This report for Lithuania forms part of the OECD Review of Policies to Improve the Effectiveness of Resource Use in Schools (also referred to as the School Resources Review, see for further details). The purpose of the review is to explore how school resources can be governed, distributed, utilised and managed to improve the quality, equity and efficiency of school education. School resources are understood in a broad way, including financial resources (e.g. expenditures on education, school budget), physical resources (e.g. school infrastructure, computers), human resources (e.g. teachers, school leaders) and other resources (e.g. learning time).

Since regaining independence in 1990, Lithuania has clearly stated the importance of education to societal development. The National Education Strategy 2013-22 includes a focus on education as a foundation for the future and a commitment to increase the level of investment from public funds in education to 6% of Gross Domestic Product (GDP) in 2022. However, the international financial crisis hit the Lithuanian economy harder than on average in OECD economies. A far-reaching convergence programme includes a target reduction for educational expenditure from 6.2% to 4.8% of GDP in 2020. Already, public expenditure per student in Lithuania is one of the lowest among European Union countries. There has also been mass emigration since 1990, with around 20% of the 1990s population leaving Lithuania over the following 20 years. The majority of emigrants are of working age and, increasingly, families. This has presented significant efficiency challenges to the school network. Also, international data reveal considerable concerns with the quality of school education in Lithuania, including significant rural-urban disparities.

The international financial crisis hit the Lithuanian economy harder than on average in OECD economies. Its continued vulnerability to adverse developments in the international economy has seen the introduction of a far-reaching convergence programme aiming to reduce public expenditure from 42.2% of GDP in 2010 to 30.9% of GDP in 2020. This includes a target reduction for educational expenditure from 6.2% to 4.8% of GDP. These economic difficulties have had significant social impact: At 10.9%, the unemployment rate remains twice as high as in 2008, with greater risk for youths aged 15‑24; and 30.8% of the Lithuanian population is at risk of poverty or social exclusion. There has also been mass emigration since 1990, with around 20% of the 1990s population leaving Lithuania over the following 20 years. Emigration continues and between 2011 and 2014 the population further decreased from 3 to 2.9 million. The majority of emigrants are of working age and, increasingly, families. This has presented significant efficiency challenges to the school network. Lithuania is the fastest ageing population in Europe, which will put further pressure on public budgets. Already, public expenditure per student in Lithuania is one of the lowest among European Union (EU) countries.

This chapter presents an overview of the economic and demographic context in Lithuania, including the impact of the international financial crisis and mass emigration on the funding and organisation of schooling. It also provides a brief description of the Lithuanian school system for international readers. Finally, it presents evidence on the quality, equity and efficiency of the Lithuanian school system.

This chapter focuses on the framework of governance applied to schooling in Lithuania and on how the school network is organised. It looks at the oversight and management of the schooling system at government, municipality and school level and considers how the network of schools is configured and, importantly, how that network is reviewed and reorganised to respond to demographic changes. It considers the strengths and challenges inherent in the current system and makes policy recommendations designed to improve the governance of how resources are used effectively.

This chapter presents an overview of how the school system in Lithuania is funded, including a detailed presentation of the central funding formula used to allocate funding for teaching costs (the student basket). This was a major element of a funding reform introduced in 2001, which saw the separation of teaching costs (central funding) and school maintenance costs (municipal funding). It considers the strengths and challenges inherent in the current system and makes policy recommendations designed to build on and strengthen the approach to school funding, including the need to regularly review and evaluate the adequacy and costs of funding.

This chapter presents a profile of the teaching workforce in Lithuania and describes current approaches to teacher initial education, recruitment, qualification requirements, work load, professional development and career structure. It considers the strengths and challenges inherent in the current system and makes policy recommendations designed to improve the management and development of the teaching workforce, including with a focus on planning the future supply of teachers and creating a more coherent teacher career pathway.