Lithuania

Lithuania (/ˌlɪθjuːˈeɪniə/; Lithuanian: Lietuva) officially the Republic of Lithuania (Lithuanian: Lietuvos Respublika) is a country in Northern Europe, the largest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, to the east of Sweden and Denmark. It borders Latvia to the north, Belarus to the east and south, Poland to the south, and Kaliningrad Oblast (a Russian exclave) to the southwest. Lithuania has an estimated population of 3 million as of 2013, and its capital and largest city is Vilnius. The Lithuanians are a Baltic people, and the official language, Lithuanian, is one of only two living languages (together with Latvian) in the Baltic branch of the Indo-European language family.

• Geographical data

  • Lithuania is located in Northern Europe. It covers an area of 65,200 km2. The country lies between latitudes 53° and 57° N, and mostly between longitudes 21° and 27° E (part of the Curonian Spit lies west of 21°). It has around 99 kilometres (61.5 mi) of sandy coastline, of which only about 38 kilometres (24 mi) face the open Baltic Sea and which is the shortest among the Baltic Sea countries; the rest of the coast is sheltered by the Curonian sand peninsula. Lithuania's major warm-water port, Klaipėda, lies at the narrow mouth of the Curonian Lagoon (Lithuanian: Kuršių marios), a shallow lagoon extending south to Kaliningrad. The main and largest river, the Nemunas River, and some of its tributaries carry international shipping.

    Lithuania lies at the edge of North European Plain. Its landscape has been smoothed by the glaciers of the last ice age. Lithuania's terrain is an alternation of moderate lowlands and highlands; its maximum elevation is Aukštojas Hill at 294 metres (965 ft) in the eastern part of the country. The terrain features numerous lakes, Lake Vištytis for example, and wetlands; a mixed forest zone covers nearly 33% of the country. The climate ranges between maritime and continental, with wet, moderate winters and mildly hot summers.

    After a re-estimation of the boundaries of the continent of Europe in 1989, Jean-George Affholder, a scientist at the Institut Géographique National (French National Geographic Institute) determined that the Geographic Centre of Europe is located at 54°54′N 25°19′E. The method used for calculating this point was that of the centre of gravity of the geometrical figure of Europe. This point is located in Lithuania, specifically 26 kilometres (16 mi) north of its capital city, Vilnius.

• Demographics

  • Since the Neolithic period the native inhabitants of the Lithuanian territory have not been replaced by any other ethnic group, so there is a high probability that the inhabitants of present day Lithuania have preserved the genetic composition of their forebears relatively undisturbed by the major demographic movements, although without being actually isolated from them. The Lithuanian population appears to be relatively homogeneous, without apparent genetic differences among ethnic subgroups.

    A 2004 analysis of MtDNA in the Lithuanian population revealed that Lithuanians are close to the Indo-European and Uralic-speaking populations of Northern Europe. Y-chromosome SNP haplogroup analysis showed Lithuanians to be closest to Latvians, Estonians, and Finns.

    According to 2009 estimates, the age structure of the population was as follows: 0–14 years, 14.2% (male 258,423/female 245,115); 15–64 years: 69.6% (male 1,214,743/female 1,261,413); 65 years and over: 16.2% (male 198,714/female 376,771). The median age was 39.3 years (male: 36.8, female: 41.9).

• Administrative divisions

  • The current administrative division was established in 1994 and modified in 2000 to meet the requirements of the European Union. Lithuania has a three-tier administrative division: the country is divided into 10 counties (Lithuanian: singular – apskritis, plural – apskritys) that are further subdivided into 60 municipalities (Lithuanian: singular – savivaldybė, plural – savivaldybės) which consist of over 500 elderships (Lithuanian: singular – seniūnija, plural – seniūnijos).

    The county governors (Lithuanian: apskrities viršininkas) institution and county administrations have been dissolved in 2010.

    Municipalities are the most important administrative unit. Some municipalities are historically called "district municipalities", and thus are often shortened to "district"; others are called "city municipalities", sometimes shortened to "city". Each municipality has its own elected government. In the past, the election of municipality councils occurred once every three years, but it now takes place every four years. The council elects the mayor and appoints elders to govern the elderships. There is currently a proposal for direct election of mayors and elders, however that would require an amendment to the constitution.

    Elderships, numbering over 500, are the smallest units and do not play a role in national politics. They provide necessary public services close to their homes; for example, in rural areas the elderships register births and deaths. They are most active in the social sector: they identify needy individuals or families and distribute welfare or organise other forms of relief. While the elderships have a potential of becoming a source of local initiative to tackle rural problems, complaints are made that elderships have no real power and receive too little attention.

• Economy

  • In 2003, before joining the European Union, Lithuania had the highest economic growth rate amongst all candidate and member countries, reaching 8.8% in the third quarter. In 2004 – 7.4%; 2005 – 7.8%; 2006 – 7.8%; 2007 – 8.9%, 2008 Q1 – 7.0% growth in GDP reflects the impressive economic development and as a result is often termed as a Baltic Tiger. However, 2009 marked a dramatic decline in GDP at −14.74% attributed to overheating of the economy. In 2010, the rate was 1.33%. As of June 2013, the unemployment rate is 10.4%.

    Lithuania has a flat tax rate rather than a progressive scheme. In 2007, personal income tax was reduced to 24% and a reduction to 21% was made in January 2009. Lithuanian income levels are lower than in the older EU Member States. According to Eurostat data, Lithuanian PPS GDP per capita stood at 61 per cent of the EU average in 2008.

    Structurally, there is a gradual but consistent shift towards a knowledge-based economy with special emphasis on biotechnology (industrial and diagnostic). The major biotechnology companies and laser manufacturers (Ekspla, Šviesos Konversija) of the Baltics are concentrated in Lithuania. Also mechatronics and information technology (IT) are seen as prospective knowledge-based economy directions.

    In 2009, Barclays established Technology Centre Lithuania – one of four strategic engineering centres supporting the Barclays Retail Banking businesses across the globe. In 2011, Western Union officially opened their new European Regional Operating Centre in Vilnius. The stated position of the Lithuanian government is that the focus of Lithuanian economy is high added-value products and services. Among other international companies operating in Lithuania are: PricewaterhouseCoopers, Ernst & Young, Societe Generale, UniCredit, Thermo Fisher Scientific, Phillip Morris, Kraft Foods, Mars, Marks & Spencer, GlaxoSmithKline, United Colors of Benetton, Deichmann, Statoil, Neste Oil, Lukoil, Tele2, Hesburger and Modern Times Group. TeliaSonera, ICA and Carlsberg respectively own local telecommunications company Omnitel, retailer Rimi and beer breweries (Švyturys, Kalnapilis and Utenos Alus). Lithuanian banking sector is dominated by the Scandinavian banks: Swedbank, SEB, Nordea, Danske Bank, DNB ASA.

    Among the biggest private owned Lithuanian companies are: ORLEN Lietuva, Maxima Group, Achema Group, Lukoil Baltija, Linas Agro Group, Indorama Polymers Europe, Palink, Sanitex. Corporate tax rate in Lithuania is 15% and 5% for small businesses. The government offers special incentives for investments into the high-technology sectors and high value-added products. Most of the trade Lithuania conducts is within the European Union and Russia.

    The litas, the national currency, has been pegged to the euro since 2 February 2002 at the rate of EUR 1.00 = LTL 3.4528, and Lithuania is expecting to switch to the euro on 1 January 2015.

• Culture

  • The culture of Lithuania combines an indigenous heritage, represented by the unique Lithuanian language, with Nordic cultural aspects and Christian traditions resulting from historical ties with Poland. Although linguistic resemblances represent strong cultural ties with Latvia in various historical moments Lithuania was influenced by Nordic, Germanic and Slavic cultures. Various cultural changes occurred throughout Lithuania's transformation from a former country of the Soviet Union to an independent Baltic state.