SGI 2022 | Latvia | Executive Summary

Executive Summary

Recent Governments Experts

SGI experts on Latvia

Iveta Reinholde

Iveta Reinholde is the professor of public administration at the Department of Political Sciences of the University of Latvia. She has considerable experience in conducting policy evaluations, working in multi-national teams and international setting on such areas as public administration reform, internal audit, human security and public services. In addition, fields of her research include EU public policy, public policy evaluation and analysis, public sector organizations and organisation theory. She is experienced in advising and designing policy recommendations for national and local governments as she is a head of Public Council of National Audit Office. Since 2014, she is an independent expert for the Congress of Local and Regional Authorities, Council of Europe. In 2019, she has been awarded with Alena Brunovska Award for Teaching Excellence in Public Administration (NISPAcee).

Visvaldis Valtenbergs

Visvaldis Valtenbergs, Associate Professor in the Faculty of Economics and Social Sciences at the University of Latvia, specializes in the areas of political participation, deliberative democracy, and technopolitics. His research focuses on understanding the dynamics of political engagement and the deliberative processes within democratic systems, particularly examining the transformative impact of information and communication technologies (ICTs) and emerging technologies on politics and governance. From 2017 to 2021, he served as a researcher in the Analytical Service of the Parliament of Latvia, where he contributed to the analysis and development of evidence-based policies. He is the scientific leader of the Project “Innovative and Inclusive Governance for the Promotion of Participation, Trust, and Communication.” Additionally, he has been a member of the Management Committee for the EU COST actions on deliberative democracy where he focuses on systematizing, conceptualizing, and enhancing theoretical and empirical knowledge about the impact of deliberative discussions on contemporary decision-making.

Daunis Auers (Coordinator)

Dr Daunis Auers is Associate Professor of Comparative Politics at the University of Latvia. He defended his PhD at University College London (UCL) and his MSc. at the London School of Economics (LSE). He has been a Fulbright Scholar at the University of California-Berkeley (2005-2006) and a Baltic-American Freedom Foundation Scholar at Wayne State University in Detroit (2014). He has widely published on Baltic and European politics. His most recent book – The Comparative Government and Politics of the Baltic States: Estonia, Latvia and Lithuania in the 21st Century – was published by Palgrave Macmillan in 2015.

Since the COVID-19 pandemic, Latvia has experienced significant developments across various sectors, positioning itself as a competitive player on the global stage while addressing substantial internal challenges.

Latvia has achieved significant recognition for its economic competitiveness, ranking second in the International Tax Competitiveness Index 2023. However, in innovation, it is labeled an “emerging innovator,” according to the European Innovation Scoreboard 2023. The OECD’s assessment of Latvia’s innovation framework highlighted weaknesses, particularly in R&D investment compared to GDP, signaling a need for more robust innovation strategies to drive further development.

The post-COVID era has seen a widespread adoption of remote work, highlighting the importance of employee time management skills and organizational policies in maintaining work-life balance. The government has prioritized adaptability in the labor market and higher productivity, supported by a comprehensive training network that addresses current and future labor market needs, particularly in digital and ICT skills.

In response to geopolitical conditions and information security concerns, Latvia has banned most TV channels broadcasting from Russia due to alleged violations of Latvian laws. However, there is a recognized need for enhanced capacity in investigative journalism, particularly in business and economic issues, to ensure media integrity.

Significant reforms have been announced and are underway, including plans to unify public media under a new financing model to bolster media independence. Educational reforms, such as a new curriculum to enhance Latvian language proficiency and ongoing competency-based approaches, reflect a commitment to improving education. Institutional changes – including the integration of the financial and capital market supervisory authority into the Bank of Latvia and the establishment of the Ministry on Climate and Energy – demonstrate proactive responses to emerging challenges.

Latvia’s environmental performance has been commendable, ranking 15th in the world according to the Environmental Performance Index 2023. However, there is a need for increased investment in green energy and more targeted climate change mitigation efforts. Regarding civil rights, Latvia’s legal and constitutional framework robustly upholds civil liberties, with restrictions on freedom of assembly during COVID-19 fully lifted since 2022.

In summary, Latvia showcases a commitment to economic competitiveness, innovation, and environmental sustainability while also addressing challenges in media integrity, education, and governance. The government’s proactive reforms and institutional changes reflect a readiness to tackle emerging issues, although trust in government remains a long-term concern. As Latvia navigates these developments, maintaining a balance between progress and public trust will be essential for its continued growth and stability

After the COVID-19 pandemic, Latvia ranked 2nd in the International Tax Competitiveness Index 2023. However, the European Innovation Scoreboard 2023 labeled Latvia as an “emerging innovator.” In 2023, the OECD assessed Latvia’s innovation framework as weak, noting minimal government and business investments in R&D relative to GDP. Despite Latvia’s strong performance and adaptability to global conditions, further innovations are needed for continued development.

The post-COVID era has accelerated widespread remote work. Maintaining a work-life balance now largely depends on employees’ time management skills and organizational policies. At the governmental level, the focus has been on labor market adaptability and higher productivity. The comprehensive training network has responded to both current and future training needs, such as digital and ICT skills.

In response to geopolitical conditions and the need to secure the information space, most TV channels broadcasting from Russia, along with Russian propaganda, have been banned for violating Latvian laws. Meanwhile, the media needs more capacity for investigative journalism, especially in business and economic issues. Several reforms announced in 2022 and 2023 are currently being implemented. The government plans to merge public TV and radio into a unified public broadcasting company with a new financing model to strengthen media independence.

A new Latvian training curriculum has been introduced to enhance language proficiency, particularly in primary and secondary education. Ongoing education reforms include the closure of schools and the implementation of a competency-based curriculum. Education and healthcare are government priorities, with additional budget allocations planned for 2024. While a core set of education and healthcare services is available to the entire population, satisfaction with their quality and availability could be much higher.

On January 1, 2023, the financial and capital market supervisory authority was integrated into the Bank of Latvia, strengthening the central bank’s role in these markets. The new Ministry of Climate and Energy was established in 2023, and the Cross-Sectoral Coordination Centre was integrated into the State Chancellery in March. These institutional changes reflect political aspirations to address upcoming challenges, with the strategic and policy-planning capacity remaining solid.

In the Environmental Performance Index (EPI) 2023, Latvia ranks 15th globally, showing progress in achieving environmental goals. However, Latvia needs to increase investment in green energy and design more sector-driven climate change mitigation activities. Latvia’s legal and constitutional framework robustly upholds civil rights, with the executive and judiciary committed to democratic principles. All restrictions on freedom of assembly imposed during COVID-19 have been fully lifted since 2022.

Overall, Latvia demonstrates a commitment to legal and political integrity mechanisms, providing some disincentives for public officials to abuse their positions. However, the effectiveness of these mechanisms in practice can vary. Trust in government remains low in the long term, regardless of which political parties are in power or what reforms the government implements.

Citations:

Tax Foundation. 2023. “International Tax Competitiveness Index 2023.” https://taxfoundation.org/research/all/global/2023-international-tax-competitiveness-index/
European Commission. 2023. “European Innovation Scoreboard 2023. Country profile: Latvia.” https://ec.europa.eu/assets/rtd/eis/2023/ec_rtd_eis-country-profile-lv.pdf
OECD. 2023. “Health at a Glance: Latvia.” https://www.oecd.org/latvia/health-at-a-glance-Latvia-EN.pdf
Wolf, M. J., Emerson, J. W., Esty, D. C., de Sherbinin, A., Wendling, Z. A., et al. 2022. 2022 Environmental Performance Index. New Haven: Yale Center for Environmental Law & Policy. https://epi.yale.edu/epi-results/2022/component/epi