Abstract
While Lithuania had undertaken substantial political and economic reform prior to independence, the greatly accelerated pace of privatization following the restoration of same resulted in the emergence of a business class at the local level controlling most of the economic wealth. Concurrent with the process, the state became increasingly less able to either subsidize local governments or assist those hurt most by the reforms. A case study of Siauliai, Lithuania demonstrates that while the new local business class is overrepresented in the city's government other social elements are not without political voice. Indeed, there appears to be substantial evidence of an 'urban regime' linking political office seekers and business interests in an interdependent relationship permitting the former a significant degree of latitude in responding to the demands of pensioners and other citizen groups who make up the majority of their political base.