NATO Fact Sheet

LITHUANIA FACT SHEET - January 2001

On the Way to NATO Lithuania works consistently to attain her main strategic goal of becoming an indivisible part of an integrated and free Europe. Lithuania seeks membership in a collective defense alliance united in common values and defending and protecting democracies. The people of Lithuania endorse this primary goal, which has remained the key foreign policy objective throughout the last seven years, including three Parliamentary elections. The Lithuanian Government is committed to the national strategy of integrating into NATO, which is complemented by the goal of acceding to the European Union. Lithuania has established a necessary legal framework, which is compatible with NATO requirements and provides for integrating into NATO.

The new Parliament (October, 2000) adopted a Memorandum on the Continuity of Foreign Policy, which states that Lithuania seeks the invitation to join NATO in 2002 and accession to the European Union in 2004. It also underscores that development of good relations with all neighboring countries as a priority element of Lithuania’s foreign policy.

In October 2000, the Vice-minister of Foreign Affairs responsible for overall coordination of national efforts in the framework of NATO integration (“Mr. NATO”) was appointed by the decree of the President of Lithuania.

Lithuania actively participates in the transatlantic policy and already today acts as an ally by contributing to global security. Lithuania is actively participating in the widest possible range of co-operative programs with the Alliance in order to correspond to NATO standards in all fields of political, civil and military life. The MAP process allows Lithuania to co-ordinate her activity with NATO.

Lithuania welcomes the Washington Summit’s decision to value aspirant countries on their individual basis and sincerely hopes to be invited to NATO membership in 2002.

Economy, Foreign Direct Investments and Trade

Economic development plays a key role in ensuring funding of the defense system and hence implementation of the plans of military preparedness.

In the first half of 2000, GDP grew by 2% compared with the same period of 1999. Forecasts of the annual growth rate vary from 2% to 3.1%. The estimated growth rate of GDP for 2001-2002 is from 3.5 to 4 %.

In September 2000, the annual inflation was 0.9% and cumulative inflation during the period from the beginning of the year till September was 0.6%. According to the forecast of the Bank of Lithuania, inflation will remain at its current level until the end of 2000.

Inflation

Source: Lithuanian Department of Statistics; 2000* - forecast

Over the past few years, Lithuania has become a primary location for foreign investors and a competitive center of product sourcing in the region.

During the first half of 2000, total foreign direct investments increased by 6.9%. At the beginning of 2000, the volume of foreign direct investments in Lithuania exceeded USD 2 billion, with Sweden, the United States and Finland being the largest investors.

Cumulative FDI 1995-1999 (USD mln.)

Source: Lithuanian Department of Statistics

In the first half of 2000, exports and imports increased by 26.1% and 10.3% respectively. Our trade with EU reached 45.6%, with exports to the EU markets increasing by 17% during that period. Currently, the share of the EU within the total trade structure of Lithuania amounts to 50%. The growth of exports in the first quarter of 2000, brought down the current account deficit to 2.8% of the estimated GDP.

Growth of National Defense Budget 

We fully recognize the necessity to appropriate sufficient human and budget resources in order to develop further Lithuania’s defense capabilities.

DEFENCE EXPENDITURE 1993 - 2001

DEFENCE BUDGET BY COST AREAS 1997 - 2001

The Law on the Strategy of Financing of the National Defense System has set the level for defense spending at 1.95 - 2 of GDP by the year 2001. Our plan presented in the Annual National Program (2000–2001) is based on the assumption that defense spending will amount to 1.95% of GDP in the year 2001.

The Law on Budget for 2001 has been already approved by the Parliament. Having expressed their firm commitment to continue current integration policies, the new Members of the Parliament strongly backed them by the necessary resources, approving the new State Budget with 1,95 per cent of GDP allocated for defence needs. We will seek to increase defence spending to 2% of GDP in 2002.

DEVELOPMENT OF INFRASTRUCTURE 2001

PROCUREMENT PLAN 2001

Building Self-Defense Capabilities

Lithuania continues to develop its Armed Forces on the basis of a Western model, which ensures an independent functioning of the Forces as well as a possibility to integrate them into NATO.

PARP remains the most effective tool in practical preparation for MAP implementation and development of credible national self-defense capabilities. Within the framework of the third cycle of PARP (2000-2006), Lithuania is implementing 66 Partnership Goals (PGs). PARP priority areas such as language training, C3 systems, logistics and air defense also correspond to the general priorities of the development of self-defense capabilities of the Lithuanian Armed Forces.

Both MAP and PARP tasks have a clear link to the national defense development objectives and plans. Tasks derived from Lithuanian NATO integration priorities make up core areas of the Lithuanian defense system development. In 1998, Lithuania adopted and commenced the implementation of Long-range National Security Enhancement Programs (ten-year Armed Forces Development Plan), which forms the core and the backbone of our Annual National Plan. According to the planed procedures these programs currently are being revised and updated and will be issued for the period 2002-2012.

National defense system priorities as well as annual Lithuania's NATO integration program is constructed on several layers:

• With the aim to make military service more attractive to the people, one of the highest priorities for the development of Lithuanian defense remains the improvement of quality of life. By improving their service and living conditions we succeeded in the sense that today the profession of a military service appears attractive to the Lithuanian labour market.
• As a matter of priority, we have been investing into the education and training. We have well improved the quality of education at our national military training establishments, such as the Military Academy in Vilnius. Experience of the supporting partners is of utmost importance for us to attain better results in this area: Lithuania annually participates in about 700 events in different fields of expertise. Already 1000 Lithuanian military officers and civil servants have been trained in the best educational institutions in NATO and partner countries. Furthermore, Lithuanian representatives annually participates in about 140 activities, derived form NATO/PfP Partnership Work Program (PWP) and constituting NATO-Lithuanian tailored Individual Partnership Program (IPP), which also includes participation in about 20 NATO/PfP and "in the spirit of PfP" exercises.
• The procurement of equipment and weapon systems is focused on the most necessary items, such as transportation means, light infantry weapons, man-portable anti-tank weapons, C³ equipment, naval mine-countermeasure hardware, and some others. Lithuania has already procured weapons and other defense equipment such as tactical radios, transport vehicles, coastal surveillance equipment, and anti-tank weapons from a number of Western countries. We are currently directly addressing the development of anti-air and fire support capabilities. The equipment procurement policy is oriented toward NATO-compatible systems, which makes Lithuania turn to Western markets, as they become increasingly open to the Central European democracies.
• In terms of infrastructure development we have built, with the support and active co-operation of our partners, national sea surveillance and, more recently, national and Baltic Regional Air Surveillance Systems. Their value is all the higher because they supply surveillance data to both military and civilian authorities and are already now technically prepared to exchange data with NATO. This requires a political authorisation by the Alliance and constitutes one of the priority directions of our current efforts.

Implementation of tasks set up in the Defense/Military part of the Lithuanian Annual National Program received special attention. In the beginning of the year 2001 Lithuania already has several tasks implemented and in large part of tasks' accomplishment achieved a progress:

• In its Annual National Program Lithuania declared implementation of 16 Partnership Goals it the year 2001. Currently one Partnership Goal, concerning replenishment at harbor is fully implemented; the implementation of 15 others is ongoing, one PG is rescheduled.
• Planning, Programming and Budgeting System (PPBS) is further being implemented. The Capstone document – Lithuanian National Military Defense Strategy has been approved by the state Defense Council. We are revising and updating Long-range National Security Enhancement Programs for the period 2002–2012. Defense Planning Assumptions are under completion.
• Progress was achieved in the area of English language testing for staff officers. The tests proved a high level of English knowledge for our military officers.
• Lithuanian armed forces have started several large-scale projects such as the introduction of the Artillery Battalion and the Air Defense Battalion.
• Lithuania completed the installation of local area networks in the Defense Staff and much progress was achieved in building the strategic backbone communication network, which will be completed in the first quarter of the year 2001.

Lithuania’s Contribution to Euro-Atlantic Security and Stability

Being a provider of stability and security in the region, at the same time Lithuania confirms her commitment and readiness to contribute in the future to Euro-Atlantic security and stability.

• Lithuania successfully carries out democratic and political reforms and has established the rule of law, a market economy, and civilian control over its armed forces. In 2000 Lithuania has became a member of the World Trade Organization; 
• Lithuania develops its military capabilities to respond to threats and challenges to the security of Lithuania and to act in conjunction with NATO or as a part of Alliance Forces;
• Lithuania fully shares the approach of the Alliance to security in the 21st century, supports and seeks to contribute practically to the efforts of the Alliance to preserve and reinforce Euro-Atlantic security and stability;
• Lithuania supports and is ready to bring her practical input to the development of the European Security and Defense Identity within NATO;
• Lithuania actively contributes to the achievement of objectives and implementation of mechanisms of arms control, disarmament and non-proliferation;
• Lithuania values the U.S.-Baltic Partnership Charter and co-operation within its scope as an important factor which promotes deeper bilateral and multilateral co-operation, contributes to the Euro-Atlantic integration and facilitates joint efforts to establish stability in the Baltic Sea region.

Being an active participant of NATO activities (directly and through EAPC and PFP programs), Lithuania supports and contributes practically to the Alliance’s efforts to prevent conflicts and manage crisis successfully:

• Lithuania participates in the NATO-led Stabilization Force (SFOR) mission in Bosnia and Herzegovina. In August 2000, Lithuania contributed 77 soldiers, who will serve in the SFOR mission in Bosnia and Herzegovina until January 2001, and will form the basis of BATSQN within the Danish battalion (DANBAT).
• Since 18 September 1999, Lithuania has been participating in the NATO-led KFOR “Joint Guardian” peace operation. At present, 30 Lithuanian soldiers serve as a component of the Polish battalion.
• Since August 1999, nine policemen from Lithuania have been serving in the UN Interim Administration mission in Kosovo (UNMIK). In August 2000, the Lithuanian Government extended their time of service in the UNMIK for another 3 months. The UNMIK staff in Kosovo also includes a civilian officer from Lithuania.
• From October 1998 through April 2000, two Lithuanian policemen had served in the UN mission (UNMIBH/PFP) in Bosnia and Herzegovina;

Lithuania is expanding further bilateral and multilateral co-operation with Denmark, Norway, Sweden, Finland as well as Estonia and Latvia in the fields of military assistance and development of the Baltic co-operation projects. Trilateral co-operation among Lithuania, Latvia and Estonia in the field of defense is an important factor in developing the Baltic States’ defense capabilities within the framework of their preparation for NATO membership and strengthening the security in the Baltic Sea region. In June 2000, the Regional Air Surveillance Co-ordination Center (RASCC) was opened in Karmėlava, Lithuania, and in the autumn of 1999, the first group of soldiers started studies at the BATDEFCOL set up in Tartu, Estonia. BALTBAT and BALTRON projects are further developing.

Lithuania attaches great significance to the strategic partnership with Poland and Poland’s support for Lithuania’s aspiration to join NATO. Lithuania will continue to work in the future to strengthen further co-operation with Poland, as it contributes to the strengthening of security and stability in the Baltic Sea region. Lithuania is the only NATO candidate country, which has a joint military unit – LITPOLBAT - with a NATO member state, Poland.

Good Neighborly Relations

Lithuania contributes to NATO defense policy by pursuing a foreign policy of integration, co-operation and regional stability.

Vilnius Conferences of 1997, 1998 and 2000, proved that Lithuania’s capital city has established itself as a forum for discussing the development of good relations with all neighbors and integration into Euro-Atlantic structures. Together with the other states aspiring for membership in NATO, in May 2000, Lithuania signed in Vilnius “The Vilnius Statement” confirming its commitment to the creation of integrated and free Europe, and determination to take practical and political efforts to further improve the specific qualifications as well as calling on the member states of NATO to invite new members at the next NATO Summit in 2002.

Lithuania maintains and works towards further strengthening of good neighborly relations with her neighbors as well as the other states of the Baltic Sea region. Lithuania also promotes these relations on multilateral forms actively participating in Baltic Sea Region Council, Baltic States Assembly, etc.

Lithuania will continue to develop her strategic partnership and co-operation with Poland, as it will contribute to the strengthening of security and stability in the Baltic Sea region. This includes successful work in the Lithuanian-Polish Interparliamentary Assembly, the Council of the Intergovernental Co-operation, and the Consultation Committee of the Presidents.

Lithuania, whose relations with Russia are stable, aims to pursue vis-à-vis Russia a policy designed to ensure mutually beneficial practical co-operation on the basis of equality and in the spirit of good neighborliness, providing for the strengthening of mutual confidence and understanding, and promotion of the environment favorable for Lithuania’s integration into the European and Euro-Atlantic structures. Lithuania seeks to enhance Russia’s involvement in the Baltic Sea regional co-operation through the framework of the Northern Dimension Initiative.

Lithuania’s relationship and co-operation with the Kaliningrad region can serve as an example of good neighborly relations. Lithuania, as the leading investor in that region (Lithuania’s share total 80% of all investments there), has already invested USD 10 million and opened 400 enterprises in this part of Europe. From January through October 2000, Lithuania invested nearly USD 4 million in the Kaliningrad region. Together with her strategic partner Poland, Lithuania works to identify Kaliningrad related projects of common interest to Lithuania, Russia and Poland.

Lithuania does not want Belarus to be internationally isolated. Maintaining pragmatic relations with Belarus, Lithuania hopes for further democratization of this neighboring country.  

Revised: October 29, 2002
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