Latvia's Economic Crisis
Latvia was governed by a right of center administration. Prime Minister Ivars Godmania gave his resignation on Friday to President Valdis Zatlers. Godmania had only been in that position for a little over a year. Latvia left the Soviet Union in 1991 and since then the politics have not been stable. Godmanis will stay in power until a new coalition is formed.
Latvia is a country of over 2.2 people. It is the country from which my ancesters came. In 2004 it joined the European Union iand along with its neighbors had the highest growth figures. Now Lativia has the lowest.
The European Union helped Latvia's government with an aid package of close to $10 billion. Latvia is cutting everywhere it can with schools and hospitals being threatened with closure!
Latvia's economy was driven by the export business. There is no export business currently meaning (We Americans can certainly identify.) that unemployment is very high and pay cuts for those still working are the norm. People are not trusting the government which leads to violence and uprising which is exactly what is happening in Latvia.
The government was one that was financially rigid. Latvians are hoping that new early elections will result in a less strict government.
Like America some think that Latvia is going through a normal period of crisis like we are told that there have historically been ups and downs. Some Latvians expect a recovery soon. "It is better to take the blow immediately than to have a long, steady slide," Mr. Aslund, an expert on the region, said of Latvia's economic battering. (NY Times)
Sources
Published by jobythebay
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4 Comments
Post a CommentInteresting story. I have friends from Latvia.
Yikes. so sorry.
Nicely written.
Didn't know about this, thanks.