“Latvia a decade out from the world’s largest GDP crash: how it collapsed and how to improve its economic performance”

ABSTRACT

This article enumerates several sectors where Latvia’s economic performance can be enhanced. Yet, it also delivers by way of a long introduction an overview of Latvia’s economic development in the post-Soviet period from a heterodox perspective that hints at why good options might not have been selected in the past. Following the above overview, we provide a detailed sectoral analysis of Latvia’s economy since the 2008 financial shock that reveals continued hindrances to its development. We conclude by outlining development-friendly tax and industrial policy recommendations to promote Latvia’s continued transformation into a more modern, sustainable, socially responsible and digitally enabled economy.

KEYWORDS:

• Latvia
• Austerity
• Neoliberalism
• Internal Devaluation
• Political Economy
• 2008 Financial Crisis

Disclosure statement

No potential conflict of interest was reported by the author(s).

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Notes

1. Sectoral value added data for 2017 and 2018 not available as of 31.07.2019; 2015 used as reference year.

Additional information

Notes on contributors

Jeffrey Sommers

Jeffrey Sommers is a Professor of Political Economy and Public Policy at the University of Wisconsin. He holds a Visiting Professorship at the Stockholm School of Economics in Riga and has held two Fulbrights in Latvia. Additionally, he has published in press venues such asThe New York Times, The Guardian, Project Syndicate, Social Europe and The Nation.

Kaspars Briskens

Kaspars Briskens is a Development Economist and Multimodal Connectivity Expert in Latvia. He has worked for the Ministry of Foreign Affairs in Latvia as well as in other government ministries and state companies.