LATVIA

Republic of Latvia

Latvijas Republika

CAPITAL: Riga

FLAG: The flag consists of a single white horizontal stripe on a maroon field.

ANTHEM: Dievs, svēti Latviju! (God bless Latvia!).

MONETARY UNIT: The lat was introduced as the official currency in May 1993; $1 = Ls1.78571 (or $1 = Ls0.56) as of 2005.

WEIGHTS AND MEASURES: The metric system is in force.

HOLIDAYS: New Year's Day, 1 January; Good Friday (movable); Midsummer Festival, 23–24 June; National Day, Proclamation of the Republic, 18 November; Christmas, 25–26 December; New Year's Eve, 31 December.

TIME: 2 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Latvia is located in northeastern Europe, bordering the Baltic Sea, between Sweden and Russia. Comparatively, Latvia is slightly larger than the state of West Virginia, with a total area of 64,589 sq km (24,938 sq mi). Latvia shares boundaries with Estonia on the n, Russia on the e, Belarus on the s, Lithuania on the sw, and the Baltic Sea on the w. Latvia's land boundary length totals 1,150 km (713 mi). Its coastline is 531 km (330 mi). Latvia's capital city, Riga, is located near the southern edge of the Gulf of Riga.

TOPOGRAPHY

The topography of Latvia consists mainly of a central and eastern lowland plains enclosed in areas of uplands consisting of moderate-sized hills. The highest point in the country is Gaizinkalns (312 m/1,024 ft), located near the edge of the Vidzme uplands. The nation's longest river is the Daugava (Dvina); which begins in Russia and passes through both Belarus and Latvia in its course to the Gulf of Riga. The total length of the Daugava is 1,020 km (632 mi).

CLIMATE

The country's climate is influenced by geographical location and by its closeness to the North Atlantic Ocean. The average temperature in July is between 16.8°c and 17.6°c (62–64°f). In January the average temperature ranges between–2.8°c and 6.6°c (31–44°f). The rainfall in the country is between 56–79 cm (22–31 in).

FLORA AND FAUNA

Half of Latvia's soil is podzolic humus, which covers about one-third of the country's arable land. Woodlands make up about 47% of the country's territory, with one-half of the forests consisting of pines, birch, and firs. About 10% of the total land area is covered in marshes, swamps, or peat bogs. Species native to Latvia are the wild boar, Eurasian beaver, and brown bear. The Baltic Sea coast is home to a significant population of seals. The routes of migratory birds pass along the Black Sea and over the country. As of 2002, there were at least 83 species of mammals, 216 species of birds, and over 1,150 species of plants throughout the country.

ENVIRONMENT

Air and water pollution are among Latvia's most significant environmental concerns and are largely related to a lack of waste treatment facilities. In 2000, the total of carbon dioxide emissions was at 6 million metric tons. Cars and other vehicles account for a majority of the country's air pollution. Acid rain has contributed to the destruction of Latvia's forests. Latvia's water supply is perilously polluted with agricultural chemicals and industrial waste. The Gulf of Riga and the Daugava River are both heavily polluted.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included four types of mammals, eight species of birds, three species of fish, and eight species of invertebrates. Threatened species include the black vulture, the asp, the Eurasian beaver, the medicinal leech, the marsh snail, and the Russian desman. In 2003, about 13.4% of the total land area was protected, including six Ramsar wetland sites.

POPULATION

The population of Latvia in 2005 was estimated by the United Nations (UN) at 2,300,000, which placed it at number 138 in population among the 193 nations of the world. In 2005, approximately 16% of the population was over 65 years of age, with another 15% of the population under 15 years of age. There were 84 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be -0.5%, a rate the government viewed as too low. The country has had low fertility rates since the mid-1990s. The projected population for the year 2025 was 2,156,000. The population density was 36 per sq km (92 per sq mi).

The UN estimated that 68% of the population lived in urban areas in 2005, and that population in urban areas was declining at an annual rate of -0.99%. The capital city, Riga, had a population of 733,000 in that year, and Daugavpils had an estimated of 124,887. There were 75 urban localities, many located on rivers or coastal areas.

MIGRATION

Some 250,000 Latvians fled Soviet occupation during World War II, and others were sent to Soviet labor camps. After the war many Russians moved to Latvia.

With independence in 1991, citizenship issues surrounding the large non-Latvian ethnic population became a problem. Only 55% were ethnic Latvians; 32% were Russians; 3.9% Belarussians; and 9.1% other. Immigration from other former Soviet republics came to 4,590 in 1992. A breakthrough came in 1998 when the Citizenship Law was changed, abolishing the annual quota of naturalizations and entitling children born after independence to automatically acquire Latvian citizenship upon request from their parents. A total of 51,778 persons emigrated when Latvia gained independence in 1991; almost all of them went to Russia, Ukraine, or Belarus.

In 2000 there were 613,000 migrants living in Latvia. This amounts to about 25% of the total population. In 2004 noncitizens in Latvia numbered 452,003, and 173 were stateless, all of concern to the United Nations High Commissioner for Refugees (UNHCR). In 2005, the net migration rate was an estimated -2.25 migrants per 1,000 population, a change from -8.8 per 1,000 in 1990. The government views the immigration level as too high, but the emigration level as satisfactory.

ETHNIC GROUPS

According to 2002 estimates, the percentage of ethnic Latvians is about 57.7% of the total population. Russians constitute about 29.6% of the population; Belarussians make up 4.1%; Ukrainians account for 2.7%; Poles for 2.5%; Lithuanians for 1.4%; and others 2%. The Romani population is estimated at about 13,000 to 15,000 people. Nearly half the Russians and Ukrainians lived in Riga, where Russians formed a majority of the population. All residents of pre-1940 Latvia and their descendants are citizens. Naturalization requires 16 years' residence and fluency in Latvian.

LANGUAGES

Latvian (also called Lettish), a Baltic language written in the Roman alphabet, is the official language; it is spoken by about 58.2% of the population. It is highly inflected, with seven noun cases and six verb declensions. The stress is always on the first syllable. There are three dialects. The macron is used for long vowels, and there is a hacek for "h." A cedilla adds the y sound. Education is now available in both Latvian and Russian, the latter of which is spoken by about 37.5% of the population. Lithuania and other languages are spoken by about 4.3% of the population.

RELIGIONS

After declaring independence from the Soviet Union in 1991, freedom of religion and worship was restored for the first time since 1941. Christianity had arrived in Latvia in the 12th century, and the Reformation made Lutheranism the primary religious persuasion after 1530. Currently the three largest faiths are Catholicism, Lutheranism, and Orthodoxy.

In 2004, the Latvian Justice Ministry had registered more than 1,000 religious congregations, including 308 Lutheran, 264 Roman Catholic, 125 Orthodox, 96 Baptist, 67 Old Believer (a breakaway Orthodox sect dating from the 17th century), 50 Seventh-Day Adventist, 15 Muslim, 13 Jehovah's Witnesses, 13 Methodists, 13 Jewish, 11 Hare Krishna, 5 Buddhist, 4 Mormon, and over 100 others. According to church membership rolls submitted to the Justice Ministry, the Lutheran Church has about 556,000 members, the Roman Catholic Church has about 430,405 members, and the Orthodox Churches have about 350,000 members. There are only about 6,000 Jews in the country.

The constitution provides for freedom of religion and this right is generally respected in practice. Though there is no state religion, six religions are recognized by the government as traditional religions: Lutheranism, Roman Catholicism, Orthodoxy, Old Believers, the Baptist Church, and Judaism. All other religions are categorized as "new" religions; these groups have not offered any reports of significant discrimination. Certain Christian holidays are celebrated as national holidays. The New Religions Consultative offers opinions to the government on specific issues. The Ecclesiastical Council offers regular input on issues of common concern.

TRANSPORTATION

Latvia's railroad system, as of 2004, consisted of 2,303 km (1,432 mi) of broad and narrow gauge railway that linked the country's port cities with Russia. More than 80% of railway use is for daily commuting. Of the total rail lines in operation, 2,270 km (1,412 mi) was broad gauge, of which 257 km (160 mi) had been electrified. In 2003, there were 69,919 km (43,490 mi) of highways in Latvia, all of which were paved. In that same year, there were 619,081 passengers cars and 125,030 commercial vehicles in use. Maritime ports include Riga, Ventspils, and Liepāja. In 2005, the merchant fleet consisted of 19 ships of 1,000 GRT or more, with a total of 53,153 GRT. Ventspils is the terminus of the 750 km (466 mi) oil pipeline from Polotsk, Belarus. As of 2004, the country also had 300 km (186 mi) of navigable waterways.

In 2004, Latvia had an estimated 50 airports, 23 of which had paved runways as of 2005. The principal airport at Riga has international air links to Helsinki, Stockholm, Copenhagen, and New York, as well as direct flights to Austria, Germany, Israel, Russia, and Belarus. In 2003 about 340,000 passengers were carried on scheduled domestic and international airline flights.

HISTORY

Germans, Poles, Swedes, and Russians competed for influence in what is now Latvia from the Middle Ages until the 18th century, when it was incorporated into the Russian Empire. During the 19th century, a Latvian nationalist movement arose which by the early 20th century sought independence. The political chaos in Europe following World War I provided the opportunity for Latvia to break away from Russia's control.

On 18 November 1918, the independent Republic of Latvia was proclaimed. Moscow recognized Latvian independence in the August 1920 Soviet-Latvian treaty, and the new republic joined the League of Nations in 1922. Latvia prospered economically during the 1920s, and began to export dairy and grain products to Europe. During the 1930s, as tensions in Europe escalated, the Soviet government allied itself with the United Kingdom and France, which in July 1939 granted the concession that Soviet troops could move into the Baltic States in case an indirect aggression was made by Germany. Sensing that an alliance between the United Kingdom, France, and the USSR would leave Germany politically and militarily surrounded, the Nazi government decided to reach its own agreement with the Soviet government in August 1939. A secret protocol to the 1939 Nazi-Soviet pact assigned Latvia to the Soviet sphere of influence.

Soviet forces invaded Latvia on 17 June 1940, and Latvia was incorporated into the USSR. Thousands of Latvia's military and law enforcement officials were executed; political and social leaders were imprisoned. Latvian civilians were deported en masse to Soviet camps in Siberia; 15,000 alone were expelled on the night of 14 June 1941. The Soviets, however, lost control of Latvia to the Germans in July 1941, shortly after Hitler launched his attack on the USSR. Soviet forces recaptured Latvia in 1944. During the Teheran Conference of November/December 1943 between US president Franklin D. Roosevelt and the Soviet leader Joseph Stalin, it was agreed that the USSR would maintain control of the Baltic States, and this agreement was confirmed at the Conference of Yalta in February 1945.

Following World War II, forced collectivization of agriculture began another round of deportations in 1949, bringing the total number of postwar deportees to more than 200,000. The Soviet policy of russification sought to replace Latvian language and culture with those of Russia. Freedom of speech, press, and religion was denied. For most of the 50 years of Soviet rule, political dissent was strictly forbidden.

Soviet president Mikhail Gorbachev's policy of glasnost and perestroika allowed Latvians to voice their long-suppressed desire for national self-determination. In June 1987, an openly anti-Soviet demonstration took place in Riga. In 1988, political activists founded the Latvian National Independence Movement and the Latvian Popular Front (LPF). On 23 August 1989, Latvians, Lithuanians, and Estonians organized a massive demonstration of Baltic solidarity. The LPF united independence forces and gained a majority in the elections for the Latvian Supreme Council in the spring of 1990. On 4 May 1990 provisional independence and a period of transitional rule were proclaimed.

On 21 August 1991—shortly after the failure of a coup against Gorbachev—Latvia proclaimed its full independence. The first postindependence elections for the new Saeima (parliament) were held on 5–6 June 1993. On 30 April 1994, the Latvian and Russian governments signed a series of accords calling for the withdrawal of nearly all Russian armed forces from Latvia by the end of that year. On 12 June 1995, Latvia, Estonia, and Lithuania signed accords with the EU that were to eventually lead to full membership. A second parliamentary election the same year resulted in a legislature that was strongly divided between pro-Western and pro-Russian contingents. At the end of 1995, Andris Shkele, a former government official and businessman, became prime minister, heading a broad-based coalition cabinet. Shkele, who retained his post until 1997, balanced the budget and sped up economic reform, although his leadership style alienated many other politicians.

The Russian economic decline of 1998 decreased the market for Latvian goods and services, seriously hurting its economy and increasing unemployment. In October of the same year, Shkele's People's Party won a plurality of the vote in new parliamentary elections, but the former prime minister's personal unpopularity resulted in the formation of a minority government by a coalition that opted to exclude him. Latvia elected its first female president in June 1999, when Vaira Vike-Freiberga, a Canadian psychology professor of Latvian birth known for promoting Latvian cultural interests internationally, was chosen as her homeland's new head of state. She was inaugurated on 8 July 1999. One of her first acts as president was to veto new legislation that would have required the use of the Latvian language in government and business communications, thus further disenfranchising Latvia's large Russian-speaking minority, whose rights and status remained a problematical issue for the country as the new century began. In May 2002, Latvia changed its election law to omit a clause requiring parliamentary candidates to be speakers of the Latvian language, a provision seen as discriminatory to Russian speakers. The change was seen to improve Latvia's chances for membership in the North Atlantic Treaty Organization.

In November 2002, NATO formally invited Latvia, along with six other countries, to become a member. That December, Latvia also received an invitation to join the European Union (EU). Latvia joined NATO and the EU in the spring of 2004.

General elections were held on 5 October 2002, and a new party, the centrist New Era, topped the polls with 23.9% of the votes, taking 26 of the 100 seats in the Saeima. New Era is led by Einars Repse, the former head of the central bank, who managed the country's economy through difficult post-Soviet years; he oversaw the replacement of the currency, from the Russian ruble to the lat, an event that was seen as heralding Latvia's economic revival. Repse was named prime minister, heading a center-right coalition government formed by New Era, Latvia's First Party, the Alliance of Greens and Farmers, and the For Fatherland and Freedom Party. The For Human Rights in a United Latvia party came in second with 18.9% of the vote and 24 seats. Twenty parties competed for seats in parliament in the election. Repse, who campaigned for lower taxes, a pared-down government, and the elimination of corruption, launched a new office in 2003, an "Anti-Absurdity" bureau. Dedicated to help ordinary people fight "the arbitrariness of those in power, the laziness of civil servants, and the lack of order in national and local government," it is a sounding board for a variety of public complaints.

Both Repse and President Vike-Freiberga supported the 2003 US-led military campaign against Saddam Hussein's regime in Iraq. Vike-Freiberga emphasized the need to maintain the trans-Atlantic relationship guaranteeing Latvia's security, and the country's opposition to the rule of dictators who challenge the international community.

GOVERNMENT

The 1990 declaration of provisional independence reinstated the 1922 constitution. From 1990 to 1993, Latvia was in a state of transition and authority was held by the Supreme Council. The new Saeima (parliament) consists of a single chamber with 100 deputies. A party must receive at least 5% of the national vote to hold a seat in parliament. Deputies are elected to a term of four years by citizens over the age of 18.

The executive branch of government is made up of the president, prime minister, and the cabinet. The Saeima elects the president for a four-year term. Executive power lies with the prime minister, who heads the Council of Ministers (cabinet). In June 1999, the Saeima elected Vaira Vike-Freiberga to the presidency. He was reelected in 2003 and will remain in office until the next election, scheduled to take place in June 2007.

Only citizens of Latvia at the time of the 1940 Soviet invasion and their descendants were allowed to vote in the 1993 elections. This meant that an estimated 34% of the country's residents (primarily Russians) were ineligible to vote. A citizenship law passed in June 1944 restricted naturalization to fewer than 2,000 resident aliens a year. On 22 July 1994, bowing to domestic and international pressure, the Saeima amended the citizenship law, eliminating the quota system. Applicants need a minimum of five years of continuous residence, basic knowledge of the Latvian language, history, and constitution, and a legal source of income; they must also take an oath of loyalty to Latvia and renounce any other citizenship. Thus the new citizenship law accelerates the naturalization process for the several hundred thousand Russian-speakers living in Latvia.

POLITICAL PARTIES

The Latvian Popular Front, established in 1988 to unite pro-independence forces, split apart after independence was achieved, giving way to a number of new parties, many defined by their stance on the status of the country's Russian-speaking population. Following the October 1998 elections the 100 seats in the Saeima were distributed as follows: People's Party, 24; Latvian Way Union, 21; Fatherland and Freedom/Latvian National Conservative Party, 17; Popular Harmony Party, 16; Latvian Social Democratic Alliance, 14; and New Party, 8. There were also other political parties not represented in the Saeima.

Following the October 2002 parliamentary elections, New Era, a new party led by former central bank head Einars Repse, won the most seats in the Saeima (26), followed by the For Human Rights in a United Latvia Party with 24, the People's Party with 21, the Alliance of Greens and Farmers with 12, Latvia's First Party with 10, and the For Fatherland and Freedom Party with 7. Repse was named prime minister, leading a coalition of New Era, Latvia's First Party, the Alliance of Greens and Farmers, and the For Fatherland and Freedom Party. The next parliamentary elections were scheduled to take place in October 2006.

LOCAL GOVERNMENT

Latvia's local governmental structure is divided into two levels. On the first tier are cities, parishes (pagasti ), and newly formed joint municipalities. In addition, there is district government. Citizens who live in the respective territories elect the decision-making bodies of city, parish or joint-municipal governments. These governments delegate representatives to the district governments (counties). As of 2005, there were 7 large municipalities, and 26 administrative counties. The seven large municipalities have dual status as city and regional governments.

JUDICIAL SYSTEM

A 1991 constitution, which supplements the reinstated 1922 constitution, provides for a number of basic rights and freedoms. The courts have been reorganized along democratic lines. Regional courts were added in 1995 to hear appeals of lower court decisions. There are now district courts, regional courts, a Supreme Court, and the Constitutional Court.

More serious criminal cases are heard before a panel consisting of a judge and two lay assessors. There is a provision for a 12-member jury in capital cases. The judiciary is independent; however, it suffers from a lack of personnel and training. In 1996, a seven-member Constitutional Court was established with power to hear cases at the request of the president, the cabinet, prosecutors, the Supreme Court, local government, or one-third of parliament members. The Constitutional Court may also rule on the constitutionality of legislation or its conformity with Latvia's international obligations.

ARMED FORCES

The Latvian armed forces in 2005 totaled 5,238 active personnel with reserves numbering 11,204. The Army totaled 1,817 active members, followed by the Navy with 685 active personnel and the Air Force with 255 active members. The remaining active manpower was deployed in Administration and Command (1,055), Central Support (782) and 644 among other forces. Army equipment included three main battle tanks, two reconnaissance vehicles, and 124 artillery pieces. The Air Force operated 14 transport and 5 training fixed wing aircraft, and 6 support helicopters. The Navy operated one patrol/coastal vessel, three mine warfare and two logistics/support vessels. Latvia assisted in UN and NATO operations in Bosnia, Serbia-Montenegro, Iraq and Afghanistan. The defense budget for 2005 totaled $278 million.

INTERNATIONAL COOPERATION

Latvia was admitted to the United Nations on 17 September 1991 and serves in several specialized agencies, such as UNESCO, FAO, IFC, the World Bank, WHO, and the ILO. The country is a member of the WTO, the Council of Europe, Euro-Atlantic Partnership Council, the European Bank for Reconstruction and Development, the OSCE, and the Council of the Baltic Sea States. Latvia joined the European Union and NATO in 2004. Latvia is an observer in the OAS and a member affiliate of the Western European Union. In environmental cooperation, Latvia is part of the Basel Convention, Conventions on Biological Diversity and Air Pollution, CITES, the Kyoto Protocol, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea and Climate Change.

ECONOMY

Latvia has a relatively well-developed infrastructure and a diversified industrial base, which accounts for about 26% of GDP. Agriculture constitutes approximately 5% of GDP and centers around the cultivation of potatoes, cereals, fodder, and other crops, as well as dairy farming. The largest sector of the economy is the service sector, with wholesale and retail trade, transportation, financial services, communications, and real estate management the most important industries.

Latvia's GDP fell about 30% in 1992 due to a steep decline in industrial exports to Russia. However, by 1994, GDP rose by 2%. A banking crisis caused by the collapse of Latvia's largest bank (as well as some smaller commercial banks) inhibited economic growth in 1995. Difficulties in revenue collection and inadequate control over governmental spending led to a high budget deficit. As a result, GDP fell by 1.6% in 1995. GDP growth improved markedly during the mid- to late-1990s, but it slowed somewhat in 1999, due to the Russian financial crisis of the previous year. By 2001 it stood at 7.7%. Compared to a 960% inflation rate in 1992, inflation was down to 26.3% in 1994, 16% in 1996, and 4.7% in 1998. Unemployment during the early 2000s remained stable between 7–8%.

Since independence was achieved in 1991, Latvia continued with its privatization program and market reforms in the hope of qualifying for EU accession. By mid-2003, 98% of former state-owned industries had been sold, and the private sector accounted for two-thirds of GDP. Latvia joined the WTO in 1999, and was formally invited to join the EU in December 2002, and was accepted as a full member in May 2004. Latvian governments in the early 2000s implemented strict monetary policies and liberal trade policies, attempted to keep budget deficits low, and tried to provide for a more competitive economic environment. Latvia attracted a large amount of foreign direct investment since 1991; Demark was its largest investor. However, investors who shy away from Latvia often do so because of corruption, organized crime, excessive bureaucracy, and a need for regulatory reform.

GDP growth was very strong in 2004, at 8.5%, jumping from 7.5% in 2003, and 6.4% in 2002; in 2005, the economy is expected to grow by 6.0%. This rapid growth was mainly fueled by high domestic demand, which, in turn, was fueled by higher rates of bank lending. Other factors that contributed to the GDP growth were foreign investments, and a dynamic export market. Inflation has remained fairly stable until 2003, but in 2004 it made a slight jump, reaching 6.2%. Unemployment continued to be a problem, hovering around 8.5%.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Latvia's gross domestic product (GDP) was estimated at $29.4 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $12,800. The annual growth rate of GDP was estimated at 7.8%. The average inflation rate in 2005 was 5.9%. It was estimated that agriculture accounted for 4.1% of GDP, industry 26%, and services 69.9%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $171 million or about $74 per capita and accounted for approximately 1.5% of GDP. Foreign aid receipts amounted to $114 million or about $49 per capita and accounted for approximately 1.0% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Latvia totaled $6.98 billion or about $3,007 per capita based on a GDP of $11.1 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 0.3%. In 2001 it was estimated that approximately 30% of household consumption was spent on food, 16% on fuel, 6% on health care, and 23% on education.

LABOR

The 2005 labor force was estimated at 1.11 million workers. Unemployment in that year was estimated at 8.8%. As of 2003, the service sector accounted for 59.2% of those employed, with 27% in industry and the remaining 13.8% in agriculture.

Latvian workers have the legal right to form and join labor unions. As of 2002, about 30% of the labor force was unionized. Unions are generally nonpolitical, have the right to strike (with some limits), are free to affiliate internationally, can bargain collectively, and are mostly free of government interference in their negotiations with employers.

The minimum employment age is 15, and the mandatory maximum workweek is set at 40 hours. Latvian labor regulations also provide workers with four weeks of annual vacation and special assistance to working mothers with small children. Certain minimum standards of labor conditions are defined by law, although they are not effectively enforced. The legal minimum wage was $98 per month in 2002.

AGRICULTURE

As of 2003, out of a total land area of 6,205,000 hectares (15,333,000 acres), about 30% was crop land. Agriculture accounted for about 5% of GDP and engaged around 12% of the labor force in 2003. Agricultural output declined by an annual average of 7% during 1990–2000.

Privatization of agriculture progressed rapidly after 1991. By the beginning of 1993, over 50,000 private farms had been established, and many agricultural facilities were being privatized. Production of primary crops in 2004 (in thousands of tons) included wheat, 530; barley, 275; rye, 100; potatoes, 628.4; rapeseed, 103.6; and dry beans, 0.5.

ANIMAL HUSBANDRY

About 621,000 hectares (1,534,000 acres) of land are meadows and pastures, representing 10% of the total land area. In 2005, there were 371,100 head of cattle, 435,700 pigs, 38,600 sheep, 3,450,000 chickens, and 15,500 horses. In 2005, some 74,650 tons of meat were produced, 80% of which was beef and pork. Milk and egg production in 2005 totaled 790,500 and 32,045 tons, respectively.

Before World War II (1939–45), Latvia was a prominent dairy producer; in the postwar period, the number of cattle, poultry, and pigs rose steeply. Milk production stabilized in 1995, after four years of decreases in dairy cattle and milk production.

FISHING

The total catch in 2003 was 115,180 tons, down from 416,197 tons in 1991. Nearly all the landings are from marine fishing. Principal species include sprat, herring, sardines, cod, and mackerel. In February 2005, the Latvian government banned the retail sale of salmon caught in the Baltic Sea and Gulf of Riga, due to levels of dioxin detected in tested fish. Fish packing is an important industry in Latvia; in 2003, fisheries exports amounted to nearly $131.9 million.

FORESTRY

Latvia's forests and woodlands covered 2.9 million hectares (7 million acres), or approximately 47% of the total land area in 2000 (up from 24.7% in 1923). Before World War II (1939–45), the timber and paper industries accounted for 29% of employment; by 1990, the number had fallen to 9%. In 1939, the timber industry contributed 53.5% to total exports; in 1990, wood and paper exports accounted for 2.2% of total exports. The timber cut in 2004 was 12,419,000 cu m (438 million cu ft), with 8% used as fuel wood. Production amounts in 2004 included: sawn wood, 3,920,000 cu m (138 million cu ft); particleboard and plywood, 394,000 cu m (13.9 million cu ft); and paper and paperboard, 38,000 tons. Exports of forest products amounted to over $1 billion in 2003.

Jaako Poyry Consulting AB (Sweden), a subsidiary of Finland's Jaako Poyry Group, has been doing a study for a new pulp plant in Jēkabpils, financed by the Latvian government and the Swedish International Development Authority. The new plant will have a capacity to produce 350,000 tons of bleached softwood per year, and will require an investment of up to $1 billion.

MINING

Latvia was dependent on imports for raw materials. Limestone (for cement) and sand and gravel mines were spread throughout the country. Ceramic clays, dolomite, and gypsum also were produced. Peat (taken from 85 deposits, for fuel) covered approximately 10% of Latvia's territory, with the heaviest concentration in the eastern plains. Tonnage production figures for 2003 were: peat, 1,076,142 metric tons, compared with 1,484,970 metric tons in 2002; and sand and gravel, 1,044,959 metric tons, compared with 761,614 metric tons in 2003. 2004 production figures for cement totaled 295,205 metric tons; gypsum, 159,133 metric tons; and limestone 431,590 metric tons.

ENERGY AND POWER

Hydroelectric generated power is the source for the bulk of the electric power Latvia produces. In 2002, hydroelectric sources accounted for 63% of the power produced. However, Latvia's heavy reliance upon hydropower, means that in a dry year, the country is estimated to be capable of producing only around 60% of the power it needs. Latvia's power imports come largely from Russia, and other Baltic Sea nations. During 2004, Latvia produced 4.4 billion kWh of electricity, but demand for that year came to 5.5 billion kWh. Latvia's electric power generating capacity in 2004 stood at 2.2 GW.

As of 2004, Latvia has no known reserves of oil or natural gas, and no oil refining capacity. Thus the country must import all required gas and petroleum products, most of which comes from Russia. However, Latvia's territorial waters in the Baltic Sea are thought to contain as many as 300 million barrels of oil. In 2002 Latvia awarded five-year offshore exploration rights to a US-Norwegian joint venture.

In 2004, refined petroleum was consumed at a rate of 47,000 barrels per day, with imports averaging the same amount. Demand for natural gas in 2004 came to 62 billion cu ft, all of which was imported. Although Latvia did have recoverable coal reserves of two million short tons in 2004, there was no production or imports of coal.

INDUSTRY

Latvia's industrial base has centered mainly on heavy industries such as chemicals and petrochemicals, metal working, and machine building. Major manufactured items include railway carriages, buses, mopeds, washing machines, radios, electronics, and telephone systems. Since 1995, output of buses has fallen, but there has been an increase in the production of transport vehicles and passenger rail cars. Base chemical production has also declined slightly, as demand for household detergents and fibers has fallen. Other important industries include paper, petrochemicals, mechanical engineering, and communications.

Prior to 1998, the food processing sector provided the largest portion of the country's manufacturing output. Following the 1998 economic crisis in Russia, that sector declined, as Latvia depended upon Russia for exports. As of 2002, however, food processing showed potential for growth. In 2001, industry accounted for 26% of GDP, and employed around 25% of the work force. Although some 50 enterprises are excluded from privatization (including ports, the railway company, and the postal service), only a few large state enterprises had not been privatized as of 2002, including the Latvian Shipping Company (Lasco), and the electricity utility company (Latvenergo). Ninety-eight percent of former state-owned enterprises had been sold as of 2002.

By 2004, the participation of the industry in the overall economic output has decreased to 24.8%, while its share in the labor fell to 25%; agriculture made up 4.4% of the GDP, and employed 15% of the labor force; services came in first with 70.8%, and 60% respectively. The industrial production growth rate equaled the GDP growth rate, at 8.5%, hinting that the services sector grew faster, while the agriculture sector lagged behind.

SCIENCE AND TECHNOLOGY

The Latvian Academy of Sciences has divisions of physical and technical sciences and of chemical and biological sciences.

Fifteen research institutes, most attached to the academy, conduct medical, technical, and scientific research. The University of Latvia (founded in 1919) has faculties of physics and mathematics, chemistry, and biology. The Riga Technical University (founded in 1990) has various engineering faculties. Both are in Riga, as are the Latvian Academy of Medicine (founded in 1951), the Riga Aviation University (founded in 1919), and the Stradin Museum of the History of Medicine. The Latvian University of Agriculture (founded in 1939) is located in Jelgava, and the National Botanical Garden is situated in Salaspils.

In 1987–97, science and engineering students accounted for 23% of university enrollment. In 2002, Latvia had 1,478 scientists and engineers and 282 technicians per million people actively engaged in research and development (R&D). For that same year, Latvia's expenditures on R&D totaled $100.082 million, or 0.46% of GDP, with government providing the largest portion at 42.7%, followed by foreign sources at 35.6%. Business provided the remaining 21.7%. High technology exports in 2002 totaled $51 million, or 4% of all manufactured exports.

DOMESTIC TRADE

The traditional, small, privately owned farmer's markets, bakeries, and dairies are still prevalent throughout the country; however, large supermarkets are making their mark in larger cities. Latvia's center of domestic commerce is in Riga. One of the countries first malls opened with major investment from a Finnish department store chain. The most widely demanded domestic services include dressmaking and repair; house construction and repair; and automotive servicing. As of 2002, privatization of previously state-owned companies and industries was nearly complete.

Shops are generally open from 9 or 10 am to 7 or 8 pm.

FOREIGN TRADE

Like most of the former Soviet republics, Latvia's trade was formerly dominated by the other Soviet states, but it has been relatively successful in achieving a wider range of trade partners. Latvia's major commodity exports include wood (29%), iron and steel (6.3%), textile yarn (5.6%), furniture (4.5%), and fish (1%).

In 2004, Latvia's exports reached $3.6 billion (FOB—Free on Board), while imports grew to $6.0 billion (FOB). Most of the exports went to the United Kingdom (which received 12.8% of total exports), Germany (12%), Sweden (10%), Lithuania (9.1%), Estonia (8%), Russia (6.4%), and Denmark (5.4%). Since domestic demand is predicted to grow slowly in the EU area, Latvian exporters will likely re-orient to faster growing markets, such as Estonia and Russia. Imports included machinery and equipment, chemicals,

fuels, and vehicles, and mainly came from Germany (13.9%), Lithuania (12.2%), Russia (8.7%), Estonia (7%), Finland (6.3%), Sweden (6.1%), Poland (5.4%), and Belarus (4.8%).

BALANCE OF PAYMENTS

The US Central Intelligence Agency (CIA) reported that in 2002 the purchasing power parity of Latvia's exports was $2.3 billion while imports totaled $3.9 billion resulting in a trade deficit of $1.6 billion.

The International Monetary Fund (IMF) reported that in 2001 Latvia had exports of goods totaling $2.22 billion and imports of goods totaling $3.57 billion. The services credit totaled $1.19 billion and debit $692 million.

Exports of goods and services continued to grow in the following years, reaching $4.7 billion in 2003, and $5.1 billion in 2004. Imports followed a similar path, totaling $6.1 billion in 2003, and $6.5 billion in 2004. The resource balance was consequently negative in both years, at around -$1.4 billion. The current account balance was also negative, dropping to -$1 billion in 2003, and -$1.2 billion in 2004. External debt was relatively high, at $10.3 billion in 2004, and an expected $10.8 billion in 2005.

BANKING AND SECURITIES

In 1991 banking matters were transferred to the Bank of Latvia from Soviet bank officials. Previously, Latvia had its branch of the Soviet State Bank (Gosbank). The central bank had the authority to issue Latvian rubles and regulate the commercial banking sector. There are many banks in Latvia, including the Baltic Transit Bank, Banka Atmoda, Latgale Stocj Commercial Bank, Latvian Credit Bank, Investment Bank of Latvia, and the Latvian Land Bank.

Latvia effectively exited the ruble zone on 20 July 1992. By early 1993 the Bank of Latvia introduced a national currency, the lat. The lat is now fully convertible for capital and current account purposes.

Latvia's banking sector has proved one of the country's most successful industries and also its most controversial. Riga has developed into an offshore financial center, offering numbered accounts and related services, and drawing in a substantial chunk of flight capital from other former Soviet republics. Owing to fairly liberal banking laws in the early 1990s, a large number of banks (54 as of May 1995) had been established. Subsequently, capital and other requirements have been progressively tightened. For existing banks, the minimum reserve requirements have been raised from Ls100,000 as of 1995 to Ls1.0 million by 31 March 1998. As of April 1995 all banks had to be audited by one of the recognized international accounting firms. The stricter capital regime has led to an inevitable attrition, with 11 banks losing their licenses between 1992 and 1995. Only some 15 banks made profits in 1994 and had adequate reserves. The audits also revealed huge losses at Baltija Bank (Latvia's largest institution, with some 200,000 private depositors), which had been incurred as a result of systematic fraud. Latvian banks suffered heavy losses in 1999 as a result of the Russian financial crisis.

In February 1997, the Bank of Latvia gave its approval to the proposed merger between the Latvian Savings Bank and the United Baltic Bank of Riga. As a result of the merger, the state now owns 75% of shares in the Latvian Savings Bank. The government's plans are to privatize the newly merged entity. Total assets of Latvia's 23 commercial banks were us$5 billion as of June 2001. In recent years, Scandinavian banks have begun acquiring shares in Baltic banks. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $1.4 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $2.5 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 5.23%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 3.5%.

In 1995, the Riga Stock Exchange (RIGSE) listed 17 companies and had a market capitalization of $10 million. As of 2004, a total of 39 companies were listed, with a market capitalization valued at 1.655 billion. In 2004, the RIGSE rose 43.5% from the previous year to 413.6.

INSURANCE

All of Latvia's insurers, foreign and domestic, must be licensed by the Superintendent of Insurance. Foreign companies entering the Latvian market will find that licenses are relatively easy to obtain, although each class of insurance offered must be approved by the Superintendent of Insurance. In Latvia, third-party automobile liability insurance is compulsory. In 2003, the value of all direct premiums written totaled $209 million, of which nearly all were accounted for by the nonlife lines, which accounted for $200 million. Latvia's top nonlife insurer in 2003 was Balta, with gross written nonlife premiums of $45.9 million, while Ergo Latvija Dziviba was the country's leading life insurer that year, with gross written life premiums of $5.4 million.

PUBLIC FINANCE

Latvia's structural transition out of the planned economy under communism has occurred more or less spontaneously since independence. As of 2002, the thriving private sector accounted for two-thirds of employment and GDP. Privatization is generally considered to be near-finished; although the government still owns a few key companies, most are in private hands, even the utilities, and the government is working to sell off its ownership of what remains in order to satisfy its commitments to the IMF.

The US Central Intelligence Agency (CIA) estimated that in 2005 Latvia's central government took in revenues of approximately $5.6 billion and had expenditures of $5.8 billion. Revenues minus expenditures totaled approximately -$243 million. Public debt in 2005 amounted to 12% of GDP. Total external debt was $13.2 billion.

The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were Ls1,715.5 million and expenditures were Ls1,796.2 million. The value of revenues was us$3,004 million and expenditures us$3,146 million, based on an official exchange rate for 2003 of us$1 = Ls.571 as reported by the IMF. Government outlays by function were as follows: general public services, 19.3%; defense, 4.5%; public order and safety, 8.1%; economic affairs, 11.8%; housing and community amenities, 1.1%; health, 11.2%; recreation, culture, and religion, 2.4%; education, 6.5%; and social protection, 35.0%.

TAXATION

In 1995 Latvia replaced its profits tax with 25% business income tax (BIT). Under amendments in 2001, the BIT rate was reduced to 22% for 2002, and to 19% for 2003, and as of 2005, stood at 15% which applies to all businesses. Reduced rates for small-enterprises

was eliminated in 2004. Branches of foreign companies are taxed at the same rate as Latvian companies, but are eligible for the same deductions and allowances. For companies operating in Latvia, capital gains are included in corporate income and are taxed at the corporate rate. There is a 2% withholding tax for nonresident companies on proceeds from the sale of Latvian real estate. The withholding rate on dividends is either 0% or 10% depending upon whether the payer and receiver meet certain guidelines regarding residency. Withholding taxes on various forms of capital income may be reduced or eliminated according to the terms of bilateral double tax prevention agreements. Shipping companies, cargo or passenger, engaged primarily in international commerce, may choose to be taxed according to a tonnage tax introduced in 2002. There are no local taxes.

As of 1995, Latvians pay personal income tax at a flat rate of 25% of taxable income. Taxable income is determined by lump sum deductions, and specific allowances for social security payments, donations to charity, hospitalization and medical expenses, and some school fees. There is also a property tax and a land tax.

The main indirect tax is Latvia's value-added tax (VAT) with a standard rate of 18% for most goods and services. A reduced rate of 5% is applied to medical (including veterinary) and hotel services, and water and waste collection services. A 0% VAT applies to exports. Exempted from the VAT agricultural services, insurance, rent on dwellings, as well as certain financial services and royalties from copyrights. There are also excise taxes levied on luxury products at rates ranging from 10-100%, customs taxes, and stamp taxes.

CUSTOMS AND DUTIES

Latvia imposes a standard 18% VAT on imports. However, certain items qualify for lower rates of 0–9%. Tariff rates depend on both the type of good imported and its origin. Goods from countries with most-favored nation (MFN) status receive lower rates, usually 15% (but up to 45% for agricultural products), while goods from non-MFN countries receive slightly higher rates, usually 20% (but up to 55% for agricultural products).

Latvia has free trade agreements with Sweden, Finland, Norway, Switzerland, and Kyrgyzstan. US products receive MFN status. Latvia has also formed a free trade area with Estonia and Lithuania. In January 1995, a free trade agreement went into effect with the European Union, which reduced tariffs on most industrial products to zero and set a schedule on tariff reductions over a course of five years for certain agricultural products. Latvia joined the World Trade Organization in February 1999.

FOREIGN INVESTMENT

In November 1991, a foreign investment act was passed permitting joint ventures in the form of either public or private limited companies. Businesses that are at least 30% foreign-owned receive a two-year tax holiday and a 50% tax abatement for the following two years.

At the end of 1995, foreign direct investment (FDI) in Latvia totaled $521 million, based on registered statutory capital. The largest investors were Denmark (26.1%), Russia (19.4%), the United States (13.5%), Germany (6.4%), the United Kingdom (5.2%), and the Netherlands (4.2%). Finland and Sweden were also significant investors. Industry accounted for only 17% of all foreign investment and there were approximately 5,200 firms with a foreign capital share.

FDI inflow into Latvia reached $521 million in 1997, averaging $400 million a year 1996 to 2000, but fell sharply in the global economic downturn of 2001 to less than $201 million. From 1995 to 2001 Latvia stock of FDI nearly quadrupled, reaching $2.3 billion in 2001. In the period 1988 to 1990, Latvia's share of world FDI inflows was almost five times its share of world GDP, but for the period 1998 to 2000, Latvia's share of FDI inflows was only 60% greater than its share of world GDP.

The leading sources of FDI from 1996 to 2001 were the United States (13%), Germany(11%), and Demark (11%). The primary destinations of foreign investment inflow were trade (22%), finance (16%), and business services, especially real estate (16%). The largest foreign affiliate is the telecommunications company Lattelekom SA of Finland. The largest foreign bank invested is Hansabanka SA of Estonia.

As a new member of the EU, Latvia registered an increased inflow of capital from Western Europe in 2004. This trend is expected to temper down in future years however. Also, the relative share of FDI in capital flows will likely go down, which will put an increased burden on domestic banks. Despite this, Latvia remains an attractive market for investments, and the prospects of joining the euro zone works towards the country's favor.

ECONOMIC DEVELOPMENT

The government began introducing economic reforms in 1990 to effect the transition to a market-driven economy. Individual and family-owned businesses, cooperatives, and privately and publicly held companies are now permitted. The privatization process was simplified with a 1994 law that created the Privatization Agency (PA) and the State Property Fund. Distribution of privatization vouchers was completed by March 1995, with certificates valued at Ls2.8 billion distributed to 2.2 million Latvians.

The privatization program focuses on international tenders and public offerings of shares. By mid-1994, 450 state enterprises had been transferred for privatization. The first international tender of 45 enterprises came in November 1994, followed by 80 more in 1995. Large-scale privatization began in 1996 and continued into the beginning of the 21st century, when privatization was almost complete (with the exception of large state utilities).

In 2001, Latvia negotiated a 20-month, $44-million Stand-By Arrangement with the International Monetary Fund (IMF). Real GDP growth was strong in 2001–02, led by investment and consumption. Inflation was low during those years. In 2003, per capita GDP stood around 50% above its level in 1995. Latvia's economy in 2003 was regarded as one of the best of the 10 countries slated for EU admission in 2004. The government was taking steps toward achieving a balanced budget by reducing government spending in 2003.

In anticipation of the 2006 election, the government is seeking to exploit the strong revenue growth and increase public spending. In addition, it plans to sell off its share in the Ventspils oil terminal and thus give an extra boost to the overall economic growth. One of the biggest threats to economic expansion is the, recently, growing inflation rate—which could also affect Latvia's prospect of joining the euro zone in 2008. In an attempt to curb inflation the government will likely cut taxes on diesel fuel, and ask the EU to temporary lift the ban over imports of fuel that do not meet EU standards.

SOCIAL DEVELOPMENT

Social insurance provides benefits for old age, disability, and survivorship pensions for employees and self-employed persons. The first laws were enacted in 1922, and most recently were updated in 2001. Pensions are funded by contributions from employees and employers in most sectors. Age requirements for pensions are set at 62 for men and 59.5 for women, but is increasing to meet the same standards for men by 2009. The government funds programs to provide for active military personnel, individuals caring for infants, and spouses of diplomatic staff. Sickness and maternity benefits are provided to employed persons, while medical benefits are provided to all permanent residents. A universal program of family allowances exists, as well as workers' compensation and unemployment programs.

Employment discrimination based on gender is legally banned, although women are barred from certain occupations considered dangerous. In practice, women face unequal treatment in terms of both pay and hiring, including discrimination stemming from the cost of legally mandated childbirth benefits if a woman is hired. Sexual harassment is common in the workplace although prohibited by law. Domestic violence is pervasive. As of 2004 there were no shelters for abused or battered women, and few resources exist for victims of sexual assault.

Latvia's main human rights problem in recent years stems from the large number of minorities who were not granted citizenship after independence. These noncitizens, mainly ethnic Russians, do not have clear travel, property, and residency rights. Instances of excessive use of force by security forces were still reported, and prison conditions remained poor.

HEALTH

Primary care is provided at large urban health centers, hospital and walk-in emergency facilities, individual and group private practices, rural clinics staffed by midwives and physicians' assistants, and workplace clinics run by large private employers and the military. Total health care expenditure was estimated at 6.7% of GDP. As of 2004, there were an estimated 291 physicians, 509 nurses, 53 dentists, and 21 nurses per 100,000 people. In the same year, Latvia had 151 hospitals, of which 31 were located in Riga (including all specialized hospitals).

As of 2002, the crude birth rate and overall mortality rate were estimated at 8.3 and 14.7 per 1,000 people respectively. Life expectancy in 2005 was 71.05 years and the infant mortality rate was 9.55 per 1,000 live births. The total fertility rate in 2000 was 1.2 per woman during childbearing years. Immunization rates for one-year-olds were as follows: diphtheria, pertussis, and tetanus, 95%; and measles, 97%. Measles, neonatal tetanus and polio had been almost completely eradicated.

Cardiovascular disease is a major cause of mortality in Latvia, with a rate of nearly 400 per 1,000 people over age 65. The HIV/AIDS prevalence was 0.60 per 100 adults in 2003. As of 2004, there were approximately 7,600 people living with HIV/AIDS in the country. There were an estimated 500 deaths from AIDS in 2003.

HOUSING

In the 1990s 165,000 families (one out of five) were registered for new housing. Approximately 200,000 people lived in the 8% of existing housing stock that was in substandard condition. But the government has made some progress in reforms for the housing sector. In 1993, 54% of housing was owned by state and municipalities. In 1999 the majority of property (70%) was privately owned. The government anticipates that by the end of the privatization process about 80% of housing will be private property, while municipalities will maintain only 20% of the housing as low-cost rental or social houses.

At the 2000 census, about 26% of all respondents lived in single-family houses; 68.5% lived in apartments. About 60% of all dwellings were owner occupied. About 52% of the population were living in housing units built in 1970 or earlier. About 43.7% of the population were in dwellings built during the period 1971–95.

Since 1996, the government has signed several agreements with international organizations for funds to improve housing projects. In 2000, the Housing Crediting Program was initiated to promote a new mortgage system.

EDUCATION

The modern Latvian educational system is based on the reforms introduced in 1991. Compulsory education lasts for nine years beginning at the age of seven. At this stage, students have a choice between basic vocational school (two or three years), general secondary school (three years), or vocational secondary school (four years, offering a diploma that may fulfill the prerequisite for university studies).

In 2001, about 60% of children between the ages of three and six were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 86% of age-eligible students. The same year, secondary school enrollment was about 88% of age-eligible students. Nearly all students complete their primary education. The student-to-teacher ratio for primary school was at about 14:1 in 2003.

Entrance examinations are a prerequisite for admission into universities. Higher education is offered by both private and public institutions. The state offers free higher education in some areas of specialized study. Latvia has a total of about 34 state-recognized institutions of higher learning, including two major universities: the University of Latvia and the Riga Technical University. In 2003, about 73% of the tertiary age population were enrolled in some type of higher education program; with 55% for men and 91% for women. The adult literacy rate for 2004 was estimated at about 99.7%.

As of 2003, public expenditure on education was estimated at 5.8% of GDP.

LIBRARIES AND MUSEUMS

The National Library in Riga holds about 2.1 million volumes; the main library site was designed by Gunnar Birkerts, who was born in Latvia but has an architectural firm in the United States. The Latvian Academic Library in Riga holds 1.2 million books and the University of Latvia holds about two million; both libraries also include large collections of periodicals. The Riga City Library (Bibliotheca Rigensis), established in 1524, was the first public library in the nation. In 2005, there were about 892 public libraries in the nation, including 7 branches of the Latvian Library for the Blind.

The larger museums are located in Riga, including the State Museum of Fine Arts, the History Museum of Latvia, The Latvian Photography Museum, and the Museum of Foreign Art. Riga also hosts the Museum of Natural History; the Riga Film Museum; the State Museum of Art; the Literature, Theater, and Music Museum; the Latvian Sports Museum, and the Latvian War Museum. In 1990, Bauska Castle was converted into a historic museum. The Bauska Art Museum holds over 8,000 works of art by Russian and Western European artists. With the end of the Soviet era, a number of new museums devoted to Latvian culture and history opened in the 1990s, including museums of architecture, photography, telecommunications, Jewish life in Latvia, and a museum chronicling 50 years of Soviet occupation. There are a local history museums in almost every region.

MEDIA

International communications links are via leased connection to the Moscow international gateway switch and the Finnish cellular network. In 2003, there were an estimated 285 mainline telephones for every 1,000 people; about 16,200 people were on a waiting list for telephone service installation. The same year, there were approximately 526 mobile phones in use for every 1,000 people.

The Committee for Television and Radio controls broadcasting. Domestic and international programming in Latvian, Russian, Swedish, English, and German is broadcast by Latvian Radio. In 1998, there were 8 AM and 56 FM stations. Latvian State Television broadcasts on two channels, and there are several independent television stations with daily broadcasts. Cable and satellite services are available, and foreign broadcasts can also be seen. In 2003, there were an estimated 700 radios and 859 television sets for every 1,000 people. About 176.8 of every 1,000 people were cable subscribers. Also in 2003, there were 188 personal computers for every 1,000 people and 404 of every 1,000 people had access to the Internet. There were 80 secure Internet servers in the country in 2004.

Latvia publishes many newspapers, periodicals, and books, in both Latvian and Russian. The most widely read newspapers (with 2002 circulations) are Diena (The Day, 110,000), Sovietskaya Latviya (Soviet Latvia, 71,300), SM Segodna ( a Russian language daily, 65,000), and Riga Balss (The Voice, 56,800). Foreign language newspapers include the weekly Baltic Times in English.

The constitution provides for free speech and a free press, and the government is said to respect these rights in practice. A 1991 Press Law prohibits censorship of the press or other mass media; however, a Law on the Media imposes regulations on the content and language of broadcasts.

ORGANIZATIONS

Important economic organizations in Latvia include the Latvian Chamber of Commerce, an organization that promotes trade and commerce with its Baltic neighbors, Europe, and The Russian Federation. There are five business and trade organizations including: the Latvia International Commerce Center, Latvian Small Business Association, and the World Latvian Businessmen's Association. The largest trade union in Latvia is the umbrella organization of the Association of Free Trade Unions, founded in 1990.

The Latvian Academy of Sciences promotes public interest and education for all branches of science. Several medical fields have professional associations. There are also several environmental protection and preservation organizations.

National youth organizations include the Student Council of the University of Latvia, United Nations Student Association of Latvia, YMCA/YWCA of Latvia, Junior Chamber, and the Scout and Guide Central Organization of Latvia. There are a wide variety of sports associations represented in the country. National women's organizations include the Women's National League of Latvia and the Latvian Association of University Women.

There are national chapters of the Red Cross Society and Caritas.

TOURISM, TRAVEL, AND RECREATION

With a population of almost one million, Riga is the major tourism center of the Baltic states. Its historic architecture has undergone extensive restoration. The white sand beaches offer sailing and river rafting along with many spas. Latvia boasts 12,310 rivers and 3,000 lakes, which are popular for boating, as well as country castles and medieval towns. Tennis, horseback riding, fishing, hunting, sailing, water sports, and winter sports are available to visitors, as well as a ski marathon in February, the Sport Festival of Riga in May, and the International Riga Marathon in July.

All visitors need passports valid for at least three months after the planned stay. Visas are not required for stays of up to 90 days.

There were 2,469,888 foreign visitors who arrived in Latvia in 2003, an 8% increase from 2002. The 7,618 hotel rooms with 14,983 beds had a 32% occupancy rate. The average length of stay was two nights. Tourist expenditure receipts totaled $271 million.

In 2005, the US Department of State estimated the daily cost of travel in Latvia at $219.

FAMOUS LATVIANS

Guntis Ulmanis (b.1939) was president of Latvia from 1993 to 1999. Vaira Vike-Freiberga (b.1937), Latvia's first female president, succeeded him in 1999, and was reelected in 2003. Turis Alumans was Latvia's first poet. He started a school of poetry that produced the poets Krisjanis Barons (1823–1923) and Atis Kronvalds in the 19th century. Romantic literature in the 20th century was symbolized by Janis Rainis's (1865–1929) Fire and Night.

DEPENDENCIES

Latvia has no territories or colonies.

BIBLIOGRAPHY

Dreifelds, Juris. Latvia in Transition. New York: Cambridge University Press, 1996.

Eglitis, Daina Stukuls. Imagining the Nation: History, Modernity, and Revolution in Latvia. University Park, Pa.: Pennsylvania State University Press, 2002.

Estonia, Latvia, and Lithuania: Country Studies. Washington, D.C.: Department of the Army, 1996.

Frucht, Richard (ed.). Eastern Europe: An Introduction to the People, Lands, and Culture. Santa Barbara, Calif.: ABC-CLIO, 2005.

Karklins, Rasma. Ethnopolitics and Transition to Democracy: the Collapse of the USSR and Latvia. Baltimore: Johns Hopkins University Press, 1994.

McElrath, Karen (ed.). HIV and AIDS: A Global View. Westport, Conn.: Greenwood Press, 2002.

Plakans, Andrejs. The Latvians: A Short History. Stanford, Calif.: Hoover Institution Press, Stanford University, 1995.

Shafir, Gershon. Immigrants and Nationalists: Ethnic Conflict and Accommodation in Catalonia, the Basque Country, Latvia, and Estonia. Albany: State University of New York, 1995.

Terterov, Marat. Doing Business with Latvia. Sterling, Va.: Kogan Page, 2003.