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EACEA National Policies Platform:Eurydice
Political and economic situation

Lithuania

1.Political, social and economic background and trends

1.4Political and economic situation

Last update: 17 June 2022

Political situation

In October 2020, The Homeland Union-Lithuanian Christian Democrats (Conservatives) (HU-LCD) won the Seimas (parliament) elections. It won 50 seats in the Seimas. HU-LCD and two liberal parties that also entered the parliament – Liberal Movement (LM, 11 seats) and the Freedom Party (FP, 11 seats) – formed a coalition and a centre-right Government. The Government has chosen to appoint politicians as ministers (more than half of the 14 ministers are also members of the Seimas). Jurgita Šiugždinienė, a member of the HU-LCD party, a doctor of social sciences with more than 15 years of work experience in the field of public administration, has been appointed as Minister of Education, Science and Sports. The Minister has previously been Vice-Rector for Studies and Interim Rector at Kaunas University of Technology. J. Šiugždinienė's priority goals during the term of this Government are equal starting positions for all Lithuanian children, good working conditions for teachers and world-class science (together with teacher training). A member of the FP party, a physicist and academician Artūras Žukauskas was appointed to the chair of the Seimas Committee on Education and Science. He was the Reactor of Vilnius University from 2015 to 2020.

2020-2024 Government programme. In its four-year work programme, the Government has set out key missions. The first mission is "Equal starting positions for all Lithuanian people". The Government has set itself the following priority tasks in this mission:

• High-quality early childhood education that is accessible to all.

• A good school and modern education content that is accessible to all.

• Attractive teacher workplace and centres of excellence in teacher education.

• Leadership in digital education.

• World-class science.

• Top quality, international and affordable studies.

• Modern, efficient and mission-oriented higher education management.

• Vocational training system that meets the needs of the market.

• Opportunity for lifelong learning for every Lithuanian resident.

The Government, taking into account the fact that the changes in education are being implemented over more than one term, initiated the drafting of a National Agreement on Education so that party representatives would agree on and adhere to the basic principles of education until 2030, regardless of who wins the next election. The content of the document is being discussed by the representatives of parliamentary parties and a couple of members from a mixed group, the head of the administration of the Association of Lithuanian Municipalities and the chairwoman of the Lithuanian Education Council. An agreement is expected in June–September 2021.

The second party with the most votes in the elections is the Lithuanian Farmers and Greens Union (LFGU). This party has 32 seats in the Seimas. The former prime minister, a representative of this party, has been appointed leader of the opposition in the Seimas. The LFGU has also formed a shadow Government, in which the position of the shadow minister of education, science and sports is entrusted to the former chairman of the Seimas Committee on Education and Science, archaeologist academician Eugenijus Jovaiša. The remaining seats are shared by the Lithuanian Social Democratic Party (LSDP, 13 seats), the Labour Party (LP, 10 seats) and a mixed group, which consists either of individual members of parties which are not included in the Seimas or politicians who nominated themselves and were elected. The next Seimas elections will take place in 2024.

Economic situation

Lithuania, like the rest of world, was affected by the COVID-19 pandemic. After the first cases of the disease were recorded, on 15 March 2020 strict quarantine was introduced – non-essential shops were closed and services were banned. Public sector workers began to work remotely, with the private sector also being encouraged to pivot to remote working. Following the shutdown of businesses, many employees were put on downtime. Parents of pre-school and primary school children took the opportunity to receive a childcare allowance while kindergartens were closed; primary education moved to remote learning

After a short respite from quarantine during the summer and early fall, it was reintroduced in November. Hospitality and entertainment services were stopped. Extremely strict quarantine measures were imposed from mid-December 2020, when the number of infections reached 3 000-4 000 daily and there was a huge increase in the number of deaths. The strict quarantine measures remained in place for the first two months of 2021 in an effort to control the pandemic; the restrictions were eased when the pandemic was under control. In March 2021, following the detection of virus mutations in Lithuania and the gradual introduction of vaccination, restrictions on hospitality, recreation, entertainment and leisure services remain in force.

The Bank of Lithuania forecasts that the country’s gross domestic product (GDP) will grow by 1.9% this year. If the pandemic is successfully managed, growth could reach as much as 4.5%, and if it lasts, GDP will fall by 3.3%. The Ministry of Finance estimates that GDP could grow by 2.8% in 2021. The country’s exports are expected to grow by 4-6%, with average annual inflation reaching 1.1-1.4%. Although unemployment has risen in the country, there is a growing shortage of workers in certain sectors, such as construction and transport. Companies have hired third-party workers to manage the situation.

In 2018, Lithuania became a full-fledged member of the Organisation for Economic Co-operation and Development (OECD). Joining this organization has required the country to improve its education. As a member of the OECD, Lithuania uses the latest OECD research and uses OECD experts to assess the educational situation in various aspects. Research data is used to form policy decisions.

In 2015 Lithuania joined the Eurozone. The strict requirements for the country to join and be part of the Eurozone (e.g. the level of inflation, the extent of state debt, etc.), help to balance the country’s budget and keeps it from significantly exceeding the financial possibilities of the country.

Expenditures on education

Expenditures of the state and municipalities on education compared to GDP, percent

2005

2010

2016

2017

2018*

2019

5.4

6.1

4.3

4.4

4.4

4.3

Source of data: Statistics Lithuania

* Revised and recalculated data

Despite the fact that the portion of GDP for education decreased, the real level of expenditures did not diminish. The decline was due to the resurgent economy and growing GDP of the country. However, in light of the fact that the National Education Strategy for 2013–2022 was adopted by the Seimas, it can be claimed that political parties have agreed to keep no less than 6% of GDP for education. At the same time, when discussing the National Agreement on Education, additional indicators that indicate an increase in expenditure on education, meaning expenditure per pupil / student compared to GDP are being considered.  

Lifelong learning rate

Rate of lifelong learning (inhabitants of 25-64 years), percent

 

2000

2005

2010

2015

2020

 

Men and women

2.8

6.1

4.4

5.8

7,2

Men

1.9

4.3

3.5

5.1

5,6

 

Women

3.6

7.8

5.2

6.5

8,7

 

Source of data: Statistics Lithuania

Urban residents tend to be more active in learning than rural residents. Statistics show that in 2020 the level of lifelong learning in urban areas is 8.2%, while in rural areas – 4.8%. The gap between women and men in lifelong learning ranges between 2% and 3%, regardless of place of residence. It was observed that the number of men studying increased slightly more than that of women. Compared to 2019, the general number of learners increased. This could be linked to the COVID-19 pandemic, in which people spend more time on self-education.

Education of population, 15 years and older, (thousands)

 

2000

2005

2010

2015

2020

Total by education

2 802.1

2 781.6

2 671.9

2 483.0

2 370.2

Higher education (ISCED 6-8)

691.4

555.1

641.3

736.0

823.0

Upper secondary with professional qualification, upper secondary, lower secondary with professional qualification (ISCED 2-4)

752.2

850.1

877.5

841.8

790.5

Lower secondary, primary with professional qualification(ISCED 2-3)

392.3

441.2

368.7

286.3

199.5

Primary (ISCED 1)

510.3

398.1

314.6

203.0

125.8

Special upper-secondary, post-secondary

455.9

537.2

469.9

416.0

431.4

Source of data: Statistics Lithuania

The number of people who have completed tertiary education is increasing every year in Lithuania (currently there are no study programmes at ISCED level 5 in Lithuania). According to the Lithuanian Department of Statistics, 59.6% of the Lithuania population aged 30-34 had higher education in 2020. Comparing residents according to the level of education and their place of residence, there are more residents with higher education in the city, and more residents with secondary or post-secondary education and vocational qualification in the rural areas. Both in the city and in the rural areas more women than men have acquired higher education. Meanwhile, more men than women have completed lower secondary or upper secondary general education along with professional qualifications. This does not depend on their place of residence.