Abstract

Lithuania is one of three Baltic republics. Its area is 25.2 thousand square miles and it has a total population of 3.72 million people. The republic is currently moving towards independence. There are numerous political changes as a result. One outcome of these political changes is the reform of existing economic policies that have been governed by highly centralized planning systems since the incorporation of the republic into the Soviet Union in 1940. All sectors of the economy will be affected by these economic policy changes. Economists, government legislators, and leaders of agricultural and industrial enterprises were heavily involved in the process of formulation of economic reforms. The final goal of the reforms is to move towards a market-oriented economy. Within this framework of overall reform, the agricultural sector has been emphasized because of its nature and its importance to the national economy. Traditionally, the republic has been agriculturally oriented. For instance, the contribution of the agro-industry to the total GNP of the republic was 5.4 percent in 1989, compared with 42.6 percent in 1980 and 50.3 percent in 1975. The rural population, heavily employed in the agricultural sector, comprises 31.5 percent of the republic's total population.