SGI 2024 | 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.

Competitive global actor

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.

Tax strengths, innovation weaknesses

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.

Adaptable labor market

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.

Need for investigative journalism

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.

Educational reforms underway

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.

Need for green
energy investment

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.

Balance between progress and public trust

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.

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