The Ministry of Economy: a State Body that Creates a Favourable Legal and Economic Environment for Business Development and Econimic Growth

The Ministry of Economy, a government body responsible for a favourable legal and economic environment for business development and stable growth is involved in performing the following actions:

•  implementation of general economic (macro-economic) policy;

•  under its terms of reference, shaping and implementing economic sector policy;

•  regulation of the activity of economic entities and management of property owned by the state;

•  under its terms of reference, shaping and implementing foreign economic policy.

While implementing the general economic (macro-economic) policy, the Ministry of Economy develops draft legislation and regulations within its competence, submits proposals concerning the priorities and goals of Lithuanian economic development, makes a regular analysis of the state of the Lithuanian economy and trends of development, submits proposals to the National Regional Development Council concerning regional policy development, and submits proposals to the Lithuanian Government on improvement of the privatisation process.

While shaping and implementing the policy for economic sectors, the Ministry of Economy, via the programmes it supervises, promotes education of managers working in energy, industry, business and trade sectors in such areas of innovations, scientific research, technology, information and management. It also contributes to the development of the information society and the common European area of scientific research. The Ministry is shaping a national policy of quality, encouraging the production of competitive goods. While implementing its programmes, it creates conditions for Lithuanian industries to apply and develop new technologies. The Ministry develops and implements the National Waste Management Programme and monitors the operation of the State Non Food Products Inspectorate under the Ministry with regard to the supply of chemical materials and products to the market in compliance with the procedure established by Lithuanian and other relevant legislation. Moreover, the Ministry performs other functions tasked by civil safety services in the event of natural disasters and other emergencies. It also develops and implements the policy of internal trade and the overall provision of services; performs the functions of tourism and resort development in the country; develops and submits proposals to the Government concerning the implementation of projects for tourism development and infrastructure-building in recreation areas and resorts. In addition, the Ministry is involved in drafting and implementing state policy measures for the development of small and medium-sized business. The Ministry it regularly updates the National Energy Strategy and ensures its implementation. It is responsible for the implementation of the state policy in the area of nuclear energy, organises restructuring of electricity and gas sectors and is involved in developing the National Heat Sector Development Plan.

While managing state property and regulating enterprise economic activity, the Ministry summarises the practice of applying legislation regulating the operation of enterprises, develops draft legislation on the establishment, operation, restructuring and winding up of enterprises, controls the use of state property entrusted to the ministry and co-ordinates and controls the composition of state reserve. In addition, the Ministry ensures implementation of the functions by the bodies accountable to the Ministry, including the Department of Enterprise Bankruptcy Management, the State Department of Tourism, the State Non Food Products Inspectorate and the State Energy Inspectorate. Tasked by the Government, the Ministry carries out the functions of the founder of state enterprises, agencies and other bodies that belong to the Ministry.

While shaping and implementing foreign economic policy, the Ministry of Economy, within its terms of reference, analyses the compliance of the respective Lithuanian legislation with the EU law. Together with the Ministry of Foreign affairs, it shapes foreign trade policy; co-ordinates implementation of the strategy of export development and promotion; develops drafts for customs tariffs; co-ordinates implementation of the control system of import, transit and export of strategic goods and technologies. Moreover, armed with legislative measures the Ministry protects the domestic market from import dumping and ensures co-operation with the economic units of diplomatic representations of the Republic of Lithuania .

The Ministry of Economy is actively involved in developing and implementing the National Anti-Corruption Programme of the Republic of Lithuania (adopted by Seimas Resolution No. IX-711 of 17 January 2002 ). The sector anti-corruption programme was approved by order of the Minister. The main objective of the programme is to eliminate the reasons for corruption to occur and expand, and to pursue anti-corruption activities by taking effective measures of corruption prevention. To implement the sector anti-corruption programme, a working group was established headed by the State Secretary of the Ministry. The working group is responsible for the implementation and improvement of the programme. More specifically, it should supervise the compliance with the provisions provided for in the programme and regularly check and analyse their implementation. If needed, the working group will develop draft amendments to the programme, document and analyse information and contribute to the improvement of the corruption prevention system forestalling the expansion of corruption. At the end of 2003, the working group assessed the progress made and the total performance, reviewed the sector anti-corruption programme, and developed a draft action plan for 2004-05 for the Ministry and bodies falling under its supervision. The action plan was approved on 2 February 2004.