The Importance of Social and Political Stability for Integration into Europe: Lithuania’s Case
The re-establishment of the Baltic states (Lithuania, Latvia and Estonia) occurred simultaneously with the reformation of their political and economic systems. The move from a one-party communist system to a multi-party democratic one, and from a command economy to a market economy had to be accomplished under rather harsh external conditions. The resurrection of state borders and the reclaiming of property took place at a time when the Soviet Union had not yet collapsed (1990–91). In addition, the new states had to overcome their isolation from the rest of the world and join strange international integration processes of which they had little experience. The rejection of the Soviet political regime and the acceptance of the principles of a democratic system and a market economy did not automatically lead to democratic maturity nor to a rise in economic or social prosperity.
KeywordsMarket Economy Credit Union Political Stability Shadow Economy Banking Crisis
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