Although substantially above average in living standards and technology in the old USSR, Lithuania historically lagged behind Latvia and Estonia in economic development. It is ahead of its Baltic neighbors, however, in implementing market reform. The country has no important natural resources aside from its arable land and strategic location. Lithuania benefits from its ice-free port at Klaipeda on the Baltic Sea and its rail and highway hub at Vilnius, which provides land communication between Eastern Europe and Russia, Latvia, Estonia, and Belarus. Industry produces a small assortment of high-quality products, ranging from complex machine tools to sophisticated consumer electronics.
Agriculture is efficient compared with most of the former Soviet Union.
Lithuania holds first place in per capita consumption of meat, second place for eggs and potatoes, and fourth place for milk and dairy products. Grain must be imported to support the meat and dairy industries. Other government priorities include stimulating foreign investment by protecting the property rights of foreign firms and redirecting foreign trade away from Eastern markets to the more competitive Western markets. For the moment, Lithuania will remain highly dependent on Russia for energy, raw materials, grains, and markets for its products.