I. LITHUANIA'S POLITICAL DEVELOPMENT IN 1996
IV. LAW AND ORDER AND LEGAL ENFORCEMENT
V. EDUCATION. SCIENCE. CULTURE
VI. NATIONAL SECURITY AND DEFENCE
VIII. LITHUANIA AS PART OF THE MODERN WORLD
Esteemed Chairman of the Seimas,
The High Seimas,
During the seventh year of the re-established independence Lithuania's
drive to Europe has become more marked: today our basic development
trends are oriented towards Europe. Generally speaking, the currently
evolving processes may be characterised as positive, but not as
simple as they appear to be at first sight. Our reinstatement
into the family of European democracies, economic and security
integration, convergence of cultures are all progressive processes,
offering tempting prospects of a better life. However, this road
is not easy to tread: it requires solving complex problems and
giving up the usual provincially tranquil way of life. Return
into the fold of Europe means a demanding test for our economy,
politics, culture, as well as social trials to be faced by the
people. We will have to boost our efforts in order to ensure competitiveness
in the world markets of Lithuanian-made material and intellectual
goods, to develop efficient social security network and to protect
our national culture from the influence of the Western mass culture.
What advantages are to be expected from European and Transatlantic
integration, from joining NATO and the European Union? Both Euro-sceptics
and Euro-enthusiasts daily address the public with questions of
the type, providing in most cases their own allegedly correct
answers. However, our citizens want to know now all the specific
advantages as well as difficulties and problems awaiting them
on their way. It is from this aspect of reinstatement into Europe
that I will attempt to survey Lithuania's internal and foreign
policy, assess its economic, political and social situation, and
dwell once again on the progress made in recent years.
I.
LITHUANIA'S POLITICAL DEVELOPMENT IN 1996
Before
I present my opinion on certain internal policy issues, it is
worth while characterising the country's general political
atmosphere.
Everybody who tries to make an objective assessment of political
situation in Lithuania cannot but agree that within the current
year political tension has markedly subsided, as has the confrontation
between different groups of citizens, and that political co-operation,
accord and mutual understanding are expanding. This is very laudable,
since history has left us more than enough unhealing wounds. The
years of occupations changed the lives of many people, often subjecting
them to a cruel or even tragic fate. The past may not and should
not be forgotten, even though it is not possible to redress all
wrongs. But of late the feeling that all of us, regardless of
our individual destinies, are compatriots united by common aspirations
and therefore must live in harmony has been been growing stronger.
Despite the remaining political antagonism, all our achievements
were first the result of concerted effort of our citizens. We
should also pay tribute to public authorities who speeded up the
process by their decision making.. It is not easy to identify
all the reasons of the growing social accord, but it is obvious,
that we are united by common goals and shall succeed in reaching
mutual understanding.
The year 1996 witnessed a number of major political events which
were in the centre of attention of both politicians and the majority
of citizens. The Government was changed twice. At the beginning
of the year, upon the approval of the Seimas, Prime Minister A.
Ðleþevièius had to be removed from office and
the seventh Cabinet of Ministers had to be formed. Naturally,
the most significant event of the year was the election to the
Seimas. It provided political parties with an excellent opportunity
to show their real worth on the political area, to state their
projected plans and ascertain the scope of their actual political
influence.
Analysis of election programmes of political parties, carried
out before the election by the Lithuanian Information Institute,
Vilnius University, International Relations and Political Science
Institute showed that all political parties of our state spoke
out for the strengthening, pursuant to the provisions of the Constitution
of the Republic of Lithuania and according to the traditions of
European democracies, of a democratic state governed by the rule
of law. Political parties proposed to resolutely combat crime
and corruption, reduce state administration expenses and ensure
its greater efficiency, strengthen the country's national security,
strive for membership in the EU and NATO, maintain good relations
with the neighbouring states.
Thus, in general all the major influential political parties seem
to have more or less identical understanding of the vital state
interests. And this is a matter of utmost significance not to
be overshadowed by the differences in their economic and social
policies.. We are aware that a common goal may be reached by different
roads. It is for the voters to make their choice.
It should be emphasised that the Seimas election produced a new
arrangement of political forces. The Homeland Union-Lithuanian
Conservative Party received the majority of seats in the Seimas.
The 5% election barrier was also passed by the Christian Democrats
which formed a coalition with the Conservative Party, the Centre
Union, and the Democratic Labour and Social Democratic Parties
which formed opposition parliamentary groups. The election to
the Seimas revealed a well-established modern multiparty system.
Consequently, today we may conclude, that Lithuania will not be
a a two-party state of Anglo-Saxon type. Several strong and promising
parties have come to the fore. Before the election, the excessive
number of parties was a widely discussed issue. Participating
in the election were as many as 28 parties out of the total number
of 33 registered with the Ministry of Justice. I do not believe
that the setting up of political parties should be subjected to
any additional restrictions. Life itself will select those which
are necessary leaving the others to fall into oblivion.
As many as 3 referenda were held together with the election to
the Seimas. The voters chose not to approve of any of the submitted
issues. Hasty presentation of the issues without any prior preparation
of the public had, to my mind, a detrimental effect on the very
idea of the referendum.
As I have mentioned earlier, the Government changed twice, but
this was done strictly according to the Constitutional norms and
following the democratic traditions. Not always had it been as
simple as it appeared to be. However, all public authorities which
took part in the forming of the new Cabinet of Ministers acted
in compliance with the rights, duties and competence laid down
in the Constitution. In my opinion, excessive demonstration of
authority has never set a due precedent for the development of
democracy and will never set one. Having won the election, the
Conservative Party, together with their coalition partners Christian
Democrats, nominated their own candidates to the Cabinet of Ministers,
assuming thereby responsibility for ruling the country.
The process of Cabinet formation evidenced that our state is already
governed by a democratic Constitution and that democratic traditions
are gaining ground. It is for the second time that we witnessed
a smooth transfer of Government functions between the two opposing
political forces. We have once again realised, as well as demonstrating
it to the rest of Europe, that different political parties may
co-operate for the benefit of the state.
These are the positive political lessons of the year.
Unfortunately, last year a different and rather dangerous trend
in the formation of a civic society also became evident, namely,
low political activity of citizens. After the decisive victory
- restoration of independence - political enthusiasm of the majority
of the people subsided. A relatively low voter turnout is also
a matter of major concern. Hundreds of thousands of people chose
not to exercise their constitutional right to rule the state through
their democratically elected representatives. What does this mean?
Disappointment in the government as such or only in the former
ruling party? Could it be that this political apathy is linked
to other, more earthly matters, social problems the people have
to cope with? Also, one cannot disregard the poor election turnout
among the young people. Here, gaps in the family and school upbringing
and education of citizens become most obvious. Stating one's opinion
in a democratic election is not only one's right, it is our duty,
since thereby we show our concern for the future of our state.
All institutions of state government - the Seimas, President of
the Republic, the Government - should enhance by joint effort
the prestige of public authorities, try to make their activities
more transparent to the public, respond with greater concern to
the submitted proposals and refrain rom engaging in hollow verbiage
which only damages the prestige of public authorities. We are
well aware, that having reached a certain scale, political apathy
and disappointment with our country's government may acquire dangerous
proportions eventually lapsing into indifference to the future
of the motherland.
In
April last year the third forum of Lithuania's non-governmental
organisations was held in Vilnius. Taking part in it were
approximately 300 public organisations, associations, foundations,
representatives of non-profit enterprises. It was aptly stated
in the forum that the problems of non-governmental organisations
may not be explained away merely by lack of funds as the only
one most frequently given reason. Quite a lot depends on new forms
of activity, close co-operation and the size of membership.
Non-governmental organisations have ample possibilities to develop
their activities in the spheres of social security and artistic
creativity, as well as satisfying other needs of their members.
Lithuania has a number of professional, business, cultural, sports,
national, scientific, charity organisations. Among the most influential
of them I could mention the Industrialists and Businessmen Employers'
Confederation, Agricultural Companies Association, Farmers' Union,
the Chamber of Agriculture.
Last year public organisations were re-registered pursuant to
the laws regulating the activities of public organisations, which
came into force in 1995. The organisations had to amend their
statutes to comply with the new procedure by 1 July 1996. 604
public organisations have been registered with the Ministry of
Justice, 254 have had their activities terminated because of their
failure to register.
241 charity organisations or charity funds that are at present
actually or formally functioning will have to be re-registered
by 14 April 1997 pursuant to the Law of the Republic of Lithuania
on Charity and Sponsorship Funds.
The Law of the Republic of Lithuania on Religious Communities
and Associations regulates registration as legal entities of traditional
religious communities or associations as well as registration
of statutes of non-traditional religious communities or associations.
In 1996, 142 Lithuania's traditional religious communities and
associations were registered as legal entities, and 9 non-traditional
communities or associations were entered in the register.
Debates on the proposed amendments to the Law on Religious Communities
and Associations as well as to the Law on Education resulted in
the deterioration of relations with the Catholic Church and other
religious denominations. To my mind, one-sided proposals submitted
by certain former Seimas members aroused numerous disputes, electrified
the public. We have been taught a lesson that this sphere of special
sensitivity should only be regulated by laws based on the Constitutional
provisions. In addition to nine non-traditional religious beliefs,
"new beliefs" are emerging in Lithuania: the country
has been invaded by various religious sects receiving financial
support from abroad. They exert unwholesome influence both on
the elderly and the young. It would be expedient to set up a special
department at the Government to analyse the position of all religious
denominations and submit recommendations to me, the Seimas or
the Government (I regret to say, that we never saw the setting
up of a department for the registration of religious denominations
which was to be established at the Ministry of Justice last year).
The Ministry of Justice has registered 362 trade unions, however,
only 87 of them function in more than one county. The majority
of trade unions are united by four national trade union centres:
the Lithuanian Trade Unions Centre, Lithuanian Trade Unions Association,
Lithuanian Labour Federation, and the Lithuanian Workers' Union
which in fact has split.
Trade union movement leaders are not always able to convincingly
chart their work programmes or propose specific actions for protecting
their members against economic difficulties. Also, sometimes the
leaders are at odds with each other and this overshadows the principal
goals and objectives of trade unions and weakens the movement.
This accounts for the lack of the working people's trust in trade
union centres. Therefore, conditions are more favourable for setting
up regional trade union associations.
According to the data possessed by trade unions, their membership
now amounts to over 200,000 or 10-15% of the working people. Having
compared trade union membership in Lithuania and West European
countries, we see that in Lithuania trade union membership is
far from sufficient. In Germany, for example, trade unions unite
up to 50%, in Denmark and Sweden - over 80%, and in Finland -
almost 90% of the working people. This fact is illustrative of
a rather sceptical attitude of Lithuania's people towards trade
union activities and their prospects. Trade union leaders themselves
have not noticed any marked growth of trade union membership either.
Only by expanding and boosting up their activities will the trade
unions manage to establish their authority, attract new members
and occupy a prominent place in our country's public and political
life.
It sometimes happens that trade union leaders show no interest
in new laws the provisions whereof affect social interests of
the working people, their relations with the employers. Here I
have in mind the law amending Article 29 of the Law on Employment
Contract, passed by the Seimas at the close of last year. The
provision of the Law, prescribing employees' performance evaluation,
actually creates preconditions for the employers to abuse their
position when deciding the issue of dismissal from work. However,
the matter is expected to finally clear up after the Government
drafts and approves the regulations for the employees' performance
evaluation. I referred the law for repeat consideration, however,
received no active support from trade union leaders.
The Trilateral Council has been operating since May 1995, where
representatives of the Government, employers and trade unions
join their efforts in settling economic, social and labour problems,
implementing economic and social policy. The Council considers
draft laws, presents its findings to the Seimas and the Government,
and monitors compliance with the Council recommendations.
Close co-operation on the Trilateral Council between trade unions,
employers and Government representatives spurred up the passing
of the Law on Penalties for Delayed Payments Related to Labour
Relations which obligated the employers who have arrears in payment
of wages or other amounts related to labour relations to pay out
penalties together with wages. The Law on Enterprise Bankruptcy
was also amended prescribing priority settlement with the employees
in the event of enterprise bankruptcy. The concept of idle time
and the definition of the employee's legal status during idle
time were also introduced in the Law on Employment Contract.
Although in principle, being in the position to monitor compliance
with its recommendations, the Trilateral Council has not merely
an advisory function, trade unions, nevertheless, have every reason
to insist that the Council be considered an institution of social
dialogue and its activities be governed by law.
The
essence and objective of ethnic policy of the Republic
of Lithuania is to ensure best possible conditions for the development
of Lithuanians and other nations residing in our country. Developed
and sustained, national character and cultural traditions not
only enrich us, but also serve as a unifying factor instilling
patriotic feelings, love for the motherland and the state where
we are living.
Over the ages the realities of our country have developed an understanding
that ethnic minorities constitute an inseparable part of the Lithuanian
state and, consequently, ensuring the progress and cultural continuity
of not only Lithuanians, but also of all nations residing here
is one of the objectives of Lithuania's restored statehood. One
of the major tasks in the area is implementation of the national
programme marking the 600th anniversary of the Tartar and Karaite
settlement in the Grand Duchy of Lithuania. The programme is monitored
by a special Government commission.
Analogous goals are pursued by the working group formed pursuant
to my Decree in order to mark the 200th death anniversary of Gaon
Elijahu of Vilnius and headed by the Minister of Culture. The
anniversary, due to its significance not only to Lithuania's but
also to world culture, has received international attention, since
the thinker from Vilnius was widely renowned for his scholarly
works. In the middle of September certain events: a solemn meeting,
a scientific conference, an exhibition shall be held to mark the
anniversary. A special proposal by the working group should be
highlighted: in November last year the group suggested setting
up a specialised Gaon reading room with books in Yiddish and Hebrew
in the extension of the Martynas Maþvydas library depository
currently under construction. There the books of great cultural
value would be duly catalogued, stored on microfilm and made accessible
to all investigators both from our country and from abroad.
The survey carried out in 1996 by the Canadian Human Rights Fund
established that among all the Eastern and Central European states,
Austria, Hungary and Lithuania have the best ethnic minorities
record. In these countries the rights of ethnic minorities are
guaranteed by the Constitution and special laws, appropriate bodies
have been set up within the executive branch on the governmental
level, and public institutions of ethnic communities are functioning
on a permanent basis, offering consultations to various state
departments on national relations and ethnic minorities issues.
In the Republic of Lithuania the rights of Lithuanian and foreign
nationals (including stateless persons), ethnic, linguistic and
religious minorities are safeguarded by the Constitution and bilateral
and multilateral agreements between states. Political agreements
with Russia, Belarus, the Ukraine, Poland contain special articles
which lay down the rights and duties of ethnic minorities. These
agreement are equally applicable both to the ethnic minorities
of those countries residing in Lithuania and to Lithuanian ethnic
minorities abroad.
According to the latest research data of the Lithuanian Institute of Philosophy and Sociology, the trend towards integration into the life of the state is continuing among the ethnic minorities.
Good command of state language should be given special emphasis.
Although the Programme for the Use and Fostering of the State
Language for the period until 2005 has been in force for two years
already, we have to admit that the area still requires quite a
lot of effort and funds. With all effort mobilised for the teaching
of Lithuanian language at educational institutions, adult education
should not be neglected either. Work should be carried out in
two directions: both looking for possibilities to organise language
courses and prescribing that the officials, officers and employees
be required to have a knowledge of the State language according
to the established qualification categories. We must spare neither
effort nor funds to ensure that every secondary school graduate
who is a Lithuanian national would have an adequate command of
the state language.
Social, economic and cultural conditions of Lithuanians residing
abroad differ as does their historical background. Consequently,
their needs and possibilities to maintain relations with Lithuania
differ accordingly. Therefore the problems and needs of Lithuanians
residing in the Eastern and Western countries should be treated
differently. Lithuanians, residing in the neighbouring countries
as authochtons and preservation of their ethno-cultural identity
should be in the centre of our attention.
The key short-term target is providing the children of Lithuanian
parents or Lithuanian descent in the neighbouring countries with
possibilities to attend Lithuanian language schools or at least
to study their native language. Targeted assistance is provided
for the purpose, including construction of educational and cultural
institutions and provision of financial assistance. At present
such construction is in progress in Belarus, Poland, Russia (Kaliningrad
Region):
Last year an excellent secondary school was built for the Lithuanians
of the Gervëèiai area in Rimdþiûnai (Belarus).
This, of course, was a joyful event, although certain ambitions
were far in excess of our country's potential. Suffice it to say
that in addition to the school and other unfinished buildings,
construction of a swimming pool was started in this small village.
While in close vicinity in Lithuanian, in the Vilnius and Ðalèininkai
districts, Lithuanian schools are often housed in entirely dilapidated
buildings. The Government must more rationally balance various
departmental interests with the country's potential.
Last
year thorough and targeted preparations were undertaken to initiate
the programme for granting asylum to the refugees. Implementing
the Law on the Status of the Refugees in the Republic of Lithuania,
the Government set up a Council for the Affairs of the Refugees,
drew up and approved the Council regulations and the Refugee Centre
regulations. Secondary legislation enacted by the Government is
already regulating, among other matters, the conditions and procedure
of the refugees' entry, their sojourn here and their expulsion
or departure from Lithuania. This year in January the Republic
of Lithuania acceded to the 1951 Vienna Convention on the Status
of the Refugee and to the 1967 Protocol to the Convention. The
Government is drafting a Decree initiating the procedure for considering
applications of asylum seekers'. Such applications will be considered
only after we complete all the necessary preparations.
Certain measures have already been taken to alleviate the condition
of the refugees. The Nordic countries have granted financial assistance
for repair works at the first block housing 156 refugees in the
Refugees Centre set up in Rukla settlement, Jonava district. Personnel
of certain departments are trained to make them qualified for
work with the refugees, a special unified information system is
being developed, structural divisions of the Ministry of the Interior,
Ministry of Social Security and Labour and the Lithuanian Red
Cross Society are being supplied with computers and software.
A
wide mass media network has been developed in Lithuania.
I must admit, however, that legislation regulating the activities
of the media, relations with the public as well as the rights
and responsibilities of journalists had been non-existent until
last year when, after prolonged discussions, the Law on the Provision
of Information to the Public as well as Law on its implementation
were at long last enacted. The functioning of the budget-funded
Lithuanian National Radio and Television is regulated by a special
National Radio and Television Law. All the above laws superseded
the outdated Law on the Press and other Mass Media passed as far
back as 1990.
Under the new laws journalists are bound to present correct, accurate
and unbiased information. Censorship of mass media is prohibited,
but at the same time it is also prohibited to disseminate information
which is knowingly slanderous, insulting and humiliating to individual
honour and dignity or incites war and enmity. The state, municipalities
and banks are prohibited form being owners of public information
producer and holding stakes in radio and television stations.
The Law on the Provision of Information to the Public lays down
the self-regulatory principle of the press. Pursuant to the Law,
the Public Information Board was abolished and the Ethics Commission
of Journalists and Publishers was set up. The Commission examines
violations committed while providing information to the public.
All natural and legal persons may appeal to the Commission concerning
the violation of the rules of ethics. The Law also establishes
the office of the Inspector of Journalist Ethics who is a government
officer. His function is to examine the complaints lodged by natural
persons concerning violations of their honour and dignity in the
mass media as well as the professional claims of the mass media
subjects.
Mass media, except for the National Radio and Television, have
become quite independent from the state. No one is in the position
to enforce restrictions on the freedom of information. As the
Law on the Provision of Information to the Public being very democratic
and grants the journalists full freedom, the latter must feel
all the responsibility, comply with the principles of journalists'
ethics and respect human dignity.
Amendments to the Law on the Provision of Information to the Public
that were enacted by the new Seimas changed the National Radio
and Television Board formation procedure. From now on the Board
is to be formed by creative artists and representatives of public
organisations. Regrettably, both the previous Seimas, when forming
the National Radio and Television Board, and the new Seimas, enacting,
in special urgency procedure, amendments on the Board formation
principles, relied merely on the majority vote and disregarded
the opponents' opinion, instead of trying to find a compromise
and a variant of the law acceptable to all parties.
We should all realise that laws are enacted not for a one-day
period. Their drafting must be thought out and concerted, with
due regard to public opinion. Such style of legislation would
allow to avoid unwanted conflicts and tension.
1996
saw further improvement of the local government system.
Last year the Constitution of the Republic of Lithuania was amended
twice. Both amendments to the fundamental law of the state concerned
municipality affairs. Pursuant to one of them, municipalities
have been granted the right to acquire title to non-agricultural
land plots required for the construction and use of buildings
needed for their direct business (procedure regulated by a constitutional
law). Amendment to Article 119 of the Constitution extended the
municipal councils' term of office from 2 to 3 years.
The European Self-government Charter was signed on 27 November
1996, while the Joint European Convention "On Crossborder
Co-operation between Territorial Communities and Public Authorities"
was signed on 6 June 1996. The signing of these important international
documents is indicative of Lithuania's aspirations in the sphere
of local self-government and of its desire to integrate into European
structures.
The legal basis of local self-government was reinforced by passing
the Law on Local Government Symbols and Emblems, Law on Local
Taxes, three amendments to the Law on Local Self-government, Law
on the Amendment of the Law on Elections to Municipal Councils,
other statutory acts.
In 1996 the Seimas of the Republic of Lithuania passed as many
as 7 laws changing city and district administrative boundaries
thereby completing the first stage of administrative-territorial
reform. Regrettably, no acceptable solution was found regarding
the administrative boundaries of the town of Visaginas and Ignalina
district municipalities.
The second educational institution for state officials and local
elective officers - Government and Municipality Employees Education
and Rehabilitation Centre "Dainava" was set up in Druskininkai
last year. The Lithuanian Municipalities Association expanded
its activities. Meetings of ministers of the three Baltic states
whose functions embrace the local government matters were held
on a regular basis. Pursuant to the co-operation agreement signed
between Lithuania's Ministry of Administrative Reforms and Municipal
Affairs and Denmark's Ministry of the Interior, far-reaching projects
were produced and implemented.
Regrettably, attempts at strengthening economic and financial
independence of municipalities were unreasonably unproductive
last year. Municipal budget formation procedure was not changed.
The provisional procedure for determining the amount of mandatory
deductions and subsidies into municipal budgets approved in 1994
was subjected to criticism both from municipalities and from public
authorities. However, the procedure remains valid and was applied
when determining the above deductions and subsidies for the year
1997.
Last year the process of building municipal property by transferring
the share of state assets allotted under law to the ownership
of municipalities was not completed. During the two-year period
the conditions underwent certain changes, but the Government failed
to timely draft the necessary amendments and to regulate the above
processes in due manner.
The criteria and procedure for setting up new municipalities were
not approved in 1996, and the programme for the second stage of
the administrative-territorial reform was not worked out either.
During the first stage of administrative-territorial reform only
56 town and district municipalities were entitled under law to
local self-government. In future, the number of municipalities
should be gradually increased. The second stage of administrative-territorial
reform should be consistently carried out with due regard to the
state possibilities and citizens' interest.
It is appropriate to take stock both of our successes and failures.
It is also necessary to set trends for future activities. Our
prime targets for 1997 should be:
Working out and approving a new and revised municipal budgeting
procedure so that in 1998 municipal budgets could be drawn up
pursuant to the changed principles.
Reviewing municipal budget planning and accounting systems, drafting
and enacting statutory acts to regulate loan-related operations
of municipal institutions, prescribing the procedure of and restrictions
on such operations.
Extending the time period for transferring state assets allotted
by law into municipal ownership, enacting amendments to the law
ensuring smooth transfer of state assets to municipalities and
putting an end to conflicts between municipal institutions and
county governors.
Drafting qualified recommendations on the choice of most appropriate
organisational forms of property management or service provision.
Achieving a more distinct division of functions between municipalities
and county governors, eliminating contradictions between laws
on local government and other laws.
Drafting and enacting amendments to the Law on Local Self-government,
which would allow to more distinctly identify the functions (responsibility)
of municipalities, to make a more distinct division between independent
(obligatory and voluntary) functions and state-delegated competence,
in this way ensuring separation of powers between the municipal
elective institutions and the administration. Preparing and implementing
local officials and local elective officers training and internship
programmes.
Carrying out preparatory work in order to ratify in the Seimas
of the Republic of Lithuania the European Local Government Charter
and Joint European Convention on Crossborder Co-operation between
Territorial Communities and Government Institutions.
Timely and appropriate performance of the above tasks would provide conditions for better discharge of functions assigned by law to new municipal councils to be elected on 23 March 1997.
We may assert that the days of greatest economic difficulties
are over for Lithuania. This is evidenced by the growth of one
of the basic economic indicators - the GDP - which started in
1994. According to preliminary estimates, in 1996 Gross Domestic
Product grew by 3.5% due to the increase in industrial production
(electricity generation included), growing volume of agricultural
production, as well as increase in the volume of trade, communications
and telecommunications, transport and other services.
It
became obvious as early as the middle of last year, that national
budget revenue target figures for 1996 had been unreasonably
increased, therefore 370 mn Litas were not received by the national
and municipal budgets. The consequence thereof was the state's
failure to fulfil its financial obligations to schools, hospitals,
farmers, which, in its turn, resulted in arrears in payments for
energy and public utilities services. But debts must be repaid
and the payment is due this year.
Two reasons accounting for failure to collect budget revenue must
be pointed out: extension of the validity term of value added
tax breaks and tax evasion. The fact that the Seimas extended
the validity term of the value added tax breaks from 1 July until
the close of the year resulted in the loss of approximately 25bn
Litas in budget revenue. The second reason is tax evasion and
inability of public institutions to collect the taxes due.
Double-entry accounting, unofficial wages, and smuggling are widely
discussed matters. These are instances of black economy whose
scope is difficult to assess.
A survey of black economy conducted by the Department of Statistics
in 1995 shows that over 600mn Litas of VAT and excise duties fail
to reach the national budget because of alcohol and oil product
smuggling. Comparison has shown that Lithuania's export to Germany,
Poland, Latvia and Estonia exceeded its import from the above
countries by almost 310mn Litas which means a loss of 56mn Litas
to the budget.
As I have already said, these data are for 1995. One could hardly
expect better results in 1996 either.
Regrettably, nearly the entire national budget deficit was attributed
to the allocations of the first half of the year. At the beginning
of the year the listed securities interest rate was as high as
36%, while at the close of the year, having succeeded in attracting
foreign capital, the interest rate fell down to 10-12%.
High interest rate for Government bonds has a double negative
effect: high servicing costs (in 1996 the total amount of interest
reached almost 180mn Litas) and decreasing economy crediting resources.
It's no secret that commercial banks prefer buying risk-free high
interest Government bonds instead of extending loans to economic
entities.
Thus the budget deficit servicing experience of the two previous
years has once again confirmed the importance of joint effort
seeking to avoid budget deficit. I regret to say, that this year's
budget will have an even higher deficit as against the last year.
1996 saw a further decrease of inflation. In 1995 the average
monthly price increase was 2.6%, whereas in 1996 it fell down
to only 1.01%; the annual inflation was 13.% as against the planned
25% . The decrease in inflation was first of all conditioned by
the fact that consumer product prices corresponded to the demand
and reached the world price level. Second, inflation growth was
checked by Government-regulated electricity and heat prices and
a stable Litas exchange rate.
The low inflation could not but affect the budget revenue, planned
following much higher inflation forecasts. Being lower by 12 percentage
points as against the anticipated rate, inflation conditioned
a 10% decline in budget revenue. This would amount to approximately
500mn Litas.
The prime target of all public authorities, first of all the Ministry
of Finance, Ministry of Economy, the Bank of Lithuania, is tight
monetary and credit policy and further curbing of inflation to
reach the targeted figures of 3-4% annual rate of developed industrial
countries.
During
the period of transition to a market economy the share of industry
in the country's GDP kept decreasing until it reached the present
level of 29%. There has also been a decrease in the volume of
production of certain goods. These sharp falls were caused by
the factors characteristic of all transitional economies: shrinking
internal market, loss of traditional external markets, shortage
of working capital, changing forms of ownership and difficulties
of industrial enterprise restructuring.
The first signs of industrial recovery became evident in 1995
when trade volume of the country's extractive and processing industries
exceeded that of 1994 by 1%. Accordingly, the figure for electricity,
gas and water supply was 22%.
1996 saw the increasing growth of industrial activity. By comparative
prices the volume of trade of extractive and processing industries
increased by 1.3% (electricity, gas and water suppliers - by 10.8%)
as against the 1995 figures. The increase in industrial electricity
consumption confirms the tendency towards renewal of industrial
activities.
The most marked changes in the 1996 sales of products were witnessed
in the following industries: tobacco products -26%, clothing,
fur processing and dying -22.4%, electrical appliances and equipment
-18.9%, chemicals -12.2%, timber (except furniture) -11.6%, oil
processing products -11.3%, office machinery and computers -11%.
The revival of industry was spurred up by the passing of the Law
on Arrears in Payments to the Budget which allowed to use enterprise
assets for the payment of arrears and write off the accrued interest.
We have to admit, however, that production output in certain sectors
of industry is still on the decline. This is most evident in the
machine building and electrical engineering industries. Our prime
target is averting the bankruptcy of the enterprises so as to
preserve the intellect of our country's industrial potential.
The Government should analyse the performance of every individual
enterprise and look for ways to attract foreign investors.
Just
like in the previous years, the energy sector still remains
in the centre of attention. We may regard as positive the fact
that for two years running there has been a slight improvement
in the energy sector performance indicators.
1996 saw an increase in energy and gas consumption and oil processing.
Electricity generation for export increased 1.5 times, and there
was a 20% increase in the aggregate volume of generated electricity
which slightly increased the energy sector performance and economic
indicators: worker productivity increased by 12%, power network
losses fell down by 20%. The production cost of 1kWh fell down
accordingly.
However, ever since the re-establishment of independence energy
sector production costs have exceeded the rates. Excessive losses
in the power network, unreasonable commercial expenses, overblown
management system remains a drag on the energy sector. Another
reason accounting for the increase of losses is the fact that
the problems of energy saving are left for the energy sector to
grapple with.
Last year, taking into account the consumers' financial potential,
authorities consciously kept the rates low. But no provision was
made for funds to compensate the difference in prices and the
energy sector has run into huge debts. Neither the Government
nor the Seimas ventured to address the problems which remain as
acute as ever. The newly restructured State Commission for the
Control of Prices of Energy Resources and Energy Sector must without
undue delay commence its activities and attend to such issues
as price and rate adjustment, approval of the procedure for setting
prices and rates, assessment of reasonableness of the energy sector
expenses.
Additional state support must be provided for to the most socially
vulnerable sections of society. In future loans will have to be
extended to finance investment projects, instead of covering current
expenses. Only after the financial situation is set right will
it be possible to modernise and restructure the energy sector,
repay credits, ensure adequate preparation for the heating season.
The oil complex is the key object of the energy sector. Now it
is more than obvious that we delayed too long the setting up of
a national oil company. In order to rectify the situation, a special
law was passed at the end of last year empowering the Government
to unite all the enterprises and set up the company "Lietuvos
nafta". All the enterprises incorporated in the company will
have a common goal - making a more effective use of the production
potential of special importance to Lithuania's economy and national
budget. Therefore the Government must not delay the enforcement
of the law on the setting up of the company "Lietuvos nafta".
Last year the energy sector underwent further restructuring: the
share of private capital was further increased following the Government
and Seimas resolutions, but the controlling stake was retained
by the state. Restructuring of the energy sector is unfeasible
without private capital, foreign investments included, because
the process is capital-intensive and local investors are not in
the position to supply the required funds. The prime objective
for the projected future is attracting foreign investments to
finance strategic objects of the energy sector. The Government
must obtain funds of financing energy saving measures, since only
rational use of fuel and energy ensures the desired economic growth.
Last
year agriculture, a traditionally leading sector of Lithuania's
economy, was still in a poor condition, although a number of positive
trends are already discernible. Economic support to agricultural
producers was boosted, there was a shrinkage in the area of unused
land, the grain, sugar beet and potato yields were the most abundant
in the last four years, livestock productivity is on the increase.
On the whole, in 1996, as against 1995, gross agricultural production
(preliminary estimates) increased by 15%, plant production - by
31%, while livestock production remained on the 1995 level.
We may not ignore the remaining difficulties: dissolution of agricultural
companies in many localities, small farmers hardly keeping their
farms afloat because of lack of modern agricultural machinery,
shortage of funds, growing energy rates. The land is inefficiently
used: it is badly tilled, the areas under crops receive not enough
fertilisers, hence the rather low agricultural output and high
production costs.
In 1996, just like in previous years, the share of land used by
farmers and other residents increased, while the area of land
used by agricultural companies was shrinking. The farmers' and
other residents' share of land in the total land area under cultivation
increased from 60% in 1995 to 71% in 1996., whereas the corresponding
figures for agricultural companies were accordingly 34% and 29%.
Contrary to what is sometimes asserted, the land reform did not
slow down, but proceeded rather consistently. This could be proved
by adducing figures evidencing the number of private land owners:
more than one-third of agricultural land users already possess
title documents to it. Formally, this land may be both put for
sale and bought, however, for obvious reasons the land market
is still weak, public land is not bought. Therefore there are
no possibilities for the growth of farms.
I am pleased to note, that the free trade in agricultural produce
agreement between the Baltic states has at long last come into
force. The agreement opens a larger market for our producers in
addition to offers the consumers a wider range of sometimes cheaper
products from the neighbouring countries.
Agricultural policy must be planned taking into account both the
consumers' and producers' interests. It must speed up land reform,
provide conditions for the development of viable farms able to
produce low cost high quality products finding ready market abroad.
The likely social and economic consequences of Lithuania's integration
into the European Union should be subjected to a thorough analysis
leading to adoption of decisions for protecting the agricultural
sector against additional difficulties in the management of this
first priority foreign policy issue.
Lithuania's
transport sector, reflecting the country's general economic
and social situation, satisfies the users' demand in inland and
international passenger travel and goods carriage. The activities
of sea and river transport, road transport sectors have stabilised
and show certain sign of expansion. It is true, that Lithuania,
being a gateway for transit, suffers heavy losses by reason of
border crossing difficulties and faulty tariff system. The efforts
of all interested authorities should be mobilised for the solution
of border crossing problems.
Fundamental restructuring of the transport sector has been undertaken
seeking the realisation of the key strategic target of Lithuania's
transport sector - integration into transport network of Europe
and the Baltic Sea region and entry into European market of transport
services. One of the principal preconditions for restructuring
is approximation of Lithuania's legal framework with the corresponding
statutes of the European Union, application of principles, requirements
and standards laid down in international conventions, EU resolutions
and directives, documents of other international organisations.
The influence of transport sector on the development of the country's
economy is immense, therefore strategic objects of transport infrastructure
are retained in state ownership, public investments are provided
in this sectors and Government guarantees are given to foreign
credits. Increasing the share of private capital in this sector
will accelerate integration of Lithuania's transport into the
European transport network.
Financial problems slow down the integration of the infrastructure
into the ES transport system which may turn into an obstacle for
transit services. This issue should be given due consideration,
since neighbouring countries give priority to transit. Without
changes in the Government investment policy we will hardly be
able to compete in the market which is vital for Lithuania, especially
in the East-West direction through the Klaipëda seaport.
The
weight of private business in the life of our country is
growing. As of late there has been a great increase in the number
of employees in the sector, and in 1996 two-thirds of the workforce
were employed in private sector enterprises. The speedy increase
in the numbers of private businesses was conditioned by the accelerated
privatisation rates and the people's wish to launch a private
business. At the same time the contribution of this sector to
the national economy has also been growing.
The main problems businessmen have to face are the faulty legal
system, frequently amended laws, instability of taxation system,
shortage of working capital, inadequate qualifications of a number
of businessmen, shortage of soft credit sources for business development,
inadequate business information infrastructure and failure of
government empowered bodies to ensure the protection of businessmen's
interests and property.
Greater attention given to small and medium-sized businesses as
the driving force of private business would spur up the growth
of the already functioning and rather stable private business
structure. In the beginning, the currently effective Law on Small
Enterprises used to stimulate businessmen's activity, however,
with the changes in the economic situation having occurred it
no longer ensures best possible conditions for small business
development. This prompted the previous Government to submit to
the Seimas a draft law on small business.
Incidentally, the draft law provides for the setting up of funds
for the implementation of small and medium-sized business programme.
Small and Medium-sized Business Incentives Fund should provide
a basis for that. The Fund would be drawn into preparation and
implementation of investment projects as well as mediating in
loan extension and loan guarantees provision to small and medium
business entities. The Fund could also be used to improve the
businessmen's qualifications and to gain access to more detailed
information.
In the near future the Seimas should enact the Law on Small and
Medium-sized Business, while the Government, in its turn, in addition
to establishing business priorities with a view to the changed
situation and developing a stable system of taxation providing
incentives for business, should also review and supplement the
programme for the development in Lithuania of small and medium-sized
business.
The
improved economic situation provided favourable conditions for
foreign trade development. At the present time Lithuania
maintains economic and trade relations with over 140 countries.
In 1996 the 9 months foreign trade volume amounted to 21.8bn Litas.
The growth of export was especially evident in 1996. During a
9-month period the export of Lithuanian-made goods exceed that
of the same period in 1995 by 22.8%. However, foreign trade negative
balance of the above period amounted to 2,8bn Litas.
Positive changes may be seen in the geographical structure of
Lithuania's foreign trade partners. Although our industrial enterprises
have not severed trade relations with Russia and other CIS countries,
their orientation is gradually shifting towards Western markets.
The current trend is the growing trade volume with Western countries
which exceeds 60%. Until quite recently the proportion was in
the opposite direction.
Textile and its goods make up 15% of Lithuania's export, chemical
industry and related industries products - 11.4%, live animals
and livestock products - 7.6%, finished food product - 6.4%.
Energy resources - oil, gas, nuclear and other fuel make up the
largest share of Lithuania's import. The excessive share of imported
mineral products (energy resources) conditions our negative foreign
trade balance. The situation may be rectified (which is more than
necessary) by gradually increasing the export of Lithuanian-made
goods both to the West and to the East. And it stands to reason,
that negative foreign trade balance may be avoided only by reducing
the consumption of energy resources.
Numerous measures stimulating foreign trade have been introduced
in recent years. Lithuania has already signed free trade agreements
with European Union member states, Baltic countries, Poland, other
CEFTA and EFTA countries, as well as with the Ukraine. In the
foreseeable future the list will be enlarged, although presently
the turnover of our trade with the counties with the free trade
status is over 50%. Trade with other countries, the CIS included,
is conducted on the basis of most favoured nation status. In addition,
implementation of goods and services export incentives programme
is to be started without delay, while the Export Incentives Agency
must expand its activities and use the funds of the Export Support
Fund more efficiently.
Planning the country's foreign trade and tariffs policy, adjusting
it to meet the requirements of joining the European Union and
the World Trade Organisation, the Government must not neglect
local producers, giving them all-round support and economic incentives
as well as showing concern for the local market protection. The
movement "Let's Buy Lithuanian Goods" should spur up
the development of domestic market.
During
its second stage privatisation is carried out for cash,
at market prices, on equal terms for Lithuanian and foreign natural
and legal persons.
47 objects for 3.2mn Litas had been sold by 1 January 1997. The
results could have been better, had the number of objects been
greater and had they been more attractive. 452 objects had been
included in the list of privatisation objects whose public assets
offered for privatisation amounted to merely 145.5mn Litas. Thus,
it is obvious that, with several exceptions, all the objects entered
on the privatisation list are small-sized and unattractive to
serious investors.
What is more, the founding ministries timely presented only half
of the listed objects for the drawing up of privatisation programmes.
Having 37 objects on the privatisation list, the Ministry of Industry
and Trade presented merely 4 programmes, the Ministry of Communications
and Informatics failed to present a single programme for any of
its 12 objects, as did the Ministry of Energy, whose list contains
9 privatisation objects. What else can be said?
Presently the list of objects subject to be privatised in 1997
has already been drawn up. But the trend continues and the founding
ministries put on the list only objects in whose authorised capital
the share of state capital being privatised is small. As we see,
privatisation is proceeding rather sluggishly .
As in 1995, in 1996 in Lithuania the monthly wage and minimum
hourly wage saw a rapid increase. The minimal monthly wage (MMW)
was increased from 180 Lt to 300 Lt, i.e. even by 67%, which significantly
exceeded the rate of inflation and growth of the average monthly
wage.
The dynamics of growth of wages and prices in the country, compared
with situation in the neighbouring countries of Latvia and Estonia,
display positive tendencies. Application of the purchasing power
parity index computed by the Organisation on Economic Co-operation
and Development (OECD) revealed that the average wage was highest
in Lithuania and amounted to $520US, in Latvia - 468 and in Estonia
- $429US. Having this in mind, I would like to point out once
again that in 1996 the rate of inflation in Lithuania was the
same as in Latvia, but lower than that in Estonia.
However, the year 1996 did not witness reduction of wage differential
between the various sectors of economy. Wages of employees of
educational and health care sectors as well as social workers
still do not reach the average wage of employees of institutions
financed out from the State budget.
The Law on the Fundamentals of Remuneration of the Heads of State
and Government, Members of the Seimas, employees of the public
(state and local) institutions and organisations was adopted last
year, and upon coming into effect it will redress the imbalance
between the amount of salaries and equalise the salaries of persons
performing the same functions but employed at different agencies.
Urgent
and painful remain the social problems of retired people who
form a large part of our society.
The number of pensioners in the country is continuously increasing.
Especially rapidly is growing the number of orphans and widowed
persons receiving pensions, as during the last year the number
of such persons increased by 4,4 times. The number of persons
eligible to draw the disability pensions increased by 5,3% while
the number of pensioners in general - by 2,7%. Thus, the number
of occupied persons paying taxes is constantly decreasing whereas
the number of pensioners is growing which, of course, is an indicator
unfavourable towards the pensioners.
In the 1996 national, municipal and state social insurance budgets
the appropriations for social security accounted for 13,7% of
the GDP which constituted 4402,2 million Lt. Though this amount
exceeded the 1995 GDP portion allocated for social needs even
by 1 unit in percentage terms, however, the allocated resources
were insufficient to deal with even the most urgent problems.
The average old-age pension increased from 168 Lt to 213 Lt per
year, and despite the fact that it grew faster than the rate of
inflation, the condition of pensioners is still not satisfactory.
They found themselves in an especially complicated situation as
a result of unpunctual payment of pensions early last year. Such
situation was due not only to the banking crisis, but was also
the outcome of social insurance premiums evasion on the part of
employers and employees themselves.
Therefore, amendments were introduced into the Law on Labour Contract
and the Penal Code envisaging more stringent measures to add more
weight to the responsibility of employers for illegal employees,
while social security premiums evasion shall be punishable even
by imprisonment.
As early as January 1996 I submitted to the Seimas for its consideration
a draft for amending and appending the Law on State Social Security
Pensions, where I suggest that the income quotient should be increased
for persons for a long time employed at low-paid positions, also
an additional nursery allowance introduced for occupied handicapped
persons declared as belonging to the Handicap Group I. Unfortunately,
the project is still deposited with the parliament, and I would
therefore urge the current Seimas to discuss and approve it in
the immediate future.
The decision on the pensions to widowed persons must also be made
without further delay. At the moment we are being overflown with
letters from widowed persons ineligible to draw the pension of
their late spouse if the latter passed away before the moment
of the coming into effect of the law.
I am deeply convinced that funds for such pensions would be made
available if the economic entities were paying their taxes duly
and institutions of the state ensured their adequate administration.
Especially
pressing is the issue of legal regulation of the employer and
employee relationship, as well as compliance with security
at work requirements regarding the employees and implementation
of employers' obligations undertaken by them in respect with the
state and social security. The mentioned problems are closely
interrelated. I called for a number of important meetings on this
subject during the last year. Heads of public institutions have
been assigned concrete tasks. Laws regulating the labour relations
were amended, as e.g. more severe measures were introduced for
recruitment of employees wither labour contract etc. However,
the situation still remains unsatisfactory. The employees cannot
enjoy social security guarantees and the trade unions do not ensure
adequate protection of their interests.
As an example of this, we may recall the case of Maþeikiø
baldai joint venture's bankruptcy, when its employees resorted
even to a hunger strike protesting against the failure to pay
wages.
The
number of the unemployed in the country started declining
last year following its rapid increase during the year 1995, and
by the end of the previous year it constituted 109,4 thousand
persons, i.e. it witnessed a 14% annual decrease. The level of
unemployment was reduced from 7,3% in 1995 to 6,2% in 1996. Such
positive developments were produced not only by the positive changes
in country's economic life, but were also the result of the approval
by the Seimas of amendments to the Law on Employment, which was
appended and titled the Law on the Support to the Unemployed.
More opportunities were opened for training of the unemployed,
for giving incentives to their motivation as well as that of employers
creating new jobs. This law establishes that the amount of the
unemployment benefit shall be dependable on the person's record
of service.
Special emphasis is laid on the building-up of the system for
effective rehabilitation of handicapped persons. The year 1996
was declared in Lithuania the year of the Handicapped. The Government
approved a programme for the Year of the Handicapped as well as
a plan of measures designed to implement it and allocated the
necessary resources. Similar programmes elaborated specially for
that purpose were being put into practice by the municipalities
of cities and regions.
The
institutions of social care, accommodating persons with
physical and mental disabilities should be given more attention.
The incapacitated people of Lithuania are lodged there, therefore
the living conditions similar to those of living in a family should
be created for them.
One of the main fields of activity in the sector of social assistance
must be the expansion of network of small institutions of care
aiming to adapt individual residence houses or available premises
for accommodation of elderly people who are lonely or disabled.
Occupation centres must be established which would be able to
employ the disabled persons.
The state and society must take a special interest in the fate
of homeless children. The numbers of such children are growing
rapidly and, unfortunately, only a small number of them are orphans
without both parents. More often than not, the parents of such
children have abandoned their child completely due to various
reasons: either they are deprived of their parenthood rights,
are serving their sentence in the institutions of imprisonment
or are alcohol abusers etc.
Most of abandoned children are brought up in state children's
homes, but recently the foster families taking care of such children
began to appear increasingly.
One of the first stages of child's integration into a foster family
is the building-up of such families and their promotion. The Law
on the Fundamentals of Protection of Child's Rights adopted in
1996 provides for that the state and local self-government institutions
must create equal material conditions to care for a child in the
state institutions and family-like environment. In foster families
children enter into family-like relationships which are maintained
into adulthood, and the children are thus secured their future.
The most serious obstacle for development of foster family care
is the scarce material basis. In a state institution the child
is allocated by the state 1000 Lt per month whereas in a foster
family - only 150 Lt. Another difficulty preventing their free
existence is the reluctance of municipalities to set up foster
families and provide care to them. This is explained away by financial
difficulties. Besides, such situation supports opinion prevalent
among some members of society that children are accepted by families
for the gains of profit.
Late last year I visited myself two of foster families in Panevëþys
and Ðiauliai districts. I was able to find out myself to what
a large extent the life of such a family depends on the good will
of municipal officials. The municipality of Panevëþys
district demonstrates its good will in trying to deal with problems
of such a family. A contrary picture was revealed in the municipality
of Ðiauliai district, which continued to delay registration
of the foster family, failed to transfer the money allocated to
it the Government etc.
In order to deal with such problems the following must be done:
resources must be allocated in the municipal funds for setting
up of foster families and financing thereof; a reserve fund for
support of such families must be established in the Ministry of
Social Security and Labour; regulations on foster families should
be revised and renewed; regional activities of the children's
rights protection agencies should be co-ordinated along social
lines; and interest-free loans should be extended to foster families,
and thus, conditions created for them to build up their future.
In order to implement the Law on the Fundamentals of Protection
of Children's Rights projects amending and appending respective
articles of the Code of Administrative Offences, the Code of Penal
Procedure and the Code of Corrective Measures, as well as the
Family and Marriage Code, the Civil Code, the Civil Procedure
Code and the Law on the Office of Notary Public were drafted which
aim at the improvement of protection of children's social and
property rights. The projects have been submitted to the Seimas,
and their adoption should be speeded up.
The national budget for the previous year did not foresee the
resources to provide for free meals at secondary schools, whereas
funds allocated for that purpose from the municipal budgets were
insufficient. Upon the evaluation of existing situation whence
allowances for children in asocial families do not reach the children,
the National Budget for 1997 envisages an additional 40 million.
Lt allocation to the Ministry of Social Security and Labour to
provide for the meals for children from needy families at schools.
We are planning to draft an essentially new Law on Children's
Custody in the immediate future. Until it is drafted and adopted
the urgent issues on the provisional custody of children must
see immediate solutions i.e. respective amendments must be introduced
into laws and other legal acts in effect at the moment.
The condition of young families must not be forgotten. The sociological
surveys revealed once again that young families are exposed to
material deficiencies more frequently than other members of society.
Extremely complicated for them is the issue of own dwelling. The
Government should give specific attention to prepare a programme
on extension of soft credits for housing for young families.
It
is obvious that the political, economic and social changes taking
place in the country just as in the rest of the world have an
impact on the level of health care of people.
For the second year already fewer people are dying in Lithuania
which leads to a conclusion that the rate of mortality is becoming
stable. The mortality rate of the new-borns is displaying clear
tendencies of decrease, and the same is true about women giving
birth. The Government must prepare a national demographic programme
and submit it to the Seimas.
However, the number of inhabitants of the country is steadily
decreasing, and the main reason for this decrease is the falling
rate of births. In 1996, 36 169 babies were born, i.e. it was
by 2011 infants fewer than in 1995.
Adequate efforts are taken to ensure the necessary prophylactic
of disabilities among children as the surgical orthopaedics for
children is advancing and new methods of treatment and rehabilitation
are applied. However, the indicators of health condition among
the teenagers do not exhibit positive trends as the diseases of
digestive system are becoming more frequent and a number of accidents
involving them occur. The most frequent death causes among the
children of up to 15 years of age are traumas and poisoning.
Evidently, the spread of mentioned diseases among children is
greatly affected by the social environment which, on the one hand
is poor care of children in the families, and on the other - of
hygiene standards in the institutions of education. The situation
with health care is preoccupying not only in respect with the
high-school students, but the academic youth as well. It seems
that the academic youth has been forgotten not only by State Health
Care Supervision Service, but also SODRA state social security
company. The students still cannot enjoy social guarantees and
their recreation and medical treatment have been neglected.
The Government has been making an effort to deal with problems
relating to promotion of health care, prophylactics of diseases
as well as continuity and accessibility of the health care. Administration
of this sector has been decentralised and legal and economic activities
of the health care institutions improved. Though at slow speed,
nevertheless attempts were made to reform the primary health care
as well as enact the institute of the General Practitioner.
However, insufficient attention was paid to the affairs of the
public health care agency. The State Public Health Monitoring
Agency as well as the State Hygiene Inspection were established
only at the end of 1996. It is a pity that the reform of public
health care has been suspended.
The year 1996 was marked by significant achievements in providing
for the legal framework of the health system. Laws on the Patients
Rights and Compensation of Damages to Health, Institutions of
Health Care, Health Insurance, Medical Practices, Stomatologic
Care (Assistance), Control and Prophylactics of Contagious Diseases,
Application of Economic Measures for Violations of the Legal Acts
on Public Health Care, Donorship of Human Blood, Donorship and
Transplantation of Human Tissue and Organs and other were adopted.
Yet the number of laws on health care adopted by the Seimas has
no effect on the course of reform if by-laws are not enacted in
good time. Regrettably, this was precisely the case with Law on
Health Insurance.
However, the progress also depends on the performance of people,
and in this case - on the ability of health care staff to meet
their obligations as professionals as well as citizens. Heads
of health care institutions should take a more active part in
the reform, and make better mediators between the ministry, the
medical staff and the public. The citizens should also assume
their burden of responsibility for their health and support the
reform of health system.
Broader educational effort is needed to explain the new financing
procedure of medical services through the establishing sickness
funds. More active in this endeavour should be the heads of state
and territorial sickness funds. The state sickness fund must ensure
reimbursement of charges for health care services obtained by
the insured citizens from the compulsory health insurance fund
budget through the territorial sickness funds. The Government
should regulate financing of the health care agencies.
I would like to dwell on several other problems.
On 29 March 1996 the Law on the Stomatologic Care (Assistance
) was adopted which regulates the provision of stomatologic care,
as well as the rights and duties of dentists. This issue is especially
urgent and important for population of the country as about 95-98%
of our people are suffering from tooth decay. The actual stomatologic
prophylactics does not exist yet at the moment and the quality
of treatment at the state institutions of health care has become
poor. Unfortunately, it must be admitted that the situation of
stomatologic departments at the state policlinics is deplorable.
Due to the lack of necessary medications and low wages the dentists
are leaving their jobs at the public institutions of health care.
The stomatologic care of children is the issue of particular concern.
Though the programme on prevention of tooth decay for children
has been prepared already, very scarce funds were allocated to
it.
The question of establishment of nursery institutions in Lithuania
is still urgent. Small-sized hospitals are not prospective. The
departments of some city hospitals do not have the necessary facilities
to provide for the intensive medical treatment, therefore they
should in the nearest future be transformed into the hospitals
or departments of sustainable treatment and nursery.
The establishment of the Nursery Specialists Organisation in Lithuania
is a positive step as this organisation brought together nurses,
medical assistants, obstetricians and other employees of nursery-related
sector. At the moment within the system of the Ministry of Health
Care there are about 600 places for sustainable treatment and
nursery of in-patients which are planned to be increased to 2500
beds.
In general, the number of laces for in-patients in hospitals is
too large. Currently per 10 thousand of population we have 107
in-patient places, of which only 70-75% are used. The last five
years saw the reduction of places for in-patients in hospitals
by 10% only. The average price for such a place per day in a general
city hospital is 61 Lt. It must be increased so that envisaging
shorter terms of treatment in hospitals improved and intensified
treatment is ensured.
Some of health care services will have to be transferred from
hospitals to general practitioners the number of which will grow,
of course.
In 1996 we established the State Health Care Issues Commission
and the State Service on Alcohol and Tobacco Control. The Council
on Compulsory Health Insurance was also set up. Establishment
of the National Health Council is still being delayed.
The State Pharmaceuticals Control Service at the Ministry of Health
Care began operating. The Pharmaceutical Enterprises Inspectorate
was re-established which controls pharmaceutical activities of
the pharmaceutical industries, medicine supply enterprises and
chemist's stores; it also takes a large interest in pharmaceuticals
quality control and ensures a regular supply of medicines to the
population.
The prices of medicines continued to grow in 1996 and during the
first half year increased by 6,5%. The imported medication is
expensive, whereas country's pharmaceutical industry is still
outside the Government's focus of attention. While development
of this industry is one of the principle instruments for solving
the problem of provision of cheap and good quality medicines for
the population.
New rules on compensation for medicines-related expenses must
be drafted without delay.
In 1996 insufficient attention was paid to the issues of improvement
of health care quality, introduction of rules on reimbursement
for medicines for treatment at the out-patient's departments as
well as reconstruction of health care institutions. Licensing
of the health care institutions should be speeded up in view of
impending implementation of Law on Health Insurance.
Though positive moves can be distinguished in the health care
sector, a lot is still to be done. Problems arise in training
and re-qualifying of medical staff as well as strengthening of
health care at municipal and regional level, restructuring of
health care agencies, also co-ordinating the medical science and
developing it, and finally, implementing the laws on health care
in effect already.
IV.
LAW AND ORDER AND LEGAL ENFORCEMENT
The main issues for reform of the legal system are: building-up
of national system of law and its integration into the European
Community as well as operation of the institutions of justice
and legal enforcement.
These aspects are directly inter-related. On the one hand, functioning
of the institutions of justice and legal enforcement is based
on laws and other legal acts, on the other hand, these institutions
should ensure that laws and other legal acts are abided by and
implemented.
In light of Lithuania's integration into the EU it is important
to have well-considered and stable laws, fulfilling the interests
and needs of all members of our society, protecting and safeguarding
human rights and freedoms as well as meeting the principles and
standards of international law.
Last year the Seimas adopted a significant number of important
laws regulating the settlement of various social, economic, financial,
legal and other issues.
As in the earlier years, the codified acts of law were being extensively
amended and appended, namely, the Code of Administrative Offences,
Penal Code, Civil Procedure Code, Penal Procedure Code and Civil
Code. In general, our legislation still maintains a negative tendency
of frequent change of operating laws. Obviously, this is partly
the result of hasty drafting of laws as well as disregard of the
opinion of scientists and other experts.
In order to safeguard the stability of laws and improve their
quality the drafting teams should make use of the services of
groups of qualified experts which would include specialists of
different fields working for the interests of entire state and
society, rather than a single agency or party.
The future of Lithuania's national legal system lies in its harmonisation
with the European Union law. Aspiring to integrate into European
structure we must create the legislation in accordance with the
EU requirements. For that end we prepared and submitted to the
European Union respective documents on co-ordination of our national
laws with requirements of this Union, as well as undertook ratification
of various conventions of the Council of Europe with provisions
of which our legal acts must be harmonised. For example, in 1996
the Seimas ratified Paris Convention for the Protection of Industrial
Property, Berne Convention for the protection of literary and
artistic works, European Convention on the Legal Status of Children
Born out of Wedlock of 1975, European Convention on the Conservation
of European Wildlife and Natural Habitats and other international
instruments. The integration of our national legal system into
the common European legal system must remain a priority task for
the legislative branch in the future.
More consideration should be given codification and systematising
of laws. A number of codes in effect at present, though they have
been amended and appended, were adopted in the Soviet period.
The parliament of the previous office did not adopt the new Civil,
Civil Procedure, Penal and Penal Procedure Codes. The only occasion
for rejoicing is that the drafting groups have already accomplished
their tasks and handed in the projects for consideration of the
Seimas and the public. I am convinced that adoption of these codes
of civil and penal law will add more stability to our legislation.
Thus, I would encourage the Seimas to approve these codes without
delay this year.
However, the practical benefits of laws are revealed only when
they are abided by and their proper implementation and application
is ensured. Violations of laws or their inadequate application
is predetermined by both objective and subjective reasons. We
should aim to draft the long-term legal acts reflecting not only
the life of today's society but also the needs of the future .
Should it be considered normal that a newly adopted law is subjected
to amendments several times a month? Even officials of institutions
of state power, governing, supervision and legal enforcement directly
responsible for enforcement of laws, let only ordinary citizens,
can hardly find their way in the multitude of laws and their amendments.
It is equally important to secure a uniform application of laws.
I hope that the Supreme Court of Lithuania shall more actively
undertake formulation of uniform practices of court in the application
of laws.
I would like to discuss further on activities of the institutions
of justice and legal enforcement forming a constituent part of
the legal system.
Courts
are one of the most important institutions in the system of justice
and legal enforcement. As from June 1996 the courts have been
authorised to impose a preventive measure which is arrest. Adoption
of Law on the Institutions of Mortgage created a new office, that
of the mortgage judge. According to the new provisions of the
Penal Procedure Code being drafted at present the judges shall
be granted more rights to be exercised during the pre-trial period
which should lead to creation of the corps of pre-trial investigation
judges functioning in practice.
As the impact of courts on the life of society is becoming increasingly
more evident thus higher standards are established as to quality
of performance and functions of courts as well as qualifications
and responsibility undertaken by judges. Last year the Seimas
approved amendments to the Law on Courts proposed by me envisaging
that a person applying for an office of a district court judge
with no experience of work in courts must have one year of practice
in court. It is my hope that this amendment will lead to improvement
of qualifications of judges and the quality of their work.
Procrastination of hearings in court raise the indignation of
population. One of the reasons for such procrastination was an
uneven distribution of work load between the courts of different
layers. Thus, initiated by me, last amendments were introduced
by the Seimas in Law on Courts as well as the Codes of Civil and
Penal Procedures envisaging redistribution of the flow of appeals.
However, the above mentioned amendments of laws alone will be
insufficient to settle this problem. The Ministry of Justice should
exercise a better control of investigation of cases by courts.
Strict measure of punishment should be applied to judges procrastinating
investigation of cases.
Several other problems are related to the system of judiciary
and improvement of its functioning. Not all judges perform their
duties conscientiously and ensure the adequate level of professionalism.
Last year penal proceedings were instituted against two judges
from the Area Court of Kaunas city for accepting bribes while
disciplinary proceedings have been instituted against twenty other
judges for various violations. However, it is my view that neither
laws nor the disciplinary measure will help to improve the performance
of judges and build-up the confidence of people if the members
of judiciary themselves do not realise that to assume the office
of a judge means to serve the people and keep to the letter and
spirit of law.
I
want to voice certain criticism in respect with institutions of
legal enforcement directly fighting with organised crime, and
first of all the Ministry of Interior and the police
structures subordinate to it.
The crime situation in Lithuania is no exception in the context
of many other Baltic and Eastern European countries undergoing
a transformation from a totalitarian system to a democratic one
with market economy. The problems of crime are urgent for Western
states as well which, however, is no consolation for us. The crime
in this country has seen no improvement so far. The crime rate
continues to grow while the crime itself begins to assume new
and more dangerous forms and become more organised and professional.
The issue of our particular concern are crimes committed by minors,
violence against children, smuggling, extortion of property, as
well as the spread of drug abuse and prostitution.
As a separate subject I would like to tackle the problems of control
and prevention of crimes committed by children and youth as well
as the issue of protection of child's rights. Crimes committed
by children and young people occupy a specific part in the crime
situation; they are also one of the major social and legal problems
encountered by the state. Almost half (45%) of all persons committing
crimes are people of fourteen to twenty four years of age. Majority
of young people committing crimes do not have any record of study
or employment. More and more often among violators of laws are
children of up to 14 years of age. As a rule, crimes committed
by them are marked by exceptional cynicism and brutality. Use
of narcotic, psychotropic and other toxic substances is spreading
at a threatening rate among teenagers.
The main reasons for crimes committed by young people are the
increasingly unstable families, spread of alcoholism, declining
prestige of education and the difficult economic situation in
the country. These processes predetermine growing indifference
of parents towards education of their children and decline of
morality.
A special prevention programme must be prepared in order to reduce
the rate of crimes among young people and its implementation should
be ensured. The family, school, police, non-governmental and health
care institutions as well as the Church should co-operate in concerted
effort to solve the problems of education and protection of rights
of children and youth. During the last year people of Lithuania
have been horrified by reports in media on the brutality of adults,
often mothers and fathers (against their children). Children have
been beaten, tortured, starved, abused sexually, raped and even
killed. In my opinion, more stringent penal measures for violence
against children must be introduced. Therefore, I have proposed
respective projects amending and appending our Penal Code.
The spread of crime and its prevention is not just a legal problem,
and without doubt, it pertains not only to the field of activities
of the legal enforcement institutions. It is also a part of our
economic, social, political and legal problems. However, it still
must be admitted that the largest share of responsibility for
it must be assumed by the said institutions.
The general conditions of legal enforcement to a greatest extent
is predetermined by performance of the Ministry of Interior. Different
measure have been employed to improve the functioning of agencies
constituting this system which, however, did not lead to the expected
results. It became necessary to suggest to the Minister of Interior
the termination of his office, as well to remove from the offices
the head of one of the central agencies, the Chief Commissary
of the Border Police Department. The person, who assumed the responsibilities
of minister, a civilian as it is requested in the Constitution,
could not introduce essential changes during a short period. In
my view, one of the main aims of reform of the interior is the
transformation of the Ministry of Interior's system into an institution
of strategic administration able to guide and control functioning
of police commissariats and other agencies subordinate to it.
Until now such efforts have not been always successful which was
revealed after the events in Panevëþys that alarmed
the nation late last year. The police structures and the prosecutor's
office of this city failed to give respond adequately to the situation
as the criminal proceedings were instituted only on the account
of murder fact without due account being taken of the fact of
property extortion, and no measures to restrict the freedom of
the suspected attackers were imposed while the latters could move
unobstructed from one institution of health care to the other
and finally go into hiding. The Senior Commissary of the city's
police commissariat was dismissed from his office, while other
police officers and officials of the prosecutor's office were
punished. More than twenty persons were killed in this city during
the last three years. There were cases when people were executed
in the middle of the day, buildings exploded and cars stolen.
The Panevëþys police and Prosecutor's Office were able
to disclose only few of these crimes, thus they lost the confidence
of people. One is led to assumption that the crime situation in
this city has gone out of control. Only the lawful, determined
and fruitful actions of police structures and the prosecutors'
office may restore the confidence of people in them.
I hope that the new leadership of the ministry will be able to
appraise the gravity of situation that we should be looking forward
to better results of performance of Ministry of Interior agencies
as well as decline of cases of collaboration of police officers
with criminals, taking of bribes, neglectful performance of prescribed
duties, inadequately operative respond to the statements of citizens
and use of unlawful measure influence.
The situation on the Lithuanian state border remains the source
of concern since the level of state border protection is poor
and smuggling shows no evidence of decrease. The largest amounts
of smuggled goods are brought in directly through customs check
points by way of forging documents and bribing officials. Such
situation was revealed as a result of actions organised at the
state border by the State Security department. Officials of this
department performed several successful operations during last
year which enabled not only to seize large shipments of smuggled
goods, but also disclose mechanism of their transportation and
a number of its organisers, executives and officials who collaborated
with them. Over 500 tons of spirit and 50 tons of other alcoholic
substances as well as a shipment of cigarettes worth 1,5 million
Lt. have been arrested. The guilty persons must face criminal
charges. Seeking to protect economic foundations of the country,
the State Security department has been active not only at the
state border. Significant results were achieved investigating
cases of corruption involving state officials, violations of laws
in privatisation of state property and illegal banking activities.
Certain efforts were taken to ensure the security of objects of
strategic importance and to identify persons illegally storing
radioactive materials and explosives, and bearing firearms and
ammunition. A lot has been done in carrying out of other functions
prescribed to it by law.
Unfortunately, we cannot speak about successful efforts of the
customs and border police structures in prevention of smuggling.
Those institutions are unable to eradicate corruption involving
their own employees. The Customs department failed to computerise
the border customs points and connect them into a single network.
Provision of technical facilities for protection of state border
has been unjustifiably delayed by the Border Police department.
Though an international tender was announced, however, the above
mentioned problems were not settled during the previous year either.
It is necessary to realise one principal issue that is that minimal
number of officials and a maximal amount of technical equipment
must be involved in the protection of border, i.e. the influence
of officials in controlling the flow of goods, transport and persons
must be reduced to minimal.
However, fight against smuggling does not rest solely with agencies
functioning at the border. The smuggling would become purposeless
given there was no system of realisation of smuggled goods within
the country. Whereas the system of realisation of smuggled goods
in place at present is astoundingly efficient. No less surprising
is the inactivity of agencies supposed to fight this vice. Upon
the arrest of shipments containing smuggled goods only the executors
are punished whereas the organisers of this illegal business most
frequently remain unpunished and continue developing their activities.
Police structures and the prosecutor's office do not display a
too great enthusiasm to disclose them. Thus, one may have an impression
that officials of the legal enforcement institutions take an interest
in smuggling only insofar as it can yield material gain, the bonuses.
Inefficient is also the work of officials of police departments
investigating economic crimes. It is no secret that sometimes
that officers from the guards police themselves escort the shipments
in transit to places determined by criminals and 'closes their
eyes' to cases when the shipments are misdirected into solitary
farmsteads or warehouses of smuggled goods. However, we will fight
the smuggling employing repressive measures alone. I think that
certain economic adjusting measures must be introduced to render
this business unprofitable.
Together with other financial and economic crimes, smuggling forms
the basis for the shadow economy. Existence of certain indicators
lead to assumption that the shadow economy in our country has
been developed to a dangerous extent. It is the economic pillar
of organised crime. Significant reduction of such crimes would
constitute a serious attack on the criminal world.
It is not a secret that a large number of economic entities and
natural persons show reluctance to pay the state, and evade taxes
or pay only a part of them. Tax collection is administered poorly
and for that reason it was necessary to correct the National Budget
of 1996. However, both administrative and penal prosecution of
persons failing to pay the taxes by way of different methods is
conducted unsatisfyingly since last year saw a decrease in such
cases of criminal prosecution, disclosure of such crimes and punishment
of guilty persons. The police department on investigation of the
economic crimes is inefficient and the Tax Inspectorate is not
active.
The
Prosecutor's Office assumes one of the central roles in the
administration of justice and ensuring law and order. According
to the Constitution and other legal acts the public prosecutors
carry out criminal prosecution, prosecute criminal cases on behalf
of the State and supervise the activities of the interrogative
bodies. During 1996 the Prosecutor's Office prosecuted 12 204
criminal cases on behalf of the State, lodged 666 complaints and
230 appeals. The bulk of such complaints and appeals dealt with
mild nature of punishments and necessity to apply laws envisaging
responsibility for graver crimes or the cases of ungrounded acquittal.
In comparison with 1995, in 1996 the number of persons against
whom cases were dismissed on the grounds of rehabilitation decreased
by 45%, whereas number of those acquitted on the same grounds
decreased by 24%.
Principally new divisions for fight with organised crime established
in the Prosecutor's General Office and the Area Prosecutor's Offices
achieved certain positive results. An increasingly greater number
of organisers and leaders of organised criminal gangs face criminal
prosecution.
Nevertheless, actions of interrogative and pre-trial interrogation
bodies to counter the organised crime are not co-ordinated adequately.
The institutions of legal enforcement supposed to be functioning
as a smooth mechanism sometimes enter into a competition with
each other, are unable to define their competencies, conceal information
from one another and attempt to fight with organised crime each
individually instead of uniting their forces. It was necessary
for me to issue a decree in order for the Prosecutor's General
Office, the Ministry of Interior and the State Security Department
to set up joint working groups for fight against organised crime
and corruption. Such groups have been established already, however,
heads of the above mentioned institutions still find it difficult
to appraise the indispensable nature of such co-operation.
Investigation of cases on violations in commercial banks is marked
by lack of operativeness. For the past year in thirty three such
cases criminal prosecution was instituted, however, only in thirteen
of them the preliminary investigation of cases was completed.
This is partly the result of inadequate preparation of evidence
collected during the preliminary investigation which is the basis
for institution of criminal proceedings, the large-scale nature
of tasks, prolonged auditing as well as difficulties in seeking
out the debtors or locating squandered or hidden property. The
heads of the Prosecutor's Office and other institutions of legal
enforcement must resort to all available measures to speed up
the investigation of the said criminal cases and their referral
to court.
The institutions of legal enforcement should change the strategy
of their activity and concentrate more on the prognoses of criminal
processes and prevention of law offences and involve general public
into such efforts. It is obvious that society's help and co-operation
is indispensable for reduction of crime rate. The police structures
must give up the still characteristic to it repressive attitude
towards citizens and instead of attempting to command society,
aspire to service and protect it against attempted crimes since
police is the power of society itself and its aim and function
is to protect the lawful interests, freedom and security of an
individual, who is a member of society. Such requirements are
enshrined in the European Charter of Police Structures and these
requirements are raised to the police, just as the other institutions
of power, by the Constitution of the Republic of Lithuania. Therefore,
in my view, it would be worthwhile to adopt a new Law on which
would comply with requirements of a democratic nation and create
the preconditions for the Lithuanian police to enter a qualitatively
new level of performance.
V.
EDUCATION. SCIENCE. CULTURE
Education is the engine of country's economic, social, cultural
and political advancement. In order to reveal the creative powers
and abilities of youth, adequate material basis alongside with
qualified teachers are needed. Applaudable occasions last year
were opening of new secondary schools in Jaðiûnai, Rudamina
and Semeliðkës in the Eastern part of Lithuania, as well
as the Utena Grammar School, secondary school in Alytus and a
high-school in Ðiauliai.
The year 1996 saw a further implementation of the projects on
computerisation of Lithuania's secondary schools, schools of vocational
training and higher education: from 1500 computers at the start
of the year their number increased to 3700 by the end of the year.
Besides, the initial installation of computer software was completed
and related literature published.
In the 1996/97 school year the primary school has been in fact
is working on the basis of a reformed teaching programme. The
newly drawn up programmes on curricula of taught subjects offer
wider opportunities of differentiated studies. New programmes
corresponding to the requirements of education reform have also
been introduced for students of 5th grade. During 1996/97 seventy
three new text-books and seven original text-books for children
with disabilities were issued. Last year also saw establishment
of the Examinations Centre which would aim to prepare a new system
of examination.
The Lithuanian teacher training system is also being improved
and nearly one half of all teachers in secondary schools have
already been certified and granted a higher category of qualification.
However, there still is a lack of 1,5 thousand teachers specialists,
especially teachers of foreign and Lithuanian language. It must
not be forgotten that 1996 was marked by hot debates in the Seimas
of the Republic of Lithuania and the teachers community on the
aims of reform of education and its course. One of the reasons
for this being the fact that the Law on Education was approved
by the Supreme Council as early as 1991, however, the legal enforcement
of provisions of Education Reform programme is still pending.
The contents of teaching should be reformed according to the project
on the reform of vocational training (PHARE), which aims to prepare
new programmes of teaching for nine groups of professions classified
as preferential, ensure further training of teachers as well as
renew the teaching facilities. At present twenty nine institutions
of vocational training are involved in the implementation of this
project. They are already using the teaching programmes which
conform to the European Union standards.
The curricula of higher schools were renewed by 60% last year.
The schools of higher learning link the prospects of their future
with the sector of non-university higher learning of the European
Union countries. However, the building-up of the non-university
sector in the country has become a prolonged process. The schools
of higher learning should reach a speedier agreement on the concept
of higher non-university education.
In comparison with 1995 the entrance competition into the institutions
of higher learning increased: in 1995 the competition of those
applying to enrol into the institutions of higher learning was
in average 2,3 applicants per place, whereas in 1996 - 2,8 applicants
per place. It is evident, however, that the Government must issue
a very responsible and grounded statement about the number specialists
needed from specific fields and secure financing of their training.
The institutions of higher learning should compete with each other
to be the executives of such orders. At present the universities,
academies and institutes are increasingly attempting to broaden
the training of specialists in different fields despite the fact
that other schools of higher learning are already training specialists
for particular occupation. The Conference of Rectors does not
take any co-ordinating effort whatsoever as to the number of persons
enrolled in the institutions of higher learning, while some lecturers
are even giving lectures on the same course at several schools
simultaneously.
The material basis of the institutions of higher learning was
improved. The Klaipëda University created just recently on
the basis of separate departments and divisions was faced with
the painful problem of premises. Last year with allocations from
the budget and funds provided by sponsors it managed to renovate
a new campus and now the former barracks are housing the university
centre.
Though
gradually, however, yet majority of Lithuanian scientific institutions
are adjusting their activities to the new requirements of independent
Lithuania and undertake both the fundamental and applied research.
The publication of Lithuanian Metrics continues, preparation of
the Great Lithuanian Dictionary is almost completed, and the 11th
volume of the Collection of Lithuanian Folk Songs, Songs of Marriage
(fifth book) was issued. The Institute of Biotechnology achieved
new prioritative results on a global scale in the investigation
of the DNA phenomenon of restriction-modification. Application
of genetic engineering methods enabled to construct an especially
effective biologically active producents of proteins. The photometry
system created by Vilnius astronomers was successfully applied
in the astronomy observatories of New Zealand and Australia for
astronomical observations of constellations of stars of the Southern
hemisphere.
The scientific institutes, centres and faculties are trying to
integrate funds from various sources, as well as the foreign aid
allocated for the implementation of various programmes. Integration
into the European Union programmes is taking place on an increasingly
wider scale. For example, the scientists of Vilnius university
are participating in TEMPUS (15 projects), COPERNICUS (4), INCO-COPERNICUS
(3) and PECO (2) programmes. Resources of the State Science and
Studies Foundation are more effectively utilised for the implementation
of the inter-institutional scientific programmes such as Laser
Photosensibilisation in the Therapy of Tumours, Resources of Cultured
Plants, National Metrological Supply Programme and others. The
mathematicians, specialists of informatics and linguists began
implementing a par of the 1996-2000 programme on usage and development
of Lithuanian language and are compiling the database of computer
terms . At the moment, twenty six scientific institutes, centres
and departments are involved in the implementation of national
programme on the Ecological Sustainability of Lithuania. Undertaken
by thirteen scientific institutes, centres and departments implementation
of the programme on the Nuclear Power Engineering and Environment
is underway. Of particular importance are the efforts of scientists
of Lithuanian Power Engineering Institute on investigations of
security of Ignalina Nuclear power plant, ensuring its metrological
supply and analysing and working out the models on the prospects
of development of Lithuania's power engineering and its economic
optimisation. Two more national scientific programmes were launched
in 1996 : on Geology and Fundamentals of Molecular Technology:
genetic structures, functions and regulation of genetic impact.
Certain progress can also be pointed out in the strengthening
of material basis of Lithuanian science. For several years already
the construction of storage facilities for Lithuanian Language
Institute has been taking place. Though not without difficulties,
however, after several years time the security of priceless Lithuania's
property, monuments of its linguistics and folkloristics as well
as the most valuable manuscripts will finally be ensured. I hope
that this year the Government will give more consideration to
the science.
The
1996 was the year of particularly intensive life of literature,
music, painting, other arts and the culture in general.
We can be proud of a significant number of artists of great talent
properly representing our national culture in the country and
abroad. The Lithuanian State Chamber Orchestra, Lithuanian National
and State Symphonic Orchestras, Kaunas State Choir, our opera
and ballet stars, other artists gave successful and numerous performances
and concerts in the most famous concert halls of the world. They
were awarded various awards, also forged new contacts with creative
community elsewhere and signed new contracts. As a pleasant surprise
come the multitude of original verse and prose books representing
various genres of literature, art exhibitions, folklore festivals
as well as festivals of ethnic culture, those of towns and cities.
The plentiful of events point out to the activity of creative
community and also to the popularity their art enjoys with the
audience. In particular important is the fact that concerts, performances,
exhibitions and other cultural events are held not only in Vilnius,
Kaunas or other large cities , but in towns and rural areas as
well.
The state is gradually undertaking the support of preferential
programmes. An event of particular significance was implementation
of the Route of Baroque programme which gave a meaningful shape
to many cultural initiatives. We were able to come together and
commemorate the 450th anniversary of the first Lithuanian book,
the Catechism by Martynas Maþvydas. We still find ourselves
under the impressions of many events held, beautiful scientific
manuals issued, verses of poets read and festivals organised in
all the remotest corners of our country on this occasion. We are
happy that not without the efforts of friends of our book and
our culture this anniversary was widely commemorated all over
the world.
We have a unique Old Town of Vilnius which two years ago was put
on the World Heritage List as a result of attempts of the United
Nations Education, Science and Culture Organisation (UNESCO).
Efforts should be united to preserve, revive and utilise it, moreover,
that there are opportunities to obtain a loan from the World Bank
for this purpose. The experts of Lithuania aided by consultants
from Denmark and Great Britain prepared a project on revival of
the Old Town. In accordance with the Law on Protection of Immovable
Cultural Properties, the rules on protection of the Old Town of
Vilnius are almost completed.
The end of last year saw a restoration of buildings of the Old
Armoury of the Lower Castle in which the National Lithuanian Museum
on the History of State and Culture is planning to open new exhibitions
in the nearest future. Alongside, the archaeological and architectural
investigation of the Palace of Rulers continues, and the preliminary
building-up of a project is taking place. Restoration and consecration
of the sculptures on the old Archicathedral was an event of genuine
spiritual festival. Another occasion for rejoicing is the final
unveiling of the long- awaited sculpture of Gediminas.
Kaunas decorated itself with memorial sculptures of the Presidents
of the Republic of Lithuania Aleksandras Stulginskis, Kazys Grinius
and Antanas Smetona at the houses of the former President's Office.
I assess positively adoption of Law on the Associations of Artists,
which establishes legal ownership of their property - the indispensable
precondition for their independence and provision of support to
their members. I think that the Seimas and Government should put
more effort to increase the remuneration of artistic groups, high
class performers and actors as well as other employees of cultural
sector and settle the issue of their pensions.
Manifestation of culture entails not only the creative activities,
but also functioning of the different cultural institutions. According
to the results of social surveys, library is becoming an important
centre of education and culture receiving large numbers of visitors.
As a result of the rise of prices of different publications, many
find library the only place where they can access different publications
and periodicals. Unfortunately, the libraries are unable to ensure
adequate collection of scientific literature and fiction as well
as periodicals in Lithuanian and foreign languages. During the
seven years of independent existence not a single library has
been constructed in Lithuania. Opening of construction of the
new library for Vilnius University is still being delayed. Therefore,
in the nearest future we must create an efficient programme on
development of library and information network.
I have mentioned the issue of representation of our culture abroad,
but would like to point out that it could take place on a wider
scale. The Ministries of Foreign Affairs and Culture should co-ordinate
their efforts in promotion of cultural exchange and introduction
of Lithuania, its history and culture to the general public in
other countries.
Alongside with the many significant events and facts of our cultural
life one also comes across the anti-cultural manifestations. Under
the guise of trendiness and freedom, violence, brutality and disregard
for the norms of morality are being propagated by such anti-culture
which tends to assume a more aggressive character. We can resist
it only through explicit orientation of society and the state
towards the riches of national culture, traditions and new values.
Regrettably, as a result of a contradictory standpoint of the
Ministry of Culture, the Cultural Congress which was held on 29
June did not produce adequate effect as it could have given the
central guiding lines of our cultural policy.
We are still concerned about threats to our native language. The
indignation of people with distortion of Lithuanian language signals
that schools of all levels, the mass media and the governmental
institutions must give due consideration to the issue of culture
of native tongue.
In view of approaching one thousandth anniversary of mentioning
of Lithuania's name (2009) we should bring ourselves together
in order to appraise the traditions of our old statehood, to define
the sources of our national culture and our identity. This anniversary
should be celebrated by states, it should bring the states together
and consolidate the collective and individual initiatives.
The
greatest sports event of last year were the XXVI Anniversary
Olympic Games in Atlanta. As many as 61 Lithuanian sportsmen participated
in the Games and were rather successful. Our men basketball team
was a winners of the bronze medal while several athletes were
among the top six.
The Lithuanian athletes improved the world record (in triathlon),
they won silver in the world championship (women cyclists), and
Þuvëdra sport dance group from Klaipëda
was a winner of silver medals in both European and world championships.
Our handicapped sportsmen performed outstandingly in the Paraolympic
Games in Atlanta. The representatives of Lithuania returned with
11 medals, 3 out of which were golden!
It is a pleasure to see Lithuania hosting the international sports
events more and more often. Such occasions do not only present
nice events for people of our country, but they also render the
opportunity for us to show our country to the world. Among other
events the World Championship of Latin American sport dance groups
held in Vilnius, the World Championship of Ice Hockey Group C
held in Elektrënai and Kaunas, the Championship of Ultra
Triathlon in Panevëþys should be distinguished. In
1997 Lithuania will host one of the major sports events in Europe,
the Second Games of the Baltic Sea States which would involve
participation of teams from Denmark, Estonia, Latvia, Poland,
Russia, Finland, Sweden, Germany and Lithuania. The teams will
consist of outstanding sportsmen from these countries. Therefore,
the task of preparation for these games must be undertaken not
only by the sports organisations, but it should be treated a matter
of national prestige.
VI.
NATIONAL SECURITY AND DEFENCE
The ultimate task of our state domestic and foreign policy is
to ensure Lithuania's national security. National security can
be guaranteed only by providing conditions for a free and democratic
development of the nation and the state, by safeguarding and defending
independence of the Lithuanian state, its territorial integrity
and constitutional order. These are the guiding principles of
the formation of our national defence policy. The main defence
policy principles have already been formed. We stated them officially
in the Discussion Document on NATO enlargement, where two essential
and complementary objectives of Lithuania's defence policy were
outlined: to create a defence system for Lithuania which would
be able to put up effective resistance in the case of armed attack,
and to seek interaction with NATO forces. For this purpose the
Lithuanian armed forces are already being prepared in line with
NATO standards. In 1996 an individual Lithuania's "Partnership
for Peace" was prepared and adopted. Last year Lithuania
was judged to be one of the most active partners in joint NATO
events. Lithuania participated in 23 joint exercises, three of
which took place on the Lithuanian territory, and in over one
hundred other partnership events. It has become a tradition to
conduct joint training not only with the Latvian and the Estonian,
but with the American, Danish and Polish servicemen.
Participation in peace keeping operations is another priority
direction of the integration into the European security structures.
Our soldiers were highly commended by NATO and Danish military
commands. During the peace enforcement mission in the Balkans
Lithuania paid the highest price - a soldier's life. Despite of
this, Lithuania is resolved to continue this noble mission and
be not simply a security consumer but to disseminate it actively.
In 1996 our participation on this mission was expanded. In October,
a Lithuanian platoon which served within the Danish battalion
in Bosnia was replaced by a company. In my opinion, this testifies
to our ability to fulfil our obligations to the European and,
simultaneously, to the Lithuanian security.
Last year regional co-operation was developed further. This is
very important for the enhancement of security.
Lithuania has accomplished successfully all the work on the formation
of the Joint Lithuanian, Latvian and Estonian Peace Keeping Battalion
(BALTBAT) as was planned for 1996.
Consultations of experts on the creation of the Regional Air Space
Control System initiated by the United States were continued.
The instalment of the sea surveillance system supported by Sweden
is about to be completed. Its command control and communications
centre will be based in Klaipëda.
A foundation has been laid for the formation of a joint Lithuanian-Polish
battalion.
Preparatory work has begun for the creation of a joint Lithuanian,
Latvian and Estonian naval formation (BALTRON) intended for mine
clearing in the Baltic Sea. Lithuania is a co-ordinator of the
project.
In the field of international military co-operation there are
tangible positive results, while they are more difficult to see
in the strengthening of the national defence capacity. Normal
functions of the national defence system were hindered by a slow
development of the legislation and insufficient and inconsistent
funding.
The laws on the National Defence Service, Military Conscription,
and Mobilisation and Reserve adopted at the end of 1996 created
a legal basis for a proper functioning of national defence and
the all the defence system. There is still much to be done in
the drafting of legal acts dealing with the national defence system,
nevertheless, I would like to believe that the ice has moved.
There are other improvements as well. An especially big improvement
was made in air space surveillance. An up-to-date intelligence
information centre was installed with the Czech equipment. Information
can be sent to this centre automatically from all radar sites
that operate within both civil and military systems. We believe
that when we expand the radar surveillance perimeter with the
help of Polish radar systems which have already arrived, we shall
have an efficient and complex military and civil air space control
system.
While strengthening Lithuania's defence capacity, an evident advancement
has been made in equipping the armed forces with anti-tank weaponry
and Western communications equipment, and changing the transport
system. The first few artillery subunits have been formed. It
is time to think about an air defence system.
However, the National Defence Ministry should bear its share of
criticism for not having taken measures to establish a foundation
for a centralised equipment maintenance and fuel supply system,
as this caused unnecessary waste of large funds.
The issue of the creation of military industry was not dealt with,
although Lithuania's industrial capacity is sufficient to supply
the armed forces with our own ammunition, explosives, dummies
and other means. It is especially important to discuss the issue
of our own cartridge production.
I am pleased to hear that Lithuanian servicemen take an active
part in international military exercises. However, only a small
number of them did, while the main emphasis should be put on the
combat preparedness of the whole armed forces. Last year there
were exercises on the coast at the armed forces level and staff
exercises at all levels. This is not sufficient, though. It is
inexcusable that issues of mobilisation and preparation of the
mobilisation reserve are being dealt with only now.
I am pleased that during the debates on the budget of 1997, the
Seimas decided to increase considerably budget allocations for
national defence. The law on the Basics of National Security adopted
in December last year proves Lithuania's resolve to create an
effective national defence system.
The major changes that began in the end of the nineties in international
relations are modifying the political structure of our Old Continent,
the main feature of which is a more profound economic and political
integration, respect for lasting democratic values and human rights.
Not long ago another three sates - Austria, Finland and Sweden
- hoisted flags of the European Union. As many as ten Central
and Eastern European states have signed the Association Agreement
with the European Union. It is likely that soon the first Central
European states will begin their negotiations on the accession
to NATO. Despite complicated circumstances and disparities, the
strategic partnership between the West and Russia is expanding.
It is perhaps for the first time this century that our states
do not feel any military threat and, therefore, can focus their
main attention on economic and social problems of their respective
countries.
Lithuania, as an integral part of Europe, not only feels constant
impact of the unfolding processes but takes an active part in
international politics. This is manifest through the activities
at various international organisations where vital Lithuania's
interests are presented or defended, the expansion and intensification
of bilateral state relations through various initiatives, and
active co-operation within regional structures. All this consolidates
the country's political, economic and military security, creates
favourable conditions for the development of the economy and,
eventually, for the welfare of all our citizens.
This is how I would describe in general features the background
against which we promote our country's interests and seek their
implementation.
I would like to single out once again the main elements of the
foreign policy strategy, which have been stable ever since the
restoration of Lithuania's statehood, and every year their implementation
requires more vigorous involvement of all the state institutions.
These elements are:
to integrate fully into the European and North Atlantic political,
economic and security structures;
to ensure and develop good and constructive relations with the
neighbouring states;
to pursue positive and mutually beneficial co-operation with all
the democratic and friendly countries;
to develop regional co-operation of every kind and proportion.
These main tasks of our foreign policy are determined by Lithuania's
geopolitical situation. At the same time they are the goals of
our sate, as it is maintained often that a country's foreign policy
is determined by its internal policy. Therefore, not only our
short-term future will depend on it but Lithuania of the twenty
first century.
Today, by making a brief summary of our foreign policy of the
last and previous years, I can assert that in general Lithuania
does not have major unsettled political problems in relations
with other states. However, just their absence does not make us
feel complacent.
In its foreign policy the Lithuanian Government as well as our
diplomatic corps have to deal with one issue - to seek strong
support from other states to ensure our security and integration.
It is necessary to settle the problem of visa free entry for the
Lithuanian citizens to the main Western European countries, intensify
negotiations on joining the Schengen agreement. Special attention
must continuously be given to the promotion of economic co-operation,
conclusion and implementation of agreements, improvement of investment
climate in Lithuania.
Historically and culturally our state belongs to the Western civilisation,
living by its values and ideals. It sees its future in the family
of democratic and prospering European states.
Therefore, one of the major priorities of our foreign
policy is a full-fledged membership in the European Union.
On June 20 last year , the Seimas, having amended Article 47 of
the Constitution, ratified the Europe (Association) Agreement.
So far only the European Parliament and eleven EU member states
have ratified it. At Lithuania's initiative, the Baltic states
issued a joint letter urging the EU leadership to speed up in
other countries as well the process of ratification of Europe
Agreements between the Baltic states and the European Union.
Lithuania together with Poland submitted a joint initiative on
the intensification of a political dialogue between the EU and
the associated countries. Our partners showed much interest in
this initiative.
Lithuania filled in the questionnaire of the European Commission
in good time. On the basis of the answers, the Commission will
formulate its opinion about the state of preparedness of our state
for the EU membership. Even before the final judgement on the
answers is passed, we can already say that one of the most important
remaining problems is the inconsistency of our laws with the requirements
of the European Union. Quite often laws are drafted in the Government
and are adopted rather hastily in the Seimas. These institutions
should make use of the experience of the European countries and
create new or transform the existing administrative structures
necessary for the harmonisation and implementation of laws.
Lithuania has constantly been focusing on co-operation with the
European Union in the field of law enforcement, especially with
respect to illegal migration and organised crime. I spoke about
these problems in December last year in Dublin, at the Summit
of the EU and associated countries. In 1996, at Lithuania's initiative,
the European Commission allocated ECU 6 million for the consolidation
of control of the eastern border of the three Baltic states. Germany
has also granted a support of DM 3 million for the protection
of our borders. Almost half of this grant was used last year for
the acquisition of border communication equipment and computers.
A free trade agreement is an economic bridge between Lithuania
and the EU. Although last year trade and economic co-operation
with the EU countries expanded considerably, our enterprises find
it difficult to get through to European markets. Therefore, the
efforts of both domestic and foreign policies should be oriented
towards an all-round support to domestic enterprises. Export Support
Fund is a very important and necessary step made by the Government
in this direction. In my opinion, the Government should prepare
immediately a special complex programme which would help our businessmen
to establish themselves and compete on the markets of other countries.
It is my belief that we must have a unified policy for investments
in Lithuania and create a national programme to attract investments.
It has already become a tradition for me, as the President, to
meet with ambassadors of foreign states. Meetings between our
senior executive officials and major investors in Lithuania should
also become common practice.
All our actions have one goal - to become a member of the European
Union. Even now Lithuania is ready to begin negotiations on the
accession to the European Union and suggests that in June this
year, at the EU Amsterdam Summit a specific date for the beginning
of negotiations be established. We support the proposal to begin
negotiations with all the applicant countries simultaneously.
We shall seek to finish negotiations in the first group of candidates.
Nevertheless, we understand that this is a long-term process which
will demand not only big efforts in transforming our whole life,
but the understanding and support of our citizens.
Another
important task of our foreign policy is integration into NATO
while closely co-operating with the Alliance members, Poland,
other Central European and the Baltic states, and other countries.
Lithuania views its integration into the European Union and Transatlantic
defence structures as interrelated and complementary processes.
They imply the extension of the zone of stability, enhanced security
and well-being into Central Europe. By seeking to become a NATO
member, Lithuania is not escalating the existing or foreseeable
threat. This aspiration stems from the general rationale of the
Euroatlantic processes.
Uncertain security situation of Lithuania as well as of the other
Baltic states can weaken security in the Baltic Sea region and
in all Europe. Lithuania's security policy is based not only on
the military aspect, but on the principles of economic and democratic
reforms, social well-being and good neighbourly relations.
In reply to NATO Enlargement Study Lithuania formulated its position
and the main directions of the preparation for accession into
the North Atlantic Alliance in the Discussion Document which was
presented to NATO Secretary General Javier Solana during his official
visit in Lithuania.
We have always given special attention to bilateral relations.
Good and mutually beneficial relations with both the West and
the East is one of the preconditions for our integration into
the European Union and NATO as well as regional co-operation.
One of the
principal provisions of Lithuania's foreign policy - good
relations with our neighbours - is also one of the most effective
conditions enhancing Lithuania's security and facilitating our
contribution to the regional and European security.
First,
I would like to speak about our relations with Poland.
Today they can be described as the best throughout the entire
history of our two countries. We view this neighbour as out strategic
partner in our integration into the European Union and NATO and
in consolidating security and stability in the region.
Last year is notable for intensified co-operation between the
two countries in all areas. Significant agreements were signed
on national borders and free trade - this completed the legal
foundation of the interstate relations. There were regular high
level meetings and consultations between the officials of both
countries. The intense and successful co-operation between the
Lithuanian and Polish municipalities, cities and regions was formalised
when a Lithuanian-Polish interstate commission for cross-border
co-operation was established and initiatives encouraging mutual
understanding and rapprochement of the Lithuanian and Polish nations
were started.
In 1997 the Government has to give a priority to the improvement
of the Lithuanian-Polish border crossing capacity, co-operation
in combating organised crime, smuggling and illegal migration,
as well as implementation of the projects Via Baltica,
building of a railway of European standards from the Lithuanian-Polish
border to Kaunas, connecting power grids of both countries.
The impulse for the development of our relations was given in
spring 1996 by the visit of Polish President Aleksandr Kwasniewski
in Lithuania. The commonalty of the aspirations of both countries
was expressed in a declaration by the Polish President and myself,
signed on a Polish naval ship on the Baltic Sea in autumn last
year. The declaration says: "the Republic of Lithuania and
the Republic of Poland will continue to support each other in
the processes of integration into the European Union, the Western
European Union and NATO and to co-operate closely in holding regular
consultations at various levels."
In addition, in Vilnius and Warsaw, Adomas Mickevièius
foundations for Lithuanian-Polish co-operation were established,
and this year in Vilnius these foundations will hold a conference
under the patronage of the Presidents of both countries - "Reconciliation
of Nations and Good Neighbourly Relations - a Guarantee For Security
and Stability In Europe." The aim of the conference is to
demonstrate how good neighbourly relations promote co-operation,
enhance common security and help to improve considerably the well-being
of the countries.
There
have been discussions recently as to the nature and efficiency
of co-operation with Latvia and Estonia, the drive of the
Baltic states towards the European and Transatlantic economic,
political and security structures. During these discussions different
and often controversial opinions can be heard. However, it is
my opinion that, the existing objective differences notwithstanding,
the unity of Lithuania, Latvia and Estonia, the co-operation between
our states must survive and be one of the top priorities in our
activities. At the same time this co-operation is by no means
Lithuania's political self-confinement.
In 1996, presidents, heads of government, foreign affairs ministers
and other members of government of the Baltic states held a number
of meetings. Trilateral and other urgent questions were discussed
at the meetings. I am convinced that such practice is very necessary
indeed and must be continued.
Relations with Latvia are mostly developed on a trilateral basis,
nevertheless bilateral relations are also expanded. Last year
I was on a state visit in Latvia. This was the first state visit
of a Lithuanian President in this country. We reconfirmed the
principles of good neighbourly relations and defined guidelines
for the future. Unfortunately, it often happens that interests
of neighbouring states clash. Recently this has happened to Latvia
[and Lithuania]. Disagreement of interests on the division of
the economic zone at sea are of a temporary nature and it should
not affect the further development of friendly mutual relations
between our states. I am convinced that negotiations with this
neighbour will continue and that a just and mutually acceptable
solution will be found.
Lithuania's
relations with its Eastern neighbours are constructive.
Our relations with Russia have settled down, there are no unsettled
political problems. In its relations with this country Lithuania
will continue to maintain a clear and consistent position - co-operation
based on the principles of good neighbourly relations, mutual
understanding, equality and mutual benefit.
The Lithuanian-Russian relations should be given an impetus by
the Lithuanian-Russian border delimitation treaty which is planned
to be signed in the first half of this year. It will strengthen
security and stability of Lithuania and the entire region.
Granting the status of a special economic zone to Kaliningrad
provided for new opportunities for the development of economic
relations. Last year our export to this region grew considerably.
In its plans Lithuania has to include the Kaliningrad region as
one of the priority regions for economic co-operation, and to
give all-round support to its economic, political and cultural
integration into the community of the Baltic Sea states.
The growing flow of illegal migration has become one of the most
acute problems in the Baltic Sea region. Lithuania is of the opinion
that such migration can be stopped if illegal migrants are returned
(readmitted). A readmission agreement was signed with the Ukraine
in 1996. We are making efforts to intensify negotiations on a
similar agreement with Russia and Belarus. It would be very good
if we succeeded in preparing such agreements this year.
In 1996 the work on the demarcation and installation of the Lithuanian-Belarussian
border began and will be continued. It is my hope that trade and
economic relations between our states will expand, especially
by utilising the capacity of Lithuania's transport infrastructure
and access to the Baltic Sea.
We are interested in good neighbourly relations with Belarus and,
therefore, we cannot remain untouched by the developments in this
country. The statement of the Lithuanian, Polish and Ukrainian
Presidents on this issue is significant not only as a joint initiative
but a co-ordinated attitude towards the situation in a neighbouring
state.
Multilateral fora facilitated bilateral relations with member
countries of the European Union and NATO. However, they should
not dominate over bilateral relations. International organisations
are composed of individual countries which have diverse opinions
on various issues. Active political dialogue with different states
can also give tangible results. We maintain active co-operation
with Germany, the United Kingdom and France. The support of those
countries is especially important for us; some of the decisions
concerning our acceptance to the European and Transatlantic structures
depends to a large extent on their opinion. At the same time,
these are the states with whom we pursue good economic and cultural
relations. This is especially true of Germany. However, in order
to explain Lithuania's position on strategic issues better and
to make the international climate favourable for our goals, it
is necessary to expand such activities with other countries as
well.
A legal basis for bilateral co-operation is being developed with
considerable success. Various treaties and agreements were signed
with almost all Western European states. The issues of Lithuania's
diplomatic representation in Portugal, Greece and Ireland have
been resolved. In 1996 I visited Bosnia and Brussels, Copenhagen
and Washington - the European and Transatlantic structures of
utmost importance to Lithuania's' integration based in capitals
and headquarters of international organisations.
Interparliamentary relations are no less important. Apart from
traditional ties between the Baltic and Nordic parliaments, as
well as Lithuanian and Polish members of parliament, I would like
to single out the visits of parliamentarians from France, Germany
and the United Kingdom to Lithuania. In future we should pursue
active co-operation with these parliaments with which we already
have established relations, and to forge new parliamentary contacts
in the countries whose approach towards Lithuania's strategic
interests is more cautious.
Among the key tasks of Lithuania's foreign policy is to deepen
bilateral relations with the Untied States. Last year, during
my visit to the United States I met with President Bill Clinton,
the Defence Secretary and members of the Congress. We discussed
development of bilateral relations and the issues of security
of the Baltic states. It is my hope that this important dialogue
will be continued.
Allow me to emphasise the major role that the US is playing in
ensuring the security of the Baltic states and supporting Lithuania's
aspiration to become a member of the North Atlantic Alliance and
of the European Union. I am convinced that relations with this
country will continue to expand and strengthen, that economic
and cultural co-operation will be more intense. This year we should
prepare and sign with the US a treaty on investment promotion
and protection.
Bilateral relations are affected by meetings of top officials.
Finnish President Martti Ahtisaari visited Lithuania. At summits
in Florence, Lisbon and Dublin we discussed major issues of co-operation
with heads of states of the United Kingdom, Spain, Italy, Sweden
and other countries. This year we shall try to invigorate bilateral
relations with Greece, France, Portugal, Italy and Hungary. More
attention should be focused on the ties with South European region.
Our objective is to seek a more active and constructive support
of the countries of that region for our efforts to be integrated
in European and Transatlantic structures.
Lithuania
gives especial attention to relations with the Ukraine
as an Eastern European state which strives actively for active
participation in the European integration. In 1996 we tried to
pursue a regular political dialogue on both bilateral and multilateral
issues. The visit of Ukrainian President Leonid Kuchma to Lithuania
was a great contributions towards this end. During the visit we
signed important political, legal and economic agreements.
The
official visit of Moldovan President Mirchea Snegur revitalised
relations between our two states. The export of Lithuanian goods
will get support from the agreement on trade and economic co-operation
signed with Moldova in 1996.
My
visit to Georgia laid the foundation for an efficient co-operation
in the spheres of economy, trade, transport and other fields.
It is necessary to single out relations with Israel
and the world Jewish Diaspora. Lithuanian and Jewish nations are
linked by a centuries- old tradition of living in accord. Despite
tragic historical events, which have already been given an evaluation,
two states - Lithuania and Israel - strive for constructive co-operation.
During the last two years there were significant changes in relations
with Israel. Personal contacts of both heads of state also contributed
to this. The agreement on investment promotion and protection
ratified in the Seimas will facilitate the expansion of economic
ties.
In 1996 we continued a dialogue on urgent issues of instituting
proceedings against war criminals, genocide, restitution, anti-
Semitism.
Development of regional co-operation is among the priorities
of Lithuania's foreign policy. Speaking about this activity it
should be pointed out that we belong to several regions at once:
the Baltic Sea area, Central Europe and the Baltic states.
Development of relations with Central European countries
consolidates the historical place of Lithuania in the Central
European region. Apart from the good relations with Poland mentioned
above, I would like to draw attention to the need to promote political
and economic co-operation with the other countries of the Central
European Free Trade Agreement (CEFTA): the Czech Republic, Hungary
and Slovakia. This should become one of the priorities of our
foreign policy. I take this opportunity to recall the visit of
Czech President Vaclav Havel to Lithuania, the intensifying co-operation
with the other CEFTA countries. My official visit in Bulgaria
laid the foundation for co-operation in the economy, trade, research
and technology. Last year we signed free trade agreements with
Poland, the Czech Republic, Slovenia and Slovakia; we also started
negotiations with Hungary. This allows us to expand considerably
not only the volume of bilateral trade; it also brings us closer
to CEFTA membership.
In 1996 we continued co-operation with the North European countries.
The Baltic-Nordic co-operation "5+3" has become more
intense. In April 1996 in Vilnius, there was the first joint meeting
of the ministers of the Baltic and Nordic Councils of Ministers
responsible for co-operation. The strategy worked out by the Nordic
countries for co-operation with the neighbouring regions is a
manifestation of the importance placed by the Nordic countries
on co-operation with the Baltic states; our institutions also
contributed to its preparation. I would like to single out bilateral
relations between Lithuania and Denmark, especially our practical
co-operation in the military sphere and peace keeping.
Lithuania's foreign
policy is not confined to Europe and North America. We
have political and economic interests in Asia, Australia
and Latin America. Relations between Lithuania and Latin America
intensified after my visit to Argentina, Uruguay, Brazil and Venezuela.
This was the first visit ever of the Lithuania President to South
America. The agreements signed during the visit will facilitate
closer bilateral ties with the countries of this region.
We should look for new markets for Lithuanian goods and new investors
in Asia which knows so little about us. It is necessary to look
for and attract businessmen and investors from the rich Asian
countries.
Participation in the activities of international organisations
and fora offers new opportunities to explain Lithuania's position
on the integration into the European Union, NATO and other regional
structures of economic co-operation and security. Such organisations
are the Council of Europe, Western European Union, Organisation
for Security and Co-operation in Europe (OSCE), United Nations
and special agencies of the United Nations.
Lithuania is becoming an increasingly active participant in the
disarmament processes. Our country began an accession procedure
with respect to the 1972 Convention on the Prohibition of the
Development, Production and Stockpiling of Bacteriological (Biological)
and Toxin Weapons and or Their Destruction, and the 1993 Convention
on the Prohibition of Development, Production, Stock-piling and
Use of Chemical Weapons. In October 1996 Lithuania signed the
Comprehensive Nuclear Test Ban Treaty. Last year we applied for
membership in the Disarmament Conference in Geneva. At the OSCE
Summit in Lisbon in December 1996 Lithuania expressed a wish to
participate in the verification process of the Conventional Armed
Forces in Central Europe.
Lithuania should redouble its efforts in seeking membership in
the Organisation for European Co-operation and Development (OECD)
and the World Trade Organisation (WTO). Full membership in those
organisation would give us greater possibilities to attract more
investments and to establish economic relations with a larger
number of countries.
Speaking about foreign policy, I would like to emphasise the
importance of our relations with the Lithuanian communities
abroad. Especially notable is the selflessness and resolve
of the Lithuanian Diaspora in defending Lithuania's interests
in the government institutions of the US, Canada, Australia, Latin
America and other countries. We shall give our wholehearted support
to this activity. In our turn, we should also take more care of
the rights and interests of our citizens and compatriots abroad.
During my visit in Latin America I met with the representatives
of the Lithuanian émigré community there. These
meetings contributed to closer relations between Latin America
and Lithuania, encouraged to seek possibilities for the émigré
community to join in Lithuania's political, economic and cultural
life, to consolidate Lithuanian culture and traditions.
There are no state subsidised or privately funded research centres
in Lithuania yet that would be engaged in analysing international
politics. Therefore, we feel a shortage of qualified foreign policy
analytical studies. The first attempts in this direction are being
made at the Institute of international Relations and Political
Science of Vilnius University. But this is just a small fraction
in this sphere. I should think that Lithuania also needs an academic
periodical on foreign policy issues. The Government should try
and find financial resources for it.
In conclusion I would like to note that the foreign policy sections
in the programmes of the Seimas majority coalition and of the
Government coincide with the foreign policy strategy formed and
pursued by myself as the country's President. Therefore, I am
pleased to say that no marked changes in Lithuania's foreign policy
are expected. The succession and continuity of foreign policy
after the change of the Government following the Seimas elections
testify to a certain degree of maturity of our state and its political
system.
VIII.
LITHUANIA AS PART OF THE MODERN WORLD
The development of our state after 1990 has shown that a state
which succeeds in building its image and knows how to present
it to the world gains a great deal. The chances of integration
into the world economic and political structures, the size of
foreign investment, and the international prestige of our country
depend on the international assessment of our economic and political
situation. It is important that Lithuania should show itself to
the world as a country which has preserved and cherished its national
traditions, its ancient language and a unique culture. Image building
is a strategic objective of Lithuania's policy. Usually, countries
which take care of their image, present to the world their economic,
cultural and political values. By this they seek to establish
themselves in the international community, receive recognition,
approval or support in overcoming economic and political crises
in the country.
The building of Lithuania's image is directly connected with the
ensuring of security of information of the state and its institutions.
This can be achieved by regular and reliable information to the
public of foreign states about the activities of all our state
institutions. It is especially important to present adequately
the goals and directions of Lithuania's foreign policy or, if
necessary, to defend the country's interests. Therefore, it is
my belief that one of the main tasks is a timely and purposeful
dissemination of information abroad about Lithuania's political
principles and international interests. International standing
of a state, its society and values are the foundation on which
long-term favourable or hostile attitudes are formed. The goal
of Lithuania's strategic international public relations is to
establish and maintain relations with the public or social groups
of those countries which have an impact on the success of our
state's activities in different spheres.
There have been regular discussions lately among our public about
Lithuania's image. It is no secret that it is only recently that
we began to take measures in this regard. In principle, image
building is a common result of a country's' activities in different
spheres. Our present image in the world is not wholly satisfactory.
Frequent amendments of our laws and decisions, the prevailing
image of an ill-wishing and unprofessional Lithuanian civil servant,
growing crime rate, border problem, the work of customs and tax
inspectors, negative attitude towards foreign investors are harmful
to our image. There is too little not just economic information;
there is not enough information about Lithuania in foreign languages,
and the one that is available is not well prepared. The image
of the country can be also harmed by irresponsible and hasty statements
by politicians.
On the other hand, usually, unfavourable judgements or established
opinion about Lithuania, its different spheres of activities does
not correspond reality. Many foreigners, upon a closer acquaintance
with Lithuania, stress that in reality our state is better than
the image which is being disseminated. The economic interest of
foreign investors does not subside. Investors are attracted by
the convenient geographical location of the country, a satisfactory
transport system, a high intellectual potential of Lithuanian
enterprises, cheap work force and adequate work discipline.
Lithuania's inclusion in the European integration processes opens
up wide possibilities for the renewal of our country's political
and economic life, for a successful development of our state.
The success of these development will depend on how purposefully
and precisely we shall implement the EU accession policy, how
successfully we shall be able to solve issues related to the new
position of our country on the international scene. In my opinion,
at present we are enjoying a sufficient amount of attention of
the world; the only thing that is lacking is a more conceptualised
and objective image of Lithuania presented to the international
community. Lithuania should be viewed in the world as a sovereign
state with a number of apparent advantages. It is necessary to
ensure that in the Internet computer network there is no more
misleading or ungrounded information about Lithuania. This has
become possible when a National Information Metadata Centre was
established at the end of last year. The Centre gathers, processes
and distributes information in the computer network about different
state institutions and their activities. Shortly, this Centre
will complete a unified system of management of information about
Lithuania distributed by computer network to the Lithuanian public
or consumers abroad. Then we can expect a conceptualised image
of Lithuania on Internet. Not only Lithuania but also other states
and international organisations taking interests in our country
will benefit if the world community is provided with accurate,
co-ordinated and objective information about the real situation
in various spheres of activities of the state, Lithuania's values,
its interests and directions of foreign policy.
One of the key tasks is to make proper use of the existing information
infrastructure. Information units of various agencies that are
operating at present fall under different jurisdiction. This is
determines the specific features of their activity and encumbers
its co-ordination. A present the procedure of information exchange
among state institutions is not regulated. It is especially difficult
to co-ordinate information possessed by various state agencies,
to distribute it to the public and foreign embassies in Lithuania
and foreign mass media. It is not easy to present our country's
foreign policy to the international community through such information
infrastructure.
This situation is changing gradually. To speed up integration
of Lithuania's information policy, industry and infrastructure,
a State Information Policy Council was set up with the President's
Office. A new institution has emerged which is in charge of the
interoperability of agencies working in the sphere of state information
policy. The Council is obliged to prepare proposals for the President,
the Seimas and the Government concerning the national policy in
the sphere of information and the strategy of building an objective
image of the state inside the country and abroad, to co-ordinate
the activities of information departments of ministries and other
agencies, to co-ordinate the drafting of laws and standard acts
on information, communication, mass media and informatics.
Generally speaking, this is but a fracture of the national information
policy. The main purpose of this policy is to ensure a smooth
application and consumption of information resources, information
services and information systems, as well as to satisfy the needs
of information consumers, co-ordinate the activity of different
information systems, to ensure the conformity of legal acts, and
access to regional and international information networks and
systems.
We can say that Lithuania's image, just like Lithuania's reality
is changing for the better. Upon signing the EU Association Agreement
the country's strategic location is viewed from a different perspective;
it becomes more important. Lithuania must take an active part
in the activities of international organisations and show initiative.
It is not by chance that I decided to conclude my annual report
on the note of Lithuania's image. It is here that all the problems
of our life, all our achievements converge most vividly. It is
my greatest wish to see Lithuania's image in future coincide with
the vision of our state that we cherish, the image that would
embrace all our greatest aspirations and ideals. We, on our part,
with a systemic and comprehensive vision of a modern state in
place, shall be better equipped to shape our domestic and foreign
policy, our economic and social development, to solve the problems
of state administration, security, law enforcement and technological
progress.