ABSTRACT
Lithuania has entered a stage of fast and stable economic growth following a fundamental social and economic transformation undertaken in highly unfavourable systemic conditions. The processes of industrial restructuring and modernisation have been particularly intense over the last two years as a result of earlier privatisation and foreign investment. The chapter addresses the issues looking initially at overall economic reform and dealing with the impact of the former integration into the Soviet Union before turning in more detail to the regional dimension of economic growth and charge. The natural resource base and geographic location of Lithuania also influenced the way in which it was developed within the former Soviet system. The creation of market institutions has been slower than the development of new economic activity due to the requirement for additional organisational and financial investment.
