Banking in Latvia

Wiki Latvia

 
Introduction ::LATVIA
Background:

The name "Latvia" originates from the ancient Latgalians, one of four eastern Baltic tribes that formed the ethnic core of the Latvian people (ca. 8th-12th centuries A.D.). The region subsequently came under the control of Germans, Poles, Swedes, and finally, Russians. A Latvian republic emerged following World War I, but it was annexed by the USSR in 1940 - an action never recognized by the US and many other countries. Latvia reestablished its independence in 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 30% of the population) remains of concern to Moscow. Latvia joined both NATO and the EU in the spring of 2004.




Geography ::LATVIA
Location:

Eastern Europe, bordering the Baltic Sea, between Estonia and Lithuania

Geographic coordinates:

57 00 N, 25 00 E

Map references:

Europe

Area:

total: 64,589 sq km
country comparison to the world: 124
land: 62,249 sq km
water: 2,340 sq km

Area - comparative:

slightly larger than West Virginia

Land boundaries:

total: 1,382 km
border countries: Belarus 171 km, Estonia 343 km, Lithuania 576 km, Russia 292 km

Coastline:

498 km

Maritime claims:

territorial sea: 12 nm
exclusive economic zone: 200 nm
continental shelf: 200 m depth or to the depth of exploitation

Climate:

maritime; wet, moderate winters

Terrain:

low plain

Elevation extremes:

lowest point: Baltic Sea 0 m
highest point: Gaizina Kalns 312 m

Natural resources:

peat, limestone, dolomite, amber, hydropower, timber, arable land

Land use:

arable land: 28.19%
permanent crops: 0.45%
other: 71.36% (2005)

Irrigated land:

8 sq km
note:land in Latvia is often too wet and in need of drainage not irrigation; approximately 16,000 sq km or 85% of agricultural land has been improved by drainage (2008)

Total renewable water resources:

49.9 cu km (2005)

Freshwater withdrawal (domestic/industrial/agricultural):

total: 0.25 cu km/yr (55%/33%/12%)
per capita: 108 cu m/yr (2003)

Natural hazards:

NA

Environment - current issues:

Latvia's environment has benefited from a shift to service industries after the country regained independence; the main environmental priorities are improvement of drinking water quality and sewage system, household, and hazardous waste management, as well as reduction of air pollution; in 2001, Latvia closed the EU accession negotiation chapter on environment committing to full enforcement of EU environmental directives by 2010

Environment - international agreements:

party to: Air Pollution, Air Pollution-Persistent Organic Pollutants, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Ship Pollution, Wetlands
signed, but not ratified: none of the selected agreements

Geography - note:

most of the country is composed of fertile low-lying plains with some hills in the east




People and Society ::LATVIA
Nationality:

noun: Latvian(s)
adjective: Latvian

Ethnic groups:

Latvian 59.3%, Russian 27.8%, Belarusian 3.6%, Ukrainian 2.5%, Polish 2.4%, Lithuanian 1.3%, other 3.1% (2009)

Languages:

Latvian (official) 58.2%, Russian 37.5%, Lithuanian and other 4.3% (2000 census)

Religions:

Lutheran 19.6%, Orthodox 15.3%, other Christian 1%, other 0.4%, unspecified 63.7% (2006)

Population:

2,204,708 (July 2011 est.)
country comparison to the world: 142

Age structure:

0-14 years: 13.5% (male 152,706/female 145,756)
15-64 years: 69.5% (male 747,044/female 785,521)
65 years and over: 16.9% (male 121,570/female 252,111) (2011 est.)

Median age:

total: 40.6 years
male: 37.6 years
female: 43.7 years (2011 est.)

Population growth rate:

-0.597% (2011 est.)
country comparison to the world: 223

Birth rate:

9.96 births/1,000 population (2011 est.)
country comparison to the world: 193

Death rate:

13.6 deaths/1,000 population (July 2011 est.)
country comparison to the world: 18

Net migration rate:

-2.33 migrant(s)/1,000 population (2011 est.)
country comparison to the world: 170

Urbanization:

urban population: 68% of total population (2010)
rate of urbanization: -0.4% annual rate of change (2010-15 est.)

Major cities - population:

RIGA (capital) 711,000 (2009)

Sex ratio:

at birth: 1.054 male(s)/female
under 15 years: 1.05 male(s)/female
15-64 years: 0.95 male(s)/female
65 years and over: 0.48 male(s)/female
total population: 0.86 male(s)/female (2011 est.)

Maternal mortality rate:

20 deaths/100,000 live births (2008)
country comparison to the world: 125

Infant mortality rate:

total: 8.42 deaths/1,000 live births
country comparison to the world: 159
male: 10.2 deaths/1,000 live births
female: 6.53 deaths/1,000 live births (2011 est.)

Life expectancy at birth:

total population: 72.68 years
country comparison to the world: 122
male: 67.56 years
female: 78.07 years (2011 est.)

Total fertility rate:

1.32 children born/woman (2011 est.)
country comparison to the world: 206

Health expenditures:

8.1% of GDP (2009)
country comparison to the world: 56

Physicians density:

2.988 physicians/1,000 population (2009)
country comparison to the world: 40

Hospital bed density:

6.42 beds/1,000 population (2009)
country comparison to the world: 22

Drinking water source:

improved:
urban: 100% of population
rural: 96% of population
total: 99% of population
unimproved:
urban: 0% of population
rural: 4% of population
total: 1% of population (2008)

Sanitation facility access:

improved:
urban: 82% of population
rural: 71% of population
total: 78% of population
unimproved:
urban: 18% of population
rural: 29% of population
total: 22% of population (2008)

HIV/AIDS - adult prevalence rate:

0.7% (2009 est.)
country comparison to the world: 60

HIV/AIDS - people living with HIV/AIDS:

8,600 (2009 est.)
country comparison to the world: 105

HIV/AIDS - deaths:

fewer than 1,000 (2009 est.)
country comparison to the world: 77

Major infectious diseases:

degree of risk: intermediate
food or waterborne diseases: bacterial diarrhea
vectorborne diseases: tickborne encephalitis (2009)

Obesity - adult prevalence rate:

15.6% (2006)
country comparison to the world: 35

Education expenditures:

5% of GDP (2007)
country comparison to the world: 57

Literacy:

definition: age 15 and over can read and write
total population: 99.7%
male: 99.8%
female: 99.7% (2000 census)

School life expectancy (primary to tertiary education):

total: 15 years
male: 14 years
female: 17 years (2008)

Unemployment, youth ages 15-24:

total: 33.8%
country comparison to the world: 12
male: 38.3%
female: 27.9% (2009)




Government ::LATVIA
Country name:

conventional long form: Republic of Latvia
conventional short form: Latvia
local long form: Latvijas Republika
local short form: Latvija
former: Latvian Soviet Socialist Republic

Government type:

parliamentary democracy

Capital:

name: Riga
geographic coordinates: 56 57 N, 24 06 E
time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October

Administrative divisions:

109 municipalities (novadi, singular-novads) and 9 cities
municipalities: Adazu Novads, Aglonas Novads, Aizkraukles Novads, Aizputes Novads, Aknistes Novads, Alojas Novads, Alsungas Novads, Aluksnes Novads, Amatas Novads, Apes Novads, Auces Novads, Babites Novads, Baldones Novads, Baltinavas Novads, Balvu Novads, Bauskas Novads, Beverinas Novads, Brocenu Novads, Burtnieku Novads, Carnikavas Novads, Cesu Novads, Cesvaines Novads, Ciblas Novads, Dagdas Novads, Daugavpils Novads, Dobeles Novads, Dundagas Novads, Durbes Novads, Engures Novads, Erglu Novads, Garkalnes Novads, Grobinas Novads, Gulbenes Novads, Iecavas Novads, Ikskiles Novads, Ilukstes Novads, Incukalna Novads, Jaunjelgavas Novads, Juanpiebalgas Novads, Jaunpils Novads, Jekabpils Novads, Jelgavas Novads, Kandavas Novads, Karsavas Novads, Keguma Novads, Kekavas Novads, Kocenu Novads, Kokneses Novads, Kraslavas Novads, Krimuldas Novads, Krustpils Novads, Kuldigas Novads, Lielvardes Novads, Ligatnes Novads, Limbazu Novads, Livanu Novads, Lubanas Novads, Ludzas Novads, Madonas Novads, Malpils Novads, Marupes Novads, Mazsalacas Novads, Nauksenu Novads, Neretas Novads, Nicas Novads, Ogres Novads, Olaines Novads, Ozolnieku Novads, Pargaujas Novads, Pavilostas Novads, Plavinu Novads, Preilu Novads, Priekules Novads, Priekulu Novads, Raunas Novads, Rezeknes Novads, Riebinu Novads, Rojas Novads, Ropazu Novads, Rucavas Novads, Rugaju Novads, Rujienas Novads, Rundales Novads, Salacgrivas Novads, Salas Novads, Salaspils Novads, Saldus Novads, Saulkrastu Novads, Sejas Novads, Siguldas Novads, Skriveru Novads, Skrundas Novads, Smiltenes Novads, Stopinu Novads, Strencu Novads, Talsu Novads, Tervetes Novads, Tukuma Novads, Vainodes Novads, Valkas Novads, Varaklanu Novads, Varkavas Novads, Vecpiebalgas Novads, Vecumnieku Novads, Ventspils Novads, Viesites Novads, Vilakas Novads, Vilanu Novads, Zilupes Novads
cities: Daugavpils, Jekabpils, Jelgava, Jurmala, Liepaja, Rezekne, Riga, Valmiera, Ventspils

Independence:

4 May 1990 (declared); 6 September 1991 (recognized by the Soviet Union)

National holiday:

Independence Day, 18 November (1918); note - 18 November 1918 was the date Latvia declared independence from Soviet Russia and established its statehood; 4 May 1990 was the date it declared its independence from the Soviet Union

Constitution:

15 February 1922; restored to force by the Constitutional Law of the Republic of Latvia adopted by the Supreme Council 21 August 1991; multiple amendments since

Legal system:

civil law system with traces of socialist legal traditions and practices

International law organization participation:

has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction

Suffrage:

18 years of age; universal for Latvian citizens

Executive branch:

chief of state: President Andris BERZINS (since 8 July 2011)
head of government: Prime Minister Valdis DOMBROVSKIS (since 12 March 2009)
cabinet: Cabinet of Ministers nominated by the prime minister and appointed by Parliament
(For more information visit the World Leaders website )
elections: president elected by Parliament for a four-year term (eligible for a second term); election last held on 2 June 2011 (next to be held in 2015); prime minister appointed by the president, confirmed by Parliament
election results: Andris BERZINS elected president; parliamentary vote - Andris BERZINS 53, Valdis ZATLERS 41

Legislative branch:

unicameral Parliament or Saeima (100 seats; members elected by proportional representation from party lists by popular vote to serve four-year terms)
elections: last held on 17 September 2011 (next to be held in September 2015)
election results: percent of vote by party - SC 28.4%, Zatlers 20.8%, Unity 18.8%, National Alliance 13.9%, ZZS 12.2%; seats by party - SC 31, Zatlers 22, Unity 20, National Alliance 14, ZZS 13

Judicial branch:

Supreme Court (judges' appointments are confirmed by parliament); Constitutional Court (judges' appointments are confirmed by parliament)

Political parties and leaders:

All For Latvia! [Irnants PARADNIEKS, Raivis DZINTARS]; Civic Union [Sandra KALNIETE, Girts Valdis KRISTOVSKIS]; First Party of Latvia/Latvia's Way or LPP/LC [Ainars SLESERS]; For Human Rights in a United Latvia or PCTVL [Jakovs PLINERS, Tatjana ZDANOKA]; For the Fatherland and Freedom/Latvian National Independence Movement or TB/LNNK [Roberts ZILE, Maris GRINBLATS]; Harmony Center or SC [Nils USAKOVS, Janis URBANOVICS]; National Alliance (alliance of TB/LNNK, All For Latvia!) [Gaidis BERZINS, Raivis DZINTARS]; New Era Party or JL [Solvita ABOLTINA, Dzintars ZAKIS]; Society for Different Politics or SCP [Aigars STOKENBERGS; Artis PABRIKS]; The Union of Latvian Greens and Farmers Party or ZZS [Augusts BRIGMANIS]; Unity [Solvita ABOLTINA]; Zatlers' Reform Party [Valdis ZATLERS]

Political pressure groups and leaders:

Free Trade Union Confederation of Latvia [Peteris KRIGERS], Employers' Confederation of Latvia [Elina EGLE], Farmers' Parliament [Juris LAZDINS]

International organization participation:

Australia Group, BA, BIS, CBSS, CE, EAPC, EBRD, EIB, EU, FAO, IAEA, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITU, ITUC, MIGA, NATO, NIB, NSG, OAS (observer), OIF (observer), OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Diplomatic representation in the US:

chief of mission: Ambassador Andrejs PILDEGOVICS
chancery: 2306 Massachusetts Ave. NW, Washington, DC 20008
telephone: [1] (202) 328-2840
FAX: [1] (202) 328-2860

Diplomatic representation from the US:

chief of mission: Ambassador Judith G. GARBER
embassy: 7 Raina Boulevard, Riga LV-1510
mailing address: American Embassy Riga, US Department of State, 4520 Riga Place, Washington, DC 20520-4520
telephone: [371] 670-36200
FAX: [371] 678-20047

Flag description:

three horizontal bands of maroon (top), white (half-width), and maroon; the flag is one of the older banners in the world; a medieval chronicle mentions a red standard with a white stripe being used by Latvian tribes in about 1280

National symbol(s):

white wagtail (bird)

National anthem:

name: "Dievs, sveti Latviju!" (God Bless Latvia)
lyrics/music: Karlis BAUMANIS
note:adopted 1920, restored 1990; the song was first performed in 1873 while Latvia was a part of Russia; the anthem was banned during the Soviet occupation from 1940 to 1990




Economy ::LATVIA
Economy - overview:

Latvia is a small, open economy with exports contributing significantly to its GDP. Due to its geographical location, transit services are highly-developed, along with timber and wood-processing, agriculture and food products, and manufacturing of machinery and electronic devices. The bulk of the country's economic activity, however, is in the services sector. Corruption continues to be an impediment to attracting FDI flows and Latvia's low birth rate and decreasing population are major challenges to its long-term economic vitality. Latvia's economy experienced GDP growth of more than 10% per year during 2006-07, but entered a severe recession in 2008 as a result of an unsustainable current account deficit and large debt exposure amid the softening world economy. GDP plunged 18% in 2009 - the three Baltic states had the world's worst declines that year. Thanks to strong export growth in 2009 and 2010, the economy experienced its first real quarterly GDP growth in over two years (2.9%) in the third quarter of 2010. The IMF, EU, and other international donors provided substantial financial assistance to Latvia as part of an agreement to defend the currency's peg to the euro. This agreement calls for reduction of Latvia's fiscal deficit to below 3% of GDP by 2012, in order to meet the Maastricht Treaty criteria for euro adoption. DOMBROVSKIS' government enacted major spending cuts to reduce the fiscal deficit to a maximum of 8.5% of GDP in 2010, and Latvia has approved a 2011 budget with a projected deficit of 5.4% of GDP. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February, 1999. EU membership, a top foreign policy goal, came in May 2004. Latvia's current major financial policy goal, entrance into the euro zone, is targeted for 2014.

GDP (purchasing power parity):

$32.51 billion (2010 est.)
country comparison to the world: 106
$32.62 billion (2009 est.)
$39.76 billion (2008 est.)
note:data are in 2010 US dollars

GDP (official exchange rate):

$24.05 billion (2010 est.)

GDP - real growth rate:

-0.3% (2010 est.)
country comparison to the world: 192
-18% (2009 est.)
-4.2% (2008 est.)

GDP - per capita (PPP):

$14,700 (2010 est.)
country comparison to the world: 77
$14,600 (2009 est.)
$17,700 (2008 est.)
note:data are in 2010 US dollars

GDP - composition by sector:

agriculture: 4%
industry: 21.7%
services: 74.4% (2010 est.)

Labor force:

1.178 million (2010 est.)
country comparison to the world: 139

Labor force - by occupation:

agriculture: 12.1%
industry: 25.8%
services: 61.8% (2005 est.)

Unemployment rate:

18.4% (2010 est.)
country comparison to the world: 161
17.1% (2009 est.)

Population below poverty line:

NA%

Household income or consumption by percentage share:

lowest 10%: 2.7%
highest 10%: 27.6% (2008)

Distribution of family income - Gini index:

35.7 (2008)
country comparison to the world: 89
32 (1999)

Investment (gross fixed):

18% of GDP (2010 est.)
country comparison to the world: 145

Budget:

revenues: $8.471 billion
expenditures: $10.31 billion (2010 est.)

Taxes and other revenues:

35.2% of GDP (2010 est.)
country comparison to the world: 66

Budget surplus (+) or deficit (-):

-7.7% of GDP (2010 est.)
country comparison to the world: 183

Public debt:

44.7% of GDP (2010 est.)
country comparison to the world: 61
36.7% of GDP (2009 est.)

Inflation rate (consumer prices):

-1.1% (2010 est.)
country comparison to the world: 5
3.5% (2009 est.)

Central bank discount rate:

4% (31 December 2009)
country comparison to the world: 65
6% (31 December 2008)

Commercial bank prime lending rate:

9.56% (31 December 2010 est.)
country comparison to the world: 38
16.23% (31 December 2009 est.)

Stock of narrow money:

$7.186 billion (31 December 2010 est.)
country comparison to the world: 78
$6.092 billion (31 December 2009 est.)

Stock of broad money:

$12.28 billion (31 December 2010 est.)
country comparison to the world: 96
$11.85 billion (31 December 2009 est.)

Stock of domestic credit:

$26.03 billion (31 December 2010 est.)
country comparison to the world: 72
$28.7 billion (31 December 2009 est.)

Market value of publicly traded shares:

$1.252 billion (31 December 2010)
country comparison to the world: 97
$1.824 billion (31 December 2009)
$1.609 billion (31 December 2008)

Agriculture - products:

grain, rapeseed, potatoes, vegetables; pork, poultry, milk, eggs; fish

Industries:

processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics

Industrial production growth rate:

14.3% (2010 est.)
country comparison to the world: 11

Electricity - production:

5.114 billion kWh (2008 est.)
country comparison to the world: 114

Electricity - consumption:

6.836 billion kWh (2008 est.)
country comparison to the world: 101

Electricity - exports:

2.605 billion kWh (2009 est.)

Electricity - imports:

1.654 billion kWh (2009 est.)

Oil - production:

0 bbl/day (2010 est.)
country comparison to the world: 188

Oil - consumption:

41,000 bbl/day (2010 est.)
country comparison to the world: 104

Oil - exports:

3,457 bbl/day (2009 est.)
country comparison to the world: 109

Oil - imports:

37,520 bbl/day (2009 est.)
country comparison to the world: 97

Oil - proved reserves:

0 bbl (1 January 2011 est.)
country comparison to the world: 153

Natural gas - production:

0 cu m (2009 est.)
country comparison to the world: 205

Natural gas - consumption:

1.56 billion cu m (2009 est.)
country comparison to the world: 84

Natural gas - exports:

0 cu m (2009 est.)
country comparison to the world: 130

Natural gas - imports:

1.56 billion cu m (2009 est.)
country comparison to the world: 51

Current account balance:

$871 million (2010 est.)
country comparison to the world: 49
$2.283 billion (2009 est.)

Exports:

$8.989 billion (2010 est.)
country comparison to the world: 92
$7.387 billion (2009 est.)

Exports - commodities:

food products, wood and wood products, metals, machinery and equipment, textiles

Exports - partners:

Russia 15.2%, Lithuania 15.2%, Estonia 12.6%, Germany 8.2%, Sweden 5.9%, Poland 4.7% (2010)

Imports:

$10.54 billion (2010 est.)
country comparison to the world: 89
$9.209 billion (2009 est.)

Imports - commodities:

machinery and equipment, consumer goods, chemicals, fuels, vehicles

Imports - partners:

Lithuania 16.3%, Germany 11.4%, Russia 10%, Poland 7.5%, Estonia 7%, Finland 4.8% (2010)

Reserves of foreign exchange and gold:

$7.17 billion (31 December 2010 est.)
country comparison to the world: 78
$6.907 billion (31 December 2009 est.)

Debt - external:

$42.07 billion (30 June 2011 est.)
country comparison to the world: 62
$39.55 billion (31 December 2010 est.)

Stock of direct foreign investment - at home:

$11.97 billion (31 December 2010 est.)
country comparison to the world: 80
$11.63 billion (31 December 2009 est.)

Stock of direct foreign investment - abroad:

$1.011 billion (31 December 2010 est.)
country comparison to the world: 74
$996.8 million (31 December 2009 est.)

Exchange rates:

lati (LVL) per US dollar -
0.5422 (2010)
0.5056 (2009)
0.4701 (2008)
0.5162 (2007)
0.5597 (2006)




Communications ::LATVIA
Telephones - main lines in use:

532,100 (2010)
country comparison to the world: 95

Telephones - mobile cellular:

2.306 million (2010)
country comparison to the world: 134

Telephone system:

general assessment: recent efforts focused on bringing competition to the telecommunications sector; the number of fixed lines is decreasing as mobile-cellular telephone service expands
domestic: number of telecommunications operators has grown rapidly since the fixed-line market opened to competition in 2003; combined fixed-line and mobile-cellular subscribership exceeds 125 per 100 persons
international: country code - 371; the Latvian network is now connected via fiber optic cable to Estonia, Finland, and Sweden (2008)

Broadcast media:

several national and regional commercial TV stations are foreign-owned, 2 national TV stations are publicly-owned; system supplemented by privately-owned regional and local TV stations; cable and satellite multi-channel TV services with domestic and foreign broadcasts are available; publicly-owned broadcaster operates 4 radio networks with dozens of stations throughout the country; dozens of private broadcasters also operate radio stations (2007)

Internet country code:

.lv

Internet hosts:

289,478 (2010)
country comparison to the world: 59

Internet users:

1.504 million (2009)
country comparison to the world: 81




Transportation ::LATVIA
Airports:

42 (2010)
country comparison to the world: 101

Airports - with paved runways:

total: 19
over 3,047 m: 1
2,438 to 3,047 m: 3
1,524 to 2,437 m: 5
914 to 1,523 m: 3
under 914 m: 7 (2010)

Airports - with unpaved runways:

total: 23
under 914 m: 23 (2010)

Pipelines:

gas 948 km; refined products 415 km (2010)

Railways:

total: 2,239 km
country comparison to the world: 67
broad gauge: 2,206 km 1.520-m gauge
narrow gauge: 33 km 0.750-m gauge (2010)

Roadways:

total: 73,074 km
country comparison to the world: 64
paved: 14,459 km
unpaved: 58,615 km (2010)

Waterways:

300 km (navigable year round) (2010)
country comparison to the world: 94

Merchant marine:

total: 13
country comparison to the world: 108
by type: cargo 3, chemical tanker 1, passenger/cargo 5, petroleum tanker 3, roll on/roll off 1
foreign-owned: 4 (Estonia 4)
registered in other countries: 90 (Antigua and Barbuda 16, Belize 10, Cambodia 1, Comoros 1, Cook Islands 1, Dominica 1, Georgia 1, Liberia 9, Malta 11, Marshall Islands 18, Panama 4, Saint Kitts and Nevis 2, Saint Vincent and the Grenadines 15) (2010)

Ports and terminals:

Riga, Ventspils




Military ::LATVIA
Military branches:

National Armed Forces (Nacionalo Brunoto Speku): Land Forces, Navy (Latvijas Juras Speki; includes Coast Guard (Latvijas Kara Flotes)), Latvian Air Force (Latvijas Gaisa Speki), Latvian Home Guard (Latvijas Zemessardze) (2011)

Military service age and obligation:

18 years of age for voluntary male and female military service; conscription abolished January 2007; under current law, every citizen is entitled to serve in the armed forces for life (2009)

Manpower available for military service:

males age 16-49: 546,090
females age 16-49: 540,810 (2010 est.)

Manpower fit for military service:

males age 16-49: 401,691
females age 16-49: 447,638 (2010 est.)

Manpower reaching militarily significant age annually:

male: 10,482
female: 9,858 (2010 est.)

Military expenditures:

1.2% of GDP (2005 est.)
country comparison to the world: 123




Transnational Issues ::LATVIA
Disputes - international:

Russia demands better Latvian treatment of ethnic Russians in Latvia; boundary demarcated with Latvia and Lithuania; the Latvian parliament has not ratified its 1998 maritime boundary treaty with Lithuania, primarily due to concerns over oil exploration rights; as a member state that forms part of the EU's external border, Latvia has implemented the strict Schengen border rules with Russia

Illicit drugs:

transshipment and destination point for cocaine, synthetic drugs, opiates, and cannabis from Southwest Asia, Western Europe, Latin America, and neighboring Balkan countries; despite improved legislation, vulnerable to money laundering due to nascent enforcement capabilities and comparatively weak regulation of offshore companies and the gaming industry; CIS organized crime (including counterfeiting, corruption, extortion, stolen cars, and prostitution) accounts for most laundered proceeds


source: https://www.cia.gov/library/publications/the-world-factbook/geos/lg.html

Latvia in the Russian Empire

The Capitulation of Estonia and Livonia in 1710 and the Treaty of Nystad, ending the Great Northern War in 1721, gave Vidzeme to Russia (it became part of the Riga Governorate)[citation needed]. The Latgale region remained part of the Polish–Lithuanian Commonwealth as Inflanty Voivodeship until 1772, when it was incorporated into Russia. The Duchy of Courland and Semigallia became an autonomous Russian province (the Courland Governorate) in 1795, bringing all of what is now Latvia into the Russian Empire. All three Baltic provinces preserved local laws, the local official language and their own parliament, the Landtag[citation needed].

During the Great Northern War (1700–1721), the Baltic area was once again the scene of great devastation, with Peter the Great's scorched-earth policy, famine, and plague being responsible for catastrophic loss of human life: as much as 40% of the population in Latvian lands were killed.[26] In 1710, the plague reached Riga, where it was active until 1711 and claimed the lives of about half the population.[27]

The promises Peter the Great made to the Baltic German nobility at the fall of Riga in 1710, confirmed by the Treaty of Nystad and known as "the Capitulations", largely reversed the Swedish reforms[citation needed].

The emancipation of the serfs took place in Courland in 1817 and in Vidzeme in 1819. In practice, however, the emancipation was actually advantageous to the landowners and nobility[citation needed], as it dispossessed peasants of their land without compensation, forcing them to return to work at the estates "of their own free will".

During the 19th century, the social structure changed dramatically. A class of independent farmers established itself after reforms allowed the peasants to repurchase their land, but many landless peasants remained[citation needed]. There also developed a growing urban proletariat and an increasingly influential Latvian bourgeoisie. The Young Latvian (Latvian: Jaunlatvieši) movement laid the groundwork for nationalism from the middle of the century, many of its leaders looking to the Slavophiles for support against the prevailing German-dominated social order[citation needed]. The rise in use of the Latvian language in literature and society became known as the First National Awakening. Russification began in Latgale after the Polish led the January Uprising in 1863: this spread to the rest of what is now Latvia by the 1880s[citation needed]. The Young Latvians were largely eclipsed by the New Current, a broad leftist social and political movement, in the 1890s. Popular discontent exploded in the 1905 Russian Revolution, which took a nationalist character in the Baltic provinces.


In 1944 when the Soviet military advances reached the area heavy fighting took place in Latvia between German and Soviet troops which ended with another German defeat. During the course of the war, both occupying forces conscripted Latvians into their armies, in this way increasing the loss of the nation's "live resources". In 1944, part of the Latvian territory once more came under Soviet control. The Soviets immediately began to reinstate the Soviet system. After the German surrender it became clear that Soviet forces were there to stay, and Latvian national partisans, soon to be joined by German collaborators, began their fight against another occupier – the Soviet Union

Anywhere from 120,000 to as many as 300,000 Latvians took refuge from the Soviet army by fleeing to Germany and Sweden.[41] Most sources count 200,000 to 250,000 refugees leaving Latvia, with perhaps as many as 80,000 to 100,000 of them recaptured by the Soviets or, during few months immediately after the end of war,[42] returned by the West.[43] The Soviets reoccupied the country in 1944–1945, and further mass deportations followed as the country was forcibly collectivised and Sovieticised.[30]

On March 25, 1949, 43,000 rich residents ("kulaks") and Latvian patriots ("nationalists") were deported to Siberia in a sweeping repressive Operation Priboi in all three Baltic states, which was carefully planned and approved in Moscow already on January 29, 1949.[44] Between 136,000 and 190,000 Latvians, depending on the sources, were imprisoned, repressed or deported to Soviet concentration camps (the Gulag) in the post war years, from 1945 to 1952.[45] Some managed to escape arrest and joined the partisans[citation needed].

Until 1962 there were several reports of organised suicide bombing attempts against the strategic locations of Soviet forces and several high standing statesmen. It is not clear whether the group was organised throughtly, or it was rather several smaller political opposition groups. Latvian suicide bombers have been noted as one of few European nations that have employed suicide tactics against enemy combatants (German forces were developing but never implemented suicide guided ballistic rocket. Caucasian sepparatists have been reported to use suicide bombing tactics against former USSR and Russian forces). Latvian opposition also was developing plans to arm local communities and start a full scale armed opposition, however the plans were stopped, without any guaranteed help from abroad or Western Allies forces.

In the post-war period, Latvia was forced to adopt Soviet farming methods and the economic infrastructure developed in the 1920s and 1930s was eradicated[citation needed]. Rural areas were forced into collectivisation.[46] An extensive programme to impose bilingualism was initiated in Latvia, limiting the use of Latvian language in official uses in favor of using the official language, which was Russian. All of the minority schools (Jewish, Polish, Belorussian, Estonian, Lithuanian) were closed down leaving only two languages of instructions in the schools- Latvian and Russian.[47] An influx of labourers, administrators, military personnel and their dependents from Russia and other Soviet republics started. By 1959 about 400,000 persons arrived from other Soviet republics and the ethnic Latvian population had fallen to 62%.[48]

Because Latvia had still maintained a well-developed infrastructure and educated specialists it was decided in Moscow that some of the Soviet Union's most advanced manufacturing factories were to be based in Latvia. New industry was created in Latvia, including a major machinery factory RAF in Jelgava, electrotechnical factories in Riga, chemical factories in Daugavpils, Valmiera and Olaine, as well as some food and oil processing plants.[49] However, there were not enough people to operate the newly built factories[citation needed]. In order to expand industrial production, skilled workers were transferred into the republic from all over the Soviet Union, decreasing the proportion of ethnic Latvians in the republic

In the second half of 1980s Soviet leader Mikhail Gorbachev started to introduce political and economic reforms in the Soviet Union, called glasnost and Perestroika. In the summer of 1987 the first large demonstrations were held in Riga at the Freedom Monument- a symbol of independence. In the summer of 1988 a national movement, coalescing in the Popular Front of Latvia, was opposed by the Interfront. The Latvian SSR, along with the other Baltic Republics was allowed greater autonomy, and in 1988 the old pre-war Flag of Latvia was allowed to be used, replacing the Soviet Latvian flag as the official flag in 1990.

In 1989, the Supreme Soviet of the USSR adopted a resolution on the "Occupation of the Baltic states", in which it declared that the occupation was "not in accordance with law," and not the "will of the Soviet people". Pro-independence Popular Front of Latvia candidates gained a two-thirds majority in the Supreme Council in the March 1990 democratic elections. On May 4, 1990, the Supreme Soviet of the Latvian SSR adopted the Declaration On the Restoration of Independence of the Republic of Latvia, Latvian SSR was renamed Republic of Latvia.

However, the central power in Moscow continued to regard Latvia as Soviet republic in 1990–1991[citation needed]. In January 1991, Soviet political and military forces tried unsuccessfully to overthrow the Republic of Latvia authorities by occupying the central publishing house in Riga and establishing a Committee of National Salvation to usurp governmental functions[citation needed]. During the transitional period Moscow maintained many central Soviet state authorities in Latvia.

In spite of this, 73% of all Latvian residents confirmed their strong support for independence on March 3, 1991, in a nonbinding advisory referendum. A large number of ethnic Russians also voted for the proposition[citation needed]. The Popular Front of Latvia had advocated that all permanent residents be eligible for Latvian citizenship. However, universal citizenship for all permanent residents was not adopted subsequently; not all those who had voted in support of independence received citizenship in the new Latvian state and became non-citizens. (The majority of non-citizens have since become naturalized citizens.) The Republic of Latvia declared the end of the transitional period and restored full independence on August 21, 1991 in the aftermath of the failed Soviet coup attempt.

Latvia became a member of the European Union in 2004 and signed the Lisbon Treaty in 2007.
The Saeima, Latvia's parliament, was again elected in 1993, and Russia completed its military withdrawal in 1994. The major goals of Latvia in the 1990s, to join NATO and the European Union, were achieved in 2004.

Language and citizenship laws have been opposed by many Russophones. (Citizenship was not automatically extended to former Soviet citizens who settled during the Soviet occupation or to their subsequent offspring. This resulted in a situation where people who have lived and worked in Latvia for over 50 years were nonetheless unable to vote, which meant that Russian voice was largely excluded from the parliament and the government.[citation needed] Children born to non-nationals after the reestablishment of independence are automatically entitled to citizenship.) Approximately 72% of Latvian citizens are Latvian, while 20% are Russian; less than 1% of non-citizens are Latvian, while 71% are Russian.[51] The government denationalised private property confiscated by the Soviet rule, returning it or compensating the owners for it, and privatised most state-owned industries, reintroducing the prewar currency. Albeit having experienced a difficult transition to a liberal economy and its re-orientation toward Western Europe, its economy had one of the highest growth rates until the 2008–2010 Latvian financial crisis