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BACKGROUND NOTES: LATVIA PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS U.S. DEPARTMENT OF STATE Official Name: Republic of Latvia PROFILE Geography Area: 64,100 sq. km. (25,640 sq. miles); about the size of West Virginia. Cities: Capital--Riga (1989 pop. 910,500). Other cities--Daugavpils (125,000); Liepaja (114,500); Jelgava (74,100); Jurmala (60,600); Ventspils (50,600); Rezekne (42,500). Terrain: Fertile low-lying plains predominate in central Latvia, highlands in Vidzeme and Latgale to the east, and hills in the western Kurzeme region. Climate: Temperate, with four seasons of almost equal length. People Nationality: Noun and adjective--Latvian(s). Population: 2.6 million. Growth rate--0.6%. Birth rate--14/1,000. Ethnic groups: Latvian 52%, Russians 34%, Belorussians 4.5%, Ukrainians 3%, Poles 2%. Religions: Lutheran, Russian Orthodox, Roman Catholic. Official language: Latvian (official). Russian also is widely spoken. Education: Years compulsory--9. Literacy--99%. Health: Infant mortality rate--16/1,000. Life expectancy--65 years male, 75 female. Work Force (1.4 million): Industry--30%. Agriculture/forestry--16%. Trade/Dining--9%. Transport/Communication--7%. Construction--10%. Financial services/Other--27%. Government Type: Parliamentary democracy. Constitution: The 1922 constitution, the 1990 declaration of renewal of independence, and the 1991 "Basic Law for the Period of Transition" serve until a new constitution is ratified. Branches: Executive--chairman of parliament (head of state), elected by parliament every five years; prime minister (head of government). Legislative--Saeima (100-member body). Judicial--Supreme Court. Administrative regions: 26 rural districts and 6 districts in Riga. Principal political factions: Union "Latvia's Way," Farmers Union, National Conservative Party, "Harmony for Latvia" Coalition, "Equal Rights" Faction, Christian Democrats, "Fatherland and Freedom," Democratic Center Party. Suffrage: Universal at 18. Flag: Two horizontal, maroon bands of equal width divided by a white stripe. Economy GDP: $2.6 billion. Growth rate: -33%. Natural resources: Peat, limestone, dolomite, gypsum, timber. Agriculture/forestry (24% of GDP): Products--cattle, dairy foods, cereals, potatoes. Manufacturing/electricity (45% of GDP): Light electrical equipment and fittings, textiles and footwear, technological instruments, construction materials, processed foods. Trade: Exports--$803 million: transshipment of crude oil; metals, timber and paper products; furniture; dairy and fish products; light industrial products and machinery; chemical products; textiles and clothing. Major markets--Russia 43%; Netherlands 12%; Germany 10%; Sweden 10%; Ukraine 9%; Belarus 7%. Imports--$1.1 billion: fuel, food, raw materials, machinery. Partners--Russia 29%; Germany 10%; Lithuania 10%; Sweden 5%; Belarus 4%. Exchange rate (July 1994): 0.57 Lats=U.S. $1. PEOPLE Latvians occasionally refer to themselves by the ancient name of "Latviji," which may have originated from a "Latve" river that presumably flowed through what is now eastern Latvia. A small Finno-Ugric tribe known as the Livs settled among the Latvians and modulated the name to "Latvis," meaning "forest-clearers," which is how medieval German settlers also referred to these peoples. The German colonizers changed this name to "Lette" and called their initially small colony "Livland." The Latin form, "Livonia," gradually referred to the whole of modern-day Latvia as well as southern Estonia, which had fallen under German dominion. Latvians and Lithuanians are the only surviving members of the Baltic peoples and languages of the Indo-European family. Latvians consider themselves to be Nordics, evidenced through the strong cultural and religious influences gained over centuries during Germanic and Scandinavian colonization and settlement. Eastern Latvia (Latgale), however, retains strong Polish and Russian cultural and linguistic influences. This highly literate society places strong emphasis upon education, which is free and compulsory until age 16. Most Latvians belong to the Evangelical Lutheran Church. A sizeable minority are Russian Orthodox. Eastern Latvia is predominantly Roman Catholic. Historically, Latvia always has had fairly large Russian, Jewish, German, and Polish minorities, but postwar emigration, deportations, and Soviet "Russification" policies from 1939-89 reduced the percentage of ethnic Latvians in Latvia from 73% to 53%. Latvia's strict language law and draft citizenship law have caused many non-citizen resident Russians concern over their ability to assimilate, despite Latvian legal guarantees of universal human and civil rights regardless of citizenship. Written with the Latin alphabet, Latvian is the language of the Latvian people and the official language of the country. It is an inflective language with several analytical forms, three dialects, and German syntactical influence. The oldest known examples of written Latvian are from a 1585 catechism. The Soviets imposed the official use of Russian, so most Latvians speak Russian as a second or first language, while the resident Slavic populace generally speaks Russian as a first language. HISTORY From about 9000 B.C., ancient peoples of unknown origin inhabited Latvia. By 3000 B.C., the ancestors of the Finns had settled the region. A millennium later, pre-Baltic tribes had arrived and, within time, evolved into the Baltic Couranian, Latgallian, Selonian, and Semigallian groups. These tribes eventually formed local governments independent of the Finno-Ugric Livian tribe. In the 1300s, they were conquered by the Germans, who renamed the territory Livonia. German sailors shipwrecked on the Daugava River in 1054 had inhabited the area, which led to increasing German influence. Founded by the Germanic Bishop Alberth of Livonia in 1201, the city of Riga joined the Hanseatic League in 1285 and shared important cultural and economic ties with the rest of Europe. However, the new German nobility enserfed the peasantry and accorded non-Germanic peoples only limited trading and property rights. Subsequent wars and treaties ensured Livonia's partition and colonization for centuries. The commonwealth's successes during the Livonian Wars (1558-1583) united the Latvian-populated duchies of Pardaugava, Kurzeme, and Zemgale, but the Polish-Swedish War (1600-1629) granted Sweden acquisition of Riga and the Duchy of Pardaugava, minus Latgale, leaving Latvia again split ethnically. In turn, victory over Sweden in the Great Northern War (1700-1721) gave Russia control over the Latvian territories. From 1804 onward, a series of local decrees gradually weakened the grip of German nobility over peasant society. In 1849 a law granted a legal basis for the creation of peasant-owned farms. Until the 1860s, there still was little sense of a Latvian national identity, as both serfdom and institutional controls to migration and social mobility limited the boundaries of the peasants' intellectual and social geography. The large baronic estates caused a lack of available farmland for an increasing population, creating a large landless, urban class comprising about 60% of the population. Also, in the face of stricter Russification policies, the Baltic German clergy and literati began to take an interest in the distinctive language and culture of the Latvian peasantry. These patrons (with such Lettish names as Alunans, Barons, Krastins, Kronvalds, Tomsons, and Valdemars) soon formed the Young Latvian Movement, whose aim was to promote the indigenous language and to publicize and counteract the socioeconomic oppression of Latvians. By 1901 "Jauna Strava" had evolved into the Latvian Social Democratic Party. Following the lead of the Austrian Marxists, the LSDP advocated the transformation of the Russian empire into a federation of democratic states (to include Latvia) and the adoption of cultural autonomy policy for extra-territorial ethnic communities. In 1903, the LSDP split into the more radically internationalist Latvian Social Democratic Worker's Party and the more influential Latvian Social Democratic Union (LSDU), which continued to champion national interests and Latvia's national self-determination, especially during the failed 1905 revolution in Russia. The onset of World War I brought German occupation of the western coastal province of Kurzeme, and Latvians countered the invasion by establishing several rifle regiments commanded by czarist generals. As a defensive measure, Russia dismantled over 500 local Latvian industries, along with technological equipment, and moved them to central Russia. The sagging military campaign generally increased Latvian and LSDU support for the Bolsheviks' successful October Revolution in 1917, in hopes of a "free Latvia within free Russia." These circumstances led to the formation of the Soviet "Iskolat Republic" in the unoccupied section of Latvia. In opposition to this government and to the landed barons' pro-German sympathies stood, primarily, the Latvian Provisional National Council and the Riga Democratic Bloc. These and other political parties formed the Latvian People's Council which, on November 18, 1918, declared Latvia's independence and formed an army. The new Latvian army faced rogue elements of the retreating German army and engaged in civil war against the Soviet Red Army, composed largely of former Latvian Riflemen. Soviet power resumed in Latvia one month later, on December 17, by order of the Latvian Soviet Socialist Republic, which forcefully collectivized all land and nationalized all industries and property. By May 22, 1919, the resurgent German army occupied and devastated Riga for several days. The Latvian army managed to win a decisive battle over the combined German-Red Army forces and, thereafter, consolidated its success on the eastern Latgale front. These developments led to the dissolution of the Soviet Latvian Government on January 13, 1920, and to a peace treaty between Latvia and Soviet Russia on August 11 later that year. By September 22, 1921, Latvia was admitted to the League of Nations. Having obtained independent statehood in which Latvians were an absolute majority, the government headed by Prime Minister Ulmanis declared a democratic, parliamentary republic. It recognized Latvian as the official language, granted cultural autonomy to the country's sizeable minorities, and introduced an electoral system into the Latvian constitution, which was adopted in 1922. The decade witnessed sweeping economic reform, as war had devastated Latvian agriculture and most Russian factories had been evacuated to Russia. Economic depression heightened political turmoil, and on May 15, 1934, Prime Minister Ulmanis dismissed the parliament, banned outspoken and left-wing political parties, and tightened authoritarian state control over Latvian social life and the economy. The effects of the infamous Molotov-Ribbentrop agreement steadily forced Latvia under Soviet influence until August 5, 1940, when the Soviet Union finally annexed Latvia. On June 14 of the following year, 15,000 Latvian citizens were forcibly deported and a large number of army officers shot. The subsequent German occupation saw the mobilization of many Latvians into German Waffen SS legions, while some Latvians joined the Red Army and formed resistance groups; others fled to the West and East. By 1945, Latvia' s population had dropped by one-third. After the war, the U.S.S.R. subjected the Latvian republic to a scale of social and economic reorganization which rapidly transformed the rural economy to heavy industry, the Latvian population into a more multiethnic structure, and the predominantly peasant class into a fully urbanized industrial worker class. As part of the goal to more fully integrate Latvia into the Soviet Union, on March 25, 1949, Stalin deported another 42,000 Latvians and continued to promote the policy of encouraging Soviet immigration to Latvia. The brief "Krushchev thaw" of the 1950s ended in 1959, when the Soviets dismissed Latvian Communist Party and government leaders on charges of "bourgeois nationalism" and replaced them with more aggressive hardliners, mostly from Russia. Perestroika enabled Latvians to pursue a bolder nationalistic program, particularly through such general issues as environmental protection. In July 1989, the Latvian Supreme Soviet adopted a "Declaration of Sovereignty" and amended the constitution to assert the supremacy of its laws over those of the U.S.S.R. Pro-independence Latvian Popular Front candidates gained a two-thirds majority in the Supreme Council in the March 1990 democratic elections. On May 4, the Council declared its intention to restore full Latvian independence after a "transitional" period; three days later, Ivars Godmanis was chosen Council of Ministers Chairman, or Prime Minister. In January 1991, Soviet political and military forces tried unsuccessfully to overthrow the legitimate Latvian authorities by occupying the central publishing house in Riga and establishing a "Committee of National Salvation" to usurp governmental functions. Three-fourths of all Latvian residents confirmed support for independence on March 3 in a nonbinding "advisory" referendum. A large number of ethnic Russians also voted for the proposition. Latvia claimed de facto independence on August 21, 1991, in the aftermath of the failed Soviet coup attempt. International recognition, including by the U.S.S.R., followed. The U.S., which had never recognized Latvia's forcible annexation by the U.S.S.R., resumed full diplomatic relations with Latvia on September 2. GOVERNMENT AND POLITICAL CONDITIONS Latvia emphatically states that the Russian troop withdrawal issue remains its highest priority and that its resolution will exponentially speed economic and political reform. Estimated Russian troop strengths now are less than 7,000. In October 1991, the Latvian Supreme Council began deliberations on a citizenship law, which remains to be finalized. Under the accepted guidelines, those who were Latvian citizens in 1940 and their descendants can claim citizenship. Almost half of Latvia's population is ethnically non-Latvian, yet perhaps more than 85% of its ethnic Slavs can pass the residency requirement. The guidelines set naturalization criteria for conversational knowledge of Latvian, a loyalty oath, renunciation of former citizenship, a 16-year residency requirement, and a knowledge of the Latvian constitution. Dual citizenship is allowed for those who were forced to leave Latvia during the Soviet occupation and adopted another citizenship. In addition, the resolution calls for excluding criminals, drug addicts, members of the Soviet army, and certain other groups from becoming citizens. On March 19, 1991, the Supreme Council passed a law explicitly guaranteeing "equal rights to all nationalities and ethnic groups" which "guarantees to all permanent residents in the Republic regardless of their nationality, equal rights to work and wages." The law also prohibits "any activity directed toward nationality discrimination or the promotion of national superiority or hatred." Significant portions of the 1922 constitution were temporarily reinstituted in autumn 1991. The government took a census in spring 1993 to determine eligibility for citizenship. Parliamentary gridlock in the former Supreme Council had halted passage of any substantive political or economic legislation. The Saeima, a unicameral legislative body, is the highest organ of state authority. It initiates and approves legislation sponsored by the prime minister. The prime minister has full responsibility and control over the cabinet, and the president holds a primarily ceremonial role as head of state. In the June 5-6, 1993, elections, in which over 90% of the electorate participated, 8 of Latvia's 23 registered political parties passed the 4% threshold to enter parliament. The Popular Front, which spearheaded the drive for independence two years ago with a 75% majority in the last parliamentary elections in 1990, did not qualify for representation. The centrist "Latvia's Way" party received a 33% plurality of votes and joined with the Farmer's Union to head a center/right-wing coalition government. Led by the opposition National Conservative Party, right-wing nationalists won a majority of the seats nationwide and also captured the Riga mayoralty in the May 29, 1994, municipal elections. Correctly anticipating that it would do poorly, the governing party, "Latvia's Way," spent few resources to contest the elections. Its coalition partner, "Farmers' Union," did well in the countryside while former Foreign Minister Jurkans' left-leaning "Concord for Latvia" took eastern Latvia. European observers pronounced the elections free and fair, and turnout averaged just under 60%. The popular and effective Foreign Minister, Georgs Andrejevs, resigned in early June due to poor health and because of accusations that he and four other members of parliament had cooperated with the Soviet KGB prior to Latvia's independence. On July 13, 1994, Prime Minister Birkaus and his cabinet resigned, ostensibly over the withdrawal of the Farmer's Union from the coalition because of a dispute on agricultural tariffs and other policies. While it appears certain the President will not call new elections, it is unclear whether the current government simply will remain in place with a few ministerial replacements, or whether the National Conservative Party can muster the support to form a new government. National Security Latvia's defense concept is based upon the Swedish-Finnish rapid response model force. The armed forces consist of border guards, mobile infantry, special units, and an air force and navy whose status has not fully been determined financially or administratively. The zemessardze, or home guard, is an autonomous, volunteer paramilitary organization which also performs traditional national guard duties and assists the border guards. Special independent interior ministry, intelligence, and civil defense units also exist. Active-duty defense forces will stand at 9,000. There is a mandatory one-year draft period of active duty, and alternative conscription for conscientious objectors is available. Principal Government Officials President--Guntis Ulmanis Prime Minister--Valdis Birkavs Minister of Foreign Affairs--vacant Latvia maintains an embassy in the United States at 4325 17th Street, Washington DC 20011 (tel: 202-726-8213). ECONOMY For centuries under Hanseatic and German influence and then during its interwar independence, Latvia used its geographic location as an important East-West commercial and trading center. Industry served local markets, while timber, paper, and agricultural products comprised Latvia's main exports. Conversely, the years of Russian and Soviet occupation tended to integrate Latvia's economy to serve those empires' large internal industrial needs. Today, Latvia's economy still remains heavily dependent upon the markets of the states of the former Soviet Union. Other than in peat, timber, and gravel, Latvia is deficient in most natural resources and relies upon trade with its former Soviet neighbors to provide 91% of its energy needs. Freed prices, including once-rationed food items and fuel, now are reaching market levels, and most small businesses and farms have been formally privatized or are operating as such. Industrial production dropped 35% in 1992, and the urban, resident non-citizen Russian work force--which dominates Latvia's highly diversified but inefficient industrial sector--may face significant unemployment and economic displacement once Latvia undertakes deeper necessary reforms. As a result, Latvians' standard of living and purchasing power has fallen catastrophically. As a new member, Latvia received critical loans from the IMF and World Bank, as well as from G-24 nations, in order to stave off critical energy, medicinal, and feed grain shortages and financial shortfalls caused by the disruption of traditional Soviet markets. The monetary situation has stabilized, with monthly inflation less than 2% in accord with IMF plans and hard currency reserves in excess of $320 million. Last year, Latvia began issuing its own freely convertible currency, the lats, which replaced the interim currency, the Latvian ruble. In 1993, Latvia exported to the U.S. $23 million worth of goods and imported $90 million of goods and services. American firms registered $35 million out of a total $110 million in foreign investment. The U.S. is the largest Western investor in Latvia. Private businesses are booming, with over $75 million in foreign investment last year, and the government has recreated over 50,000 private farms. With 48% of the populace, ethnic Slavs control about 80% of the economy. FOREIGN RELATIONS Latvia became a member of the United Nations on September 18, 1991, and is a signatory to a number of UN and other international organizations and relationships. It also is a member of the Conference on Security and Cooperation in Europe and of the North Atlantic Cooperation Council. Latvia is unaffiliated directly with any political alliance but welcomes further cooperation and integration with NATO, the European Union, and other Western organizations. It also seeks more active participation in United Nations peace-keeping efforts worldwide. Latvia maintains embassies in the United States, Belarus, Belgium, Denmark, Estonia, Finland, France, Germany, Lithuania, Sweden, the United Kingdom, and Russia. It also operates missions to the United Nations in New York City and a consulate general in Australia. Honorary consuls are located in Australia, Austria, Belgium, Canada, Greece, India, Israel, Italy, South Korea, Moldova, Norway, Switzerland, Taiwan, and Venezuela. Relations with Russia are improving, primarily because Latvia and Russia signed a troop withdrawal agreement on April 30 calling for the withdrawal of Russia's remaining 4,000 troops from Latvia no later than August 31, 1994. In July, Latvia also passed a naturalization law that could enable many of its resident non-citizens to apply for citizenship within 10 years. Latvia has agreed that Russia may continue to operate the Skrunda radar facility under CSCE supervision strictly for a four-year period. The United States established diplomatic relations with Latvia on July 28, 1922. The U.S. legation in Riga officially was established November 13, 1922, and served as the headquarters for U.S. representation in the Baltics during the interwar era. The Soviet invasion forced the closure of the legation on September 5, 1940, but Latvian representation in the United States has continued uninterrupted for over 70 years. The U.S. never recognized the forcible incorporation of Latvia into the U.S.S.R. and views the present Government of Latvia as a legal continuation of the interwar republic. Latvia has enjoyed most-favored-nation (MFN) treatment with the U.S. since December 1991. It annually receives approximately $6 million in humanitarian and medical aid, technical assistance, and professional training, along with having received about $38 million in feed grain credits from the U.S. since 1991. Principal U.S. Embassy Officials Ambassador--Ints Silins Economic Officer--Constance Phlipot Political Officer--Douglas Wake Administrative Officer--Susan Pazina Consular Officer--Ellen Conway AID Director--Baudouin de Marcken Public Affairs Officer--Philip Ives The U.S. embassy in Latvia is located at Raina Boulevard 7, Riga (tel. 371-2-213-962). TRAVEL NOTES Customs: Latvian tourist visas may be obtained at certain road border-crossings and at Riga Airport. However, the U.S. embassy strongly recommends that all visitors obtain visas from the Latvian embassy in Washington, D.C. (or in major Western European capitals) before departure. The embassy charges a $10 mail processing fee for visas. Visitors are encouraged to register at the U.S. Embassy. Lithuanian visas are also valid for entry into Latvia. Unlimited hard currency, 1 liter of alcohol, 200 cigarettes, and foodstuffs valued at less than one month's minimum wage (3,000 rubles) may be imported; $125 worth of goods not regulated by Latvian or international law requiring special permission may be imported. Export regulations cover hard currency (in unrestricted amounts) and foodstuffs worth less than 10 monthly minimum wages). Articles purchased in Latvia for hard currency must be accompanied by a receipt. Climate and clothing: Latvia's climate enjoys seasons of almost equal length. Riga and the coast are temperate, with pleasant, cool summers and damp winters; eastern Latvia is continental, with warmer summers and harsher winters. Health: Medical care does not meet Western standards and faces severe shortages of basic medical supplies, including disposable needles, anesthetics, and antibiotics. Recent disruption of energy supplies has decreased the availability of heat and hot water. Raw fruits and vegetables are safe to eat, but avoid drinking unpasteurized milk and tap water. Transportation: Several international airlines, including SAS and Lufthansa, provide service between European cities and Riga airport. Train service is available via Moscow, St. Petersburg, and Warsaw/Frankfurt, and a bus line connects the Baltic capitals with Warsaw. Bus and taxi services within the capital and its environs are good. Taxis are inexpensive and available at stands, or may be ordered by phone. Rental cars are available. Gasoline prices are reaching market rates. Telecommunications: Improved telephone and telegraph services are readily available at standard international rates. Riga is 7 hours ahead of eastern standard time. Further Information These titles are provided as a general indication of material published on this country. The Department of State does not endorse unofficial publications. Berkis, Alexander V. The History of the Duchy of Courland, 1561-1795. Baltimore: Paul M. Harrod, 1969. Bilmanis, Alfreds. A History of Latvia. Princeton: Princeton University Press, 1951; reprinted Westport, CT: Greenwood Press, 1970. Ekmanis, Rolf. Latvian Literature Under the Soviets, 1940-1975. Belmont, MA: Nordland Publishing Company, 1978. Jegers, Benjamins. Bibliography of Latvian Publications Published Outside of Latvia, 1940-1960, 2 volumes. Stockholm: Daugava, 1968/1972. Rodgers, Mary M., , and Tom Streissguth, eds. Latvia: Then and Now. Minneapolis: Lerner Publications Company, 1992. Rutkis, Janis, ed. Latvia: Country and People. Stockholm: Latvian National Foundation, 1967. Urdzins, Andrejs, and Andris Vilks, eds. The Baltic States: A Reference Book. Riga: Encyclopedia Publishers, 1991. Williams, Roger, ed. Baltic States: Insight Guides. Boston: Houghton-Mifflin Company, 1993. For information on economic trends, commercial development, production, trade regulations, and tariff rates, contact the International Trade Administration, U.S. Department of Commerce, Washington, DC 20230 at (202)482-4915, or any Commerce Department district office. For information on business opportunities, call the Commerce Department's East European Business Information Center at (202) 482-2645. Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC August 1994 -- Managing Editor: Peter A. Knecht -- Editor: Peter Freeman Department of State Publication 10195 -- Background Notes Series For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.