LFMI celebrated its fifteenth birthday anniversary

On October 13, 2005, the Lithuanian Free Market Institute (LFMI) held a ceremony to celebrate its fifteenth anniversary. More than one hundred of LFMI’s supporters, fellows, foreign partners, prominent politicians, and media representatives participated in the anniversary event to manifest their support for the mission pursued by the only free-market oriented think-tank in Lithuania and one of the oldest right-wing NGOs in Europe. LFMI was also the first centre established in Lithuania after restoring its independence that started to provide independent economic analysis.

LFMI was deeply honoured to host Dr. José Piñera, the architect of the Chilean pension reform – “the pension world’s equivalent of Placido Domingo” as the London Sunday Telegraph wrote - as the distinguished guest speaker of LFMI's anniversary event. During the dinner, Mr. Pinera spoke on the topic “Effective solidarity versus proclaimed solidarity in the fight against poverty and injustice”. In his speech Dr. Pinera wished the Lithuanian Free Market Institute great success and explained what role he envisages for LFMI in the near future: “In the first fifteen years, you have helped create an independent and free country - my deepest respect for that. You have helped Lithuania become a part of Europe-- also my deepest respect for that. But now you have another extraordinary challenge - how to make Lithuania join the Euro area without the labour rigidities and the Bismarckian welfare state that are burdening Western European countries. I believe you will rise to the challenge and will be at the front in this cause. Remember the three principles: love of country as the force, the power of ideas as the compass, and life, liberty and the pursuit of happiness as the noble goals.“

Among the guests was Adviser to President of Lithuania Dr. Ramunas Vilpisauskas who read the President‘s greetings to LFMI. In his official letter President Valdas Adamkus stressed that LFMI team’s weighty and constructive contribution to essential reforms and public debates has been visible from the very start of the Institute’s activity: “You have always managed to find a healthy balance between a critical approach towards all administrations who based their policies on entirely different ideologies, and a constant dialog with government institutions.” President Adamkus also said in his letter to LFMI: “I can unequivocally state that the Lithuanian Free Market Institute has already made a conspicuous trace in the history of Lithuania who regained its independence only fifteen years ago. […] I believe the Lithuanian Free Market Institute will remain one of the leading participants in the debates over economic realities in Lithuania and beyond its boundaries. I believe that your critical and rational voice will continue to be heard in the future well.“

A welcoming letter also came from Vilnius' city Mayor Arturas Zuokas who pointed that people from the Lithuanian Free Market Institute taught Lithuanian people to think and act freely from the first years of the country’s independent life. “Remain as free from short-term political conjuncture and pressure as until now. Only free people can protect the free market,” – Vilnius Mayor signed. To mark the fifteenth anniversary, LFMI released a book "Laisves algoritmai" ("Algorithms of Liberty") presenting a collection of the most valuable articles by LFMI written during the fifteen years of its activity. The publication of almost 400 pages not only reflects LFMI’s work since its foundation but also mirrors the most significant events and processes in Lithuania’s economic, social and political life after its independence was restored. As famous Lithuanian philosopher Prof. Dr. Leonidas Donskis wrote in his review, “LFMI’s book “Laisves algoritmai” illustrates remarkably the principles, the spirit and the ambition of this institution. This collection has an indubitable analytical as well as historical value: its authors’ insights and critique of the government action and trends in the country’s life allows us tracing and analysing Lithuania’s transformation during the fifteen years of its independence.”

The Lithuanian Free Market Institute (LFMI) is an independent non-profit organization established in 1990 to promote the ideas of individual freedom and responsibility, free market and limited government. In the fifteen years of existence LFMI has addressed a variety of core issues confronting the economic reform process, enriching public debates, making a profound impact on the legislative outcome, and strengthening the democratic process. LFMI promoted the idea of a currency board and provided decisive input to the Law on Litas Credibility. LFMI led the creation of the legal and institutional framework for the securities market and contributed significantly to the privatisation legislation. LFMI initiated and participated in the policy-making process on private pension insurance through pension funds. LFMI's recommendations have adopted in legislation on commercial banks, the Bank of Lithuania, credit unions, insurance, and foreign investment. LFMI have influenced significantly the improvement of company, bankruptcy and competition law.

LFMI have developed a conceptual proposal for tax and budget reform. Proposals from LFMI have been adopted in policy debates on income taxation, real estate tax, inheritance and gift taxes, and others. In recent years LFMI has been closely working on business deregulation, a process, initiated by the institute, worked actively in creating the legal framework for telecommunications market, formulated and proposed a step-by-step plan for health care reform, and took an active part in the debates over Lithuania’s accession to the European Union.

Pictures from the ceremony can be found at: http://www.freema.org/Events/Annual05.phtml.

LFMI: the Lithuanian Government should call EU member states for reconsidering the excise duty policy

Continuing its project on the excise tax policy, the Lithuanian Free Market Institute (LFMI) disseminated an address to Lithuanian MPs, followed by a press release, October 20, 2005, stating that the Lithuanian Government should take all possible measures to protect national interests and to call EU institutions and other member states for launching an overhaul of EU’s excise tax policy. LFMI pointed out that it is Lithuania and the EU who set the level of excise duties, so it is in their power to alleviate the burden of proliferating oil prices for people and companies. LFMI urged the Lithuanian Parliament to adopt a resolution put forth by the opposition which invited the Lithuanian Government to appeal to the European Commission with specific recommendations on how to reduce the skyrocketing oil prices and their effects. However, the Parliament voted “no” to this resolution.

LFMI proceeded this initiative and staged a press conference, October 27, to urge the Lithuanian Government not to berry the idea of promoting lower excise duties and presented a comprehensive list of arguments to be employed in seeking for a revision of the excise tax policy in the EU. It should be noted that LFMI propagates a reduction of the minimal level of excise duties set by the EU for all excise goods – fuel, tobacco products and alcohol.

LFMI proposes changing the sources of financing roads

On September 13, 2005 LFMI held a press conference to present a study on prospects for, and alternatives of, funding road maintenance in Lithuania. The study is aimed at analysing what sources, excluding an increase of the general tax rates, could be used to finance roads and what influence they would exert on the behaviour of market participants.

LFMI’s policy analysts recommend the Government to draw a long-term strategy for funding road maintenance and to follow it strictly in shaping the country’s tax policy. In the study, LFMI analysed the advantages and shortcomings of all current and potential sources of financing roads and concluded that a tax collected from users of roads would be the most justified source of funding from the economic point of view. In the future, direct taxation of users of roads should become the only source for funding road maintenance in Lithuania, and other taxes that are currently allocated to finance roads should be reduced.

“The Wall Street Journal” features R. Vainiene’s dictionary of economic terms

"The Wall Street Journal" published an article "Defining Capitalism Up" about a "Dictionary of Economic Terms" by Ruta Vainiene, LFMI‘s associate policy analyst, highlighting that a group of young free-marketeers in Central and Eastern Europe are initiating the fight against the poisoned economic vocabulary inherited from their communist past.

The WSJ starts its article by George Orwell‘s famous statement made in 1946 that his native language "becomes ugly and inaccurate because our thoughts are foolish, but the slovenliness of our language makes it easier for us to have foolish thoughts." The author of the article noted that today a group of young free-marketeers in Central and Eastern Europe have discovered the same thing - discussions of economics in their countries are being poisoned by a vocabulary inherited from their communist past.

The WSJ writes that Ruta Vainiene, a young former central banker in Lithuania, has decided to do something about it. Last month, she published her plainly titled "Dictionary of Economics." The response, both in Lithuania and elsewhere in Europe, has been striking. Since its release, the Dictionary has been the No. 2 nonfiction best seller in her native country. And plans are now afoot to translate the book into local-language editions in a number of other countries. Think tanks around Europe are supporting the effort, having seen the necessity of cleaning up economic language and thought that, a decade and a half after the collapse of the Soviet empire, remains infected by history…

The entire article is posted online: http://www.opinionjournal.com/taste/?id=110007466.