Latvia

   

Executive Capacity

#8
Key Findings
With significant strategic capability, Latvia receives a high overall ranking (rank 8) in the area of executive capacity. Its score on this measure has declined by 0.1 point relative to its 2014 level.

A recently established government planning unit has expanded strategic capacities and helps to review line-ministry proposals. This is now being merged into the Chancellery. Coalition parties have broad influence over the ministries they control, weakening the prime minister’s power. An informal “collaboration council” meets regularly to coordinate the work of the governing coalition.

A recently introduced online portal for legislation has made the drafting process more transparent, and enhanced collaboration. RIAs are required for all draft proposals. The online portal has helped standardize the process. Public consultation is frequent, but its impact is often limited. Communication has been streamlined under the Chancellery’s new communication coordination department.

Domestic adaptability to EU norms has proven substantial. Municipalities have been consolidated in an attempt to make them economically stronger. Efforts to improve regulatory enforcement, particularly within the banking sector, have improved.

Strategic Capacity

#9

How much influence do strategic planning units and bodies have on government decision-making?

10
 9

Strategic planning units and bodies take a long-term view of policy challenges and viable solutions, and they exercise strong influence on government decision-making.
 8
 7
 6


Strategic planning units and bodies take a long-term view of policy challenges and viable solutions. Their influence on government decision-making is systematic but limited in issue scope or depth of impact.
 5
 4
 3


Strategic planning units and bodies take a long-term view of policy challenges and viable solutions. Occasionally, they exert some influence on government decision-making.
 2
 1

In practice, there are no units and bodies taking a long-term view of policy challenges and viable solutions.
Strategic Planning
8
In December 2011, Latvia established a central government planning unit, the Cross-Sectoral Coordination Centre (Pārresoru koordinācijas centrs, PKC). The PKC’s mandate was to develop a long-term strategic approach to public policymaking, while also monitoring decision-making to ensure that public policies are effective. The PKC also monitors ministries’ progress toward meeting the government’s stated goals, as outlined in the government declaration.

As the institution responsible for the policy-planning process, the PKC ensures standardized procedures for submission of policy documents to the cabinet, including adherence to long-term and medium-term outcome indicators and the inclusion of budgetary information for additional funding within the fiscal space determined by the Ministry of Finance. It also evaluates the strategic robustness of ministry submissions to the annual three-year budget process. To strengthen the mandate of the government in key structural reforms, it established and serves as the secretariat of the National Development Council that advises the prime minister on issues such as key framework policies for the next seven-year planning period. The PKC also coordinates meetings with ministry-level policy planners in order to ensure a feedback loop for any new initiatives involving strategic planning. This group, for example, collectively approved Latvia’s approach to mainstreaming the 2015 UN Sustainable Development Goals within the country’s policymaking process, thus ensuring that the policy system remains systematic and coherent.

To date, the PKC has produced two National Development Plans, and has screened subsequent sectoral planning documents to ensure adherence to the plans and the Latvia 2030 framework. It contributes to policy debates on a range of cross-sectoral issues specified by the prime minister or the cabinet, including demographics and income disparities. The PKC reviews all proposals discussed by the cabinet and provides weekly briefings for the prime minister on substantive issues scheduled for discussion by the cabinet.

Despite the PKC’s core role and the recent reduction in ministries’ departmental units and staff numbers, the planning system remains deconcentrated. The NDP identifies the achievable outcomes and main measures mandated by the inclusive and participatory multi-stakeholder process. However, it is up to the ministries to make sector-level plans within the framework and beyond, including at the EU level.

Citations:
1. The Cross-Sectoral Coordination Centre, Information Available at (in Latvian): https://www.pkc.gov.lv/lv/par-pkc/kas-ir-pkc, Last accessed: 10.01.2022.

2. The Cross-Sectoral Coordination Centre (2018) Annual Report:2018, Available at: https://www.pkc.gov.lv/sites/default/files/PKCgada%20parskats%202018_FINAL_pdf.pdf, Last accessed: 10.01.2022.

3. Official Publisher of the Republic of Latvia (Latvijas Vēstnesis) (2019) Changes in the governance of State Owned Enterprises: Changes in 2020 https://lvportals.lv/skaidrojumi/306321-grozijumi-valsts-un-pasvaldibu-kapitalsabiedribu-parvaldiba-kas-mainisies-2020-gada-2019, Last accessed: 10.01.2022.

4. Development Planning System Law (2014) Available at: https://likumi.lv/ta/en/en/id/175748, Last accessed: 04.01.2022.

5. Rules for Development and Impact Assessment of Development Planning Documents (2014) Available (in Latvian): https://likumi.lv/ta/id/270934-attistibas-planosanas-dokumentu-izstrades-un-ietekmes-izvertesanas-noteikumi, Last accessed: 10.01.2022.

Does the government regularly take into account advice from non-governmental experts during decision-making?

10
 9

In almost all cases, the government transparently consults with non-governmental experts in the early stages of government decision-making.
 8
 7
 6


For major political projects, the government transparently consults with non-governmental experts in the early stages of government decision-making.
 5
 4
 3


In some cases, the government transparently consults with non-governmental experts in the early stages of government decision-making.
 2
 1

The government does not consult with non-governmental experts, or existing consultations lack transparency entirely and/or are exclusively pro forma.
Expert Advice
6
The decision-making system in Latvia is transparent and open to public participation from the point at which policy documents are circulated between ministries in preparation for review by the cabinet. At this stage, experts and NGOs have the opportunity to provide input on their own initiative.

Most ministries have developed good practices in the area of public consultation. For example, ministries often seek expert advice by inviting academics to join working groups. Some government planning documents, such as the National Action Plan for Open Government by the State Chancellery, have been drafted in cooperation with NGO experts, following public discussions.

However, the government lacks the finances to regularly commission academic input. Consequently, expert engagement is given voluntarily, without remuneration.

The tax reform in 2017 saw a wide array of international and domestic experts propose and debate reforms across a broad spectrum of government committees, public forums, TV and radio debates, and op-ed columns. A similar deliberation process preceded the healthcare reforms and, in 2019, the territorial administrative reform. This has increased the status of non-governmental academic experts and government transparency.

However, expert advice is not always sought out and/or embraced. Recently, for example, an academic expert group was established to assess the future scenarios for COVID-19 crisis management, coordinated by the PKC. Soon afterward, the group of experts terminated its activities indefinitely, because the model for cooperation with the Cabinet of Ministers was seen as having failed, and the experts did not feel that the results were justifying their efforts. The group explained that the cooperation should be rooted in government requests for academic expertise, which had not occurred during this time.

Citations:
1. Official Gazzette ‘Latvijas Vestnesis’ (2021) Statement by the Academic Environment Expert Group on the suspension of its activities, Available (in Latvian): https://lvportals.lv/dienaskartiba/333432-akademiskas-vides-ekspertu-grupas-pazinojums-par-savas-darbibas-apturesanu-2021, Last accessed: 13.01.2022

Interministerial Coordination

#15

Does the government office / prime minister’s office (GO / PMO) have the expertise to evaluate ministerial draft bills according to the government’s priorities?

10
 9

The GO / PMO provides regular, independent evaluations of draft bills for the cabinet / prime minister. These assessments are guided exclusively by the government’s priorities.
 8
 7
 6


The GO / PMO evaluates most draft bills according to the government’s priorities.
 5
 4
 3


The GO / PMO can rely on some sectoral policy expertise but does not evaluate draft bills.
 2
 1

The GO / PMO does not have any sectoral policy expertise. Its role is limited to collecting, registering and circulating documents submitted for cabinet meetings.
GO Expertise
9
The formation of the PKC, which reports directly to the prime minister, has ensured a mechanism enabling input from the government office on the substance of policy proposals from line ministries. The PKC evaluates proposals that are to be addressed by the cabinet as they are published for debate – thus, before being put on the cabinet agenda. It also screens documents going to the cabinet on a weekly basis, focusing on four issues: cross-sectoral impact, adherence to the policy-planning system, adherence to the government declaration, and compatibility with the main medium-term and long-term strategy documents (the National Development Plan and Latvia 2030).

Citations:
1. National Development Plan 2020, Available at (in Latvian): https://www.pkc.gov.lv/lv/valsts-attistibas-planosana/nacionalais-attistibas-plans, Last accessed: 12.01.2022.

2. Sustainable Development Strategy of Latvia until 2030, Available at: http://www.pkc.gov.lv/sites/default/files/images-legacy/LV2030/LIAS_2030_en.pdf, Last accessed: 12.01.2022

To what extent do line ministries involve the government office/prime minister’s office in the preparation of policy proposals?

10
 9

There are inter-related capacities for coordination between GO/PMO and line ministries.
 8
 7
 6


The GO/PMO is regularly briefed on new developments affecting the preparation of policy proposals.
 5
 4
 3


Consultation is rather formal and focuses on technical and drafting issues.
 2
 1

Consultation occurs only after proposals are fully drafted as laws.
Line Ministries
8
Since its establishment in 2011, the PKC has become involved in line ministry preparation of policy proposals. PKC representatives may be invited to participate in working groups, but the involvement of the PKC is at the ministry’s discretion. Informal lines of communication ensure that the PKC is regularly briefed on upcoming policy proposals.

The State Chancellery evaluates draft proposals prepared by the ministries and ensures the legal execution of legal acts. Moreover, the State Chancellery may issue an opinion on a project after it has been submitted for approval on the TAP portal (a public portal for draft legislation), addressing issues such as administrative burdens, public participation or necessary posts, or assessing the quality of the initial impact assessment.

With the introduction of the TAP portal in 2021, ministries also tend share of draft legislation with the State Chancellery through the portal before handing it over officially.

In Latvia, ministers enjoy relatively substantial autonomy, which weakens the power of the prime minister. As a result, ministers belonging to a different party than the prime minister may attempt to block the prime minister’s office from interfering in sensitive policy issues.

How effectively do ministerial or cabinet committees coordinate cabinet proposals?

10
 9

The vast majority of cabinet proposals are reviewed and coordinated first by committees.
 8
 7
 6


Most cabinet proposals are reviewed and coordinated by committees, in particular proposals of political or strategic importance.
 5
 4
 3


There is little review or coordination of cabinet proposals by committees.
 2
 1

There is no review or coordination of cabinet proposals by committees. Or: There is no ministerial or cabinet committee.
Cabinet Committees
2
Cabinet committees were an integral part of the official decision-making process. If ministerial agreement on draft policy proposals cannot be reached at the state-secretary level, issues were automatically taken up by a cabinet committee for resolution and the cabinet committee’s mandate is to iron out differences prior to elevating the proposal to the cabinet-level.

However, since May 2019, following a resolution by the prime minister, the cabinet committee no longer meets. The last meeting took place on 15 April 2019. Issues that were once considered by the committee are now addressed either in the meetings of the state secretaries (if the issue is one that can be resolved at the civil service level), or in the meetings of the Cabinet of Ministers (if the issue can be resolved politically).

Special steering groups may also be set up to resolve disagreements and speed up decision-making. An example of this is the Operational Steering Group on COVID-19 issues.

Citations:
1. State Chancellery (2018), Report, Available at (in Latvian): https://www.mk.gov.lv/sites/default/files/page/attachments/valsts_kancelejas_gada_parskats_2018_0.pdf, Last assessed: 06.01.2022.

2. Cabinet of Ministers (2019) According to the Resolution of the Prime Minister of 7 May 2019, the organization of meetings of the Cabinet Committee is not planned for the future, Available (in Latvian) at: http://tap.mk.gov.lv/mk/mkksedes/saraksts/s/darbakartiba/?sede=654, Last accessed: 06.01.2022.

How effectively do ministry officials/civil servants coordinate policy proposals?

10
 9

Most policy proposals are effectively coordinated by ministry officials/civil servants.
 8
 7
 6


Many policy proposals are effectively coordinated by ministry officials/civil servants.
 5
 4
 3


There is some coordination of policy proposals by ministry officials/civil servants.
 2
 1

There is no or hardly any coordination of policy proposals by ministry officials/civil servants.
Ministerial Bureaucracy
9
Until recently, coordination of policy proposals was mandated at the state-secretary level, and new policy initiatives were officially announced at weekly state-secretary meetings.

With the introduction of the new Legislative Portal (TAP), there is no longer a formal announcement of new bills at the meetings of the state secretaries. Now everything new appears on the portal, with the reporting period for submitting opinions beginning at the point of appearance. This has made the process of developing legislation more transparent – the portal allows the draft project to be published during the formulation stage, and the development of the draft continues in a collaborative, documented, and transparent manner. The institutions that have created accounts on the TAP portal have the opportunity to track the progress of projects at each stage, and can submit their objections or proposals in a timely manner.

Institutions and natural persons that do not have an account on the TAP portal can provide an opinion on a discussion paper before the project is submitted for inter-institutional coordination, and can also track the progress of draft measures (e.g., withdrawn, agreed, accepted, submitted, developed). The TAP portal allows users to share the draft legislation with representatives of other institutions before sending it for review, thus eliminating errors in a timely manner. It is also possible to see the opinions submitted by all participants in the coordination process, including social partners and NGOs.

Issues can be fast-tracked at the request of a minister. Fast-tracking means that the usual procedures for gathering cross-sectoral and expert input can be circumvented, putting the efficacy of coordination at risk. In 2020, 40% of all issues before the cabinet were fast-tracked, an increase from 2018.

At a lower bureaucratic level, coordination occurs on an ad hoc basis. Ministries conduct informal consultations, include other ministry representatives in working groups, and establish interministerial working groups to prepare policy proposals. These methods are widely used, but not mandatory.

Citations:
State Chancellery (2015, 2018. 2020), Reports (in Latvian), Available at: https://www.mk.gov.lv/lv/content/gada-publiskie-parskati, Last assessed: 10.01.2022.

How effectively do informal coordination mechanisms complement formal mechanisms of interministerial coordination?

10
 9

Informal coordination mechanisms generally support formal mechanisms of interministerial coordination.
 8
 7
 6


In most cases, informal coordination mechanisms support formal mechanisms of interministerial coordination.
 5
 4
 3


In some cases, informal coordination mechanisms support formal mechanisms of interministerial coordination.
 2
 1

Informal coordination mechanisms tend to undermine rather than complement formal mechanisms of interministerial coordination.
Informal Coordination
7
A collaboration council that represents the political parties forming the governing coalition meets for weekly informal consultations. Despite its regular meetings with formal agendas, the council is not a part of the official decision-making process. Given that cabinet meetings are open to the press and public, collaboration council meetings provide an opportunity for off-the-record discussions and coordination. The council plays a de facto gatekeeping function for controversial issues, deciding when there is enough consensus to move issues to the cabinet. The council can play both a complementary role, creating an enabling environment for consensus-building, and a destructive role, undermining the legitimacy of the official decision-making process.

The secrecy surrounding the collaboration council (previously known as the coalition council) has made it a controversial institution in the past. “Who Owns the State?” – a populist party that won the second-largest share of the vote in the 2018 parliamentary election – promised to eliminate the coalition council. While the government coalition formed in January 2018 no longer refers to it as a “coalition council,” the collaboration council continues to operate as it has, but under a different name.

In addition to the collaboration council, the coalition has various coalition working groups that work on more specific issues.

How extensively and effectively are digital technologies used to support interministerial coordination (in policy development and monitoring)?

10
 9

The government uses digital technologies extensively and effectively to support interministerial coordination.
 8
 7
 6


The government uses digital technologies in most cases and somewhat effectively to support interministerial coordination.
 5
 4
 3


The government uses digital technologies to a lesser degree and with limited effects to support interministerial coordination.
 2
 1

The government makes no substantial use of digital technologies to support interministerial coordination.
Digitalization for Interministerial C.
8
Until recently, collaboration between state institutions was generally well organized, but fragmented, and did not have an effective common platform for the exchange of documents between ministries. With the introduction of the TAP portal, the situation has improved significantly. The circulation of documents between the State Chancellery and line ministries now takes place online in a new high-quality form, making the process of document exchange more transparent and efficient.

Furthermore, the TAP portal has indirectly contributed to the increase in the use of e-signatures in public administration, as authentication within the closed environment of the TAP portal requires the use of an e-ID, e-signature or mobile e-signature.

A unified platform of state and local government websites has also been created. This platform is an information technology tool that can be used to create websites, and offers modern and easy-to-use platforms for state institutions and local governments based on uniform principles. This platform has raised the quality of digital communication in the public administration, as agencies can interact with citizens more efficiently.

Citations:
Legislative Portal (TAP), Available at: https://www.mk.gov.lv/en/tap-portals, Last accessed: 10.01.2022

2. Cabinet of Ministers (2020) Unified platform for state and local government websites, Available (in Latvian) at: https://www.mk.gov.lv/lv/projekts/valsts-un-pasvaldibu-iestazu-timeklvietnu-vienota-platforma, Last accessed: 10.01.2022.

3. Digital Transformation Guidelines for 2021-2027 (2021) Available (in Latvian) at: https://likumi.lv/ta/id/324715-par-digitalas-transformacijas-pamatnostadnem-20212027-gadam, Last accessed: 10.01.2022.

Evidence-based Instruments

#19

To what extent does the government assess the potential impacts of existing and prepared legal acts (regulatory impact assessments, RIA)?

10
 9

RIA are applied to all new regulations and to existing regulations which are characterized by complex impact paths. RIA methodology is guided by common minimum standards.
 8
 7
 6


RIA are applied systematically to most new regulations. RIA methodology is guided by common minimum standards.
 5
 4
 3


RIA are applied in some cases. There is no common RIA methodology guaranteeing common minimum standards.
 2
 1

RIA are not applied or do not exist.
RIA Application
8
The government decision-making process requires every draft act of legislation to undergo an assessment, which takes the form of an annotated report. This annotation accompanies the draft through the review process to the cabinet. Among other indicators, the annotation addresses budgetary impact, impact on particular target groups and the cost of implementation. In the past, the quality of annotations varied widely depending on the approach taken by the drafters, which range from detailed, evidence-based analysis to a simple pro forma summary of intent. Until recently minimum standards for annotations were not enforced.

With the establishment of the new TAP portal, new regulation regarding the impact assessment of draft legislative acts has also been adopted. This has expanded the list of items to be assessed, and clarifies the initial definition of impact assessment. The annotation in its revised form is now embedded in the TAP portal itself and includes several structured data sets and embedded formulas for calculating the economic and budgetary impact.

In 2021, a report entitled “On the Improvement of the Impact Assessment System” was approved. The report recommends that the State Chancellery, in collaboration with the PKC, the Ministry of Justice, the Saeima Analytical Service, line ministries, and, when necessary, other institutions and experts, revise the existing impact assessment system in order to improve its efficiency, proportionality and transparency.

Citations:
1. Legislative Portal (TAP) (2021) Guidelines for assessing the initial impact of the draft legislation and preparing the assessment report in the legislation portal, Available (In Latvian) at: https://onedrive.live.com/?authkey=%21ANPN8vFW3M61km8&cid=73C0E5B8DEDAD073&id=73C0E5B8DEDAD073%211664&parId=73C0E5B8, Last accessed: 10.01.2022.

2. Cabinet of Ministers (2021) Informative report on the Improvement of the Impact Assessment system, Available (in Latvian) at: http://tap.mk.gov.lv/doc/2020_12/MKinfo_141220_RIA.1074.docx, Last accessed: 10.01.2022.

Does the RIA process ensure participation, transparency and quality evaluation?

10
 9

RIA analyses consistently involve stakeholders by means of consultation or collaboration, results are transparently communicated to the public and assessments are effectively evaluated by an independent body on a regular basis.
 8
 7
 6


The RIA process displays deficiencies with regard to one of the three objectives.
 5
 4
 3


The RIA process displays deficiencies with regard to two of the three objectives.
 2
 1

RIA analyses do not exist or the RIA process fails to achieve any of the three objectives of process quality.
Quality of RIA Process
7
The contents of RIA annotations, the responsibility for evaluation and the mandatory sections to be completed are now regulated by a 2021 regulation called “Procedure for Evaluation of the Initial Impact of a Draft Legislative Act.” Compliance with this regulation is monitored by the State Chancellery rather than by an independent body. The newly established TAP portal helps ensure the transparency of the draft development process.

Citations:
Procedure for Evaluation of the Initial Impact of a Draft Legislative Act (2021) Available (in Latvian) at: https://likumi.lv/ta/id/325945-tiesibu-akta-projekta-sakotnejas-ietekmes-izvertesanas-kartiba, Last accessed: 10.01.2022.

Does the government conduct effective sustainability checks within the framework of RIA?

10
 9

Sustainability checks are an integral part of every RIA; they draw on an exhaustive set of indicators (including social, economic, and environmental aspects of sustainability) and track impacts from the short- to long-term.
 8
 7
 6


Sustainability checks lack one of the three criteria.
 5
 4
 3


Sustainability checks lack two of the three criteria.
 2
 1

Sustainability checks do not exist or lack all three criteria.
Sustainability Check
3
The new impact assessment procedure expands the list of indicators to be assessed. Compared to the previous procedure, it also includes the following aspects: impact on equal opportunities and rights of persons with disabilities; impact on human rights, democratic values and the development of civil society; effect on the diaspora; environmental impact, including climate neutrality; impact on gender equality; social impact, including impact on groups at risk of social exclusion; and impact on the implementation of information society policies.

The need to assess the impact of draft legal acts on the indicators specified within the National Development Plan was retained, and the amount of information to be provided for ex post evaluation was expanded. Furthermore, when assessing the impact of the draft legislation on the economy, the impact on the macroeconomic environment, sectoral competitiveness, the business environment, small and medium-sized enterprises, competition, and employment now must also be reviewed. All these impact assessment topics are included in the new annotation form in a structured data format.

The country’s sustainability agenda is incorporated in the Latvia 2030 strategy. As draft policies are assessed for compatibility with this strategy, sustainability issues may be taken into consideration. The Cross-Sectoral Coordination Centre (PKC) provides input to the drafting of policies, highlighting sustainability issues. The PKC also conducts an assessment of Latvia’s strategic goals, which includes sustainability assessments.

Citations:
Sustainable Development Strategy of Latvia until 2030, Available at: http://www.pkc.gov.lv/sites/default/files/images-legacy/LV2030/LIAS_2030_en.pdf Last accessed: 05.01.2022

To what extent do government ministries regularly evaluate the effectiveness and/or efficiency of public policies and use results of evaluations for the revision of existing policies or development of new policies?

10
 9

Ex post evaluations are carried out for all significant policies and are generally used for the revision of existing policies or the development of new policies.
 8
 7
 6


Ex post evaluations are carried out for most significant policies and are used for the revision of existing policies or the development of new policies.
 5
 4
 3


Ex post evaluations are rarely carried out for significant policies and are rarely used for the revision of existing policies or the development of new policies.
 2
 1

Ex post evaluations are generally not carried out and do not play any relevant role for the revision of existing policies or the development of new policies.
Quality of Ex Post Evaluation
6
Ex post evaluations are carried out in Latvia for development planning documents. The introduction of the TAP portal and the standardized annotation form also affects ex post evaluation, which has been specifically highlighted and supplemented in the new form. Institutions now need to assess whether a piece of draft legislation provides for an ex post evaluation; when it does, it must also specify the results and indicators that will be used to assess the achievement of the objective of the act (or any part of it). The goal here is to link the ex ante and ex post evaluations, as recommended by the OECD.

Citations:
1. Methodology for developing and evaluating the results and performance indicators for ministries and other central state institutions (regulation), Available at: https://likumi.lv/doc.php?id=200935, Last accessed: 10.01.2022.

2. Cabinet of Ministers (2016), Report on Ex-post Evaluation Implementation (in Latvian), Available at: http://tap.mk.gov.lv/lv/mk/tap/?pid=40386136, Last accessed: 10.01.2022.

3. Informative report on the improvement of the impact assessment system (2021) Available (in Latvian) at: (http://tap.mk.gov.lv/mk/tap/?pid=40495849), Last accessed: 10.01.2022.

Societal Consultation

#5

Does the government consult with societal actors in a fair and pluralistic manner?

10
 9

The government always consults with societal actors in a fair and pluralistic manner.
 8
 7
 6


The government in most cases consults with societal actors in a fair and pluralistic manner.
 5
 4
 3


The government does consult with societal actors, but mostly in an unfair and clientelistic manner.
 2
 1

The government rarely consults with any societal actors.
Public Consultation
8
Societal consultation takes place frequently and is diverse in nature. The National Tripartite Cooperation Council (Nacionālā trīspusējās sadarbības padome, NTSP) is a well-established, well-integrated and often-used consultative mechanism that links employers, trade unions, and government.

Since 2005, the Council for the Implementation of the Memorandum of Cooperation between the NGOs and Cabinet of Ministers (Memorandum Council) has provided a key forum for the government and civil society organizations to discuss draft laws and policy documents that concern civil society, and to talk about ways to improve public participation. In 2021, 483 NGOs were signatories of the Memorandum, with eight of them serving as members of the Memorandum Council. The Memorandum Council meets every month, and the meetings are transmitted online.

Despite this, the quality of consultations is in many cases not high. Consultations are often regarded as merely formal, and in fact, offer little opportunity to make an impact on the direction and quality of government policies. NGOs have voiced complaints about the quality of participation on a number of occasions over the last few years. For example, in 2017, an influential group of NGOs called for more transparency and participatory mechanisms in the budget planning process.

However, in its public consultations, the government is rarely successful in achieving an exchange of views that substantially increases the quality of government policies or induces societal actors to support them. Best practices can be found in the Ministry of Agriculture and the Ministry of Environment and Regional Development. Both ministries publicly fund a consultation mechanism with NGOs and have achieved considerable success in securing stakeholder input and support for draft policies. But there is also evidence of the opposite result: In some cases, government consultations with stakeholders have induced societal actors to actively oppose government policies.

A key issue is that very few organizations have the capacity to participate in these processes, as they require good knowledge of governance and legal frameworks, as well as knowledge of the legislative process. The lack of funding and capacity are thus important obstacles to participation. Furthermore, the questions to be addressed in the process of consultation are rarely clearly defined before the draft document is ready.

Citations:
1. State Chancellery (2011-2020), Annual Reports, Available at (in Latvian): https://www.mk.gov.lv/lv/content/gada-publiskie-parskati, Last accessed: 10.01.2022.

2. State Chancellery (2019) Information on Council for Implementation of the Memorandum of Cooperation between NGOs and the Cabinet of Ministers, Available at:https://www.mk.gov.lv/lv/content/informacija-par-nvo-un-ministru-kabineta-sadarbibas-memorandu, Last accessed: 10.01.2022.

Policy Communication

#3

To what extent does the government achieve coherent communication?

10
 9

Ministries are highly successful in aligning their communication with government strategy.
 8
 7
 6


Ministries most of the time are highly successful in aligning their communication with government strategy.
 5
 4
 3


Ministries occasionally issue public statements that contradict the public communication of other ministries or the government strategy.
 2
 1

Strategic communication planning does not exist; individual ministry statements regularly contradict each other. Messages are often not factually consistent with the government’s strategy.
Coherent Communication
8
In the spring of 2020, the State Chancellery established a Strategic Communication Coordination Department with a mandate to implement and promote the development and coordination of strategic communication capabilities in the public administration.

Coordination of messages is ensured in several ways. First, a meeting led by the State Chancellery takes place weekly, with the heads of communication for the structural units of the ministries participating. This addresses the topical issues of the week. Both ministers and ministerial spokespeople have been have been participating since January 2022. Second, a Digital Information Space Security Working Group has been established, which meets with institutions responsible for specific subject areas at least once a quarter under the leadership of the State Chancellery to discuss issues. Third, the State Chancellery compiles and disseminates common messages and talking points after government meetings and Crisis Management Council meetings (for COVID-19). Fourth, the State Chancellery not only coordinates and organizes press conferences after weekly government meetings, but also plans and coordinates the organization of interdepartmental press conferences in cases where planned policies are likely to have significant impact on the daily life of the general population (e.g., COVID-19 lockdowns). And fifth, the State Chancellery chairs the monthly Government Communication Coordination Council, which includes the heads of the ministries’ communication units.

The Strategic Communication Coordination Department of the State Chancellery has also established an information monitoring and analysis system. In 2020-2021, this resulted in the production of more than 480 monitoring reports on topics including COVID-19 and vaccination, the hybrid attack on Belarus at the EU’s borders, misinformation, education, the formation of the state budget, and weekly reports. These included recommended actions, and were distributed to ministries.

During the COVID-19 crisis, the State Chancellery has since March 2020 operated a one-stop website and telephone hotline that provide all current information on COVID-19 issues in Latvian, Russian and English. The “one-stop-shop” principle allows citizens to receive all relevant information in one place, in a coordinated way, instead of conducting individual searches on the websites of each ministry and institution.

Finally, the Strategic Communication Coordination Department conducts regular research on public sentiment and attitudes, including COVID-19 issues. In 2020-2021 a total of 13 studies were conducted (nine of them in 2021). The results are regularly presented to ministerial spokespeople, as well as to the Crisis Management Group (Operational Steering Group or OVG) led by the State Chancellery, which makes decisions on COVID-19 issues in the country. Thus, communication aspects and public attitudes are taken into account in the coordination of issues between ministries, and in policy-planning and decision-making processes more generally.

Citations:
1. Cabinet of Ministers (2020) Regulations of the State Chancellery, Available at: https://www.mk.gov.lv/lv/valsts-kancelejas-reglaments, Last accessed: 10.01.2022.

Implementation

#10

To what extent can the government achieve its own policy objectives?

10
 9

The government can largely implement its own policy objectives.
 8
 7
 6


The government is partly successful in implementing its policy objectives or can implement some of its policy objectives.
 5
 4
 3


The government partly fails to implement its objectives or fails to implement several policy objectives.
 2
 1

The government largely fails to implement its policy objectives.
Government Effectiveness
9
The government has a good track record in achieving its own policy objectives. In issue areas considered by the government as a high priority – examples include economic recovery, euro zone entry criteria, budget reform and fiscal discipline, OECD entry requirements, following MONEYVAL recommendations – government performance can be considered excellent. The government has proven to be particularly efficient in implementing policies that have been recommended by international partners (the European Union, NATO, Council of Europe, and OECD).

However, second-tier policy objectives show mixed success rates. For example, despite the fact that successive government declarations have identified education reform as a policy priority, little demonstrable progress has been made toward fulfilling the outlined policy objectives.

The PKC monitors progress with respect to government-declaration goals on an annual basis, providing a report to the prime minister. The NAP 2020 mid-term evaluation noted that despite some successes in achieving a number of goals set out in the plan (e.g., ICT and e-governance), other goals have not been achieved and would not be achieved before the end of 2020.

Overall, the government’s declarations are mostly successfully fulfilled, but achieving the government’s long-term goals has been more problematic.

Citations:
1. PKC (2017) How does Latvia achieve its development goals? Mid-term evaluation, Available (in Latvian) at: https://www.pkc.gov.lv/sites/default/files/inline-files/NAP2020%20vidusposma%20zinojums%20final_3.pdf, Last accessed: 10.01.2022.

To what extent does the organization of government provide mechanisms to ensure that ministers implement the government’s program?

10
 9

The organization of government successfully provides strong mechanisms for ministers to implement the government’s program.
 8
 7
 6


The organization of government provides some mechanisms for ministers to implement the government’s program.
 5
 4
 3


The organization of government provides weak mechanisms for ministers to implement the government’s program.
 2
 1

The organization of government does not provide any mechanisms for ministers to implement the government’s program.
Ministerial Compliance
9
Organizational devices that encourage ministerial compliance include a public statement of policy intent, a government declaration signed by each minister, a coalition agreement outlining the terms of cooperation between the governing parties, and an informal weekly coalition-council meeting. Additionally, the government office monitors compliance with cabinet decisions, while the PKC monitors the implementation of the government declaration. Both reporting streams enable the prime minister to fully monitor individual ministers’ progress in achieving the government’s program. Nevertheless, disagreements between ministers often become public and can be divisive. In former governments, ministers have disagreed over the EU migrant relocation scheme and tax system reform.

How effectively does the government office/prime minister’s office monitor line ministry activities with regard to implementation?

10
 9

The GO / PMO effectively monitors the implementation activities of all line ministries.
 8
 7
 6


The GO / PMO monitors the implementation activities of most line ministries.
 5
 4
 3


The GO / PMO monitors the implementation activities of some line ministries.
 2
 1

The GO / PMO does not monitor the implementation activities of line ministries.
Monitoring Ministries
8
As far as implementation of the government declaration is concerned, the government office monitors ministry performance in implementing legislation, cabinet decisions and prime-ministerial decisions. A high degree of compliance has been reported in this regard.

Similarly, the PKC planning center monitors how ministries are achieving the policy goals stated in the government declaration and reports to the prime minister. Progress reports are not only a monitoring tool, but also provide substantive input into the prime minister’s annual report to parliament.

However, the recent disarray around COVID-19 management, especially with regard to coordinating vaccination processes, indicates that when the government has new, additional tasks to handle outside its regular functions, no meaningful central monitoring occurs.

How effectively do federal and subnational ministries monitor the activities of bureaucracies/executive agencies with regard to implementation?

10
 9

The ministries effectively monitor the implementation activities of all bureaucracies/executive agencies.
 8
 7
 6


The ministries monitor the implementation activities of most bureaucracies/executive agencies.
 5
 4
 3


The ministries monitor the implementation activities of some bureaucracies/executive agencies.
 2
 1

The ministries do not monitor the implementation activities of bureaucracies/executive agencies.
Monitoring Agencies|Bureaucracies
7
The executive branch is organized hierarchically, with ministries each having a group of subordinate institutions. Some institutions are directly managed by the ministry, while others are managed at arm’s length when there is a need for the autonomous fulfillment of functions.

All institutions are required to prepare annual reports. Beyond the reporting requirement, there is no centralized standard for monitoring subordinate agencies. Ad hoc arrangements prevail, with some ministries setting performance goals and requiring reporting relative to these goals.

To what extent does the central government ensure that tasks delegated to subnational self-governments are adequately funded?

10
 9

The central government enables subnational self-governments to fulfill all their delegated tasks by funding these tasks sufficiently and/or by providing adequate revenue-raising powers.
 8
 7
 6


The central government enables subnational governments to fulfill most of their delegated tasks by funding these tasks sufficiently and/or by providing adequate revenue-raising powers.
 5
 4
 3


The central government sometimes and deliberately shifts unfunded mandates to subnational governments.
 2
 1

The central government often and deliberately shifts unfunded mandates to subnational self-governments.
Task Funding
6
Local governments enjoy a comparatively high degree of autonomy. The local government share of public expenditure was 24.3% in 2015, slightly above the EU average of 24.1%. In 2019, the government approved the 2020 budget with local governments receiving only 19.6% of Latvia’s total tax revenue.

Local governments have autonomous tasks, delegated tasks, and legally mandated tasks. Each type of task is meant to be accompanied by a funding source. In practice, however, funding is not made available for all tasks. The president’s Strategic Advisory Council has described local governments as having a low degree of income autonomy and a relatively high degree of expenditure autonomy.

Nevertheless, local governments suffer from a lack of capacity in financial management. The State Audit Office has repeatedly noted that local governments ignore accounting standards and requirements. In the absence of proper local and national approval procedures for government transactions, violations range from petty issues, such as covering entertainment costs out of the municipal budget, to large-scale fraud, such as a municipal official signing a €200 million bond.

Public sector reform is ongoing. In 2019, the government came to an agreement to reduce the number of municipalities. As of July 2021, that number decreased from 119 to 43. The aim of the reform is to create economically stronger and more highly developed municipalities, and to enable them to attract more investment, ensure sustainability and improve the quality of services to their citizens. However, some municipalities have contended that the revenue they derive from the personal income tax will now decrease as a result.

Citations:
1. The President’s Strategic Advisory Council (2013), Management Improvement Proposals, Available at (in Latvian): http://saeima.lv/documents/63de2ea15d96f4315bf69377a4877d8e9e6b9a6d, Last accessed: 05.01.2022.

2. Freedom House (2016). Nations in Transit: Latvia 2016. Available at: https://freedomhouse.org/report/nations-transit/2016/latvia. Last accessed: 05.01.2022.

3. European Comission (2017), Country Report: Latvia, Available at: https://ec.europa.eu/info/sites/info/files/2017-european-semester-country-report-latvia-en.pdf, Last accessed: 05.01.2022.

4. Re:Baltica (2020) The biggest drop in revenue for the poorest municipalities, Available (in Latvian): https://rebaltica.lv/2020/11/lielakais-ienemumu-kritums-trucigakajam-pasvaldibam/, Last accessed: 05.01.2022.

To what extent does central government ensure that subnational self-governments may use their constitutional scope of discretion with regard to implementation?

10
 9

The central government enables subnational self-governments to make full use of their constitutional scope of discretion with regard to implementation.
 8
 7
 6


Central government policies inadvertently limit the subnational self-governments’ scope of discretion with regard to implementation.
 5
 4
 3


The central government formally respects the constitutional autonomy of subnational self-governments, but de facto narrows their scope of discretion with regard to implementation.
 2
 1

The central government deliberately precludes subnational self-governments from making use of their constitutionally provided implementation autonomy.
Constitutional Discretion
5
Local governments have a constitutional right to autonomy. This right is reinforced by Latvia’s commitments as a signatory of the European Charter of Local Self-Government, which has been upheld by the Constitutional Court. The Ministry of Environment and Regional Development monitors local-government regulations for legal compliance and has the right to strike down regulations deemed to be in violation of legal norms.

The central government has a tendency to overregulate, a practice that may negatively affect the local government’s discretionary authority.

Citations:
1. Latvian Association of Local and Regional Governments, Smart municipalities for the next centenary of Latvia, Available (in Latvian) at: https://www.lps.lv/uploads/docs_module/1_Viedas%20pa%C5%A1vald%C4%ABbas%20-%20n%C4%81kamajai%20Latvijas%20simtgadei.pdf, Last accessed: 05.01.2022.

2. Law on Local Governments, Available at: https://likumi.lv/doc.php?id=57255, Last accessed: 05.01.2022.

To what extent does central government ensure that subnational self-governments realize national standards of public services?

10
 9

Central government effectively ensures that subnational self-governments realize national standards of public services.
 8
 7
 6


Central government largely ensures that subnational self-governments realize national standards of public services.
 5
 4
 3


Central government ensures that subnational self-governments realize national minimum standards of public services.
 2
 1

Central government does not ensure that subnational self-governments realize national standards of public services.
National Standards
6
Autonomous local government functions are subject to laws and regulations emanating from the central government. These regulations delineate common standards and define the scope of local government autonomy. In the past, the president’s Strategic Advisory Council has warned that overregulation is seriously encroaching on local government autonomy. The council has called for a limit to bureaucratization and a reduction in the volume of regulations governing functions that are mandated as autonomous.

The executive has said it would create a new one-stop client-service system across the country, which would centralize the contact point for accessing public (central and local government) services. In 2015, 59 one-stop agencies were launched. In just their first year of operation, they proved to be useful, processing more than 25,000 different types of applications to state and municipal agencies. In 2019, the number of the agencies had reached 76. However, the comparability of data sets between institutions remains a challenge.

Effective provision of public services was one of the driving motivators behind the administrative-territorial reform adopted in 2021, which significantly decreased the number of municipalities, making the process of offering such services more manageable.

Citations:
1. Ministry of Environmental Protection and Regional Development (2019) Progress on implementing the Public 1 1. Service Development Conception (Report), Available at: http://tap.mk.gov.lv/mk/tap/?pid=40473484, Last accessed: 10.01.2022.

2. The President’s Strategic Advisory Council (2013), Management Improvement Proposals, Available at (in Latvian): http://saeima.lv/documents/63de2ea15d96f4315bf69377a4877d8e9e6b9a6d.,Last accessed: 10.01.2022.

3. Regulation Regarding Concept of the Public Service System Development (2013), Available at (in Latvian): http://www.likumi.lv/doc.php?id=254910, Last accessed: 10.01.2022.

4. Saeima (2020) Saeima adopts administrative-territorial reform, Available at: https://www.saeima.lv/en/news/saeima-news/29027-saeima-adopts-administrative-territorial-reform, Last accessed: 10.01.2022.

To what extent is government enforcing regulations in an effective and unbiased way, also against vested interests?

10
 9

Government agencies enforce regulations effectively and without bias.
 8
 7
 6


Government agencies, for the most part, enforce regulations effectively and without bias.
 5
 4
 3


Government agencies enforce regulations, but ineffectively and with bias.
 2
 1

Government agencies enforce regulations ineffectively, inconsistently and with bias.
Regulatory Enforcement
7
When it comes to effective regulatory enforcement in the private sector, there have been concerns regarding bribery, including a few high-profile corruption scandals (e.g., the so-called Oligarchs Case, which involved charges of bribery and money laundering among its other allegations). In addition, there have been tensions around the banking sector and suspicions of “state capture.” These three factors have raised concerns about the state’s ability to take a strong stance. The OECD noted that many of these issues are linked with the fact that Latvia’s financial sector has provided a bridge between the East and West.

Following these scandals, Latvia has made substantial steps to improve the situation, and closely followed recommendations offered by the OECD Working group on Bribery. KNAB, the anti-corruption agency, has been strengthened, with its staff levels stabilized and salaries increased. A court specifically for economic cases was recently established, and the prosecution service was reformed, with a specialized prosecution unit for crimes committed in state service created. In addition, the Whistleblowing Law has been in force since 1 May 2019. This provides a channel to report possible violations in the private and public sectors, and protects whistleblowers from retaliation. Thus, there are channels for citizens to make reports and help enforce regulations, even against vested interests.

Although the effects of these improvements are yet to be fully observed, Latvia has consistently attempted to tackle corruption since gaining independence (e.g., the creation of KNAB, and the development of several national anti-corruption strategies and programs). In terms of implementation and governance, Latvia has received positive reviews in global ranking reports. That said, the Phase 3 report by the OECD (2019) noted that stronger enforcement of the reforms is needed, which should be reflected in an increased conviction rate.

Citations:
1. OECD (2019) Implementing the OECD Anti-Bribery Convention, Phase 3 report: Latvia, Available at: http://www.oecd.org/corruption/anti-bribery/OECD-Latvia-Phase-3-Report-ENG.pdf, Last accessed: 11.01.2022.

2. OECD (2015), Phase 2 Report on Implementing the OECD Anti-bribery Convention in Latvia, Available at:http://www.oecd.org/corruption/anti-bribery/Latvia-Phase-2-Report-ENG.pdf, Last accessed: 11.01.2022.

3. OECD (2017), Latvia: Follow-up to the Phase 2 Report & Recommendations, Available at: https://www.oecd.org/corruption/anti-bribery/Latvia-Phase-2-Written-Follow-up-Report-ENG.pdf, Last accessed: 11.01.2022.

4. Ministry of Justice (2020) Economic Cases Court, Available (in Latvian) at: https://www.tm.gov.lv/lv/ekonomisko-lietu-tiesa-0, Last accessed: 10.01.2022.

5. LSM (2021) Stukans establishes a criminal prosecution service for officials and promises to train professionals in this field, Available (in Latvian) at: https://www.lsm.lv/raksts/zinas/zinu-analize/stukans-izveido-amatpersonu-noziegumu-izmeklesanas-prokuraturu-un-sola-izskolot-sis-jomas-profesionalus.a389254/, Last accessed: 11.01.2022.

Adaptability

#10

To what extent does the government respond to international and supranational developments by adapting domestic government structures?

10
 9

The government has appropriately and effectively adapted domestic government structures to international and supranational developments.
 8
 7
 6


In many cases, the government has adapted domestic government structures to international and supranational developments.
 5
 4
 3


In some cases, the government has adapted domestic government structures to international and supranational developments.
 2
 1

The government has not adapted domestic government structures, no matter how beneficial adaptation might be.
Domestic Adaptability
9
Latvia has adapted domestic government structures to fulfill the requirements of EU membership, revising policy-planning and decision-making processes. During the 2013 – 2015 period, Latvia revised its domestic structures to comply with the demands of the 2015 EU presidency. Beginning in 2014, Latvia began adapting to the requirements associated with OECD membership. In 2016, Latvia joined the OECD.

In order to ensure efficient decision-making and meet the obligations of IMF and EU loan agreements, Latvia created a reform-management group for coordination on major policy reforms. In 2012, this included changes to the biofuels support system, reforms in the civil service’s human-resources management, tax-policy changes, and reforms in the management of state enterprises. The group proved to be a useful forum for the consolidation of support across sectors for major policy changes and structural reforms. The inclusion of non-governmental actors in the group serves to facilitate support for upcoming policy changes.

To what extent is the government able to collaborate effectively with international efforts to foster global public goods?

10
 9

The government can take a leading role in shaping and implementing collective efforts to provide global public goods. It is able to ensure coherence in national policies affecting progress.
 8
 7
 6


The government is largely able to shape and implement collective efforts to provide global public goods. Existing processes enabling the government to ensure coherence in national policies affecting progress are, for the most part, effective.
 5
 4
 3


The government is partially able to shape and implement collective efforts to provide global public goods. Processes designed to ensure coherence in national policies affecting progress show deficiencies.
 2
 1

The government does not have sufficient institutional capacities to shape and implement collective efforts to provide global public goods. It does not have effective processes to ensure coherence in national policies affecting progress.
International Coordination
6
Latvia largely contributes to international actions by participating in the development of EU policy positions and by integrating Sustainable Development Goals (SDGs) into its own policies.

Institutional arrangements for formulating Latvia’s positions on issues before the European Union are formalized. The system is managed by the Ministry of Foreign Affairs, with particular sectoral ministries developing the substance of Latvia’s various positions. The process requires that NGOs be consulted during the early policy-development phase. In practice, ministries implement this requirement to varying degrees. NGOs themselves often lack the capacity (human resources, financial resources, time) to engage substantively with the ministries on an accelerated calendar, although this could to some extent be addressed by improving communication and by sharing the positions in a timelier manner.

Draft positions are coordinated across ministries, and approved in some cases by the sectoral minister, and in other cases by the Council of Ministers. Issues deemed to have a significant impact on Latvia’s national interests are presented to the parliament’s European Affairs Committee, whose decision is binding. The committee considers approximately 500 national positions per year.

Latvia also contributes to the global Agenda 2030 by integrating the SDGs into the national development planning system. Policy documents drawn up in 2017 made reference to the SDGs, but the new National Development Plan 2021 – 2027 does not include any detailed references. Moreover, the National Development Council had its the last meeting in February 2020; thus, there is currently no institutional system at the highest level engaging in ongoing review of the country’s contribution to global development. Nevertheless, in 2022, Latvia plans to submit its National Voluntary Review on the implementation of the SDG to the U.N. High-level Political Forum on Sustainable Development (HLPF), and an ad hoc open process is going to be established. Overall, the weak institutional and policy framework with regard to SDG accountability translates into low policy coherence in the area of global development, at least in comparison to EU coordination, which is rather well established.

Organizational Reform

#5

To what extent do actors within the government monitor whether institutional arrangements of governing are appropriate?

10
 9

The institutional arrangements of governing are monitored regularly and effectively.
 8
 7
 6


The institutional arrangements of governing are monitored regularly.
 5
 4
 3


The institutional arrangements of governing are selectively and sporadically monitored.
 2
 1

There is no monitoring.
Self-monitoring
8
The government office has an annual monitoring procedure under which cabinet decision-making processes are reviewed. This results in frequent improvements to the process. In 2013, major revisions to the regulatory impact assessment system were made, along with the introduction of a green-paper system that will move public consultations on new policy initiatives to an earlier phase of the policy-planning process.

The management of relations with parliament, governing parties, and ministries is not regularly reviewed. This is considered by civil servants to be the purview of politicians and therefore not an appropriate topic for initiatives emanating from the civil service level.

Research on how to improve governance is commissioned sporadically. The last report of this kind was commissioned in 2015, focusing on strengthening human resource policies within the government’s core. However, it had no appreciable impact.

Citations:
1. PKC (2015) Report on the Center of Government in Latvia, its Strengthening and the Implemented Human Resource Policy, Available (in Latvian) at: http://petijumi.mk.gov.lv/node/2797, Last accessed: 10.01.2022.

To what extent does the government improve its strategic capacity by changing the institutional arrangements of governing?

10
 9

The government improves its strategic capacity considerably by changing its institutional arrangements.
 8
 7
 6


The government improves its strategic capacity by changing its institutional arrangements.
 5
 4
 3


The government does not improve its strategic capacity by changing its institutional arrangements.
 2
 1

The government loses strategic capacity by changing its institutional arrangements.
Institutional Reform
8
The regular review of decision-making procedures results in frequent reforms aimed at improving the system. Changes in institutional arrangements, such as the establishment of the PKC planning center in 2010, have significantly improved the government’s strategic capacity and ability to undertake long-term strategic planning. In 2023, the PKC will be merged into the State Chancellery, again with the goal of improving capacities.

Citations:
1. LSM (2021) Kariņš instructs to add the Interdepartmental Coordination Center to the State Chancellery from 2023, Available (in Latvian) at: https://www.lsm.lv/raksts/zinas/latvija/karins-uzdod-no-2023-gada-parresoru-koordinacijas-centru-pievienot-valsts-kancelejai.a432958/, Last accessed: 10.01.2022.
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