Private Enterprise

When the government proposed a bill on disqualification of enterprise managers, LFMI embarked on an extensive policy advocacy and dissemination campaign urging to reject it. LFMI's efforts provoked intense public debates and a barrage of criticism of the disqualification proposal from the business community and media. In response to public pressure, the government returned, on its own initiative, the bill from parliament for further revision and confined its application to state-run enterprises. In addition to earlier initiatives, the LFMI's position was presented in Lithuania's largest dailies, Lietuvos rytas and Respublika, and LNK television, November 5.

Elena Leontjeva, President, and Ugnius Trumpa, Vice President, visited the Ukmergė Chamber of Commerce and Trade, November 18. Elena Leontjeva read a paper on the problems confronting private business activity and ways to eliminate them. A report about the visit appeared in the paper Gimtoji žemė, November 29.

Elena Leontjeva and Ugnius Trumpa were invited to the Utena Chamber of Commerce and Trade, December 18, to speak about tax reform and the business climate in Lithuania. They also visited the largest Utena-based companies.

Elena Leontjeva commented on business deregulation for the daily Šiaulių kraštas, November 24.

Ugnius Trumpa commented on the government's programme for promoting industrial enterprises in Verslo žinios, December 1, and on the newly introduced control of the movement of goods in Verslo žinios, December 5, and Vakarų verslas, December 18.

In late 1997 LFMI broadly presented a tax and budget reform proposal.

LFMI, in co-operation with Friedrich Naumann Foundation, staged a major conference to present the reform proposal, December 5. The event received a broad coverage in the daily Respublika, December 6 and 22, and Verslo žinios, December 24, the Tax Inspectorate's newsletter Tax news, and Apskaita ir kontrolė, December 16.

The reform proposal from LFMI was presented in the daily Kauno diena, December 18, the newsletter of the Lithuanian Liberal Youth, Kelyje, No. 4.

Elena Leontjeva expanded on the LFMI's reform proposal in the December 8 Verslo žinios.

The LFMI's reform proposal provoked spirited discussions at the conference. It received an extensive coverage in mass media and a favourable response from the business community, a prospect likely to facilitate LFMI's policy advocacy efforts.

In late October the parliament debated the fiscal 1998 budget proposal. LFMI analysed it and submitted a package of exhaustive policy proposals to Prime Minister Vagnorius, the Finance Ministry, as well as the parliamentary Economic and Budget and Finance Committees. Also, LFMI commented extensively in mass media.

Elena Leontjeva testified before Prime Minister Vagnorius about changes to budget policy and submitted the LFMI's tax and budget reform proposal, November 28.

Elena Leontjeva appeared on Vilnius TV, November 11, and TV 3, December 15. Her opinion was featured in the November 14 Atgimimas and November 17 Lietuvos rytas.

Remigijus Šimašius, Legal Expert, spoke on LNK television, December 10.

LFMI's position was featured in Lithuanian Weekly, November 21-December 4.

The parliament adopted the 1998 budget proposal in early November without making any fundamental amendments. The budget policy is still based on the inherited socialist principles and an eclectic, inefficient system of revenue generation. Yet, in response to public pressure, a policy-drafting group was set up under the Finance Ministry to redesign the principles of budget formation. LFMI was invited to contribute to this initiative and will be represented by Remigijus Šimašius. LFMI will continue to advocate a new approach to budget formation, an approach that was outlined in the LFMI's tax and budget reform proposal as well as proposals for revising the Law on Budget Structure.

Rūta Vainienė, Senior Policy Analyst, commented on land lease tax for Lietuvos rytas, November 7.

Elena Leontjeva commented on the taxation of lotteries in the November 13 Lietuvos rytas.

Elena Leontjeva read a paper about taxation and monetary policy at the Dirbtinis pluoštas company in Kaunas and visited other Kaunas-based enterprises, November 20.

Capital Market

In October the parliament debated a bill on the privatisation of state and municipal property. LFMI evaluated the bill and submitted a package of legal advice to Prime Minister Vagnorius and the parliamentary Economic as well as Budget and Finance Committees.

LFMI's analysis and proposals were published in the financial newspaper, Litas, November 6.

Rūta Vainienė discussed the privatisation process with advisor to the European Affairs Ministry, Richard Shmidt, November 4.

Remigijus Šimašius was cited in Lietuvos rytas, December 2 and 9.

Elena Leontjeva commented on the privatisation of the Lithuanian telecommunication company in the November 22 Lietuvos rytas and the December 27 Veidas magazine. Remigijus Šimašius appeared on the same issue in Lietuvos rytas, December 29.

Despite its outstanding defects, the law was passed in parliament in early November.

LFMI continued to participate in the policy-drafting process on the pension fund legislation.

Audronė Morkūnienė, Social Policy Analyst, contributed to the ministerial policy-drafting group and attended the December 2 meeting of the Tripartite Committee.

Elena Leontjeva discussed with Social Welfare Minister Degutienė the pension fund proposal and submitted the comments from LFMI.

Audronė Morkūnienė gave an interview for the paper Atgimimas, November 7, and was cited in the December 4 Lietuvos rytas. She spoke about the Lithuanian pension system and private pension funds at the Žinija economist club, December 2.

Elena Leontjeva and Audronė Morkūnienė participated in a London conference "Solving Global Pension Crises", staged by the Cato Institute and The Economist, December 8-9.

The pension fund proposal is being evaluated by the Ministries of Finance and Justice. It is scheduled for submission to the government in the coming months.

Monetary Policy

The Bank of Lithuania prepared a Monetary Policy Programme, outlining the objectives and development stages of shifting from the currency board arrangement to traditional central banking. LFMI commented extensively in mass media, seeking to enhance people's understanding of the new monetary regime and its implications. LFMI continued to advocate reliance on strict, rule-bound monetary policy protected from political pressure.

An article "An Epitaph to the Currency Board" by Elena Leontjeva was reproduced from the LFMI's newsletter by Kauno diena, November 13, and Litas, November 20.

The LFMI's president authored an article "Farewell to the Currency Board" for The Baltic Times, November 20-26.

LFMI hosted a seminar with Alan Reynolds, Director of Economic Research, Hudson Institute, December 6. The guest speaker spoke about monetary policy and current account deficit.

Other Policy Issues

Elena Leontjeva delivered a paper, "Lobbying: The Origins and the Role of the State," to the November 21 conference on lobbying, staged by the Institute for International Relationships and Political Studies, Vilnius University. She authored an article about lobbying for Atgimimas, December 5, and appeared on the Lithuanian Television and Lithuanian Radio, December 5. Her opinion was featured in the November 26 Verslo žinios.

Elena Leontjeva attended the November 12 cabinet meeting and distributed a policy paper from LFMI with critical comments on the bills on cinemas, theatres and a cultural support fund. Consistent with the LFMI's position, the government resolved not to adopt separate legislation governing cultural establishments but upheld the idea of a law on a cultural assistance fund.

Elena Leontjeva and Remigijus Šimašius delivered papers to a conference on libertarian values and self-government, held by the Lithuanian Liberal Union and the Friedrich Naumann Foundation in Šiauliai, November 14.

Remigijus Šimašius participated in the sessions of a working group revising the Law on Charity and Support and other pertinent legislation. He presented the LFMI's position on the NGO regulations at the December 4 USBF meeting.

Guoda Steponavičienė, Policy Analyst, commented on public transport in Lietuvos rytas, November 3 and 11. Rūta Vainienė was cited about state-run transport companies in the December 4 Lietuvos rytas.

Elena Leontjeva commented on government interference in the sugar industry on the LNK television, November 1, and on the energy sector in Lietuvos rytas, November 3.

Elena Leontjeva gave an interview about imprisonment for economic offences on LNK television, November 12.

Elena Leontjeva gave a lecture about free market principles at the International Business School, Vilnius University, November 27.

Elena Leontjeva commented on the Lithuanian government's economic policy for the Reuter News Agency, December 2.

Elena Leontjeva contributed a column about the compensation of lost savings to the paper Ūkio patarėjas, December 27.

Elena Leontjeva was invited to evaluate Lithuania's economic affairs in 1997 in the December 31 Respublika and to make forecasts for the year 1998 in Verslo žinios, December 29, and Atgimimas, December 24.