bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 21.11.2017 | Name days: Andis, Zeltīte
LatviaLatvia

Economic diary. People are what matters the most

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvia’s most precious economic resource is people. They are generally in a state of depression, do not have exceptionally good health and are not particularly well educated. These were the conclusions made by the World Economic Forum.

Talents needed…desperately

The World Economic Forum (WEF) is a Swiss non-government organization. This was the first time WEF decided to perform such a large-scale evaluation of human capital. As part of this research initiative, a special Human Capital Index was developed – a set of social and demographic factors aimed at helping researchers evaluate the value of a country’s population in economy.

Latvia’s most precious resource was evaluated as satisfactory. Latvia ranks 38th on the list consisting of 122 countries evaluated by WEF. Health quality, education and common skills of Latvia’s population is more or less on the level of Saudi Arabia, Chile and Italy. Lithuania is ahead of Latvia (34th place). Estonia, on the other hand, is ahead of both – 27th place.

Analysis of auxiliary factors shows that depression, weak health and low-quality education are some of the main problems of Latvia’s residents. “Investments in human capital are equally important for every individual and societies. This is doubly true when a population has a tendency to grow old and reduce in number. The lack of talents may become a serious problem for many developed and developing countries. Governments will need to consider the possible solutions for this problem in a short-term perspective and long-term development plans,” – authors warn.

Bank of Latvia = Rimsevics

There is at least one highly qualified worker in Latvia. It is the 48-year-old president of the Bank of Latvia Ilmars Rimsevics. He was recently proposed by parties of the coalition to remain for a third six-year term.

Mr Rimsevics, who has worked at the Bank of Latvia for nearly the whole of his career, can be proud. If he is re-elected to stay for a third term this December, he will become a member of the Board of Directors of the European Central Bank.

Mr Rimsevics took the post of president of the Bank of Latvia in 2001. He replaced Einars Repse, who decided to aim for the Saeima with his new party at the time. There were even speculations that he could become the President of Latvia in 2007. Two years ago, he was asked a question regarding his plans for the future. He replied that leaving the central bank while the country was in the process of getting back on its feet after the crisis would be irresponsible.

All 12 years of Rimsevics management over the country’s central bank did Latvia slowly progress toward euro. In order for Latvia to adopt euro as soon as possible, the decision was made to adopt the ERM 2 mechanism in 2005. In spite of the fact that the rules allowed for exchange rate fluctuations within 15%, the Bank of Latvia had decided to narrow it down to 1%.

“Party’s over, gentlemen”

Politicians managed to reach another compromise this week. It revolves around residence permit issue in exchange for investments in real estate. It is planned to reduce the number of approved applications next year.

In 2014, the Office of Citizenship and Migration Affairs will be allowed to approve only 800 applications from foreign buyers of Latvian real estate. This includes a maximum of 700 transactions worth EUR 150 thousand and EUR 100-500 thousand. In the following two years, this quota will be reduced by 175 every year.

Raivis Dzintars, co-chairman of the National Alliance, which demanded the limitation of the programme, told the press: “This is not an optimal solution, but it is the best possible one given this coalition.”

This “best solution” was not accepted by the business sector. Entrepreneurs believe this means the end for a more or less stable development of the market. Many current projects will not be finished; some of them will remain idle. The government will need to think how to employ the thousands of people who will likely lose their jobs. The state will also likely need a new economic safety pillow, because the budget will lose millions because of limitations to this programme. On top of that, many Latvian builders will likely leave the country once the projects they are working on fall idle.

Latvia gained more than LVL 460.5 million thanks to this programme since July 1, 2010. LVL 370.3 million of this amount was invested in real estate, LVL 66.6 million were transferred to banking deposits and LVL 23.5 million – base capitals of different companies.

Ref: 017.109.109.9305


Leave a reply

  1. JPR says:

    Rim service? Only in Latvia…

    Thumb up 0 Thumb down 0

Zariņš: deputies who vote for the state budget without amendments will have breached their vows

It is unacceptable for the Saeima coalition to follow the Cabinet of Ministers and like the Cabinet of Ministers breach laws during the budget approval process, says Saeima member Ivars Zariņš, adding that deputies who vote for the budget without amendments will thereby have to breach the vow they had previously made to the Latvian nation.

Estonia’s ruling Centre Party shows door to 31 competing members

The leadership of Estonia's Center Party has accepted the proposals of the party's local branches on fellow members, who ran in the Estonian municipal elections this autumn from a separate list, and expelled 31 members from the political party.

Pabriks: state interests should be held higher than party interests

Latvia cannot be allowed to drown in provincialism. It is in the country’s interest to maintain a course towards European and NATO values. In a situation when the number of centric and European-oriented parties is large, it is becoming harder and harder, because it leads to political fragmentation, and the main goal of it is reaching the 5% barrier during elections, not ensuring growth and development for Latvia, says MEP Artis Pabriks.

Reacting to e-commerce growth, Omniva rushes to expand its parcel locker network

Estonian state-owned postal company Eesti Post, which operates the Omniva brand, stated that it will broaden its network of parcel lockers expand its current parcel machines up until Christmas.

Programme: introduction of ‘honest’ taxi counters is stuck

Taxi drivers that had to replace their counters as far back as 15 October, continue delaying the process, as reported by De Factor with reference to State Revenue Service.

Ministry considers reorganizing Latvian Environmental Protection Fund’s administration

After reviewing information from the State Audit, Latvian Environmental Protection and Regional Development Ministry may consider the possibility of reforming the administration of the Latvian Environmental Protection Fund.

Uber to buy 24 000 self-driving Volvo XC90s

U.S. ride-sharing technology firm Uber has agreed with Chinese-owned Swedish carmaker Volvo on the purchase of up to 24,000 self-driving cars.

Snow expected in Latvia this week

Weather in Latvia will be cloudy at the beginning of the week and, although the sun may appear every now and then precipitation, precipitation is expected in most of the country. It will begin with rain and gradually move up to wet snow and snow, as reported by State Environment, Geology and Meteorology Centre.

Lengthy German coalition talks collapse

The German political parties that entered the country’s federal parliament after elections in September, still cannot reach an agreement on making a coalition and a majority government, but German Chancellor Angela Merkel has evaluated that new elections would be better than a minority government.

airBaltic carried more than 4,780 in flights between Riga and Liepaja

In the first six months since airBaltic has started performing regular domestic flights between Riga and Liapaja more than 4,780 passengers have been carried on this route.

Week in Lithuania. Lithuanian parliament passes Magnitsky act

Members of the European Parliament have passed a resolution requesting for the application of the so-called «nuclear option» for Poland, Article 7 of the EU Treaty, because of the threat to the rule of law in the biggest Eastern European country.

BNN summary of the week: medicinal cannabis in Lithuania, cargo anti-record, and Lemberg’s dwindling influence in UGF

BNN offers a summary of this week’s topical news in a variety of categories: Fight; Growth; Truth; Future and Opinion.

NAF: Russia’s attitude remains unfriendly towards Latvia

So far Russia’s demonstrated attitude has remained unfriendly towards Latvia, said Commander of Latvian Armed Forces Leonīds Kalniņš in an interview to LNT.

Lembergs’ turn to testify before parliamentary committee has come

Aivars Lembergs, who is accused of serious crimes and is suspended from performing duties as chairman of Ventspils City Council, has been invited to come to a meeting of the Saeima’s Investigative Committee and answer questions associated with so-called oligarchs case.

How Latvian communities around the world plan to celebrate Latvia’s birthday?

«Celebration of independence of the Republic of Latvia is an important tradition that allows members of Latvia’s diaspora to maintain ties with their homeland – this year’s event will be even more expansive and inclusive than ever before. This is because events associated with the country’s hundredth birthday will be organized all around the world,» says manager of World Federation of Free Latvians office in Latvia Jānis Andersons.

European Parliament triggers punitive procedure against Poland

Members of the European Parliament have passed a resolution requesting for the application of the so-called «nuclear option» for Poland, Article 7 of the EU Treaty, because of the threat to the rule of law in the biggest Eastern European country.

Wage rules violations most often associated with envelope wages

To promote public awareness and improve commercial environment, honest competition and honest compliance with taxes, Latvia’s State Revenue Service intends to expand its database with new information about taxpayers, BNN was told by SRS.

Management of Unity’s Saeima faction to change in December

«Political consultations with all of Unity’s partner parties that are represented in the Saeima’s faction have concluded. An agreement has been reached to perform management change before the end of Saeima’s autumn session – around 21 December,» says Unity’s chairman Arvils Ašeradens.

EP prepared to commence talks with EU governments on reforming asylum system

The European Parliament is prepared to commence talks about reforming Dublin Regulation to ensure every member state is able to resettle a portion of asylum seekers.

Estonia to pour into Finnish-Estonian cultural fund 700 000 euros

Estonian cabinet of ministers has decided to attribute 700,000 euros to the Finno-Estonian Cultural Fund, an organisation working since 2015 aimed at fostering cooperation between the two states in culture, creative economy and training both for individuals and organizations.

Russia in UN vetoes extension of Syrian chemical attack investigation

At the UN Security Council, Russia has used its veto powers to block a resolution with which it would be allowed to continue the international investigation into a chemical attack this spring in Syria, which prompted the U.S. to launch missile strikes on a Syrian airbase.

Latvia’s birthday expected to be windy

A precipitation zone will reach Latvia from the west on Friday, 17 November. The precipitation zone will, however, pass over Latvia quickly, making rainfall short and periods of clear sky more frequent and longer. Air temperature is expected to stay within +5° C… +8° C, as reported by State Environment, Geology and Meteorology Centre.

State of emergency in force in flood-hit Greece

Rescue services in Greece are looking for no less than five people, who have gone missing following unexpected and disastrous floods on Wednesday, November 15, that killed 15 people; however, bad weather is still expected.

Laupīšanas 101 director: Latvia’s film industry has yet to reach its potential height

There is sufficient evidence to prove that Latvia’s film industry is capable, but at the same time many films are directed basically the same way. There is a lack of creativity, which means very slow development for the industry, said Kaspars Marhlevičs, director of short comedy Laupīšanas 101, in an interview to BNN.

Medical cannabis bill paves way in Lithuanian legislature

Otherwise conservative Lithuania has made a big stride forward legalising cannabis for medical use with 92 Lithuanian parliamentarians voting Thursday, November 15, to open the bill draft on medication containing cannabis. The law draft should go back to the parliamentary floor for deliberations on December 12.