Latvia

Latvia falls into the upper-middle ranks internationally (rank 12) in the category of vertical accountability.

Electoral registration procedures are transparent and fair. The Central Election Commission oversees national and local elections, while the Corruption Prevention and Combating Bureau monitors party funding and imposes penalties for violations. All Latvian citizens over 18 can vote, though approximately 10% of the population are noncitizens, and cannot vote.

Latvia’s political landscape is divided along ethnic and linguistic lines, with Latvian and Russian-speaking communities often supporting different parties. Political parties tend to have few members, and often focus on broad issues to attract voters.

Although governing coalitions often include ideologically diverse parties, which are able to cooperate within the government, a strong division between the governing coalition and the opposition is typical. The Freedom of Information Act allows residents to request government information. Citizens can appeal government decisions in administrative courts.

Latvia falls into the sample’s upper-middle ranks (rank 9) in the category of diagonal accountability.

The media operate independently. Journalists are able to investigate and hold politicians accountable. The legal framework supports press freedom, ensuring the confidentiality of sources and access to public information. There is no censorship of digital, print or broadcast media.

The government is developing a new public-media financing model to enhance the system’s independence. Most major media outlets have shifted online. The government bans TV channels from countries such as Russia that threaten another country’s territorial integrity.

Assembly rights are well protected. Key labor and capital groups regularly engage in dialogue with the government, and help shape policy. The influence of social welfare and environmental organizations varies widely.

In the category of horizontal accountability, Latvia falls into the sample’s middle ranks (rank 13).

The State Audit operates independently, conducting financial, compliance and performance audits of executive and local authorities. The Data State Inspectorate is independent, and is tasked with protecting fundamental human rights and freedoms in the area of data protection.

The judiciary is regarded as independent. The government usually complies with its rulings. The country generally upholds civil rights. Prison conditions are a source of complaint, and migrants have reported ill-treatment by security forces.

Officials must submit asset declarations, and are subject to conflict-of-interest regulations. Public accounting standards help in detecting corruption. The parliament has moderate levels of powers and resources, but committees play a key role in shaping legislation and overseeing the government.

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.

In the category of consensus-building, Latvia falls into the sample’s lower-middle ranks (rank 21).

Ministries can initiate national research programs with an interdisciplinary focus on critical issues. Short time frames and funding constraints often discourage researchers from participating in policymaking.

The umbrella labor and employers groups have a strong influence on policy, and participate in working groups and cabinet meetings. An official tripartite cooperation council brings unions and employers associations together with the government. Government contact with social welfare groups is more sporadic, with limited information exchange.

A process for integrating environmental groups’ insights into policymaking is being developed. Such groups often currently feel that they are unable to influence policy. Data sharing and open government programs are comparatively underdeveloped.

Latvia performs relatively poorly (rank 23) in the category of sensemaking.

An innovation lab is tasked with fostering public administration problem-solving, but lacks strategic foresight capacity and exploring diverse future scenarios. Strategic plans do not extensively explore multiple potential outcomes and varied scenarios.

Regulatory impact assessments are somewhat formal. Assessments are rarely updated as a draft law changes during the parliamentary process. Stakeholders are sometimes involved, but the extent and depth varies. The reviews include issues such as environmental sustainability and climate neutrality.

Ex post evaluations, if conducted, are carried out either by ministries or by external consultants. Policy planning documents also undergo post-implementation evaluations.

Latvia falls into the sample’s middle ranks (rank 16) with regard to economic sustainability.

A circular economy action plan is in place, but Latvia’s raw materials consumption is increasing. A government roadmap for updating and protecting critical infrastructure was passed in 2021. A Ministry of Climate and Energy was created in 2023 to focus on decarbonization and renewable energy. Renewable energy use is rising.

The unemployment rate has shown a steady decline. An extensive training network addresses both current labor market needs and future demands. Social insurance, including unemployment and pensions, is funded through social tax contributions. Tax disincentives to returning to work are above average.

The tax-to-GDP ratio is low. The shadow economy is substantial. Income taxation is progressive, but low-wage earners pay a higher proportion of taxes than medium- or high-income earners. Public debt levels are low by OECD standards. Despite deficits, budgetary policy is deemed sustainable. R&D is not a strong government focus.

Latvia falls into the sample’s lower-middle ranks (rank 21) with regard to social sustainability.

Students perform above the OECD average in math and science. A new curriculum was introduced in 2023 to improve Latvian language proficiency. Women make up a comparatively high share of graduates from tertiary programs.

Healthcare spending is below the OECD average. Though core healthcare services are available to the entire population, satisfaction remains relatively low. The minimum income is low. Gender pay gaps and gender-role stereotypes have been persistent. Women are underrepresented on company boards.

Family policies focus on child and maternity benefits. Municipalities must pay for childcare for children above 1 1/2 if no public kindergarten spot is open. Pensions do not prevent poverty for a significant share of older people. The number of immigrants has surged, largely due to incoming Ukrainians. Integration is focused on language learning and cultural values.

In the category of environmental sustainability, Latvia falls into the lower-middle ranks (rank 21).

Latvia’s climate action plan for 2030 lacks a clear road map to climate neutrality. Overall greenhouse gas emissions per capita have increased over the past decade, although the growth rate for CO2 emissions has declined.

The country has made progress in areas such as reducing air pollution and improving water and sanitation quality. Agriculture and timber industries compete with conservation efforts. In some cases, the state has limited development to protect biodiversity, but the compensation provided to property owners is insufficient to cover economic losses.

By 2027, the country plans to devote at least 30% of development cooperation funds to climate initiatives.