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Cultural Foundations of the Economics of Resources and Population in Lithuania and Sweden : Some Reflections on Social Capital and

Increased population and income cause short-run resource scarcity that induces innovation in a free society, which leaves us better off than if the shortage problem had not arisen. Reciprocity is crucial to human cooperation in the form of voluntary exchange and culture may include norms that create reciprocal sympathy. Lithuania and Sweden are both small, independent states in the Baltic Sea Area, whose economic integration will facilitate learning when a common culture of reciprocal sympathy sustains voluntary exchange throughout that area. Efficiency in the use of resources and economic freedom are explained by culture, using a historical-anthropological-interpretive approach.