Status of Agricultural Reforms in Lithuania : 1995 to 1997 (English)

Reforms in the Lithuanian food and agriculture sector started rather early, parallel with the struggle for independence. The country initiated a transition program in the food and agriculture sector to create an internationally competitive sector like what is found in Central European countries. Land reform and privatization, liberalization of the macro-economic environment, creation of a new incentive framework, and institutional and legal reform, represent the major components of this program. The Lithuanian food and agriculture sector, although showing the first signs of recovery, is still having serious difficulties, which are worsened by rural social problems related to the overall transition. Achievements in reforming the food and agricultural sector have been significant so far, however, they lag behind reforms in other economic sectors and in the macro-economic environment as a whole. This report not only updates the overall sectoral developments since 1994, but also provides both recommendations for the completion of reforms, and recommendations to cope with the challenge of preparing the country for a successful accession to the European Union. In addition to maintaining and strengthening the course of new agriculture-related macro-economic policies, acceleration of unfinished reforms in farming and land property relations, as well as in agroprocessing, seem to be the most important means of improving competitiveness and efficiency and farm incomes.