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Why is labor productivity growing poorly in Lithuania?


It is important that the government allows the import of cheap unskilled Kyrgyz and other migrants, what enables entrepreneurs to do without expensive modern technologies.

 

Additional ideas are offered by Orbit in the comments:

 

“I think we have at least 5 fundamental structural and deepening problems:

 

1. We do not have raw materials at competitive prices

 

2. Uncompetitive energy prices

 

3. Excessive regulation and bureaucracy

 

4. Too small and overtaxed amount of qualified labor

 

5. Relatively too large part of the private sector, thriving on billions squandered by the corrupt and bloated public sector, which drags down overall productivity indicators.”

 

These factors hinder our ability to produce something more complex. The first and second points are again problems of the government. Unlike Hungary and Slovakia, the Lithuanian government is always very anti-Russian in order to get the votes of the village women that are not very sophisticated.

 


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