Book review, Crisis, Education and Science, EU – Baltic States, Financial Services, Latvia

Prime Minister Valdis Dombrovskis acknowledges that internationally recognized economists and experts regard Latvia as a model in overcoming the economic crisis. Within a short period of time the government has implemented a significant budget consolidation and structural reforms to attain progressive, stable and sustainable national development. ”We would like to pass on our experience to the Latvian and international community thus restoring Latvia’s good name in the world”, mentioned the Prime Minister. 

The authors analyse the circumstances and decisions which caused the solvency crisis in Latvia in late 2008 and how was it managed – how did the Latvian government act under the influence of the financial crisis, how were the tough decisions made, which brought the state back to growth”.

The amendments to the 2009 budget drafted by the first Cabinet of Ministers headed by Prime Minister Valdis Dombrovskis at the time of imminent national insolvency in the mid-2009 launched a progress towards the restoration of financial stability and strict fiscal discipline thus restoring the confidence in the implemented fiscal policy and preventing further economic downturn. While the 2010 budget made it possible to stabilize the economic situation and continued the implementation of the economy heating measures thus accelerating the absorption of the EU funds and making it possible for Latvia to return to economic growth.

The 2011 budget was drafted during increasing economic instability in Europe and it was a decisive moment to demonstrate Latvia’s capability to move towards sustainable growth by increasing its competitiveness in foreign markets. The gradual economic recovery, industrial development, export growth and more active combating of the”shadow economy” and tax evasion are those factors which have allowed to increase the revenue projections leading to further reduction of budget deficit and laying the foundations for drafting of the 2012 budget that would meet the Maastricht criteria and make it possible to join the Eurozone.

The first presentation of the book will be held on May 27, at 12.00 in the premises of the Stockholm School of Economics in Rīga. The experts in economics, teaching staff of the universities, politicians, social partners and representatives of NGOs, historians, entrepreneurs are invited to participate in the event.