sport
In wanting to raise a full harmonious personality, physical culture and sport comprise a significant component part of the educational process. Having infused a need of physical activity yet in their youth years, we will raise young people who are healthy, physically fit and prepared for life. In a self-renewing society, physical culture and sport should become an integral part of human life, and therefore we are promoting after school sport activities, implementing summer programmes of children’s activities, developing sport club activities, and also, selecting talented children and preparing them for major sports. Greatly skilled athletes comprise a dependable and peaceful means of publicising one’s country and proclaiming its name throughout the world.
6. Foreign Policy
Lithuania’s strategically rooted position in the European Union and NATO creates the conditions to move towards a more transparent definition of foreign policy priorities with a view to the national interests of the state – a secure state, a wealthy state, an influential state and a responsible state – accordingly anticipating the specific measures of the implementation of these goals.
Secure State
The strategy anticipated for the implementation of this priority is as follows:
to expediently employ the membership in NATO in order to create a secure environment;
to actively participate in the mutual EU foreign security policy and also, in the creation and enhancement of the mutual EU defence policy;
to actively utilise the experience of the diplomatic service of Lithuania in forming EU policy in the context of a “more expanded Europe” initiative (Belarus, Kaliningrad Region, Russia, Ukraine);
to develop relations of good neighbourliness and initiatives of regional co-operation;
to continue a policy of the measures which strengthen security and trust (like the OSCE) in relations with the eastern neighbours;
to co-operate on an international scale in the fight against terrorism, proliferation of weapons of mass destruction, arms control, prevention of criminal activity and other issues;
to promote international co-operation in the support of global renewable environment, combating drugs, illegal migration and trafficking in human beings, fight against extremely dangerous diseases and in other areas;
to ensure the protection of Lithuania’s borders, as the external EU borders; to implement the requirements of the EU Shengen Treaty and to join the Shengen space; to co-operate in the fight against illegal migration;
to be active in the area of crisis prevention.
Wealthy State
The integral parts of the strategy of this priority are:
to employ the EU common market and EU trade policy to serve the commercial and economic interests of Lithuania;
to ensure long-term EU structural support and to use it constructively;
to join the Economic and Monetary Union;
to develop the infrastructure in the region, particularly the most important networks of the transport infrastructure of Lithuania, modernise them while integrating into the European Union and joining and connecting the country’s transport systems with the European ones;
to develop bilateral economic diplomacy in close co-ordination with the structures of Lithuania’s economy, trade representatives and special agencies;
to make use of the membership in the World Trade Organisation (WTO), ensuring the commercial and economic interests of Lithuania;
to join the Organisation for Economic Co-operation and Development (OECD) and actively participate in its activities;
to propagate Lithuania as a country attractive for international tourism.
Influential State
The strategy of implementing this priority is as follows:
to stimulate the interest of the nationals of Lithuania in EU activities by propagating European values and solidarity of EU countries;
to make up a competent and modern corps of officials to actively participate in EU life;
to further develop within the EU the “community” method of action; to preserve the principles of solidarity and cohesion;
to root the international prestige of the Lithuanian State, by propagating human and minority rights, democratic ideas, and a positive experience of Lithuania in solving these issues in the activities of the UN, OSCE, CEE and other international organisations);
to contribute on an international scale to the formation of a new cultural policy commensurate with the new European and global reality, to international initiatives, by which one seeks to root the equality of cultures and languages, and ourselves to promote such initiatives;
to raise Lithuania’s candidacy in electing the bodies of international organisations, and first of all, the candidacy of the chairman of OSCE for 2007/2008., and non-permanent members of the UN Security Council for 1012;
to give more attention to the enlargement policy with a view to its usefulness to Lithuania and EU, through the gradual increase of the funds earmarked for it and expanding its geography;
to expand public diplomacy by making use of cultural events youth exchanges, scientific and cultural exchanges, Lithuania’s initiatives in activities of international organisations (e.g., Vilnius- European Capital of Culture, International Youth Year in Vilnius etc.), specific support for Lithuania’s regions to access the world.
Responsible State
Two blocks of tasks implement this priority:
Relations with the émigrés,
consular assistance to nationals abroad.
Specific tasks:
To maintain and strengthen relations with Lithuanian émigrés;
To assist in ensuring émigré rights, especially in the neighbouring states, through focusing the attention of these states on problems which have arisen and searching for a solution thereof;
to draw the émigrés into the process of implementing Lithuania’s priorities;
to expand consular assistance to nationals:
to constantly supply nationals with information concerning the dangerousness of various regions world-wide and specific journeys;
to implement reforms in the consular service to nationals by speeding up the issuance of documents, and facilitating the procedures of passport replacement;
to create a system of assistance abroad for the Republic of Lithuania nationals who fall victim to misfortune abroad;
to make better use of the system of honour consuls in rendering consular assistance in places where there are no Republic of Lithuania diplomatic missions; to further expand the network of honour consuls in countries, where such missions shall not be established in the near future.
Development of Diplomatic Service
The diplomatic preparedness of the state is one of the most important tasks of foreign policy.
The realities of the foreign policy of Lithuania which will influence the strategy of the expansion of the diplomatic service during the next decade, are as follows: Lithuania’s membership in the EU and NATO, the strengthening of Lithuania’s role as a regional operator and one of the regional leaders; representation of regional interests according to actual needs, including the interests in the states beyond the limits of the transatlantic expanse, which are undergoing speedy economic growth and the shifting geography of the movement and life of Lithuania’s nationals.
In expanding the diplomatic service, the following aspects shall be accorded principal attention:
Co-ordination of the implementation of foreign policy;
preparation of highly qualified diplomats with a view to the tasks and requirements posed for the service;
development of a purposeful network of diplomatic representation based on actual needs, reinforcement of the existing diplomatic missions;
improvement of the technical data base and ensuring the security which meets the EU and NATO standards;
development of public relations and public diplomacy.
7. Law Making
When creating a national legal order in conformity with the principle of the rule of law and the legislative experience of the European Union, it is necessary to take the following steps and to implement the following key measures:
to lay down the prerequisites, both in research and methodology, for the creation and realisation of the legal order and its constituent parts ands participate in the process of their implementation;
to systematise public and private law, to co-ordinate drafting of laws and other legal acts necessary for the implementation of the codes;
to draft the commentary to the Code of Civil Procedure and the commentary to the Criminal Code;
to make, on a regular basis, the assessment of draft laws and other legal acts and subject the draft legal acts prepared by various institutions to scrutiny;
to promote international co-operation with the Member States of the EU in the sphere of justice and home affairs, to seek accession to the multilateral international agreements regulating judicial co-operation, ensure their effective enforcement, initiate bilateral agreements on judicial co-operation and hold negotiations;
to ensure compensation for moral and material damage caused by illegal actions of officials;
to continue the restructuring of legal institutions – courts, bailiffs’ offices, and correctional institutions and to improve their work;
With a view to ensuring the protection of the civil rights of the consumers, business people, other natural and legal persons, and regulating by legal means of the environment favourable for business it is necessary to take the following steps and measures:
to continue the activation of the mortgage system. In order to ensure the protection of civil rights the mortgage register has to be developed;
to ensure the protection of consumer rights: to create an effective legal-institutional system and to guarantee its optimal functioning;
to raise public awareness about law in order to enhance its trust in the legal system.
With a view to developing and implementing the national system of legal assistance, to provide equal opportunities for all persons, irrespective of their ethnic origin, sex and convictions, to protect their rights and lawful interests and to seek justice, it is necessary to take the following steps must be taken:
to provide state legal assistance;
to co-ordinate the relations between the state and religious communities on he basis of principles of religious tolerance;
to create conditions for carrying out qualified expert examination on the direction of law enforcement institutions.
Analysis and improvement of the process of law making in Lithuania in accordance with European standards, on the basis of the principle of continuity, through a flexible application of different methods of legal regulation and measures, requires the implementation of the following measures:
implementation of the guidelines for the improvement of law making: enhancement of the procedure for drafting, assessment, co-ordination, adoption and publication of legal acts;
setting up of a viable mechanism for the implementation of laws which would ensure compliance with law by every state or municipal institution, involving the participation of the public in the making of the most vital decisions;
independent expert assessment of legal acts, both existing and those to be drafted;
research in the individual branches of the legal system;
implementation of the programmes on crime prevention, juvenile justice and others.
With a view to creating conditions for the enforcement of sentences in compliance with the requirements of the laws of the Republic of Lithuania and international agreements, carrying out the enforcement of sentences and applying corrective measures for the convicted persons provided by laws, harmonising the conditions at the institutions of deprivation of liberty and detention centres for the convicted persons and persons serving their sentences with the appropriate international standards, it is necessary to take the following measures:
the reform of the penal system must be made up of two parts – legal and organisational. A mechanism for the implementation of the Code of the Enforcement of Sentences must be created;
pre-trial detention and enforcement of sentences must be used in order to ensure an effective functioning of correctional institutions and enforcement of deprivation of liberty and other sentences;
a model for a suspended sentence and probation in line with the requirements set out in the instruments of international law must be created;
the staff of correctional institutions must be trained to provide social counselling when necessary to the persons serving their sentences;
harmonising the system of pre-trial detention and the enforcement of sentences with the requirements prescribed by the instruments of international organisations and, having regard to the progressive experience of foreign countries, to provide to the detainees and the convicted persons appropriate living conditions provided by law.
to represent the Government of the Republic of Lithuania at the European Court of Justice.
COMPETITIVE ECONOMY
The state must direct Lithuania’s economy towards the production of intellectual products and provision of intellectual services in such a way that by means of generating the income, it would be a full-fledged member of the world market, capable of co-operating and competing. The State must also develop the information technologies based on gradually upgraded means of telecommunications and information.
(The Long-term Economic Development Strategy of Lithuanian until 2015, approved by Resolution No 853 of the Government of the Republic of Lithuania of 12 June 2002.)
1. Industry and Business
A strategic goal of the development of industry is to achieve that by the year 2015 as many enterprises operating in Lithuania as possible would be competitive at the international level, and the structure of industry and industry-related business, as well as a created share of the national product would be close to the indices of the EU Member States.
The most important objectives which must be implemented at the national level when pursuing a strategic goal of the industry development, are as follows:
to create stable macroeconomic and legal environment favourable for business, and the infrastructure encouraging investments in the development of modern industry;
to strengthen general and specific factors determining competitiveness of the national industry and its sustainable development;
to create an efficient national system of innovations which would guarantee favourable conditions for the integration of science and manufacturing, the creation and dissemination of new technologies and operational methods;
to prepare and implement the strategy of attracting investments in Lithuania’s industry that would encourage green field investments and investments by including Lithuanian enterprises in knowledge economy clusters;
to guarantee equal competition conditions for domestic and foreign companies, to ensure fair competition, protection of domestic market against low quality products;
to prepare and implement the strategy of creation of national industry clusters;
to encourage with economic and other measures the improvement of the competence of heads and specialists of enterprises, to create for them favourable conditions to obtain information about markets and other important aspects of activities;
to improve corporate industry management by encouraging the co-operation between enterprises and groups of various interests;
to create favourable legal environment and infrastructure for the development of small and medium-sized enterprises, including the enterprises providing business services for industrial enterprises;
to facilitate conditions of restructuring and bankruptcy of enterprises which are unable to compete, as well as the procedures for establishing and liquidating new enterprises;
to improve for enterprises the conditions of self-provision with financial resources.
Priorities of industry development
The priorities of the strategy of industry development are as follows:
activities creating major added value, which are based on science, knowledge and high technologies in any branch of industry, including traditional industrial sectors;
those industrial development directions which are based on knowledge, are recognised as priority ones when creating and developing a common European Research Area. This would allow to draw the structure of Lithuania’s industry closer to the developed countries when creating and introducing scientific research and technologies, to use the EU funds and scientific-technological potential, Lithuanian enterprises and scientific organisations to join strong industry clusters;
sustainable development of industry, ensuring more rational use of energy and natural resources, reduction of waste and pollution, the impact of a created product on the environment during its whole life cycle, a more sustainable development of regions and better employment of their potential.
Implementation of the strategy of industry
The strategy of industry development is closely related with other strategies of economic development:
development of small and medium-sized business;
social development and economic factors of employment;
development of external economic relations;
economic factors of environmental protection;
development of science and technologies.
All the aforementioned strategies must be implemented through the programmes approved by the Government. Undoubtedly, the strategy of industry development should become a political document and serve as a basis for the creation of future government programmes.
In the nearest future it is expedient to renew current Programmes on Innovations in Business and on the National Quality, and to draw up new programmes – on High Technologies, on the Implementation of the Provisions of the White Book, on the Sustainable Development of Industry, on the Creation and Development of Industrial Clusters, and on the Development of Small and Medium-sized Business. Constant evaluation and improvement of the investment environment is an objective of major importance.
Associations representing activities of manufacturing industry have already drafted or are in the process of drawing up strategies or programmes on the development of those activities. The said strategies and programmes should be amended taking into consideration these provisions of a long-term strategy of industry.
The draft plan of the development of the system of Lithuania’s higher education for the period of 2002-2006, which is under consideration at the moment, should be harmonised with this long-term strategy of industry development. The chapters of this draft dedicated to the quality of studies, match of supply and demand of specialists on the labour market, integration of studies and science, as well as the systems of continuous training are especially important for the development of Lithuania’s industry.
Strategic trends of the development of small and medium-sized business before the accession to the European Union:
to improve legal and economic environment of small and medium-sized business;
to improvement financial support for small and medium-sized business entities;
to provide business information, training and consulting services;
to encourage application of innovations and information technologies when developing small and medium-sized business;
to improve institutional infrastructure;
to develop business self-governance;
to develop small and medium-sized business in regions;
to encourage the co-operation of large and small and medium-sized enterprises, as well as mutual co-operation between small and medium-sized enterprises at national and international levels;
to integrate sections of society into small and medium-sized business;
to encourage entrepreneurship, using the system of education.
Strategic trends of the development of small and medium-sized business after Lithuania’s accession to the European Union
Establishment of new small and medium-sized enterprises:
to promote the establishment of small and medium-sized enterprises: expenses related to the establishment of small and medium-sized business must become competitive within the European Union, it is necessary to create an Internet system of the registration of small and medium-sized enterprises, and to make it accessible for businessmen;
to expand financial services for small and medium-sized enterprises through the creation of appropriate measures and improvement of conditions for the use of soft credits and micro-credits, risk capital funds, loan insurance, support of the EU structural funds;
to promote the establishment of innovation enterprises – to increase the number of new small and medium-sized innovation enterprises, especially in business incubators and parks of science and technologies supported by the State.
Strategic trends of the development of small and medium-sized business :
to promote and support national research programmes designed for commercial application of knowledge and technologies, development of small and medium-sized enterprises, as well as the application of quality requirements and installation of certification systems;
to implement programmes promoting technological co-operation of enterprises of different sizes at the national and international levels;
to create international information and business-support systems together with the EU member states, which would be easily understandable and transferable through network.
Regional development of small and medium-sized business:
to create and implement a regional development policy;
to prepare strategic regional development plans, including the plans of small and medium-sized business development;
to efficiently use potential of regional business development.
Improvement of qualifications of employees of small and medium-sized enterprises:
to prepare modules concerning information about business and entrepreneurship, and to include them into the programmes of studies of secondary schools, colleges and universities;
to develop courses for training international business specialists, educating for entrepreneurship, and insuring the improvement of qualifications, as well as to improve the quality of such courses;
to develop the network of institutions providing consulting training services;
to support the provision of consulting and training services for small and medium-sized enterprises and potential businessmen;
to promote investments of enterprises in the improvement of qualifications of employees.
Infrastructure of small and medium-sized business:
to create a system of the collection, analysis and dissemination of information;
to create legal and economic conditions for the development of physical infrastructure;
to create and improve an institutional infrastructure providing non-financial support for the development of small and medium-sized business medium-sized business. Tasks of small and medium-sized business development must be implemented in an integrated manner through three different institutional levels:
national level (the National Programme on the Development of Small and Medium-sized Business);
regional level (support and development of institutions);
local level (support and development of businessmen and business level).
2. Energy Sector
On the basis of the available information and a feasibility study it may be assumed that after the decommissioning of both units of the Ignalina NPP, the minimal expenses for the development and functioning of the electricity system and a higher degree of reliability of electricity supply may be ensured by the continuity and further development of a safe nuclear energy. To this end a new nuclear unit needs to be built, making use of the existing infrastructure of the Ignalina NPP; the Lithuanian Power Station, the main source of non-nuclear energy, has to be upgraded by installing new gas turbines and smoke filters; it must be able to use at least two types of fuel; the Vilnius and Kaunas combined heat and power plants, the Kaunas hydropower station will have to be modernised, several new combined heat and power plants will have to be built, their capacities depending on the rate of the real electricity demand growth.
Should fossil fuel prices go up in future, it would be wiser to build new, large capacity power plants – a combined cycle gas turbin plant and new combined heat and power plants.
After the upgrading of the existing thermal plants, combined heat and power plants would be the cheapest source of generation of electricity, and the share of electricity generated by them, including the new combined heat and power plants, would rise up to 35-45 per cent in the total balance of electricity by 2015-2020.
In order to be integrated in the power system of Western European countries the construction of a powerful transmission line to Poland is an immediate necessity. It would not only provide an opportunity for the export of surplus electricity to the West but would also contribute to the integration into the electricity markets of Europe and to the enhancement of reliability of energy supply.
Other key tasks:
In the electricity sector:
upgrading of the available capacities of the power plants, bringing them in line with the demands of the market economy, consistent introduction of the instant measures for the regulation of power balance;
reconstruction and upgrading of the physically and morally outdated electricity transmission and distribution networks to meet the increasing demand as well as the reliability and quality requirements of electricity supply;
promotion of collaboration and co-operation with the Baltic and Nordic countries; modernisation of high-voltage lines, development of a single electricity market, optimal use of the potential of electricity systems of the Baltic countries.
In the sector of nuclear energy:
upgrading of nuclear safety during the operation and decommissioning of the Ignalina NPP;
creation of the infrastructure in line with modern international requirements for the management of radioactive waste and spent nuclear fuel, its storage and disposal;
in order to remain a nuclear state in future and generate electricity at nuclear plants meeting contemporary safety requirements, it is necessary to encourage investment into the construction of a new nuclear unit by using the current infrastructure of the Ignalina NPP;
In the heat sector:
combined heat and power plants must be installed in the district heating systems using natural gas provided that it is economically feasible;
the use of alternative sources of energy in the district heating systems must be encouraged;
the district heating systems must be upgraded steadily, by providing the consumers with a possibility to regulate their heat consumption;
purchasing of electricity generated by the combined heat and power plants must be encouraged and the capacities of theses plants must be exploited for heating to the maximum;
special long term development plans for the use of types of power for heating and of the district heating sector, as well as a programme of upgrading of this sector must be developed and implemented;
the establishment of power equipment maintenance undertakings must be promoted.
In the natural gas sector:
to promote the development of gas transmission network and gas transit via the territory of the country;
to establish a gas metering station on the border with Latvia and to connect it with Latvia's gas supply system and with its underground gas storage;
in conjunction with the other Baltic states to prepare the project for interconnection with the gas networks of Poland and Finland and to seek to implement it;
to continue investigation and later, if it is found economically feasible, to construct the underground gas storage in Lithuania.
In the system of oil product supply:
to discontinue, as of 2005, the use of oil products which do not comply with the EU limit value for pollutant emission;
to promote the use of ecologically sound types of fuel - low sulphur heavy fuel oil and domestic heating fuel by imposing and revising natural resources tax and pollution tax;
to build mandatory 90-day state stocks of crude oil and petroleum products by the end of 2009.
The use of indigenous and renewable energy resources:
to seek that energy generated by renewable resources by the year 2015 should form a share corresponding to that prescribed by the directives of the European Union;
to promote, by economic, legal and organisational measures, the use of wood, municipal and agricultural waste and other kinds of indigenous fuel;
to seek wider utilisation of other energy resources (hydro, waste energy, biogas, municipal waste, wind, solar and geothermal energy).
Increasing energy efficiency:
to draft and revise legal and statutory acts;
to renovate buildings and modernise their energy economy;
to prepare and implement technical regulations relating to energy conservation and the programme for the development of the necessary infrastructure (testing laboratories and attestation institutions);
to introduce in production processes modern technologies and energy conservation measures;
to strengthen scientific, information, educational and consultative activities.
Environmental protection:
to seek a well-balanced structure of primary energy supply (increasing the share of natural gas and renewable energy resources) to ensure that after the decommissioning of the Ignalina Nuclear Power Plant the atmospheric emission of CO2 does not exceed Lithuania's commitments under the Kyoto Protocol;
to develop measures in energy generation sources for the reduction of SO2 and NOx emissions to permissible levels;
to further develop the environmental auditing system;
to install pollution monitoring systems in the major thermal power plants and boiler houses;
to further improve the pollutions charges system seeking to assign certain amount of gathered funds for the implementation of pollution reduction measures.
Market liberalisation and competition, legal and institutional reform:
to liberalise the electricity and gas sectors opening the market in accordance with the requirements of the EU directives;
to revise the legal acts regulating the energy sector activities;
to reduce the Government's influence on the electricity companies, to authorise state institutions to settle only the strategic issues of energy sector planning, development and regulation;
to privatise natural gas transmission and distribution enterprises and electricity sector enterprises that are set aside for privatisation, to proceed with the privatisation of oil processing and transportation enterprises, to encourage loical and foreign investors to take part in modernising and restructuring energy facilities;
high voltage electricity transmission grid must remain under the State control;
to expand collaboration and co-operation with the Baltic States, to create a common electricity market ensuring better utilisation of available generating capacities for the satisfaction of the demand of the three countries.
3. Transport and Transit
The development of the economy of Lithuania, successful competition of goods and services in international markets, creation of new work places and income for transit freight depend a great deal on the transport policy being implemented.
Priority consideration is accorded to reconstruction and modernisation of those objects of transport infrastructure, which coincide with the most important perspective component parts of the transportation network of the European Union, as established by the European Commission. Primarily, one strives to bring about Lithuania’s becoming an actual transit state, and that the most favourable conditions would be created for transit.
With these goals in mind a long-time strategy of the development of Lithuania’s economy until 2015, has been drafted, in which the directions of transport and transit development have been minutely detailed, programmes of the development of major transport branches (road supervision and development, renovation and development of the infrastructure of Lithuania’s railroads, restructuring of AB “Lietuvos Geležinkeliai,” [“Lithuanian Railways”], improvement of the State Seaport of Klaipėda, expansion of Vilnius Airport), etc. The strategy of the development of the navigation sector of Lithuania has been drafted. The Acquis Communautaire of the European Union is being implemented. The laws, which regulated the activities of the transport branches and other legal acts shall be changed by January 1, 2004 and be adjusted to the Acquis Communautaire of the European Union.
In the transport and transit strategy of Lithuania the most important priorities are assigned to:
modernising and development of the infrastructure of the roads, rails, Klaipėda Seaport, Vilnius, Kaunas and Palanga Airports, according to the TINA Programme, striving that the principal transport arteries and ties of the European Union would be recognised as a part of the transeuropean network (TEN-TR) (would officially acquire such status). Particular attention shall be given to the modernisation of the I railway corridor (north-south direction) and inclusion of it in the transeuropean networks;
to create logistics centres in Kaunas, Klaipėda and Vilnius and include them in the European network of multimodal logistics centres;
to implement (complete) structural reforms by taking into account the solid experience of the European countries;
to integrate Lithuania‘s carriers into the market of transportation services of the European Union;
to improve the interplay of transportation types (expansion of multimodal transportation processes), in order to ensure a new quality of transport services (for passenger and freight carriage);
to solve the issues of international cooperation in the Baltic Sea region by striving to find opportunities of expanding transit services in the north-south and west-east directions with particular attention focused on the ports of southern Sweden and northern Germany;
to apply the principles of private and public capital partnership (PPP) in financing the objects of transport infrastructure.
In preparing the specific measures of implementing the priorities, while being mindful of the methodological principles of transport system development confirmed by science and practice:
Complexity. While readying the various measures, related to the development of the transport system, one must be aware of all possible consequences of their implementation (among them not only those of technological and economic, but also social, ecological and other character) as much for the transportation sector as also other sectors of the country’s economy.
Dynamism. During the transformation and integration of the country’s economy into EU market conditions, with fundamental structural changes in the economy and foreign trade occurring, it is necessary to assess the impact of the time factor in expanding transport and transit (to predict changes in carrying demands, changes in transportation objects, work conditions and regimen changes and transit demands).
Effectiveness. The general amount of the resources, which the State disposes, is limited and therefore, in selecting and assessing the measures of the expansion of commercial transportation activities (equalising expenditures and results) it is necessary in each actual case to guarantee the effect, to be no lesser than it is possible to achieve in another sector of the country’s economy. Projects of the expansion of transportation infrastructure, which must prove profitable on a countrywide scale, constitute an exception.
Development by Stages. The development of the needs of complex transport systems has a discretionary nature. In view of the fact that it is impossible to also increase by stages the capacity of the infrastructure with the growing needs of carriage development, every new stage in the development of transport infrastructure must guarantee efficient functioning of the transport system for a sufficiently ample period of time.
4. Knowledge Economics and e-business
In seeking productive knowledge economics and development of e-business, the State should:
improve the development of knowledge economics, which promotes a lawful environment and institutional interaction;
develop international cooperation instilling the newest scientific strides worldwide, creating and spreading virtual centres of science and innovations, to participate in creating a strategy of scientific research of Europe;
support models of co-operation between scientific institutions and business undertakings;
provide comprehensive information regarding the possibilities of investment in the ITT sector in Lithuania;
promote the use of open code programme software;
ensure the functioning of the electronic payment system;
create the conditions through public networks to perform customs, tax payment and income declaration procedures;
institute a competitive environment in the area of telecommunications and data transfer.
5. Rural and Agricultural Development
Rural Development:
to support alternative activities promoting the production of non-traditional and ecological products of agriculture, country tourism and recreation, household and commercial services and traditional crafts;
to promote agricultural production for non-nutritional needs, development of forest business;
to provide investment support for small and medium undertakings, to promote the establishment of small industrial undertakings or branches of larger undertakings in rural localities;
to intensify pond fishing;
to promote the local employment initiative;
to provide greater investment support to those engaged in farming in less favourable areas;
to fortify rural territorial self-government;
to promote the establishment and development of producer groups and cooperative societies;
to implement the renewal programmes of the ethnic-cultural rural regions;
to apply the EU measures of rural development under the conditions of EU membership, set forth in the Regulations of the European Union, and to elaborate them in drafting the programme documents in order to obtain structural support;
Support of Income of Producers of Agricultural Production:
Until accession into the EU to pay direct payments and compensations. Following the accession of Lithuania to membership in the EU, to apply the general EU principles of agricultural development taking into account the negotiation results.
Promotion of Restructuring and Modernisation:
to promote investments in primary agricultural production and restructuring and modernisation of the processing industry and to speed up farm specialisation;
in providing state support, to promote the manufacture of ecological production , to create favourable conditions for a market of ecological products to emerge. To improve the certification system of ecological farms.
to differentiate the investment support in giving priority to young farmers, cooperrative societies, and producers groups;
to provide investment support to those farming in less favourable locations;
to prepare the financial measures to reduce certain indirect expenses;
to promote co-operation;
to develop the entrepreneurship of agricultural entities and capability to adapt to market changes.
Expansion of Markets and Increase of Competitiveness:
to examine promising markets of foreign countries and provide information concerning the specifics of foreign markets;
to create an image of Lithuanian products and system of the trade infrastructure abroad;
to strengthen control of the mandatory requirements of food safety, quality and marking;
to provide only indirect export incentives;
to apply the special measures of market protection, set forth in the Law on Safeguard Measures, Law on Countervailing Duties, and Anti-dumping Law;
Following Lithuania’s accession to the EU, to apply the EU system of market regulation and export promotion.
Improvement of Production Infrastructure
to provide for measures of electrification, construction and reconstruction of rural roads. To form legal, financial and organisational pre-conditions, which would create a cohesive system of services of technical supervision, transport, supply of resources and sale of production. To implement a reliable system of certification of agricultural machinery;
to provide for a basic restructuring of land reclamation and water management economy - privatisation of land reclamation property;
Improvement of Financial Infrastructure
to create and develop a system of credit favourable for agriculture;
to develop a system of loan insurance, in restructuring the activities of the guarantee fund of agricultural loans according to the principles of activities of similar EU institutions;
to implement a system of licensed warehouses through creating reserve insurance funds and applying warehousing certificates as securities in the financial market;
to improve the system of insurance of real property, crops, livestock and vehicles. To implement the insurance system of financial risk of the investment projects.
Development of Science, Instruction, Consultation and Information Services:
to create a common intellectual development system of agriculture, which includes the areas of science, studies, vocational continuing education and consultation;
to develop R&D;
to modernise the science and studies base;
to create and develop a continuing system of education;
to create a common national system of agricultural information;
To develop consulting services.
Rational Use of Land and Formation of Land Market:
to regulate the legal land relations, complete restoration of property rights to land; to promote the development of the land market and joining of land plots;
to perform geodesic and cartographic operations and, create a system of land information;
to implement the complex of legal, economic, organisational and administrational measures in order to maintain a good cultural and technical condition, to preserve land productivity and improve the condition of land reclamation equipment.
Environmental Protection, Food Quality and Safety Ensuring:
to apply general measures (EU legal acts are implemented, conformity of assessment infrastructure of raw materials and food products is improved and reinforced, maintenance of an international level of accredited laboratories is ensured), veterinary measures, phyto-sanitary measures and turn out ecological production.
6. Financial Policy
In the sphere of fiscal policy it is necessary to improve the institutional conditions for long-term saving concerning domestic financing of investments and in preparation for the pension system reform; to introduce incentives aimed at higher labour efficiency, to speed up the tax and budget management reform; to reduce interest rates by providing better conditions for business.
Preparation for the use of aid from structural funds necessitates the enhancement of administrative capacities on all levels of management. During the drafting of programming documents and the administration of structural funds close co-operation with the European Union structures and the national, regional and local institutions of the EU Member States is essential.
The reform of the tax system. With a view to ensuring the needed level of revenue collection, the state must allocate appropriate funding for the enhancement of the tax administration through investing into the information technologies of the tax administering institutions, training of the personnel etc., and educate the tax payers. The reform of the tax system has to proceed in conformity with the international taxation practices, especially the requirements of the European Union, having regard to the negotiation commitments. The ongoing budgetary reform requires the application of the principles of strategic planning for the procedures of drafting municipal budgets. For the discharge of state functions delegated to the municipalities, special grants should be allocated to them from the state budget in accordance with a special methodology designed for the calculation of the funds for the performance of said function, and applicable to all municipalities.
More effective management of the state debt calls for a more extended maturity of the borrowing instruments and an increased liquidity of the Government securities on the secondary market. To enhance the circulation of government securities it is imperative to use modern technologies much more extensively; to reduce the scope of the guarantees and to provide them only for financing the infrastructure and projects of state significance.
One of the state’s strategic targets is the improvement of the housing crediting system. The reforms in housing crediting should contribute to a transfer from the socially oriented housing development, the centralised and subsidised financing of housing to a commercially viable financial system which would allow the housing sector to operate in accordance with the market principles.
The policy of development of the insurance market will involve the enhancement of the potential of insurance companies, lifting the regulation of the investment of their authorised capital and abolition of the restrictions on their investment activities. It is planned to introduce a qualitatively new statistical accounting of insurance companies which would have a greater informative value and could give a more accurate picture about the insurance company and the insurance market of Lithuania.
Prior to the accession to the EU, the efforts aimed at making the legal and technical basis of the instruments of monetary policy more viable will continue to create uniform and more favourable conditions for a transition in future to the monetary policy instruments applied in the Euro system and for an accession to the Economic and Monetary Union.
7. Regional Development
To ensure favourable conditions for investments in the economy of the regions.
Reduction of social and economic differences between the regions and disproportion between separate sectors within the regions by providing the State support to problem territories and regions which have specific regional problems in separate sectors. A plan for the reduction of social and economic differences between the regions is being drawn up. Development of investment attractiveness of the regions. Development of the networks of collaboration and co-operation between industrial enterprises of the regions. Ensuring the development of the network of sustainable healthcare in the regions.
To develop a technical and social infrastructure of the regions on the basis of the principles of sustainable development.
Determination of the principles of Lithuania’s regional development policy, taking into consideration the EU and national policy; analysis of models of regional development and research into application thereof. Provision of direct local financial support for business (soft credits, coverage of interest, taxable loans). Provision of indirect local financial support for business (support for the organisation of conferences, fairs, business missions, dissemination of business information). Development of the infrastructure of the support for small and medium-sized business (business information centres, etc.). Drawing-up of programmes on the management of a harmonious quality and introduction of ecologically clean production in regional enterprises.
To optimise functions of central State institutions responsible for the implementation of regional development policy.
Improvement of laws regulating sustainable regional development. Creation of institutions necessary for the administration of the EU support. Preparation of a training programme for the development of administrative capacity of institutions of the central level in the sphere of the EU integration (administration of the EU structural funds, project management, etc.).
Expansion of functions of the management of economic development (planning, implementation, co-ordination and control) in county administrations and local authorities.
Drawing up plans for the development of the regions. To create possibilities for implementing local and regional initiatives, receiving the support from the structural funds of the European Union.
To increase the competence of human resources of the regions.
Organisation of research into the market of labour resources. Projects of the development of business, human resources in the regions. Training programmes concerning the preparation and implementation of strategic plans and projects for the employees of local authorities and counties. Drawing up and implementing programmes on consulting and training of economic entities. Target programmes for professional training and boosting of employment. Co-operation projects of the regions, including the Baltic Sea Region. Ensuring of mutual co-operation between institutions and departments.
To create information society through the development of information infrastructure of the region.
Promotion of creation of economic development centres: business incubators, parks of science and technologies, industrial zones. Development of information infrastructure in the regions. Expansion of the network of science and education institutions in regions. Creation and improvement of databases of indices characterising a region, encouragement of university studies in the regions. The programme of the use of modern information technologies for the improvement of business environment.
8. Tourism
The goals of tourism development within the general structure of the national economy have an impact on and is closely related with the strategies of other sectors of the economy, the actions and measures provided for therein. The development of tourism is linked with the development of environmental protection, transport, agriculture, integration into the EU, regions, small and medium-sized business. Part of tourism development functions falls directly or indirectly within the competence of the majority of ministries, other institutions. Efficient development of tourism requires a sustainable organisational structure of all levels and strong co-ordination relations. Implementation and co-ordination of the measures of development are ensured on the basis of the National Tourism Development Programme.
To strengthen administration of national tourism and recreation. Optimisation of the system of tourism management. Co-ordination and interrelations of State institutions and the co-ordination of their activities with municipal institutions and associated structures of tourism business. Effective activities of the Tourism Council.
To form an efficient legal and economic environment which promotes tourism development. Creation of a system of privileges and compensations relating to the restrictions of activities in protected territories and objects of cultural heritage, renders of tourist services. Support for investment projects of the tourism infrastructure, carried out in objects of immovable cultural heritage, primarily in estates of manors and ethnographic villages.
To draw up complex programmes, tourism planning documents and projects. Preparation of the National Tourism Development Programme, its periodical renewal and implementation monitoring. Drawing up and implementing regional and municipal tourism development programmes and projects. Strengthening of the capacity to draw up international tourism projects. Preparation for the use of the EU structural funds for tourism development, primarily for the creation of a public tourism infrastructure.
To actively create an image of Lithuania as an attractive tourism country. Preparation of a system of creation of an image of the State and its international tourism image, as well as appropriation of adequate financial resources for the implementation of such system. Establishment of Lithuania’s tourism information centres in the main tourism markets – Japan, Poland, Russia, Finland and Germany. Participation in international and regional tourism fairs. Creation and maintenance of a national tourism information system, supported by information technologies. Establishment of tourism information centres in all municipalities of the country, its integration into a common tourism information system. Participation in the work of the World Tourism Organisation, the European Tourism Commission, the Baltic Tourism Commission. Participation in international tourism development projects.
To expand the diversity of the sector of accommodation, tourist services and entertainment at tourism centres and recreational areas. Development of the network of camping sites. Promotion of the development of the network of economy class hotels. Promotion of amusement and aqua parks. Development of the network of small piers. Development of systems of bicycle paths in resorts and big cities, creation of a network of national bicycle routes in Lithuania. Preparation of investment projects for leisure, entertainment and sports centres, and search for investors. Establishment of conference tourism centres.
To revive and develop resort tourism in Palanga, Druskininkai, Birštonas, Neringa, Likėnai and other resort areas. Creation of necessary legal and economic preconditions which ensure a long-term development of resorts. Expedient use and protection of available natural curative resources which provide favourable conditions for the prospect of a long-term functioning of health resorts. Provision of efficient conditions for people to use recreational resources of the seacoast zone.
To create an infrastructure of marine and internal waters tourism in Lithuania. Completion of construction of the piers for cruise liners in the State port of Klaipėda. Designing and construction of a terminal for passenger ferries, reconstruction of the port of Šventoji. Creation of a network of small ports and piers in the Curonian lagoon. Designing and construction of ports for marine yachts. Development of short-distance navigation routes from the State Seaport of Klaipėda to other ports. Creation of a water tourism route of the Nemunas.
To promote the growth of internal tourism flows of tourism, more even distribution of the flows within the territory of the State. Creation and implementation of the system of tourism information road signs. Drawing-up and carrying-out of projects concerning the tourism infrastructure of principal main and national roads. Ensuring of activities of border points meeting the EU requirements for the movement of citizens. Active participation in international tourism projects (the Via Hanza, the Amber Road, the Rulers’ Road, etc.), as well as in the projects on roads of European culture.
To ensure the creation and supervision of the public recreational infrastructure in the whole territory of the State. Roadside rest stations with sanitary hygiene facilities, lookout points, camping sites, beaches and swimming areas which meet the needs of local residents and tourists from the viewpoints of quality and quantity.
To improve statistical accounting of the tourism sector, to promote scientific research in the field of tourism. Statistical research of domestic, inbound and outbound tourism. Introduction of the Accompanying accounts of tourism, permitting to assess the input of tourism into the national economy more accurately. Setting-up of a bank of Lithuania’s recreational resources. Territorial planning and scientific research works. Planning of the tourism of national and regional parks of Lithuania and the development of recreation.
To improve training of tourism and recreation specialists. Research into the need in tourism and recreation specialists. Creation of a system of training of tourism and recreation business specialists of various levels. Continuous training and improvement of professional skills of the employees of counties, local authorities, educational institutions. Publication of monographs, textbooks, teaching aids on the issues of tourism and recreation, the support of internships.
FINAL CONCLUSIONS
The present Long Term Development Strategy of the State shall lay down the guidelines for the economic, social, environmental protection and other policies of Lithuania until the year 2015. The Strategy is in line with the provisions and strategic goals set out in the Presidency Conclusions of the Lisbon European Council. Our goal is a stable and sustainable development. In future, the Long Term Development Strategy of the State will apparently undergo some revisions because in its present form it sets out only fundamental development guidelines for Lithuania during the period when it is about to become a full member of the European Union.
This strategic document lists our major objectives – integration into the Schengen are, the European Economic and Monetary Union and the European social model; it also provides for creating preconditions for effective work at the European Union institutions order when dealing with the issues of the single market. This strategy makes it possible for Lithuania to safeguard and consolidate independence of the state, its distinct character in the multilingual and multicultural European Union. The Long Term Development Strategy of the State, which may be viewed as a body of decisions defining the long term key objectives for the development of the country and the key steps and measures the government has to take to reach these objectives, will always be target oriented. We live in a changing world, therefore the strategy will be revised in response to life challenges.
Strategic management of the country may be viewed as an on-going function of strategic analysis, formulation of strategy and its implementation performed by the state, providing for a timely adjustment to the changes, both positive and negative, of the domestic and external/international situation, further developing and making the best use of the country’s economic potential.
The implementation of the Long Term Development Strategy of the State will call for a revision of the adopted strategies and programmes, taking account of the Presidency Conclusions of the Lisbon European Council, designing of new co-ordinated conceptions and programmes for the realisation of the new Strategy. These conceptions and programmes are an integral extension of the Strategy, supplementing it and assisting in its organisation and implementation. Each conception or a programme will be linked to the implementation of one or several strategic objectives; the entirety of the conceptions and programmes must ensure the implementation of the whole set of the strategic objectives. The programmes will further specify and detail the fundamental strategic objectives taking account of the character of one or another sector.
The economic basis for the Strategy will be provided by financial resources and the system of distribution of the financial resources controlled by the state. The course of the implementation of the strategy will be monitored and controlled. Under the new strategy, the structure of state administration will have to be reformed. This will determine the contents of the implementation of the strategy, its organisational forms and methods.