The Economics, Politics and Safety Dimensions of the Ignalina Nuclear Power Plant

Abstract

During the period after Lithuania regained its independence, very deep, complicated and mostly unpredictable changes in the economy, in all branches of industry without exception, took place. Very abrupt prise rises of all primary energy resources and raw materials, almost all of them being imported, together with low productivity, led to a deep decline in the output of industry and agriculture. It is evident that even now the Lithuanian economy has not yet adapted to new conditions, where competition makes it necessary to produce high-quality products and to adjust to rapid changing market. From the Soviet past the country inherited a rather modern energy sector, which has to some extent helped to smooth the transition. However, the consumer, who had become used to very cheap energy, could not change at once. The energy intensity of the Lithuanian economy is still significantly higher than in modern economies. To significantly reduce this dependency, Lithuania needs enormous investments in all sectors of the economy and that is impossible to do in short time and under the circumstances of a long-lasting general economic crisis. Only in 2001 have signs of real recovery been observed.