Since renewed independence in 1991 and transition from a centrally planned to a market economy, Lithuania has substantially raised well-being of its citizens. Thanks to a market-friendly environment the country grew faster than most OECD countries over the past ten years. The financial system ...

Lithuania’s economy exited the COVID-19-crisis successfully and was growing fast until early 2022, buoyed by rising exports and rapid integration into global value chains. However, with Russia’s aggression of Ukraine continuing and its consequences spreading, the outlook has darkened.

Lithuania’s economy is performing strongly and converging fast towards the most-developed OECD countries, driven by growing exports and investments and supported by a sound macroeconomic framework as well as a friendly business climate. For the first time since renewed independence, more people are settling in the country than leaving it. The peak of the COVID-19 crisis was one of the mildest in Europe, thanks to a well-functioning health system, effective containment measures and a relatively short lockdown. Yet prosperity is unevenly distributed across people and places. Further reform could help sustain achievements to date. Providing adequate income support for the needy, especially the elderly, and high quality social services, while improving integration into the labour market, could help reduce poverty. Stronger local and regional institutions, better education and skills particularly in rural areas and a more flexible housing market could make regional development more balanced. Finally, strengthening the regulatory framework, reducing the scope of state-owned enterprises and moving towards a low-carbon economy will help raise productivity while ensuring resilient and sustainable growth. SPECIAL FEATURES: REDUCING POVERTY; FOSTERING REGIONAL DEVELOPMENT

This 2016 OECD Economic Survey of Lithuania examines recent economic developments, policies and prospects. The special chapters cover: Productivity convergence and Inclusive growth.

This report, OECD Skills Strategy Lithuania: Assessment and Recommendations, identifies opportunities and makes recommendations for Lithuania to better equip young people with skills for work and life, raise adults’ and enterprises’ participation in learning, use people’s skills more effectively in workplaces, and strengthen the governance of skills policies.

Taking the perspective of institutions and the system, Education Policy Outlook 2019: Working Together to Help Students Achieve their Potential, analyses the evolution of key education priorities and key education policies in 43 education systems. It compares more recent developments in education policy ecosystems (mainly between 2015 and 2019) with various education policies adopted between 2008 and 2014.

Transformations of Strategic Alliances in Emerging Markets: Volume I, deals with changes in strategic alliances in the complex settings of European emerging markets. It includes 40 years’ worth of data in its in-depth study of the changes in education, networks, work performance, and environmental factors in European transition region.

After years of crisis, the European economy is expanding robustly, and GDP growth is projected to remain strong in 2018 and 2019. With an expansion underway, attention needs to shift to Europe’s long-term challenges. Wellbeing disparities, the UK vote to exit the European Union, low potential ...

From civilisational frontier risks associated with new challenges like disruptive technologies, to the shifting nature of great-power conflicts and subversion, the 21st century requires a new approach to statecraft. In 21st-Century Statecraft, Professor Nayef Al-Rodhan proposes five innovative statecraft concepts. He makes the case for a new method of geopolitical analysis called ‘meta-geopolitics’, and for ‘dignity-based governance’. He shows how, in an interdependent and interconnected world, traditional thinking must move beyond zero-sum games and focus on ‘multi-sum and symbiotic realist’ interstate relations. This requires a new paradigm of global security premised on five dimensions of security, and a new concept of power, ‘just power’, which highlights the centrality of justice to state interests. These concepts enable states to balance competing interests and work towards what the author calls ‘reconciliation statecraft’. Throughout, Professor Al-Rodhan brings his philosophical and neuroscientific expertise to bear, providing a practical model for conducting statecraft in a sustainable way.

This Selected Issues paper investigates skills mismatch and active labor market policy in Lithuania. Wage flexibility is underpinned by one of the lowest densities of trade union and employer organization and the rare occurrence of collective bargaining. Thus, wage setting largely happens at the firm level. Real wages and productivity have been traditionally closely linked and temporary deviations have been self-correcting. In contrast, structural unemployment has been traditionally high, although it appears to be gradually falling. Large structural unemployment can have a significant long-term impact on potential growth and, therefore, on employment. Lithuania suffers from relative labor shortage for high-skilled workers and surplus of low- and medium-skilled workers. Thus, there are labor shortages in skill-intensive sectors. Lithuania has shown a sharp rise in skills mismatch for the country in the aftermath of the crisis. Vacancy rates and wage growth by sectors also suggest an excess supply of lower skilled workers and shortage of high-skilled ones.