Economy and Government

In the 1990s, Lithuania benefited from its adherence to strict fiscal and monetary policies, as it followed a program of privatization and increased foreign investment. Dairy farming and stock raising are carried on extensively, and grains, potatoes, sugar beets, flax, and vegetables are grown. Primarily agricultural before 1940, Lithuania has since developed considerable industry, including food processing, shipbuilding, petroleum refining, and the manufacture of machinery and machine tools, metal products, major appliances, electronic components, motors, textiles, and electrical equipment. Minerals, textiles and clothing, machinery, chemicals, wood and wood products, and foodstuffs are exported, while mineral products, machinery, transportation equipment, chemicals, clothing, and metals are imported. Russia, Germany, Poland, and Latvia are the main trading partners.

Lithuania is governed under the constitution of 1992. The president, who is the head of state, is elected by popular vote for a five-year term and is eligible for a second term. The prime minister, who is the head of government, is appointed by the president, as is the cabinet. The unicameral Parliament (Seimas) has 141 members; 71 are elected by popular vote and 70 by proportional representation, all for four-year terms. Administratively, the country is divided into 10 counties.

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2007, Columbia University Press. All rights reserved.

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