tag:blogger.com,1999:blog-2873748063007712173.post7296654601498841493..comments2010-02-14T12:44:58.216+01:00Comments on Latvia Economy Watch: Latvian Inflation Continues To Be A Major ProblemUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2873748063007712173.post-10084989874500524062008-09-25T14:49:00.000+02:002008-09-25T14:49:00.000+02:00One of the problems that I see is that Latvia is n...One of the problems that I see is that Latvia is not very business friendly, with paper invoices required, sometimes with a signature and sometimes with a signature by the CEO of the company. <BR/><BR/>The government proceeds to increase its ownership of industry so that the state sector is getting bigger and the tax paying sector is getting smaller. <BR/><BR/>Even though I think that Prime Minister Godmanis is very cool to play drums at a Queen concert, recent policy seems to be a continuation of previous government policy, including asset grabbing and selective distribution to friendly organisations, heavy taxation and social charges for those who decide to pay, centralization and business by government decree rather than free enterprise. But it could certainly benefit from more entrepreneurs - especially amongst government advisers!<BR/><BR/>DaveAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2873748063007712173.post-75779235269101926362008-09-23T17:01:00.000+02:002008-09-23T17:01:00.000+02:00point taken (i was "anonymous") but it l...point taken (i was "anonymous") but it looks like for the time being there's nowhere to go!!! my only observation was that the trend is clearly reversing in the uk so unless young latvians move around to another country - or that they are an exception to this trend (i would be surprised, if even polish people come back - they are seriously disillusioned with home politics), there will be a influx very soon!<BR/><BR/>my point about fostering a cultural environment rather than purely fiscal policies encompassed all of the valid points made my one-way emigrants!<BR/><BR/>but i was hinting at creating the right settings for tech start-ups. after all, latvia has a business-friendly outlook & good access to many markets and i know of a few foreign people that have used it as a base for setting up their it company. if you follow tech and creative gatherings (opencoffee, pecha kucha) and some of the creative noise coming out of riga at the moment (andrejsala, etc), there seems to be loads happening - on a par with much bigger cities - and i am confident that the city could get it right provided that it addressed some of the core hurdles to a creative city (safety, not least rampant neo-nazism, petty crime, country branding to avoid the stigmatisation abroad of latvia-based startups)!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2873748063007712173.post-54078918004491782892008-09-22T15:28:00.000+02:002008-09-22T15:28:00.000+02:00"Anonymous' point on return migration is interesti..."Anonymous' point on return migration is interesting, but unfortunately not to be counted on in the Latvian case. Data collected on outbound migrants from Latvia reveal many of them have no intention of returning. Many were bitter with conditions at home (poor economy, workplace abuse, poor social infrastructure) and find different attitudes abroad better. See articles by labor sociologist Charles Woolfson.<BR/><BR/>Moreover, the Latvian economy is fragile. Based on neoliberal nostroms that ignored the necessity of production in favor of speculative finance and capital gains in property (which had to end), they are now in a very disadvantageous position and the more likely prospect is increased outmigration rather than a return...EconomicHistorianhttps://www.blogger.com/profile/13648372276751622431noreply@blogger.comtag:blogger.com,1999:blog-2873748063007712173.post-83100584849387124482008-09-21T21:47:00.000+02:002008-09-21T21:47:00.000+02:00Great blog - I always read it with great interest!...Great blog - I always read it with great interest! Could it be the case that Latvia's demographic crisis is in fact temporary and that in due course, and probably sooner than later, many economic migrants to the UK and Ireland will be back in Riga, helping create a more sustainable economy? <BR/><BR/>After all, there is ample evidence that migration flows between the UK and Poland have reversed (i.e. young Poles returning home to pursue their lives) and in the face of the economic crisis currently facing both the UK and Ireland - with an impact on such key sectors as construction, home services, financial services and retail/hospitality (all significant employers of Latvian resources) - it seems only logical that this reversal should extend to Latvian workers abroad.<BR/><BR/>In London last week, it is becoming statistically apparent that with limited job prospects and a weekly jobseeking allowance of £55 (not much in London), many of the city's non native workers were actually packing their bags and going home, even if temporarily.<BR/><BR/>Such a reverse trend would be a triple whammy for the Latvian economy, and quite rapidly: (1) it would reinvigorate real estate demand (of Western standards, although for that matter standards in the UK are rather low); (2) it would rejuvenate the Latvian workforce; and (3) it would inject smart, multilingual talent into the workforce, help diversify the economic base & shore up exports of value added products (after all, if all of Latvia's educated base pursues careers abroad, the economy cannot compete in value added services).<BR/><BR/>All in all, the government response to the current economic crisis should ensure that the environment (fiscal but also cultural) is favourable to the return of its prodigal sons & daughters, but also to the immigration of smart foreigners (boyfriends & girlfriends) keen to start companies in Latvia. This is what makes other countries successful, Australia for instance!Anonymousnoreply@blogger.com