R E P O R T THEME CONFERENCE OF THE BALTIC ASSEMBLY Development of Human Resources under Conditions of Labour Migration

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1 R E P O R T THEME CONFERENCE OF THE BALTIC ASSEMBLY Development of Human Resources under Conditions of Labour Migration May, Sigulda, Latvia The theme conference of the Baltic Assembly was held on May 2007 in Sigulda. The agenda of the conference included two topics: I. Facilitating Return of the Labour Force; II. Increasing Labour Force Effectiveness. The conference was chaired by members of the BA Social Affairs Committee, as well as by the sociologist Aija Lulle. During the conference, BA Presidium and committee meetings were held. Among the participants of the conference there were parliamentarians of the Baltic and Nordic countries, government authorities, experts and guests from international organizations. At the end of the conference, its participants adopted the Final Document (see the Annex). * * * H.E. Mr. Indulis Emsis, Chairman of the Saeima of the Republic of Latvia, in his opening address stressed that the Baltic Assembly was formed at a crucial time when there was a need for a single and strong force able to ensure the Baltic States future. Cooperation of the Baltic States has been successful, and it should not be underestimated. Baltic cooperation can serve as an example for other countries. Recent events in Tallinn prompted the Baltic States to discuss their basic values, namely, the sovereignty of the Baltic States, the rule of law, as well as the issues of loyalty, social integration and solidarity. The world is diverse, and there will always be someone who seeks the weakest links or points. It is important for the Baltic States to continue their cooperation. The cooperation of the Baltic States is not merely declarative. The Baltic Assembly and the Baltic Council of Ministers are practical forms of cooperation, and even today Latvia, Lithuania and Estonia have come together to discuss and seek solutions for a specific problem. Since the Baltic States have joined the EU and NATO, migration is one of the most discussed issues. 1

2 Ērika Zommere, President of the Baltic Assembly, emphasized that for this conference two issues have been identified on which the Baltic States cooperation can make a significant contribution as the Baltic States face the challenges of globalization: facilitating remigration, or the return of those who have emigrated, and increasing work productivity. During recent years, the Baltic States have developed and increased their standard of living. In order to continue this trend, it is essential to invest in people. That is why development of human resources is one of Baltic Assembly s priorities. The Baltic Assembly emphasizes the importance of strategic and timely investments in the development of human resources. The important questions that need to be answered during the conference are as follows: How qualitative are our human resources? What added value do employees give? How is it possible to compete under the conditions of globalization? About 86, 000 people from Latvia are working abroad, and in Lithuania the number is even higher 300,000 inhabitants have left Lithuania. In Estonia the situation is also critical because the inhabitants of Estonia commute between Finland and their home country. A chance to earn more is one of the reasons way people choose to leave their countries, but it is not the only reason. Other reasons include problems in personal or professional life, bad working conditions, and lack of opportunities for advancement. The mission and task of the Baltic Assembly is to concentrate its efforts on finding ways to ameliorate the situation in the development of human resources. There are many possible solutions for dealing with the problem, such as introducing modern technologies and an effective management system, encouraging and financially supporting employees and investing in lifelong learning. H.E. Mrs. Nino Burjanadze, Chairperson of the Parliament of Georgia, in her opening speech stressed that Georgia is a country in transition and that its aim is to establish new democratic institutions. Georgia understands perfectly well how important it is to establish effective state administration and to build a strong democratic system so that it may become a reliable international partner. Democratic reforms are very important, and Georgia is working very hard to implement the needed reforms. Georgia needs a good example to put its reforms on the right track. The Baltic States are a positive model of democratic development for Georgia and other countries in transition. The Baltic Assembly is a forum where Georgia can seek assistance and support. Today Georgia s development is often considered as a test case for the so-called new democracies in the region; if Georgia succeeds, its example will serve as a model of success for the region and other countries as well. One of the main domestic priorities of the Georgian government is to implement the ongoing economic reforms: create better conditions for foreign investors and draft more effective legislation to improve the business climate in the country. 2

3 Migration issues and the ways to persuade migrant workers to return are very important to Georgia as well because 20% of the Georgian population has gone abroad to search for better jobs. Fifty-four percent of people who are leaving Georgia are highly educated; therefore, it is very important to create better working conditions. Alongside with economic reforms, an effective border control policy must be implemented in order to prevent illegal migration. Georgia has declared its readiness to start discussions on a visa facilitation agreement with the European Union. Georgia has been quite successful in combating corruption, a fact which also demonstrates Georgia s efforts to develop democratic institutions; thus, Georgia is creating better conditions for migrants to return. Labour force migration trends in the Baltic States H.E. Mr. Artis Pabriks, Minister for Foreign Affairs of the Republic of Latvia, in his report characterized the current situation in Latvia. At the moment Latvia, on the one hand, is experiencing fast economic growth, but, on the other hand, its demographic situation is unfavourable. A challenge for Latvia at this point is the free movement of people within the European Union. There are several problems regarding the labour market in Latvia namely, there is no research about the labour market demands in Latvia, and the statistical data are not fully reliable. There is a shortage of workers, but at the same time the employment rate is rather high. A very important issue is the differences between regions. Another problem is that the Latvian labour market is not attractive to foreigners because of expensive administrative procedures, weak control over illegal employment, divided institutional accountability and a negative attitude by inhabitants. The main solutions would be more appropriate use of human resources, development of remigration programmes and temporary involvement of workers from Third World countries. Gaining experience from other EU member states is also very important. H.E. Mr. Urmas Paet, Minister for Foreign Affairs of the Republic of Estonia, spoke about the following main issues regarding labour force migration trends: first, emigration from Estonia after its accession to the EU and, second, Estonia s labour needs. Regarding emigration from Estonia: before its accession to the EU, 42% of the people living in Estonia expressed their desire to go abroad; however, after the accession only 3% went abroad; therefore, currently only 20,000 persons, or about 3.3% of the total working-age population, have left Estonia. It is very important that many Estonians have already returned home. A foreign labour force is also 3

4 arriving in Estonia. At present about 5, 000 foreigners are working in Estonia. The main problems with the shortage of workers are associated not with emigration but rather with the decreasing and ageing of the population. During the last five years, thanks to the improved family support system, the birth rate in Estonia has increased considerably. Unfortunately, the ratio still remains negative. The number of workers in agriculture is decreasing. Economic progress is also advanced through labour force growth and higher labour productivity. This, in turn, implies investments in research and development. According to Eurostat, productivity in Estonia is among the lowest in the EU in 2005 it was only 58.6% of the EU's average. Technological development is one of the ways to increase productivity. Estonia's promising future economic spheres include information and communication technologies, biotechnologies, and material technologies. The objective is to implement these technologies in spheres such as health care, environmental protection, energy and transport. H.E. Mr. Petras Vaitiekūnas, Minister for Foreign Affairs of the Republic of Lithuania, stressed that migration is a very important and serious topic because it has its negative and positive effects. A huge wave of emigrants is definitely a major concern because Lithuania s human potential is decreasing, the situation may negatively affect technological development, and there is already a shortage of workers. Lithuania might face language problems in the future. It is very important to think about the future of the Baltic States and other countries. Another problem is caused by the fact that people who are leaving Lithuania leave their children behind. Lithuania has identified measures that need to be implemented. The measures are related mostly to the education system, improvement of business conditions and improvement of the social system. It is important to implement these measures to avoid the negative consequences caused by labour force migration; therefore, it is vitally important to define long-term policies. Topic I: Facilitating Return of the Labour Force Oskars Kastēns, Minister for Special Assignments for Society Integration Affairs, Latvia, stressed that the problem of migration is very acute in all three Baltic States. The Secretariat of the Minister for Special Assignments for Society Integration Affairs has set up a working group whose aim is to evaluate the main reasons why people are leaving Latvia. The working group will conduct research which will serve as the basis for drafting an action plan. Other working groups have also been established to deal with issues regarding labour force migration. These working groups are composed of representatives from the Latvian Employers Confederation, the public 4

5 sector, private sector and academic circles in order to discuss problems and seek solutions. People are leaving Latvia mostly for economic reasons. The problem is that not only people with a low educational level are leaving Latvia but highly educated persons as well. Inga Liepa, Head of the Secretariat of the Ministry for Special Assignments for Society Integration Affairs, supplemented what Mr. Kastēns said and informed the participants of the conference that the established working group has already started its work in summarizing the main reasons why people are leaving Latvia. It is very important to identify the main factors which cause people to leave their home country. The main factors are related to the lack of social security guarantees, economic considerations and also the attitudes of employers. The working group identified three main areas in which the situation ought to be improved: monitoring the migration process, decreasing the number of migrants and promoting their return. The working group also suggested various measures which should be taken: first, strengthening cooperation between the public and private sectors; second, strengthening cooperation between businesses and educational institutions; third, improving the working environment; fourth, providing information to those who have been abroad for more than 3 years; and fifth, removing institutional obstacles. Agrita Groza, Deputy State Secretary of the Ministry of Welfare, reported about the management of labour migration and stressed that the Ministry of the Interior has drafted a concept for developing labour migration policy. The Ministry s proposals include better regulations, an improved labour migration scheme based on a labour market forecasting system and new schemes for the implementation of nationwide investment projects. Approximately 86,000 people from Latvia are working or studying abroad. There are external and internal factors causing people to make their choice to leave Latvia. Among the external factors, globalization and free movement of persons in the EU can be mentioned. Internal factors include income differences, better working conditions abroad, as well as a desire to acquire new experiences. By 2010, from 10,000 to 16,000 people will leave Latvia every year. The main motivation for the migrants to return to their homeland would be expectations of a higher salary and better working conditions, potential for professional development, greater support for families with children, more favourable regulations for business development and accessibility of jobs. 5

6 Ede Teinbas, Director of the Estonian Foundation for Migration, reported that the Estonian Foundation for Migration was established in 1992 in order to deal with remigration issues, internal migration and support for those who are returning, as well as to conduct research and provide information. Estonia is providing financial support to people who are willing to return to Estonia. The applicant must be an ethnic Estonian or a citizen of Estonia for at least 10 years. The applicant must be in need of financial support in order to be able to return to Estonia. In 2006 approximately 40 people have returned to Estonia. Estonia is greatly concerned about the protection of the Estonian language; therefore, the government coalition has adopted the language protection programme for The goal of the governing coalition is to implement a policy for ensuring the constitutional protection of the Estonian language, for expanding the area of its use and for increasing the number of the Estonian language users. Between 2007 and 2011, the governing coalition intends to implement the following economic and legal measures: an effective national programme for calling Estonians to return home and language and adaptation courses for newly arriving immigrants and returnees. Marius Greičius, chief specialist of the International Law Division of the International Affairs Department of the Lithuanian Ministry of Social Security and Labour, in his presentations reported about the strategy for regulating economic migration which has recently been approved by the government of Lithuania. One of the aims of the strategy is to facilitate the return of Lithuanians. He pointed out to the participants of the conference that the mass media in Lithuania are also involved in dealing with this problem; therefore, many articles are appearing in the newspapers. The income received by people working abroad is much higher than the salary they would receive in Lithuania, but the expenses are also higher. Another problem is caused by the agencies which recruit people for work abroad. These agencies are not always reliable. People who work abroad have more opportunities to save some money, but, on the other hand, their living conditions are often very bad. On the basis of these considerations, the government of the Republic of Lithuania has announced its position regarding free movement of the labour force. Lithuania has stressed that foreigners may join the Lithuanian labour market provided there is a clear shortage of the labour force which limits business opportunities, and foreigners may work only for a limited time. In 2006, 5.5 thousand persons reemigrated to Lithuania. The government of Lithuania has conducted a survey on the measures for calling people to return to Lithuania. This survey revealed that there is a clear lack of information on the recent changes in Lithuania and the rights of those who are returning. The government has commenced its work 6

7 on issuing a publication with all the topical information for people who intend to return to Lithuania. Hans Wallmark, member of the Swedish delegation to the Nordic Council, reported that there is no Nordic policy regarding labour force migration issues and that it is entirely up to each individual country to decide how to deal with problems regarding migration of the labour force. Sweden is a European country that, during the last 30 years, has absorbed the largest number of immigrants. Debates in Sweden are very active on issues how to facilitate their return and how to help people return to their homeland. Sweden is still a country of immigration not emigration. Sweden is not encountering the opposite problem, namely, the problem of attracting emigrated Swedes back to their homeland; nevertheless, the experience of Sweden could be interesting in the context of the present conference because Sweden can share ideas with the Baltic States regarding their efforts in facilitating the return of migrants. According to statistics, in 2006 Sweden was the third largest receiving country in the EU. The Swedish government has recently suggested the implementation of an economic reestablishment support programme for those who, after being denied a residence permit, voluntarily choose to return to their home countries. This initiative is one of the indicators of a well-functioning asylum system. An asylum system should be based on the principle that those whose asylum request, after appropriate examination, has been denied can get help to leave the country in the best way possible. Another reason for this initiative is that the individuals who have made a decision to emigrate often find themselves in a very complicated economic situation after they have been denied asylum. This predicament can temp them to turn to smugglers to help them reach another country. Discussions Bronius Pauža, Vice Chairman of the BA Economic Affairs, Communications and Informatics Committee, stressed that the issue regarding labour force migration is very topical for the Baltic States. He thanked the participants for their reports and emphasized that there are many measures which need to be implemented in order to deal with problems regarding labour force migration. Mr. Pauža asked participants what the governments or other authorities of the Baltic States, or even the Baltic Assembly, could do together in order to better resolve these issues. Mr. Pauža mentioned the fact that each of the three Baltic States has a problem regarding a shortage of medical staff; therefore, if one of the countries creates better conditions, doctors and other 7

8 medical staff will seek work in that country. A shortage of doctors is a social problem rather than a merely economic one. The Baltic States should act together in order to solve all the topical problems. Silva Bendrāte, Chairperson of the BA Social Affairs Committee, emphasized that currently labour migration is one of the most topical issues for the BA Social Affairs Committee. The Committee has urged members of governments to discuss this issue from a broader perspective. Exchange of opinions and sharing experience with other countries serve as an example that there is a need for further cooperation. It is very important that when countries draft their migration policy, it should include cooperation with other countries as an important tool for solving topical problems. Jānis Eglītis, Chairman of the BA Education, Science and Culture Committee, in answering the question asked by Mr. Pauža, pointed out that each country has a different situation and different action plans; however, there are enough internal reserves for solving problems. Mr. Eglītis told the participants of the conference that in Latvia, for example, there are persons who have received teacher s qualifications, but the problem is how many of them work in schools. It is important to consider all aspects of problems. Mr. Eglītis emphasized that, in his opinion, the Baltic States have enough internal capacity to solve the problems. Oskars Kastēns, Latvian Minister for Special Assignments for Society Integration Affairs, stressed that every country is unique if Latvia, Lithuania and, to a lesser degree, Estonia are compared. In Latvia and Lithuania the situation is very similar. Lithuania has taken measures which Latvia is also planning to take. It is important to continue a dialogue with representatives of parliaments and ministers of other countries and to share information regarding planned activities. Mr. Kastēns emphasized that if the measures are effective in Lithuania, they will be successful in Latvia as well. Pēteris Tabūns, member of the BA Education, Science and Culture Committee, inquired if there are any data on migration of the labour force in the Baltic States namely, how many Latvians are working in Lithuania or Estonia and vice versa? Marius Greičius, chief specialist of the International Law Division of the International Affairs Department of the Lithuanian Ministry of Social Security and Labour, answered that there are 8

9 official data regarding how many Lithuanians work in Latvia and Estonia. Latvia is rated as the 10 th country of destination because people choose to go to the UK, Ireland and Germany. He informed the conference participants that there is a publication regarding labour force migration within the Baltic States, and he offered to send Mr. Tabūns an electronic version of it. Agrita Groza, Deputy State Secretary of the Latvian Ministry of Welfare, added that according to statistics, labour force migration within the Baltic States is not very active; however, it is important to take into consideration that internal migration within the Baltic States is very visible as in the case of Valka Valga, where people commute between both towns. Oskars Kastēns, Minister for Special Assignments for Society Integration Affairs, talked about double citizenship and stressed that this issue will be included in the informative report that will be submitted to the government. Ede Teinbas, Director of the Estonian Foundation for Migration, reported that there is a Citizenship Law in Estonia which states that if a person is born abroad where he/she is allowed to receive citizenship, then dual citizenship is allowed. Mailis Reps, member of the BA Presidium, Deputy Chairperson of the Estonian delegation to the BA, pointed out that the issue regarding dual citizenship has not been officially discussed because there are many non-citizens in Estonia; however, if a foreigner s child is born in Estonia, the parents have an opportunity to choose its citizenship. Topic II: Increasing Labour Force Effectiveness Kristīne Vāgnere, Deputy State Secretary on policy issues of the Ministry of Education and Science, stressed that there were certain problems in Latvia which caused people to leave Latvia. The main problems were uncompetitive salaries and an inadequate social support system, teacher shortage in certain areas, as well as insufficient financial, technical and material resources. National priorities include educated and creative people, technological excellence, flexibility of enterprises and well-developed science and research. Therefore, there is a need to improve legislation, the work environment and socio-economic conditions, as well as to attract young teachers to educational institutions. It is important to facilitate independent acquisition and application of knowledge by developing creative and determined individuals, by ensuring lifelong learning opportunities, by attracting funding and new technologies, and by giving people an 9

10 opportunity to become productive and active employees or highly qualified specialists. Regarding the educational system in Latvia, the main problem is the age of the majority of teachers most of them are over 40. Therefore, there is a need to attract young teachers. In order to do that, it is very important to improve the instructional process, to strengthen the human resource development policy in the sphere of education, as well as to improve the existing situation and to facilitate a dialogue with teachers, partners and interested persons. Jurga Šimkutė, chief specialist of the Human Resources Development Division of the Labour Department of the Ministry of Social Security and Labour, spoke on the legal aspects of human resources in Lithuania. Various initiatives have been taken to improve the working environment and to decrease the unemployment level. However, long-term unemployment of young people remains a serious problem. Although the situation is improving, it is still not satisfactory. Lithuania adopted a national strategy for implementing the Lisbon Strategy, and as a result it determined what still needs to be done. Lithuania s employment policy calls for an interaction among employment, labour quality and productivity. A new law on vocational training was adopted in April; however, it will come into force only on 1 January The law sets forth that the qualification of graduates will be assessed by special organizations, such as employers organizations and trade unions. The main task is to develop a system for increasing qualification which would result in a knowledge-based society. Astrīda Burka, Director of the Entrepreneurship and Industry Department of the Latvian Ministry of Economy, described the measures that have been taken to increase business competitiveness in Latvia. In the first half of 2006, there were 55,621 economically active enterprises in Latvia. Support is provided to universities. Within the framework of the Programme for Development and Improvement of the Applied Research Infrastructure, support has been provided to 9 higher education institutions in order to promote cooperation among science, education and the private sector. Development of new products and processes is essential; therefore, a National programme on Support for the Development of New Products and Technologies has been drafted. There is also a need for a favourable business environment. Funding planned for projects to be implemented in the framework of the Innovation Centre and Business Incubators Programme for will be provided to support initiatives taken by universities and research institutes willing to develop new innovation centres and local authorities willing to develop business incubators. The Business Competitiveness and Innovation Promotion Programme for has also been developed. Its main goals are to increase the capacity and effectiveness of the national innovation system by establishing a 10

11 legal, financial and informational framework appropriate for innovations, as well as to significantly increase competitiveness and productiveness of the industrial sector by facilitating the production of goods with high added value, by increasing the use of high technologies in production, by improving the export structure, and by expanding the use of innovative technologies and modern management methods. The national innovation system can be improved by promoting research in institutions of higher education and enterprises, by promoting knowledge transfer and commercialization, by using innovative solutions at enterprises and by providing highly qualified professionals, as well as by improving the material and technical base for knowledge. Regarding future prospects, it is determined that there is a need to establish technology incubators, to support high added value entrepreneurship and to support attracting highly qualified professionals to enterprises. Mailis Reps, member of the BA Presidium, Deputy Chairperson of the Estonian delegation to the BA, pointed out existing problems regarding increasing labour force effectiveness in Estonia. The first problem is related to the education system, which is very similar in all three Baltic States. Teachers in the Baltic States are the oldest in comparison with those in other European countries. There is an insufficient number of teachers in certain fields. The second problem is that statistics does not reveal this shortage of teachers. The reason for that is a competition between schools. Every school wants to attract more students; therefore, it does not stress that there is a shortage of teachers in certain fields. The main solution which appears in many documents regarding the educational system is increasing classroom hours. However, this solution may not work in situations in which teachers cannot present less attractive subjects, such as physics or math, in an attractive way. All three Baltic States must work together to increase labour force effectiveness. Discussions Rima Baškienė, Vice Chairperson of the BA Social Affairs Committee, asked her Estonian colleagues about requalification opportunities and what people should do if they cannot afford to requalify. Is there any financial support offered in Estonia to those who want to retrain? Mailis Reps, member of the BA Presidium, Deputy Chairperson of the Estonian delegation to the BA, reported that the system in the Baltic States is similar. The Estonian government is paying for full-time students, but for adults and students who are not full-time students, the state is organizing weekend, evening and Internet courses. 11

12 Jānis Eglītis, Chairman of the BA Education, Science and Culture Committee, is gratified because an introduction to business studies has been included in the draft curriculum for general education in Latvia. At the same time, he pointed out that he had also seen a draft curriculum which did not contain business studies as a mandatory subject. Mr. Eglītis also asked why different ministries present contradictory information. Astrīda Burka, Director of the Entrepreneurship and Industry Department of the Ministry of Economy, reported that currently the draft curriculum is being discussed by the public and by the ministries, and she is glad that Mr. Eglītis has noticed mistakes and differences in the draft. That is the goal of public consultations; only after discussions, the final decision will be made. Mrs. Burka stressed that the most important thing in the study process is to make it attractive to students. Valērijs Agešins, member of the BA Legal Affairs and Security Committee, asked the opinion of representatives from ministries of all three Baltic States about how to ensure that in the school optimization process every single school, including rural schools, is assessed and, insofar as possible, how to retain the present number of secondary schools. Kristīne Vāgnere, Deputy State Secretary on policy issues of the Ministry of Education and Science, with regard to school optimization noted that by 2009 the administrative territorial reform will be completed; therefore, there will be changes in the school network. Mrs. Vāgnere stated that every case of closing a school is considered individually. Regarding teachers, Mrs. Vāgnere admitted that the main problem is low salaries. Pēteris Tabūns, member of the BA Education, Science and Culture Committee, stressed that all three Baltic States have a labour force shortage. For this reason approximately 10,000 workers will be invited to Latvia in the near future. Mr. Tabūns pointed out that at the same time there is still unemployment in Latvia for example, in the Latgale Region. Mr. Tabūns asked what should be done with persons who receive unemployment benefits and do not want to work. Jānis Eglītis, Chairman of the BA Education, Science and Culture Committee, stressed that regarding unemployment in the Latgale Region, the problem is related to investments and how 12

13 these investments are allocated among regions because the Latgale Region received a very small part of the available investments. Jānis Reirs, Deputy Chairman of the Latvian delegation to the BA, stressed that there are programmes that provide funding for requalification, but these programmes are intended mainly for the unemployed. Mr. Reirs asked how the governments use these resources and how to link research and production. Mr. Reirs expressed his dissatisfaction about the situation in which the state invests in educating young people, but later these young educated teachers go abroad because the salaries in Latvia s schools are very low. Aija Lulle, sociologist, moderator of the conference, asked the Estonian colleagues about the recent conference on the education system because it is very important to involve people in the natural sciences. Through the prism of that conference is this the key to our success, or are we at a stage of rhetoric which is not in line with reality? Mailis Reps, member of the BA Presidium, Deputy Chairperson of the Estonian delegation to the BA, reported that at the Baltic Development Forum, which was held in Helsinki, all the represented European countries mentioned the success story of the Nordic and the Benelux countries; thus, it is very important for the Baltic States to learn from these countries. The Nordic and the Benelux countries are doing serious work in the sphere of education. Aija Lulle, sociologist, moderator of the conference, stressed that competitiveness is a very important aspect when dealing with increased labour force migration. Political Discussions on Topicalities in the Baltic States Ērika Zommere, President of the Baltic Assembly, Chairperson of the Latvian delegation to the BA, stressed that the reason for these political discussions is related to recent events in Estonia which caused a wide domestic and foreign response. Latvia and Lithuania supported Estonia and emphasized that relocation of the bronze monument is Estonia s prerogative. This year on 3 May, the Latvian and Lithuanian delegations to the Baltic Assembly adopted a common statement on supporting Estonia. Latvians and Lithuanians voiced their support and gathered at the common event We are together free and independent. This event was a sign that our nations are still united. 13

14 The Baltic States must remain united and support each other. The main aim of the Baltic Assembly member states is to support each other in solving internal and external problems. Trivimi Velliste, Vice President of the Baltic Assembly, Chairman of the Estonian delegation to the BA, thanked his Latvian and Lithuanian colleagues for their support regarding relocation of the bronze monument. The meaning of the statue, as well as its author and the prototype of the bronze soldier, raised heated debates in the media. The prototype was the Estonian national hero, Olympic champion Kristian Palusalu; it legitimizes the bronze soldier. However, debates in Estonia started regarding the relocation of the monument and the message that the monument sends to people. It was clear to the Estonian government and Estonia s partners in the north, south and west that the problem did not lie in the monument itself. The issue is much more general. Concurrently with the relocation of the bronze soldier monument, a major cyberattack was launched against Estonia, against its government agencies, including the Web page of the President s Administration, as well as against banks. These events created a situation in Estonia which gave Russia an opportunity to test the limits of what is allowed and what is not. Russia tested the response of allies and neighbours. Valerijus Simulik, Vice President of the Baltic Assembly, Chairman of the Lithuanian delegation to the BA, expressed his delight about the new tradition to discuss topicalities in the Baltic States. Lithuanian government authorities expressed their support to Estonia by adopting a resolution. The Lithuanian society also expressed its support to Estonia by organizing a meeting during which participants sang unity songs. Such challenges clearly show the unity of the Baltic States. Discussions Silva Bendrāte, Chairperson of the BA Social Affairs Committee, added that since May, when everybody was standing at the Monument of Freedom and expressing solidarity with Estonia, a parliamentary cooperation group was established in Latvia s parliament with the aim of strengthening bilateral cooperation between both parliaments. Mrs. Bendrāte reported that two weeks ago representatives from the parliament of Latvia visited Estonia and met with the President of Estonia to express their support. 14

15 Vents Armands Krauklis, Chairman of the BA Economic Affairs, Communications and Informatics Committee and Chairman of the BA Budget and Audit Committee, asked his Estonian colleagues about Finland s response to the relocation of the bronze monument. Trivimi Velliste, Vice President of the Baltic Assembly, Chairman of the Estonian delegation to the BA, replied that the Finnish response was appropriate. The new Foreign Affairs Minister of Finland gave a very clear statement and supported Estonia; the Prime Minister of Finland emphasized that this situation is Estonia s internal matter. The Minister for Foreign Affairs of Norway during an interview made a very diplomatic statement. In general, statements made by the Nordic countries were very supportive. Pēteris Tabūns, member of the BA Education, Science and Culture Committee, stressed that Latvia supported Estonia in this very tense moment; however, that was a major challenge since the restoration of independence in the Baltic States. Mr. Tabūns pointed out that non-citizens do not appreciate the fact that they were allowed to stay in the Baltic States, and relocation of the bronze monument was one small drop in the big ocean, a small reason for those who are full of Soviet ideology. Mr. Tabūns expressed his gratification that Estonia acted appropriately by expelling non-citizens who were involved in the acts of vandalism. During the discussion, Lithuanian colleagues expressed their full support to Estonia and stated that since the Baltic States joined the EU and NATO, their security is a matter of EU and NATO security. Lithuanian colleagues also stressed that this was a situation in which the Baltic States could learn that they have to be ready for any situation. Jānis Reirs, Deputy Chairman of the Latvian delegation to the BA, said that in his opinion, the Baltic Assembly responded rapidly, and that justified the reason for creating the Baltic Assembly, which was intended to be organization for voicing common opinions. Over the years, the Baltic Assembly has been reformed, and it has equal status with other organizations which deal with policy making; furthermore, support extended to Estonia proved that the Baltic Assembly has not lost its meaningfulness. 15

16 Annex Conference of the Baltic Assembly Development of Human Resources under Conditions of Labour Migration Final Document of the Conference 18 May 2007 Sigulda, Latvia On18 May 2007, members of the Baltic Assembly, Ministers for Foreign Affairs of the Baltic States, and members of the Nordic parliaments gathered in Sigulda, Latvia, at the theme conference of the Baltic Assembly on Development of Human Resources under Conditions of Labour Migration in order to discuss issues related to labour migration, return of migrated human resources, and increasing the labour efficiency in the Baltic States. Participants of the Baltic Assembly s conference take into consideration the fact that Europe s population is aging and the size of the labour force is decreasing; however, in other regions and continents populated by millions of people for example, Asia the number of inhabitants is rapidly increasing, and there is a high proportion of young people, the future labour force. It means that all countries in the Baltic region have to join their efforts in solving problems related to strengthening families, raising the standard of living, and improving the quality and efficiency of their human resources in order to be competitive in the global labour market. Investment in human resources and technologies is the cornerstone of competitiveness in all EU member states, and it is one of our main long-term tasks. Labour force migration The Baltic Assembly conference: - acknowledges that free movement of labour from the new EU member states, including the Baltic States, is an issue related to EU s basic freedoms and also a social, economic and political issue which creates changes in the structure of the national labour force, causes the drain of highly qualified workers, depletes the labour force in certain spheres of the national economy and facilitates the rapid growth of salaries, which sometimes is not conducive to labour efficiency, creates social tensions and threatens the sustainability of the social welfare system in our countries; 16

17 - emphasises that, first of all, it is particularly essential for each country to work out timely and sustainable solutions in forming migration policy and to coordinate cooperation of institutions involved in solving the problems related to migration policy; - encourages strengthening international cooperation in dealing with migration issues by sharing information and carrying out in the Baltic, Nordic and Benelux countries specific tasks aimed at sustainable development, as well as by taking advantage of benefits offered by free movement of labour. Return of the labour force The Baltic Assembly conference: - urges that relations with diasporas in their destination countries be maintained and strengthened in order to retain ties with potential reemigrants; - supports initiatives in promoting the return of people to their native country and their reintegration into the local labour market; - stresses that it is particularly essential for member states to implement a balanced regional development policy aimed at developing entrepreneurship, infrastructure and the transportation system, as well as to promote labour mobility within the country; - notes that a more flexible application of vocational and higher education would make it possible to respond more adequately to the needs and demands of the labour market; - recommends that greater attention be paid to the problems faced by certain groups of inhabitants young and pre-pension age persons for whom systemic unemployment problems are the most painful. Increasing labour efficiency The Baltic Assembly conference: 17

18 acknowledges that increasing labour force efficiency is one of the main guarantors for balanced development and rapid increase of the welfare level in any country and urges that EU funds be purposefully invested in developing human resources and increasing their efficiency; supports closer cooperation between researchers and the private sector in order to strengthen a knowledge-based and innovative economy and urges the governments to promote businesses which offer new products and services with high added value; emphasizes that growing opportunities to work via the Internet, a rapid increase of available information and other conditions characteristic of the modern era necessitate the countries to constantly expand and raise human potential, as well as to diversify skills and abilities by studying and developing oneself throughout one s active life, i.e., to ensure appropriate lifelong learning opportunities; calls on the countries of the Baltic region to determine which changes are necessary for dynamic transformation of the education system in order to meet labour market needs, as well as to develop and implement the most appropriate models for the use of human resources; 18