Possibilities of services sector development in Lithuania

Straipsnyje nagrinėjamos paslaugų sektoriaus raidos galimybės Lietuvoje siekiant ugdyti konkurencinį potencialą ir užtikrinti strateginius proveržius mūsų visuomenėje. Lietuvai įstojus į Europos Sąjungą (ES) atsivėrė naujos galimybės paslaugų sektoriaus plėtrai, nes šiomis sąlygomis Lietuvos įmonės, teikiančios įvairias paslaugas mūsų šalyje ir užsienyje, gali pasinaudoti ES laikinąja valstybės pagalbos priemonių sistema ir gauti finansavimą iš ES struktūrinių bei sanglaudos fondų.The article deals with the services sector's development in Lithuania analyzing its competitive potential in our country. European Union (EU) has opened up new opportunities for the service sector development in Lithuania, because in these conditions Lithuanian companies can benefit from EU structural and cohesion funds. As Lithuania has limited raw resources it is important to develop innovative and science-directed services. Vast low-cost skilled labor resources enable the Government of Lithuania and its relevant executive authorities to design strategies for economic growth and to use this workforce as a catalyst in accordance with employment programs. Lithuania's special geographical position and well-developed transportation infrastructure facilities may ensure the development of its economics in the context of goods supply. Recent development of service industry should be geared to the turbulent business environment. Money should ensure the supply and demand balance. This is guaranteed by the macro-economic level and service firms in micro-economic levels. There can be distinguished two groups operating in economy including the services sector: companies as service providers and consumers and households as consumers and providers of those resources. Accordingly, the revenue flows in a clockwise direction and cash flow, reflecting the use of that income, is close to the running counter- clockwise. Despite the degree of simplification, the proposed service-based economy model is designed to the supply and demand balance and cash flows as a useful tool for analytical framework which emphasizes vital importance in national economic activity. The proposed model of income flows was applied in the service sector: the demand was represented by the domestic private firms and household expenditures for the supply returned back into the household. This in turn shows that the volume of revenue in a market economy is related to the costs resulting from the use of services and resources, for example, labor wage, "know-how" (the scientific and technical innovation) costs. Services as an economic catalyst for national macroeconomic and microeconomic growth requires treatment services to the target structure, corresponding to modern scientific and technical progress, in accordance with the strategic focus and strategic niche grateful windows. Economic globalization of the national development of service industry is attributable to the use of skilled labor. Machinery and equipment as a natural basis for the provision of services are not only higher productivity but also in terms of opportunities to attract consumers, because if not handled according to the latest technology and the latest equipment used and the effect of information technology, where a company offers its portal services, households do not use such services. For example, our capital city of one street mile has several beauty salons. As the highest level of patented technologies and the latest equipment is difficult to acquire, developing countries are at the lower level; in order to have it, they can use the franchise or lease to buy. The gap between the supply and demand matrix sweeps away new technologies, such as NATO scientific program for peaceful purposes. New techniques and technologies by patents purchased for consumption when the competitors pass another variation of the technique and equipment are clearly more productive. Earth planet scale is necessary to create favourable conditions for intensification of globalization, because it provides scientific and technological progress more or less backward countries. As shown by the Chinese and Indian experience, scientific and technological progress can be developed by facilitating the direct and indirect equity investments in the country, which are particularly important because on the one hand, they increase labor employment, on the other hand, usually, with rare exceptions, received the highest level of technique and technology. Income, in turn, ensures the demand, namely a fundamental driver of economic growth in all growth phases (depression, growth, overheating, crisis and again from the beginning). By repeated cycles of long and short waves of economic fluctuations, caused by disorder and lack of demand, is formed economic growth of our country