Lithuania by Aneta Piasecka Capital: Vilnius Population: 3.4 million GNI/capita: US$17,170 Source: The data above was provided by The World Bank, World Bank Indicators 2010. Nations in Transit Ratings and Averaged Scores 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Electoral Process 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 Civil Society 1.75 1.50 1.50 1.50 1.50 1.50 1.75 1.75 1.75 1.75 Independent Media 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 Governance* 2.50 2.50 2.50 2.50 n/a n/a n/a n/a n/a n/a National Democratic Governance n/a n/a n/a n/a 2.50 2.50 2.50 2.50 2.75 2.75 Local Democratic Governance n/a n/a n/a n/a 2.50 2.50 2.50 2.50 2.50 2.50 Judicial Framework and Independence 1.75 2.00 1.75 1.75 1.75 1.50 1.75 1.75 1.75 1.75 Corruption 3.75 3.75 3.50 3.50 3.75 4.00 4.00 3.75 3.75 3.50 Democracy Score 2.21 2.21 2.13 2.13 2.21 2.21 2.29 2.25 2.29 2.25 * Starting with the 2005 edition, Freedom House introduced separate analysis and ratings for national democratic governance and local democratic governance to provide readers with more detailed and nuanced analysis of these two important subjects. NOTE: The ratings reflect the consensus of Freedom House, its academic advisers, and the author(s) of this report. The opinions expressed in this report are those of the author(s). The ratings are based on a scale of 1 to 7, with 1 representing the highest level of democratic progress and 7 the lowest. The Democracy Score is an average of ratings for the categories tracked in a given year. 326 Nations in Transit 2010 Executive Summary n 2009, Lithuania celebrated the millennial anniversary of its name, first recorded in the chronicles of Quedlinburg in 1009. The year also marked ILithuania’s fifth anniversary of European Union (EU) and NATO membership. Additionally, 2009 was the 70th anniversary of the Ribbentrop-Molotov Pact by which the Baltic nations were sentenced to a half-century of Soviet oppression and exile, and the 20th anniversary of the Baltic Way. In 1989, in commemoration of the 50th anniversary of the Ribbentrop-Molotov Pact, two million Lithuanians, Latvians, and Estonians created, arm in arm, a human chain across the three Baltic countries to demonstrate solidarity and national rebirth. Since then, Lithuania has made great strides in establishing a functioning democracy with a robust market economy and well protected political and civil rights. Public perceptions of change are unambiguous, and support for Western integration is consistently strong. Yet, despite impressive gains and recognition in the foreign policy arena, political life within the country has retreated somewhat from further reforms. Political bickering and intrigues, unexpected ad hoc coalitions, and protracted reforms have downgraded Lithuanian politics. Public apathy and alienation from the political process have deepened, and citizen involvement in the civic sector is low. These trends were only further abetted by a dramatic economic recession in 2009 caused by a severe decline in external and internal demand. National budget revenues fell markedly and the public sector deficit soared. The number of the unemployed swelled, and the country’s informal economy expanded. The center-right ruling coalition of the Homeland Union-Lithuanian Christian Democrats (HULCD), Liberal and Center Union (LCU), Lithuanian Liberal Movement (LLM), and Rising Nation Party (RNP) embarked on a bold plan to combat the economic crisis, including tax increases and reductions in public sector outlays and social benefits. While these policies provoked severe public backlash, they also featured a strong political will to usher in long-overdue and unpopular public-spending cuts. In May 2009, former EU Budget and Finance Commissioner Dalia Grybauskaitė was elected president of Lithuania in direct national elections. Andrius Kubilius of HULCD was reappointed prime minister and retained his cabinet. The right-wing flank managed to maintain the ruling four-party coalition despite internal squabbling from smaller coalition members, economic hardships, and declining public trust. National Democratic Governance. Lithuania’s daring plan to combat the economic crisis ushered in tax increases, mass reductions in public spending and Lithuania 327 social benefits, and drastic cuts in the government workforce. The government also proceeded to some degree with institutional reorganization and mergers. Inaugurated in mid-July, President Dalia Grybauskaitė established buoyant relationships with the legislative and executive branches; she also instituted resolute policy shifts and reshuffled the top ranks. During the summer, the split of the second largest coalition party, RNP, undermined the foundations of the ruling coalition. In September, Irena Degutien of HULCD replaced Arūnas Valinskas of RNP as parliamentary speaker. The center-right coalition managed to garner support for a severely trimmed 2010 national budget. Protracted energy policy decisions heightened uncertainty over a new nuclear power plant and other energy projects. The adoption of unpopular yet much needed budget cuts amidst the economic crisis was offset by extreme tax increases and spotty progress with efforts to reduce bureaucratization. Lithuania’s national governance rating remains at 2.75. Electoral Process. Dalia Grybauskaitė easily outrivaled her competitors in the first round of presidential balloting and was inaugurated Lithuania’s fifth post- independence president in mid-July. The country’s two largest parties, HULCD and Social Democratic Party of Lithuania (LSDP), won the most seats in the European Parliament elections on June 7, which drew a record low voter turnout of 21 percent. While HULCD maintained fairly strong positions despite wobbling public attitudes and some inner squabbling from the Christian Democrat flank, other coalition partners had a harder time facing crises in public trust and party splits. The year brought promising leadership changes to LSDP, LCU, and the National Farmers Union (NFU). Lithuania’s presidential and European Parliament elections went smoothly and a number of parties underwent promising leadership changes, but political parties experienced a crisis in public trust. Lithuania’s electoral process rating remains at 1.75. Civil Society. Nongovernmental organizations (NGOs) were inhibited by the economic crisis and severe shortfalls in funding. Indications of growing grassroots movements with obvious political ambitions multiplied in light of the dramatically falling public trust in existing political parties and the 2011 local government elections. In 2009, Lithuania launched a groundbreaking higher education reform that introduced council-based university management and student voucher-based financing. Owing to the lack of significant progress in the development of NGOs, Lithuania’s civil society rating remains at 1.75. Independent Media. A drastic increase in the value-added tax (VAT) on paper and printing costs, coupled with a dramatic fall in advertising revenues, delivered a severe blow to Lithuania’s media market, as reflected in the numerous closures of publications. The quality of journalism continued to deteriorate as national broadcasters discarded analytical content and forfeited their role as watchdog media. During 2009, Internet connectivity grew markedly, with broadband service accounting for 99 percent of connections, one of the highest levels globally. Likewise, 328 Nations in Transit 2010 online media showed an impressive increase in the usage of Web-based newspapers, journals, TV, and radio. Impressive progress in online media development and usage was offset by a continuing decline in the quality of media programs, journalism, and watchdog media. Thus Lithuania’s independent media rating remains at 1.75. Local Democratic Governance. In 2009 the long-awaited abolition of Lithuania’s ten regional administrations was approved and preparations were initiated for redistributing their functions. Yet, the legitimation of direct mayoral elections remained unaddressed. Local governments experienced a dramatic shortfall in budget revenues, leading to large debts to service providers, reductions in municipal outlays, and deteriorating conditions in municipally run healthcare, education, and social welfare institutions. Owing to a lack of visible improvements, Lithuania’s local democratic governance rating remains at 2.50. Judicial Framework and Independence. Procrastination and political battling over court reform revealed a lack of both vision and interest from major stakeholders. Owing to President Grybauskaitė’s leadership, Supreme Court Chair Vytautas Greičius stepped down in mid 2009, a year after the expiry of his nine-year term, and the criteria for judge appointments and procedures were improved. Concerns over human rights violations in Lithuania’s overcrowded prisons intensified, leading to government plans to modernize prisons, increase managerial effectiveness, and revise the penal system. In fall 2009, the country’s court system and its foundations of law and order were shattered by allegations of procrastination in a pedophile case that led to two murders, including the assassination of a criminal trial judge. Lithuania incited international clamor by approving a law that aims to keep information about homosexuality away from children. Owing to a persistent lack of progress in court reform and recurring concerns over human rights, Lithuania’s judicial framework and independence rating remains at 1.75. Corruption. The year saw some follow-through in high-profile corruption cases, with 10 high-ranking municipal officials facing charges of bribery and graft or going on trial. The national anticorruption program was substantially updated and revised in 2009 but has not yet become the signpost for anticorruption work. The center-right government showed readiness to move forward with corruption prevention initiatives and instituted numerous policies to simplify and reduce citizen-government interaction.