Monday, February 7, 2011

Silver City Com Ottawa

Latvia and Lithuania, the backyard of the European Union

Two retired fighting in a demonstration in Riga

At the time of the Soviet Union the Baltic republics, Latvia, Lithuania and Estonia to our citizens had the appeal of being "as in the overseas. " Indeed, the living standards of the then Soviet Baltic republics differed greatly from deep Russia. The products of the Baltic republics (whether trains, canned fish or balm of Riga) is considered an example of quality throughout the Union.

At the same time, the majority of Latvians, Lithuanians and Estonians never made any effort to mix in the "new historical community" with the Soviet unique people, and expressed - almost always at home - their quest for independence.

Perestroika gave a strong impetus to strengthening of centrifugal tendencies in these republics. In the spring of 1990 the Supreme Soviet of the Soviet Republic of Lithuania was the first to proclaim the independence of Lithuania. In the territory of the republic the constitution of the USSR ceased to be valid and entered into force the former Lithuanian constitution of 1938. Subsequently, the Supreme Soviet of Latvia announced the reestablishment of independence ...

The Union responded to this with the introduction of an economic blockade on the relationship with Lithuania and Latvia. The tension continued to increase and reached its peak in early 1991. The Lithuanian government announced a sharp price rise retail. In response, the trade unions organized a mass meeting in Vilnius under the slogan "A under the parliament! Long live the Union of Soviet Socialist Republics! ". The night of 13 January two Soviet armored columns appeared in the center of Vilnius. The tragic events took place in front of the central television building. Conflicts between security forces and supporters of the central television caused 15 deaths and 600 injuries. So today is not known who was the first to open fire that night.

Tension moved to neighboring Latvia. On January 20, 1991 riot police Riga (OMON), directly under the Ministry of Internal Affairs of the USSR, began the disarmament of the police department of Riga. But they fired from the building of the Ministry of Interior of Latvia, after which it was decided to attack the building. There were victims on both sides and including some passers-by.

The Baltic republics finally gained independence in September 1991 after the failure of the Central Committee of the State of Emergency, the board formed by coup plotters who tried unsuccessfully to overthrow Soviet President Mikhail Gorbachev.

Latvia immediately began sweeping economic reforms, often ambiguous. Cleared most large companies, including major factories VEF (State Factory Riga electrical equipment), RAF (Riga bus factory) and others, where they worked mainly Russian-speaking. The considered unnecessary for the new Latvian economy. In addition, because of the loss of ex-Soviet market, has plummeted fish industry. The main support for the creation of an independent economy came as the banking industry and transit services. For some years the transit of Russian goods through the ports of Latvia was to 25 percent of the GDP of the country ...

seemed that this policy was beginning to get off. By the mid-90's GDP in Latvia became (in comparative prices) at the level of 1990 and continued to grow. The country became a tributary of Western investment. In 2008 the average salary of 479 Latvians was latos, or 8179 per year. Latvia pride began to be called the "Baltic Tiger." But the flourishing economic short-lived. Russia began to reduce sharply the transit of cargoes (mainly oil and oil products) through Latvia, redirecting the flow of exports to the new ports in the Leningrad region.

The global economic crisis had disastrous consequences for the Latvian economy. As a result of 20 years of independence of Latvia's GDP in early 2011 was only 90% of 1990 level. The salary in 2010 fell by 11% compared to 2008. The government was forced to a drastic reduction of public spending and a tax increase, which led to an increasing cost of almost all products. The more significant the price of gasoline. Since January 2011 a liter of 95 octane gasoline has reached to 1.2 euros.

Latvian Prime Minister speaks of the need for subsequent reduction of budget expenditure. "We had a discussion with international creditors on both the quantity as the plan of action." - Said Prime Minister Vladis Dombrovskis. But volume is 71 million euros complementary. The decrease relates mainly to the social sector. It aims to reduce maintenance costs of hospitals and primary care centers, and make their services are basically payment.

The issue of unemployment in Latvia is extremely delicate. As reported by the Latvian state agency occupancy in December of last year, unemployment reached 14.3%. The count included 162,463 people. Unemployment has led to an exodus from the country of the economically active population. Only now living permanently in Ireland 45 000 Latvian citizens. In general, since independence the country's population has decreased by 400 thousand.

Meanwhile, the economic independence of Lithuania has not withstood the global crisis. The influential edition "The Economist" notes that rates of GDP in Lithuania in 2010 suffered a fall of 3.5% - this is one of the highest rates of not only Europe but the world. And while the Lithuanian government said that the country's economy begins to emerge from the crisis, the facts show otherwise. Unemployment at the end of 2010 exceeded 14%. The salary has decreased compared to previous years an average of 3.2%. The national debt grows rapidly. In 2008 was 17.37 billion litas (about U.S. $ 7 billion), in 2010 almost doubled in 2011, according to forecasts, is already 16.6 billion dollars.

Vilnius intended to annex to the euro zone in 2011, now because of the poor macroeconomic situation of the date of annexation has been implemented until 2014.

In an attempt to distraction Lithuanian public opinion on the growing problems in 2010 the government announced several times the possibility to demand compensation from Russia for the events in January 1991.

is unlikely that the former "Baltic tiger" has a permanent conflict with financial aid from the EU in 2011. The greatest concern in Brussels today is the financial problems of southern Europe and Ireland.

Thus, it seems increasingly necessary to a "shifting" economic eastward to the former Soviet republics. Ivan Saveliev



Taken RIA Novosti

Related article on this blog: "Latvians: you did not want capitalism?"

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