Shaping Policy for Lithuania's Economic Development and Implementation of Long-Term Strategy

The Ministry of Economy is shaping the policy for economic development via a special programme. The purpose of the programme is to lay down medium and long-term directions and measures of economic development, and to create the most favourable business conditions complying with EU law and practice. To achieve the goal, the Ministry of Economy set a task to implement the strategic priorities of separate activities, and create conditions for stable GDP growth in the country.

In 2002, the actual GDP increased by 6.8 per cent, and in 2003, it grew by 9 per cent. The major factor in the growth GDP is the increased volume of export goods and services, speedy investment recovery and the rapid growth of value added in several economic sectors (energy, construction, industry, trade, transport and communications).

Domestic demand increased, and the profits of economic entities went up. In 2003, company profit (before tax) accounted for more than 4 billion litas. As compared to the previous year, it augmented by 49 per cent, while in comparison with the year 2000, it soared 15 times. The interest rates of bank loans decreased. Currently, commercial banks give loans at a minimum interest rate of 3.9 per cent, while the average is over 5 per cent (Table 1).

Table 1

Rate of Changes of Gross Domestic Product and Profit

While aiming to perform the task, the Ministry carried out measures provided for in Government programmes (long-term, national, etc.) and measures laid down in other documents (Analysis of the Lithuanian Economy, Scientific Research of Economic Development, and Implementation of the Long-Term Strategy). Moreover, the Ministry co-ordinated and administered programme implementation, developed the key legislation on enterprise economy, trade, investment, customs, business restrictions, management and other issues.

Seimas Resolution No IX-1187 of 12 November 2002 , Concerning the Long-Term Development Strategy of the State, suggests that the Government should develop a strategic analysis and monitoring system, involve other state and scientific institutions in recording, at certain periods, results of implementation of the strategy and changes on the market. On 1 April 2003, pursuant to the Seimas Resolution, the Government adopted Resolution No 393, Concerning the Establishment of the Commission for Analysing and Monitoring the Implementation of the Long-Term Development Strategy of the State and Approving its Articles.

The purpose of the Commission is to supervise and co-ordinate implementation of the Long-Term Development Strategy of the State (see Fig. 1), with regard to the provisions of the Lisbon Strategy adopted during the Lisbon European Council. The Ministry of Economy plays the role of co-ordinator.

Figure 1

STRUCTURE OF THE LONG-TERM DEVELOPMENT STRATEGY OF THE STATE

The key tasks of the Commission are the following:

•  development of a system of analysing and monitoring the long-term development strategy of the state;

•  organising review of approved national strategies and programmes and, if necessary, initiating the development of new strategies and programmes to ensure implementation of the Long-Term Development Strategy of the State with regard to the provisions of the Lisbon Strategy.

On 2 June 2003 , the Commission for Analysing and Monitoring the Implementation of the Long-Term Development Strategy of the State had a meeting. During the meeting it issued a decision to establish three working groups. One group was to solve the issues related to the implementation of the Lisbon Strategy. The purpose of the second group was to assess national strategies, programmes and other strategic documents, as well as qualitative and quantitative indicators to measure the implementation of the Long-Term Development Strategy of the State. The focus of the third working group was the development of a list of analytical scientific research necessary for the implementation of the Long-Term Development Strategy of the State.

The Ministry is developing a computer information system which will be used in disseminating information on state development indicators to the President, Chairman of the Parliament, Prime Minister, ministers, line management, heads of ministerial units, analysts, interest groups, and the general public. Information showing the difference between the expected and the actual results will be submitted regularly. Plans are to have open discussions about issues of state development and ways to solve them.

The information system will contain all the national strategies, programmes and other documents related to the implementation and monitoring of the Long-Term Strategy of the State. All these documents will be publicly available. The system will also collect and register data on analysing and measuring the results of implementing the Long-Term Development Strategy of the State (for example, measurements of structural parameters, and findings of scientific research).

A dynamic internet-based information system (located at the Ministry's website at www.ukmin.lt ) will provide open access to the general public on monitoring results, enabling them to ask questions and receive answers about the implementation of the strategy.

The system will help to find solutions concerning the strategic issues of the state by resorting to public opinion as well as expert assistance.