Lithuania’s double transition after the re-establishment of independence in 1990: coping with uncertainty domestically and externally

Constitutional changes implemented when Lithuania re-established its independence in 1990 went beyond the resetting of its relations with the rest of the former Soviet Union. Political and constitutional changes were paralleled by changes of the economic regime, i.e. a transition from a centrally planned to a market economy. This type of systemic change implied radical reforms of property rights, of transactions between economic agents, and of economic regulation. This article focuses on two issues which are important for any newly (re)established polity. The first is the quality of governance associated with the constitutional changes which will influence the behaviour and expectations of economic agents. The second is the management of economic interdependencies with the state from which the new state has seceded, and the establishment of a stable environment for bilateral economic relations.