Latvia Today
As the world enters a new millennium, the country of Latvia is entering one of the most promising periods of its history. In the year 2001, Latvia looked back on 10 years of renewed independence and forward to an increasingly prominent role in the new Europe that is emerging in the 21st century.
Latvia today is renewing the old, creating the new and re-asserting a distinctive national presence on the European scene. The rest of the world is beginning to rediscover Latvia as well. It is discovering a country that has been a sovereign state since 1918, but a national state of mind for centuries. A country that survived two world wars and 50 years behind the Iron Curtain, even more committed to the principles of freedom, democracy and international co-operation. A country with a language, culture and attitude totally unique to its region – yet a national identity woven through with diverse historical influences. Latvia is a Baltic country, a Baltic Sea country, a European country. It is poised to be a NATO and EU country. And ready to take its place in the global community.
Latvia is a country of 2.3 million people who are discovering what it means to live, work and play in an environment they can shape themselves. It is a place where schoolchildren and college students - the emerging generation of national, economic, social and cultural leaders - have a reason to be optimistic about their future. A future where Latvia is free to find its own place in the increasingly interconnected global community of the 21st century.
A tradition of democracy
The Republic of Latvia was established as a parliamentary democracy in 1918, and elected four Saeimas (parliaments) before the onset of World War II. It was a member of the League of Nations and enjoyed an economy and standard of living comparable at that time to Finland and Denmark.
The Soviet Union occupied Latvia in 1940 and illegally annexed it to the USSR, where it remained, a Captive Nation and de facto Soviet Republic for 50 years. In 1990, while still under Soviet rule, the people of Latvia elected a majority of pro-independence deputies to what was then the Soviet parliamentary body, the Supreme Council of Latvia. On May 4, 1990 the Supreme Council voted to restore full independence following a transition period. The Soviet government in Moscow refused to recognise this declaration, and in 1991 on several occasions attempted to use force to overthrow the elected parliament and government and re-establish a pro-Moscow regime. Utilising massive peaceful demonstrations and passive resistance, the people of Latvia thwarted Moscow’s attempts.
On March 3, 1991, 87 percent of all residents of Latvia participated in a referendum on independence, and 73 percent voted in the affirmative. Since ethnic Latvians represented just 53% of the total population at the time, this high favourable vote indicated that at least 33 percent of non-Latvians had voted with a majority of Latvians to restore independence.
On August 21, 1991, following the collapse of Soviet Union, the Latvian Supreme Council adopted a resolution for the full restoration of Latvian independence. In late 1992 the Supreme Council proclaimed elections to the first post-independence Latvian parliament, which were held on June 5- 6, 1993. The elections led to the convening of the 5th Saeima, continuing a link with the parliamentary bodies of pre-war Latvia. The 5th Saeima elected Guntis Ulmanis President of the Republic of Latvia in 1994.
Subsequent parliamentary elections have been held in 1996 (6th Saeima) and 1999 (7th Saeima). President Guntis Ulmanis was re-elected to a second (and constitutionally last) term in 1996; Dr. Vaira Vike-Freiberga was elected President by the 7th Saeima in June 1999. While the original constitution set the term of office for the president and parliament at three years, this was changed to four years for both in 1999.
In Latvia’s parliamentary democracy, the President’s power is largely restricted to appointing a prime minister (who must be approved by the Saeima) and signing laws into power. The President can send legislation back to the Saeima for revision and amendment. Although both President Ulmanis and Vike-Feiberga have used this power, both have primarily used their offices to promote Latvia’s foreign policy objectives and have been active and influential in international diplomacy, particularly in promoting Latvia’s membership in NATO and the EU.
Following independence, Latvia’s yearning for democracy, free speech and free enterprise rapidly extended beyond politics. Most state-run newspapers were either privatised or closed, and new, independent daily, weekly and monthly publications proliferated. Public television (LTV1 and LTV2) and radio (4 channels) were supplemented by new, independent TV and radio stations in a highly competitive media market. Latvia today has several independent TV channels and nearly a dozen private radio stations broadcasting nationally in Latvian, Russian and English.
While the State educational system began a difficult period of reform and restructuring, over 30 private colleges, technical schools and secondary schools have been established since 1991, and the numbers continue to grow. The English literacy rate has reached 90%, as proficiency in other European languages also increased. While courses in business, management and information technology are attracting the largest number of new students, the arts and sciences remain extremely popular.
Civic participation in democracy-building has blossomed, especially after the UNDP, The Soros Foundation of Latvia and the government of Denmark helped establish an NGO centre in Riga in 1996. Of the over 6,000 NGO’s that have been registered in Latvia in the last ten years, more than 800 actively make use of the NGO Centre’s resources in Riga and are engaged in ongoing projects and programs. To promote NGO activities in smaller cities and rural areas throughout Latvia, the Riga centre is now supplemented by 13 regional NGO support centres.
While much still needs to be done to overcome a tragic Cold War legacy, the enthusiasm with which the people of Latvia have embraced democratic values and institutions is one of Latvia’s strongest assets in the 21st century.
A free market economy and a stable currency
Throughout its history, Latvia has always enjoyed the economic advantages of its strategic location on major trading routes between North and South, East and West. As Latvian governments moved quickly in the early 90s to restore a free market economy, encourage privatisation, stabilise the currency and diversify import and export flow, Latvia rapidly emerged as one of the economic success stories of post Cold War period.
When the European Bank for Reconstruction and Development chose Riga, Latvia as the site for its annual meeting in 2000, Latvia was widely viewed as an advanced transition country.
Latvia’s progress in price and trade liberalisation, small and large-scale privatisation and financial sector reform has resulted in an economy that has grown by an average of 3 percent yearly since 1994. Latvia’s national currency, the lat, was pegged informally to the International Monetary Fund’s Special Drawing Right (SDR) in 1994, and has been one of the most stable currencies in the world since then.
Like many countries in the region, the Latvian economy suffered setbacks during the Russian economic crisis in 1998. This came on the heels of a banking crisis that had begun in 1995. Yet both of these shocks served as a catalyst for further change and reform.
Budget stringency and a gradual reorientation of exports to EU and other Western countries reduced Latvia’s trade dependency on Russia. Latvia’s rapid recovery enabled it to join the World Trade Organisation in 1999 - the first Baltic country to do so. Further reforms, foreign experience and the growth of other branches of the economy, spurred the recovery and development of the Latvian banking system.
A new phase in Latvia’s economic transition was marked by an invitation to begin EU accession talks at the Helsinki EU Summit in December 1999. In developing a finance and banking system that corresponds to EU requirements, Latvia established a Finance and Capital Markets Commission in 2001 to monitor brokerages, insurers, credit institutions, investment funds, and private pension funds.
As a result, the current financial system of Latvia corresponds to the requirements of a modern and developed EU economy, providing all the necessary financial instruments to operate in a global economy. Confidence in Latvia’s economy has attracted foreign banks, representing 60% of Latvia’s bank capital. The largest investors come from Nordic States, expanding Latvia’s role as an emerging new financial centre in the Baltic Sea region.
With its prime location as a transit hub for east-west trade, Latvia has attracted considerable foreign investment. Three ports and corridors of motor transport with high cargo throughput serve strategic important directions, linking Central, Western and Northern Europe, Russia and CIS countries. With a specialised, high capacity railway corridor, and oil, oil products and natural gas pipelines, Latvia joins Russian energy sources and markets with Western customers.
The Scandinavian and Baltic countries are important trade partners of Latvia, together constituting 30% of the total Latvia’s trade volume. The strengthening of the Latvian market economy and integration with the region has made important arrangements in foreign trade flows. EU share of foreign trade is 61% for export, 53% for import.
One of the fastest growing sectors of the Latvian economy, however, has been in Information Technologies. Latvia’s innovative, integrated Information Systems cluster strategy has spurred growth in software development, IT consultation, hardware development and data transmissions solutions.
Latvia’s GDP grew by 7.6 percent in 2001, which was more than any other EU candidate country. Inflation was under 3% for three years running. Unemployment in 2001 reached 7.7% . Growth was broad-based and driven by domestic demand, particularly investment. The structure of value- added has evolved, reducing agriculture’s share of the economy from 10% to 4%, while the service sector has grown from 56% to about 71%.
As it moves into the 21st century, Latvia is clearly on a path to convergence with the EU.
A foreign policy that looks West and East, North and South
When Latvia joined the United Nations in 1991, it came as a country that recognised that its return to a global community carried with it new global responsibilities and challenges. It was an historic opportunity to close one chapter in world history, and open a new one based on international engagement, co-operation and common values.
Latvia’s foreign policy priorities were clear from the outset and have remained constant during its first decade of restored independence. They include co-operation with strategic partners and countries in the Baltic Sea region, integration into a unified Europe and transatlantic security structures, and active engagement in international organisations.
Developed in accordance with priorities that are defined in the foreign policy concept adopted by the Latvian parliament, Latvia’s foreign policy, like its economic policy, has been one of the success stories of the post-Cold War era.
Since 1991, three parliaments and nine governments have shaped Latvia’s foreign policy to achieve two concrete goals - membership in NATO and the European Union. Simultaneously Latvia has sought to establish a constructive and co-operative relationship with its neighbour, Russia. Historically, Latvia has always had close cultural, economic and political ties with Western Europe and the Nordic States. In rebuilding an independent Latvian state, these EU and NATO countries have become Latvia’s closest political and economic partners. Special ties were also established with the United States, which had never recognised the legitimacy of Soviet rule in Latvia following World War II. Latvia’s diplomatic mission in the U.S., first established in 1922, continued to operate throughout 50 years of Soviet occupation, and became one of Latvia’s first embassies following the restoration of independence in 1991.
The Soviet occupation had also left a legacy in Latvia which required special attention in Latvian- Russian relations. One of Latvia’s first major foreign policy achievements was the successful negotiation to remove Russian (formerly Soviet) troops from Latvian soil in 1994. Latvia’s integration into Europe included membership in the Council of Europe, the Organisation for Security and Co-operation in Europe and the European Bank for Reconstruction and Development. Regionally, Latvia became an active member of the Council of Baltic Sea States, and formed special ties with Lithuania and Estonia through the Baltic Council of Ministers and the parliamentary Baltic Assembly. In 1998, Latvia joined Estonia and Lithuania in signing the US Baltic Charter with the United States.
Latvia’s commitment to global co-operation meant membership in the World Trade Organisation, World Bank, International Monetary Fund and World Health Organisation, as well as many other international bodies.
Latvia was among the first countries to step up to the threshold when both the EU and NATO opened their doors to new members. In 1999, Latvia was named an aspirant country at the April NATO Summit in Washington and invited to begin EU accession talks at the December EU Summit in Helsinki. In the first half of 2001, Latvia signalled its diplomatic maturity by assuming the presidency of the Council of Europe, during which time Armenia and Azerbaijan joined the Council.
By the year 2001, Latvia had established over 35 diplomatic missions around the world, including embassies in most of the EU countries as well as China and Israel. As the world enters a new millennium, Latvia continues to expand its ties with the global community, looking North and South, East and West, committed to protecting its national interests through the strengthening of democracy, stability and co-operation the world over.
Strengthening a transatlantic security system
When Latvia restored its independence in 1991, many viewed this as the beginning of Latvia’s return to Europe. Latvia, however, has been an integral part of European political, economic and cultural structures for eight centuries. With the collapse of the Iron Curtain and the end of the Cold War, Europe is returning to Latvia. For Latvia, membership in the European Union and NATO are not ends in themselves, but simply means to accomplish a greater goal – participation in a united Europe, whole and free.
Latvia has sought membership in NATO in order to make its contribution to the formation of European security policy. In the development of Latvia’s security policies, Latvian governments have focused on regional co-operation and European integration, while building a special relationship with the United States in order to strengthen the transatlantic aspect of its security policy.
For Latvia, membership in NATO means commitment to the basic principles of the North Atlantic Treaty, democracy, rule of law, political and economic stability as well as the development of the Latvian National Armed Forces according to NATO standards, optimising expenditures and resources. In 1991 Latvia participated in the inaugural meeting of the Northern Atlantic Co- operation Council (NACC), now the Euro-Atlantic Partnership Council (EAPC). In 1994 Latvia signed the Partnership for Peace framework document and became an active PFP participant. In 1999, during the NATO summit in Washington, Latvia was named as a NATO aspirant country and became fully engaged in the Membership Action Plan (MAP) process.
Latvia has understood that contributing to the security of Europe means more than military preparedness and interoperability. In keeping with other NATO members, Latvia has re- established democratic institutions, placed the Ministry of Defence under civilian control and developed a fully transparent defence budget. This budget has steadily increased to 1.75% of GDP in 2002 and will reach 2% in 2003.
Since Latvia did not have a national defence force during the Soviet occupation, Latvia’s national defence system was built practically from scratch. The LNAF were established in 1991, and tailored to meet Latvia’s security needs and NATO standards.
Latvia’s force structure plans were revised substantially in 2001 in order to ensure that future plans are realistic and affordable. NATO and its allies have accepted the new force structures. These plans aim at improving self-defence capabilities, interoperability with allied forces (reflecting the strategic goal of NATO membership), as well as those from neighbouring Estonia and Lithuania, of forces for peace support operations and, in the future, sharing the risks and burdens of article 5 operations. As a result, Latvian Land Forces have been active in NATO peace support operations and a key part of BALTBAT, the Baltic Battalion has served in Bosnia-Herzegovina. The Latvian Navy has contributed to the development of the Baltic Squadron, with special emphasis on minesweeping, sea surveillance and coastal defence. The key objective of the Latvian Air Force is to develop air defence as well as air surveillance capabilities within the scope of BALTNET, and is already contributing to search-and-rescue missions in the Baltic Sea region.
Even prior to NATO membership, Latvian forces have worked collectively with NATO forces to preserve peace, prevent war and enhance the security and stability of the transatlantic community. Latvian troops and specialised personnel have participated in all NATO-led operations in the Balkans, as well as other endeavours by the OSCE and WEU.
Through MAP, PFP and peace support operations in the Balkans, Latvia’s armed forces have already established themselves as ready and reliable partners and allies throughout Europe. Latvia has contributed to stability and co-operation within region, by involvement in various initiatives, which include all countries around Baltic Sea, including Russia. Simultaneously, Latvia’s military has built confidence and support within Latvia. The Ministry of Defence, in co-operation with such non- governmental organisations as the Latvian Transatlantic Organisation (LATO) and the Latvian Transatlantic Youth Club (LTJK) has launched broad information dissemination and educational programs within Latvia. Members of the military have assisted local governments during disasters such as forest fires and floods.
Latvia realises that no single country can be self-sufficient in ensuring its security. The 21st century has brought with it new threats to European, transatlantic and global security. Whether it is international terrorism or regional conflicts, Latvia is ready to do its share to promote stability and security.
The goal of an integrated society
The forefathers of the Latvian people first arrived in the Baltic region in the first half of 2000 B.C. In the 900s A.D. the ancient Balts began to establish specific tribal realms. The territory of modern Latvia was inhabited by four major tribal cultures – the Couronians, Latgallians, Selonians and Semigallians. In the 13th century Latvia was invaded by armed Germanic Crusaders, who founded Riga and established control over the indigenous people and territory. Over ensuing centuries, traders and invaders from Germany, Poland, Sweden and Russia established a presence in Latvia, alongside the local Latvian inhabitants.
In the late 19th century Latvia was politically ruled by Russia and economically controlled by Baltic Germans, yet the majority of Latvia’s inhabitants – farmers, workers and fishermen – were ethnic Latvians, and descendants of the original Baltic tribes. The Latvian people finally established a Latvian state in 1918 with citizenship for all the residents, regardless of ethnicity. Between 1918 and 1939, ethnic Latvians comprised about 75% of the population; Russians, Jews, Germans, Poles, Lithuanians, Estonians and other minorities represented the remainder of the population.
During World War II Latvia suffered three invasions and occupations. One hundred and twenty thousand Latvians were deported to Soviet concentration camps in Siberia, one hundred forty thousand fled to the West, and tens of thousands more disappeared or perished in the conflict. As a result of Hitler’s policies, the majority of Baltic Germans were resettled in Germany and ninety percent of the Jewish population was brutally annihilated during the Holocaust. Nearly one third of the ethnic Latvian population had been killed, deported or relocated. Latvia’s prosperous society had been decimated. The greatest toll was among the wealthy and educated – those who had shaped Latvia’s social, economic and intellectual life following WWI. During Soviet rule between 1944 and 1991, hundreds of thousands of Soviets were brought into Latvia, reducing the indigenous ethnic Latvian population to nearly 50%.
With the restoration of Latvian independence in 1991, Latvia also re-established its original citizenship laws and policies. This enabled all former (pre-1940) citizens and their descendants to restore their citizenship, regardless of ethnicity. At that time, nearly 700,000 Soviet citizens resided in independent Latvia. When the Soviet Union ceased to exist in October 1991, they became stateless.
A new law on citizenship was passed in 1994, making nearly all of the permanent residents of Latvia eligible for naturalisation. By 2002 over 50,000 eligible people had applied for and received Latvian citizenship.
According to the Declaration on the Renewal of Independence of Latvia in 1990,
"Citizens of the Republic of Latvia and citizens of other countries with permanent residence in the territories of Latvia are guaranteed the enjoyment of social, economic, and cultural rights, as well as political freedoms, in accordance with generally recognised norms of human rights. This clause applies fully to those citizens of the Soviet Union that express their interest to live in Latvia while not obtaining Latvian citizenship."
Since 1991 Latvia has established State-funded minority schools serving 8 ethnic groups: Russian, Polish, Jewish, Ukrainian, Estonian, Lithuanian, Belarussian and Roma. These schools also serve as cultural centres. In 1991 the Latvian Government began to implement a bilingual education program, designed to provide ethnic minorities with an opportunity to learn Latvian, as well as their native tongues.
In 2001 the 7th Saeima passed a law on Social Integration, designed in part, to encourage and promote the acquisition of Latvian citizenship among the non-citizen population. The program is intended to promote dialogue on integration issues, foster Latvian language training and increase understanding of Latvian culture and heritage among the minorities on the one hand, while promoting the understanding of the cultural heritage of minorities among Latvians, on the other. The aim of integration is to have a consolidated civic society with common values.
There are nearly 1.4 million native speakers of Latvian in Latvia, and 140,00 abroad. As one of 250 major languages in world (spoken by more than a million people), the Latvian language is also one of the oldest. It was established as a State language in order to preserve this unique cultural heritage. Nevertheless, English and Russian are widely spoken throughout Latvia, and the knowledge of other languages is rapidly increasing, enabling Latvia to retain its special national identity, while moving toward fuller integration with Europe and the globalised world at large.
An ancient culture in a dynamic European setting
The contemporary Latvian poet Imants Ziedonis has described culture as something "which is, lives, wants to live and flourish". In Latvia, this spiritual desire to live and flourish developed a distinctive national identity over a period of 3,000 years.
Like other cultures, Latvians developed traditions, customs, decorative designs and a world view that were uniquely their own, closely tied to the Northern European land and nature that they depended on for survival. Ironically, the period when the Latvian language and culture began to coalesce, was also the period when it faced its greatest threat, for the 13th century marked the beginning of a series of foreign incursions, invasions and occupations. German, Swedish and Polish warriors and traders brought European culture to Latvia, at times threatening the existence of the Latvian culture, at times strengthening it through adversity, and eventually co-existing along side it.
Latvian culture was both preserved and manifested in folklore that displayed the collective wisdom and beliefs of the Latvians’ ancient tribal ancestors. A uniquely Latvian cultural phenomenon, folk songs, or dainas, date back well over a thousand years. Rich with tradition, literature and symbolism, the dainas serve as an oral record of Latvian culture. Their subjects encompass the entire course of human life, from childbirth, youth, marriage and work, to old age and death. By the 19th century, more than 1.2 million texts and 30,000 melodies were identified. In the 21st century, these songs continue to live as an essential part of Latvian contemporary holiday celebrations and social life.
This powerful tradition of song played a central role in Latvia’s National Awakening in the second half of the 19th century and led to the first Latvian Song Festival in 1873. The Song Festival, involving massed choirs of tens of thousands of participants was a central focus of national identity during Latvia’s years of independence from 1918 until 1940, survived through the Soviet occupation, and spearheaded Latvia’s "singing revolution" in the late 1980s.
Latvian traditions still play a central role in the Latvian identity today. This uniquely "Latvian" culture is woven through its literature, music, theatre and the visual arts. Yet, the legacy of foreign rule has also given Latvia a second, European culture. As a distinctive Latvian identity emerged during the National Awakening in the 19th century, so did an appreciation for the achievements of other cultures. Latvians enthusiastically embraced all the classical arts – literature, painting, theatre, symphonic music, architecture, opera, ballet and film. Latvia’s National Opera – the "White House" of Riga - was one of the first buildings to be renovated after the restoration of independence in 1991 and is the centrepiece of a flourishing cultural life.
Latvia’s home-grown, world class opera singers, such as Inese Galante, Sonora Vaice, Egils Silins and Elina Garance, today perform in opera houses throughout Europe. Peteris Vasks is considered one of the finest contemporary composers in the world, while Riga-born violinist Gidons Kremers and his Kremerata Baltica chamber orchestra won a Grammy in 2002. Violinist Baiba Skride took First Prize in the Queen Elizabeth International Music Competition in Brussels in 2001 and is considered one of the most outstanding young violinists in all of Europe.
The rapid renovation of Riga’s centre has revealed hundreds of examples of distinctive Jugendstil architecture, leading some to assert that Riga may be the Jugendstil capital of Europe. Interestingly enough, over 60% of the buildings displaying this very European Art Nouveau style of the turn-of- the-century, were designed by Latvian architects. In the 1920s and 1930s Latvian painters, known as the “Riga group” also established an international following.
A hundred years ago Riga was known as the “Paris of the North”. As it enters the 21st century, Riga has blossomed as a creative centre for the arts once again. Local and visiting art exhibits and the opera, theatre and ballet, compete with night clubs and discos that rock with jazz, blues and the latest electronic fusions of hip hop and dance music. After ten years of independence, Riga is now called “The Second City that Never Sleeps”, and “The Hottest City in the North”.
The vibrancy of cultural life in Latvia is a product of talented artists, performers and writers that honed and developed their skills in cities and regions throughout Latvia. Many continue to live and work in their home towns or rural settings, blending the influences of traditional roots with the modern, cosmopolitan influences of the nation’s capital. This spiritual desire to live and flourish as Latvians, as Europeans, and as the shapers of the 21st century, is a phenomenon that continues to shape Latvia’s multi-faceted, dynamic culture.
© Text: Ojars Kalnins