Preparing for ”Knowledge Economy Phase” Private/public cooperation in supporting Information Society and Knowledge Economy developments Antanas ZABULIS President and CEO Omnitel (Lithuania)

Lithuania already made two major steps towards Euroatlantic Community Regaining Independence, international recognition of the State, establishment of state institutions, creation of national legal system and consolidation of Democracy Creating functioning Market Economy and euroatlantic ( EU and NATO ) integration efforts. Attractive Investment climate, current economy development as well as its strong growth potential gained international recognition by various international business and financial institutions, including Goldman Sachs recommendations to invest in Lithuania. (prie technologijų lyderės) Neretai “” Lietuvoje įdiegia technologijas anksčiau nei jos pristatomos kitose pasaulio šalyse arba pristato kartu su pasaulio operatoriais. (prie paslaugų lyderės) Bendrovei svarbu, kad naujausios technologijos duotų labai realią naudą Lietuvos gyventojams, todėl daug jėgų ir darbo spektrą. (prie investicijų) Šiandien bendrovė yra vienas svarbiausių valstybės ūkio subjektų. Viena didžiausių ir kaip investuotoja, ir kaip mokesčių mokėtoja. Įtakingiausia formuojant Lietuvos ir Baltijos šalių telekomunikacijų rinkas. šiandien lenkia visas Lietuvos, Latvijos ir Estijos mobiliųjų telekomunikacijų bendroves. Šiandien “Omnitel” yra nebepralenkiama šalies mobiliųjų telekomunikacijų srities lyderė. (prie technologijų lyderės) Neretai “” Lietuvoje įdiegia technologijas anksčiau nei jos pristatomos kitose pasaulio šalyse arba pristato kartu su pasaulio operatoriais. (prie paslaugų lyderės) Bendrovei svarbu, kad naujausios technologijos duotų labai realią naudą Lietuvos gyventojams, todėl daug jėgų ir darbo spektrą. (prie investicijų) Šiandien bendrovė yra vienas svarbiausių valstybės ūkio subjektų. Viena didžiausių ir kaip investuotoja, ir kaip mokesčių mokėtoja. Įtakingiausia formuojant Lietuvos ir Baltijos šalių telekomunikacijų rinkas. šiandien lenkia visas Lietuvos, Latvijos ir Estijos mobiliųjų telekomunikacijų bendroves. Šiandien “Omnitel” yra nebepralenkiama šalies mobiliųjų telekomunikacijų srities lyderė.

Today is time to prepare for Tomorrow Challenges Today is the time not to rest with the achieved, but to concentrate towards future developments and look forward towards future challenges.

Convergence phases Regaining Independence, establishing Democracy Consolidation of Market Economy, candidate into EU and NATO EU post accession period Knowledge Economy phase 2002 –200?

What is perspective of Lithuania Economy during EU post-accession Period?

Lithuania on the Crossroad - between Nordic, Central and Eastern Europe

Domestic development processes favorable for the investments: – Stable prices and low interest rates create necessary financial environment for business development; – Stable monetary politics, proved by the fluent process, when Litas was unpegged from USD and pegged to EURO – essential condition of foreign investment growth; – Totally privatized and run almost by Western banks banking sector; – Rapidly growing industry and export; – Increasing investments of industrial and service enterprises to ITT, advanced business management methods; – Continuously increasing consumption potential; – Rapidly developing sectors of telecommunications and information technologies. – The best infrastructure of telecommunications and roads in the region. Perfect starting positions

Development of GDP per capita projected on the basis of 2001: EU vs. Lithuania

The presumable framework of the more rapid GDP growth during post-accession period, providing current positions and potential of Lithuanian economy

We believe that Lithuania will also succeed in challenges of post-accession period WHAT ELSE?

In 8-10 years of extensive development, the further opportunities of extensive growth will be exhausted

In approx – 2015 the opportunities of extensive development will be exhausted. Therefore it is critical to base the development of economy branches on modern technologies by 2010, which will allow to switch from extensive economy development to intensive.

In case Lithuania will be ready for Knowledge Economy Phase and have innovative economy branches developed

The further GDP growth will be ensured

To ensure consequent growth of country’s economy and convergence, the vision of further development of the economy was formed. It was accepted by all main political powers, business community and the society. The vision will make the basis for continuous and forbearing work of all social powers. NATIONALLY ACCEPTED FUTURE VISION OF THE COUNTRY Vision of Lithuania beyond EU post-accession period: well developed Knowledge Economy and Information Society

KAUNAS University of Technology University of Agriculture of Lithuania Vytautas Magnus University Kaunas University of Medicine Academy of Physical Education Lithuanian Veterinary Academy Lithuanian Energy Institute VILNIUS Vilnius University Gediminas Technical University Vilnius University of Pedagogic Law University of Lithuania Vilnius Academy of Fine Arts Academia Musicalis Lituaniae Lithuanian Military Academy Šiauliai University Klaipėda University Source of KE potential - Strong Study and Research infrastructure

ITT sector is booming In 2001 Lithuanian IT market increased more that 30% Q sales grow 23% compared to 11% in 1Q of 2001 Cellular penetration to overcome the density of fixed lines in % increase in PC sales compared to 2000 Internet penetration grew 5.1% during last 6 months Internet Banking grew 300% during last 6 months In 2001 Omnitel increased its customer base by 73%, turnover 43% and became biggest mobile telecommunication company in Baltic States

We cannot just wait for the year 2015 The further growth could only be ensured by basis of innovative economy branches during EU post- accession period

Preparation for Knowledge Economy Phase

It is only coordinated efforts of Government and Business will create a synergy effect, which will help to transform the Vision into Reality

Knowledge Council lead by President of the Republic of Lithuania Council consists of top level governmental and private business executives dedicated to set-up of strategic priorities developing knowledge economy and society Knowledge Economy Forum Association, creating and promoting knowledge economy development strategies, consist of 40 leading innovative private enterprises representing IT, biotechnologies, leaser technologies, and telecommunications Development of Long-Term Strategy for Lithuanian Economic Development in Strategy was developed by leading experts from public and private sector and went via electronic community consultation by internet. Industry development strategy include target to achieve 25% of GDP generated by ‘knowledge rich’ industries by Private/Public Initiatives

“Window to the Future” initiative Alliance of biggest private enterprises of Telecommunications, Banking and IT sector, aiming to stimulate development of Information Society and force Internet penetration growth in the country Development of National Agreement on Economic Development Memorandum of understanding was signed by all major political parties and leading business associations

KNOWLEDGE ECONOMY and INFORMATION SOCIETY development are top priorities in current private/public cooperation activities in Lithuania

Knowledge Economy Forum Association of more than 40 leading IT, Biotechnology, Leaser technology, and Telecommunication companies. Promoting knowledge economy development strategies

INFORMATION SOCIETY DEVELOPMENT INITIATIVE Alliance, joining leading ITT companies and Banks WINDOW TO THE FUTURE

GOAL Achieve average Internet penetration of the European Union in Lithuania Within three years WINDOW TO THE FUTURE

FIELDS OF ACTIVITY ACCESS Access to the Internet for broadest levels of the society TRAINING Training of the society in using computers and the Internet E-SERVICES Development of the electronic content and services relevant to the society WINDOW TO THE FUTURE

FIRST 2002 Project Public Access Internet Centers 65 centers in 45 different cities and regions, covering all Lithuania this year

Strategic shift in understanding of countries development future happened in the minds of political and business establishment. Lithuania is going via strategic planning phase towards everyday developments and investments into next decade future of the Country. CONCLUSION

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