How to create a competitive Lithuanian economy that will not be based solely on cheap labor

 

"In the economy, the most important thing is to discuss and decide what is the Lithuanian economic model for the coming period.

 

"What worked for 30 years gave a good result, but the fundamental assumptions on which it was based are no longer valid," commented Dalius Misiūnas, rector of the ISM University of Management and Economics.

 

He emphasized that we no longer have significantly cheaper labor force, we have decreasing European funding, our big partner Germany is also facing challenges, so the export subcontractor model used until now is being called into question.

 

"As wages rise, productivity becomes a fundamental challenge, which leads to the conclusion that we need to rethink that economic model." Little was said about it in party programs. One method that I think everyone will use, and it is partially justified, is to increase the national debt. All politicians understand that our debt is not very big, but this is only a short-term thing," said D. Misiūnas."

 

 If we lived in airless space, such thoughts would be interesting. We actually live here. The Global South, with China at the forefront, has reached a high level of technology and economy of scale, which doesn't work for Lithuania, the EU, or the USA.