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Business & Economics

ASSET-BASED POLICY IMPLEMENTATION MODEL IN LITHUANIA
Algimantas Laurinavicius, Birute Galiniene

ABSTRACT.The article presents a hypothetical model of the asset-based policy implementation applicable to Lithuania, upon opening long-term savings accounts for all the country's newborns and allocating the accumulated funds to the Children's Opportunity Fund. The findings of the article are based on the results of a representative survey of Lithuanian population described in Laurinavičius and Galinienė (2013) and on the outlook of the asset-based policy models implemented in foreign countries. The object of the research is the asset-based policy implementation model applicable to Lithuania. The main tasks are to describe basic parameters of the model, its functioning principles, and expected results. The paper also analyses various options of policy financing and overviews investment possibilities of accumulated funds. The paper finds that the asset-based policy could be implemented in Lithuania, thus, reducing wealth inequality and poverty rate, in a way that everybody becomes investor and capital owner .

KEYWORDS: asset-based policy, poverty reduction, children's savings accounts, Children's Opportunity Fund.

JEL classification: D63, I38.