Structural Reform in Lithuania had been introduced to achieve sustainable economic growth and a competitive market. The government of Lithuania started the reform process in 2002 through privatization and some tight fiscal policies. Many energy and transport companies had been privatized during this period which increased the productivity and economic flexibility.
The government had given stress on the improvement of the business environment. So several attempts were made to liberalize the economic activities and as well as to enhance the investment climate. The Lithuanian government streamlined the process of enterprise registration and made the liquidation procedures easy.
The government eliminated the barriers of market entry. It also patronized market competition so that the European Union’s requirements would be fulfilled.
Moreover, the government made an attempt to distribute the resources in the market freely. Several national programs had been initiated, namely, National Quality Program, Conformity Assessment Infrastructure Development Program, Export Development and Promotion Strategy, Innovation in Business Program, Strategy for Development of Medium and Small Scale Businesses etc.
In 2003, the Lithuanian government introduced an environmental policy named The National Sustainable Development Strategy. It focused on the energy consumption, materials enticing the change of climate per GDP unit, other natural resources etc, which are the indicators of environmental efficiency. The government was trying to reduce the energy consumption within 2020 so that it could minimize the emissions of pollutants.
Another measure of structural reform taken by the government was the improvement of the small and medium scale enterprises'(SME) economic and legal environment and structure. The SMEs were largest recruiter in Lithuania. So, The Lithuanian Development Agency for Small and Medium-Sized Enterprises provided some services to help the SMEs.
Impact of Refor
Through structural reform, the Lithuanian government was able to advance the market competition which accelerated its economic growth.
The European Union market was running smoothly in Lithuania because of the openness of its capital market.
The government compensated the budget deficit with the help of increasing foreign capital.
Last Updated on : 26th June 2013