Government influence is bad business

RIGA - The biggest problem in the Latvian economy, according to President Valdis Zatlers, is a lack of internal competition, reports Nozare.lv. In speaking with the magazine Kapitals, the president said that “The last 10-15 years have shown that internal protectionism - through lobbying, through contacts, through political influence - cripples honest competition, and this has done our economy no good at all. When we hear about the necessity of supporting Latvian companies in external markets, I would say that the best support we can provide is to create the kind of internal market conditions that harden companies sufficiently to venture into foreign markets. This is the first task which the government should take on.”

The second most important task is to improve the qualifications and skills of the workforce. “We are pleased that the unemployment rate is falling; however, I am concerned that at some point this fall is going to stop. In order to increase efficiency, companies seek out potential employees with the relevant skills and working ethics. Those who lack these qualities could be faced with a long wait outside of the job market. Moreover, in the future local workers will also be in competition with labor from abroad,” said Zatlers.

The president notes that corruption and the attitude of state institutions towards companies and citizens are two factors which cripple competition. “We need to change our attitude towards those who take responsibility for their actions. If a document contains one or two signatures, then it is clear that these people are responsible for their decision. If a document has 12 signatures, then it is clear that no-one will take responsibility. In this way, the level of responsibility is reduced, and an environment of impunity is created, as no-one is fully responsible for their decisions. If we forget about the duty to be responsible for our actions, and also for the fact that decisions need to be taken in general, then this, together with corruption and a lack of working ethics, leads to a situation such as the one we found ourselves in a few years ago. Unfounded euphoria, unfounded hopes and demands, leading to great disappointment,” warned the president.