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During its post-Soviet reconstruction Latvia has become a role model in macroeconomic stabilization and democratization. Latvia in Transition provides the material necessary to understand present-day Latvia. The author examines the main events, processes and problems of this country during the period of transition from a dependent and Moscow-dominated Soviet Republic to an independent and also interdependent state. The book presents the most relevant and essential aspects of Latvia's history, politics, economics and society.
Latvia stands out as the East European country hardest hit by the global financial crisis; it lost approximately 25 percent of its GDP between 2008 and 2010. It was also the most overheated economy before the crisis. But in the second half of 2010, Latvia returned to economic growth. How did this happen so quickly? Current Latvian Prime Minister Valdis Dombrovskis, who shepherded Latvia through the crisis, and renowned author Anders slund discuss why the Latvian economy became so overheated; why an IMF and European Union stabilization program was needed; what the Latvian government did to resolve the financial crisis and why it made these choices; and what the outcome has been. This book offers a rare insider's look at how a national government responded to a global financial crisis, made tough choices, and led the country back to economic growth.
The postcommunist transitions to a market economy raised doubts about the political sustainability of an economic reform under democracy. At the same time, they turned the attention to the centrality of political factors in economic policy-making. Latvia has succeeded in proceeding into the consolidation phase of its market reforms while remaining committed to both political pluralism and macroeconomic austerity. Even if politics were not treated as a mere constraint, the basic question is still: how are the government's adjustment choices modified in the political process?
The agricultural privatization strategy adopted in Estonia, Latvia and Lithuania was based on the premise that family farms are the most effective alternative to socialist large-scale agriculture. In addition, international organizations, particularly the World Bank, made recommendations concerning reform speed, synchronization and ownership rights that would facilitate transferring resources from large-scale producers to family farmers. This book provides a critical and comparative analysis of the implementation of this policy, and in particular the strategy promoted by the World Bank. The preservation of large-scale production is the key to Estonia's success while its eradication from Latvia and Lithuania did not produce a family farm system. Work productivity and the extent of plot farming are the indicators of success or failure. Research findings on deindustrialization, the hardships faced by new enterprises, rural tourism, increasing poverty, and problems in the civil society as presented in this book shed new light on these and other key issues in transition strategy.
Nationalism and Democratic Transition explores the impact of nationalism during Latvia's transition from communist rule (1988-1991) and examines the post-Soviet efforts of Latvia to construct a democratic nation-state in a multi-ethnic context. While most observers have labeled Latvia as a typical example of a state promoting an exclusive form of ethnic nationalism, the author argues that Latvia's path to independence was characterized by a moderate, non-violent form of nationalism, which sought to include non-Latvian groups in the struggle against Soviet rule.
A quarter century after the formation of the Popular Front and a decade since joining the EU, processes of state- and nation-building in Latvia are still on-going. Issues such as citizenship, language policy, minority rights, democratic legitimacy, economic stability, and security all remain objects of vigorous public discussion. The current situation also reflects longer-standing debates on the relationship between state, nation, and sovereignty in Latvian society and polity. By examining different aspects of these relationships, this volume aims to reveal both key turning points and continuities in Latvia's development, thereby helping to inform current debates.
This book provides an informative and interesting overview of developments in Estonia, Latvia and Lithuania, as they made the transition from Soviet domination to membership of the EU. It focuses in particular on the concepts of identity, sovereignty and power in the domestic and international politics of the Baltic states.
The past one hundred years have been a very trying time for Latvia, complete with success, tragedy, and still unrealized promise. Within the course of a generation, the country experienced revolutions, wars and independent statehood, and then the slide into authoritarianism. World War II brought new occupations. The tragedies were staggering: holocaust, executions, and an exodus of refugees. Soviet consolidation bred deportations, forced collectivization and partisan warfare. Almost fifty years later, Latvia regained its independence and emerged from decades of disastrous Soviet rule. This book comprehensively surveys Latvia's recent past and prospects for the new millennium, placing contemporary events in historical perspective. The authors address the evolution of the country from the movement against Soviet rule to the dilemmas of contemporary politics: party formation, the problem of corruption, the quest for the future and a regional and international role, the struggle to develop a civil society, the issue of ethnic relations and the recurring tendency towards statist solutions. Proper attention is also given to economic developments.
This 2003 Article IV Consultation highlights that the Republic of Latvia has enjoyed continued strong economic performance since the last Article IV Consultation in January 2002. Real GDP growth was 7.9 percent in 2001 and 6.1 percent in 2002; growth has been led by investment and, more recently, consumption. Real per capita GDP now stands some 50 percent above its 1995 level. Inflation remains low and was under 11⁄2 percent in 2002. The current account deficit rose to nearly 10 percent of GDP in 2001, partly reflecting stagnant external demand and one-time factors.
Woodrow Wilson Center Press.