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, flax, sugar beets, potatoes, and vegetables are grown. Primarily agricultural before 1940, Lithuania has since developed considerable industry, including food processing, shipbuilding, and the manufacture of machinery and machine tools, metal products, major appliances, electronic components, motors, textiles, and electrical equipment. Lithuania is a member of the European Union; Russia, Germany, Latvia, and Poland are the main trading partners.

Lithuania has a 141-member unicameral parliament (the Seimas), whose members are elected to four-year terms. Under a constitution adopted in 1992, the president, who is the head of state, is elected by popular vote for a five-year term and, with parliamentary approval, appoints a prime minister. A cabinet is appointed by the president on the nomination of the premier. The country is divided into 44 regions and 11 municipalities.

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

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