The rule of law, not the rule of lawyers
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Latvijas ekonomikas stāvoklis nav spīdošs, taču labāks nekā Igaunijā
Komentāri (20)
sarmitelinde 16.09.2014. 14.41
Interesting, there is so little discussion because of English or because of inability to discus serious topics.
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kaps > sarmitelinde 17.09.2014. 11.52
Maybe both :)(
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aigarsaboltins 15.09.2014. 14.05
What do you mean by “high labour costs”? Our rates are one of the lowest in Europe, maybe the wording should be “extremely greedy local employers”? While the Ministry of Justice is governed by NA, no rule of law is possible.
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Dzintars > aigarsaboltins 15.09.2014. 14.40
High not in terms of euros but in terms of what you get for those euros, in other words low productivity, is what I mean.
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aigarsaboltins > aigarsaboltins 15.09.2014. 15.12
Low productivity is present in manufacturing but we have several areas as IT services, translation services, PR, etc. without low productivity but low rates meaning that high labour costs not always are related to low productivity and maybe are not the only cause of our financial devastation. And, of course, the existence of 300 000 hostile aliens do not facilitate foreign investions flow.
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ramona_mieze > aigarsaboltins 15.09.2014. 19.24
What evidence do you have for this? Why do you think that wage to productivity ratio is too high in Latvia?
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Anonīms > aigarsaboltins 16.09.2014. 15.23
You need to understand that there is a huge correlation of wage between all sectors. Furthermore, even if you are highly productive and you are working only in Latvian market, you cannot receive a high wage, because your customers cannot pay that many EUROs. So if you want to receive a high wage, we need to develop many industries, especially exporting sector, because without money inflows, we will not get richer. And currently our overall low productivity keeps our wages small.
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JIC biznesa inkubatora Jēkabpils nodaļa 15.09.2014. 12.55
Well, I agree about the need to make Latvia’s legal system more effective and less corrupt. Who wouldn’t – except insolvency practitioners?
But what about investment rate realtive to GDP- what level would be sutainable (optimal) for country like Latvia? It’s not mentioned in article and it would give a clearer perspective to current situation.
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+1
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Atbildēt
@Dzintars > JIC biznesa inkubatora Jēkabpils nodaļa 15.09.2014. 14.44
One reason that it is not mentioned is that there is no easy answer to what it should be…. :-(
Latvia’s number isn’t awfully low by EU standards but we should be believe that a lot of Europe finds investment depressed at the moment due to the general recession/slowdown/bad times.
Latvia should need more investment so as to grow AND catch up. Needless to say, Estonia is ahead (some 25% where Latvia’s number is 21%).
But the main point was to say: Try at least to make it easy and conveninet to invest here.
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