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Monday, 02.10.2023, 18:54
First Latvian economic forum: supporting national producers

Contemporary world is full of “forums”: like the global ones (e.g. Davos Economic Forum), regional (in the EU, Asia, Africa, etc.), and national –practically in all countries. Each of the forums supposed to make “an economic analysis”, either in the world, the region or a country. The very first Latvian economic forum (LEF) has been an attempt, and quite successful, in gathering social scientists, economists and politicians around presently the most vital idea –defining national economic identity.
Mission and outcomes
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Prime Minister of Latvia Maris Kucinskis, member of EP Inese Vaidere and president of LMT Juris Binde. 26.04.2017. |
Forum’ main mission
was, on one side, quite clear: attract attention to Latvian economic
development and thus forums stimulating inflow of the local and foreign
investments. On another side, analysing the ways public and private developers
“make use of the scientific potential in order to find new niches and sources
for the development of entrepreneurship in Latvia”, as was formulated by the
forum’s organizers.
Still one more “message” has to be mentioned as well:
“creating a platform for exchange of experience and cooperation of scientists,
entrepreneurs and politicians that would serve as a mechanism for resolving of
social-economic problems with the help of scientifically based and business-like
instruments”.
Addressing the forum, Latvian prime-minister underlined the
LEF’s importance and pointed out at the LEF’s role in stimulating national
growth and prosperity.
Two plenary sessions and a panel discussion were aimed to
cover the forum’s agenda.
Plenary Sessions and panel discussions
At the plenary session,
the following issues were under review:
- Creativity as the
basis of Innovative Economy: know‐how
in science, by Pamela Bernabei, President of the Scientific and Humanistic
Research Foundation in Switzerland/Italy.
- Attractiveness of
Latvia for foreign investments, by Zlata Zasščirinska, Chairperson of the Board of the Council of
Foreign Investors in Latvia.
- Development scenario of Wise Economy in
Latvia, by prof. Baiba
Rivža, Academician of Latvian Academy of Sciences, head of the State
Research Programme ECOSOC-LV and prof. Andra
Zvirbule, Dean of the Faculty of Economics and Development of Society of
Latvian Agriculture University.
During the first plenary
session the following five issues were discussed reflecting development trends
and perspectives in the following economy sectors:
- Information and Communication Technologies
(ICT) Industry (by prof. Juris
Binde, Latvijas Mobilais
Telefons, President);
- Chemistry and
Pharmaceutical Industry (by Kirovs
Lipmans, Chairman of the Council of Grindeks
and chairman of the Grindeks Foundation);
- Metals and
Machinery Industry, by prof. Andrejs
Krasņikovs, academician and Vilnis
Rantiņš from Latvian Mechanical Engineering and Metalworking Industries;
- Woodworking
Industry by Kristaps
Klauss, executive director of Latvian Woodworking Federation;
- Knowledge Economy
and Education Services by Daunis
Auers, assoc. prof. of Latvian University and research director of Certus.
Made in Latvia
Irina Pilvere, Maris Revalds, Venta Kocere, Riga. 26.04.2017 |
The following panel discussions
were devoted to the main LEF’s item
-“Made in Latvia: Latvian image in
export markets”. The following five sectors were analysed under
the guidance of a skilled moderator, Aigars Rostovskis, President, Latvian Chamber of Commerce and
Industry.
- Transport
and Logistic Services, by Jānis
Vanags;
- Global Business
Services, by Sandra
Liepiņa, chairperson of the Board of the Association of Latvian Commercial
Banks and vice-president of Latvian Employers Confederation;
- Food products industry, by Jānis Šolks, Chairman of the Board, Central Union of Latvian milk manufactures;
- Bio-economics and
green technologies, by prof. Irina Pilvere, Rector, Latvian Agricultural University;
- Human Healthcare and
Social Work Services, by Māris Rēvalds, Chairman of the Board in Ltd. Health Center 4 and Healthcare Employers Association;
- Cultural Tourism Services,
by Dr. Venta Kocere, Director, Academic Library,
University of Latvia).
See Forum’s program at: http://www.lza.lv/images/stories/PROGRAMM_ENG.pdf
A narrative for the Latvian political economy
Though forum’s title (“Made in Latvia-Latvian economic identity in Europe and the world”)
sounds little confusing. Of course,
supporting national producers (goods and services “made in Latvia”) is a vital
one; but making competitive goods and services is even more important. Only
with the help of new technologies and new R&D national producers can be
competitive in EU and the world.
The forum has gathered at a time when European economic
integration project is under stress and its future is subject to fierce
discussion (some say it is even unclear). The national governments and
political leaders need to find out the essence of national political economies,
stop playing the blame game and instead rally save the European Union.
Like in Latvian, the EU has a lot of shortcomings that need
to be addressed. But scientists’ plans have to be less bureaucratic and being
“operative” and quick to understand. So-to-say- being agile, i.e. helping to do
more with less efforts and resources, which are quite scarce in Latvia.
The idea of Latvian political economy can help: finding out
what policies the government shall put in place, what economic system shall be
adopted, to actually bring about necessary changes. Ideas abounded, from
familiar solutions – retraining people to make sure they have the skills they
need, reforming tax systems – to more radical ones.
Of course, the shape of the political economy in modern
Latvia will depend on the decisions being made at the present forum. But the
main question remains: will Latvian be happy with the new decisions? Because
when we are happy, then we feel more energetic, more productive and more
creative. The atmosphere of growth can really boost our happiness.
https://www.weforum.org/agenda/2017/04/improving-your-happiness-according-to-an-expert/
Global political economy: challenges for small countries
The end of
unipolarity and advent of multipolarity has encouraged the creation of spheres
of interest, both because the great powers cannot afford each other as
permanent adversaries (may need each other in critical situations, like threat
of radicalism) and because Western value-promotion has been downgraded or
disappeared. With the election of Donald Trump all three major powers – USA,
China and Russia - play pure geopolitics with zero regard for universal values.
With weakened international institutions, this generally reduces the influence
of the smaller states; however friendlier great power relations with small
states will reinforce this tendency. Still, some small states (like three
Baltic States) are becoming much more exposed than others, depending on their
location.
Thus, there are
logically four main possible reactions (two options and additional path) to the
new stage in global political economy; first, two options:
One, is the denial
of the present liberal market situation and desperate attempts to “please all
sides” (either by additional defense spending or if fear of losing EU funds).
Second, is movement towards an equidistant posture between the great powers and
present different economic models in EU (although staying close to the EU’s
core) and with strong attempts to “find their own niche” in elaborating sound
national political economies’ guidelines.
Small states
among EU and global powers are located in the present solidified Russian sphere
of interest, which doesn’t make their political economy easier to formulate.
They will need to come to terms with their neighbors, whether great or not
very, after a period of defiance. This will, at best, can take the path of, at best,
closer ties among the three Baltic States, so-called “common Baltic course”.
The TEU Preamble mentioned the EU new motto (instead of the
previous “united in diversity”) to “continue the process of creating an ever closer union among the peoples of
Europe, in which decisions are taken as closely as possible to the citizen
in accordance with the principle of subsidiarity” (italics mine, EE). See:
Lisbon Treaty: Consolidated version, TEU, Preamble, Official Journal of the
European Union C 83/13, 30.03.2010.