Far behind Riga: Latvia’s problems with uneven development
Far behind Riga: Latvia’s problems with uneven development

Author(s): Bartosz Chmielewski
Subject(s): National Economy, Labor relations, Economic policy, Transformation Period (1990 - 2010), Present Times (2010 - today), Migration Studies, Socio-Economic Research
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Latvia; Economic growth; Latvia's GDP; Riga; depopulation; migration;
Summary/Abstract: Latvia’s economic situation is gradually deteriorating due to its uneven development. One of the main reasons for this is that the metropolis of Riga accounts for as much as two-thirds of the country’s economic growth. Economic and social indicators for Latvia’s regions are sometimes several times lower than those for its capital. The non-metropolitan areas are struggling with numerous problems: high unemployment, an aging population, deteriorating living standards, insufficient medical care, or a shrinking network of educational institutions. Another important fact is that local governments often function like ‘appanage principalities’. If the current trends continue, the state will continue to fall behind its neighbours Estonia and Lithuania.

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