Claremont Colleges Scholarship @ Claremont CMC Senior Theses CMC Student Scholarship 2020 Industrial Policy for Regional Development in Lithuania Guoda Terleckaite Claremont McKenna College Follow this and additional works at: https://scholarship.claremont.edu/cmc_theses Part of the Eastern European Studies Commons, Economic Policy Commons, International Relations Commons, and the Soviet and Post-Soviet Studies Commons Recommended Citation Terleckaite, Guoda, "Industrial Policy for Regional Development in Lithuania" (2020). CMC Senior Theses. 2484. https://scholarship.claremont.edu/cmc_theses/2484 This Open Access Senior Thesis is brought to you by Scholarship@Claremont. It has been accepted for inclusion in this collection by an authorized administrator. For more information, please contact
[email protected]. Claremont McKenna College Industrial Policy for Regional Development in Lithuania Submitted to William Ascher By Guoda Terleckaite For Senior Thesis Spring 2020 May 11, 2020 Abstract Lithuania is internationally recognized as a high-income developed country, but the high standard of living is limited only to a small minority of citizens. While the capital is emerging as a financial center and a hub for information technology, cities in the Western and Central parts of Lithuania are rapidly declining. Formerly industrial regions, Šiauliai, Panevėžys, Alytus, Utena, Tauragė, Telšiai and Marijampolė, now suffer from massive emigration, brain drain, high unemployment rates, and an increased risk of poverty and social exclusion among residents. Unlike larger cities, poorer counties have not been magnets for foreign direct investment and have benefited little from large-scale infrastructural projects. This thesis explores the weaknesses and strengths of the declining regions and assesses the Lithuanian government’s capacity to enact an industrial strategy to help reduce regional disparities.