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- <text id=90TT0170>
- <title>
- Jan. 22, 1990: Could Lithuania Go It Alone?
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1990
- Jan. 22, 1990 A Murder In Boston
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- WORLD, Page 34
- Could Lithuania Go It Alone?
- </hdr>
- <body>
- <p> Like the other two Baltic republics, Lithuania has already
- been given control of its own economy. Its demands for
- political independence, however, mean different things to
- different demanders. If the Baltic state were ever to declare
- its complete independence from the U.S.S.R., that freedom would
- carry a price.
- </p>
- <p> To begin with, while people are allowed personal
- possessions, there is no such thing as private property in the
- Soviet Union. Thus most of Lithuania's factories, buildings,
- highways, trains, communication systems--pretty much
- everything except the kitchen sink--belong to the Soviet
- state. While some property might revert to the republic,
- presumably Lithuania would have to compensate Moscow in some way
- for what it takes away with it. Lithuania might also have to
- pay for the relocation of those of its 3.7 million citizens who
- want to remain part of the union, starting with most of its
- 344,000 ethnic Russians.
- </p>
- <p> Even if these problems were resolved, a larger question
- remains: Can the Lithuanian economy survive on its own? While
- Lithuania's work force is well educated and diligent, its
- economic base is largely agricultural. The industrial sector
- is devoted mostly to consumer goods and electronics, but its
- outdated television sets and computers would not be competitive
- in the world market. Western corporations might be invited to
- form joint ventures, but there is no reason to believe they
- would pour huge amounts of capital into a country as small and
- remote as Lithuania while more lucrative opportunities exist
- in Eastern Europe's larger nations. Foreign assistance would
- help, but the U.S. track record--George Bush originally
- offered Poland a mere $119 million--is hardly auspicious for
- a nation with a population one-tenth that of Poland.
- </p>
- <p> The world does offer examples of prosperous states with no
- important resources other than skilled workers; Hong Kong is
- one. Says Algimantas Cekuolis, a People's Deputy from
- Lithuania: "We are the mirror image of South Korea and
- Singapore 30 years ago." But Lithuania depends on the rest of
- the Soviet Union for 90% of its raw materials and energy, which
- cost far more than the food and household products it turns
- out. Today Vilnius pays the equivalent of $6 per bbl. for oil
- delivered from Siberia; at world prices it would cost four times
- that. Lithuania is also a victim of the Soviet economy's
- "monopolism"--the practice of turning a single factory into
- the sole supplier of a certain product for the entire country.
- As a result, many essential items are simply not made in
- Lithuania. That works both ways,of course: Lithuania produces
- more than 150 items that are made nowhere else in the U.S.S.R.,
- and this could offer some bargaining power.
- </p>
- <p> Balts bolster their courage by assuming that they would
- strike out into full freedom as an economic federation of
- Lithuania, Latvia and Estonia. Such a course, however, could
- multiply their difficulties in acquiring capital and triple the
- price they would have to pay for cutting their ties with the
- country that absorbed them 50 years ago.
- </p>
-
- </body>
- </article>
- </text>
-
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