Education and Science, EU – Baltic States, Latvia

In his view, reform of the higher education system is necessary, as in the present situation, 80% of an institution's students are there for financial reasons, and it is difficult to focus on the 20% who are especially talented; he added, however, that this is not a criticism of individual universities, but of the system as a whole.

He also confirmed that the Stockholm School of Economics in Riga was introducing tuition fees. Until now, the school has been funded by the Latvian and Swedish governments; however, in June this year, the Swedish government will discontinue its support. Hence tuition fees will grow from zero up to EUR 1,500; 2,200; or 3,500 (LVL 1,050; 1,540; or 2,450) for the next academic year, writes LETA.

Paalzow pointed out, however, that these figures are approximately the same as in other educational institutions in the Baltic States, and that a person would receive good value for this money. To illustrate this point, he made a comparison between investing in higher education, which will pay for itself in improved salaries later, and paying EUR 10,000 (LVL 7,000) for a second-hand foreign car, a common occurrence in the pre-crisis period, which will be worth only a fraction of its value in five years' time.

He predicts that the introduction of tuition fees will reduce young people's interest in studying at the Stockholm School of Economics. However, demographic factors pose a higher threat to universities, as the dip in birthrate in the early 1990s is now starting to affect applicant numbers. He added, however, that this was not a particular problem for his institution, as when choosing 120 good students, it did not matter whether they were being chosen from 1,000, 500, or 400 applicants.