COUNTRY PROFILE. Country Background

Transcription

1 COUNTRY PROFILE Country Background Landscape and Climate Lithuania is the largest of three Baltic States, the other two being Latvia and Estonia. The territory of Lithuania (65,300 sq. km) is larger than that of Belgium, Denmark, the Netherlands, or Switzerland. 70% of Lithuania s territory is arable land and 27.6% is forest. The countryside consists of lowland plains and hilly uplands. More than 2,800 lakes occupy 1.5% of the country and 722 rivers run through the region. Lithuania also has 99 km of Baltic Sea coastline used for recreation and nature preservation. The climate is midway between maritime and continental. The average daytime temperature in January is C (23 F), in July C (63 F). The growing season varies between 169 and 202 days. Major cities include: Vilnius (542,297 inhabitants); Kaunas (378,943); Klaipėda (192,954; Šiauliai (133,833); and Panevėžys (119,949). Population and Language The population of the country is 3.5 million. 67.2% live in urban areas and 32.8% in rural areas. Population density is 53.5 people per square km. The population s ethnic composition is: 83.5% Lithuanians; 6.3% Russians; 6.7% Poles; 3.5% people of other nationalities (Byelorussia s, Ukrainians, Latvians etc.). The official state language is Lithuanian which is derived from Sanskrit and belongs to the Baltic family of Indo-European languages. Recent History 11 March 1990 Lithuania re-establishes independence. 17 September 1991 Lithuania is admitted into the United Nations. 14 February 1993 Algirdas Brazauskas becomes the country s first freely elected President. 31 August 1993 Last Russian troops leave Lithuania. 4 January 1994 Lithuania becomes the first Baltic State to apply for NATO membership. 12 June 1995 Lithuania signs a Europe [Association] Agreement with EU. October-November 1996 Parliamentary elections result in a pro-business governing coalition comprised of the Conservative and Christian Democratic parties. 4 January 1998 Valdas Adamkus, a former high-level U.S. Environmental Protection Agency official, is elected President. 1 February 1998 Lithuania becomes an Associate Member of the EU.

2 December 1999 Lithuania is invited to start negotiations for joining the EU. October 2000 Parliamentary elections, after which a new government is formed by the new policy coalition consisting of Liberals and Social-liberals. July 2001 A shift to the left a new coalition of social democrats and social liberals forms a new government. Currency Lithuania s local currency is the Litas (LTL), equal to 100 Lithuanian cents. On 2 February, 2002 Lithuania re-pegged the Litas to the Euro at the rate of LTL/EUR, thus ending the Litas-US dollar peg, which lasted for almost 8 years. The Litas will remain in circulation for a few more years with a view to replacing it by the Euro in Official State Holidays 1 January (New Year s Day); 16 February (Lithuania s Independence Day); 11 March (Restoration of the Lithuanian State); Easter (Sunday and Monday); 1 May (Labour Day); First Sunday in May (Mother s Day); 6 July (Coronation of King Mindaugas); 15 August (St. Mary s Ascension Day); 1 November (All Saints Day); and December (Christmas). Political System The Republic of Lithuania is an independent democratic state. The foundation of the social system is enforced by the Constitution of the Republic of Lithuania adopted in 1992 by referendum which also establishes the rights, freedoms, and duties of citizens. Under that law, sovereign state power is vested in the people of Lithuania and is exercised by the Seimas (Parliament), the President of the Republic, the Government, and the Courts. Lithuania was able to grant full citizenship rights to all ethnic groups in Lithuania soon after the restoration of its independence. This initial effort by the Government to involve all Lithuanian citizens in the political process has contributed to the stable political and ethnic environment. The Seimas is a one-chamber parliament which: considers and enacts amendments to the Constitution; passes laws; adopts resolutions for the organisation of referenda; announces presidential elections; forms state institutions provided for by law; appoints and dismisses their chief officers; approves or rejects the candidature of the Prime Minister proposed by the President of the Republic of Lithuania; considers and approves the Government program submitted by the Prime Minister; establishes or abolishes Ministries upon the recommendation of the Government; appoints judges to and the Chairperson of the Constitutional Court; appoints and dismisses the State Controller as well as the Chairperson of the Bank of Lithuania; announces local government elections; approves the state budget and supervises its implementation; approves state taxes and

3 other obligatory payments; ratifies international treaties to which the Republic of Lithuania is a party; and considers other issues of foreign policy. The Seimas consists of 141 MPs who are elected for a four-year term. The Seimas elects its Speaker and Deputy Speakers. The President is the head of state and performs all duties that he or she is charged with by the Constitution and the law. The citizens of the Republic of Lithuania elect the President of the Republic of Lithuania on the basis of universal, equal and direct suffrage by secret ballot for a fiveyear term. In January 1998, Lithuania again made history by being the first European country to elect an American citizen as its president. Mr. Valdas Adamkus, a Lithuanian-born former highranking U.S. Environmental Protection Agency official who had lived in the United States for almost 40 years and advised two U.S. presidents, won a narrow election victory and renounced his U.S. citizenship before being inaugurated. He emphatically reiterated Lithuania s two main foreign policy goals: NATO and EU membership. The Government is the highest authority of executive power. It is comprised of the Prime Minister and the Cabinet of Ministers. The President of the Republic of Lithuania, with the approval of the Seimas, appoints the Prime Minister. Ministers are appointed by the President of the Republic on the nomination of the Prime Minister. Lithuania is divided into 10 regional administrative districts or counties, with county governors appointed by the cabinet of ministers. Labour Force Total population 3.5 million. Rural 32.8% Urban 67.2% Labour force 1.7 million, over two-thirds employed in the private sector. Employee skills 20.3% with university degrees, 24.4% with specialised education (i.e. technical certificates). Source: Lithuanian Department of Statistics

4 Lithuania boast high-skilled, very efficient and competitive workforce. Most major foreign investors cite the high quality and productivity of the workforce as one of the main reasons for investing in Lithuania, according to an LDA survey conducted in February Investors rate worker skill and productivity very highly: I found that working force is first of all very ambitious, very loyal and have a very good knowledge about the situation.most of them are very self-going, take initiatives and are very resultoriented. They are nice people and we are happy to have a lot of females in key positions, which is nice. (Bertil Larsson, Chairman of Board of ILSANTA, a Lithuanian-Icelandic-Swedish pharmaceutical company). Wages Lithuania s labour costs are one of the lowest in Central and Eastern Europe. As of January 2002, the minimum monthly salary was LTL 430 (USD ). The average gross monthly wage in 2001 was LTL 1,128.4 (USD 282.1). Labour Unions Trade unions exist in Lithuania, but are not very active. Since all trade unions were associated with the former Soviet government, many disbanded after independence was restored. It is estimated that less than 10% of workers belong to some form of workers organisation. Lithuanian citizens and persons without Lithuanian citizenship, but permanently living in Lithuania and working under employment contracts, have the right to enter into trade unions, but it is not obligatory. Since the reestablishment of independence, Lithuanian unions have been pragmatic. Little or no labour unrest has been reported. Either with or without labour unions, employers must follow current legislation of the Republic of Lithuania which governs all social security issues, including minimum wages and obligatory social insurance by the employer etc. Education Lithuania has one of the best-educated workforces in Central and Eastern Europe. According to the Lithuanian Department of Statistics, its proportion of graduates is one of the highest, with 4.03 university graduates a year per 1,000 inhabitants. All five major cities in Lithuania now have their own universities. University graduates 2001 Fields of Specialisation Total number of graduates 18,512.

5 29% 23% 5% 3% 7% 12% Social Sciences, Business and Law Teacher Training and Education Sciences Engineering, Manufacturing and Construction Humanities and Arts Science, Mathematics and Computing Health and Welfare Other 21% Most education institutions are run by the state though several private gymnasiums, lycees and other education institutions (including private business schools) have recently been established. At present there are 22 institutions of higher education with a total enrolment of 117,290 students. Source: Lithuanian Department of Statistics. Elementary, Primary and Secondary Education The current system of secondary education is comprised of: elementary school (grades 1 to 4); primary school (grades 5 to 9); general education secondary school (grades 1 to 12), including 4 years of gymnasium which provides more intensive education in humanities or sciences in grades 9 to 12; special education institutions for children with special needs; youth schools which provide basic education; adult education institutions (centres, adult education divisions in schools of general education); and programs of secondary education in a number of colleges. At the beginning of the school year, there were 2,159 schools of general education, attended by a total of 576,377 pupils. Compulsory education lasts until the age of 16. Since 1991, all teaching materials used in elementary and secondary education have been replaced according to the new social, economic and political conditions, as well as the aspirations of Lithuanian society. General secondary education is gradually being specialised. The two main specialisations are the humanities and sciences. Vocational Training Vocational training is provided by vocational and trade schools.

6 There were 84 vocational schools in the school year, 82 of which were run by the Ministry of Education. 47,000 pupils attended vocational schools in The duration of study varies between two and four years. Students who have reached the age of 14 are admitted to vocational schools. Studies in vocational schools take place on 4 levels, which gives pupils the opportunity to choose a program according to their present education and to acquire secondary education. One of the most important tasks of professional education reform is the expansion of the curriculum. Narrow specialisation is being rejected and replaced with a wider scope of training. Many vocational schools have ties to places of employment and offer pupils study programs which are prepared according to changes in the labour market. In 1991, special secondary schools were abolished and replaced by specialised colleges. College programs are designed for individuals who already have secondary education. Studies last 3-4 years. Colleges prepare specialists for all branches of the Lithuanian economy and culture. Adult Education Adult education can be formal or informal. Formal education applies to studies at state or other licensed institutions which offer a regulated and controlled education. Diplomas or certificates from these institutions are recognised by the state. Certificates from informal institutions are recognised by employers, various organisations, and unions. Presently there are 300 informal education and training institutions in Lithuania. Most of them are private and accept pupils of all ages. There are 4 adult education information centers in Lithuania which provide information about education programs and qualification improvement courses for adult education instructors. Higher Education Currently there are 22 state institutions of higher education in Lithuania: 15 state universities and 7 state colleges as well as 4 private universities and 9 private colleges. Higher education can be pursued by individuals with a secondary school graduation certificate or an equivalent document. Approximately 10,000 secondary school graduates, or 40%, are accepted by institutions of higher education each year. The Lithuanian Seimas (Parliament) approves all funds for academies and higher education institutions.

7 Research and higher education reforms are targeted toward the international recognition of the programs of Lithuanian higher education institutions and activities of research institutes, for that study programs, degrees, and academic titles to be recognised abroad, especially in the countries of the European Union. In 1994, Lithuania signed the UNESCO Convention on the Recognition of Courses, Diplomas and Degrees in the European region. In reforming higher education and modernising study programs, many higher education institutions are successfully participating in the European Commission s TEMPUS program. Preparatory work has already begun to join the European Union s comprehensive education, higher study and research programs LEONARDO and SOCRATES Lithuania s Infrastructure The European Union has recognised Lithuania as the prime transport centre in the region linking the EU with the East. The EU s transportation commission designated two international transport corridors running through Lithuania among ten priority transport corridors in Europe. Both North- South road and rail routes connecting Scandinavia with Central Europe, and East-West routes linking the huge Eastern markets with the rest of Europe, cross through Lithuania. Lithuania has one of the best infrastructures in Central and Eastern Europe. A network of European standard 4 lane highways link major industrial centres. The port of Klaipėda, one of the few ice-free ports on the Eastern Baltic, has received EBRD and European Investment Bank funding for a USD 200 million expansion. Lithuania has 3 international airports. Beside Lithuanian Airlines and Air Lithuania, 10 other international airlines provide service to and from Lithuania and worldwide connections. Zokniai airport near Šiauliai is one of the largest cargo airports in Europe. Port of Klaipėda Expanding to Meet Growing Cargo Flows The port of Klaipėda has been designated the EU s regional priority port the only port in the region to receive funding from the EBRD and the European Investment Bank to finance major expansion projects. The port has steadily increased cargo handling over the past three years from 14 to over 17 million tons and handles 20% of the cargo passing through all the Eastern Baltic ports. After current upgrades are completed, the capacity of the port will grow to 40 million tons annually.

8 Cargo Turnover in Klaipėda Seaport (thous. tonnes) Loaded Unloaded Source: Klaipėda State Seaport There are regular cargo-ferry lines including rail and Ro-Ro ships between Klaipėda and Flesenberg, Mukran and Kiel (Germany), Ahus and Kalrshamn (Sweden), Aabenraa and Fredericia (Denmark). Prime Air Travel and Cargo Services Vilnius International Airport, the most modern in the Baltics, is located just minutes outside the city centre. Lithuania has 2 national airlines: the soon to be privatised Lithuanian Airlines and Air Lithuania. Main destinations include most major cities in Eastern and Western Europe as well as some direct destinations in the Middle East. Lithuania s other passenger airports are located in the cities of Kaunas and Palanga. Kaunas airport is the busiest cargo airport in Lithuania handling 2/3 of the country s air cargo. The former military airbase at Šiauliai has gone through a major modernisation implemented by Philips of the Netherlands. The airport is the only one in the Baltics able to handle the largest cargo planes without any restrictions. Modern Rail and Road System Lithuanian shippers have taken advantage of the country s modern rail and road system resulting in total transport flows that are among the busiest in the region. Since 1994, the average traffic density on Lithuanian roads has increased by 15-20% per year. Lithuanian freight operators have increased their international shipments almost 16-fold from 1993 to In 2001 it made 45 million tons.

9 Between 1995 and the end of 2001, traffic on Lithuanian railways went up by 12.3% (up from 26 to 29.2 million tons). 51.9% of traffic is made up by transit cargo. Communications Market The main telecommunications firm is the Lithuanian Telecom, with 1,200,000 subscribers. It has been privatised through an acquisition of 60% of shares by Amber Teleholdings, a Swedish/Finnish consortium. A number of companies provide mobile communication services throughout the country. Founded in 1991 Omnitel (now controlled by Sweden s Telia and Finland s Sonera) is the biggest mobile communications company in Lithuania and in the Baltic states, controlling 60% of the Lithuanian market. Bitė GSM (founded in 1995 and now owned by the TDC group) is the second biggest mobile communications operator in Lithuania with 218,000 subscribers. Tele2 - the third mobile operator, founded in 1999 by the Swedish corporation Tele2 AB, is rapidly gaining ground. Now about 80% of Lithuanian residents may access its services. The mobile communications market in Lithuania is growing fast. At the start of 1996, there were only about 15,000 total mobile phone users in the country. By the end of 2001, the figure had grown to 980,000. There are a number of Internet providers servicing a rapidly growing Internet and market.