There are a number of issues important to Latvia’s future development – from insufficient investments to inequality in society. However, it is the delays with long-term decisions that causes concerns, governor of the Bank of Latvia Martins Kazaks has said.
“As for political decision, unfortunately, we have to conclude that we are too wrapped in current affairs. It seems matters of the future and long-term solutions that should be tackled immediately are left in the background. We cannot afford this. The pandemic will end someday, but we need to make preparations for the post-Covid era now,” stresses Kazaks.
He admits that one of the reasons is the reluctance of members of society to getting vaccinated, because this topic takes up a lot of time in government discussions.
If Latvian residents got vaccinated more actively, the importance of this issue would reduce significantly and there would be more time to spend on discussions of more pressing issues.
The governor of the central bank mentioned the lack of investments as the primary issue important for Latvia’s long-term development.
“In previous years the lack of investments in Latvia’s economy was very tangible. This means growth of productivity is slower as well. This means the growth rate is slower. This means residents’ income grows slower. It becomes harder and harder for us to reach the average level in Europe. It’s a tall order. This is why I believe the lack of investments is a critical topic for Latvia’s economy,” said Kazaks.
“The next point is climate neutrality. This will drastically change Latvian and world economy and we are not ready for that. I believe no one – neither the private sector nor the state administration – knows how massive these changes will be,” said the governor of the central bank.
As the third important issue he mentioned the management quality in the state and private sector. The fourth important issue mentioned by the governor of the Bank of Latvia is the inequality of income, skill and opportunities in Latvia’s society, which slows residents’ ability to make a better living.
“None of the four issues I have mentioned is new. These are the issues Latvia has had to deal with for a long time. This is why my proposal is for us to avoid looking for new challenges. Instead we should try to deal with existing problems. It is not enough to define ambitious goals. We have to work on reaching them!” stresses Kazaks.
As a negative example he mentioned Latvia’s industrial policy. Kazaks said that none of the objectives outlined in the policy was accomplished between 2014 and 2020.
“Then what is the point of setting up objectives to begin with? This is why my proposal is when outlining critical areas we set goals and work to achieve them. If goals are not achieved, we give up, look around and think what has gone wrong. Then we look for something else to do. Otherwise we will keep running in circles and it will be difficult for us to achieve anything,” Kazaks concluded. (BNN/Business World Magazine)