This Selected Issues paper and Statistical Appendix analyzes economic developments in Lithuania during 1996–99. The paper discusses macroeconomic developments and policies in detail. It discusses the importance of fiscal prudence in maintaining sustainable fiscal and external positions over the medium term, and emphasizes that reining in budgetary spending will be a key challenge in the period ahead. The paper reviews external competitiveness and concludes that Lithuania’s competitiveness has remained adequate through early 1999, although there remains little room for further real appreciation and wage rises that are not related to productivity increases.
This paper examines the Annual Progress Report (APR) on Rwanda’s Poverty Reduction Strategy Paper (PRSP). The 2004 APR is an important progress marker in Rwanda’s long-term vision to reduce the proportion of Rwandans living below the poverty line from 60 percent to 25 percent and raise per capita incomes from $250 to above $1,000. It represents an analysis of progress to date under the 2002 PRSP and sets out in detail government initiatives, which contribute to the goal of poverty reduction.