It points out that the Lithuanian government has set up regional development as one of its highest policy priorities. The report shows that local public investment is crucial to this end, to attract private domestic and foreign direct investment, to improve well-being of all residents and to foster local labour markets. The OECD notes that there is a window of opportunity now, as fostering growth enhancing or socially beneficial local public investment would help mitigate the economic impact of the COVID-19 pandemic.
This report identifies the factors which reduce local government capacity to fund and finance public investment in Lithuania, following the analytical framework developed for this Project. It analyses how these factors work today in Lithuania, and how Lithuanian practices compare with international practices, with a special focus on five benchmark countries: Denmark, Finland, Ireland, the Netherlands and New Zealand.
The OECD has identified the main bottlenecks for the local public investment in Lithuania.
