...Latvia: Navigating the Strait of Messina | | Introduction This report indicates the history of Latvia country and the transition period of independency and the shifting to market economy. The country growth was very fast until 2008. In December 2008, facing the possibility of financial collapse and a currency crisis, they asked for a rescue and they received a $10.5 billion package funded by the International Monetary Fund (IMF), World Bank, EU, and several countries in the region. After that, it talks about the possibility that could help Latvia to restore a sustainable growth. Which are either Devalue the national currency or maintain the peg and attempt an “internal devaluation”. Executive Summary 1. To study economic adjustment under a fixed exchange rate system 1. Explore the meaning of a "sudden stop" in capital flows and causes of Latvia's economic boom and busts. 2. Assess the tradeoffs involved in internal and external devaluation in the Eurozone. 3. Consider historical, political, economic, and other factors that influenced Latvia's policy decisions and their outcomes. 4. Predict the long-term impact of Latvia's policy decisions during the crisis. Contents Introduction 1 Executive Summary 2 Analysis 4 Analysis 1) Historical, political, economic, and other factors that influenced Latvia's policy decisions and their outcomes (Learning objective# 5) | 2) Problems and the crisis and its causes...
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...Study 5 Economic Turmoil in Latvia September 11, 2014 General Description and Central Issue of the Case The Republic Latvia is a country of 24,938 square miles on the Baltic Sea, with 310 miles of shoreline. The country shares borders with Lithuania, Belarus, Estonia, and Russia. Latvia, Lithuania, and Belarus are three Baltic States that gained independence after the fall of the Soviet Union (Hill, 2013). Latvia declared independence on May 4, 1990. The population of Latvia is 2,165,165 with an ethnic makeup of Latvian 61.1%, Russian 26.2%, Belarusian 3.5%, Ukrainian 2.3%, Polish 2.2%, Lithuanian 1.3%, other 3.4% (CIA, 2014). Natural resources include peat, limestone, dolomite, amber, hydropower, timber, and arable land. Latvia is often too wet and in need of constant drainage. Approximately 3,953,686 acres of farmland or 85% of Latvia has been improved by drainage for agriculture. Latvia’s primary agricultural products are grain, rapeseed, potatoes, vegetable, pork, poultry, milk, eggs, and fish. Industry includes processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, and electronics (CIA, 2014). The labor force sector that makes up Latvia’s GDP composition is 4.9% agriculture, 25.7% industry, and 69.4% services. Taxes make up 35.9% of Latvia’s GDP, with a public debt of 39.2%. The unemployment rate is 9.8%, and the industrial growth rate is 4.2%. Latvia has 10.9 billion in revenue and...
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...Latvia, a country of 2.5 million people, is one of the three Baltic states that gained independence after the collapse of the Soviet Union. For most of the 2000s, the economic story in Latvia has been one of rapid economic growth powered by a vibrant private sector. The country joined the European Union in 2004 and pegged its currency, the lat, to the value of the euro. The eventual goal for Latvia was to adopt the euro. To maintain parity against the euro, Latvia used a variation of a system known as a currency board, where local currency in circulation is backed, unit for unit, by re- serves of foreign currency, which in Latvia’s case was primarily the euro. From 2006 onward repeated warnings indicated the Latvian economy might be overheating. Increasingly, an economic boom was being sustained by inflows of foreign money into Latvian banks, particularly from Russia. For their part, the banks were using these funds to finance aggressive lending, including leading to an increasingly frothy property market, with prices being bid up by borrowers who could get access to cheap credit. Critics urged the government to rein in the lending by raising interest rates, but to no avail. What the government failed to do, the market ultimately did anyway. The boom started to unravel in 2008 as a global economic crisis that began with overvaluation in the U.S. property market rolled around the world. For Latvia, the trouble began when the nation’s largest private bank, Parex, revealed it was...
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...tackling the shadow economy in Estonia, Latvia and Lithuania: a tax morale approach Colin C. Williams & Ioana A. Horodnic To cite this article: Colin C. Williams & Ioana A. Horodnic (2015) Explaining and tackling the shadow economy in Estonia, Latvia and Lithuania: a tax morale approach, Baltic Journal of Economics, 15:2, 81-98, DOI: 10.1080/1406099X.2015.1114714 To link to this article: http://dx.doi.org/10.1080/1406099X.2015.1114714 © 2015 The author(s). Published by Routledge Published online: 12 Nov 2015. Submit your article to this journal Article views: 1004 View related articles View Crossmark data Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=rbec20 Download by: [95.158.49.18] Date: 20 April 2016, At: 09:43 Baltic Journal of Economics, 2015 Vol. 15, No. 2, 81–98, http://dx.doi.org/10.1080/1406099X.2015.1114714 Explaining and tackling the shadow economy in Estonia, Latvia and Lithuania: a tax morale approach Colin C. Williamsa* a and Ioana A. Horodnicb Management School, University of Sheffield, Sheffield, UK; bFaculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Iași, Romania Downloaded by [95.158.49.18] at 09:43 20 April 2016 (Received 26 November 2014; accepted 28 October 2015) To explain the shadow economy in the Baltic states of Estonia, Lithuania and Latvia, this paper evaluates the relationship...
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...European Union – Yes or No For now we have been member of the EU about 11 years. During that time have come out good sides and some bad sides of this membership. For small country like Estonia is quite important to belong into some union. Mostly because of our safety. Our neighbor is not very kind one – Russia. And for that we are member in NATO. I think that belonging into EU is best option for us in economic terms. We are too small to be completely independent and free. We do not have special mineral resource like Norway or specific service like Switzerland has its bank services. To them these values give freedom to be independent. For my opinion till now we have got more from EU than we have to have to pay. Our agriculture is much better shape at the moment than it would be if we are not in EU. Estonia has got agricultural support a lot and it has improved our agricultural life a lot. I have seen several village centers build up with help of PRIAs support money. Thanks to that village people has places to gather together. The other big thing is that our borders in EU are open now. It promotes easier travelling which improves our tourism. And as well – it helps to go to work to our member country. As well known – in Finland work about 60 thousand Estonians. It is quite big amount. And not very good to Estonia – our country life is not so active anymore because there is no work and because of that younger people goes to cities or foreign countries. Prices increase as...
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...RESEARCH FINDINGS (SUPPORTING DOCUMENTS/DETAILS OF EMERGING TREND[S] OF THE IDENTIFIED COUNTRY MARKET) References: http://www.portal.euromonitor.com/portal/analysis/tab TOP FIVE CONSUMER TRENDS Consumers remain optimistic about their financial futures In recent years Latvian consumers have come back from several challenges. As noted in a recent article in the Financial Times, “The Baltic state of Latvia endured a harsh recession following the global financial crisis, with 25% pay cuts in the public sector and an exodus of young workers to friendlier economic climates. However, tough austerity measures meant its economy was one of the first in Europe to bounce back”. Consumer confidence wavered slightly in late 2013 due to uncertainty about transition to the Euro. But the changeover in early 2014 worked relatively well, with little immediate price or inflation rises and, as a result, optimism returned. According to a recent study of consumers and households by the Swedbank Institute of Private Finance, 37% of Latvians believe that there were no significant changes to their family budgets in 2014; 30% believe that their financial situations improved; and 30% believed their financial situations got worse. Compared to 2013 results, Latvians were clearly more optimistic. At the same time, the same study identified consumers’ primary concerns over the coming short term. These included rising electricity costs (cited by 72% of respondents), rising food costs (57% of respondents) and...
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...In order to develop an analysis concerning a job, we have chosen the most popular method to collect information : interview. The interview took place on the 22nd September and was an individual meeting with the members of our group, during which the respondent was questioned about her job caracteristics. We choosed an informal place where to meet, in order to relax in an enjoyable environment, suitable for semi-formal interview. We had already prepared some questions to ask and we got the answers which helped us building this job analysis. It was a quite smooth and clear conversation and we did not face any surprise during the oral survey. Our respondent , whose name isBulestone, left us her phone number, on which we are able to contact her in case of unexpected uncertainty - 000000000. The company that employs Ms. Bulestone is ------. This is a company that aims at making safer, cheaper and faster the transportation of goods in the current market. They import and export products all over Europe, especially in eastern Europe and Scandinavia. They always work in compliance with the requirements of a customer. After having descovered his needs, they choose the most adapted vehicle, appoint optimal freight transportation variant and routes, solve the problems arised in the course of transporting freight „from-door-to-door“. Job identification. Our interviewee, Lizza Bulestone is working as a accountant for the company, ltd. Dilisas in the Financial Section....
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...The Baltic Sea is surrounded by nine countries: Denmark, Finland, Norway, Germany, Poland, Sweden, Lithuania, Latvia, and Estonia. Covering 103,000 square kilometers (40,000 square miles), it receives runoff from a massive area covering about 1.6 million square kilometers (630,000 square miles) and containing more than 70 million people. Approximately 15% of the world's industrial production occurs in the sea's basin. The Baltic Sea was a relatively clean body of water before the mid-1960s. Today it is one of the most polluted surface waters in the world. A wide assortment of pollutants sully its waters. They come from factories, sewage treatment plants, agriculture, forestry, and shipping. The Baltic Sea is extremely vulnerable to pollution for other reasons as well. First, its waters tend to stratify Freshwater flowing into the sea from its many tributaries mixes incompletely with the saltwater, forming an upper layer with a slightly lower salt content. The saltier bottom layer is heavier. This stratification tends to reduce exchange between the layers, which results in extremely low oxygen levels in deeper waters. Any factors such as pollution that lower oxygen levels further can have a devastating effect on bottom-dwelling and deep-water sea life. Second, the Baltic's connection with the North Sea is a narrow channel, so it takes about 50 years for the Baltic...
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...Ksenija Tihomirova November 29th, 2015 Professor Alp Tuncaci Politics of Russia and EE 01:790:381 Article Reaction #2 The article that I chose to respond to for the November reaction paper assignment was published online on the Washington Free Beacon website on November 4th, 2015 and was gathered by Daniel Wiser. Being a relatively new editorial, this piece of writing tends to grasp and touch upon recent events sprouting around Russia and the influence it aspires on the global spectrum. One of these events, a matter to be more precise, is concerning the Russian mass media and the role it plays in certain parts of the world, specifically the Eastern Europe; hence the name of the article- “Russia’s Propaganda Creating ‘Separate Reality’ in Eastern Europe”. Mass media, as we might have experienced and noticed that already, has a tendency to be biased towards one or another sphere of authority. The aforesaid tabloid, therefore, suggests that Russia’s publicity in the near West (Eastern Europe that is) is not just predisposed to pro-Russian news, but is actually forcing, to a certain extent, all the proRussian activities and procedures to the ethnic Russian minorities living in that area. That being the case, the article argues just how through “the weaponization of information, the Kremlin uses news and analysis as a means of provoking strong negative emotions, potentially leading to hatred, incitement and, ultimately, the justification of violence” (Wiser)...
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...Baltic Energy Forum for Students 2012 Cooperation of the Baltic companies to get along with regulations of the EU [Sélectionnez la date] Prepared by Vytautas Magnus University students: Povilas Brilius Žygintas Dovydėnas Karolina Mališauskaitė Table of contents Introduction 3 Key aspects of the Baltic States’ energy companies 3 Common situation 5 Context of the European Union 7 Conclusions and recommendations 8 References 9 Introduction Recent events in global and local spheres are important to Baltic States’ energy economics. Among those are a) late collaboration initiatives between Baltic States’ governments to endorse regional projects in order to get connected into the EU energy network b) new EU regulatory frameworks, in particular applying to Baltic States energy markets situation c) the declining EU position in terms of energy sector competitiveness. These facts require deeper and more thorough investigation into Baltic energy market players and their abilities to meet demands of changing environment. Authors of this short paper seek to...
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...Riga Analysis Report For this euro-city analysis report, I’ve chosen Riga, Latvia. Riga has longitudinal and latitudinal coordinates of approximately 6.9° N, 24.1° E. Roughly 45 miles northeast of Jelgava, Riga is situated just off the southern shores of the Baltic Sea. Located between 1 to 10 meters above sea level, Riga is home to forests, sandy plains, lakes, and rivers. Most notably, the Daugava River runs through the city and empties off into the Gulf of Riga. Latvia is a democratic parliamentary republic with Riga being home to their Federal government as well as their local city government. Riga is the most populous city of the Baltic States, with an estimated population of 650,000 inhabitants. In the late 12th century, Riga became an ancient settlement for the Livs and Kurs. The Ridzene River flowing into the Daugava River created a natural harbor for sea-bound ships. This would begin to serve as a major trade route from the Viking age on forward. Albert of Buxhoevden arrived in 1199 with ships of Crusaders and established the Brothers of the Sword military order. The city of Riga, founded in 1201, was the seat of Albert’s bishopric and a base for conquering the lands of Livonia to the northeast, Courland to the west, and Semigallia to the south. The city joined the Hanseatic League in 1282 and became the dominant center of trade on the Baltic Sea’s eastern shore. The Old Town, the historic center of Riga, was designated a UNESCO World Heritage Site. The canal...
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...Culture Directorate C: Lifelong learning: higher education and international affairs European Institute of Innovation and Technology; economic partnership Public open tender EAC/37/2009: CONTENTS CONTENTS INTRODUCTION Scope of report Introduction to UBC Elements in the UBC Ecosystem 5 5 5 5 AIMS & METHODOLOGY Introduction Objective Process for selection Basis for selection Countries considered in the selection of the cases Case study partners 7 7 7 7 8 8 9 CASE STUDIES Case study key insights Classification of countries Nature of case study Case study quick-find 10 10 12 12 13 NORTHERN Europe Case 1: SEA, Denmark Case 2: ETM, Estonia Case 3: Demola, Finland Case 4: REAP, Ireland Case 5: Mobility at UL, Latvia Case 6: CSE, Sweden Case 7: SMIL, Sweden Case 8: SPEED, UK Case 9: IDI/Digital City, UK Case 10: Acua Limited, UK 18 19 25 30 35 41 46 52 57 63 70 76 80 84 90 96 EASTERN EUROPE Case 11: GIS, Bulgaria Case 12: TTO Pécs, Hungary Case 13: The Science and Economy Project, Poland Case 14: WCTT, Poland Case 15: Q-PlanNet, Romania 75 1 © Science-to-Business Marketing Research Centre CONTENTS SOUTHERN EUROPE Case 16: MUHC, Malta Case 17: PNICube, Italy Case 18: TTO Milano, Italy Case 19: InnoCash, Spain Case 20: INNOVA, Spain Case 21: INNPACTO, Spain 102 103 108 113 117 122 127 133 140 145 150 155 160 167 173 178 WESTERN EUROPE Case 22: Science Fit, Austria Case 23: FFG, Austria Case 24: TTI, Belgium Case 25:...
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...When the global financial crisis or “the four horsemen of financial crises: “sudden stops” in capital inflows, asset price collapses, recessions and fiscal deficits”2 hit, the Baltic states were no exception. There are different views about the exit strategy from the financial crisis of the Baltic states. Defenders point to recent rapid growth. One can look at the GDP annual growth rates for years 2006-2014 for the Baltic states - the GDP decreased rapidly during crisis, reaching its lowest point in 2009 for all three Baltic states. After 2009 the GDP annual growth rates increased, howerver, at the end of 2012, GDP of, e.g., Latvia was still below its pre-crisis level; Lithuania and Estonia had done better. Taking a look also at the GNI annual growth rates for years 2006-2014 for the Baltic states, the decrease in the GNI rate, e.g., for Latvia continued until 20103, showing that even though the value of goods and services produced in the country increased, less of it than suggested by the GDP actually stayed in the country.4 Nevertheless, the Baltic states were able to combine a huge external adjustment with restoration of growth.5 Along with other means to overcome the unexperienced impact of the global financial crisis, all three Baltic states chose to decrease public spending and implement a wide range of structural reforms instead of...
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...1. A. What country ran the area after WWII? A: Russia occupied most of the countries in Eastern Europe after WWII. B. How do you think the two world wars affected the people of Poland? I think the two world wars affected Poland’s economy because of the war damage, and it lost many of its citizens. 2. A. How do the languages spoken in Poland and the Balkan republics affect the region’s history? The languages spoken there reflect on who ruled the country the most in the past. Polish is related to the languages of countries in the south, and Estonian is similar to Finnish. Latvia and Estonia, on the other hand, were under Swedish rule for a long time and because the Swedish are mostly Lutheran, most people in Latvia and Estonia are Lutheran as well. B. Why do you think people across the region practice many of the same customs? People across this region practice the same customs because they all are linked together from being under Soviet rule for so many years. 3. A. What is an industry that has grown in the region since the fall of the Soviet Union? One industry that has grown since the fall of the Soviet Union is tourism. The Americans have started visiting the countries that used to be under Soviet rule because they did not like to go there when it was under Soviet rule, because the Americans didn’t like the Soviets. B. How did Soviet rule hurt the region’s economy? Soviet rule hurt the region’s economy because the Soviets did not create a decent infrastructure...
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...Effective Logistics Is an Essential Factor Affecting the Finnish Economy One of the general trends of the transport and logistics sector is the growing demand for mobility. In the EU area transport has a total expenditure of around 1000 billion euros, generating over 10 % of the Union’s GDP. It is also a very vital issue for Finland’s economy. The following brief article illustrates logistics questions from the Finnish point of view and gives some examples of the current logistics R&D activities of VTT, the Technical Research Centre of Finland. Photo: VTT Remote position cReates challenges foR the value chain in finland Because of Finland’s geographical location, maritime transport is vital to the Finnish economy. Maritime transport is by far the most important form of transport in the Finnish export trade. The Baltic Sea provides a transportation route that connects Finland with other parts of Europe, our most important market. About 70 % of Finnish imports and about 90 % of Finnish exports use seaborne transport. Thus it is vital for the Finnish economy to find sound and reliable solutions for yearround service. Here the winter provides challenges for Finnish society due to the fact that our coast-line is ice covered for several months every year. Competitiveness in logistics is an important factor for us, and all means to improve our effectiveness are vital. The high price of oil is also significantly affecting the profit margins of the transport sector. geneRal dRiveRs...
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