Latvia (04/06)For the most current version of this Note, see Background Notes A-Z.
PROFILE OFFICIAL NAME: Geography People Government Economy (2002 data) GEOGRAPHY Today, Latvia is slightly larger than Denmark, Estonia, the Netherlands, and Switzerland. Its strategic location has instigated many wars between rival powers on its territory. As recently as 1944, the U.S.S.R. granted Russia the Abrene region on the Livonian frontier. PEOPLE Latvians look like and consider themselves Nordics, evidenced through the strong cultural and religious influences gained over centuries during Germanic and Scandinavian colonization and settlement. Eastern Latvia (Latgale), however, retains a strong Polish and Russian cultural and linguistic influence. This highly literate society places strong emphasis upon education, which is free and compulsory until age 16. Most Latvians belong to the Evangelical Lutheran Church; a sizable minority are Russian Orthodox, and Eastern Latvia is predominantly Roman Catholic. Historically, Latvia always has had a fairly large Russian, Jewish, German, and Polish minority, but postwar emigration, deportations, and Soviet Russification policies from 1939-89 dropped the percentage of ethnic Latvians in Latvia from 73% to 52%. In an attempt to preserve the Latvian language and avoid ethnic Latvians becoming a minority in their own country, Latvia's language law, education law, and citizenship law have caused many noncitizen resident Russians concern over their ability to assimilate, despite Latvian legal guarantees of universal human and civil rights regardless of citizenship. Written with the Latin alphabet, Latvian is the language of the Latvian people and the official language of the country. It is an inflective language with several analytical forms, three dialects, and German syntactical influence. The oldest known examples of written Latvian are from a 1585 catechism. The Soviets imposed the official use of Russian, so most Latvians speak Russian as a second or first language while the resident Slavic populace generally speaks Russian as a first language. HISTORY German sailors shipwrecked on the Daugava River in 1054 had inhabited the area, which led to increasing German influence. Founded by the Germanic Bishop Alberth of Livonia in 1201, Riga joined the Hanseatic League in 1285 and shared important cultural and economic ties to the rest of Europe. However, the new German nobility enserfed the peasantry and accorded non-Germanic peoples only limited trading and property rights. Subsequent wars and treaties ensured Livonia's partition and colonization for centuries. The Commonwealth's successes during the Livonian Wars (1558-83) united the Latvian-populated duchies of Pardaugava, Kurzeme, and Zemgale, but the Polish-Swedish War (1600-29) granted Sweden acquisition of Riga and the Duchy of Pardaugava, minus Latgale, leaving Latvia again split ethnically. In turn, victory over Sweden in the Great Northern War (1700-21) gave Russia control over the Latvian territories. From 1804 onward, a series of local decrees gradually weakened the grip of German nobility over peasant society, and in 1849 a law granted a legal basis for the creation of peasant-owned farms. Until the 1860s, there still was little sense of a Latvian national identity, as both serfdom and institutional controls to migration and social mobility limited the boundaries of the peasants' intellectual and social geography. The large baronic estates caused a lack of available farmland for an increasing population, creating a large landless, urban class comprising about 60% of the population. Also in the face of stricter Russification policies, the Baltic German clergy and literati began to take a more benevolent interest in the distinctive language and culture of the Latvian peasantry. These patrons--with such Lettish names as Alunans, Barons, Krastins, Kronvalds, Tomsons, and Valdemars--soon formed the Young Latvian Movement, whose aim was to promote the indigenous language and to publicize and counteract the socioeconomic oppression of Latvians. By 1901, "Jauna Strava" had evolved into the Latvian Social Democratic Party. Following the lead of the Austrian Marxists, the LSDP advocated the transformation of the Russian Empire into a federation of democratic states (to include Latvia) and the adoption of cultural autonomy policy for extraterritorial ethnic communities. In 1903, the LSDP split into the more radically internationalist Latvian Social Democratic Worker's Party and the more influential Latvian Social Democratic Union (LSDU), which continued to champion national interests and Latvia's national self-determination, especially during the failed 1905 Revolution in Russia. The onset of WWI brought German occupation of the western coastal province of Kurzeme, and Latvians heroically countered the invasion with the establishment of several regiments of riflemen commanded by Czarist generals. As a defensive measure, Russia dismantled more than 500 local Latvian industries, along with technological equipment, and relocated them to central Russia. The sagging military campaign generally increased Latvian and LSDU support for the Bolsheviks' successful October Revolution in 1917, in the hopes of a "free Latvia within free Russia." These circumstances led to the formation of the Soviet "Iskolat Republic" in the unoccupied section of Latvia. In opposition to this government and to the landed barons' German sympathies stood primarily the Latvian Provisional National Council and the Riga Democratic Bloc. These and other political parties formed the Latvian People's Council which on November 18, 1918 declared Latvia's independence and formed an army. The new Latvian Army faced rogue elements of the retreating German Army and squared off in civil war against the Soviet Red Army, comprised greatly of the former Latvian Riflemen. Soviet power resumed in Latvia one month later on December 17 by order of the Latvian SSR, which forcefully collectivized all land and nationalized all industries and property. By May 22, 1919, the resurgent German Army occupied and devastated Riga for several days. In response, the Latvian Army managed to win a decisive battle over the combined German-Red Army forces and thereafter consolidated its success on the eastern Latgale front. These developments led to the dissolution of the Soviet Latvian government on January 13, 1920, and to a peace treaty between Latvia and Soviet Russia on August 11 later that year. By September 22, 1921, Latvia was admitted to the League of Nations. Having obtained independent statehood in which Latvians were an absolute majority, the government headed by Prime Minister Ulmanis declared a democratic, parliamentary republic. It recognized Latvian as the official language, granted cultural autonomy to the country's sizeable minorities, and introduced an electoral system into the Latvian constitution, which was adopted in 1922. The decade witnessed sweeping economic reform, as war had devastated Latvian agriculture, and most Russian factories had been evacuated to Russia. Economic depression heightened political turmoil, and on May 15, 1934, Prime Minister Ulmanis dismissed the parliament, banned outspoken and left-wing political parties, and tightened authoritarian state control over Latvian social life and the economy. The effects of the infamous Molotov-Ribbentrop agreement of 1939 steadily forced Latvia under Soviet influence until August 5, 1940, when the Soviet Union finally annexed Latvia. On June 14 of the following year, 15,000 Latvian citizens were forcibly deported and a large number of army officers shot. The subsequent German occupation witnessed the mobilization of many Latvians into Waffen SS legions, while some Latvians joined the Red Army and formed resistance groups; others fled to the West and East. By 1945, Latvia's population dropped by one-third. After the war, the U.S.S.R. subjected the Latvian republic to a scale of social and economic reorganization which rapidly transformed the rural economy to heavy industry, the strongly ethnically Latvian population into a more multiethnic structure, and the predominantly peasant class into a fully urbanized industrial worker class. As part of the goal to more fully integrate Latvia into the Soviet Union, on March 25, 1949, Stalin again deported another 42,000 Latvians and continued to promote the policy of encouraging Soviet immigration to Latvia. The brief "Krushchev thaw" of the 1950s ended in 1959, when the Soviets dismissed Latvian Communist Party and government leaders on charges of "bourgeois nationalism" and replaced them with more aggressive hardliners, mostly from Russia. "Perestroika" enabled Latvians to pursue a bolder nationalistic program, particularly through such general issues as environmental protection. In July 1989, the Latvian Supreme Soviet adopted a "Declaration of Sovereignty" and amended the Constitution to assert the supremacy of its laws over those of the U.S.S.R. Pro-independence Latvian Popular Front candidates gained a two-thirds majority in the Supreme Council in the March 1990 democratic elections. On May 4, the Council declared its intention to restore full Latvian independence after a "transitional" period; 3 days later, Ivars Godmanis was chosen Council of Ministers Chairman, or Prime Minister. In January 1991, Soviet political and military forces tried unsuccessfully to overthrow the legitimate Latvian authorities by occupying the central publishing house in Riga and establishing a "Committee of National Salvation" to usurp governmental functions. Seventy-three percent of all Latvian residents confirmed their strong support for independence March 3 in a nonbinding "advisory" referendum. A large number of ethnic Russians also voted for the proposition. Latvia claimed de facto independence on August 21, 1991 in the aftermath of the failed Soviet coup attempt. International recognition, including the U.S.S.R., followed. The United States, which had never recognized Latvia's forcible annexation by the U.S.S.R., resumed full diplomatic relations with Latvia on September 2. GOVERNMENT AND POLITICAL CONDITIONS In autumn 1991 Latvia reimplemented significant portions of its 1922 constitution, and in spring 1993 the government took a census to determine eligibility for citizenship. After almost 3 years of deliberations, Latvia finalized a citizenship and naturalization law in summer 1994, which was further liberalized in 1998. By law, those who were Latvian citizens in 1940, and their descendants (regardless of ethnicity), could claim citizenship. Forty-one percent of Latvia's population is ethnically non-Latvian, yet almost three-fourths of all residents are citizens of Latvia Naturalization criteria include a conversational knowledge of Latvian, a loyalty oath, renunciation of former citizenship, a 5-year residency requirement, and a basic knowledge of the Latvian history. Dual citizenship is allowed for those who were forced to leave Latvia during the Soviet occupation and adopted another citizenship. Convicted criminals, agents of Soviet intelligence services, and certain other groups also are excluded from becoming citizens. On March 19, 1991 the Supreme Council passed a law explicitly guaranteeing "equal rights to all nationalities and ethnic groups" and "guarantees to all permanent residents in the Republic regardless of their nationality, equal rights to work and wages." The law also prohibits "any activity directed toward nationality discrimination or the promotion of national superiority or hatred." In the June 5-6, 1993 elections wherein more than 90% of the electorate participated, eight of Latvia's 23 registered political parties passed the 5% threshold to enter parliament. The Popular Front, which spearheaded the drive for independence with a 75% majority in the parliamentary elections in 1990, did not qualify for representation. The centrist "Latvia's Way" party received a 33% plurality of votes and joined with the Farmer's Union to head a center-right wing coalition government. Through a U.S. initiative, on April 30, 1994 Latvia and Russia signed a troop withdrawal agreement. Russia withdrew its troops by August 31, 1994, and maintained several hundred technical specialists to staff an OSCE-monitored phased-array ABM radar station at Skrunda until the facility was destroyed in 1995. The September 30-October 1, 1995 elections brought forth a deeply fragmented parliament with nine parties represented and the largest party commanding only 18 of 100 seats. Attempts to form right-of-center and leftist governments failed; 7 weeks after the election, a broad but fractious coalition government of six of the nine parties was voted into office under Prime Minister Andris Skele, a widely popular, nonpartisan businessman. In the 1998 elections, the Latvian party structure began to consolidate with only six parties obtaining seats in the Saeima. Andris Skele's newly formed People's Party garnered a plurality with 24 seats. Though the election represented a victory for the center-right, personality conflicts and scandals within the two largest right of center parties--Latvia's Way and the People's Party--prevented stable coalitions from forming. Two shaky governments under Vilis Kristopans and Andris Skele quickly collapsed in less than a year. In May 2000, a compromise candidate was found in the form of Andris Berzins, the then Latvia's Way mayor of Riga. His four-party coalition lasted until parliamentary elections in October 2002. Those elections left Latvia's Way, for the first time since 1993, with no seats in parliament. Einars Repse's New Era Party, which ran on an anti-corruption platform, gained the most seats, and Repse headed a four-party coalition government until his abrupt resignation in February 2004 over issues relating to personalities and management of the ruling coalition. A minority government led by Greens and Farmers Union leader Indulis Emsis, including the People's Party and the First Party and with the tacit support of leftist parties, took office on March 9, 2004. The new government was focused on smoothing Latvia's entry into NATO and the European Union. Latvia officially became a member of the North Atlantic Treaty Organization on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC. Latvia joined the European Union on May 1, 2004. Prime Minister Emsis's government collapsed on October 28, 2004 after parliament voted against the 2005 budget. A new coalition government, led Prime Minister Aigars Kalvitis, took office on December 2, 2004. In 1999, the Saeima elected Vaira Vike-Freiberga, a compromise candidate with no party affiliation, to the presidency. Though born in Riga in 1937, she settled in Canada during the years of the Soviet occupation, becoming a well-respected academic in the subject of Latvian culture and psychology. Since her election, she has become one of the most popular political figures in Latvia. She was overwhelming re-elected by parliament for another 4-year term in June 2003. Latvia's flag consists of two horizontal, maroon bands of equal width, divided by a white stripe one-half the width. The national holiday is November 18, Independence Day. Principal Government Officials Latvia maintains an embassy in the United States at 2306 Massachusetts Ave NW, Washington DC 20008 [tel: (202) 328-2840]. ECONOMY Privatization in Latvia is almost complete. Virtually all of the previously state-owned small and medium companies have been privatized, leaving in state hands the electric utility, the Latvian railway company, and the Latvian postal system, as well as state shares in several politically sensitive enterprises. Despite the lack of transparency of the early stages of the privatization process, and certain difficulties in privatization of some of the largest companies, Latvian privatization efforts have led to the development of a dynamic and prosperous private sector, which accounted for 70% of GDP in 2002. Foreign investment in Latvia remains high, as both Western and Eastern investors are trying to establish a foothold in the new EU member state, as well as to take advantage of Latvia's stable macroeconomic environment, central location in the region, and cheap labor. Representing 7.1% of Latvia's total foreign direct investment, the U.S. FDI stock in Latvia stood at $184 million at the end of 2002. In the same year, U.S. goods and services accounted for 1.6% of Latvia's total imports, while exports to the United States accounted for 4.2% of Latvia's total exports. Latvia is a member of the World Trade Organization since 1999. Latvia and the United States have signed treaties on investment, trade, and intellectual property protection and avoidance of double taxation. In the long term, continued high economic growth in Latvia will depend on further improvements of the business environment, particularly successful drive to reduce corruption and strengthen the rule of law, and on Latvia's ability to use the opportunities presented by EU membership. DEFENSE FOREIGN RELATIONS Latvia maintains embassies in the United States, Austria, Belarus, Belgium, Canada, the People's Republic of China, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Israel, Italy, Lithuania, Netherlands, Norway, Poland, Portugal, Russia, South Africa, Sweden, Ukraine, the United Kingdom, and Uzbekistan. It also operates missions to the United Nations in New York City and Geneva, the European Council, and non-member representation to the EU, Chemical Weapons Nonproliferation Organization, the OSCE, World Trade Organization, and the UN Council on Food and Agriculture. It also is represented at NATO. Latvia has a Consulate General in Russia; Consulates in Belarus and Russia; Honorary Consulates General in Australia, Cyprus, India, Israel, and Norway; and Honorary Consulates in Argentina, Australia, Austria, Belarus, Brazil, Canada, Chile, Cyprus, Denmark, Egypt, Finland, France, Georgia, Germany, Greece, Iceland, Ireland, Israel, Italy, Jordan, Kazakhstan, Kyrgyzstan, Lebanon, Luxembourg, Mexico, Moldova, Netherlands, Norway, Pakistan, Philippines, Poland, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, and Venezuela. Russia expresses concern for how Latvia's language and naturalization laws affect Latvia's Russian-speaking population. Russians comprised 29% of the population in 2003. In turn, Latvia is interested in the welfare of ethnic Latvians still residing in Russia. U.S.-LATVIAN RELATIONS Principal U.S. Officials The U.S. Embassy in Latvia is located at Raina Boulevard 7, Riga [tel. (371) 703-6200]. |
