RIGA - Latvian leaders, faced with a worsening labor market crunch, have made an increasing number of calls for its citizens who have left for work abroad to return to Latvia and build their careers at home.
Most recently, Prime Minister Aigars Kalvitis appealed to Latvians working in EU countries such as Ireland and England to come home and earn a living in Latvia.
It is unclear whether the calls have fallen on deaf ears, but Integration Minister Oskars Kastens has said that as many as one-third of Latvians working abroad might return home.
"At present it is hard to say how many people might return as it depends on many factors," he explained in an interview with the Dienas Bizness daily.
"First of all, it depends on the economic situation in the country. The experience of other European countries shows that about one-third of emigrants return, and I believe that is the number we can count on. If 60,000 people have gone abroad, then we might focus on 20,000 Latvians coming back 's that is our objective," he said.
At the same time a report released earlier this year by the Welfare Ministry showed that as many as 80,000 people might emigrate from Latvia by 2010.
The ministry said in March that about 50,000 people have emigrated from Latvia after the country's accession to the European Union, though other state institutions put the figure as high as 100,000.
According to the Welfare Ministry, more than 23,000 Latvians have moved to the U.K., and more than 18,000 to Ireland. Other popular destinations are Norway, Denmark, Italy, Belgium and Germany.
Kastens, a member of the LPP/LC party, said that Latvia would have to import foreign workforce if the flow of emigrants is not stopped and mobility of workforce within Latvia is increased.
Still, the government has failed to offer any incentives for those thinking of returning home. Kastens acknowledged that one of the reasons Latvians work abroad is low wages at home and that this issue could be solved by raising the standard of living in the regions.
"Of course, regional reform is not a magic wand to solve many problems. But if we manage to complete the reform and arrange infrastructure to increase people's mobility throughout the country, in my opinion, it will improve the situation," said Kastens.
In August the government took up in earnest the issue of regional reform to make the work of municipal governments more effective. However, tax cuts, for the time being at least, do not appear to be an instrument at the government's disposal given the current economic situation.
In the words of Kastens, "At present, when the country is moving toward a zero-deficit budget, it would be wrong to speak against the course of the Finance Ministry [reducing inflation], but it does not mean we are not going to support the issue [of lowering taxes] in the future," he said.
Kastens said that it wouldn't hurt Latvia to study Ireland's experience and introduce "tax vacations" for new companies.
The minister also said that it is important to keep in touch with the Latvians who are working abroad and regularly inform them about job opportunities in Latvia.
