Latvia Competitiveness Report
The Latvia Competitiveness Report was commissioned by the State Chancellery of the Republic of Latvia to the Stockholm School of Economics in Riga in 2011, a year marking twenty years of Latvia’s regained independence.
These two decades have seen a remarkable transformation of the Latvian economy from a centrally planned Soviet economy to a market economy within the European Union. However, the experience of recent years has shown a need for a new Latvian economic model in order to take the nation’s economic development further. The Latvia Competitiveness Report should be seen as one of the first steps towards formulation of a new strategy for Latvia – a strategy building on the nation’s strengths while at the same time addressing the weaknesses preventing the Latvian economy from releasing its full potential for improving the well-being and welfare of all its inhabitants.
Written by a team of authors from the Baltic International Centre for Economic Policy Studies (Zane Cunska and Alf Vanags), Harvard Business School (Christian Ketels) and SSE Riga (Anders Paalzow) the Latvia Competitiveness Report provides a fact-driven and comprehensive analysis of the Latvian economy outlining a wide range of challenges facing the country in the years to come. It paints a picture of an economy with high potential, but which has persistently failed to realize is potential in terms of delivering national prosperity. After addressing the overarching need for a change in the institutional structure for policy making, the Report identifies three key action areas:
- Action to build on Latvia’s strengths in its international transport and logistics infrastructure.
- Action to radically reduce the scale of the informal or shadow economy.
Action to improve the quality of the education system.
The Latvian language version of the Report was presented to the Prime Minister of the Republic of Latvia Valdis Dombrovskis in spring 2012 and the impact of the Report is seen in Latvian policy making.
Interest in Latvia’s recent economic developments has triggered a demand for an English language version of the Report as well. The English language report being slight revised and extended in comparison to the Latvian one. Both reports can be downloaded below.
The Report is funded 100 per cent by the European Union through the European Social Fund.