Latvia

   

Coordination

#6
Key Findings
Latvia performs well in international comparison (rank 6) with regard to coordination.

The State Chancellery in Latvia plays a key role in coordinating policy proposals, preparing cabinet meetings, and reviewing legislative drafts. Its role in policy formulation and inter-sectoral coordination has recently been increased.

The prime minister can also establish thematic committees to handle cross-cutting issues, and interministerial collaborations are used to address key policy areas. The parties of the governing coalition hold meetings to coordinate policies and other issues. Ministries also create formal and informal working groups on specific issues.

National minimum standards are established through laws and service standards, with oversight provided by ministries. Local authorities have some flexibility in implementing these standards, leading to variation in public service quality across regions. There are no financial sanctions for noncompliance, but ministries can dismiss local officials deemed noncompliant.

Quality of Horizontal Coordination

#4

To what extent do established coordination mechanisms between the government’s office and line ministries effectively enhance policy coherence?

10
 9

Functional coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are in place.
 8
 7
 6


Largely functional coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are in place.
 5
 4
 3


Coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are only somewhat functional.
 2
 1

Coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are not at all functional.
Effective Coordination Mechanisms of the GO|PMO
8
The State Chancellery plays a crucial role in coordinating policy proposals from various line ministries. This includes the substantive, legal, and technical preparation of cabinet meetings, as well as the review and legal analysis of policy-planning documents, legislative drafts, and reports submitted to the cabinet. Additionally, the Chancellery provides recommendations on the future direction of these projects (Valsts Kanceleja, 2023).

In 2022, the State Chancellery’s primary role was to support the prime minister and the Cabinet of Ministers substantively and organizationally. There were 67 cabinet meetings, typically held weekly on Tuesdays in a hybrid format. Members of the cabinet were present in person, while state secretaries and experts joined remotely. Additionally, the prime minister convened extraordinary meetings to address urgent matters, conducted in person or through polls (Valsts Kanceleja, 2023).

Key measures introduced in 2022 to improve interministerial coordination and policy development include an Innovation Laboratory, training in innovation, and integrating the Cross-Sectoral Coordination Centre into the State Chancellery. Efforts also focus on digital transformation, such as the TAP portal for efficient government operations, and reforms in the remuneration system, including new job classifications and salary scales. Furthermore, communication and digital skills in public administration are being enhanced, exemplified by the introduction of Zinta – the virtual assistant for public services (Valsts kanceleja, 2023).

In 2022, the State Chancellery of Latvia managed 46 regular and 21 extraordinary cabinet meetings, with 12 organized through polls. A total of 3,084 issues were discussed, with 1,745 as main agenda items and 1,339 as additional. There were 255 document evaluations from courts and other institutions requiring cabinet opinions. The prime minister received 106 recommendations on legislative direction, and 21 opinions were prepared on ministry-submitted legislative drafts. The State Chancellery also legally and editorially processed 2,401 legislative drafts. Additionally, 5,924 documents were reviewed, with 1,081 tasks assigned to the cabinet (Valsts kanceleja, 2023).
As mandated by the Cabinet of Ministers regulations, interministerial coordination groups must report their progress regularly. This includes submitting signed minutes from coordination group meetings to the involved ministries and directly to the Prime Minister’s Office. This process ensures a formal and documented line of communication and accountability.

The prime minister may, by decree, establish a thematic committee of the Cabinet of Ministers to ensure systematic and planned work in a specific area and to coordinate and address various cross-cutting issues. These include the Thematic Committee on Digital Modernization, the Thematic Committee on European Union Funds, the Thematic Committee on Strategy Management, and the Thematic Committee on Energy, Environment, and Climate.

State secretary meetings are convened to address specific types of projects and issues. These include projects that lack agreement in the coordination process (excluding those needing political resolution or conceptual decisions), projects not refined as per earlier State secretary meeting decisions, national position project proposals, or related issues directed by the Senior Officials Meeting on EU Affairs, and official viewpoints of the Republic of Latvia for advocacy in international organizations, especially when there is a lack of consensus on ministry or institutional responsibilities. These weekly meetings, typically held on Thursdays and led by the director of the State Chancellery, also discuss other pertinent matters for state administration. The director of the State Chancellery and the state secretaries participate with voting rights.

However, there is no clear information about whether there are regular meetings between the GO/PMO, during which they receive briefings from line ministries on new developments that may impact policy proposal preparations, despite the official meeting of the Cabinet of Ministers, the cooperation meeting of parties forming the government, and state secretary meetings.

The number of meetings held and documents produced demonstrates an active and systematic approach to coordinating issues on the agenda. Additionally, the regularity of standard and poll-based meetings indicates effective ongoing communication and coordination between the GO/PMO and line ministries, which is essential for aligning policy proposals with governmental priorities.

Citations:
Valsts kanceleja. 2023. “Gada pārskats 2022. gads.” https://www.mk.gov.lv/lv/media/16278/download?attachment
Ministru kabinets. 2021. Ministru kabineta rīkojums Nr. 437 Par starpministriju darba grupas izveidi klimata politikas koordinācijai. https://likumi.lv/ta/id/324318-par-starpministriju-darba-grupas-izveidi-klimata-politikas-koordinacijai

To what extent are there positive (formalized) forms of coordination across ministries that aim to enhance policy coherence?

10
 9

Interministerial coordination mechanisms targeting policy coherence provide incentives for identifying synergies and opportunities.
 8
 7
 6


Interministerial coordination mechanisms targeting policy coherence sometimes provide incentives for identifying synergies and opportunities.
 5
 4
 3


Interministerial coordination mechanisms targeting policy coherence rarely provide incentives for identifying synergies and opportunities.
 2
 1

There are no interministerial coordination mechanisms targeting policy coherence that provide incentives for identifying synergies and opportunities.
Effective Coordination Mechanisms within the Ministerial Bureaucracy
7
In March 2023 the State Chancellery absorbed the Cross-Sectoral Coordination Center, unifying essential functions like long-term policy development, modernization of public administration, and inter-sectoral coordination under a single team. The reorganization aims to reinforce the State Chancellery’s role as a pivotal government hub, bolstering its analytical power to aid the prime minister and the government in policy formulation, design and implementation.

Modifications to Cabinet Regulation No 606 laid the groundwork for thematic cabinet committees. Established by a prime minister’s decree, the committees will focus on specific areas and predefined action plans, necessitating collaborative efforts from various line ministries. The prime minister or an appointed minister will lead these committees, comprising other ministers or officials. The committees, set to convene on Wednesdays, will deliberate on both agreed and non-agreed draft legislation, potentially proposing new drafts based on their decisions.

Presently, three thematic committees are dedicated to Digital Modernization, Strategic Management, and Energy, Environment, and Climate.

A webpage, the TAP portal, was launched in autumn 2021 and implemented across the government starting Sept. 9, 2021. It has digitalized the cabinet’s operations, including task assignments, legislative drafting, approval, and electronic signatures. Ministers can remotely participate in cabinet meetings, submit drafts, vote, and sign documents from any location with internet access. The portal serves as a comprehensive platform to track the progress of projects, from public engagement to cabinet adoption, and facilitates public participation in policymaking. It has significantly automated processes, reducing manual tasks in the line ministries. Over 800 projects have been directed to public involvement through the portal (Valsts Kanceleja, 2023).

In 2022, the “Development of a Single Service Center for Public Administration in Latvia” project was launched to provide a digitalized, standardized, and more efficiently managed system for public administration accounting and human resource management. The Single Service Center will be the new agency operating on standardized processes, with the necessary infrastructure and information system solutions to provide accounting and human resources management services for public administration.

The TAP portal offers both public users and bureaucrats access to view the tasks assigned to various ministries. It serves as a platform where they can prepare and review opinions from other ministries on draft laws or other documents that necessitate agreement from multiple ministries. This feature enhances transparency and collaboration across different governmental departments.

The timeframe given to ministries for providing opinions on draft laws or other significant documents is often too short, making it challenging for them to comply within the set deadlines. This time constraint can negatively impact the thoroughness and quality of the feedback or opinions provided by the ministries.

Latvia’s policy-planning system is well established, limiting individual ministries’ ability to push through initiatives without debate with other ministries. All new policy initiatives are discussed within the government, even if these debates are brief.

In governmental operations, various interministerial collaborations have been established to address critical areas such as enhancing human capital for the labor market and coordinating climate policies. These collaborative efforts are crucial for cohesive and effective policy development and implementation. Additionally, there is provision for online participation in thematic committees of the Cabinet of Ministers, allowing for broader and more flexible involvement and facilitating easier access and contribution to governmental discussions and decision-making processes.

There are different formats for cooperation, and the legislative framework is designed to promote collaboration and joint problem-solving. However, policy coordination within bureaucracies is typically performed within formal boundaries and is effective for well-known issues. Coordination challenges persist, particularly in preparing bureaucracies to handle complex and “wicked” problems. Additionally, there are no incentives such as job rotations or job-sharing across ministries to encourage active information exchange.

Citations:
Ministru kabinets. 2023. “Ministru kabineta tematiskās komitejas.” https://www.mk.gov.lv/lv/ministru-kabineta-tematiskas-komitejas
Valsts kanceleja. 2023. “Gada pārskats 2022. gads.” https://www.mk.gov.lv/lv/media/16278/download?attachment
Ekonomikas ministrija. 2024. “Cilvēkkapitāla attīstības padome konceptuāli atbalsta EM piedāvāto pārvaldības modeli efektīvākai starpministriju sadarbībai.” https://lvportals.lv/dienaskartiba/359357-cilvekkapitala-attistibas-padome-konceptuali-atbalsta-em-piedavato-parvaldibas-modeli-efektivakai-starpministriju-sadarbibai-2024
Ministru kabinets. 2021. Ministru kabineta rīkojums Nr. 437 Par starpministriju darba grupas izveidi klimata politikas koordinācijai. https://likumi.lv/ta/id/324318-par-starpministriju-darba-grupas-izveidi-klimata-politikas-koordinacijai
Digitālās modernizācijas tematiskā komiteja. 2023. Digitālās modernizācijas tematiskās komitejas sēdes protokols. https://www.mk.gov.lv/lv/media/17625/download?attachment

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

10
 9

Informal coordination mechanisms complement formal mechanisms of interministerial coordination.
 8
 7
 6


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


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

Informal coordination mechanisms undermine formal mechanisms of interministerial coordination.
Complementary Informal Coordination
9
In Latvia, the effectiveness of informal coordination mechanisms in complementing formal interministerial coordination depends on the frequency and regularity of informal meetings, as well as their impact on formal coordination efforts.

The political parties forming the government meet in cooperation meetings (previously known as Coalition Council). Cooperation meetings are not regulated by law but are based on a mutual agreement between the political parties. The Coalition Cooperation Agreement, a political agreement, articulates and defines the basic principles of cooperation. Currently, cooperation meetings are held weekly on Mondays. Between the beginning of 2022 and the end of 2023, approximately 130 cooperation meetings have been held (Ministru kabinets, 2023).

The government led by Evika Siliņa has a cooperation agreement emphasizing the need to enhance the functionality and professionalism of the Cabinet of Ministers. This agreement includes the formation of cabinet committees and requires the involvement of ministers or parliamentary secretaries from pertinent ministries in thematic committees organized by the prime minister (14. Saeimas frakciju sadarbības līgums, 2023). This structure ensures practical interministerial cooperation and streamlined decision-making throughout the 14th Saeima. Thus, this applies to the coordination between the GO/PMO and the line ministries, as well as within the ministerial bureaucracy.

In addition, Latvia has a standard practice of organizing formal and informal working groups to discuss issues among ministries.

Citations:
Ministru kabinets. 2023. “Notikumu kalendārs.” https://www.mk.gov.lv/lv/notikumu-kalendars?title=Vald%C4%ABbu%20veidojo%C5%A1o%20partiju%20Sadarb%C4%ABbas%20san%C4%81ksme&page=13
Latvijas Republikas Ministru kabineta veidojošo 14. Saeimas frakciju sadarbības līgums. 2023. https://static.lsm.lv/documents/1sq.pdf

Quality of Vertical Coordination

#10

To what extent does central government ensure that subnational self-governments meet national (minimum) standards in delivering public services?

10
 9

The central government effectively ensures that subnational self-governments successfully meet national standards for public service delivery.
 8
 7
 6


Most of the time, the central government ensures that subnational self-governments successfully meet national standards for public service delivery.
 5
 4
 3


The central government rarely ensures that subnational self-governments successfully meet national minimum standards for public service delivery.
 2
 1

The central government does nothing to ensure that subnational self-governments successfully meet national standards for public service delivery.
Effectively Setting and Monitoring National (Minimum) Standards
7
Nationwide minimum standards for all critical areas are established through national laws and service standards, with guidelines for measuring client satisfaction with public services developed in 2019.

The Public Utilities Regulatory Commission, an independent state body, monitors the activities of public service providers and market development in Latvia. It ensures that citizens receive uninterrupted, reliable, high-quality public services at economically reasonable prices. The commission oversees eight sectors: natural gas, electricity, heat, water, electronic communications, postal services, packaging deposits, and municipal waste disposal.

In 2020, the Cabinet of Ministers accepted a new medium-term plan, the “Service Environment Improvement Plan 2020 – 2023.” This plan aims to modernize public services and public administration, focusing on user-oriented, proactive, and efficient service delivery. It aligns with government priorities for structural reforms and modern governance. The plan envisions accessible, supportive, and personalized public services utilizing modern technologies and innovative solutions. Its goals include providing innovative and efficiently organized public services, shifting from reactive to proactive service, focusing on citizens’ and businesses’ needs, integrating services at regional and European levels, and moving toward primarily digital service delivery. However, an ex post assessment of the plan’s impacts has not yet been conducted.

The State Audit Office, which audits local authorities, prepared a handbook in 2023 summarizing its recommendations and key findings regarding public service delivery, including advice on how local governments can ensure minimum standards in public service provision.

The central government, through various ministries, oversees compliance with minimum standards. For example, in 2021, the Ministry of Welfare reported on efforts to develop a unified approach for social services in municipalities, aiming to ensure minimum standards across Latvia. Typically, each ministry oversees standards within its specific area, while local authorities have broad responsibilities, allowing them to set and implement varying quality and minimum service standards with some flexibility. This decentralized approach indicates that while there are efforts for uniformity at the national level, local implementation varies. Nevertheless, there are many cooperative intergovernmental bodies.

There are no financial sanctions for noncompliance, but there is financial accountability. The central government may dismiss those responsible for not ensuring compliance with minimum standards. For example, the municipality of Rēzekne city is facing a severe financial crisis, with a shortfall of several million euros for 2023 expenses. In response, the municipality prepared a long-term financial improvement plan. However, upon evaluation, the Ministry of Finance remained unconvinced that the municipality could meet its obligations to creditors. Consequently, the minister for environmental protection and regional development dismissed the mayor.

Subnational governments in Latvia use key performance indicators (KPIs) to varying extents to implement reforms and comply with minimum standards. Studies and proposals have highlighted the importance of collecting and compiling data in public administration. Although current data collection practices have evolved, they have not always been a priority during reforms, resulting in fragmented or inconsistent practices. There is an awareness of the need for effective data use and KPIs in subnational governance, but practical implementation and consistency across various regions still need improvement.

Citations:
Sabiedrisko pakalpojumu regulēšanas komisija. 2023. “Gada pārskats 2022.” https://www.sprk.gov.lv/sites/default/files/editor/SPRK_gada_parskats_2022_.pdf
Ministru kabinets. 2020. “Par pakalpojumu vides pilnveides plānu 2020.-2023. gadam.” https://www.vestnesis.lv/op/2020/27.3
Valsts kontrole. 2023. “Pašvaldību rokasgrāmata.” https://www.lrvk.gov.lv/uploads/files/Dokumenti/Par%20mums/Strat%C4%93%C4%A3ija/Pasvaldibu_rokasgramata_01_12_2023.pdf
Labklājības ministrija. 2021. “Informatīvais ziņojums par vienmērīgu sociālo pakalpojumu tīkla attīstību pašvaldībās un vienotas pieejas veidošanu sociālo pakalpojumu nodrošināšanā iedzīvotājiem.” https://tapportals.mk.gov.lv/legal_acts/8d83ec55-047f-4f8c-ab7d-7bb181cd67db
Vides aizsardzības un reģionālās attīstības ministrija. 2023. “VARAM Minister I. Bērziņa No Amata Atstādina Rēzeknes Valstspilsētas Domes Priekšsēdētāju.” https://www.varam.gov.lv/lv/jaunums/varam-ministre-i-berzina-no-amata-atstadina-rezeknes-valstspilsetas-domes-priekssedetaju
Konsorts. 2016. “Zinātniskais pētījums – Vietējās pašvaldības vadīšanai nepieciešamie statistikas rādītāji.” https://blis.lps.lv/index.php/component/lpsmedia/?task=file.download&id=107

To what extent do national policymakers effectively collaborate with regional and local governments to improve the delivery of public services?

10
 9

National policymakers work effectively with regional and local governments to improve the delivery of public services.
 8
 7
 6


In general, national policymakers work effectively with regional and local governments to improve the delivery of public services.
 5
 4
 3


National policymakers rarely work effectively with regional and local governments to improve the delivery of public services.
 2
 1

There is no effective multilevel cooperation between the central and subnational governments.
Effective Multilevel Cooperation
7
Long-standing cooperation exists between the Cabinet of Ministers and the Latvian Association of Local Government (LPS). The LPS, an organization that voluntarily unites local governments in Latvia, was established in December 1991. Representing over half of all local municipalities, the LPS is authorized to negotiate with the Cabinet of Ministers on behalf of these local governments. The Cabinet of Ministers and the LPS agree annually on a share of budgetary transfers to local authorities, as all taxes are centrally collected. Representatives from the LPS participate in Cabinet of Ministers meetings and discussions. Since the LPS is considered a social partner for the government, it provides opinions on draft laws, draft regulations, and white papers.

There are five planning regions. The Councils of Planning Regions are intended to serve as crucial coordinators at the regional level. However, these planning regions lack genuine functions and were originally created to coordinate the work of municipalities prior to the administrative-territorial reforms of 2021. Despite the municipal mergers, the status and functions of the planning regions remain unchanged, and their current role in the multilevel governance system is unclear.

The Latvian Association of Municipalities (LPS) and the Latvian Association of Cities (LLPA) are key organizations ensuring multilevel coordination. Meanwhile, municipalities around Riga and the capital city formed an NGO, “Riga Metropolitan Society” – representing the interests of municipalities that comprise almost half of the Latvian population. Thus, each association brings municipal intergovernmental coordination into various arrangements, combining formal and informal approaches.

There has been formal and informal intergovernmental interaction. For example, the prime minister participated in the Latvian Association of Local and Regional Governments meeting. On October 31, Prime Minister Evika Siliņa and Gints Kaminskis, head of the Latvian Association of Local and Regional Governments, signed an agreement and protocol on differences regarding the 2024 budget and the fiscal framework for the next three years. This step signifies the government and local authorities’ commitment to promoting municipalities’ development and financial stability in the coming years (Užule 2023).

The Latvian Association of Local and Regional Governments also meets with ministers to discuss policy changes affecting local authorities, their tasks, and the people who live there. Since the end of November, the Latvian Association of Local and Regional Governments has met with the Minister for Climate Action and Energy, the Minister for Agriculture, the Minister for Health, and the Minister for Transport (Latvijas Pašvaldību Savienība, 2024).

Civil servants in local government do not express dissatisfaction with being given token opportunities to participate in decision-making processes at the central government level.

Citations:
Latvijas Pašvaldību savienība. “In Latvian.” https://www.lps.lv/lv
Finanšu ministrija. 2023. “Ministru kabineta un Latvijas Pašvaldību savienības vienošanās un domstarpību protokoli.” https://www.fm.gov.lv/lv/ministru-kabineta-un-latvijas-pasvaldibu-savienibas-vienosanas-un-domstarpibu-protokoli
Ministru kabinets. 2023. “Latvijas Pašvaldību savienības domes sēde.” https://www.mk.gov.lv/lv/notikums/latvijas-pasvaldibu-savienibas-domes-sede-2?date=0
Užule, L. 2023. “Ministru kabinets un LPS vienojas veicināt pašvaldību attīstību un finanšu stabilitāti.” https://www.lps.lv/lv/zinas/lps/7904-ministru-kabinets-un-lps-vienojas-veicinat-pasvaldibu-attistibu-un-finansu-stabilitati
Latvijas pašvaldību savienība. Ziņas. https://www.lps.lv/lv/zinas/lps/
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