19 NOVEMBER 2009

A joint initiative of VŠĮ Mes Medija &

www.litnews.lt Welcome to A year to Remember

Ray Vyšniauskas & LiTnews Deimantė Dokšaitė They say a week is a long time in Welcome to the first edition of politics, so a year must be an eterni- LiTnews, a fortnightly English lan- ty. Prime Minister Andrius Kubilius guage newspaper. must be feeling an eon has passed With a small but dedicated staff since he formed a ruling coalition and the help of ELTA we will bring one year ago on 17 November 2008, you the news that covers day-to-day and took the reins of the Lithuanian life, and offer a review of the events Seimas, a coalition he prophetically that are important to Lithuania. named The Coalition of Change. With the help of our readers our aim The victory celebrations after last is to develop the newspaper with a mix year’s general elections will have to go of news, interviews and commentary down as the most short-lived in Lithua- that spans the full gamut of popular nian history, as within two months of its and expert opinion. first sitting the members of Seimas were It is quite fortunate that our maiden looking out of their windows at a mass issue coincides with the first anniver- protest that eventuated in the deploy- sary of the current Seimas, and as this ment of riot police and the use of tear gas sort of paper is always going to be a re- and rubber bullets. view of events, it is the perfect opportu- To be fair there were a lot of circum- nity to look back on the past year. stances way beyond the control of the Seimas and the government, number We also have interviews with one of which was an economy sucked Kęstutis Kemzūra, and Andrius spiralling downward by the worst world Užkalnis, as well as an article about economic recession since the Great De- opportunity in tough times by Vincas pression. Being at the helm of a small Party, the party of celebrities headed by as Speaker of the Seimas. working in a more transparent manner. Giedraitis. So please enjoy. nation allows little control on the waves Arūnas Valinskas, which in their first • October 17 Irena Degutienė is elected One of the main concerns of the of economic gloom that toss any country election won 16 seats and an instant invi- Ray Vyšniauskas Speaker of the Seimas. government was the dreaded ‘D’ word around, especially one that did not put tation to join the ruling coalition. – devaluation. While a floating currency Editor any reserves aside in the good years. • September 16 preparation for the next Looking back on the achievements of budget commences. along with a much larger population base Then there was the added intrigue of the current coalition government, you helped Poland ride out the worst of the the newly formed National Resurrection would have to say there is more bad than • September 20 the opposition launches economic storm, Lithuania’s problems good news, but let’s go through their an unsuccessful no-confidence motion were compounded by the fact that most litany of change. against Education and Science Minister bank loans were issued in euros, and a Gintaras Steponavi ius. • They got straight down to business č devaluation of 20% – 40% would have when Valinskas is finally elected Speaker IN BETWEEN THESE specific events meant a double hit on loan repayments, of the Seimas, but only after a controver- the government controversially consid- especially considering the already heavy sial second vote on 18 November. ered adding the Labour Party to the rul- falls in real estate prices. ing coalition, there was much criticism • Kubilius is confirmed as Prime Minister With no reserves the government of energy wasted on unimportant issues, on 27 November. chose to placate the concerns of the IMF especially under Valinskas’ tenure, the and EU economic gurus, and this meant • At the end of December the Seimas policy on car hire by members of Seimas, harsher fiscal measures, most notably worked until midnight in putting the fin- and the ill-advised ‘Protection of Minors through raised taxes and lowered wages, ishing touches on tax reforms with little against the Detrimental Effects of Public which in turn does little to raise popu- or no public consultation. Information’ legislation that brought larity. • December 22 the budget is passed by strong international criticism and EU THE ONLY CONSOLATION Lithua- the Seimas. condemnation. nian’s could draw was that things were • January 16 there is a meeting of trades While it is usual for politics to be still not as bad as in Latvia, with the union which end in riots in front of the a rough and tumble business, it is added expectation that if devaluation Seimas; breaking windows, calling out speculated by many that this is the least was deemed necessary, it would hit our the riot police and extensive use of tear liked government ever. In the 11 years northern neighbours first. gas and rubber bullets. since Vilmorus has been taking polls, While there is still talk of more cuts • May 19 the opposition launches an their data shows this government the and hardship to come, some are predict- unsuccessful vote of no-confidence in Fi- least liked, with the government (trust ing that as other larger economies seem nance Minister Algirdas Šemeta, but later 11.5%, distrust 59.9%), parliament to be moving out of recession, then he was sent to Brussels to fill the position (trust 4.8%, distrust 76.3%) and politi- Lithuania too may be either at the bot- vacated by President Grybauskaitė. The cal parties (trust 4.1%, distrust 76.7%) tom of the cycle or close to it. The threat post of Finance Minister was filled by taking the bottom three places in a poll of devaluation, though still present, is Ingrida Šimonytė. of general trust in public institutions. much subsided since summer and gov- • In June Valentinas Mazuronis, of the In research conducted by Eurobarom- ernment heads throughout the Baltic are Order and Justice Party, becomes the eter the popularity of the Lithuanian more confidently declaring it no longer Opposition Leader. Seimas is held in equal 25th position an issue. • July 22 the Minister of Social Security with Bulgaria among the EU 27 coun- So on the occasion of the Seimas’ first and Labour, Rimantas Jonas Dagys, is tries, trailing only behind Latvia. birthday, perhaps they might finally be replaced by Donatas Junkauskas, be- To the credit of the ruling coalition, able to move forward, rather than just cause he was not validated by President they learnt a lesson from the unfortunate paddle frantically in an effort to stay Grybauskaitė. riots in front of the parliament, which still. • Mid July the National Resurrection did prompt them to seek greater public This Seimas really has brought to light Party is split into two fractions, and on input into policy, and without accepting the full fury of the curse: May you live in October 15 Arūnas Valinskas is deposed all external advice, they seemed to start interesting times. News LiTnews LiTnews News The future of Lithuania is in the hands of creative people - Grybauskaitė At the initiative of President Dalia “Lithuania’s economic growth, its social Grybauskaitė, the Seimas and the Inter- well being, and the pride that its citizens have national Cultural Programmes Centre, a for their country will depend on our innova- forum for creative society has been opened tive ideas and our creative ability to translate for the first time in Lithuania according to them into reality,” the President said, placing a the Press Service of the President special emphasis on the importance of interac- Addressing members of the arts, culture, tion between culture, education, science, and educational, and business communities, who business. came together to discuss possible actions for President Grybauskaitė pointed out that using and streamlining the potential of creative a creative person was the spark that drove individuals to build a modern state, President Lithuania forward. Therefore, she said, we Grybauskaitė invited all of them - artists, scien- must seek ambitious goals, we must think and tists and entrepreneurs - to make a joint effort act as future disseminators of creative ideas not towards this purpose. only in Europe, but also worldwide. Energy security discussed by Lithuanian and Polish Presidents

President Dalia Grybauskaitė met with her financing for this project from the European Polish counterpart Lech Kaczynski. Commission within the new EU Financial In Warsaw, the two Presidents discussed Perspective 2007- 2013,” President Dalia important energy-related issues: the course Grybauskaitė underlined. of building an electricity bridge connecting Lithuania and Poland, and the problems of The Presidents also agreed to co-patron secure energy supply in Europe. events scheduled in the coming year to com- “Lithuania is prepared to co-operate closely memorate the 600th anniversary of the žalgiris with Poland in implementing the electric- Battle, announced the Press Service of the ity bridge project, and will seek to secure President.

Lithuania To Chair Chemical Weapons Convention Grybauskaitė still Copely citizenship in Lithuania will chair the Fourteenth Session of the violation of Constitution Conference of the States Par- most popular ties to the Chemical Weapons Vilnius, Nov 16 (ELTA) - A survey Andrius Kubilius, leader of the carried out in October shows Conservatives, most negatively. In conformity with the Con- or not Copely met the requirements Convention (CWC) from 30 stitution of the Republic of November 2009 to 1 Decem- that Lithuanian residents viewed An astonishing 82% expressed an for Lithuanian citizenship set out in President Dalia Grybauskaitė most unfavourable attitude towards the Lithuania, the Law on Citizen- the Law on Citizenship. Both times ber 2010. ship of the Republic of Lithua- favorably (89% of respondents). prime minister. The Session of the Conference of nia, and the rulings of the the Commission adopted a negative the States Parties to the Chemical Seimas Speaker Irena Degutienė, A large number (78%) of the re- Lithuanian Constitutional Court decisions and advised the President to Weapons Convention, also called who made the largest jump in the spondents were similarly against of 30 December 2003 and of 13 refuse Lithuanian citizenship to Kath- the Conference of the States Parties, September ratings, remained in former Seimas Speaker Arūnas Va- November 2006, and taking into erine Leigh Copely, stated the Press is the main decision-making institu- second place with an approval rat- linskas, former Prime Minister So- account the advice of the Citi- Service of the President. tion that joins delegates of 188 States ing of 63%. cial Democrat Gediminas Kirkilas zenship Commission as well as Parties to the Chemical Weapons Katherine Leigh Copely is the part- Ex-president Valdas Adamkus (74%), MEP Vytautas Landsbergis the relevant circumstances and Convention. ner of Deividas Stagni nas. They have received 56% of votes. MEP Vilija (74%), Kazimira Prunskienė (64%), documents submitted, Presi- ū Lithuania, as the chair of the Con- Blinkevičiūtė was gathered 51%. who initiated the establishment of dent Dalia Grybauskaitė has formed a successful skating pair and ference of the States Parties, will play a new party, and MP Liberal Cen- decided not to grant Lithuanian were hoping to represent Lithuania at an important political and coordinat- These four public figures are the trist Artūras Zuokas (63%). citizenship by way of exception the Vancouver Winter Olympics. ing role until the next Conference only ones that were favorably to Katherine Leigh Copely, a of the States Parties in the end of viewed by over a half of the re- The highest jumps in approval national of the United States of The duo took 14th place in the 2010. Lithuania’s Permanent Repre- spondents. were for Degutienė, who improved America. 2009 World Championships which sentative to the Organization for the According to a poll conducted by by 34%, Viktoras Uspaskich was The Citizenship Commission held qualified them for the Vancouver Ol- Prohibition of Chemical Weapons is Baltijos Tyrimai between 26 Octo- up 8%, and the greatest decrease two sittings (26 March 2009 and 22 ympics, and are widely acknowledged Lithuania’s Ambassador to the Neth- ber – 6 November, the respond- was for Prime Minister Kubilius October 2009) to consider whether as having great potential. erlands Vaidotas Verba. ents evaluated Prime Minister who dropped 8%.

CONTACTS LiTnews is published by VŠĮ Mes Medija The views expressed in these pages are not necessarily those of the publisher. Telephone: +370 5 2122448 Editor Ray Vyšniauskas [email protected] Deimantė Dokšaitė [email protected] Alistair Day-Sirrat [email protected] Information, Editorial, Administration, Subscription [email protected] News LiTnews LiTnews News Vilnius Airport cheapest in Europe for new destinations Vilnius International Airport (VIA) set new prices to promote new flights from Vilnius. This year VIA has already reduced passenger fees paid by airlines, which stood at LTL40. Below is a listing of the films playing at Pasaka Cinemaboutique during the next “As compared to the neighbouring VIA has also cut charges for airlines two weeks. Call or check on the internet for airports, that was a high price to pay. and passengers travelling from cur- session times. All film titles written in origi- Therefore, now, when airlines count rent destinations. nal language, all films shown with original each litas, this price was a serious The VIA cost cutting programme sound and Lithuanian subtitles. barrier for new flights”, said Tomas was launched this year to cut costs up Vaišvila, Director General of VIA. Svetat e golyam i spasenie to LTL85 mil, and next year costs are After introduction of the new VIA planned to decrease a further LTL60 debne otvsyakade (Bulgaria, pricing policy, the passenger fee for mil. Slovenia, Hungary, Germany) the new regular flights will be LTL4 After considerable savings of funds, Lietuvio genas (Lithuania) (compared to LTL10.35 in Riga, the Ministry of Transport and Com- LTL31.74 in Tallinn and LTL55.2 in Gomorra (Italy) munications obliged VIA in principle Warsaw). to revise its price formation for serv- J`ai toujours rêvé d`être un “That’s a serious reason for airlines ices to make Vilnius Airport the most gangster (France) to revise their plans in Lithuania”, says competitive, attractive and accessible Vaišvila. in Europe. Les Choristes (France) Pranzo di ferragosto (Italy) Vasaros Media Studija 2009 airBaltic Plans New Direct (Lithuania) Whatever Works (USA) Flights from Vilnius Per un pugno di dollari (USA) airBaltic announced that it is to Rome from 11 January. opening five new direct flights Two lovers (USA) airBaltic president and CEO Ber- from Vilnius Airport. The new tolt Flick: “The Vilnius airport has Volver (Spain) flights were made possible begun very targeted policies with the through an initiative of the Planet of the Apes (USA) lowering of its tariffs. This will al- Lithuanian government of low- low airBaltic to launch new non-stop Star1 to launch Vilnius-Milan ights El bosque animado (Spain) ering tariffs at Vilnius Interna- flights, and other airlines will also be Vilnius, Nov 17 (ELTA) - This week sengers flying from Lithuania to Italy tional Airport as of 1 December attracted to the Lithuanian capital Buena Vista Social Club (Cuba, Star1 Airlines launches regular flights until the direct flights were stopped. 2009. airBaltic is signing a new city. We are convinced that next year Germany, USA, UK, France) from Vilnius to Milan, the restoration The airline will start operating flights agreement with the airport. Vilnius airport will have every chance of a direct link between Lithuania and to become the most rapidly growing to Milan from 21 November. Star1 Azuloscurocasinegro (Spain) The new destinations are Paris, Italy. Airlines will fly to Milan’s Malpensa from 18 December; Munich from 19 airport in Europe.” Under the Sun (Sweden) According to Martynas Laivys, Airport from Vilnius Airport twice December; Berlin from 21 Decem- Earlier this year airBaltic also start- head of Star1 Airlines, this route was a week, on Tuesdays and Saturdays. The Fall (India, UK, USA) ber; Amsterdam, from January 4: and ed flying into Kaunas. planned a long while back because They intend to increase the number of Ë bout de soufflé (France) there used to be a large number of pas- flights in the summer season. Film Portrait (USA) Kutenimai (Lithuania) Irish Cinema Days Turkey Lifts Visa Requirements for Inglourious Basterds (USA) Irish Cinema Days will be held from Lithuanian Tourists 20-22 November at the Lithuanian La colina del dragon (Spain) Filmmakers Union, corner Vasario The Government of Turkey lifted visa ing the facilitation of visa issuance 16-osios 13 and Šermukšnių 1. requirement for Lithuanian citizens procedures for individual categories Artimos šviesos (Lithuania, Ger- travelling to Turkey as tourists. The of Turkish citizens during a visit of many) Three films will be screened - new Ambassador of Turkey to Lithua- the then Minister of Foreign Affairs of nia, Omer Altug, presented the note Turkey, Ali Babacan, to Vilnius on 20 Les glaneurs et la glaneuse Saviours - A documentary fol- lowing three young boxers from the confirming the Turkish Government’s February this year. (France) Dublin boxing club, St Saviours decision during a meeting with Vyg- From now on, Lithuanian citizens can audas Ušackas, Lithuania’s Minister travel to Turkey without visas and stay Stiklainis uogienės (Lithuania) The Front Line - Joe Yumba, a she is no longer a child and not yet of Foreign Affairs on 12 November there as tourists for up to 90 days over Primary (USA) musician from the Democratic Re- a woman. in Vilnius. a period of 180 days. Visa require- public of Congo, receives the news he The films will be screened in their “Turkey is among the most popular ment remain for persons travelling to Max Manus (Norway) has been waiting for - his application destinations for Lithuanian tourists. Turkey on other purposes. The visa- for asylum has been successful. But original language with Lithuanian sub- Fa yeung nin wa (Hong-Kong, Therefore, lifting the visa requirement free regime for Lithuanian tourists is Joe’s happiness is short lived. titles. Entrance is free. The festival is France) is very important for Lithuania,” Minis- already in force. 32A - Semi-autobiographical story organised by the Embassy of Ireland ter Ušackas said during the meeting. In 2008, about 90,000 Lithuanian Shadows (USA) by director Marian Quinn set in Dub- in Vilnius, the Irish Film Institute Lithuania’s Foreign Minister raised citizens visited Turkey and spent a lin during 1979 and depicts the “in- “Reel Ireland” programme and the the issue regarding a visa-free regime total of about LTL4.7 million for Turk- Ricky (France, Italy) between” time of a girl’s life, when Lithuanian Filmmakers Union. for Lithuanian tourists and regard- ish visas. Trumpametražių filmų naktis „Europos pašvaistė“ (Festival) Die drei Räuber (Germany) Vilnius, kurio nepažinojau (Lithuania) Die grosse Stille (Germany, France, Switzerland)

Tel: (85) 261 15 16 Šv.Ignoto 3/4, Vilnius www.kinopasaka.lt Interviews LiTnews LiTnews Interviews

Actions speak louder than words

have to prepare for the World Cham- attention to differing aspects. You is looking for clubs for me to coach. judged by your results. Even though it Ray Vyšniauskas pionships, but I don’t know what will have to see and feel the processes that What is your agreement with the doesn’t always fully reflect the effort We were grateful to Kęstutis happen. I do know that the Lithuanian are taking place. There are different Lithuanian Federation you put in. In previous champion- Kemzūra (pictured) for sparing Basketball Federation is doing all it players, and groups of players that regards the aim and strategy of ships teams have played well but not some time to talk to us about his can to find a way for us to compete. create different dynamics, which all the team? achieved results, and vice versa. I haven’t heard about the latest devel- has to be taken into account. appointment as Head Coach of the What is your coaching style? Do opments, but someone made a sug- With the Lithuanian Basketball Lithuanian Men’s National Basket- You pick players not just for their you demand discipline to stick to gestion that the final places should be Federation I have the final say on ball team. basketball ability. You want to know a system, or do you give players decided by a qualifying tournament, what happens with the team. Of about their off-court life as well. course we have discussed strategy, more freedom? and I like that idea. The national team is a bit different, aims and goals. Mostly I talk with You always start with a plan and What are your first impressions but you still have to gather the best In the end is it a matter of paying Mindaugas Balčiūnas, he has become it changes over time. Basketball is a players available. That is one step, of your new job as Head Coach for the ticket? my liaison there, and it is usual that game and you’ll find very few teams but then they have to become the best of the Lithuanian Men’s National No, it is not totally a matter of most communication goes through a with such a tight system that players team, and that all has to be done in a Basketball team? money, but it seems an important particular person, and we have had very short space of time. What can you say? Like all jobs it consideration. The sum of 500,000 has its pressure. It has a big respon- was mentioned. The job is to sell your ideas and sibility and like everyone I will work vision to the team and for them to as hard as I can, but hopefully with Have you spoken to the players? accept it and move forward together ... I agree with the more energy and enthusiasm. I know I haven’t spoken to the players as as a unit. They need to know that the there will be more pressure later on, yet, and that will be one of my first coach knows what he’s talking about. quote that after but that is something you have to deal jobs. I will try to meet them when I On the one hand it’s easier than with when the time comes. can, others I will have to talk to over coaching at a club from the view that the phone. What about the team itself – what players arrive and are committed and each loss a small are you first thoughts on its for- It’s not just a matter of talking want to play for their country and not mation? about them playing or not, and not just money. In the national team you just about basketball, I want to learn come for sporting principles. part of you dies There has been a lot of talk about about their life plans. It’s more a ques- bringing more youth into the team. In a club you play for money. There many discussions. There are always can’t move out of. tion of where they are and what they can be monetary problems with play- many technical questions as well as I work more on establishing prin- For me I just want the best and the want to achieve. Every team has dif- most motivated players, and then of ers, late wages, and this creates a game plans to decide. We have talked ciples that the players can then use ferent problems and concerns which whole new set of problems. This isn’t about everything. as a basic structure, my strategy is course a lot depends on whether we have to be dealt with. I want to know will be playing in the world champi- a factor in the national team. I am open about my work and what based more on principles than a rigid how they look at their role and to see I do, but at the end of the day the structure. onships. what they want for themselves. When do you start the serious If not, then I think it’s worth giving work of coaching? responsibility is mine. I am ultimately What is a good shot, what is a bad I have worked with many of the answerable for the success or other- players an off-season to relax and re- The job is already taking place. shot? - it’s often not easy to make players, some less so, but I have good wise of the national team. that judgement. The players are on cuperate. Age is not the criteria from relations with them all. I think that Planning, staff, and looking to the which you choose your team. All of future. What’s happening now is un- You have a quiet and reserved the court, you can’t expect them to in the future it will stay that way. I be robots. But a lot depends on the them could play well in 2011, but have no worries with any players, and seen, it is the creation stage. It is like character for such a high profile no-one knows what might happen in an artistic composition, it looks like position. player. One might have more ability I can’t say that they would have any which gives them more freedom to that time in terms of form, injury or nothing is happening but much of the I don’t like to boast and it is not towards me. move away from the rigidity of the retirement. future is being planned and idealised. necessary for me to seek attention for How would you describe the job structure. What is Lithuania’s chance of get- Will you also coach at club level? its own sake, and I understand that at- – diplomatic, psychological or tention only usually gets in the way. So what have you been doing ting a wildcard invitation to the just physical training? I am a hired coach on contract with world championships? At the moment I haven’t won or lost while waiting for the decision on The psychological aspect is present the Lithuanian Basketball Federation, a game, but there is a lot ahead. the world championships? December 13 is when the final but my requirement was that I have in every club. Any team is like an The most important thing is that we I’m still picking my support team. decision will be made and only then organism and every organism is dif- the right to work with club teams, will we know for sure whether we and that was approved, and my agent don’t take short cuts and work solely We have no time pressure so I can ferent, you have to pay more or less for the win. In this business you are look at it properly and give it full Interviews LiTnews LiTnews Interviews consideration. You have to talk to people, find a time to meet, then they Deimantė Dokšaitė have to have time to think about their His articles in Lietuvos Rytas are very answer. It’s not a process that can be sharp and drive most of his readers rushed, and if it’s done properly it insane; they go mad and flood the will be much better in the long run. newspaper’s website with angry com- The full team should be in place be- ments. fore too long. His programs on Lithuanian Radio (Li- In regards to the championships, etuvos radijas) are totally different – in a it’s not just me waiting for the deci- calm, gentle voice he talks about the UK, sion, all Lithuania is waiting. I am where he has lived for the past 15 years, keeping an eye on the form of play- and impressions from his travels around ers. As I don’t have a club I have more the world. time to see how all our players are On 17 December Andrius Užkalnis performing, and now I have the time (pictured), a journalist, is going to launch to look deeper into each of them. It is his first book England: About those peo- as much a hobby as a job and it is lucky ple and their country (Anglija: Apie tuos I have the extra time to do that at the žmones ir jų šalį). Andrius agreed to share moment. with us his thoughts about the similarities and differences between Lithuanian and How do you plan to deal with the British people and to tell us a little of what pressure when it does arrive? the book will be about. Expectations are always high. In Your book ‘England: About those peo- Lithuania I know this. ple and their country’ will be published English life is about individuality I don’t know what happened in soon. How did the inspiration to write it the last championship, why some come about? Is it from the your love of the world is astounding. Coming from a I like it when a judge, a policemen, even players didn’t go and why we still the country? small country with very insular, peasant-like a tax inspector says “I”, and does not be- expected a medal. The chances to I am not a great believer in inspiration. mentality and parochial approach to almost lieve he must hide behind an organization achieve good results are rare enough It is overrated. Except where one is so de- everything, the scale of the best in British or a body. This is the single biggest differ- already, and to put extra pressure on pressed and tired that they can hardly phys- ambition and aspiration is awesome. I tried ence that I can admire. everyone concerned just makes the ically get out of bed, I do not think mood to communicate this in my book. Next to it, the natural mistrust that an task harder. should stop someone from writing. If one What will the book be about? Is it some Englishman feels toward people who take has something to say, that is. I love writing kind of travel guide? Or intended for themselves too seriously. Someone who is There are a lot of components you and never had to wait for inspiration. those who want to move to England? not able to laugh at themselves is seen as need to put together and you also I spent 15 years in England and often It is not a travel guide as such. Not seriously socially deficient, or at best pomp- have to have realistic expectations. noticed how people of my country (of whom ous and humourless. In Lithuania, pomp- There are not many teams that can that it would not be useful for someone there are tens of thousands here) viewed who travels to the UK (indeed, in the last ousness comes with social status and often put pressure on themselves and still it in a simplistic and critical way, and most chapter I included some practical tips and needs to be engaged so that a person is perform, Spain was one and they of this criticism came out of ignorance. I suggestions about enjoying the best that respected as a figure of authority. I always stated before the games that they wanted to help them. I hope it does not the country can offer). disliked that and England was a breath of came to win, and then achieved that sound too arrogant or pretentious, but God fresh air for me in this respect. I would not like to be part of anyone’s tween Lithuanians and English people? despite a slow start. They were good is my witness, many of them could do with decision to relocate to another country, and English life is all about individuality. It The English are famous for their pecu- some help on the understanding front. Why enough to recover. And the USA can not because “incitement to emigration” has is not about collective. Being a naturally liar humour. Do you have a favourite are houses in England so small? Why there state at the start of a tournament that only been recently decriminalised in Lithua- private person and not a great fan of ideas English joke and would share it with our are two separate cold and hot water taps? they are there to win, but those teams nia (this legal provision did exist although I of communal work, play and amusement, I readers? Why is an Indian meal not a foreign meal are rare. never heard of anyone prosecuted on these My main observation - and I note this but part of the national diet? Why do many took to England very well. I enjoy privacy charges - call it a bizarre anomaly). A deci- in my book - is that the principal aspect You have to set your maximum single malts reek of peat? All these things and people minding their own business. I sion to move has to be one’s own; however, of English humour is that it is not separate goals and they need to be achievable. need explaining. I hope to have done it in a appreciate the understatement and hints the more you know about the country, the from serious activities and thoughts. The Serbs went there with much sympathetic and engaging way. rather than theatrical, Baroque display lower expectations and they came better. of emotion that most Lithuanians are so We in Lithuania think that joking is an We Lithuanians are not the most open- home with the silver. I think this applies to all travel - whether fond of. activity which has to know its time and minded of nations, and travelling does not it is for ten days or ten years. Many disap- place. A normal Englishman would not im- sit well with us, generally. We have some This does not make me a very good and Have you noticed a change in pointments stem from ignorance and lack agine a presentation without a joke, a bit of brilliant travellers but they are not the norm. typical Lithuanian, but I guess it takes all your life since taking the job? of homework. The same happens when self-mockery, a tongue-in-cheek reference. And the first reaction of a Lithuanian abroad sorts. No. There has been no reason for it half-baked myths and stereotypes take The only person in UK who can go on for an is ridicule and derision. It is not just about to change yet. the place of some old-school preparation. I I also enjoy the concept of a personality- hour with a sombre expression on his face being impolite. The bone-headed peasant have nothing against stereotypes and gen- centered world. I like it when people refer and be an absolute killjoy, Lithuanian-style, approach is, first and foremost, hurting the Do you get advice from stran- eralizations - I think it is part of human na- to “I” and “my” when talking about their is Prime Minister Gordon Brown, but he is Lithuanians themselves. Instead of seeing gers? ture to draw conclusions, that’s what analy- job, their role and their authority. When I not English anyway and I am not really sure another country and learning from it, they Not so far. Maybe I’m not as easily sis process is about - but the trouble with came to England, it surprised me to hear if he is truly a person. He would also qualify forever search for proof of how inferior and recognised as yet, and I believe a lot lazy stereotypes is that they are unhelpful. a middle-level manager of a company say for the best English joke, albeit a macabre nonsensical it is. will depend on when we start playing I believe that the best aspect of travel is “on MY payroll, I have 20 people”, “people one. He is also a proof that not only Lithua- and how we will go. So far I can walk I particularly wanted to be helpful to catching glimpses and reflections of our whom I pay” - it was unusual but I thought nians can have scandalously inept and calmly down the streets. people of the older generation: those who own memories and bits of knowledge. If it was brilliant. A Lithuanian manager would socially maladjusted people in high offices. now travel to UK to see their grandchildren you are working on shoddy knowledge, it is never say that. He would refer to the com- Sorry to have brought politics into this, Can I ask if you are a Žalgiris or as their children moved to this country, and very difficult to do. pany, the organization, any large entity, or but I was intentionally keeping these topics Rytas fan? often it is one of their first opportunities to In your opinion, what are the main simi- any entity, for that matter. He would never off the pages of my book, so I guess they travel abroad. They hold a lot of stere- I’ll be diplomatic. When either larities and the biggest differences be- use “I”. had to surface somewhere. team plays in the European cham- otypes and myths about England, fostered pionships I support both teams. But by Russian textbooks and TV decades ago. generally I look at games more pro- I wanted them to be better informed than fessionally - what they do and how that. they do it. I know people in both of In this way, I am both cruel and kind in the teams so there is a personal aspect my writing. I debunk myths mercilessly but as well. at the same time I hope that the information and understanding that people are left with While we teach our children that in the end is helpful. competing is more important I would never say that I fell in love with than winning, as a coach your England. I came to know it quite well, and only option is to win. How does many of the things here I admire. There are that manifest itself in the real things that I like less - like the encroaching world? childishness, political correctness, the pe- Wining is number one, no discus- culiar fascination of the educated classes sion, but with the kids it’s more with the wackiest left-wing ideas. But I tend about competition, but I see that even to try and understand the reasons behind they want to win. There is a sporting them even when I know full well I could not instinct that is needed to be an elite accept them. sportsman, and all elite sportspeople As I said on one occasion, when people have that desire to win. like Polly Toynbee or George Monbiot of the Guardian can write what they like, it But it still requires passion. If you is called freedom of speech. However, come home from a win or a loss and when their lunatic rants are seen as the don’t care then it’s time to give up the mainstream thought of the educated class, game. The passion has to be there. it is creepy. I forget who said it, but I agree with Still, I think the country is great: the lay- the quote that after each loss a small ers of history, the openness to the world and part of you dies. the sheer taste for travel and exploration of Economics & Finance LiTnews LiTnews Economics & Finance

New Ideas from Forgotten Economists Opportunity for Cutting Edge sectors in the Lithuanian Economy During Times of Crisis

Vincentas Giedraitis is an ability of large American automobile infrastructure to need to replace. The aforementioned example of economy does improve - which with assistant professor in the industries to rapidly change products One sector that Lithuania is special- car industries can be related to the time it will - it will take a far smaller Department of Theoretical under today’s market conditions. The izing in quite successfully is biotech- economy of Lithuania. Such old “push” to restore Lithuania’s economy Economics at Vilnius University American auto industry is faced with nology, where it is a regional leader. Europe economies as Germany are to a strong position, compared to much short and long term dilemmas. In the According to the Lithuanian Biotech- juggernauts, compared to the nimble larger EU-15 countries. The IMF’s The ideas of 20th century economist short term, it has taken such measures nology Association, the biotech sector Lithuania. The country has a very high- Robert Zoellick stated on 22 March and sociologist Joseph Schumpeter as reducing costs by asking employees in Lithuania has been growing by about ly educated population and competitive 2009 that, weighed down by large, can be drawn upon in the case of to take extended vacations. But in 22% yearly for the past five years. Two universities that produce bright gradu- sluggish economies, the global eco- Lithuanian to emphasize the impor- the long run, will it be able to adapt such companies, Fermentas and Sicor ates. Thus, all things equal, per capita, nomic recovery is expected in 2010, tance of innovation on one hand, as quickly as new, smaller, and more Biotech were sold in 2007 for more Lithuania needs fewer innovators to at which point major economies will and the danger of stagnation on the innovative companies? The possibility than 28 million (Innovations Report make potentially large changes in its break even. However, developing na- other. that such massive industries, such as 2008). much smaller economy, which unlike tion economies are expected to expand General Motors, which employs some EU-15 countries, is still in a condition by up to 4.5% (World Bank 2008). Innovation can be a means by Another positive development of 320,000 workers falling into bank- of flux. which to rise in the global economic the biotechnology industry in Lithua- Regionally, the European Com- hierarchy, while stagnation - a means ruptcy is a very real concern, while nia is related to immigration and the Another advantage for Lithuania in mission states that biotechnology will to fall. Schumpeter suggested that little known start ups such as Tesla “brain drain” phenomenon. Seventeen terms of innovation is the attractiveness be a very important part of Europe’s innovation and entrepreneurship act Motors offer compelling (and far more advanced Lithuanian experts who had in the previous regard to foreign direct economy in the coming decades. Ernst as a sort of engine for economies to efficient) alternatives to buyers. previously emigrated have decided investment. Although Lithuania may and Young find that the Lithuanian bio- expand. National institutions such as Lithuania has certain real advantages to return to the Vilnius Institute of lack the capital of “old Europe,” it has technology market is one of the largest the government and economy must compared to larger economies in terms Biotechnology. Dr Daumantas Matulis a skilled and educated workforce, and in the region, with 99% of biotechnol- create favorable conditions for the of innovation. First, Lithuania’s indus- from the Institute of Biotechnology has low labor costs. This makes it an attrac- ogy products exported to 86 countries. entrepreneur to be able to bring new tries are still in a relatively nascent stated that: “The growing importance tive place for foreign firms that want to In 2006, the biotechnology industry commodities to the market. In such stage. Twenty years after the collapse of life sciences and biotechnology in also out-innovate the competition. had sales in excess of 90 million. countries as Lithuania, still undergoing of the Soviet Union, its industries are Lithuania is being recognized with Why build a factory in the traditionally Among former Communist countries, a post-Soviet transition, opportunities specializing and adapting to a global ScanBalt Forum 2008 to take place in more expensive EU-15, than in the less Lithuania follows only Hungary in sales abound for new business ideas. marketplace faster than the industries Vilnius. This is a chance to promote expensive business climate of such new volume. The Lithuanian government Schumpeter popularized the term of such “old Europe” countries as Ger- Lithuania as an attractive place to member countries as Lithuania? would be wise to consider investing “creative destruction,” by which many. This is a case of the so-called work, live and invest. We intend to The current economic crisis can in a in up and coming sectors, and thus far he meant that innovation by entre- “second place advantage”, where a further strengthen our position as a sense be seen in a positive light for little seems to be doing so. For example, it preneurs has the ability to radically newly opened economy can learn from strong player within life sciences and Lithuania. While the economy is under has increased biotechnology research change stagnant industries or an entire the mistakes and consequently “out-in- biotechnology in the Baltic Sea Region” stress, Lithuanian firms can continue to funding during the last five years -(In economy. A current example is the in- novate” them, since they have no new (Innovations Report 2008). innovate. However, when the global novations Report 2008).

Lithuania has highest EU Lithuania’s trade deficit GDP growth LTL3.7 billion Key foreign trade partners, January–September 2009 Statistics Lithuania reports that, based GDP increased by 0.4% in the euro Exports LTL Percent Imports LTL Percent on non-final data obtained from customs share Against January– share Against January– area (EA16) and by 0.2% in the EU27 million million declarations and Intrastat reporting data, September 2008, September 2008, during the third quarter of 2009, exports in January–September 2009 growth, drop (-) growth, drop (-) compared with the previous quarter, Total 29242.3 100 -32.0 Total 32991.2 100 -42.3 amounted to LTL29.2 billion, and imports according to flash estimates -pub EU 18952.7 64.8 -27.9 EU 19191.4 58.2 -41.3 – LTL33 billion. The foreign trade deficit lished by Eurostat. In the second CIS 6643.3 22.7 -37.2 CIS 11160.7 33.8 -43.4 of Lithuania was LTL3.7 billion, 73.5% EFTA 891.1 3.0 -34.9 EFTA 294.7 0.9 -49.7 quarter of 2009, growth rates were lower than in the same period last year. Russia 3778.2 12.9 -42.9 Russia 10228.7 31.0 -41.8 -0.2% in the euro area and -0.3% in Latvia 2989.4 10.2 -39.4 Germany 3627.4 11.0 -46.4 the EU27. In January–September 2009, the most Germany 2804.8 9.6 -9.7 Poland 3313.9 10.0 -41.5 important trading partners by export were Poland 2098.9 7.2 -16.2 Latvia 2041.0 6.2 -29.6 Compared with the same quarter Estonia 2069.9 7.1 -15.4 Netherlands 1367.5 4.1 -32.1 Russia (12.9%), Latvia (10.2%), Ger- Netherlands 1434.6 4.9 3.8 Italy 1126.4 3.4 -41.0 of the previous year, seasonally many (9.6%), Poland (7.2%), by import Belarus 1294.9 4.4 -26.3 Belgium 1009.5 3.1 -28.6 adjusted GDP decreased by 4.1% – Russia (31%), Germany (11%), Poland United in the euro area and by 4.3% in the (10%) and Latvia (6.2%). Kingdom 1281.1 4.4 -41.0 Sweden 900.4 2.7 -47.6 EU27 in the third quarter of 2009, Denmark 1149.4 3.9 -46.2 Estonia 882.0 2.7 -47.3 In January–September 2009, exports fell Sweden 1081.5 3.7 -26.1 China 830.6 2.5 -39.0 after -4.8% and -4.9% respectively in in mineral products (22%), machinery France 1013.2 3.5 -54.6 France 804.4 2.4 -49.5 the previous quarter. Ukraine 843.6 2.9 -42.1 Denmark 761.5 2.3 -37.8 and mechanical appliances, electrical United The biggest improvement was in equipment (9.6%), chemical or allied States 782.3 2.7 -44.5 Finland 606.0 1.8 -49.4 Lithuania, which boasted the high- industries products (9.4%), in imports Czech est growth of 6%, though coming on – mineral products (29.9%), chemical or Norway 702.4 2.4 -22.1 Republic 569.6 1.7 -30.6 the back of the steepest decline of allied industries products (12.5%), ma- United Italy 571.9 2.0 -14.7 Kingdom 535.2 1.6 -51.4 11.3% for the first quarter 2009, and chinery, mechanical appliances, electrical Other 5346.2 18.2 - Other 4387.1 13.5 - 7.7% in the second quarter 2009. equipment (12.2%). Economics & Finance LiTnews LiTnews Economics & Finance

Construction down 48% Main socio-economic indicators of Period Value Change as Change as Lithuania compared compared to Based on provisional data provided to previous corresponding by Statistics Lithuania, in Q3 2009, quarter, % period of construction carried out on domestic previous year, work amounted to LTL1663 million at % current prices, which is by 48% less than in II quarter 2008. The value of Population October 2009 3,335,700 -0.0 -0.6 construction work carried out within Lithuania was LTL1621 million (97%), Unemployment rate % Q2 2009 13.6 X X and outside Lithuania LTL42 million (3%). Average gross monthly earnings, LTL Q2 2009 2172.6 -0.9 -2.9 The bulk of construction (55%) was Real earnings, % Q2 2009 X -0.7 -6.4 civil engineering works, while build- ing construction made up 45%. New Agricultural production, million LTL Q2 2009 1068.1 X -5.6 construction accounted for LTL618 million, which was 38% of the total Industrial production, billion LTL September 2009 3.8 1.6 -15.2 value of domestic construction. Lithuanian domestic construction, million LTL Q2 2009 1557.8 26.7 -48.0 In Q3 2009, 1143 non-residential buildings were recognised as suitable Retail trade, million LTL September 2009 2059.8 -10.6 -31.9 for use, with the total floor area of 449,000. m2, which is 6% more than Inflation, % October 2009 x -0.4 1.3 in Q3 2008. In terms of the total floor area, trade, catering enterprises and Export of Lithuanian goods, million LTL September 2009 2532 9.3 -30.7 hotels (169,000. m2), industrial build- GDP (first estimate), million LTL Q3 2009 23713.3 13.0 -14.3 ings and warehouses (116,000 m2) made up most of the construction. In Q3 2009, 566 building permits for the construction of 956 non-residen- tial buildings with the total area of Consumer goods and services down 0.4% in September 343,000 m2 were issued, which is by 17% less than in Q3 2008. In terms Statistics Lithuania announced by a 12.6% price drop for hot water of the total floor area, the highest that in October 2009, against Sep- and centralized heat supply, 5.7% number of permits was for construc- tember, prices for consumer goods – actual rentals for housing. tion of trade, catering enterprises and and services went down by 0.4%. The price change for alcoholic hotels (48%). A decisive impact on the overall beverages and tobacco products was In January–September 2009, against change in consumer prices was made conditioned by an 8.7% price rise the same period in 2008, the number by a 4.7% price drop for housing, for tobacco products, 1.7% – spirits, of building permits for the construc- water, electricity, gas and other fuels, 1.5% – wine and wine products. The tion of non-residential buildings 0.5% – food products and non-alco- price growth for tobacco products decreased (by 89); the total floor area holic beverages, 1.6% – recreation was still conditioned by an increased of non-residential buildings whose and culture, as well as by a 4.2% excise duty for cigarettes applied price rise for alcoholic beverages and from 1 September. construction had been authorised undefined level education, 0.7% – lo- services, 9% – miscellaneous goods by building permits decreased by tobacco products, 1.9% – clothing Other goods and services included: cal passenger road transport services. and services, as well as by a 3.3% 423,000 m2. and footwear. a 1.7% price drop for mobile phone price drop for food products and non- In October 2009, prices for con- services, 0.6% – fuel and pharma- In October 2009, annual infla- Based on provisional data, in Q3 alcoholic beverages, 9.9% – clothing sumer goods decreased by 0.3%, for ceuticals each, 5.3% – sanatorium tion (against October 2008) was up 2009, investment in long-term tangi- services – 0.8%. 1.3%. The inflation rate was mostly and footwear. ble assets totalled LTL3224 million, services, 1.4% – cosmetics, 2.1% influenced by a 19.1% price rise in Prices for consumer goods showed which is 35% less than in Q3 2008. In the group of housing, water, – accommodation services, as well electricity, gas and other fuels, the as a 0.9% price rise for non-durable alcoholic beverages and tobacco prod- an annual increase of 0.3%, services The bulk of investment (72%) fell price change was mostly conditioned household goods, 1.4% – services of ucts, 15.6% – health care goods and – 4.3%. within construction; 27% of total in- vestment was allocated for the acqui- sition of long-term tangible assets. As compared with Q3 2008, investment in building construction and civil en- gineering decreased by 23%. Against Q3 2008, investment in the purchase of buildings and civil engineering structures decreased by 73%. In Q3 2009, LTL573 million was al- located for the construction and pur- chase of residential buildings (12% less than in Q3 2008

Highest rise in part-time workers in Estonia, Ireland and Lithuania The percentage of part-time workers rose in the EU27 from 18.3% in the second quarter of 2008 to 18.8% in the second quarter of 2009, and from 19.6% to 20.0% in the euro area. Over the preceding year the share of part-time workers had remained stable in the EU27, while it had in- creased by 0.1% in the euro area. Between the second quarters of 2008 and 2009, the share of part-time workers rose in 22 of the 27 Member States. The highest increases were in Estonia (+5.3 to 11.7%), Ireland (+2.3 to 20.8%), Lithuania (+2.1 to 8.6%) and Slovakia (+1.8 to 4.0%), reports Eurostat. Sport LiTnews Soggy end to World Qualiers

• Photo Mindaugas Kulbis Defending Five Titles The Lithuanian National Football the dreams of a ticket to South Africa Team took a consolation win in 2010. Lietuvos Rytas began the 2009-2010 same time. 24 before another home court encounter against group leaders Serbia to Still, a credible fourth place in a season with an incredible burden An added complicating factor is that the with Partizan. end their World Cup qualifying group that included France, Serbia, – how to defend the five titles it was warm-up games in the local leagues are Again Kurtinaitis put pressure on his campaign. Under the sodden Austria and Romania was some small holding. Five titles in any season is hardly the tough preparation an elite charges naming the game a must-win skies of Marijampolė (pictured) the consolation for a country that had its hard enough, but when you are given a team needs to prepare for Euroleague. encounter, and to their credit his troops Lithuanians used the home advan- appetite for football well nourished reduced budget, lose the core of your Kurtinaitis pushed his players, but he ad- were able to procure the win with a sur- tage to end the 10 game series just during the optimistic early rounds, starting five and then have to step up mitted that he was working on particular prising 22 point margin, putting the team as they started – with a win. but ended with speculation about a grade to Euroleague, well for most aspects of offence and defence rather from the capital at a solid 3-1 coming to teams that would seem impossible. than their full game plan. the end of the first round. National hopes were running coach José Couceiro, whose only , Marijonas Petravičius Rytas enjoys a healthy home-court Locally Rytas has remained undefeated high last year when Lithuania over- guarantee is that the current contract will be honoured. and were offered advantage, and they faced their first in the LKL and BBL, though an overtime came Romania 3 – 0 in what many contracts elsewhere that the Vilnius test against European powerhouse Efes win against VEF Riga was a close call, as regarded as an historic win. It was Meanwhile, the local league team couldn’t match, and once again the Pilsen. The Turkish champs boast names well as costing them the services of Vidas followed by a 2 – 0 defeat of Austria wrapped up their season on 13 No- Rytas scouts were looking for good value such as Santiago and Nachbar, but Rytas Ginevičius who is out for an extended pe- in Marijampolė, and little Lithuania vember with Panevėžys Ekranas tak- recruits that coach Kurtinaitis (pictured was able to use their advanced condition- riod with a broken bone in his hand. found itself equal leaders in Group 7. ing the honours over Vilnius Vėtra, above with Gecevičius) could mould into ing and sixth player – the rowdy home The local derby is scheduled for 21 A loss to Serbia was followed by and Marius Stankevičius chosen as an effective unit. They added the under- crowd – to take a seven point win against November when the trip to Kaunas will a win against the Faroe Islands, but Lithuania’s best player for the second performing Bojan Popovic, the untried the favourites. decide local bragging rights. then four losses in row put an end to year in a row. Aron Baynes and Dejan Borovnjak, who Next was a meeting with Euroleague Interest now turns to the services of joined Gecevičius, Jomantas, Zavackas, newcomer Entente Orleanaise, and the who lost his court , who inked the plus one on bonus away win was appreciated, but case and should be looking for a team. his contract, and new captain Babraus- frankly expected. Olympiacos brought I’m sure both Rytas and Žalgiris have his kas in taking on the best that Europe them back down to earth to the tune of number. has to offer. Janušaitis fourth at World Short Lithuanians rise in rankings Kurtinaitis banked on getting an early Course Championships Lithuania’s 19 year old tennis player start. While most pundits agree that Berlin, 15 November (ELTA). Lithua- Ričardas Berankis has moved to 402nd Euroleague starts in earnest in the new nian swimmer Vytautas Janušaitis took place in the ATP world rankings. Lau- year, the coach pushed his boys hard fourth place in the final of the 200 metres rinas Grigelis also moved up to 590th early, hoping to pick up the early wins short course final. position and Dovydas Šakinis rose 15 to get most of the way to the next round In a time of 1.54.41 he was 2.15 seconds places to 912th on the world rankings. before the rest of the teams had hit their behind race winner Darian Townsend of All three Lithuanian tennis players are straps. It was a tough ask, as the coach South Africa. Second in the race was currently at their career-high ranking. In himself had national team duties, and not Michael Phelps, winner of eight gold total 1804 tennis players are classified all of the players arrived at camp at the medals at the Beijing Olympics. in the rankings. Žalgiris draws the short straw After narrowly avoiding bankruptcy last teams will battle in their group for a place year, saved by a Romanov buy-out, the in the final 16. team of green started the season well, The loss of Jonas Mačiulis and Paulius taking back the first title they lost to Rytas Jankūnas took a lot out of the team, but last year - The BBL Cup. the return of , and the ad- The celebrations were short-lived how- dition of Travis Watson (pictured above) ever, as they drew Group A with Monte- and Begic to the remaining Kalnietis and paschi, Barcelona and Fenerbahce Ulker new captain Šalenga gives them a strong in Euroleague. starting five. Compounding their problems has been Žalgiris has also opted to play in the their tendency to play well against good VTB United League which gives them teams, but less so against the likes of a bit more competition playing against Cibona who they lost to recently. Along stronger opposition the likes of CSKA, with Asvel it is expected that these three Khimki and Unics. Main Tables at 2009/11/19

GROUP A Lietuvos rytas 7/0 Žalgiris 8/0 Montepaschi Siena 4-0 Regal FC Barcelona 4-0 Žalgiris 7/0 Ventspils 4/3 Šiauliai 7/1 Fenerbahce Ulker 2-2 Šiauliai 4/3 Žalgiris 1-3 Techasas 4/2 Cibona 1-3 Juventus 4/3 Kalev 3/3 Asvel Basket 0-4 Neptnas 3/4 Rock 2/5 Alytus 3/4 GROUP B Lietuvos rytas 4/0 Unicaja 4-0 Sakalai 2/5 Olympiacos 3-1 Sūduva 2/4 Lauvas 1/6 Lietuvos Rytas 3-1 Nevėžis 1/4 Nevėžis 2/4 Efes Pilsen 1-3 Rūdupis 1/5 Valmiera 2/3 Partizan 1-3 Perlas 1/5 Entente Orleanaise 0-4 Aisčiai 1/6 VEF 1/4