June 6, 2022
The information was prepared by Elmārs Kehris, Association of Economists.
The Spring Conference of the Association of Economists took place on June 3 in “Zemgali”. In addition to the association’s members, the conference was also attended by businessman Uldis Pīlēns, former Estonian Minister Jaak Aaviksoo, Latvenergo Research and Development Director Maris Balodis and Ukrainian Red Cross volunteer Roberts Mencis.
The Association of Economists evaluates Latvia’s growth opportunities, emphasizes the importance of political consensus before the elections
“Latvia cannot afford to quarrel on issues that are crucial for our country at the political level. Consensus is needed on issues such as national security, energy policy, macroeconomics, sustainability issues and investment, attracting human capital,” Ojārs Kehris, President of the Association of Economists, emphasized at the spring conference. . The annual spring conference of the Association of Economists took place on June 3, with a comparison of the development processes of the Baltic States, challenges in the energy sector, as well as developments in Latvian politics in the context of the forthcoming Saeima elections.
The need to agree on some of the most important issues for Latvia was also emphasized at the conference by Roberts Zīle, Member of the Board of the Union of Economists, Vice-President of the European Parliament, and Juris Pūce, Member of the Saeima. Uldis Pīlēns, Chairman of the Supervisory Board of UPB, also emphasized in his speech that the crisis situation especially highlights the importance of a unified strategy for Latvia, which would be shaped by the different, often asymmetric, visions of political forces. Pragmatically minded political forces should agree on some of the most important topics, which would allow avoiding the usual asymmetry in the programs of political parties and allow them to reach decisions critical to Latvia after the Saeima elections more quickly, U. Pīlēns emphasized.
Growth condition – dynamics in politics and business
Jaak Aaviksoo, the former Rector of the University of Tartu, who once headed the Estonian Ministry of Education and Science, and was also the Minister of Defense, gave an assessment of the long-term development trends in the Baltic States. According to J. Avikso, the biggest challenge at the moment is the ability to maintain high dynamics in business and politics. “To reach and overtake the countries of Western Europe, small countries need much more dynamism and diversity in both business and politics. This is and will largely depend on sufficient competition, which not only survives, but forces them to develop,” said Avikso. He mentioned the lack of human capital and uneven regional development, which robs young people of growth opportunities, as political problems that are detrimental to Estonia’s development. “Young people need good educational opportunities and perspectives,” emphasized Avikso, noting the crucial role of education in the country’s development.
Describing the development of Estonia after regaining independence, J. Avikso mentioned as a first decisive factor the purposeful liberation from the former corporate ties with the USSR nomenclature. “It was a very strict activity of the Estonian government and the reform policy after regaining independence, which was mainly related to Estonia’s former ties with Finland during the USSR. Therefore, the , the economy and other areas. Independent, politically free media and, of course, investment from Finland also played an important role. “
In the later decades, as important turning points, J. Avikso mentioned the entry of younger people into the higher education system, the emergence of the banking system, which formed a modern financial ecosystem and affected the service sector as a whole. As well as the entry of the Internet and technology into the Estonian school system. “It gave young people new experiences and perspectives, it changed their thinking a lot. It is important to maintain this belief in the future, an emotional attachment to a long-term goal, which has recently been replaced by rational but short-term tasks,” said Avikso.
Education and culture are at the heart of sustainable development
Comparing the development trends of Latvia, Lithuania and Estonia, Edmunds Krastiņš, a member of the Board of the Association of Economists, pointed out that in the last few years there has been a “breakthrough in Lithuania”, whose economy has grown relatively faster. Comparing the data on GDP per capita, it can be seen that in Estonia and Lithuania this indicator exceeds 80% of the EU average, while in Latvia it is about 70% of the EU average. One of the most worrying trends is the dynamics of Latvia’s demography – if the population in Lithuania and Estonia has stabilized, Latvia will continue to decline. The situation is similar with regard to the employment rate in the Baltic States (in Lithuania and Estonia it has practically reached the level of 2008, but in Latvia it slightly exceeds 80% of the level of 2008). Speaking about what would be necessary for the growth of the Latvian economy, E. Krastiņš emphasized the importance of the field of education, as well as the role of culture as a sustainable long-term driver. “This cannot be done with one or a few political decisions. It is a matter of long-term and profound changes in society, which can only be ensured by high-quality education and a diverse culture,” said E. Krastiņš.
Ukraine’s lesson for Latvia – values must also be defended in action
Members and guests of the Association of Economists listened to Robert Menci, a researcher at The Economist Intelligence Unit, a volunteer at the Ukrainian Red Cross, who highlighted a number of valuable lessons that Latvia should consider and take into account from the Ukrainian experience. “The time of crisis highlights the importance of public identity and national consciousness. In the case of Ukraine, one of the hallmarks of national identity is the value of freedom over state power. And it is important that these values are not just words but actions. Freedom, along with human rights, puts the notions of duty and personal responsibility of each person in mind. courage and self-denial. It is also an important lesson: we must get rid of the historical experience of colonialism and not be afraid to stand up for our values at our own risk. “
Energy scenarios will be assessed
The third topic of the spring conference of the Union of Economists was dedicated to the challenges in the Latvian energy sector, which has now become one of the most important topics at the European and world level in connection with the war started by Russia in Ukraine. As R. Zīle pointed out, Latvia needs a unified and precise approach to solving the energy crisis, and we cannot be indecisive, because it may have lasting consequences for the entire economy. In his turn, Maris Balodis, Director of Research and Development at Latvenergo, presented the main challenges of the energy sector and emphasized the importance of nuclear power plants and renewable energy resources in the Baltics. Elmārs Kehris, Executive Director of the Association of Economists, pointed out that in times of uncertainty, the country needs to look for scenarios to provide the economy with clean, sustainable and competitive energy. In the coming months, the Association of Economists, in cooperation with energy experts, will develop a study on the Latvian energy sector, its trends, examples of good practice and define future scenarios and their impact on the country’s competitiveness.
14. Saeima political party evaluation project
The Association of Economists will launch a party evaluation project in the coming months, which is planned to be completed before the 14th Saeima elections. Both the programs of political parties and the leaders nominated by the parties in the positions of National Development Strategy, Economy and Energy, Finance, Human Capital, Justice and Security, Green Course and Sustainability will be evaluated.
Additional information:
Elmārs Kehris, Association of Economists
2 644 7909
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