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Volume 2 0821343270

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Abstract:

Lithuania could now consolidate and complete the achievements of its first structural adjustment effort, create an environment that will allow private entrepreneurs to thrive and - within five years - become both the fastest-growing economy in the region and a sought-after, successful partner in Europe. In other words, Lithuania does not have an immediate development problem -- it has a unique development opportunity. This report explores the avenues that will allow Lithuania to make the most of this opportunity. It is composed of two volumes. Volume I distills findings and conclusions and builds a Policy Action Plan for fast,. stable growth. Volume II contains a collection of twelve policy notes that provide the technical analysis behind the plan. While the Notes are sector specific in nature, they are dominated by two overarching objectives: the elimination of the remaining structural sources of macroeconomic imbalance, and the rapid shifting of boundaries between the private and the public sectors -- both in production and in investment and saving -- as means to instill efficiency and to move the country to a higher long-term growth plateau. Achieving these two objectives will directly facilitate reaching a third goal, one of critical importance for Lithuania: accession to the EU.

Keywords: Agriculture; Banking; Economic policy; Energy sector; Entrepreneurs; Foreign investment; Growth policy; Pension reform; Private sector; Privatization; Public sector deficit; Tax administration

Publication date: August 1, 1998

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