World Bank Group - Lithuania: An Opportunity for Economic Success : Main Report (World Bank Country Study)

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title	:	Lithuania : An Opportunity for Economic Success World Bank Country Study
author	:
publisher	:	World Bank
isbn10 | asin	:	0821342444
print isbn13	:	9780821342442
ebook isbn13	:	9780585183176
language	:	English
subject	Lithuania--Economic policy--1991- , Lithuania--Economic conditions--1991-
publication date	:	1998
lcc	:	HC340.6.L565 1998eb
ddc	:	338.94793
subject	:	Lithuania--Economic policy--1991- , Lithuania--Economic conditions--1991-

Page i Lithuania An Opportunity for Economic Success Volume 1: Main Report A WORLD BANK COUNTRY STUDY

Page ii Copyright1998 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing August 1998 World Bank Country Studies are among the many reports originally prepared for internal use as part of the continuing analysis by the Bank of the economic and related conditions of its developing member countries and of its dialogues with the governments. Some of the reports are published in this series with the least possible delay for the use of governments and the academic, business and financial, and development communities. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910,222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A. The cover illustration is The Mechanism (1996) by Klaudijus Petrulis, reproduced courtesy of the artist and Regimantas Photograph by Rimantas Ivoska. ISSN: 0253-2123 Library of Congress Cataloging-in-Publication Data Lithuania: an opportunity for economic success. p. cm. (A World Bank country study) Contents: v. 1. Main report v. 2. Analytical background. ISBN 0-8213-4244-4 (v. 1). ISBN 0-8213-4327-0 (v. 2) 1. LithuaniaEconomic policy1991- 2. LithuaniaEconomic conditions1991 I. World Bank. II. Series. HC340.6.L565 1998 338.94793DC21 98-23755 CIP

Page iii Contents Preface v Abstract vii Abbreviations and Acronyms ix Background and Rationale 1 The Main Remaining Sources of Quasi-Public-Sector Deficit 2 Key Impediments to a Private-Sector-Led Increase in Efficiency and Growth 7 A Policy Action Plan for Sustainable, Rapid Growth 13 The Lithuanian Economy over the Coming Decade, with and without Major Reform 18 Table 1. A Policy Action Plan for Lithuania: Short-Term Priorities 21 Table 2. A Policy Action Plan for Lithuania: Medium-Term Priorities 34 Table 3. A Policy Action Plan for Lithuania: Long-Term Priorities 38

Page v Preface This report has been prepared by a World Bank team composed of Marcelo Giugale (team leader), Dana Cook (banking), Peter Kelly (energy), Jorge Martinez (municipal finance), William Meyers (agriculture), James Welch (privatization), Barbara Lee (infrastructure privatization), Peter Modeen (corporate governance, commercial judicial systems, private investors' perceptions), Ken Messere (tax administration), David Lindeman (pensions), Christopher Bender (pensions), Robert Pardy (securities markets), John Dawson (flow of funds), and Zhicheng Li (macro projections). Valuable inputs and guidance were received from the following sector specialists at the Bank's Eastern Europe and Central Asia Vice-Presidency: Rodrigo Chaves, Csaba Csaki, Alexander Fleming, Louise Fox, Kristin Gilbertson, Philip Goldman, Marc Heitner, John Holsen, Vilija Kostelnikiene, Mantas Nocius, and Yoshine Uchimura. Useful comments from Ardo Hansson, Robert Holzmann, Dominique Lallement, Laszlo Lovei, Melinda Roth-Alexandrowicz, and Helen Sutch are gratefully acknowledged. Waleed Malik, Gary Stuggins, Samuel Talley, and Dimittri Vittas were the peer reviewers. Dagney Faulk and Midori Makino provided research assistance.

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