

Lithuania flag is three equal horizontal bands of yellow (top), green, and red. 2003.


Republic of Lithuania

Terrain: Lithuania's fertile, central lowland plains are separated by hilly uplands created by glacial drift. A total of 758 rivers, many are navigable, and 2,833 lakes cover the landscape. The coastline is 90 km. (56 mi.) long. Land use--53% arable land, 30% forest and woodland, 4% water, 13% other.
Climate: With four distinct seasons, the climate is humid continental, with a moderating maritime influence from the Baltic Sea. January temperatures average -5oC (23oF); July, 17oC (63oF). Annual precipitation averages 62 centimeters (24.4 in.).

Nationality: Noun and adjective--Lithuanian(s).
Population: 3.476 million.
Ethnic groups: Lithuanian 83.5%, Poles 6.7%, Russians 6.3%, Belarusians 1.2%, Ukrainians 0.7% Jews 0.1% others 1.5%.
Language: Lithuanian. A minority speaks Russian and Polish.

Type: Parliamentary democracy.
Branches: Executive--popularly elected president (chief of state); prime minister (head of government). Legislative--Seimas (parliament--141 members, 4-year term). Judicial--Constitutional Court, Supreme Court, and Highest Administrative Court.
Administrative regions: 10 counties and 60 municipalities.
Suffrage: 18 years, universal.
General government budget (2002): $4.8 billion (exchange rate at the end of 2002--3.4 Lt=$1).

GDP (2002): $14.9 billion.
Annual 2002 GDP growth: 6.7%.
GDP per capita: $4,296.
Deflation (2002): 1%.
Unemployment (2002): 10.9%.
Major sectors of the economy: Manufacturing 19.4%, wholesale and retail trade 18%, transport and storage 9.2%.
Trade: Exports--$5.9 billion: mineral products 19.0%, textiles and textile articles 15.0%; agricultural and food products 10.8%; transport equipment 15.9%; machinery and mechanical appliances 9.9%; wood and paper products 6.7%. Major export partners--Great Britain 13.5%, Russia 12.1%, Germany 12.1%, Latvia 9.6%, Poland 3.6%. Imports--$8.3 billion: intermediate goods 55.9%, investment goods 18.6%, final consumption goods 17.5%, passenger cars 7.2%. Major partners--Russia 20.2%, Germany 19%, Poland 6.4%, Denmark 4%.





Enduring several border changes, Soviet deportations, a massacre of its Jewish population, and German and Polish repatriations during and after WWII, Lithuania has maintained a fairly stable percentage of ethnic Lithuanians (from 79.3% in 1959 to 83.5% in 2002). Lithuania's citizenship law and constitution meet international and OSCE [Organization for Security and Cooperation in Europe] standards, guaranteeing universal human and civil rights.













On June 14, 1940, the Soviet Government issued an ultimatum to Lithuania, demanding the formation of a new Lithuanian government and permission to station additional Red Army troops. Lithuania succumbed to the Soviet demand, and 100,000 Soviet troops moved into the country the next day. Arriving in Kaunas, the Soviet Government's special envoy began implementing the plan for Lithuania's incorporation into the U.S.S.R. On June 17 the alleged people's government, headed by J. Paleckis, was formed. Rump parliamentary elections were held a month later, and Lithuania was proclaimed a Soviet Socialist Republic on August 3. Totalitarian rule was established, Sovietization of the economy and culture began, and Lithuanian state employees and public figures were arrested and exiled to Russia. During the mass deportation campaign of June 14-18, 1941, about 7,439 families (12,600 people) were deported to Siberia without investigation or trial; 3,600 people were imprisoned, and more than 1,000 massacred.





During the August 19 coup against Gorbachev, Soviet military troops took over several communications and other government facilities in Vilnius and other cities but returned to their barracks when the coup failed. The Lithuanian Government banned the Communist Party and ordered confiscation of its property.


Lithuania is a multi-party, parliamentary democracy. The president, who is elected directly for 5 years, is head of state and commander in chief overseeing foreign and security policy. The president nominates the prime minister and his cabinet and a number of other top civil servants.


Since 1991, Lithuanian voters have shifted from right to left and back again, swinging between the Conservatives, led by Vytautas Landsbergis (now headed by Andrius Kubilius), and the Labor (former communist) Party, led by former president Algirdas Brazauskas. This pattern was broken in the October 2000 elections when the Liberal Union and New Union parties won the most votes and were able to form a centrist ruling coalition with minor partners. Former President Adamkus played a key role in bringing the new centrist parties together. The leader of the center-left New Union (also known as the Social Liberal party), Arturas Paulauskas, became the Chairman of the Seimas. The then-government of liberal Rolandas Paksas got off to a rocky start and collapsed within 7 months. In July 2001, the center-left New Union Party forged an alliance with the left-wing Social Democratic Party and formed a new cabinet under former President Algirdas Brazauskas. The cabinet of Algirdas Brazauskas is made up mostly of non-party technocrats and has emphasized the need for financial discipline.

In January 2003, former Prime Minister and Liberal Union Party leader Rolandas Paksas defeated incumbent president Valdas Adamkus in a runoff presidential election. In December 2003, an ad hoc parliamentary commission found that President Paksas' vulnerability to influence constituted a threat to national security. On April 7, 2004, parliament removed President Paksas from office. Parliamentary Speaker Arturas Paulauskas became acting President.

Lithuania officially became a member of the North Atlantic Treaty Organization on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC. Lithuania joined the European Union on May 1, 2004.

Principal Government Officials
President--Arturas Paulauskas, Acting
Prime Minister--Algirdas Brazauskas
Foreign Affairs--Antanas Valionis
Defense--Linas Linkevicius
Interior--Virgilijus Bulovas
Justice--Vytautas Markevicius
Finance--Dalia Grybauskaite
Economics--Petras Cesna
Transportation--Zigmantas Balcytis
Agriculture--Jeronimas Kraujelis
Education and Science--Algirdas Monkevicius
Health--Juozas Olekas
Social Security and Labor--Vilija Blinkeviciute
Culture--Roma Zakaitiene
Environment--Arunas Kundrotas
Seimas Chairman--Ceslovas Jursenas, Acting

Lithuania maintains an embassy in the United States at 2622 - 16th Street, Washington DC, 20009, tel: (202) 234-5860.


The transportation infrastructure inherited from the Soviet period is adequate and has been generally well maintained since independence. Lithuania has one ice-free seaport with ferry services to German, Swedish, and Danish ports. There are operating commercial airports with scheduled international services at Vilnius, Kaunas, and Klaipeda. The road system is good. Border facilities at checkpoints with Poland were significantly improved by using EU funds, but long waits are still a frequent phenomenon. Telecommunications have improved greatly since independence as a result of heavy investment. The Telecom company had a monopoly on the market until the end of 2002, but now there are a number of cell phone companies to provide competition.


The last couple of years have been good for the Lithuanian economy. The 6.7% growth in GDP in 2002 went beyond even the most optimistic expectations, despite the slower developments in the neighboring markets after the September 11th terrorist attacks in New York and Washington, DC. The growth in Lithuania was mainly driven by private consumption and exports. The contribution of domestic market oriented sectors, especially construction, also was increasing. Growth was strongest in construction, financial intermediation, and processing and light industries. Inflation was low, the growth of the external account deficit stabilized, and the state finances improved noticeably with a fiscal deficit of 1.2% of GDP in 2002. In fact, GDP grew at 9.4% in the first quarter of 2003. Progress has been achieved in the areas of privatization and deregulation. Weaknesses remain in public policy development and structural and agricultural reforms.

The privatization of major state enterprises is expected to be completed in the next couple of years. Currently, 75% of the economy is in private hands. The share of employees in the private sector rose to about 70%. Recently, the Government of Lithuania completed banking sector privatization, with 89% of this sector controlled by foreign capital. The privatization of the national gas and power companies "Lietuvos Dujos" (Lithuanian Gas) and "Lietuvos Energija" (Lithuanian Energy) also is underway. However, the privatization of "Lithuanian Railways" has been postponed.

Inflationary pressures continue to be low. Annual deflation in 2002 stood at 1.0%. The deflation has been the result of sharp competition among retail trade chains and appreciation of the local currency against the U.S. dollar.

The minimum wage has not changed since June 1998 and stands at $107.50 per month, well below the poverty threshold. The average wage stands at $336.8 per month.

Exports to the United States make up 3.6% of all Lithuania's exports, and imports from the United States comprise 1.4% of total imports to Lithuania. Foreign direct investment in Lithuania reached $3.9 billion at the end of 2002, which represented an increase of 24% compared to the previous year.

As of the end of 2002, the United States was the fifth-largest investor (8.7%) in Lithuania, behind Denmark, Sweden, Estonia, and Germany. In 2002, the current account deficit stood at 4.8% of GDP. More than 100% of it was financed by foreign direct investment.

On February 2, 2002, the government repegged the Litas from the U.S. dollar to the Euro at the rate of 3.4528 Litas for 1 Euro. The repeg, which went on smoothly, reflects a change in trade orientation and is to help Lithuania prepare for European Monetary Union. With the appreciation of local currency against the U.S. dollar, production costs to enterprises have been decreasing, but the higher exchange rate is not favorable to exports.


The 600-man navy uses patrol boats and former Russian corvettes for coastal surveillance; the 800-man air force operates 10 helicopters and 17 planes used mostly for reconnaissance and border patrol. A mandatory 1-year conscription and alternative service is available for conscientious objectors. Over the next decade Lithuania's military will undergo a transformation, cutting its active reserve to 5,000 and number of conscripts to 2000. With its security guaranteed through NATO, Lithuania is creating a military that focuses more on contributing to international operations, rather than territorial defense. Its military has participated in 11 international operations, including Afghanistan and Iraq.



Lithuania maintains foreign diplomatic missions in 94 countries on six continents and consular posts in two countries that are not represented by an embassy. Lithuania's liberal "zero-option" citizenship law has substantially erased tensions with its neighbors. Its suspension of two strongly ethnic Polish district councils on charges of blocking reform or disloyalty during the August 1991 coup had cooled relations with Poland, but bilateral cooperation markedly increased with the holding of elections in those districts and the signing of a bilateral friendship treaty in 1994. Relations with Poland are now among the closest enjoyed by Lithuania. Although a similar bilateral friendship agreement was signed with Belarus in 1995, Lithuania has joined the United States and other European nations in urging the Government of Belarus to adopt democratic and economic reforms.

The United States established diplomatic relations with Lithuania on July 28, 1922. The Soviet invasion forced the closure of the Legation to Lithuania on September 5, 1940, but Lithuanian representation in the United States continued uninterrupted. The United States never recognized the forcible incorporation of Lithuania into the U.S.S.R. and views the present Government of Lithuania as a legal continuation of the interwar republic. Lithuania has enjoyed most-favored-nation treatment with the United States since December 1991. Since 1992, the United States has committed more than $100 million to Lithuania's economic and political transformation and to address humanitarian needs. The United States and Lithuania signed an agreement on bilateral trade and intellectual property protection in 1994--a bilateral investment treaty in 1997, and in 1998, the United States signed a "Charter of Partnership" with Lithuania and the other Baltic countries. Under this partnership, bilateral working groups focusing on improving regional security, defense, and economic issues were established.

Principal U.S. Officials
Ambassador--Stephen Mull
Deputy Chief of Mission--William Davnie
Political/Economic Officer--Nancy Cohen
Public Affairs Officer--Anthony Pahigian
Defense Attach�--LTC Larry Beisel (USA)
Management Officer--John Gieseke
Consular Officer--Ruta Elvikis



[This is a mobile copy of Lithuania (05/04)]