Investment potential of Latvian diaspora is around EUR 1 billion per year - study

RIGA - The investment potential of the Latvian diaspora is estimated at approximately EUR 1 billion per year; however, attracting capital is hindered by fragmented information, a lack of time, and mistrust of government institutions, according to a study presented Thursday by University of Latvia researcher Liga Braslina on developing diaspora capital for Latvia’s growth, titled The Hidden Engine: Unlocking Diaspora Capital for Latvia’s Growth.

Braslina presented the study’s findings at a seminar dedicated to the 70th anniversary of the World Federation of Free Latvians (PBLA). The researcher noted that approximately 400,000 members of the Latvian diaspora live abroad and that the diaspora should be viewed not only as a demographic group but also as a strategic asset for Latvia’s economic growth.

The study concluded that interest in investing in Latvia is high among the diaspora but is hindered by a lack of time, complex investment management, and a lack of trust in government institutions. Other barriers to investment mentioned include fragmented information, complex processes, and an insufficient supply of investment-ready projects. Braslina noted that diaspora representatives are motivated to invest by the opportunity to earn a financial return, trust in specific projects, and a desire to contribute to the common good.

The study proposes, as a possible solution, a professionally managed, decentralized, and diaspora-led investment fund that would operate on the basis of trust rather than being centrally managed at the national level.

At a seminar on Thursday dedicated to the 70th anniversary of PBLA, the role of the diaspora in Latvia’s economic development, attracting investment, and strengthening national security was highlighted as one of the key issues for future cooperation.

Prime Minister Andris Kulbergs (United List), addressing the event’s participants, emphasized the contribution of Latvians living abroad to sustaining the idea of Latvian independence at a time when its realization seemed impossible to many. He said that Latvians in exile had been Latvia’s voice in the world and had kept the name of Latvia alive at a time when others were trying to erase it. Kulbergs also reminded the contribution of Latvians living abroad to the organization of the Baltic Way.

The Prime Minister noted that while the world has changed, the challenges have not diminished. He emphasized that while gaining freedom was important, it is even more important to preserve it by defending the country on a daily basis. Kulbergs also highlighted the importance of the economy, including the ability of Latvians living abroad to attract investment to Latvia.

Meanwhile, Minister of Education and Science Ilze Indriksone (National Alliance) emphasized that cooperation and jointly created opportunities allow Latvia to develop on the global stage. She noted that there is no longer a division between "you there and us here", but rather a shared "us in the world". In his address, Minister of Culture Nauris Puntulis (National Alliance) emphasized that the task of promoting Latvian identity has no expiration date and that Latvian identity is rooted in culture and language.

Zanda Kalniņa-Lukasevica (New Unity), Deputy Speaker of the Saeima, also thanked PBLA representatives for strengthening security and the economy through their daily work.