LATVIA Polity: Economy: Population: PPP (USD): Capital: Ethnic Groups

Transcription

1 Nations in Transit 378 LATVIA Polity: Economy: Population: PPP (USD): Capital: Ethnic Groups Size of private sector as % of GDP (1998): Presidential-parliamentary democracy Mixed capitalist 2,400,000 3,940 Riga Latvian (57 percent), Russian (30 percent), Byelorussian (4 percent), Ukrainian (3 percent), Polish (3 percent), other (3 percent) 65 NATIONS IN TRANSIT SCORES Democratization Rule of Law Economic Liberalization na.na KEY ANNUAL INDICATORS GDP per capita (USD) Real GDP growth (% change on previous year) Inflation rate Exports (USD millions) Imports (USD millions) Foreign Direct Investment (USD millions) Unemployment rate Life Expectancy (years) na FREEDOM IN THE WORLD RATINGS, Political Rights Civil Liberties Status F PF PF F F F F F F

2 Introduction Latvia has a democratic political regime currently governed by a center-right coalition. Latvia has conducted free, fair, and regular parliamentary elections since Six political parties out of 21 were elected to the 100 seats of the national parliament (Saeima). Although in recent years, the Latvian government has been shaken by various political crisis, changes in government have not significantly affected the development of society. The political climate in Latvia has been favorable to Latvia s integration into the European Union and NATO. Latvia has been invited to start negotiations with the EU over its possible inclusion in an expanded EU. Latvia has reduced its trade ties with Russia but the Russian market remains important for some sectors of its economy more than 10 percent of Latvian GDP still depends on trade with Russia. Therefore, the economic crisis of 1998 had a negative impact on Latvia s economy. But Latvia has achieved the progress necessary to be regarded as a functioning market economy and in 1999 it became a full-fledged member of the World Trade Organization. Although Latvia has been successful in implementing liberal macroeconomic reforms, social policy remains a key area of concern. The main reason for Latvia s weaker economic performance was the shock on demand that the economy experienced after Russia s economic pressure on Latvia and the later full-scale crisis in that country. That it withstood and absorbed these economic blows proved that Latvia was firmly on the road to sustainable economic development. Despite these economic disruptions, both the service and industrial sectors showed positive growth in The service sector continued booming through the beginning of 1999, accompanied by strong growth in construction. The food industry, chemical production, and machine building suffered most from the Russian crisis. At the same time, the production of clothes, ships, wood and wood products, and other goods with markets in the west continued to grow. Importantly, construction work has also increased. Trade was brisk through the beginning of The official unemployment rate in Latvia has fluctuated around seven percent since 1997, although it increased to ten percent in the summer of The actual rate may be as high as 18 percent. Unemployment is significantly higher in rural areas, especially in the southeastern Latgale region. The main political events for 1998 and 1999 were national elections and a referendum on amendments to the Citizenship Law, which promoted the naturalization procedure and has accelerated social integration. A significant development was the elevation of the protection of human rights and fundamental freedoms to a constitutional level by the adoption of a Human Rights section in the Constitution. Democratization POLITICAL PROCESS 1.75/7 1. When did national legislative elections occur? Were they free and fair? How were they judged by domestic and international election monitoring organizations? Who composes the government? In June 1993, Latvia held its first parliamentary election since the restoration of the country s independence in Latvia s Way won 36 seats and the National Independence Movement won 15. Six other parties and blocs also received votes. The most recent national legislative elections were held on October 3, Members of parliament are elected for four-year terms by proportional representation. In order to win representation, a party must receive at least 5 percent of the total votes cast in the election. Six of the 21 parties and factions competing for seats in the 100-member parliament (Saeima) won seats. The right-wing People s Party won 24 seats; Latvia s Way, the ruling liberal party, was second with 21 seats; and another ruling party, the Fatherland and Freedom/LNNK, gained 17 seats. After the 1998 elections, the number of women parliamentarians has risen from 8 to 17. International organizations, including the OSCE Office for Democratic Institutions and Human Rights, declared that the elections had been conducted freely and fairly. The lack of a clear parliamentary majority necessitated the formation of a four-party coalition that covered a wide ideological spectrum. The coalition of Latvia s Way, the Fatherland and Freedom/LNNK, and the New Party, excluded the People s Party and relied on support by the social democrats instead. Vilis Kristopans, one of the leaders of Latvia s Way, was chosen as Prime Minister. The government of Vilis Kristopans was unstable latvia 379

3 Nations in Transit 380 and often criticized for lacking comprehensive initiatives. In the summer of 1999, Kristopan s government fell. Kristopans resigned as Prime Minister and was replaced by Andris Skele, leader of the People s Party, which joined the new governing coalition instead of the New Party and social democrats. 2. When did presidential elections occur? Were they free and fair? On July 7, 1993 parliament elected Guntis Ulmanis as president of Latvia. According to the constitution, the president is elected for a four-year term by secret ballot by a majority vote in parliament. On June 17, 1999, in the most recent presidential elections, the political parties in parliament nominated five candidates for president: Vaira Paegle, a former exile and activist and member of Saeima for the People s Party; Latvia s ambassador at the United Nations, Janis Priedkalns, who was nominated by Fatherland and Freedom/LNNK; Minister of Environment and Regional Development Anatalojis Gorbunovs of Latvia s Way; member of Saeima and chairman of the New Party, Raimons Pauls; and Arnis Kalnins, an economist proposed by the social democrats. Since all parties voted for their own candidates, none of them gained a majority of support in the first round. Then Latvia s Way nominated Minister of Foreign Affairs Valdis Birkavs. The People s Party, the Fatherland and Freedom/LNNK, and the social democrats came up with a non-partisan candidate, Vaira Vike-Freiberga, who heads the Latvian Institute. Of the 100 ballots distributed in parliament, 100 were returned. Vike-Freiberga received 53 votes and became the first woman president of Latvia. Vike-Freiberga spent most of her life as a scientist in Canada and returned to Latvia in She is a member of the Canadian Academy of Science. Her election received broad popular support, and her activity has earned international appreciation. Vike-Freiberga has announced vigorous support for Latvia s integration into the European Union and NATO. Parliament elected the president according to the requirements and procedures set forth by the constitution. Even though there were no official election observers, other European governments and the US State Department welcomed the results. 3. Is the electoral system multiparty-based? Are there at least two viable political parties functioning at all levels of government? The electoral system in Latvia is multiparty-based at all levels. In 1993, 23 political parties participated in the national legislative elections. In 1995, 19 parties and factions representing a wide range of political viewpoints competed in the national elections. In the March 1997 local elections, a total of 17 parties won seats on the Riga City Council. In the October 1998 national elections, 21 parties and factions participated and 6 of them gained representation in Saeima. The diversity of parties at different levels of government has often made it difficult to reach consensus on many issues. Members of the coalition government, for example, have differing views on privatization, social integration, and the alignment of Latvian laws with those of Western Europe. Disagreements of this kind have prevented important decisions from being made and delayed the adoption of legislation, most notably in the areas of language and privatization. 4. How many parties have been legalized? Have any parties been banned or declared illegal? As of May 1999, 44 political parties were registered in Latvia. The Law on Registering Public Organizations was amended in late 1993 to bar registration of Communist, Nazi, or other organizations that would act in contravention of the constitution. 5. What proportion of the population belongs to political parties? What proportion of party membership is made up of women? According to the Latvian Prognoze Association of Independent Sociologists, approximately five percent of respondents to a survey indicated that they belonged to a political party or movement in Most parties are active only for brief periods during electoral campaigns. Non-citizens are prohibited from forming political organizations. According to the Latvian National Bureau of Human Rights, 5 percent of party leaders and percent of the 1998 election candidates were women. Since party membership is not always accurately registered and the data are not always publicly available, it is impossible to assess the proportion of women. 6. What has been the trend of voter turnout at the municipal, provincial, and national levels in recent years? What are the data related to female voter participation? At the national level, voter turnout increased from the late 1980s through the early 1990s, but then decreased in the mid-1990s. Electoral participation reached its highest level with elections to the Fifth Saeima in 1993, when

4 90 percent of eligible voters cast their ballots. It decreased to 72 percent both in the Sixth and Seventh Saeima elections. Participation in local government elections has declined from 78 percent in 1989 to 63 percent in 1994 and 57 percent in This trend reportedly results from the public s diminishing confidence in political leaders and its increasing political alienation in the face of the difficulties associated with economic reforms. In addition, non-citizens, who constitute approximately 25 percent of the registered residents of Latvia, were unable to participate in either national or local elections. According to estimates by Arnis Cimdars, the Head of the Central Election Committee, approximately 60 percent of the eligible female voters participated in the Seventh Saeima election in CIVIL SOCIETY 2.25/7 1. How many nongovernmental organizations (NGOs) have come into existence since 1988? What is the number of charitable/nonprofit organizations? Are there locally led efforts to increase philanthropy and volunteerism? What proportion of the population is active in private voluntary activity (from polling data)? What are some of the major women s nongovernmental organizations and what is the size of their membership? Although small groups of dissidents were active in Latvia throughout the 1970s and early 1980s, mass political activity outside of the Communist party began in 1986 with a petition and letter-writing campaign against the environmentally dangerous Daugava hydroelectric station. During the next two years, political participation increased dramatically. By the autumn of 1988, the newly founded nongovernmental Latvian Popular Front, which also worked to promote a variety of minority and religious rights, claimed a membership of between 200,000 and 300,000 people. An increasing number of nongovernmental organizations have been registered in Latvia in recent years. The total number of NGOs registered at the Ministry of Justice rose from 1,676 in 1995 to 2,394 in 1996 and 2,753 in These include cultural, professional, business, social, charitable, and women s organizations. However, according to the NGO Center of Latvia only approximately 1,400 organizations were active in The role of NGOs has increased steadily since the late 1980s. In Valmiera in August 1997, a wide-ranging event entitled Women and Men in Dialogue increased the public awareness of gender equality issues and mobilized state institutions and NGOs. In September 1997, the first NGO Forum attracted hundreds of Latvian NGO representatives. Since then, NGO forums have become annual events in all regions of Latvia. The NGO Center, which provides support for approximately 500 registered NGOs, has also become more active. Research conducted in order to create a national NGO directory suggests that more than 70 percent of NGOs are based in Riga. Twenty percent are based in the other larger towns of Daugavpils, Ventspils, Jurmala, Liepaja, Rezekne, and Jelgava. In regional centers, smaller towns, and rural districts, local governments remain the primary force behind social activity. While the total number of NGOs has increased, only a small segment of the population is involved in NGO activities. According to the Baltic Barometer survey of November 1996, nine percent of Latvians and two percent of non-latvians were members of NGOs. According to an estimate provided by the NGO Center, only 0.5 to 3.0 percent of the population are active in private voluntary efforts. According the NGO Center of Latvia, approximately 60 percent of NGO activists are women. Two of the largest and most active women organizations are the Latvian Association of Business and Professionally Educated Women, and the Women s Business Club. The membership for both organizations is fluctuating and the average is approximately What is the legal and regulatory environment for NGOs (i.e., ease of registration, legal rights, government regulation, taxation, procurement, and access-to-information issues)? To what extent is NGO activism focused on improving the legal and regulatory environment? The primary laws that regulate the work of NGOs in Latvia are the Law on Nonprofit Organizations, which was passed in December 1991 and amended in May 1993; the December 1992 Law on Social Organizations and their Associations; and the Law on the Income of Enterprises. The Law on Social Organizations and their Associations addresses general conditions for the establishment and operation of all social organizations. It also contains specific and supplementary regulations for political organizations, public foundations, profes- latvia 381

5 Nations in Transit 382 sional societies, and sports organizations. The activity of trade unions, religious associations, and some other categories of NGOs are governed by separate laws. Under the law, a social organization may be established by ten or more people who have united to pursue nonprofitrelated goals. Social organizations can conduct entrepreneurial and other activities, establish entrepreneurial companies and enterprises, and obtain stocks or shares in those companies in pursuit of their goals. Profit gained from the organization s business activities must be used for the organization s statutory goals and cannot be distributed among its members. To register with the Register of Companies, an NGO must present a charter of statutes, a protocol of foundation, a verification of legal address, an application of registration, and a state fee. The state registration fee is 25 lats for social organizations and 100 lats for nonprofit organizations. Religious organizations, which are not recognized as NGOs, are registered by the Ministry of Justice. The Law on Nonprofit Organizations defines a nonprofit organization (NPO) as an entity established for nonprofit service or charity work. Founders of an NPO can be natural or legal persons. State institutions can establish NPOs with approval from the respective ministry. Local governments can form NPOs in accordance with the decisions of local councils. NPOs are registered in the Registry of Enterprises, a governmental agency not connected to the Ministry of Justice. The name of the organization must contain the words nonprofit organization. Before registering, the founders of an NPO must declare in writing that they will not obtain profit from the activities of the organization and that all profit will be set aside in a special reserve fund and used for the fulfillment of the tasks for which the NPO was established. If the NPO violates this regulation, it will be re-registered within a month as an enterprise, and its activities will be regulated by the laws applying to business establishments. The reserve funds of the NPO will then be transferred to the ownership of the state. To date, Latvian NGOs have exercised influence in the content or passage of three NGO-related laws: the Law on Social Organizations and their Associations, the Law on State Guardianship, and the Law on Charity, which is still being developed. The influence was exercised mainly through lobbying and public debates. 3. What is the organizational capacity of NGOs? Do management structures clearly delineate authority and responsibility? Is information available on NGO management issues in the native language? Is there a core of experienced practitioners/trainers to serve as consultants or mentors to less developed organizations? According to a report by the Soros Foundation, one of the leading obstacles confronting NGOs in the Baltic states is the lack of management and organizational skills. According to a report by the NGO Center in Riga, six to ten percent of existing NGOs have well-developed management capacities. Information on NGO management issues is available at the NGO Center and is published predominately in English. As various NGO forums concluded in 1999, organizations lack information on participation opportunities within different projects. Trainers for NGOs are available, but according to the NGO Center, they meet only 10 to 15 percent of current needs. 4. Are NGOs financially viable? What is their tax status? Are they obliged to and do they typically disclose revenue sources? Do government procurement opportunities exist for private, not-for-profit providers of services? Are NGOs able to earn income or collect cost recovery fees? NGOs are financially viable. According to a report by the NGO Center, the main sources of income for NGOs in Latvia, in decreasing order of prominence, are membership fees, donations from enterprises and firms, private donations, foreign donations, local government funds, fees for services, income from the organizations activities, and state budget funds. Businesses may deduct up to 85 percent of the value of their donations to certain foundations and associations, provided that the deduction does not exceed 20 percent of their total taxable income. There is generally no difference in the tax policy applied to social organizations and to for-profit enterprises. Social organizations pay income and social tax, although there are some exceptions for charities. Foundations and associations, to which businesses may contribute and receive a tax deduction, have complied each year with a complicated government filing and newspaper publication regimen. By the end of March of each year, social organizations must submit a report on their income and expenses during the previous year to the State Revenue Service. Journalists are granted access to the reports, have the right to participate in meetings of the governing bodies of social organizations, and can obtain

6 access to the resolutions and decisions adopted by the organizations and their officials. According to the Law on State and Local Government Procurement, state contracts may be awarded regardless of the contractor s nationality, place of the registration and activity of the enterprise, or the type of entrepreneurship and form of property. Thus, NGOs have the legal right to apply for state procurement. 5. Are there free trade unions? How many workers and what proportion of the workforce belongs to these unions? Is the number of workers belonging to trade unions growing or decreasing? What is the numerical/proportional membership of farmers groups, small business associations, etc.? The Constitution of Latvia guarantees the right to strike and the Law on Trade Unions mandates that workers, other than the uniformed military, have the right to form and join labor unions of their own choosing. Unions are free to affiliate internationally and are developing contacts with European labor unions and international labor union organizations. The law bans the dismissal of workers who choose to go on strike, but the government has not effectively enforced the law. During 1997, workers in some bankrupt state enterprises sought to defend their economic interests more actively through strikes, picketing, and other forms of protest. Teachers tried to start a dialogue with the government through a telephone campaign, while farmers sought to obtain greater support and protection from foreign competition. Labor unions have the right to bargain collectively and are largely free of government interference in their negotiations with employers. Although the law prohibits discrimination against union members and organizers, some emerging private sector businesses have threatened to fire union members. These businesses, however, usually provide better salaries and benefits than are available elsewhere. In general, the trade union movement is undeveloped and still in transition from a socialist to a free-market model. Union membership, which constituted approximately 50 percent of the work force in 1993, fell as workers left the Soviet-era unions that had included management or were laid-off as Soviet-style factories failed. The lack of a comprehensive register makes it difficult to estimate what proportion of the workforce belongs to unions. Since independence, the trade union movement has been divided into entities that continue to operate as individual unions, and those that have united to form the Free Trade Union Federation. The latter, based primarily in industry, included approximately 40 percent of all trade unions in Private farmers have created a number of organizations, but membership in them as well as in small business associations remains small. 6. What forms of interest group participation in politics are legal? What types of interest groups are active in the political and policy process? The constitution guarantees the right of citizens to establish political parties. Under Article 102, all people have the right to form associations, political parties, and other social organizations. Non-citizens are prohibited from forming political organizations. In late 1993, the Law on Registering Public Organizations was amended to prohibit Communist, Nazi, or other organizations that would contravene the constitution. The government may not legally prohibit public gatherings. Organizers of demonstrations must provide advance notice to local authorities, who may change the time and place of public gatherings for reasons such as fear of public disorder. Numerous public meetings and political demonstrations have taken place without government interference. In January 1998, parliament passed legislation on public demonstrations to require that protesters remain at specified distances from foreign missions, the parliament, and certain other public institutions. While the law comports with Western European statutes, independent human rights organizations in Latvia have found its provisions to be contradictory and confusing. Politically active interest groups included organizations representing businessmen, students, teachers, doctors, non-ethnic Latvians, and pensioners. Students, pensioners, and teachers were the most active in promoting their interests in How is the not-for-profit/ngo sector perceived by the public and government officials? What is the nature of media coverage of NGOs? To what extent do government officials engage with NGOs? Is the government receptive to NGO policy advocacy? A growing number of NGOs that are engaged in research and advocacy on human rights issues, including prison conditions and children s and women s rights, operate without government interference. The awareness of the greater public of the importance of NGOs is not fully developed. However, as NGOs increase their activity, the public perception is becoming more positive. latvia 383

7 Nations in Transit 384 The government has demonstrated a willingness to engage in dialogue with NGOs. The Cabinet of Ministers has worked with NGOs to adopt the National Program on the Protection and Promotion of Human Rights in Latvia. The establishment of the Latvian National Human Rights Office, which receives its basic financial support from the state and is run by a state-appointed director, was widely supported by human rights NGOs in Latvia. According to a 1997 report by the NGO Center in Riga, 82 percent of NGOs cooperate with national and local governments and 31 percent include representatives of national and local governments in management structures. A common practice of the media is to cover broadly the views of NGO activists, often presenting them as counterweights to official positions. NGO activities as such are also common media topics. For example, the seminar, mass manifestation, and rock concert organized by the European Movement in Latvia in August 1999 received wide media attention. INDEPENDENT MEDIA 1.75/7 1. Are there legal protections for press freedom? The constitution provides each person with the right to acquire and disseminate information freely, and to express his or her views. Censorship is prohibited by the constitution. Nevertheless, the Law on Radio and Television contains a number of restrictive provisions regulating the content and language of broadcasts. No more than 30 percent of private broadcasts may be in languages other than Latvian. A minimum of 40 percent of prime-time television broadcasts must be of Latvian origin. At least 80 percent must be of European production. These provisions, though, are not always observed in practice. In addition, foreign investment may not exceed 20 percent of the capital in electronic media organizations. 2. Are there legal penalties for libeling officials? Are there legal penalties for irresponsible journalism? Have these laws been enforced to harass journalists? Legal penalties for libeling officials exist. They are the same for private and public officials. There are no legal penalties for irresponsible journalism. On several occasions, officials have brought journalists and media organizations to court for libel. In 1998, the former Minister of Economy, Laimonis Strujevics, sued the daily newspaper Diena for alleged defamation. The newspaper had sharply criticized particular decisions of the minister and claimed that, through these decisions, he favored certain economic groups to the detriment of the state s financial interests. The newspaper lost the case in the lower court, but is currently appealing the ruling. 3. What proportion of media is privatized? What are the major private newspapers, television stations, and radio stations? Latvia has two state-owned television networks, LTV-1 and LTV-2, and nine major privately owned stations. The private Latvian Independent Television has almost twice as many viewers as LTV-1, its nearest competitor. Satellite television enjoys approximately ten percent of the total Latvian viewership each week and there are numerous independently owned cable channels. There is also a large number of independent radio outlets that broadcast in both Russian and Latvian. Approximately ten privately owned radio stations operate in Riga. The major public radio stations are Latvijas Radio 1, which has the greatest number of listeners each week; Latvijas Radio 2; and Latvijas Radio 3. Most newspapers and magazines are privately owned. The three most popular daily papers are Diena and Lauku Avize, both published in Latvian, and Panorama Latvii, published in Russian. The state publishes the weekly Likuma Varda, as well as LatvijasVestnesis, which appears four times a week. All major cities publish their own private newspapers. 4. Are the private media financially viable? Since 1992, advertising has accounted for a significant portion of media income. The 1995 banking crisis, in which a number of the country s banks went bankrupt, directly affected the financial viability of many media outlets and sharply diminished the advertising market. In 1996, 43 percent of media advertising was in television, followed by newspapers at 35 percent, radio at 6 percent, magazines at 4 percent, and outdoor venues and other categories comprising the remaining 10 percent. Although new publications continue to appear, economic difficulties have forced others to close. 5. Are the media editorially independent? Are the media s news gathering functions affected by interference from government or private owners? In general, the government respects freedom of speech and the press. Newspapers published in both Latvian

8 and Russian feature a wide range of criticism and political viewpoints. A 1994 city ordinance prohibits the sale of ultra-nationalist Russian-language newspapers in Riga. When an influential economic group of the port city Ventspils purchased a media group including the Preses Nams publishing house and several daily newspapers, news coverage apparently was affected by the political and economic interests of the owners. In situations like this, selfcensorship is likely. 6. Is the distribution system for newspapers privately or governmentally controlled? The distribution system for newspapers is privately controlled by companies such as the Latvijas Preses Apvieniba, Joint Stock Company Diena, etc. 7. What proportion of the population is connected to the Internet? Are there any restrictions on Internet access to private citizens? According to the RIPE Network Coordination Center, which serves as a regional Internet registry for Europe, there are 68 Internet-connected computers for every 10,000 people in Latvia, or approximately 16,482 Internet-connected computers for a total population of about 2.4 million. In 1999, approximately 56,000 persons or about 2.33 percent of the total population used the Internet on a regular basis. Latvian Internet providers are expected to go through a number of mergers, and as few as three Internet providers may be all that remain in operation in Major television and radio stations and newspapers maintain their own web sites. Except for financial limitations, there are no restrictions on Internet access to private citizens. 8. What are the major press and journalists associations? What proportion of their membership is made up of women? The major and only association is the Latvian Journalist Union. The union has 500 registered members, 350 of them are considered active. Women make up approximately 50 percent of the membership of the Journalists Union. 9. What has been the trend in press freedom as measured by Freedom House s Survey of Press Freedom? According to Freedom House s annual Survey of Press Freedom, Latvia was rated Free in 1991, Partly Free in 1992 and 1993, and Free in 1994 through GOVERNANCE AND PUBLIC ADMINISTRATION 2.50/7 1. Is the legislature the effective rule-making institution? Both constitutionally and in practice, the Saeima (parliament) is the country s effective rule-making institution. Although parliament has adopted many news laws, political infighting has limited its ability to function efficiently. The Latvian State Chancellery provides legal and substantive guidance on draft legislation before it is discussed and adopted by the cabinet. 2. Is substantial power decentralized to subnational levels of government? What specific authority do subnational levels have? Power was quickly decentralized after the declaration of independence in Local authorities assumed responsibility not only for functions normally associated with local governments, but also for many of those usually undertaken by central governments. As Latvia has moved toward integration with Europe, however, this trend has been reversed. The current functions of local government are essentially those that cater to local needs and conditions and for which local authorities can determine procedures and funding. In 1999, the system of local government in Latvia included 586 local government units, which are divided into two levels. At the highest level are the 26 rajoni (districts) and the 7 largest cities (Riga, Daugavpils, Jelgava, Jurmala, Liepaja, Rezekne, and Ventspils). At the second level are 70 smaller towns and 483 pagasts (small rural districts). In 1999, the government proposed an administrative reform that included the transformation of districts into nine larger units. The proposal has been subjected to broad public debate, but no final decision has been taken so far. Local authorities are responsible for territorial planning, regional and local roads, public transport, housing and community subsidies, primary and secondary education, social services, and primary and secondary health care. Latvia has enacted laws to give local governments, particularly municipalities, substantial authority and allow them to function independently within the limits of the law. Local governments can pass legislation, provided that it does not contradict the laws passed by parliament. In general, councils in smaller municipalities and townships seek guidance from the state before making major decisions. latvia 385

9 Nations in Transit Are subnational officials chosen in free and fair elections? Subnational officials are chosen in free and fair elections. Latvian citizens residing outside the country have the right to vote in local elections. Non-citizen residents of Latvia, however, are barred from voting in local elections. The country s 600,000 primarily Russian-speaking residents are therefore effectively prevented from having direct representation in local politics. Local assemblies elect mayors. On March 9, 1997, in Latvia s most recent local elections, 12,000 candidates competed for 4,445 council seats in 77 city and 489 district councils. The Social Democratic Party (LSDP), which was not represented in parliament at the time, won an upset victory over the country s ruling coalition. It won overwhelming control over Daugavpils with 85 percent of the vote. In Riga, it secured 11 of 60 city council seats. The Fatherland and Freedom Party finished second with ten seats. Most of the national coalition parties formed a coalition to control the city council. Rightist parties won majorities in Liepaja and Ventspils. In the local elections of 1994 and 1997, voter turnout was low 58.5 percent in 1994 and 57 percent in 1997 and many ballots were marked incorrectly because of widespread confusion among voters and the media. Although the share of localities in which 2 or 3 electoral lists competed increased from 60.6 percent in 1994 to 64.1 percent in 1997, the number of localities in which there was only 1 electoral list also increased. In general, these single list localities were located in less developed regions where voters were indifferent or where the previous administration or council leader enjoyed considerable authority. 4. Do the executive and legislative bodies operate openly and with transparency? Is draft legislation easily accessible to the media and the public? The executive and legislative bodies generally operate openly and with transparency. Under the constitution, parliamentary sittings are open to the public. Nevertheless, at the request of ten members of parliament, the president, the prime minister, or any one minister, parliament may decide by a majority of not less than two-thirds of the members present, to sit in camera. Since 1993, this has happened once. Parliament has adopted a classified information law that is consistent with international standards and practices. In October 1998, parliament adopted the Information Openness Law. The law states that all information, (including draft legislation) in possession of state and local government institutions, is to be made available to the public, unless the law provides for an exception. Cases have been reported, however, where institutions have refused to implement the law and have denied access to requested information. All laws are published in a government newspaper that is available to the general public. 5. Do municipal governments have sufficient revenues to carry out their duties? Do municipal governments have control of their own local budgets? Do they raise revenues autonomously or from the central state budget? In general, local governments do not have sufficient financial resources to undertake their duties at an adequate level. In recent years, various administrative reforms have sharply reduced the finances of the local authorities, while at the same time allotting more functions to local government. From 1992 to 1995, the work of local authorities constituted more than 24 percent of the state budget. By 1996 and 1997, this figure had fallen to 18 percent and to approximately 16 percent in The reforms have been characterized by a one-third reduction in funding, primarily for education, health, and social assistance, and the transfer of the savings to the central government, without any accompanying increase in investment in infrastructure. Since local governments receive financing from the central state budget and also raise revenues autonomously, the total revenues available for each region are based largely on the level of economic development of that particular region. On June 10, 1997, in an attempt to promote greater regional development and reduce the economic disparities among regions, parliament passed the Law on Regions Requiring Special Assistance. After these regions have been identified according to their income tax revenue, unemployment rate, and population density, the state and local government can then actively promote their development. A Regional Fund, receiving money from the state and credits and donations from foreign and international aid institutions, was created to implement support projects. Resources from the fund may be used by the region s businesses and local authorities. Local government services were not necessarily adequate, however, because the aggregate size of local government budgets is and will remain small. In March 1998, parliament adopted a law on municipal finances. The law provides for the equalization of municipal budgets so that, regardless of economic disparities, municipalities will have equal opportunities to perform their functions. Financing will be pro-

10 vided through a special fund as established by the law. Municipal governments control their own local budgets. 6. Do the elected local leaders and local civil servants know how to manage municipal governments effectively? Despite the lack of sufficient funds available at the local level, many local leaders in cities and larger towns are competent and manage municipal governments effectively. Training and practical experience are still in short supply in many smaller towns. 7. When did the constitutional/legislative changes on local power come into effect? Has there been reform of the civil service code/system? Are local civil servants employees of the local or central government? The first post-independence territorial reforms coincided with the 1994 local government elections, when local district authorities in Riga were reorganized as internal departments of the main city authority without elected representatives. The Law on Local Government was adopted in mid In June 1996, the cabinet embraced the idea of territorial reform to preserve the functions of local authority at the regional and local levels and to strengthen local financial independence. Before the March 1997 local elections, a new regulation abolished elections in the rajoni and extended the terms of their elected councils until the end of At the end of its 1997 spring session, parliament passed amendments to the Law on Local Government. These abolished local authorities at the region level and replaced them with a Cooperation Council that includes representatives from the towns and pagasts. In 1999, the government proposed an administrative reform that included the transformation of districts into nine larger units. The proposal has been under broad public debate, and no final decision has been taken so far. After the 1993 parliamentary elections, the government launched a new civil service system by creating a Ministry of State Reform, which would restructure state institutions. A key feature of the Civil Service Law, which was adopted on April 21, 1994, was the creation of a personnel system that provides for entrance by examination, competitive recruitment, adherence to ethical principles, loyalty to constitutional government, and the promotion of competence through education and training. The budget law, which was also passed in 1994, provided for higher salaries for civil servants. An independent nongovernmental ethics council was created to implement codes of ethics and standards for government workers. The Ministry of State Reform determined that approximately 14,000 would be subject to the Civil Service Law. The Civil Service Agency (CSA), an implementing agency mandated by the Civil Service Law, was charged with organizing the civil service, implementing civil service laws and regulations, and reviewing the backgrounds and professional qualifications of applicants. Under a separate law passed in late 1994, the CSA became responsible for managing disciplinary procedures for civil servants. Reform began with the highest-level prospective civil servants in order to create a core of people committed, or at least not opposed, to the success of the new system. A requirement that civil servants continue their education and increase their professional competence was incorporated into the Civil Service Law, thereby creating support for the reforms among government workers. The Latvian School of Public Administration and the University of Latvia in Riga are charged with preparing and coordinating the training for civil service employment. Although many elements of civil service reform have already been implemented, limited resources and a lack of political determination have obstructed the implementation of others. Local civil servants are employees of the local government and must adhere to the same code as all other civil servants. Rule of Law CONSTITUTIONAL, LEGISLATIVE, AND JUDICIAL FRAMEWORK 2.00/7 1. Is there a post-communist constitution? How does the judicial system interpret and enforce the constitution? Are there specific examples of judicial enforcement of the constitution in the last year? In 1990 still de facto within the USSR, Latvia renewed the fundamental articles of its 1922 constitution, which dates from Latvia s brief interwar period of independence. The same constitution was fully renewed in 1993 after the first free parliamentary elections. The 1922 constitution establishes and defines the separate responsibilities of the executive, legislative, and judicial branches of government. In early June 1996, parliament adopted the Law on the Constitutional Court. In the absence of such a court, parliament adopted laws that run counter to both the consti- latvia 387

11 Nations in Transit 388 tution and the country s international obligations. For example, parliament violated the constitution by terminating the mandates of several deputies who allegedly collaborated with the former KGB. Later the court ruled that the collaboration could not be proved and the mandates were renewed. Since its establishment, the Constitutional Court has handed down a range of important decisions. In 1999, the court ruled, for example, that the public had a constitutional right to know the amount of remuneration received by public employees. 2. Does the constitutional framework provide for human rights? Do the human rights include business and property rights? In October 1998, parliament adopted chapter eight of the constitution on fundamental human rights. Under Article 91 of the constitution, all persons in Latvia are equal before the law and court. Article 95 prohibits the use of torture or other cruel or degrading treatment. Under Article 103, the freedom of previously announced peaceful gatherings and demonstrations is protected. In October 1998, the parliament adopted chapter eight of the constitution on fundamental human rights. Earlier, human rights were guaranteed by the Constitutional Law, which outlined the basic rights and obligations of citizens. The constitutional amendments grant protection to fundamental human rights such as freedoms of speech, religion, association, the press and other basic liberties as well as protection from discrimination regardless of race, sex, religion or language. According to Article 105 each person has the right to own property. Moreover, Article 106 protects the right for each person to choose freely their occupation and work according to their abilities and qualifications. 3. Has there been basic reform of the criminal code/ criminal law? Who authorizes searches and issues warrants? Are suspects and prisoners beaten or abused? Are there excessive delays in the criminal justice system? In May 1998, Latvia s parliament adopted a new Criminal Law, which replaced the Latvian Soviet Socialist Republic s Criminal Code in effect since 1961 and which had undergone basic reforms in The new law, which came into force in April 1999, includes provisions for longer jail terms for those sentenced for serious crimes and for broader use of police surveillance for less serious crimes. In April 1999, the Saeima ratified the 6 th Protocol of the European Convention for the Protection of Human Rights and Fundamental Freedoms, thus abolishing the death penalty in Latvia and substituting it with life imprisonment. In 1994, the responsibility for issuing arrest warrants was transferred from prosecutors to the courts. There have been no reports of imprisonment on political grounds, politically motivated disappearances, or forced exile. There have been credible reports, however, that police and prison personnel have beaten prison inmates, asylum-seekers, and other detainees. Detainees complain that they are subject to physical and psychological intimidation by prison guards. Some law enforcement personnel have been prosecuted for using excessive force against prisoners. For the sake of ensuring the human rights of prisoners, the reform of the prison system is a government priority. In October 1998, the Penitentiary Code was amended in order to improve the mechanisms for carrying out sentences, to establish probation service, and to apply alternative, non-confinment-based, punishments. The Saeima in November 1998 approved the new Penitentiary Law, after an examination by experts of the Council of Europe. Despite new construction and foreign assistance, prison conditions remain poor. The government has stated that it intends to continue to renovate prisons, including the Riga Central Prison, as quickly as its limited finances will allow. By law, the prosecutor s office must make a formal decision whether to charge or release a detainee within 72 hours after an arrest. Charges must be filed within ten days of an arrest. No detainee may be held for more than 18 months without the prosecutor presenting the case to the court and the defendant, who has the right to have an attorney present at any time. There are credible reports that these rights are not always respected in practice by the police, especially outside Riga. According to the European Commission, between the beginning of 1998 and 1999, there was a slight increase in the total number of unsolved court cases including criminal cases. During the first half of 1999, the number of unsolved criminal cases has increased further. 4. Do most judges rule fairly and impartially? Do many remain from the Communist era? Most judges have inadequate judicial training, and the inefficiency of the judiciary sometimes limits the fair administration of justice. Corruption in the judicial system is reportedly widespread. The judiciary suffers from a low level of prestige throughout the country. According to a July 1999 survey, most Latvians do not trust the courts. In August 1996, there were 50 vacant judges posts 13 in district courts and

12 37 in regional courts. By October 1999, the number of vacancies had been reduced significantly, and there were 26 vacant judges posts 16 in district courts and 10 in regional courts. Approximately one half of current judges in Latvia held their positions during the Communist era. 5. Are the courts free of political control and influence? Are the courts linked directly to the Ministry of Justice or any other executive body? The constitution provides for an independent judiciary, and the government generally respects this provision in practice. In November 1997, however, the judges appointed to preside over the trial of the president of the collapsed Bank Baltija resigned from the case after claiming that they were under political pressure from the government. The government continues to reform the judicial system. In 1995, it completed the establishment of regional courts to hear appeals of lower court decisions. In serious criminal cases, two lay assessors join the professional judge on the bench. The courts rely on the Ministry of Justice for administrative support. Judges are appointed by the parliament upon recommendation by the qualification committee of judges. 6. What proportion of lawyers is in private practice? How does this compare with previous years? How many new lawyers are produced by the country s system of higher education? What proportion of lawyers and judges are women? The Latvian College of Sworn Advocates has a membership of more than 1,000 advocates, legal assistants, and consultants. Five hundred-forty sworn advocates and 76 assistants of advocates were working in private business in This number is a significant increase compared with previous years. Nevertheless, there is a shortage of qualified lawyers. In the mid-1990s, UN, OSCE, and the Council of Europe experts concluded that there is a chronic lack of lawyers adequately trained in the law of human rights or with adequate competence in international law. Latvia University produces approximately 250 lawyers per year. Moreover, other establishments of higher education have opened their programs of legal studies. According to the Latvian College of Sworn Advocates approximately 40 percent of lawyers and judges are women. 7. Does the state provide public defenders? All defendants have the right to an attorney, and the state will lend funds to destitute defendants for this purpose. No deviations from these rules have been reported. 8. Are there effective anti-bias/discrimination laws, including protection of ethnic minority rights? After independence in 1991, citizenship was accorded only to those persons who were citizens of the independent Latvian Republic in 1940 and their descendants. As a result, approximately 700,000 people who had been citizens of the Soviet Union became non-citizen residents of Latvia. Under the provisions of a 1994 citizenship law, various categories of non-citizens became eligible to apply for naturalization. The law included Latvian language and residency requirements, as well as restrictions on the naturalization of several groups, including former Soviet intelligence and military officers. It also requires that applicants possess knowledge of the Latvian constitution and history and take an oath of loyalty to the Latvian State. International observers, including those in the resident OSCE mission, credit the government with establishing a competent and professional Naturalization Board with offices throughout the country to implement the 1994 law. Latvia held a referendum on the amendments to the citizenship law in October The amendments were supported by 53 percent of voters; they abolished age and birthplace restrictions on citizenship candidates and granted citizenship to children born in Latvia after August 21, As a result, practically all non-citizens are eligible to apply for naturalization. The U.S. Department of State, the EU, the OSCE, and the Council of Baltic Sea States expressed their support for the amendments. The rate of naturalization accelerated considerably after the adoption of the amendments. As a result, the number of naturalization applications has increased noticeably, characterized by the fact that, in the five months following the amendments adoption, the number of applications more than doubled from the number received during the first half of Between November 1998 and May 1999, 8,308 persons requested citizenship, compared with 2,094 applications received in the first six months of The naturalization procedure was eased in 1998 and The naturalization fee for several groups of applicants has been reduced. Only slightly more than 50 percent of the applicants pay the full fee. The number of questions for the naturalization test on Latvian history has been reduced by two-thirds (310 questions in 1996, 93 in 1999). More than 95 percent of the applicants successfully pass the tests in the first try. Max van der Stoel, the OSCE High Commissioner on National Minorities, confirmed the progress in the field of naturalization and stated in January 1999 that latvia 389