Managing Reform: How Can the Baltic States as Aid Donors Best Share their Transition Experience with Less Advanced Economies and what Lessons Can they Learn from the International Development Programs of the Nordic Countries?

Abstract

In spite of the global economic and financial crisis the Baltic States continue with their transition. According to the World Bank, Estonia and Latvia already are high income countries and Lithuania is an upper middle income country. All the Baltic States are members of key multilateral development institutions and have also established their bilateral development programs. Currently they are assisting and sharing their transition experience with countries further to the south and the east, including Belarus, Georgia, Moldova, Ukraine, etc. This article argues that small states can play an important role in economic development and the Baltic States can be important contributors since they have recent and relevant transition experience to share if they engage in policy dialogue with countries that are less advanced in their transition.Small states, bilateral and multilateral development cooperation, budget support, policy dialogue, international financial institutions (IFIs).