Background: Independent between the two World Wars Lithuania was annexed by the USSR in 1940. In March of 1990 Lithuania became the first of the Soviet republics to declare its independence but this proclamation was not generally recognized until September of 1991 (following the abortive coup in Moscow). The last Russian troops withdrew in 1993. Lithuania subsequently has restructured its economy for eventual integration into Western European institutions.
Administrative divisions: 44 regions (rajonai singular - rajonas) and 11 municipalities*: Akmenes Rajonas Alytaus Rajonas Alytus* Anyksciu Rajonas Birstonas* Birzu Rajonas Druskininkai* Ignalinos Rajonas Jonavos Rajonas Joniskio Rajonas Jurbarko Rajonas Kaisiadoriu Rajonas Kaunas* Kauno Rajonas Kedainiu Rajonas Kelmes Rajonas Klaipeda* Klaipedos Rajonas Kretingos Rajonas Kupiskio Rajonas Lazdiju Rajonas Marijampole* Marijampoles Rajonas Mazeikiu Rajonas Moletu Rajonas Neringa* Pakruojo Rajonas Palanga* Panevezio Rajonas Panevezys* Pasvalio Rajonas Plunges Rajonas Prienu Rajonas Radviliskio Rajonas Raseiniu Rajonas Rokiskio Rajonas Sakiu Rajonas Salcininku Rajonas Siauliai* Siauliu Rajonas Silales Rajonas Silutes Rajonas Sirvintu Rajonas Skuodo Rajonas Svencioniu Rajonas Taurages Rajonas Telsiu Rajonas Traku Rajonas Ukmerges Rajonas Utenos Rajonas Varenos Rajonas Vilkaviskio Rajonas Vilniaus Rajonas Vilnius* Zarasu Rajonas
Legislative branch: unicameral Parliament or Seimas (141 seats 71 members are directly elected by popular vote 70 are elected by proportional representation; members serve four-year terms)
Judicial branch: Supreme Court judges appointed by the Parliament; Court of Appeal judges appointed by the Parliament
Political parties and leaders: Christian Democratic Party or LKDP [Algirdas SAUDARGAS chairman]; Democratic Labor Party of Lithuania or LDDP [Ceslovas JURSENAS chairman]; Democratic Party or DP [Lydie WURTH-POLFER president]; Homeland Union/Conservative Party or TS [Vytautas LANDSBERGIS chairman]; Lithuanian Center Union or LCS [Romualdas OZOLAS chairman]; Lithuanian Farmer's Party or LUP (previously Farmers' Union) [Albinas VAIZMUZIS chairman]; Lithuanian Nationalist Union or LTS [Rimantas SMETONA chairman]; Lithuanian Polish Union or LLS [Rsztardas MACIEKIANIEC chairman]; Lithuanian Social Democratic Party or LSDP [Aloyzas SAKALAS chairman]
International organization participation: BIS CBSS CCC CE EAPC EBRD ECE EU (applicant) FAO IAEA IBRD ICAO ICC ICFTU ICRM IFC IFRCS ILO IMF IMO Intelsat (nonsignatory user) Interpol IOC IOM ISO (correspondent) ITU OPCW OSCE PFP UN UNCTAD UNESCO UNMIBH UNMIK UPU WEU (associate partner) WHO WIPO WMO WTrO (applicant)
Economy overview: Lithuania the Baltic state that has conducted the most trade with Russia faced its own economic and financial crisis in 1999 as a result of the government's wrongfooted economic policies and its inadequate response to the August 1998 Russian financial crisis. Preliminary figures indicate 3% negative GDP growth 10% unemployment - the highest level since independence in 1991 - and a budget deficit estimated at between 8 and 9% of GDP. The policies that Prime Minister KUBILIUS implemented upon taking the helm in November 1999 underscore a commitment to fiscal restraint economic stabilization and accelerated reforms. The austere 2000 budget in based on a 2% GDP growth forecast 3% inflation and a 2.8% budget deficit. Lithuania was invited at the Helsinki EU summit in December 1999 to begin EU accession talks in early 2000. Privatization of the large state-owned utilities particularly in the energy sector and reducing the high current account deficit remain challenges for the coming year.
Disputes international: ongoing talks over maritime boundary dispute with Latvia (primary concern is oil exploration rights); 1997 border agreement with Russia not yet ratified
Illicit drugs: transshipment point for opiates and other illicit drugs from Southwest Asia Latin America and Western Europe to Western Europe and Scandinavia