Baltic companies prepare for stiff competition

RIGA - During the last 10 years the Baltic Sea region has developed into an area that is interesting in many aspects. One of these aspects is the help Baltic businesses are getting in preparing for European Union membership.

The extensive privatization of trade and industry has given Estonia, Latvia and Lithuania a great number of small companies - companies which now have to adjust their businesses to a future situation where they will face competition on the EU market level.

Baltic Sea Partenariat 2001 is a project aiming to help prepare Baltic businesses for this future.

ÒThe Swedish government is behind this project and is contributing with a lot of money - almost 1 million dollars,Ó Ulf Lewin, spokesman for the Swedish Ministry of Foreign Affairs, said.

The project will last for several years and the preparation of companies in the Baltics is only phase one.

ÒItÕs very easy to work with the Baltic states,Ó said Baltic Sea Partenariat 2001 general project manager Bengt Anckarman. ÒThere are, of course, differences in cultures, but there are many similarities too.Ó

The second phase two will culminate in a two-day conference in Riga in May this year and in the third and final phase, the project will aim at follow-ups and continued long-term cooperation between companies in the Baltic Sea region.

ÒWe hope this project will contribute to develop the economy in these countries, and also help strengthen peace and democracy,Ó said Lars Wallin, Swedish county council commissioner.

There are several different interest organizations in Sweden focusing on doing business with the Baltic states. These organizations are on many different levels such as municipality, county and also governmental levels.

ÒThere is a big interest from industry companies in OstergotlandÕs county,Ó Wallin said. ÒA few year ago people only talked about Poland, but now the Baltics are a very hot topic.Ó

Every year, EU arranges two so-called Europarenariats. The Baltic Sea Partenariat 2001 differs from a traditional Europartenariat in two major ways: it is arranged by three non-EU countries - Estonia, Latvia and Lithuania, and the companies from the host countries are supported during the preparation, realization and follow-up of the project, a period of several years.

ÒThere should be no reason why Sweden cannot cooperate just as much with the Baltic states as it does with the Nordic countries,Ó Wallin said.

International marketing manager for Irish enterprises Charles J. Kelly was also at the conference. His mission was to studdy and learn from the Baltic economies, but also to look for people to come and work in Ireland or for compaines here which could team up with Irish companies.

ÒOver the coming five years, Ireland will need about 200,000 people to come and work there,Ó Kelly said.

Ireland is an EU veteran. The country joined back in 1972 and over the first 15 years of membership, Ireland was in an economical limbo where growth was scarce. For quite some time Ireland owed 125 percent of its GDP.

Kelly said the Irish, however, managed to pull it together, because they realized non of the other EU member states would do it for them.

ÒEducation is the key to success,Ó Kelly said. ÒIf Ireland can do it, anybody can do it,Ó he said and smiled.