A developing country, as we know, is less established both industrially, economically, and tends to have a lower population compared to other nations. Some of these nations are both large and small and have been affected by wars both physically and politically for generations. These struggles have affected the fate of their countries for decades and have allowed for little development. A developed country, in today’s time, is one that has a strong economy with a huge technological influence. Their populations are made up of the low, middle and higher classes; where everyone is educated, and plays a role in the workforce.
A country such as Lithuania and several others are in the process or have recently become a developed country.
However, in order to understand how Lithuania is becoming more, and more developed, it is important to know the history of the country. The Lithuanian ancestry was one of the first established groups to reside in their current location, and their first known residency dates back to 10,000 B.
C. The Baltic traders of the land exchanged amber with the Romans, while also having disputes and war with the Vikings. This system of trade and fighting only became more prevalent while under the rule of Christian King, Mindaugas. A long-lasting battle emerged with Teutonic Kings after King Mindaugas’s death. Resulting in the Grand Duchy of Lithuania falling back to pagan heritage (True Lithuania). In 1387, Grand Duke Jogalia would eventually adopt Christian Rule, and form a resilient alliance with Poland; which would in time dismantle the Teutonic threat.
Lithuania became the largest territory in Europe, expanding from the Baltic to the Black Sea, in the early 15th century.
The Commonwealth was set up by Lithuania and Poland in 1569 due to the new potential enemy, Moscow, because of their quick shift to power and land. At first, it proved a success in fending off threats but eventually, the union led to Poland culture being overridden by Lithuanian. Noble democracy began to Poland-Lithuania area by the 17th century. The Commonwealth’s force of power was shaken after losing multiple wars. Lithuanian territory was eventually annexed and forced to adhere to Russian authority (True Lithuania).
Years later, the agriculturally dependent society did not seem to last long once World War 2 emerged. The Lithuanian land became occupied by the Soviet Union where people were being murdered and sent to Siberia by the thousands. However, Lithuania continued to fight back and reigned triumphant on March 11th of 1990 (True Lithuania). The Soviet Union’s persistently violent efforts to retaliate was one of the reasons why they ultimately succumbed to higher forces of power. Lithuania became increasingly modernized after embracing an economy based upon capitalist values. Unfortunately, they experienced a huge fluctuation in emigration rates. This was due to the fact that the people had high expectations of creating a better lifestyle for themselves and their families at a rapid pace. Once they realized this was not necessarily the case, they eventually left to find better opportunities in the West. It became even more severe after Lithuania made a decision to combine forces with the European Union (TrueLithuania.com).
While Lithuania may never reach the same standard of living as more developed Western European countries, such as Sweden and Denmark, the country does show a positive outlook towards their living standards. According to John Glade, of “The Borgen Project ”, the top 10 facts about living conditions in Lithuania vary from an economical and social standpoint. Europe as itself is known to typically have a higher quality of living compared to other areas of the world. Whether it is from better public healthcare to being more affordable and having a larger job market; Europe appears to be at the top. There is a review, which indicated that around 63% of Lithuanians are certain about their own future, and 69% feel a similar path about their kids’ future (Glade). This proves that Lithuania has begun to make the proper changes and adjustments to focus on the future of their nation. Another key fact that supports a better standard of living is the simple fact that more people feel in control of their lives in the country, most Lithuanians “are free to decide how they live” and are able to live a healthier lifestyle (Glade).
Lithuania as a country, is praised to be extremely scenic and is known for its lush forests and cobblestone roads and is home to the “cleanest capital in Europe and is first according to the Green City Index.” Lithuania’s natural issues incorporate air contamination, water contamination, and the risk of nuclear pollution. The concrete business produces approximately 299,000 metric tons of airborne toxins on a yearly basis. In the late 1990s, mechanical carbon dioxide discharges totaled 13.8 million metric tons (Nations Encyclopedia). A report on Lithuania expressed that air contamination had harmed roughly 68.4% of the country’s woodlands. Water contamination resulted from uncontrolled dumping by businesses and the absence of satisfactory sewage treatment offices. During the 1990s, 42% of the country’s water treatment systems were broken, and unfixed. (Nations Encyclopedia). Prior to the nuclear mishap at Chernobyl that tainted quite a bit of Lithuania with extreme radiation, Lithuanians are worried about atomic vitality improvement, particularly the utilization of atomic force created by plants of a similar kind as the one at Chernobyl. The results of Chernobyl still affect and sameness various regions of Europe to the present date, consequently heading noteworthy contamination and natural issues in Lithuania.
As of now, women in Lithuania do not have a sufficient impact over arrangement making within the Government, however, the circumstances are starting to change to improve things. In 1996, the largest showing of women’s representation in parliament amid other Eastern and Central European Countries was achieved in Lithuania, at a low 18.1%. Yet these levels are not comparable to well-established nations such as Sweden at 43%, Denmark at 37%, and Finland at 37% (Purvaneckiene). However, it should be noted that Lithuania has always surpassed other Baltic Nations on this issue; being among one of the first to advance towards gender equality.
Education has been the area that has made the most progress towards gender equality in most of Europe; especially Lithuania in particular. Women are literate and are given the same opportunities for success as men; within education. The women focus more on gaining a proper education in comparison to men, who focus more on the workforce. Until 1996, females made up the greater part of the workforce. Somewhere in the range of 1996 and 1998, their share in the work advertisement fell somewhat, and in 1998 came to 47.5% (Purvaneckiene). Females enter the workforce with a more significant level of training than men do, yet this doesn’t sufficiently decide their situation in it. Women in the European Union earn 25% less than men in the workforce, and in no economic division do women earn more than men. In 1998, the average earned by women, in comparison to mean was 77.2%. The most minimal amount of differences between wages were seen in the agricultural, hunting, and forestry industries, while the largest amount of changes were seen in government, and business-related careers. Furthermore, women make up a larger population of employment in the public sector at 64.3% (Purvaneckiene). Thus, the job market becomes more competitive for women, who pursue careers within the private, and entrepreneurship sector(s).
The Lithuania banking system plays a key role in the financial market of the Republic of Lithuania. Lithuania currently has seven active commercial banks, with eight branches and two representative offices of foreign banks. Some of these banks are: AS “Meridian Trade Bank,” Luminor Bank, and Pohjola Bank; which provide diverse currencies and cash flows in and out of Lithuania. Despite the fact that Lithuania experienced failures of two non-foundational banks in 2011 and 2013, these occasions didn’t influence the soundness of the whole financial division (Basijokas). The government’s actions in relation to these failures, have been successful and were noticed by the International Monetary Fund, just as various main credit rating organizations. The establishment of the Bank of Lithuania has supervised all banking transactions and operations in Lithuania. The bank has the power to perform micro and macro-prudential supervision functions and could vet powers to various sectors of the bank. However, as successful as the Lithuanian Bank is doing with banking functions, the foreseen presentation of the euro and interest in the financial association is a profoundly looked for objective that would additionally reinforce and improve the supervisory and administrative condition, goals instruments, just as straightforwardness and popular conclusion (Basijokas).
Financial fragmentation in part of the segregation of financial markets has swept the eurozone since the start of the financial crisis in 2008. In addition to the obvious structural differences, varied supervision, safeguard mechanisms and regulatory barriers to cross-border cash flow have been implemented throughout the EU with the aim of preventing any further financial crises (Basijokas). The euro system cannot solve the issue of fragmental markets, but it can be used to bridge the gap between common bank supervision and resolution mechanism. The Lithuanian Bank belongs to the Nordic-Baltic Banking; a regionally integrated market, with more than half of the registered share capital in the Lithuanian Bank (Basijokas). However, if the Lithuanian Bank is accepted into the eurozone, there would be several benefits, such as a single supervisory mechanism, and a single resolution mechanism, which provide protection from taxpayers to the shareholder and creditors. Close ties and joint supervisory systems between banking patrons and non-individuals should proceed so as to guarantee that the nearby specialists can, in collaboration with the European Central Bank, successfully oversee and forestall future bank failures (Basijokas).
Lithuania and the United States share a rich history as esteemed partners and strengthen partners. The United States set up political relations with Lithuania in 1922, after its revelation of freedom during World War I; as the United States assisted with the re-establishment of democratic establishments and a market economy. “In 2017, the United States was Lithuania’s 7th largest trading partner, with more than USD 2 billion in total trade” (State.Gov) under Lithuania becoming a member of the EU and NATO. The United States has signed an agreement of bilateral trade and investment, and intellectual property protection.
The Republic of Lithuania joined the Euro Area in January 2015; as being one of the hardest hit by the 2008 financial crisis, the GDP contracted 14.8% in 2009 (TradingEconomics). As of 2009, Lithuania has been ranked as one of the fastest-growing economies in the EU. Household consumption is a large portion of GDP and represents 63% of its complete use, trailed by net fixed capital arrangement; 19% and government use; 17%. Other sectors that account for GDP are manufacturing (19%), construction (7%), real estate (6%) and financial and insurance (2%). Furthermore, showing a rapid growth in Lithuania’s GDP Annual Growth Rate, and the expansion of GDP at 3.9% YoY in Q4 (TradingEconomics).
In conclusion, it is clear that Lithuania is in fact still a developing country, from the hardships the country faced in years following World War 2, to the recent 2008 financial crisis, Lithuania still strives to become a desirable occupancy for Europeans. The influx in the workforce has created a draw for employment; for both men and women. As the government works to accept the euro, there are several challenges and problems that must be overcome, to withhold the integrity of the Lithuanian Bank. The United States has amazing relations with Lithuania as it has become a part of the EU, and NATO in recent years. Lithuania has a strong economy that has seen growth in GDP rates over the last 10 years; focusing on the industrial sector. Furthermore, Lithuania is on target to become a very desirable place to live, with opportunities for growth and success.