Country Overview
Country Facts
Overview of U.S. Government Assistance
In FY 2005, the USG allocated an estimated $17.99 million in assistance to Lithuania, including:
In FY 2005, a total of 42 Lithuanians traveled to the United States on USG-funded exchange programs.
The last year for new SEED bilateral funding to Lithuania was FY 2000. Some additional SEED funding for public diplomacy and democracy initiatives were provided to Lithuania through FY 2003. However, during FY 2005 some implementers continued to expend SEED funds remaining from previous fiscal years, as described below.
FY 2005 Assistance Overview
U.S. STRATEGIC INTERESTS
Lithuania's large and educated population and strategic location on the Baltic Sea make it a force for economic growth and stability in and beyond the Baltic Sea region. Lithuania borders two North Atlantic Treaty Organization (NATO) allies, contributed troops to Operation Iraqi Freedom and Operation Enduring Freedom, and cooperates fully on international law enforcement matters. Nearly one million U.S. residents consider themselves Lithuanian-Americans. It is in the U.S. interest to promote Lithuania's economic and political prosperity by increasing commercial ties, academic and cultural exchange, and security cooperation. Lithuania is one of USG's most stalwart allies.
Concern over Lithuania's less democratic neighbors and gratitude for strong U.S. support for Baltic independence have produced a relationship with the United States that has remained exceptionally constructive through 13 post-independence governments.
KEY ISSUES
Lithuania brought a great deal to the global table in 2005, despite its small size. Its troops continued to serve with ours in Iraq and Afghanistan. It volunteered one of the first contingents for the NATO Reaction Force, and accepted the challenge to lead a Provincial Reconstruction Team (PRT) in Afghanistan. Lithuania remained a positive force for democracy in the former Soviet Union; President Adamkus's mediation in Ukraine's presidential election crisis helped ensure a democratic outcome. At the same time, Lithuania constructively engaged with Belarus' nascent democratic elements and Russia on a range of issues. Lithuania's contribution to regional and global stability continues at a time of great economic growth. GDP growth was 6.7 percent in 2004 and corporate profitability is among the highest in Europe. The U.S. is the seventh largest investor in Lithuania. Lithuania joined the European Union in May 2004.
Lithuania's economyhas shown strong growth over the past four years. Lithuania's GDP increased 9.7 percent in 2003 and 6.7 percent in 2004, exceeding even the most optimistic expectations. Private consumption was the principal driver of recent economic growth. Growth was strongest in construction, financial intermediation, and processing and light industries. In 2004, the budget deficit increased to 2.48 percent of GDP. Progress has been achieved in the areas of privatization and deregulation. The absence of sufficient structural and agricultural reforms and the continuing prevalence of corruption in some areas are constraints on even better economic performance. The privatization of major state enterprises will be completed in the next couple of years. Currently, 78 percent of the economy's output is generated by the private sector.
Inflation reached 2.9 percent in 2004 after two years of deflation, largely as a result of the sharp rise in international oil prices. The minimum wage increased in 2005 to $197.50 per month, well below the poverty threshold. The average wage stands at $458 per month. Exports to the United States make up 4.7 percent of all Lithuania's exports, and imports from the U.S. comprise 1.57 percent of total imports to Lithuania. Lithuania has accumulated foreign direct investment (FDI) of $6.3 billion. U.S. investments accounted for 6.3 percent of FDI. The current account deficit in 2004 stood at 7.2 percent of GDP.
Despite rapid economic development, problems of unemployment, substance abuse, poverty, and crime continue in underdeveloped rural areas. The Lithuanian government is increasingly developing strategies and improving its public health and social services capacity to address these problems and reach those at risk. Lithuania is also working with the United States and other partners to address the spread of HIV/AIDS and drug-resistant tuberculosis domestically and in the region.
Lithuania, a relatively new NATO member, fully endorses the concept of "collective defense." National policy recognizes the primacy of NATO as the guarantor of security in Europe. The goal of Lithuania's defense policy is to create a military that can contribute to international missions through the NATO alliance, the UN, and other groups, and to continue to integrate Lithuania into Western defense structures. The government has committed to achieving the goal of dedicating 2 percent of GDP for defense spending, but is still short of the goal at 1.2 percent of GDP budgeted for 2006.
The new center-left government that took power in December 2004 has continued positive and productive policies with the U.S. on key issues. The government committed to remain on the ground in Iraq through 2005, significantly expand its operations in Afghanistan, and improve migration procedures for American citizens here.
Lithuania's accession to the EU in 2004 satisfies a longstanding U.S. policy goal by institutionalizing Lithuania's membership in the Western community of democracies. At the same time, however, it will expose Lithuania to increased pressure from some capitals for a more "European" foreign policy that may result in differences with the United States. EU Structural Assistance funds remain a key factor in Lithuania's policy formulation process.
Expending SEED funding from prior fiscal years, in FY 2005 the Embassy continued to use USG assistance to fight corruption, protect intellectual property rights, promote tolerance and continue economic reform, and solidify Lithuania's role in NATO, and promote efforts to expand democracy in the region. Moving forward, USG assistance programs will largely be focused on improving Lithuania's military capabilities (Foreign Military Financing and International Military Education and Training), strengthening border control measures (regional Export Control and Related Border Security Assistance programs), and providing leadership training and cultural exchange experiences public diplomacy programs.
FY 2005 Country Program Performance
Democratic Reform
In fifteen years, Lithuania has transformed itself from a totalitarian backwater into a thriving democracy, but numerous corruption and political scandals demonstrate that work remains. Greater stability, transparency, and tolerance will make Lithuania a more reliable partner for the United States and a better role model for aspiring democracies in the former Soviet Union. The NGO sector continues to develop despite decreases in international funding, the lack of a philanthropic community, and need for more administrative capacity in Lithuania. Progress was particularly noticeable in NGO-governmental cooperation in areas such as trafficking in persons (TIP), conflict resolution, environmental planning, small business development, and others. A 2 percent income tax facility, which came into effect in 2004, had a positive impact on NGO sector financial sustainability. NGO networking throughout the country has also increased.
On minority and ethnic issues, little changed in FY 2005. Approximately 6.3 percent of citizens are of Russian ethnic origin and are fairly well integrated. They face no official discrimination. Local governments have faced some international scrutiny for failing to handle Roma issues properly, as was the case with an attempt by one municipality to remove Roma residents from an area without a court order. The action was prohibited and Lithuania continues to strengthen efforts to address the social troubles affecting Roma. Religious freedom continues to be respected in Lithuania. There is a well-established ombudsman system, which continues to function satisfactorily. The Government continues to address historical justice issues (90 percent of Lithuania's 200,000 Jews were killed in the Holocaust). An official Historical Commission established in 1998 by Presidential Decree continues work in examining the Nazi and Soviet occupations. The Commission continued to be quite active in research and public education in FY 2005.
In FY 2005, Lithuania continued along its steady course of democratic reform. In previous years, the Criminal Code, the Code on Execution of Penalties, and the Criminal Procedure Code and the new Civil Procedure Code entered into force. A special anti-corruption service accountable to the Parliament and the President has been operating since May 2000. During the year, the service investigated a number of corruption cases involving politicians and senior civil servants. Lithuania ranked 46th on Transparency International's Global Corruption Perception Index 2004, with no significant change from year to year. Lithuanian law enforcement officials have sought assistance and training from American and European law enforcement agencies. Lithuania continued to show that it has established a consistent pattern of free and fair elections.
U.S. ASSISTANCE PRIORITIES
In FY 2005, implementation by non-governmental organizations of SEED-funded Democracy Commission and other grants funded in prior fiscal years continued. These included support for the development of a sustainable NGO sector, strengthening civil society, improving character education and ethics training at schools, encouraging campaign finance reform, enhancing governmental and civil society capacity to fight administrative corruption, and promoting tolerance and inclusion of minority ethnic groups. Public diplomacy exchange programs also continued to help train a cadre of Lithuanian professionals to serve as future governmental and civil society leaders.
PROGRAM PERFORMANCE
The Democracy Commission, the Embassy's front-line resource for building capacity in civil society and promoting democratic and free market values, reached its final stage in FY 2005 with the closeout of all remaining projects funded in prior fiscal years. No new funding for Democracy Commission Small Grants program or other SEED-funded initiatives was provided. Grants being implemented, as described below, focused on: raising awareness of disabled people; promoting pro bono legal aid; protection of human rights; building women's leadership skills in rural areas; combating trafficking in human beings; fighting corruption; and promoting transparency.
In FY 2005, Lithuanian society continued to undergo a painful process of eradication of corruption from political and administrative levels of government. In its fall 2005 survey, Transparency International named Lithuania as one of Europe's most corrupt countries. Corruption is among the factors that negatively affect foreign direct investment in Lithuania. With a Democracy Commission grant, Transparency International Lithuanian Chapter (TILC) addressed corruption problems at the local government level. The project included a corruption assessment, producing specific recommendations, and raising awareness and capacity for advocacy. The project had extensive media coverage, introducing the topic broadly to the Lithuanian public.
Although Lithuania clearly demonstrates all aspects of a fully functioning democratic society, some legacies remain from its past, most notably a relatively underdeveloped civil society. The USG initiated an "Ethics and Character Building Training Program" for schools using SEED funds. The main purpose of the project was the development of citizens of strong moral character, who are committed to ethical integrity and civic engagement in a democratic society. The program attracted great interest from schools and the Ministry of Education and Science, who are incorporating the ideas into new academic plans for schools. Teachers from two Lithuanian schools visited Montclair Kimberley Academy in New Jersey, later sharing their experiences with teachers from all over Lithuania and holding consultations with the Ministry of Education and Science on character building.
In FY2005, the USG continued to promote tolerance and minority inclusion through implementation of earlier extended grants. USG assistance funded the seminar "Mainstreaming Equality and Diversity: Opening the Debate with Media," using SEED funds. The topic was especially relevant in the light of a 2004 hate speech court case involving one of the country's leading dailies. That case garnered international attention. The seminar focused on the importance of media's role in minority issues and tolerance.
Campaign finance has been controversial for many years in Lithuania. To respond to this, U.S. financed a seminar on the topic of campaign finance regulation to provide Lithuanian media, civil society, law enforcement and political communities with an overview of the issues, such as: 1) the utility and necessity of campaign and political finance regulation to a healthy democracy; and 2) an introduction to methods and techniques for bolstering campaign finance reform. In 2005, the Lithuanian parliament adopted amendments to the law on elections banning politicians from giving voters gifts. The amendments are aimed at preventing the collection of votes through invitations to concerts, festivals, other entertainment events. This had been an extensively documented problem in the past with almost all parties.
To attract a new generation of voters to the polls, USG assistance funded the Lithuanian Youth Council (LiJOT) to implement the program "Stop Sleeping - Start Voting!" through a Democracy Commission Small Grant. The project aimed at increasing turnout of young people in Lithuanian Parliamentary elections through use of "youth friendly" methods and communication techniques. The grantee organized youth events in 15 different regions of Lithuania. The grantee created a broader coalition of different civic organizations, famous youth leaders, and pop stars to support the effort of getting citizens to the elections.
Public diplomacy exchange programs continued to have a positive role in shaping Lithuania's future leaders. In 2005, a Lithuanian alumnus of the Fulbright fellowship was appointed as the Ambassador of Lithuania to the UN, OSCE, and International Atomic Energy Agency (IAEA) in Vienna. In June 2005, the first book on Lithuanian contemporary philosophy was published in English by the Council for Research in Values and Philosophy, and the authors of the book included four Lithuanian Fulbright alumni.
Lithuania graduated from bilateral SEED Act assistance in FY 2000, but SEED-funded Democracy Commission Small Grants Program funding continued through FY 2003. All such democratic reform projects completed implementation and were closed in FY 2005. In future fiscal years, public diplomacy exchange programs will continue to bring small numbers of Lithuanians to the United States to improve mutual understanding in critical areas including public sector reform, tolerance, and other areas.
Economic Reform
Lithuania's economic reform continues, and is responsible for one of the highest GDP growth rates in Europe, almost 10 percent in 2003 and over 6 percent through 2004 and 2005. The government's economic program for 2004-07 shows its commitment to meeting requirements to join the European Economic and Monetary Union (EMU) in 2007. Although economic policies are expected to remain consistent in 2006-7, the rise in inflation to 2.7 percent is of concern. The government's difficulty in passing amendments to Lithuania's tax legislation demonstrated the challenges faced by the coalition government in making tough decisions. Another priority for the government is to build up Lithuania's administrative capacity to take full advantage of financial assistance from the EU. As in other new member states, the disbursement of EU funds initially proved slower than anticipated, in large part due to the government's inability to organize the obligation of EU funds.
Lithuania has embraced market capitalism, but there has not been a large increase in U.S. trade and investment relative to other countries. Although there are areas of cooperation, our bilateral trade and investment volumes lag behind several of Lithuania's European partners, including smaller states like Estonia and Finland. Exploiting the momentum from the successful Baltic Trade and Investment Mission held in December 2004, the Embassy continues to enlist the government and resident U.S. firms in a campaign to court American businesses to invest and trade here.
The World Bank's new report, Doing Business in 2006, which assesses progress made by 155 countries in terms of the "ease of doing business," shows that the transition countries made more progress in regulatory reform than any other group of countries in 2004. Moreover, Lithuania, in 15th place overall, was the highest-ranked of the 25 countries in Central and Eastern Europe covered by the report, coming in ahead of most EU15 members. Lithuania's corporate profitability rate stood at 8 percent in 2005, the highest in the Baltic States.
U.S. ASSISTANCE PRIORITIES
In FY 2005, USG assistance in economic reform targeted intellectual property rights (IPR), preventing contraband merchandise, and improving Lithuania's ability to innovate and improve cooperation between the commercial and research sectors of the economy. One program developed practical energy management tools for local authorities to promote private sector financing.
PROGRAM PERFORMANCE
In FY 2005, USG assistance in economic reform was limited to outstanding projects funded in previous fiscal years and implemented throughout 2005. The most notable of these is the USG-funded University-Business Partnership Program focused on innovation and the knowledge economy, an area crucial to Lithuania's future and one that offers fertile ground for U.S.-Lithuanian commercial and research cooperation. USG assistance funded and participated in two major international conferences on "The Role of Lithuanian Universities in Innovation" and "Fostering Entrepreneurship: from Innovation to Multinational Corporation." As a result of this work, the Prime Minister appointed a commission on innovation in 2005 to develop reform policies.
To help protect IPR and address the problem of contraband goods, the USG gave the Lithuanian Free Market Institute a Democracy Commission grant to conduct the project "Reducing Contraband and Informal Economy by Effective Economic Policy and Public Administration." The purpose of this project was to conduct a comprehensive analysis of the economic causes of contraband of excisable goods and to present a package of proposals for reducing contraband and its related informal economy to decision makers and the broader public. The project consisted of two stages. During the first stage, baseline public awareness of the topic prior to the project was evaluated; research and analysis of findings were undertaken; and information was disseminated. As part of dissemination, the grantee organized a conference where the problem of contraband of excisable goods was analyzed and possible solutions presented. The second stage of the project focused on increasing public awareness in Lithuania and in EU and NATO member states.
Copyright infringement remains a challenge in Lithuania and is an area that has benefited from U.S. legal traditions. USG assistance through the Democracy Commission funded an expert at the Ministry of Culture's conference "Copyrights in the Area of Literature, Science and Art: Current Situation and Future" in December 2004 to speak about U.S. copyright law and practices.
USG assistance also funded a series of roundtable discussions through the project "EU-US Transatlantic Economic Relations: The Position of Lithuanian Stakeholders," funded through the Democracy Commission. The project brought Lithuanian business leaders and government officials together to identify policies necessary to enhance U.S. economic cooperation with Lithuania.
One project developed practical energy management tools for local authorities to assess risk and promote private sector financing of energy efficiency. The program aligned activities with the Lithuanian government's new program to finance energy efficiency renovations in multifamily buildings. USG assistance also supported the Global Learning and Observations to Benefit the Environment (GLOBE) in Lithuania, which continues to link Lithuanian and U.S. schools through science education, and through regional assistance granted through the Regional Environmental Office at the U.S. Embassy in Copenhagen.
An exchange visitor program supported the travel of senior government officials to examine transportation security measures, highway safety, and economic development practices in the United States. A Fulbright alumnus from 1998-1999 at Columbia University was appointed as Adviser to the President of the Republic of Lithuania in 2005, where he is the head of the Economic and Social Policy group.
In FY 2006, following the closeout of all remaining SEED projects funded in prior fiscal years, activities will be limited to Public Diplomacy exchange programs that will provide leaders in the economic field to gain experience in the United States.
Social Reform and Humanitarian Assistance
The rapid economic development of Vilnius and other major cities masks a stagnant economic situation in many rural areas that have yet to experience many of the benefits of western integration and foreign direct investment. A difficult climate (long, dark winters) and high unemployment in rural areas has contributed to a range of social problems including alcoholism, drug addiction, suicide, and crime. Although Lithuania has developed and begun to implement numerous strategies to reduce poverty, rural unemployment, and substance abuse, some contend that social services often do not reach groups at risk for these activities.
Throughout FY 2005, the Lithuanian Government continued to be active in developing strategies and programs for poverty reduction, alcohol and tobacco control, national drug control and prevention, and crime prevention. However, many of these programs have gaps, particularly in utilizing existing public health and social work resources to implement the plans regionally. Better access to social services throughout Lithuania might help to decrease the number of juvenile first-time offenders who continue to commit crimes in addition to helping to keep families together. Effective intervention against alcoholism and drug use might reduce the number of juvenile offenders progressing to violent crime.
U.S. ASSISTANCE PRIORITIES
In FY 2005, USG assistance supported Lithuania's commitment to build capacity to address the spread of HIV/AIDS, tuberculosis, and emerging diseases. This support included funds for a project that aimed to implement the National HIV/AIDS Prevention Program at the municipal level. The Lithuanian Government received technical assistance on model municipal action plans for HIV/AIDS prevention. As part of the project, local administrative, medical and social personnel received training to address HIV/AIDS. The USG also funded a Democracy Commission project to building understanding of the dynamics of poverty, unemployment, and social problems in rural areas. The project also developed policy recommendations to ensure the benefits of Lithuania's prosperity are equitably distributed.
PROGRAM PERFORMANCE
During FY 2005, the U.S. Centers for Disease Control and Prevention (CDC) continued to operate a vital, USG-funded, Baltic-wide training program on multiple drug-resistant tuberculosis (MDR-TB). The program has helped Lithuania to meet procedural requirements for participation in the World Health Organization's (WHO) program for low-cost drug treatment and to establish a program to treat several hundred MDR-TB patients diagnosed in the country each year. In FY 2005, the program supplied training for Lithuanian epidemiologists and provided the overall program support for the Lithuanian National TB program. The most significant recent accomplishment has been the acceptance of the Lithuanian MDR TB project by the WHO. This is a crucial achievement taking into account that Lithuania's rates of TB infection (73/100,000) are among the highest in Europe and the MDR-TB rates are among the highest in the world. USG assistance has played a formative role in shaping the National TB programs that have set high goals for the Government of Lithuania (GOL) for the next few years. The CDC aided Lithuanian efforts to understand the extent of the problem of drug-resistant TB and to develop a plan for improving treatment practices.
As Eastern Europe faces increasing HIV prevalence, Lithuania seeks to remain one of the leaders of the region in HIV/AIDS prevention. Although HIV/AIDS rates in Lithuania are fairly low, the situation in the neighboring countries (e.g. Kaliningrad, Russia) is worrisome. The training program to develop HIV/AIDS control strategies at the municipal level has been successfully implemented by the Lithuanian AIDS Center in most districts of Lithuania and will be continued in FY 2006. The most problematic aspect of the AIDS issue in Lithuania is discrimination against those infected with HIV. Another NGO-implemented project focuses on this problem by advocating the access of at-risk groups to medical, social and education services.
USG assistance also provided funding for a project to enhance the renewal of economically depressed areas in Lithuania through a Democracy Commission grant. With an emphasis on the concepts of community building and civic participation, the program targeted unemployment, alcoholism, and drug dependency. The project, entitled "Bringing Lithuania Together: Regeneration of Deprived Areas," entailed research on developing employment opportunities for residents unemployed for extended periods, as well as alcohol and drug abuse prevention strategies. The program also strove to renew communities by stressing responsible citizenship, civic awareness, and active civic participation. The project resulted in the development of curricula for trainers and trainees, followed by a community-based workshop for local community leaders. The program culminated with a conference that presented the findings and recommendations of the project to representatives of the Ministry of Social Security and Labor, sociologists, social workers, and the media.
USG support in the social sector also provided funding for a local NGO to monitor conditions at mental health institutions in Lithuania, also through a Democracy Commission grant. The project promoted institutional compliance with international human rights standards, to prevent human rights violations, and to improve living conditions at mental health centers. The NGO carried out an analysis of the organizational structure and budgets of mental care institutions and arranged monitoring trips to psychiatric hospitals and social care homes for the mentally disabled. The project resulted in a report on findings and policy recommendations.
Public Diplomacy education exchange programs also continued to have an impact on social development. In 2005, a Fulbright alumna created BA and MA programs in Gender Studies at Vilnius University. Another Fulbright alumna in Social Work and Philanthropy has taken a leadership role in a project entitled, "Promoting Charity and Volunteerism." The project proposes to hold events in each of the ten counties in Lithuania, during which poor families will be invited to local soup kitchens. A nutritionist will give advice on creating and maintaining a balanced diet and volunteers will demonstrate how to prepare healthy food from basic products.
In FY 2006, activities will be limited to public diplomacy exchange programs and the closeout of a remaining HIV/AIDS program.
Security, Regional Stability and Law Enforcement
Lithuania plays an extraordinarily active role in promoting democracy and free markets in Europe and beyond. It has been a fixture in the U.S.-led Global War on Terrorism. Noting that only a few years ago Lithuania depended on security assistance, Lithuania is now helping democracy take hold by commanding a Provincial Reconstruction Team (PRT) in Afghanistan and helping to ensure stability in Iraq. USG assistance has played a key role in helping Lithuania maximize its contribution to regional stability and security. The progress continues to be significant and a model for new NATO members.
Lithuania joined NATO in April 2004, just a month before entering the European Union. Lithuania continues to contribute actively to alliance activities, such as peacekeeping and counter-terrorism missions. Finally, Lithuania is an enthusiastic participant in the activities of the OSCE and numerous other international organizations. Throughout FY 2005, Lithuania demonstrated its commitment to allocating resources to meet its NATO obligations. As of 2005, Lithuania has one battalion equipped, fully interoperable and ready to be deployed alongside NATO forces for an Article 5 operation outside the territory of Lithuania.
Law enforcement cooperation continues to be an area of great success, a result of several years of legal reform and law enforcement training. The United States has successfully cooperated with the Lithuanian authorities in numerous investigations involving fraud, narcotics trafficking, money laundering, and other crimes.
U.S. ASSISTANCE PRIORITIES
In FY 2005, International Military Education and Training (IMET) funds for the Lithuanian Armed Forces targeted the continued professionalization of senior and mid-level leaders, training in logistics, civil military operations, and special operations to prepare Lithuania for its NATO responsibilities. The focus for the FY 2005 Foreign Military Financing (FMF) program remained the transformation of the military from a static territorial defense force to a deployable NATO-compatible military. SEED funds were used to provide awareness training for municipal officials, policy officers, and NGO leaders about trafficking in persons (TIP) and help establish networks to provide assistance to trafficking victims. Lastly, the United States continues to build the capacity of Lithuanian government to control its borders and prevent and interdict shipments of dangerous items and technologies through the Export Control and Related Border Security Assistance (EXBS) program.
PROGRAM PERFORMANCE
The USG FMF and IMET programs in FY 2005 continued to provide significant U.S. influence in the development of Lithuania's Armed Forces and provided an excellent vehicle for cooperation with the military leadership. FY 2005 FMF and IMET programs were key elements of Lithuania's transformation of the military to a U.S.-style expeditionary force that is deployable, sustainable and fully capable of operating along side U.S. and NATO coalition forces. One of the key benefits of the IMET program is the continued U.S. influence on the development of military leaders at all levels. Additionally, a large portion of the FMF and IMET programs initiated or extended with FY 2005 funds directly and indirectly supported the over 250 Lithuanian soldiers deployed in support of Operation Iraqi Freedom (OIF), Operation Enduring Freedom (OEF), and Balkan peace operations.
The FY 2005 IMET grant of $1.2 million funded over 53 officers and noncommissioned officers' (NCOs) attendance at nearly 100 courses in the United States. The United States conducted three highly successful Mobile Training Team (MTT) events in Lithuania in which over 100 Lithuanians participated. Two Lithuanian officers graduated from senior service colleges (Air Force and Navy). Three officers graduated from Staff College and one Lithuanian Senior NCO graduated from the Sergeant's Major Academy. Lithuania continues to place graduates from these mid-level and senior level courses in key command and staff positions throughout the military resulting in the introduction of U.S. doctrine, military philosophies and U.S. ideals at the highest levels. Nearly 40 junior officers and NCOs participated in specialty training in the fields of logistics, Special Forces operations, and Explosives Ordnance Disposal (EOD). Additionally, heavy emphasis was placed on attendance at the Logistics, Air Defense, and Intelligence Captains Career Courses. Lithuanian attendance at these courses continues to develop a gifted cadre of young officers with a strong foundation in U.S. and NATO doctrine. This training is critical for the transformation of the Lithuanian military into an agile deployable force that can help support U.S. and NATO operations.
Lithuania modified how it used its requested FY 2005 FMF funds to reflect the changing needs of their ongoing modernization, support to the Global War on Terrorism, OEF and OIF, and taking a leadership role in standing up a PRT in Afghanistan. Lithuania has obligated or has obligation documents pending U.S. approval of all of the $6.5 million in FMF funds allocated for FY 2005. The focus for Lithuania's FMF program in FY 2005 continued to be the transformation of the military from a static territorial defense force to a deployable NATO compatible military and support for OIF, OEF and PRT support operations. The major FMF cases implemented or requested for FY 2005 were for: diving equipment to modernize and increase interoperability of Lithuanian Navy EOD divers with U.S. forces; individual and collective Nuclear Biological Chemical Nerve Agent Antidote kits, radioactivity meters, and training simulators; 50 AN/PVS-14 Monocular Night Vision Devices (NVD) with helmet adapter; 1,400 Armored Body Vests to increase the force protection levels of Lithuanian troops in Iraq and Afghanistan; and seven High Mobility Multipurpose Wheeled Vehicle, Standardized Integrated Command Post System, Rigid Wall Shelters (HMMWV SICPS RWS). Lithuania has also requested, through OIF supplemental, individual soldier equipment and NVDs to support troops deployed in Iraq. Funds were also obligated to an existing FMF case, which is providing valuable military advice, focused on the ongoing transformation of the military. This contractor support has been instrumental in helping Lithuania design a National Military Strategy and a road map for transformation and procurement through 2014.
Trafficking in persons (TIP) has been a problem in Lithuania for several years. The number of TIP-related investigations increased in FY 2005, a result of increased law enforcement attention and open borders with Europe. TIP funds granted in FY 2004 allowed NGOs to continue assistance to victims of TIP and provide law enforcement with training to aid prosecution. TIP programs covered a wide range of activities, including Democracy Commission-funded awareness campaigns for youth on the dangers of seeking illegal work abroad, developing human trafficking working groups at a local level with law enforcement and NGO sector cooperation, and capacity building and competence development for law enforcement officials and legal practitioners. The project will close in FY 2006.
FY 2005 saw the first money laundering conviction in Lithuania. The presiding judge participated in U.S.-funded Partners for Financial Stability (PFS) Regional Workshops and acknowledged the role of the program in helping establish this valuable precedent. The decision is an important legacy of the PFS program's practical assistance to Lithuania in the field of prevention of money laundering.
In FY 2005, the United States provided $456,000 in EXBS assistance to Lithuania, primarily of equipment donations to Lithuanian law enforcement agencies. The equipment, which went to the Lithuanian customs department, police, border guard service, special investigative service, and radiation protection center, enhanced the Lithuanian government's capacity to detect and interdict dangerous items and technologies potentially trafficked across Lithuanian borders.
In FY 2005 EXBS also provided substantial training, including three training courses on the Product Acoustic Signature System in Lithuania, and a visit of Lithuanian Customs officers to the El Paso Intelligence Center, a Regional High-Intensity Drug Trafficking Area (HIDTA), and a Texas Joint Task Force in the United States. One Lithuanian Customs officer attended a technical experts working group on nuclear export control in Kazakhstan, and a delegation from the Lithuanian Police and Prosecutor General's office attended a Proliferation Security Initiative border exercise in Estonia. EXBS released a report for the Lithuanian border security assessment conducted in Klaipeda and Kaliningrad.
Public diplomacy exchange program participants continued to have a significant impact on legal reform and law enforcement in key areas such as money laundering and corruption. One Fulbright alumnus was named Executive Director of Transparency International Lithuanian Chapter, becoming one of the most outspoken advocates for anti-corruption policies. In June 2005, he helped author A Code of Behavior of Municipal Civil Servants and Politicians. Four Fulbright and exchange program alumni authored a book on corruption, money laundering, and campaign finance reform in 2005. Former Fulbright and other exchange program alumni established the "Civic Alliance Against Corruption." The aim of the Alliance is to unite NGOs efforts in fighting corruption in Lithuania and encourage citizen participation in the fight against corruption.
In FY 2006, FMF and IMET funds will most likely continue to be key elements of Lithuania's military transformation to a U.S.-style expeditionary force that is deployable, sustainable and fully capable of operating along side U.S. and NATO coalition forces. One remaining TIP project will continue in FY 2006 with the goal of developing a curriculum for law enforcement officers and prosecutors. Public diplomacy exchange programs will send a limited number of Lithuanians to the United States in the areas of law enforcement and regional stability.
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